More than 50% of Ontario convenience stores licensed to sell beer and wine

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August 13, 2024

province-approves-corner-store-alcohol-sales-1-6688152 — Screen shot from a CTV News broadcast with Ontario Premier Doug Ford

Ontario’s convenience store landscape is on the brink of a significant transformation as the province gears up to allow alcohol sales in these retail outlets. Beginning September 5, 2024, more than half of Ontario’s convenience stores will be permitted to stock their shelves with beer, cider, wine, and ready-to-drink alcoholic beverages, marking a pivotal shift in the province’s alcohol retail strategy.

According to the Alcohol and Gaming Commission of Ontario (AGCO), 3,866 convenience stores have already secured their liquor licenses, with 1,617 of these licenses—approximately 42 percent—being issued to gas stations. The development affects more than 50 percent of Ontario’s estimated 6,700 convenience stores.

While convenience stores are set to begin alcohol sales in early September, newly licensed grocery stores will follow suit on October 31. The staggered approach allows for a gradual implementation of the new policy, giving retailers and regulators time to adjust to the expanded marketplace.

The AGCO has emphasized that despite receiving their licenses, stores are strictly prohibited from selling alcohol before the official start dates. To ensure compliance and maintain responsible sales practices, the commission has bolstered its inspection capacity by approximately 25 percent. The increase in oversight is supported by additional funding from the provincial government.

Eligible stores must meet a series of criteria outlined in the province’s Liquor Licence and Control Act to obtain and retain their liquor licenses. These requirements include a comprehensive compliance monitoring process and specific operational guidelines. For instance, employees involved in alcohol sales must be at least 18 years old and complete an AGCO Board-approved training program. Additionally, alcohol sales are restricted to the hours between 7 a.m. and 11 p.m., seven days a week, regardless of a store’s regular operating hours.

Further regulations stipulate that grocery store licensees can only sell beverages with an alcohol content no greater than 7.1 percent by volume, and wine must not exceed 18 percent alcohol content. These measures are designed to promote responsible consumption and align with existing liquor control policies.

The expansion of alcohol sales to convenience stores has not been without controversy. The move prompted a strike by approximately 10,000 Liquor Control Board of Ontario (LCBO) workers earlier this summer, who expressed concerns about the potential impact on their job security. The dispute was resolved with a three-year agreement that includes wage increases, the conversion of casual positions to permanent part-time roles, and assurances against store closures during the contract period.

KORT Payments Rebrands from Merrco: Insights on Payment Processing and Future Trends

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Retail Insider

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August 13, 2024

KORT Payments, formerly known as Merrco Payments, is making headlines with its recent rebranding and strategic shift, led by industry veteran and CEO Joel Leonoff. The move signifies a significant transformation in the payment processing sector, particularly as the company aims to expand its footprint beyond its Canadian origins.

Joel Leonoff, who has been a prominent figure in payment processing since the late 1990s, shared insights into the evolution of the industry. His journey began with BCE Emergis, where he was instrumental in developing an early online processing engine for merchants to accept Visa and MasterCard. The initial focus was on online gambling, a field that showed early promise compared to other sectors. The venture eventually led to the creation of Surefire Commerce, which evolved into Optimal Payments and then Paysafe.

The decision to rebrand Merrco Payments as KORT Payments reflects a broader strategic shift. Leonoff highlighted the success of Paysafe, which grew significantly under his leadership, reaching a market value of around $13 billion after its acquisition by Blackstone and CVC in 2017. With the new venture, KORT Payments aims to leverage Merrco’s strong Canadian platform to tap into new markets in the United States, Europe, and South America.

Leonoff pointed out that the payment processing landscape in Canada has evolved dramatically, especially post-pandemic. Retailers face the challenge of integrating online and offline payment systems seamlessly. As consumer behaviour shifts towards hybrid models—where online purchases are often picked up in-store—the lines between online and brick-and-mortar transactions blur. This presents a unique challenge for retailers who must adapt to new payment models and fraud prevention measures.

Key challenges in the industry include optimizing conversion rates and managing fraud. Leonoff emphasized the importance of having a versatile payment system that supports various payment methods to avoid losing customers after acquiring them through costly marketing efforts. Fraud management has also become more sophisticated, with advanced tools for detecting and preventing fraudulent transactions.

Looking towards the future, digital wallets are emerging as a significant trend. Leonoff discussed various types of digital wallets, such as stored value wallets and stored credential wallets, and their applications across different industries. He also noted the rise of crypto wallets, which allow for the storage and use of cryptocurrencies. These wallets not only enhance security but also facilitate international transactions, broadening the reach for retailers.

Loyalty programs, another hot topic in payment processing, are evolving rapidly. Beyond traditional cash-back programs offered by credit card companies, digital wallets and merchant-specific rewards are gaining traction. Leonoff highlighted how loyalty programs drive consumer behaviour, citing examples like Aeroplan and various merchant-based promotions.

Leonoff also pointed to the transformative potential of data and AI in payment processing. AI is reshaping how retailers understand customer behaviour, offering more personalized and relevant experiences. This technological advancement is expected to revolutionize credit assessments and customer profiling, surpassing traditional methods like FICO scores.

As KORT Payments embarks on its new journey, Leonoff said that the company is poised to capitalize on these trends, positioning itself at the forefront of the payment processing industry’s next wave of innovation.

Canadian Retailers Face Potential Supply Chain Disruption as Rail Strike Looms

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Retail Insider

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August 13, 2024

Canadian retailers are on high alert as a potential rail strike threatens to disrupt the nation’s supply chain. The Retail Council of Canada (RCC) says it is actively working to prevent a work stoppage at both Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railways, which could have far-reaching consequences for businesses across the country.

The Canadian Industrial Relations Board has set August 22, 2024, as the earliest possible strike date, following a ruling on Friday, August 9th. This decision has prompted CPKC to announce plans for a lockout of their workers if no agreement is reached by the deadline. The situation remains fluid, with both unions required to provide 72 hours’ notice if they intend to proceed with strike action on the set date.

The potential disruption comes at a critical time for Canadian retailers, who rely heavily on the country’s rail network for the transportation of goods. A strike could lead to significant delays in product delivery, potentially impacting inventory levels and, ultimately, consumer access to a wide range of products.

In response to this looming crisis, the RCC says that it is leveraging its extensive network and partnering with various stakeholders to urge the government and all involved parties to reach a mutually beneficial agreement. The council’s primary goal is to prevent any disruptions to the retail supply chain, which could have cascading effects on the Canadian economy.

Despite the tension, there is still hope for a resolution. The time between now and the strike deadline provides an opportunity for continued negotiations and potential government intervention. The RCC says it remains committed to applying pressure on all fronts to ensure a positive outcome that will maintain the stability of Canada’s retail sector.

Costco Canada Tests New Membership Verification System in Selected Locations

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Retail Insider

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August 13, 2024

costco_wholesale_canada_cover — Image: Costco Canada

US-based membership-only wholesale retailer Costco is taking steps to ensure the exclusivity of its shopping experience in Canada. The company has begun testing a new membership verification system at several locations across the country, signalling a shift in how customers access their stores.

The new system, which involves scanners placed at store entrances, is currently being piloted in Ottawa, Edmonton, Regina, and British Columbia’s Lower Mainland. This move comes as part of Costco’s ongoing efforts to address the issue of non-members gaining unauthorized access to their facilities.

Under the new protocol, members will be required to scan either their digital or physical membership cards upon entry. For those whose membership cards do not include a photo, additional photo identification will be necessary. The measure aims to prevent the sharing of membership cards among friends and family members who are not registered members themselves.

Despite the tightened security measures, Costco says that it remains accommodating to guests. Members are still permitted to bring non-member guests to shop with them, provided the member accompanies their guest throughout the visit. To facilitate this process and ensure smooth implementation, Costco has stationed attendants at the entrances of participating locations.

This initiative is not Costco’s first attempt to reinforce its membership policies. In recent years, the company has implemented various measures to protect the benefits of its paying members. These include requesting photo identification alongside membership cards and restricting non-member access to popular amenities such as their food courts, known for their affordable offerings like the iconic $1.50 hot dog combo.

The timing of this new verification system coincides with Costco’s announcement of impending membership fee increases for Canadian and U.S. customers. Starting September 1, annual fees for both “gold star” and business memberships will rise from $60 to $65, while executive memberships will increase from $120 to $130. This price adjustment, the first since 2017, comes with an enhanced maximum annual reward for executive members, now capped at $1,250, up from the previous $1,000 limit.

Costco’s move to strengthen its membership model reflects a broader trend among subscription-based services. Streaming giants like Netflix have already implemented similar measures to prevent password sharing, with Disney+ set to follow suit in the near future. These actions underscore the growing importance of membership integrity in the retail and entertainment sectors.

The success of this pilot program in Canada could potentially lead to a wider rollout across Costco’s extensive network of 108 locations nationwide, spanning nine provinces.

Stardust Roller Rink Revived at Guildford Town Centre for Fall 2024

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Retail Insider

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August 13, 2024

Guildford Town Centre near Vancouver is set to resurrect a beloved local landmark this fall. The iconic Stardust Roller Rink, a fixture in the community for over three decades, will be reborn as Skate Stardust, offering visitors a nostalgic journey back to the 1990s.

The reimagined roller rink, scheduled to open on September 12, 2024, will occupy a 1,690 square-foot space within Guildford Town Centre. This temporary installation, running until October 31, aims to recapture the magic of the original Stardust Roller Rink, which operated from 1971 to 2005 and left an indelible mark on Surrey’s cultural landscape.

Kiran Deol, Marketing Manager at Guildford Town Centre, said, “We’re excited to introduce this iconic roller rink to a new generation while also welcoming back its former fans.” The initiative goes beyond mere recreation, serving as a celebration of community history and a space for creating new memories.

The original location in the 1980s – image retrieved from Facebook

The revived Skate Stardust will feature a retro-themed atmosphere designed to transport visitors to a pre-Y2K era. Complete with a vibrant graffiti wall, neon lights, and a DJ booth, the space aims to recreate the ambiance that made the original Stardust a local hot spot. This careful attention to detail underscores the mall’s commitment to preserving the essence of a once-cherished community gathering place.

Bonnie Burnside, a former employee of the original Stardust Roller Rink, shared her perspective on the enduring impact of the venue. “Even though the Stardust rink closed in 2005, I still encounter people with a Stardust story,” she remarked. “From birthday parties to band nights, from all-night skates to roller hockey, Stardust played a crucial role in growing up in Surrey.”

In a move that emphasizes community engagement, Guildford Town Centre has made Skate Stardust accessible to a wide audience. Entry to the rink will be free, with a nominal $2 fee for skate rentals. Notably, all proceeds from Skate Stardust will be donated to the Surrey Firefighters Charitable Society, further strengthening the initiative’s ties to the local community.

The rink will operate on an extensive schedule to accommodate various visitor preferences. From Monday to Saturday, Skate Stardust will be open from 11 a.m. to 9 p.m., with Sunday hours running from 11 a.m. to 7 p.m. While participants are encouraged to bring their own equipment, skates and protective gear will be available for rent on-site. The minimum age for participation is set at 5 years old, ensuring a safe and enjoyable experience for all visitors.

This innovative project aligns with Guildford Town Centre’s status as a significant retail hub in the region. As the largest mall in the Lower Mainland south of the Fraser River and the third-largest in British Columbia, the centre continues to evolve and adapt to meet the changing needs and interests of its community. By bringing back Stardust, albeit in a temporary format, Guildford Town Centre is not only tapping into nostalgia but also reinforcing its role as a central gathering place for Surrey residents.

Starbucks Shakes Up Leadership with Chipotle CEO Hire

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Retail Insider

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August 13, 2024

SBX2020609-Starbucks-Stores-Transformation-2-1024x448 — Image: Starbucks

Seattle-based coffee giant Starbucks has announced a significant leadership change in response to recent challenges and investor concerns. The company has appointed Brian Niccol, the current chairman and CEO of Chipotle, to take the helm as its new chief executive officer, replacing Laxman Narasimhan after just over a year in the role.

The unexpected move comes as Starbucks grapples with weakening demand and mounting pressure from disgruntled investors. Narasimhan, who assumed the CEO position in March 2023 following Howard Schultz’s interim leadership, will step down immediately. Niccol is set to assume his new role as Starbucks’ chairman and CEO on September 9, with the company’s Chief Financial Officer, Rachel Ruggeri, serving as interim CEO until then.

The leadership transition occurs against a backdrop of declining sales and market challenges for Starbucks. The company reported its first quarterly sales decline since late 2020 in the January-March period, followed by another drop in the subsequent quarter. These setbacks have been attributed to various factors, including increased competition from lower-cost rivals in China and boycotts in the Middle East due to perceived support for Israel.

The appointment of Niccol has been met with enthusiasm from investors, as evidenced by a substantial surge in Starbucks’ stock price following the announcement. Elliott Investment Management, an activist firm with a significant stake in the company, expressed support for the decision, describing it as a “transformational step forward” in realizing Starbucks’ full potential.

Starbucks Chairwoman Mellody Hobson, who will transition to lead independent director once Niccol takes over, praised the incoming CEO’s track record at Chipotle. Under Niccol’s leadership since 2018, Chipotle has seen remarkable growth and innovation, particularly in menu development, operational excellence, and digital transformation.

Howard Schultz, Starbucks’ founder and Chairman Emeritus, also voiced his support for Niccol, stating that he believes Niccol is the right leader for Starbucks at this critical juncture in its history.

The appointment of Niccol brings a fresh perspective to Starbucks, drawing from his successful tenure at Chipotle. During his leadership, Chipotle has continued to thrive despite broader slowdowns in the North American fast food industry. The chain has maintained growth through popular limited-time offerings and generous portions, appealing to customers even as many lower-income consumers reduce dining out.

SAIL Outdoors Inc. Appoints New CEO Isabelle Lemay

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Retail Insider

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August 13, 2024

Sail-2_LR — Photo: lesavenuesvaudreuil.com

Quebec-based outdoor equipment retailer SAIL Outdoors Inc. has announced a significant change in its executive leadership. The company’s Board of Directors, led by Executive Chairman Daniel Desmarais, has appointed Isabelle Lemay as the new President and Chief Executive Officer.

Lemay, a seasoned retail industry veteran, is set to assume her new role on September 9th, 2024, marking a new chapter in SAIL’s four-decade-long history.

Lemay brings a wealth of experience to her new position at SAIL. A certified public accountant by training, she has carved out an impressive career in the retail and distribution sectors over the past two decades. Her professional journey spans both Quebec-based companies and international organizations, providing her with a broad perspective on retail operations and strategies.

Most recently, Lemay held key leadership positions within the Legault Group, specifically at Mondou, a well-known Quebec-based pet supply retailer. Her tenure as Chief Operating Officer and later as Chief Executive Officer at Mondou has equipped her with valuable insights into the complexities of managing a successful retail operation in the Canadian market.

The appointment of Lemay comes at a crucial time for SAIL Outdoors Inc. As the largest network of outdoor, camping, hunting, and fishing stores in Eastern Canada, SAIL has built a strong reputation for providing a unique customer experience. Lemay’s leadership is expected to further enhance this reputation and drive the company’s mission of equipping outdoor enthusiasts with top-quality gear and authentic experiences.

SAIL’s presence in both Quebec and Ontario has solidified its position as a leader in the Canadian outdoor retail industry.

Back-to-school 2024: In-store shopping remains the preferred choice for consumers: Retail Council of Canada report

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Mario Toneguzzi

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August 13, 2024

According to a Retail Council of Canada (RCC) consumer study on back-to-school shopping expectations this year, 34 per cent of shoppers are gearing up for Back-To-School and 85 per cent plan to maintain or increase their spending.

The report, which was released on Tuesday, said nearly three out of four consumers prefer to purchase school items in-store rather than online, reversing the trend observed during the pandemic, when only 40 per cent of purchases were made in-store.

“Back-to-school spending is expected to remain stable in 2024, with 85.7 per cent of respondents believing they will spend as much as last year – or more – on school supplies. The majority of consumers plan to spend more than $50 with the top spending items being school supplies (64 per cent) and clothing (57 per cent), followed by books (25 per cent) and electronics (20 per cent),” said the report.

“Purchasing school supplies is becoming more planned. Nearly 40 per cent of respondents plan to make their purchases two to four weeks before the start of the school year, an increase of around 10 per cent from last year. The proportion of respondents who will shop a week before the start of the new school year has shrunk to just five per cent this year: in 2023, it was over 15 per cent. Flyers and in-store displays are the main sources of inspiration that shoppers will look to for their back-to school purchases.”

The full survey can be found here: Back to School 2024 Shopping in Canada Survey – Retail Council of Canada.

Some key survey findings:

● 72.7 per cent plan to spend over $50 on Back-ToSchool shopping this year, slightly down from
73.6 per cent in 2023;

● 27.3 per cent intend to spend $50 or less, an increase of 0.9 percentage points compared to last year’s 26.4 per cent;

● 37.1 per cent plan to make their purchases two to four weeks before schools begin, up from 29.5 per cent in 2023, indicating a trend towards earlier preparation;

● Only 2.8 per cent will start shopping just a few days before school starts.

Retail is Canada’s largest private-sector employer with over 2.3 million Canadians working in the industry. This sector is a major economic contributor, generating more than $91 billion annually in wages and employee benefits. In 2023, core retail sales (excluding vehicles and gasoline) exceeded $501 billion. Retail Council of Canada (RCC) members account for more than two-thirds of these core retail sales and 95 per cent of the grocery market.

French Chocolatier Jeff de Bruges to Open at Royalmount in Montreal in December [Interview]

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Mario Toneguzzi

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August 13, 2024

JdeB — Jeff de Bruges at Montreal Eaton Centre. Photo: Jeff de Bruges

Chocolatier Jeff de Bruges will be opening up a new location in early December at the new Royalmount development in Montreal.

Xavier Chambon, Vice President of Jeff de Bruges, said it will be the fourth location in Canada for the brand.

“It’s all corporate stores for the moment,” he said. “In France, they have more than 545 stores and they are in 14 countries.”

The first location opened in downtown Montreal several years ago.

“We have a trendy and fashion look and because we are in the chocolate business and ice cream, we are in the mid to high end positioning,” said Chambon. “We’ve got the nice packaging. We are also the only one for Royalmount that will sell chocolates. For us it’s important.

“Also, we try to have the best shopping malls in Quebec and if we go to Ontario.”

Tony Flanz, President at Think Retail, said the new 660-square-foot store is ideally situated in this innovative mixed-use development, which offers a groundbreaking approach to how people work, learn, play and live.

“Located in the heart of Montreal, Royalmount is the largest private development in Quebec and the focus is on what the creators call “active mobility…. a never-before-seen living environment where connectivity, creativity, sustainability and technology thrive,” said Flanz.

“Royalmount is welcoming an exciting array of innovative retailers and eateries, making it the perfect site for Jeff de Bruges’ fourth location in Canada. This is just the beginning for this marquee global company. Its stores are beautifully designed with a sophisticated air that showcases innovative products against the company’s turquoise and chocolate-brown palette.

“Jeff de Bruges dates back to 1986 when Philippe Jambon founded the Belgian chocolate company in France, quickly establishing the brand as a go-to for gourmet Belgian chocolates, with a French twist.”

Jeff de Bruges La Chapelle St Luc (Image: Jeff de Bruges)

Flanz said the concept debuted in Canada in 2014 and quickly became a destination for Montreal’s discerning tastemakers, who appreciate the decadent Belgian chocolates, as well as local-sourced ice cream and other treats. The menu is constantly evolving, giving customers a reason to return again and again.

In 2018, Jeff de Bruges relocated its debut store to a beautiful 750-square-foot space at the Montreal Eaton Centre. That same year, it opened a 175-square-foot kiosk at Carrefour Industrielle Alliance in the heart of the city’s pedestrian network. In June 2022, Jeff de Bruges’ opened its third store at Carrefour Laval.

Expansion continues and the company aims to open at least two locations in 2025, with a focus on super regional malls in Montreal and Quebec City. Ideal spaces are 500 square feet to 850 square feet.

Chambon said the concept is a franchise one with more than 60 per cent of the stores in France operating as a franchise.

“We want to develop Quebec City and I think we have more potential in Ontario and the rest of Canada. We have good competitors. We are sure we can make a difference with our offer,” he said.

In a previous Retail Insider story, Chambon said: “We are very careful because the business model has to be of course very good for our franchisee. We are very careful about the location and the profitability of course of the concept. We are not in a rush because the group is very solid. The group has a lot of experience and we prefer doing not fast but doing well.

“All of our chocolates are coming from Europe, coming from Belgium. With less sugar. It’s premium. Very tasty. Also you can pick up and choose more than 70 different chocolates one piece at a time. You can build your box. It’s personalized, customized, and the shopping experience is important for us. You have to taste the product, we have to speak about the chocolate and where it is coming from. Regarding the price, we’re in the mid-range, not high end. Very affordable. It’s high quality, affordable price.”

Philippe Jambon, Founder and President of Jeff de Bruges, in an interview on the brand’s website, said : “With passion, and from a very young age running around in the chocolate makers’ workshops, I was able to observe the magical effect of chocolate. Since then, when creating Jeff de Bruges, I have relentlessly imagined a thousand and one ways to turn our stores into unique places, gourmets’ worlds and delicious chocolate could also be accessible and fun to bring pleasure and quality to all.

“In our stores, we mainly try to be in touch with (customers’) needs, to bring back childhood memories of afternoon teas, to create little treats so that everyday can be joyful, in short, to offer recipes which can make for a happier life.”

Canadian Retail News From Around The Web For August 13, 2024

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Retail Insider

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August 12, 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.

Extreme weather affects Canada food prices, supply chain (CityNews/Canadian Press)

In Canada, the beauty retail market is up for grabs (Glossy)

Montreal-based Leyad invests in Prince Albert mall (Western Investor)

No Frills location locks up some PC cheese ‘to address theft’ (Toronto Sun)

Slow restart for businesses affected by Vancouver fire, crane collapse in Dunbar (Global)

Manitoba has beefed up efforts to fight retail theft, retailers hope for more (Postmedia)

Duncan’s Mission Thrift Store celebrates 30 years of service (Cowichan Valley Citizen)