Canadian Retail Sees Strong Gains in February, Fueling Summer Shopping Speculation [JC Williams Group Analysis]

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April 25, 2024

Eaton Centre Montreal. Photo: Craig Patterson

February retail sales continued on a path of growth in Canada with All Stores growing 4.4% YOY. Discretionary spend grew to a similar extent with All Stores Less Automotive, Food, and Pharmacies up 4.5% YOY in February.

2024’s Valentine’s Day, as with previous years, has an impact on February’s retail sales. However, with continuous inflation in 2024, it was likely that sales would be impacted. RCC performed a study for 2024 Valentine’s Day, with some notable results for those taking part in the occasion:

49.1% planned to spend $50 or less, with the rest expecting to spend more than $51.
25% expected to go to a restaurant and 22% expected to purchase/receive gifts.
58% expected to purchase products related to food/beverages/alcohol.
27% found inspiration in-store for Valentine’s Day, the highest compared to other channels.
78% plan to purchase products in-store rather than online/other for the occasion.

These predictions from the report were reflected in various categories in February’s retail sales, namely:

Specialty Food Stores continued to grow in February 2024, up 14.4% YOY, as with in January (6.6% YOY). As mentioned last month, this is likely due in part to the frustration with larger grocery chains. However, this impressive growth in February can also be attributed to consumers looking to spend on food/beverage (58%). Rather than looking at restaurants, consumers may have opted to spend on higher-end food and cook rather than pay increasing restaurant prices.
Beer, Wine, and Liquor Stores were up 1.6% YOY in February. This category has been on a slow, but steady, decline recently. While still down -0.2% YTD, this increase in sales is likely thanks to Valentine’s Day. Wine, cocktails, etc. are popular beverages for the occasion, and it seems consumers were not ready to part with this tradition. In contrast, Cannabis Stores sales were up a mere 2.9% YOY in February, much lower than is normal.
Jewellery, Luggage, and Leather Goods Stores grew 3.8% YOY in February. This category is very popular for Valentine’s Day, but it seems to not be as strong as consumers’ budgets get tighter and tighter. Growth is growth, so consumers clearly were still spending on this category, and more than in 2023, but it may be that Valentine’s Day is slowly becoming more experience than product-focused.

For the first time lately, Home Furnishings Stores grew by 0.6% YOY. A category that has been struggling due to its inherently higher ticket items, as well as difficulties in the housing market, this is a welcome change. The Bank of Canada continues to hold interest rates, while there are no immediate signs of housing prices decreasing in the short term. Therefore, consumers may now be opting to simply buy a home if they have been waiting, or stay put/furnish/upgrade if they have purchased and expect the value to be in flux. Regardless, the Furniture Stores category is still down for February, -0.5% YOY, but this category may start to grow again for the same reasons.

As April is coming to an end (at the time of writing), the JCWG team is looking forward to summer retail trends.

With consumers getting more and more used to increasing costs, will they budget larger ticket items throughout the summer or will they continue to save for the uncertain future?
Where will the majority of tourists to Canada be coming from this year? Will Americans start to return more with favourable exchange rates?
What products will be the most popular in summer 2024? Will summer wardrobe changes lead to increases in clothing sales (down -5.6% YOY in February 2024)?
How are YOU preparing for tourists in summer 2024?

For support with building a seasonable and actionable retail strategy, reach out to the trusted experience at JCWG

Canadian Retail News From Around The Web For April 25th, 2024

By

Retail Insider

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April 25, 2024

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Metro expanding loyalty program amid a ‘transition year’ for the grocery company (Financial Post)

Metro CEO says Canadian industry ‘very competitive’ as Ottawa eyes foreign grocers (Yahoo)

Canada’s retail sales flatlined in the first quarter of 2024 (BNN)

Nutty supply chain mixup leads to Loblaw losing truckload of walnuts (Financial Post)

Urban Fare in Mount Royal being replaced by Save-On-Foods as grocers turn to discount banners (Calgary Herald)

172 people arrested as police target ‘organized retail crime’ in Vaughan (Global)

Toronto’s Eaton Centre opens new food hall designed to feel like a cosmopolitan train station (NOW)

Metro Vancouver Walmart left with trashed products, empty shelves after fire (Daily Hive)

Quebec liquor store employees walk off the job as two-day strike begins (Yahoo/Canadian Press)

Here’s which SAQ liquor stores are open in Montreal and throughout Quebec (CTV)

Trio busted in Toronto smash-and-grab jewelry store heist caught on video (Toronto Sun)

‘Arcadia Earth’ Experience Concept And Travel Exhibit Opens At The Well in Toronto [Interview]

By

Shelby Hautala

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April 24, 2024

As tourism season is approaching, Arcadia Earth in Toronto is preparing by extending opening hours, adding activities, and is looking at hiring additional staff for the anticipated higher visitor numbers. To inspire people across Canada, the brand is also looking at introducing a travel format so more people can enjoy its exhibit and learn about sustainability.

Arcadia Earth is a multi-sensory interactive experience concept that combines creative art installations and exciting technology to inspire visitors to take action towards a more sustainable future. It recently opened at The Well in Toronto.

“We are just planning what we need to be able to accommodate a full house almost every day. We are planning on potentially opening at least six days a week instead of five, potentially even seven days a week. But I am kind of in learning mode right now of what the potential tourism season is in downtown Toronto for us. We are anticipating almost every day it will be like a Friday or Saturday, which we are super excited about and just about ready,” says Craig Perlmutter, president of Arcadia Earth.

To add more to the exhibit, Arcadia Earth is also looking at adding new activities, such as arts and crafts and adult-friendly nights.

With already hitting 40,000 visitors, Arcadia Earth will be expecting more during tourism season.

Full-day experiences

As The Well continues to open, it extends awareness and people’s time at Arcadia Earth.

One big section retailers at The Well are waiting for, is the food hall, which is anticipated to open before the summer. The food hall, called the Wellington Market, will be about 70,000 square feet and will be offering higher-end options.

“The Wellington Market will attract traffic, so we have been currently bringing our own traffic to the exhibit – but a lot more people will walk up during the summer once that opens. A lot of the questions we get when people leave is about where they can go to eat and to have this food offering, no one is ever going to ask us that question anymore. It is going to look incredible and I think it is going to be great.”

In addition to the food hall, The Well has other offerings that will bring traffic to Arcadia Earth such as light shows, entertainment, and food tastings: “I think they are going to be doing a lot more of that through June, July, and August to attract more people and make sure people come, stay, and hang out. I am super excited to see what they have in store for us.”

Guests can also shop at the exhibit in its marketplace, where “greener, eco-friendly, and healthier” products are available.

“At our marketplace, we are trying to highlight products and entrepreneurs that are truly trying to make a difference. Our hope is that if people are inspired about one or two things within the different rooms of the exhibit – they will come out into the marketplace and see a few different connections back to some of those rooms.”

Most of the brands showcasing at Arcadia Earth are Canadian and Perlmutter says a lot are female owned. The exhibit is always looking for new brands to include and has a steady stream of applications.

Adult friendly nights

Arcadia Earth is working on bringing more adult-friendly nights, extending the immersive experience into the evening.

These events will feature a unique atmosphere with a bar setup, where adults can explore the space with an alcoholic drink – blending leisure and education where adults can engage with environmental consciousness in a relaxed setting.

“We are really excited about launching our adult-friendly nights. It is a chance for us to offer a different kind of experience – one where adults can unwind with a drink in hand, yet still engage deeply with the themes of sustainability and environmental awareness that Arcadia Earth stands for. We believe that combining leisure with education in this way can foster a unique connection and deeper conversation about the pressing environmental issues we aim to highlight.”

Perlmutter says the adult-friendly evenings will likely be held once a week during the summer.

Drawings coming to life

Arcadia Earth has been working on a new piece to its augmented reality. Guests are invited to show their drawing skills on a piece of paper which will display either a fish, turtle, or a manta ray and watch it come to life on their phone.

“They scan it using their phone and that newly painted version of the species ends up swimming around the room on their phone in front of them, which I think will be really cool and neat. This is something that can be done either in our event space or even just out in the marketplace area where we can set up some tables and some coloured pencils – it just kind of extends people’s time here.”

The concept will also provide the opportunity for parents to shop in the marketplace as their kids colour.

On the road

Arcadia Earth is looking beyond its roots in Toronto with a potential travel concept, bringing the immersive exhibit to those across Canada.

The travel version of the exhibit aims to showcase the essence of Arcadia Earth’s mission in a portable concept, offering interactive installations, augmented reality features, and educational content.

Purlmutter says he is working on this project and will be looking into malls where it could have two to three exhibit rooms for a period of two to six months at a time.

“Our goal with this traveling concept is to transform shopping malls into gateways of environmental awareness, creating spaces where art, technology, and education coverage inspire action. This represents a bold step forwards to making our interactive installations and augmented reality features accessible to a wider audience, providing that meaningful environmental education that can thrive in any setting.”

Additional Photos of Arcadia Earth:

Luxury Brand Loro Piana to Expand into Canada with Standalone Stores

By

Craig Patterson

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April 24, 2024

Loro Piana flagship store under construction at 111 Bloor St. W. in Toronto. Photo: Craig Patterson

LVMH-owned Italian luxury brand Loro Piana will be opening its first two standalone stores in Canada this year in Toronto. Construction is now underway on Bloor Street for a flagship, as well as at the Yorkdale Shopping Centre for a second Toronto location.

The Bloor Street Loro Piana flagship replaces a Dolce & Gabbana store, in a building spanning about 10,000 square feet over three levels at 111 Bloor Street West. A second Loro Piana store is under construction at Yorkdale, spanning more than 3,800 square feet in the mall’s new centre-run luxury wing that is currently in development.

David Wedemire and Stan Vyriotes of DWSV Realty negotiated the lease deal for Loro Piana and Tom Balkos of P3 Global Realty Advisors, along with Alex Edmison and Brett Taggart of CBRE represented the landlord.

Future Loro Piana store in the new luxury wing at Toronto’s Yorkdale Shopping Centre. Photo: Craig Patterson

Loro Piana has had a retail presence in Canada for several years at Holt Renfrew, and the brand continues to operate concessions at Holts stores in Vancouver and Calgary. Prior to the pandemic, Loro Piana also had concessions at Holt Renfrew’s Toronto stores including at the Yorkdale Shopping Centre and downtown at 50 Bloor Street West.

Until recently, the brand’s men’s clothing and other items were carried at Harry Rosen on Bloor Street in Toronto. Rosen operated a Loro Piana hard shop on the second floor of the store which was recently converted to a space for pricey Italian brand Kiton (Rosen’s flagship will be relocating in 2026 to Cumberland Street).

The former Loro Piana boutique space at Harry Rosen on Bloor Street was recently converted to a Kiton shop-in-store. Photo: Craig Patterson

Bloor Street West in Toronto, showing the location of the new Loro Piana flagship store. Photo: Craig Patterson

It’s not known if Loro Piana will open more Canadian stores — in Vancouver, the clustering of luxury brands at Oakridge Park, set to open in the spring of 2025, could be attractive to Loro Piana. There is no confirmation at this time, however, that the brand is expanding further in the Vancouver market beyond its ‘world of’ concession at the downtown Holt Renfrew, which is sizeable with a range of Loro Piana men’s and women’s ready-to-wear, bags, accessories, footwear and other categories.

Loro Piana’s expansion into Canada spells confidence in the high-end market. Luxury brands Retail Insider has spoken with are indicating that there is a local population that is buying luxury goods, including affluent households that are immune to economic challenges. The segment of the luxury market driven by brand-driven middle-class shoppers has been hit hard with inflation at the same time. Tourism has bounced back in Canada, though Chinese visitor numbers are down substantially when compared to before the pandemic. Luxury brands have also built-out an impressive retail offering in China, meaning that places like Canada are a less attractive shopping destination unless there’s a currency fluctuation.

Loro Piana is known particularly for its cashmere goods, with prices well into the thousands of dollars depending on the item. The brand was founded in 1924 and is the world’s largest cashmere manufacturer. French conglomerate LVMH acquired a controlling stake in Loro Piana in 2013 and now owns 85%, with the founding family owning the remaining 15%. The brand has stores in major markets globally as well as a network of concessions and wholesale accounts.

Former Dolce & Gabbana on Bloor Street West in Toronto in 2020. Photo: Dustin Fuhs

One of Loro Piana’s biggest competitors in the cashmere space, Brunello Cucinelli, has also been expanding in the Canadian market. That includes having opened its largest location in North America in early 2019 on Yorkville Avenue in Toronto and before that, a store on Thurlow Street in Vancouver in the fall of 2015. Brunello Cucinelli will open a standalone 3,250 square foot store at Toronto’s Yorkdale Shopping Centre in its new luxury wing, replacing a ‘world of’ concession in Holt Renfrew that closed several months ago. A second Vancouver location for Brunello Cucinelli is confirmed to be opening at Oakridge Park in 2025. In Montreal, Carbonleo was said to be in talks for a store at Royalmount and we haven’t received confirmation of a store.

The luxury run of Bloor Street West is transforming into a row of flagship-sized luxury stores. It’s one of only a handful of such streets in North America, housing global luxury stores such as Louis Vuitton, Dior, Tiffany, Gucci, Prada, Saint Laurent and many others (and more to come). Yorkdale is also expanding its luxury offering by about 60,000 square feet by repurposing a central corridor into a new luxury run. Several luxury brands are confirmed to be opening, including Loewe (now open), Brunello Cucinelli and Loro Piana. Several other brands will be announced, including two standalone stores that currently operate as concessions at Holt Renfrew in the mall.

We’ll follow up on this story as we learn more about Loro Piana’s Canadian store expansion.

Jeweller Michael Hill to Showcase New Store Design in Canada with Major Brand Refresh [Interview/Renderings]

By

Shelby Hautala

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April 24, 2024

Store Renders 1 — New Michael Hill 'New Era' store design concept. Renderings provided by Michael Hill International

Australian jewellery brand Michael Hill has launched a brand refresh with a focus on sustainability, digital engagement, and craftsmanship. The transformation, nearly two years in the making, officially launched on April 15th, featuring Miranda Kerr as the brand’s new ambassador. The refresh also includes plans to open the company’s first flagship location in Canada with a new store design that is showcased in this article.

“As we embark on this new era, it was important that we selected someone who not only embodies our brand values, but someone who is close to our antipodean roots and is the epitome of timeless elegance and sophistication. Miranda Kerr, perfectly aligns with the sustainable business practices that Michael Hill is aspiring towards, to become one of the most sustainable jewellery brands in the world by 2030,” says Daniel Bracken, CEO of Michael Hill.

New Michael Hill store design concept. Renderings provided by Michael Hill International

Digital refresh

With the digital landscape playing an increasingly important role in brand engagement, the refresh of Michael Hill includes a new digital strategy, focusing on its website and social media platforms such as Instagram.

The revamped website features user enhancements, creating a seamless consumer journey while also changing the brand’s look and feel. Social media platforms have also been improved, with a completely new strategy and design to increase engagement with followers.

“One of those most critical parts of our brand refresh was our digital platforms. We did a holistic review of our entire ecosystem, and our website was one of the core parts of our omni experience we needed to focus on first. The website is often the first touch point of the brand, particularly important in the jewellery category where customers come to explore and search before heading into the store. The website refresh included a design and UX enhancements to ensure a seamless customer experience, while elevating the overall look and feel to a more sophisticated and elegant visual environment … We overhauled our social strategy, our approach, and our aesthetics – completely revamping the way it comes to life for our followers,” says Jo Feeney, the Chief Marketing Officer at Michael Hill.

“Fully sustainable, responsible, and circular product line by 2030”

Sustainability and ethical responsibility is a key focus on Michael Hill’s vision. The company’s recently launched Re:cycle program allows customers to recycle their gold products in exchange for Michael Hill gift vouchers.

After the success of the Re:cycle program in Australia, Michael Hill expanded it to Canada and New Zealand. The program is a part of Michael Hill’s environmental, social, and governance goals, focusing on creating a circular product line by 2030.

“Following the overwhelming response in Australia, we made the conscious decision to roll out the program to Canada and New Zealand to further expand our impact and help us achieve a fully sustainable, responsible, and circular product line by 2030,” says Feeney.

Michael Hill will ensure all pieces are sourced ethically and responsibly to have a sustainable future – creating a sustainable future for the jewellery industry.

“We are working towards a net zero impact on the planet, focusing on fair labour practices, and supporting community development. As a member of the Responsible Jewellery Council that aligns with UN goals, we are driving global change and adhering to ESG standards,” says Feeney.

To further its sustainability goals, Feeney says the company also launched the Michael Hill foundation where it plans to not only “give back to the planet through our nature restoration program,” but to also “empower women across the markets” the company operates. This new foundation launched this past February,

Engaging employees and feedback

To connect existing employees with the brand refresh, Feeney says sharing the why is important. The company has also been involving its employees with the rebrand journey by sharing details and actively engaging them in the transition process.

“We share the ‘why’ importantly so that it makes sense as to our purpose and goals. All our store teams have new rebranded accessories to wear to feel connected to this change. We produced video interviews with our founder Sir. Michael Hill and myself, sharing insights on the rebrand and what it means for the future – it is always so inspiring for our teams.”

Michael Hill will also track feedback coming in from customers and stakeholders for necessary improvements, if any. Feeney says the company will be revving social media, purchases, and will have surveys.

“We will look to understand uplift in our sales and average transactions. We also have active social listening and NPS surveys in place. From an internal perspective, we hold regular review sessions with the team, engagement surveys, internal feedback forums, and an internal steerco group to support various teams and initiatives across the business.”

New product offers and a Canadian flagship store

The goal Feeney says is for Michael Hill to have a “fully sustainable and circular product line by 2030.”

The company is also looking to continue to evolve its product offers and will be opening its first Canadian flagship store.

“Michael Hill will continue to elevate the product offerings, having launched its first ever High Jewellery collection – including bespoke, one-off uniquely designed pieces. As well as launching further new production innovation with our Signature Lock collection. We also look to bring our first Canadian flagship store to market in 2025, as well as store refreshers when the opportunities arise.”

Canadian Retail News From Around The Web For April 24th, 2024

By

Retail Insider

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April 23, 2024

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Air Miles expands rewards program on groceries, alcohol and more (Grocery Business)

Loblaws Canada groceries: Video goes viral after man slams ‘downright antagonistic’ Loblaw-affiliated stores (Yahoo)

Canadians weigh in after Ontario grocery store displays sign about meat using fresh and frozen meats (NOW)

New Save-On-Foods store to open in Calgary (Grocery Business)

Alberta liquor retailers reject idea of expanding alcohol sales to groceries, corner stores (CBC)

Food prices are stabilizing, but Nova Scotians are still feeling pinched (CBC)

Inside the Decathlon Vancouver flagship store at Metrotown mall (Daily Hive)

Dan Fumano: Vancouver businesses call, once again, to shift more of tax burden to residences (Vancouver Sun)

P.E.I.’s new immigration policy hurting service and retail sectors, business leaders say (CBC)

Pot shop employee pushes Ontario to adopt a cannabis container return program (CBC)

Harvey’s Aims to Open Substantially More Locations in Canada as Restaurant Chain Marks 65 Years [Interview]

By

Shelby Hautala

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April 23, 2024

Harvey’s celebrated its 65th anniversary last month and is continually making adjustments to improve its restaurants by enhancing customer experience, improving technology, and new menu innovations. Michael Nault, chief operating officer at Harvey’s, discusses Harvey’s past 65 years in Canada and what consumers can expect going forward, including the ultimate goal of potentially hundreds of more locations within the next five to ten years.

“Over the past 65 years, there is a lot that has changed, but our focus on customization and taking care of our guests has always been at the core of what we do. Looking forward, we are not just about growing our number of locations; we are about enhancing the whole Harvey’s experience. From digital advancements that streamline the ordering process to innovative menu additions that delight our customers, we are committed to evolving while maintaining the essence of what has made Harvey’s a beloved brand in Canada,” says Michael Nault.

The past 65 years

Over the past 65 years, Harvey’s has evolved from a simple burger restaurant into a larger fast-food chain in Canada, adapting to the changes in customer preferences and technology. The first location opened in 1959 in Richmond Hill, north of Toronto.

Nault says Harvey’s has broadened its menu innovations, embraced digital transformation through its app and digital menu boards, and has committed to sustainability by maintaining eco-friendly practices such as partnering with Tree Canada.

“Looking back over the past 65 years, Harvey’s has not just adapted but thrived by embracing change all while staying true to our roots in customization and quality. Our journey has been more about than just serving meals – it is about creating a community around our brand, one burger at a time.”

Harvey’s continued focus on customization, quality, and community engagement reflects its dedication to maintain its values while continuing to expand throughout Canada. The success of Harvey’s is pinpointed to its power to adapt and listen to consumer needs.

“Authenticity has been a big pillar on how we have been able to succeed for the past 65 years, along with customization. The second piece I would really have to attribute to is our associates and our franchisees. We have a great collaboration with a number of our franchises across the system and we work with them very closely on programs that we put into our restaurants and how we do things.”

Burger hunt across Canada

To celebrate the occasion, Harvey’s planted burger cards around the country, including around Harvey’s locations and iconic landmarks in Canada. The hunt started on March 26th and is still on-going as not all cards have been found.

Harvey’s planted 1,650 free burger cards which included four VIP ‘Harvey’s for a year’ cards – one of which is yet to be found in Montreal.

Harvey’s is also selling limited edition merchandise, where consumers can customize a shirt.

“We kicked off the great Canadian burger find on March 26th, hiding 1,650 burger cards across the country. This includes four VIP cards for ‘Harvey’s for a year,’ with one still waiting to be discovered in Montreal. And to make the celebration even more special, we introduced limited edition merchandise, offering our loyal customers the chance to customize their own Harvey’s shirt, celebrating our years in a truly personal way.”

Going forward – expansion plans

With 300 chain restaurants, Nault says they are always looking to grow and expand across Canada.

“We have a good presence in Ontario, so we are continuing to look at different footprints for Ontario and in Quebec there are lots of opportunities for us to expand. We opened up a few restaurants recently in Ontario, which have been great success and now we have sites in the West and East and are looking forward to opening them and they are all different footprints. Whether it is a gas station, a mall, or just our traditional footprints, we will continue to look for those opportunities across the board.”

Nault says Harvey’s is planning on opening around ten locations in 2024 with key areas being Montreal, around the GTA, London, Ontario, Alberta, and some locations in Calgary.

“Harvey’s has set out a target of 500 locations over the next five to ten years, and I’d say that we are continuing to work towards that target and build opportunities. We are on pace and still working towards that as our target – so we are going to place Harvey’s in the hands of more people across the country.”

Harvey’s renovation program & innovations

Harvey’s at 2986, boul. Saint-Charles, Kirkland, Quebec (Image: Harvey’s)

Nault says around 85 per cent of Harvey’s restaurants have been renovated and they are continuing to complete the rest of the locations.

“One of the things for us is creating an experience within the four walls, so making sure it is bright, vibrant, and energetic. This is something we are exploring, and it is really just keeping the look and feel of the restaurants and keeping the atmosphere vibrant.”

As far as new innovations in restaurants, Nault says for years Harvey’s has had digital menu boards and an app for consumers to order from, but is looking to take it further to include kiosks.

“Is there also an option for us to continue down this path and have guests place their own orders within the restaurant, on a kiosk rather than just having the opportunity on a mobile app? That is something we are exploring.”

Evolving the menu

In the past, Harvey’s has continually developed its menu options to evolve with consumer’s needs. While the company started with just burgers and hot dogs, it has evolved by expanding its offerings. Last year, Harvey’s introduced the pickle poutine and is constantly looking for new ways to innovate its menu.

Nault says some of its ideas come from consumers themselves through social media.

“Social media shows how our guests are being creative, such as dipping donuts in milkshakes, and it is a fun way to connect with them. This also leads to innovations like the pickle poutine – a menu hack inspired by media that turned into a limited-time offer. It is how we discover fun ideas that could become the next big thing.”

Harvey’s QSR Restaurant Chain Looks to Add 200 Locations in Canada in National Rollout

Miele Expanding Canadian Footprint with Retail Space at CF Sherway Gardens in Toronto [Interview]

By

Mario Toneguzzi

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April 23, 2024

Future Miele Experience Centre at CF Sherway Gardens (Image: Craig Patterson)

Miele, the world’s leading manufacturer of premium domestic appliances, founded in 1899 in Germany is expanding its Canadian retail store footprint.

Miele Canada will open by the end of May its sixth location and second in-mall store at CF Sherway Gardens in Toronto.

“Our future Miele Experience Centre at CF Sherway Gardens reflects Miele’s commitment to continually strengthening our brand while delivering unmatched quality and innovation,” said Nelson Fresco, President and CEO of Miele Canada. “We’re creating a space where consumers can explore the possibility of building their dream home.”

Other locations are at the Yorkdale Shopping Centre in Toronto, in Vancouver, in Calgary and in Montreal. The company’s first store opened in Vaughan in 2006 in 6,000 square feet of space.

Vancouver was initially about 4,000 square feet but expanded to about 5,000 square feet. Calgary is about 4,000 square feet. In 2017 and 2018, the company took a different approach wondering if it really needed so many appliances on the floor. So it decided to go to a smaller footprint with less appliances in the store.

“We opened up Yorkdale in 2018. We really streamlined the lineup and that one’s about 2,100 square feet. So very compact. Our latest one in Sherway mall will be even smaller than that. It will be about 1,600 square feet,” said Fresco. “And really we’re just going to focus on the fast-moving SKUs – dishwashing, laundry, ovens. It’s really about educating the consumer on the brand.”

Miele at CF Sherway Gardens (Image: Miele)

The new flagship store at Sherway will showcase appliances from Miele’s latest Generation 7000 cooking line, MasterCool built-in refrigeration, W1 and T1 laundry appliances, coffee machines, an assortment of robot, bagged and bagless canister vacuums, as well as the latest Miele Triflex cordless stick vacuum cleaners, and Miele’s own Cleaning and Care Products.

“The introduction of this new retail space presents an exceptional chance for us to showcase our innovative appliances to the residents of the West Greater Toronto Area, while inviting them to discover an exceptional customer experience while exploring the Miele Brand,” said Phil Angemi, Vice President of Sales of Miele Canada.

The store will also allow consumers to experience interactive product demonstrations led by expert sales associates, providing invaluable insights into the world of Miele craftsmanship and innovation.

Miele Experience Centre at Yorkdale Shopping Centre (Image: Miele)

Besides its retail stores, the brand has a strong presence across Canada in other stores with its products. There’s more than 1,000 points of distribution across the country with many of its smaller products. As for major domestic appliances, they are sold in just under 200 locations across Canada.

“I really want to build the brand in Canada. That to me is number one and I want to do it in partnership with all our partners because we have a lot of partners across Canada,” said Fresco.

“So the stronger I can make the Miele brand and our team here Miele Canada can make the brand the better it is for our partners as well. So this will be our sixth location in Canada. I can see a couple more in the future and really I want that consumer to feel why we’re different than any other manufacturer across the country.

“For me it’s about the customers. Everything we do is about the customer. We really want to make sure that they’re at the centre of everything we do. We have three contact centres in Canada. I don’t know how many brands have that. How many brands have service from Halifax to B.C.? And it’s in a home. Service technicians are Miele employees. We deliver our own appliances. Nobody else delivers our appliances. When you look at other brands, everybody else, the stores do it. They deliver. No, we deliver our own. We need to control that experience.

“Sustainability is another big one for me. We build our appliances to last 20 years. So really the best way to contribute to (sustainability) is buying products that last. When I ask people what they think of Miele, if they say quality, that puts a smile on my face.”

Miele was founded by Immer Besser with a simple phrase meaning Forever Better. Today, the family-run business, now in its fourth generation, employs a workforce of around 22,300, of which approx. 11,200 employees work in Germany. The company has its headquarters in Gütersloh in Westphalia.

Miele Canada was established in 1989 with headquarters located in Vaughan, Ontario.

Despite Economic Challenges, Edmonton Retail Leasing Market Experiences Growth and Expansion: JLL Report/Interview

By

Mario Toneguzzi

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April 23, 2024

ice-district-image-1__CropWidthWzE5OTld_ScaleMaxWidthWzE0NDBd — Downtown Edmonton. Photo: One Properties

There is increased demand for retail space in Edmonton amid slowing retail sales, according to the latest Edmonton Retail Insight Spring 2024 report by commercial real estate firm JLL.

The Edmonton retail leasing market is experiencing increased net absorption and consistent leasing volumes and major international retailers, particularly in the athletic, fashion, and luxury sectors, are actively expanding their presence in the market, it said, adding that Edmonton’s consumer spending remains robust, suggesting that growth is still expected in the retail sector this year.

“Leasing activity in Edmonton’s retail market has increased. Demand for retail space is surpassing supply, creating an increase in net absorption and a decrease in availability,” said JLL.

“Major international sportswear, fashion, and luxury brands such as Nike, Uniqlo, and Moncler have expanded in the market. Additionally, Hudson’s Bay has been opening Zellers pop-up stores within select shopping centres, and Rona has converted some Lowe’s locations to the new Rona+ banner.

“Rental growth has slowed. However, inflation and property taxes are anticipated to trigger higher rental charges when landlords shift these expenses onto tenants. Construction activity is currently low, with Ever Square the only major development expected for completion this year.

New Moncler store at West Edmonton Mall. Photo: Moncler.

Most leasing activity is based on general retailing, neighbourhood centres, and malls. New retail concepts continue to be introduced at West Edmonton Mall and Southgate Centre, especially within the apparel and accessories category.

“In conclusion, the Edmonton retail leasing market is experiencing high demand and this trend is set to continue, reducing availability.”

JLL said the retail market in Edmonton remains attractive for expanding national and international retailers. Despite the softer outlook, rapid population growth, a positive outlook for the oil industry, and the presence of high-paying government jobs sustain local retail growth, it said.

“Although Edmonton’s retail sales growth is slowing, there are still prospects for growth in the current year. Edmonton residents have been placing a higher importance on food services, shoes, groceries, and cannabis, rather than on home improvement,” explained the report.

Whyte Avenue in Edmonton, April 2024. Photo: Mario Toneguzzi

“Despite a weaker economic forecast, Edmonton is in a strong position to withstand a potential decrease in the national economy. The provincial government, ongoing activity in the oil and gas industry, and a rapidly growing population are all expected to continue supporting the local economy.

“In 2023, restaurants offering both full service and limited service have outperformed retail goods, and this trend is anticipated to continue with a slower growth rate in the single digits.”

Increased pedestrian traffic, a change in safety perception, and more funding over the past year are all positive signs that downtown Edmonton is on the road to normalcy. However, Edmonton still lags other major Canadian cities in terms of transit ridership, added JLL.

Rendering of the ICE District in Edmonton, via One Properties

Southgate Centre in Edmonton. Image: YEG Adventures

“Downtown is becoming lively again due to the return of workers, the revival of events and activities, and investments from partners and government agencies. The city’s collaboration with higher levels of government to increase safety and police presence has improved,” said the report.

“Hosting prestigious events such as the Juno Awards continues to boost Edmonton’s economy, image, and reputation. According to Expedia, Edmonton is a top destination for concert and live-performance enthusiasts.

“With air-passenger traffic at more than 90 per cent of pre-pandemic levels, Edmonton’s tourism industry continues to recover, keeping its momentum.”

Ron Odagaki, Associate Vice President, Retail at JLL, said the vacancy rate in Edmonton is a little higher than Calgary because it has more supply but it’s still healthy.

“The demand for space still is quite strong even if it has weakened a little bit. The lack of supply still keeps rental rates stable. The one difference to Calgary is that Calgary’s downtown is a lot stronger in terms of recovery and therefore as Edmonton tries to revitalize the downtown I still think Calgary is ahead in terms of that pace of return to the office and a revitalization of the downtown core for longer hours, evenings, weekends, entertainment,” he said.

Odagaki said there are more employees in the downtown core in Calgary compared to Edmonton.

“There are a few more headwinds that I think Edmonton will have to experience but we’re hoping that it continues to recover over time,” he said.

There are similar trends to the Calgary market.

Henry Singer Stantec Tower, Ice District in Edmonton (Image: Henry Singer)

But Edmonton’s downtown is showing some positive signs of recovery with the popular ICE District and the recent opening of the new flagship store in the area for Henry Singer.

“There are some signs of recovery. It is happening. Calgary is just a little bit further ahead,” added Odagaki.

“On the consumer side of things, I hear consumers are trying to stretch their dollar but the point being the dollar is still being spent and I think that’s indicative of the consumer spending data that we’re seeing.

“The mall world in Edmonton, you’re seeing some activity and leasing activity in the major enclosed malls as well which I think is a good sign.”

Canadian Retail News From Around The Web For April 23rd, 2024

By

Retail Insider

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April 22, 2024

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

How Knix is mapping out its growth strategy post-acquisition (Modern Retail)

Opinion: Why the rise in shoplifting? Blame our addiction to online shopping (Globe & Mail / subscriber paywall)

Turkish grocer BIM could evaluate Canada market if invited: CEO (Daily Sabah)

Empire and Sobeys exceed food rescue goal for 2023 (Canadian Grocer)

Alexis Brown promoted to director of social impact and community for North America at Eataly (Grocery Business)

French used less often as exclusive language to greet customers, OQLF says (Montreal Gazette)

Union files application to represent workers at Amazon facility in Laval, Que. (Financial Post)

Innisfil Canadian Tire opens ‘new chapter’ with grand reopening (Innisfil today)

Calgary halal grocers and wholesaler shut down by Alberta Health Services over sales of uninspected meat (CBC)

This teen was poisoned by carbon monoxide on the job at a grocery store in Saskatchewan. His parents say the employer got off easy (CBC)

LCBO tells customers not to confront shoplifters after fight caught on camera at Toronto store (NOW)

Hellmann’s Canada drops limited edition sneakers made from food waste, supports Second Harvest (Grocery Business)