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Pret A Manger to Expand Across Canada with Standalone Locations Following 2-Year A&W Trial

By
Mario Toneguzzi
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Pret A Manger Toronto at 90 Adelaide St E (Image: Dustin Fuhs)

Fast-food restaurant chain A&W Food Services of Canada is partnering with Pret A Manger on a development plan to expand the Pret brand across Canada.

This comes following the completion of a successful two-year trial period first announced on June 2, 2022. 

“Food Services has exclusive master franchisor rights to Canada for the Pret brand and will introduce Pret’s products to Canadian consumers in a variety of carefully selected formats, beginning with a national roll out of Pret coffee in A&W restaurants this fall,” said A&W in a news release.

Pret A Manger Toronto at 90 Adelaide St E (Image: A&W)

Bruce Winder, Retail Analyst & Author, said the expansion of the Pret brand in Canada is exciting and offers Canadians additional choice.

Bruce Winder

“Based on the assortment of food and beverages offered by Pret I think they have a good chance of success. Their healthy menu hits the sweet spot for consumers looking to eat well on the go,” he said.

“The tie up with A&W is smart as it gives Pret a partner that knows the Canadian food service market well and has been successful over a number of decades. A&W receives a new stream of cash flow and a more diversified offering, appealing to a wider market. 

“This win/win approach has been used extensively as food service brands take on international markets.”

Michael Kehoe, Broker of Record for Fairfield Commercial Real Estate said the announcement of the A&W / Pret A Manger development plan for Canadian expansion is great news on the national food service scene.

Michael Kehoe

“The Pret global vibe will infuse fresh energy into the A&W brand with new menu items and a unique coffee offering. It’s positive news for both brands and I am looking forward to seeing how it is rolled out across the various locational formats,” he said.

Pret A Manger is a sandwich and organic coffee chain commonly referred to as Pret and based in the United Kingdom. The first shop opened in London in 1986 where the company is headquartered today. Pret’s sandwiches, salads and wraps are freshly handmade each day in shop kitchens using quality ingredients and all coffees, teas and hot chocolates are organic. Pret operates more than 650 shops worldwide with more than 9,500 team members in 18 markets (United Kingdom, Ireland, United States, Hong Kong, France, United Arab Emirates, Kuwait, India, Luxembourg, Switzerland, Belgium, Singapore, Germany, Canada, Italy, Spain, Qatar, Greece). 

“The Pret brand was first offered in a trial pop-up format in certain A&W restaurants in 2022, and expanded to a first stand alone Pret location in downtown Toronto in 2024. The development plan calls for Food Services continuing to increase the number of physical locations offering Pret products across Canada over an initial ten-year development term. Sales of Pret products within A&W restaurants in the Royalty Pool will be subject to the 3% royalty paid by Food Services to the Fund,” said A&W.

Pret A Manger Toronto at 90 Adelaide St E (Image: A&W)

A&W Food Services of Canada Inc. is a corporation amalgamated under the laws of Canada and is 100 per cent Canadian owned. A&W is the nation’s second largest hamburger restaurant company with over 1,000 locations coast-to-coast. 

Jorrie Bruffett

In January, Pret opened its first standalone shop in Toronto at 90 Adelaide St.. Since 2022, pop-up shops have introduced Toronto and Vancouver locals to Pret’s organic coffee and freshly made grab-and-go food. This new standalone Pret shop is the next evolution of the beloved brand’s expansion to Canada, said the company at the time.

“This expansion into Canada is a natural next step for Pret globally. We are committed to bringing the Pret brand to more people, wherever they are and after the warm welcome from locals at our Pret pop-ups in Canada, we’re excited to continue expanding our footprint and menu offerings to more Canadians,” said Jorrie Bruffett, President, Pret A Manger North America.

Pret a Manger at A&W Canada on John Street in Toronto (Image: Dustin Fuhs)

In 2022 when Pret opened two pop-ups in Toronto and one in Vancouver, Susan Senecal, Chief Executive Officer of A&W Food Services of Canada, told Retail Insider that Canadians have long been calling for bringing Pret to their community, having experienced the iconic coffee and sandwich shop in London, UK, New York City, and beyond. 

“A&W Canada has admired Pret for a while. It started with a love of its fresh sandwiches and salads and grew from there. We approached the brand and got talking, then realized that we have a lot in common and so do the people in the businesses,” she said.

“Pret’s fresh grab-and-go concept is perfect for guests with busy urban lifestyles – plus Vancouver and Toronto are both large international cities. From there, it was a race to see where we could build our first pop-up the fastest! We have strong franchisee interest in both markets and in this case, Vancouver was ready first. 

“For Pret, it’s an exciting expansion into a new market. Canadians come to A&W for the best tasting burger made with simple, high-quality ingredients and now with Pret we can expand that to fresh-made sandwiches, salads, soups and pastries, prepared right in our kitchens.”

According to officials, Pret was started by two college friends who set out to create the sort of food they craved but couldn’t find anywhere – nutritious, simple and delicious, prepared fresh every morning. They opened their first shop in London in 1986 and the brand has since revolutionized the concept of sandwich making and on-the-go meals, expanding all over the world, said the company. 

Why are Grocery Bills so High in Canada? A New Study Looks at the Science Behind Food Price Reporting [Op-Ed]

By
Retail Insider
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High food prices are a major threat to food security for many Canadians. (Ian Mutto/Flickr), CC BY-SA

Rising food costs are squeezing Canadians around the country. Nearly everyone is feeling the pinch, and it’s not just an inconvenience — high food prices are a major threat to food security for many Canadians. Understanding why food prices are so high and why they are changing is critical to the well-being of our society.

Unfortunately, consensus on why food price are so high is in short supply. Explanations given in reports like Canada’s Food Price Report and the news media range widely, from the war in Ukraine to supply chain issues to the carbon tax.

Each year it seems the key drivers change, and if the growing consumer boycott of Loblaw’s is any indication, consumers want better answers.

So, we completed a rigorous analysis of the most prominent reports that shape the narratives around food prices in Canada, including twelve years of Canada’s Food Price Reports and 39 reports from Statistics Canada. Our findings, which are peer reviewed and soon to be published in Canadian Food Studies, were both insightful and concerning.

Lacking scientific rigour

Our analysis found that most claims about food prices in these reports lack scientific rigour. Nearly two-thirds of the explanations for price changes given are not backed by evidence. Arguments about the causes of food inflation are frequently incomplete, neglecting to connect the dots between cause and effect.

For instance, reports may identify the influence of unfavourable weather, climate change or changing retail demand, but fail to elaborate how these translate into actual price increases at the till.

A woman uses a calculator in front of the dairy aisle in a grocery store
Understanding why food prices are so high and why they are changing is critical to the well-being of our society. THE CANADIAN PRESS/Christinne Muschi

British philosopher Stephen E. Toulmin published a simple approach for evaluating the quality of scientific arguments in 1958. In a nutshell, for a scientific argument to be complete, it needs to have three components: a claim, verifiable observations or data that provide grounds for that claim, and an explicit theory or assumption that links the data logically to the claim.

For scientific arguments to be rigorous, they should also back up the strength of their assumptions and qualify their claims by exploring reasonable counterarguments. However, most of the arguments in these reports fall short of this, failing even to provide basic evidence in support of their claims.

These reports are not scientific publications, but rather qualify as “grey literature” — information produced outside traditional academic publishing channels.

Nevertheless, they are published under the logos of academic institutions and government agencies. Given their prominence in Canadian media and policy, we believe it is important for the public to know that the arguments presented in these reports do not live up to scientific standards.

Overlooking key issues

While the reports do identify potential drivers of food prices, they have some noteworthy gaps.

While extreme weather events and climate change are sometimes offered as abstract reasons for food price increases, some major environmental issues, like biodiversity loss and collapsing fish stocks, do not appear in reports, despite a widespread understanding that they will impact food price and availability.

A starburst diagram showing that 58 per cent of the drivers identified in food price reports are so-called market factors, while price manipulation and climate change are rarely invoked, and other issues like biodiversity loss are absent.
A breakdown of the drivers identified in food price reporting over the last 12 years. (Pentz et al., Forthcoming), Author provided (no reuse)

These reports also rarely consider the decisions that grocers and other private sector entities have on food prices. Increased consolidation and concentration in the grocery sector is a structural issue that deserves scrutiny.

The bread price-fixing scandal a few years ago showed how a lack of competition enables price manipulation and hurts consumers. Canada’s Competition Bureau recently announced they are launching an investigation into the owners of Loblaws and Sobeys for alleged anti-competitive conduct.

In the United States, there is also strong evidence that the private sector has been profiteering on supply chain issues and inflation. The U.S. Federal Trade Commission likewise recently found that big grocers used the pandemic as a smokescreen to pad their profits at the public’s expense.

With grocer profits expanding in Canada, too, it is fair to ask tough questions about how much grocers’ decisions are contributing to the pain at the till.

In our analysis, only three per cent of the over 200 explanations for food price changes point to grocer actions or other agency in the private sector as driving price increases. This reflects a tendency to portray food prices as erratic and overwhelmingly opaque.

Other issues — such as the over-reliance on fossil fuels across the supply chain — also go unmentioned.

A new approach is needed

Without rigorous and transparent analysis, we’re left with an incomplete picture of why food is so expensive and what we can do about it.

What we need is a new approach. Food is a human right, but a unique one in that we rely on the private sector to provision it. We should expect a higher standard than with other consumer goods, and the private sector has arguably not earned the benefit of the doubt given their history of price fixing.

One positive step towards generating trustworthy evidence about food prices would be to incorporate transparency measures into the code of conduct the Canadian government is developing with grocers. This could include third-party audits, open data-sharing and a clear breakdown of what’s driving price changes — from the farm to the shelf.

Peer review of research is a critical aspect of responsible science. In our paper, we highlight the process that the Canadian Science Advisory Secretariat provides for federal fisheries science, as one possible model for government-based food price reports.

For something as essential as food, Canadians deserve the full story. For decades, policy and markets have been designed to keep food cheap, but at the expense of workers and the environment.

If food prices are rising because they are starting to reflect the true social and ecological costs of production, we will need to enter a broader conversation about economic and livelihood reform to ensure that everyone can afford food. But without a clear picture of the actual drivers, we lack the necessary information for developing policies that protect the rights and well-being of Canadians.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Dr. Brian Pentz, now post-doctoral researcher at The Nature Conservancy, was lead author on the study and contributed to the writing of this article.

By Philip A Loring, Adjunct Associate Professor, University of Guelph and Ryan M. Katz-Rosene, Associate Professor, School of Political Studies, L’Université d’Ottawa/University of Ottawa.

German Outdoor Retailer Wellensteyn to Enter Canada and Open Stores with 5 Year Expansion Plan [Interviews]

By
Mario Toneguzzi
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Wellensteyn at Wrocław Fashion Outlet (Image: Wellensteyn)

Wellensteyn, an iconic outdoor coat and accessory company that caters to fashion and function, is expanding into Canada with at least 20 stores to be launched in the next five years.

Tony Flanz, President of Montreal-based Think Retail, which consults and represents international, national, and regional retail chains, and is helping the brand with its real estate needs, said a 2,145-square-foot store will open in mid-August at the Outlet Collection at Niagara. 

Tony Flanz

“Outlet Collection at Niagara is the perfect fit for this unique high-quality brand,” he said.

“The company’s origins date back to 1940s Germany when Adolf Wuttke, a welding rod dealer who made instruments used to help explore the depths of the North Sea, set out to create next-level outerwear for people working on the water and in the shipyards. His parkas were made with unique waxed sailcloth that could withstand the elements, while keeping workers safe and warm.  

“In the 1990s, the family-run business branched out, moving beyond workwear and protective clothing, to offer a new generation of outdoor enthusiasts a selection of well-designed jackets for all seasons. Today, Wellensteyn embodies the same dedication to quality, with an elevated focus on style. Catering to men, women and children with its jackets, as well as shoes, hats, scarves, belts, sunglasses, watches and other accessories, Wellensteyn is a strong global brand with wide appeal. Well established in Europe and available at select retailers in North America, the brand is poised for expansion across Canada.”

Niagara Outlet Collection (Image: Ivanhoe Cambridge)

Flanz said the plan is to open at least 20 stores here, with the initial focus on Ontario, followed by British Columbia and Alberta. Locations of about 2,000 square feet in outlet centres are of prime interest.

He said the Niagara outdoor shopping destination features an array of more than 100 brand name fashion and lifestyle retailers, including Aritzia, Nike Factory Store, Kate Spade New York, Brooks Brothers Factory Store, Coach, Michael Kors and Tommy Hilfiger.

Wellensteyn in Kassel (Image: Wellensteyn)

Dr. Gyorgy Szabolcs Gonda, Director and Owner of Welligo Inc., the importer and distributor of Wellensteyn jackets and accessories in Canada, imports and sells Wellensteyn in several countries: Hungary, Slovakia, Czech Republic, Romania, Canada.

He said the brand is the primary authentic workwear jackets for both women and men with tested and approved functionality, innovative fabrics and excellent quality for all purposes.

“This company specializes in jackets and it is a leading jacket brand in Europe,” said Gonda.

“Its superb quality and durability enables these jackets to be also used as workwear. We sell many jackets to companies in B2B which proves this point. These companies want to make their employees happy, protected and look great in Wellensteyn . . .  even if the jackets are used every day or under harsh circumstances.

“Probably this is the key to Wellensteyn’s success, where we’ve found a gap in the market. Wellensteyn offers outstanding industrial quality, therefore, these jackets can be used as workwear too. In addition to that, these models and colours offer a unique, well-designed and very fashionable look on the streets, and customers like this match.

“Maybe at first glance this doesn’t seem to be so important and interesting but this is actually a big deal: Wellensteyn jackets can be cleaned in normal washing machines at home. The materials, the layers in it, will stay in place and it will look just the same after washing which means that you will be able to use it for a very long period of time. This is absolutely not fast fashion. Windproof, waterproof, water repellent materials, breathing membrane layers are used in most of the Wellensteyn jackets.”

Image: Wellensteyn

Gonda said Adolf Wuttke launched the production of mechanical instruments that were used to plunge into the depths of the North Sea about 70 years ago. These instruments, i.e. the “Kastengreifer” (for lifting seabed sand) or “Planktonhai” (for catching plankton from the sea) are still in use worldwide.

“Ever since, Mr. Wuttke’s customers – the German shipyard industry – needed sturdy, resistant, and long lasting workwear. So he created a full line of stylish jackets that incorporated heavy, seaworthy and waxed sailcloth that was tailor-made, besides the so-called “Deutschleder” (German Leather),” he said.

“Out of this design, the demand was created for functional and protective clothing, which qualified for offshore work in rough circumstances and by the stormy sea.

“After these decades of expertise in performance, ergonomics and requirements for tough and practical work wear, Mr. Wuttke’s son, Thomas took over the company in 1986 and extended it to create a new generation of functional outerwear.”

Gonda said there are more than 100 mono label stores across Europe, many premium retailer chains and department stores (like Peek & Cloppenburg) are selling Wellensteyn in Germany, Austria, the Netherlands, Switzerland, Italy, Denmark, Hungary etc. 

“Wellensteyn would like to expand overseas. We are successful with our new market expansions and Canada was on our list of course. Last but not least, the Canadian weather conditions mean even higher potential compared to southern countries in Europe, like Italy,” he said.

Canadian Retail News From Around The Web For May 27th, 2024

By
Retail Insider
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Canadian Retail News From Around The Web

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 several days.

Canada March retail sales down 0.2% on furniture; seen up 0.7% in April (Reuters)

Loblaws, Sobeys owners under investigation by Competition Bureau for alleged anti-competitive conduct (CBC)

RONA announces more store conversions (Hardlines)

Canada’s milk supply still clear of bird flu amid growing problem in U.S. (Global)

Restaurants Canada says price increases coming to B.C. chicken ‘unsustainable’ (CityNews)

Businesses at Westmount Shopping Centre served end of tenancy notice (Edmonton Journal)

Alcohol sales coming to Ontario corner stores by September, will pay $225m to Beer Store for early rollout (CBC)

Dollarama, Costco, Metro and other companies face class-action over recyclable bags in Quebec (Toronto Star)

Opinion: London Drugs’ response to cyberattack a case study in crisis management (BIV)

Exclusive: Canadian liquor retailer LCBO upgrades e-commerce with AI (Chain Store Age)

SHEIN clothing sale is happening for a short period of time in Mississauga (InSauga)

Calgary halal business allowed to reopen (CTV)

Vancouver shopper’s video goes viral for showing underweight bag of frozen No Name veggies (Yahoo)

Burnaby liquor store offers below government prices (Burnaby Now)

Wehwehneh Bahgahkinahgohn development in former downtown Winnipeg Bay building gets another $31M from feds (CBC)

Mourning ‘Mr. Gananoque,’ a small-town fixture for nearly 100 years (CBC)

Declining Sales and Footfall Plague Canadian Retailers [J.C. Williams Group StatCan Analysis]

By
Retail Insider
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Montreal Eaton Centre (Image: Craig Patterson)

By J.C. Williams Group

Canadian retail sales slumped in March with All Stores declining -1.7% YOY, with discretionary categories (All Stores Less Automotive, Food, and Pharmacies) down -2.5% YOY. March experienced two fewer shopping days (Good Friday and Easter Monday) in 2024 compared to 2023, but this is only a small factor as high levels of inflation continue.

Retail in general is seeing fluctuating footfall in Canada. Shopping centres are down approximately -6.3%, whereas BIAs are up by 10.9% at the end of March 2024, as compared to 2023. While this does not immediately correlate to sales, this is a telling factor that can predict the prevalence of browsing and potential future purchases.

Grocery prices and the associated large grocers were top of mind in March, and remain top of mind at the time of writing. Grocery prices are up over 20% compared to this time in 2021 and consumers have responded in multiple ways, including moving to lower cost options and full boycotts. A partial result of these changes in consumer behaviour have resulted in continued increased revenue for Specialty Food Stores.

  • In March, the category’s revenue is up 10.3% YOY. January and February also saw increased revenues, up 6.6% YOY and 14.4% YOY respectively.
  • Canadians are more willing to shop with small grocery stores. In a study by Wagepoint, findings included: 58% of consumers are willing to pay more for items/services in order to support a local grocery store, with 78% wishing they could do some or all of their shopping at a small business. A large barrier for consumers is access. There are insufficient small grocery options in their area, or they are not aware of them.
RONA+ Charlemagne (Image: RONA)

Building Material and Garden Equipment stores were down -4.7% YOY in March, echoing what we are hearing from the industry. Both Lowes and Home Depot both reported decreased sales in Q1 2024, which had been predicted; Lowes was down -4.4% YOY and Home Depot -2.3% YOY.

  • Lowes, specifically, experienced decreases in both average transaction size as well as number of transactions. Overall, these decreases are as a result of fewer discretionary sales (patio furniture, barbecues, etc.), as well as decreases in consumers taking on large scale projects, such as remodels.
  • Home Depot, whose sales were also down, may not have had such a large decrease as a result of a higher contractor sales percentage. Contractors make up around 20-25% of Lowe’s sales, where as they make up about half of Home Depot’s.

With summer fully underway at the time of writing, and with the announcement of indefinite boycotts, JCWG is thinking about:

  • When will boycotts against large grocery chains end? Will there be a noticeable impact on sales?
  • What categories will be the most affected as a result of upcoming mortgage renewals?
  • Will shopping centres start to gain further traffic throughout the summer and into the fall? Are BIAs going to continue to outpace them?
  • How are YOU preparing summer 2024?

Thank you J.C. Williams Group for this report.

US-Based Second-Hand Electronics Retailer ‘PayMore’ to Enter Canada with Rapid Store Expansion [Interview]

By
Mario Toneguzzi
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Image: PayMore

Second-hand electronics retailer PayMore, based in the United States, is expanding its retail footprint into Canada.

Stephen Preuss, Co-Founder and CEO of PayMore Stores, said the brand’s goal is to grow to as many communities as it can “because as long as technology is around, people will need to buy, sell, trade, and recycle their devices.”

Stephen Preuss

PayMore was founded in Massapequa, New York to obtain and repurpose old electronics and recirculate them back into the marketplace instead of having them pile up in landfills.

“We are a buy, sell, trade, recycle electronics retail store. We started this path in 2004 my partner and I . . . We built our business on technology and data. We just happen to sell electronics in a retail format. We ran our business in Long Island and then we started franchising in 2020. We opened up our second location at that point in time,” said Preuss.

Image: PayMore

“To date now, we have 36 stores open in 16 different states. We have another 55 being opened this year. So by the end of the year we should have 100 locations open in 29 different states. And we have contracted now including stores that we have open about 270 that are opening in the United States and we are now opening several in Canada as well.

“It’s a retail format where people come in. They have optionality in electronics which is not available anywhere else besides us. It got to the point where people were looking for different options outside of going to an Apple store and paying $3000 for a phone or going to Best Buy and having to buy something new off the shelf. We have really opened up the channels of optionality in the second-hand electronics space and we’ve also, one of our big missions when we started this, was to really revolutionize the second-hand industry as a whole which is highly stigmatized. When you think of second-hand industry you think of a pawn shop. And that’s not what we are. We are a clean, regimented, franchise business where people are comfortable coming in in better shopping centres. We have beautiful stores and our technology allows our customers that are interfacing with our staff to be highly educated on what they can pay for that item and we believe in giving a fair deal so customers come back. Overall, we’ve really changed the concept, the feel and the execution of the second-hand store.”

He said customers return 70 per cent of the time which is highly extraordinary compared to other second-hand stores that customers only come back about seven per cent of the time.

Preuss said Canada is the brand’s first international exposure. 

“The Canadian market is very similar to the U.S. market. But not only that, there is the understanding of what a second-hand market is there. As well, the retail and the real estate is very similar. And also there’s not a lot of differences between the technology stack that we use in the U.S. as opposed to some of the other places that we’re looking into internationally,” he said.

“So it was a natural progression for us. Everywhere we put one of our stores in the U.S. we’ve become the highest grossing second-hand store in that specific market. Now we have so much exposure in the U.S. it was a natural progression for us in Canada. It really took a long time. It took about a year and a half to find the right first mover for us in Canada which we’ve found with our franchisee that’s doing five stores in the Ontario area.”

Image: PayMore

Preuss said the first store will open in August with a second store to follow before the end of the year in the Greater Toronto Area.

“We have mapped out the entirety of Canada. Real estate is my background. So we’ve worked with some local folks there to map it out. We’re looking at 120 stores in Canada over the next 10 years, coast to coast,” he said. 

Image: PayMore

Spearheading this deal for the brand is Ontario native Richard Price, who brings over 20 years of experience as a director of sales, selling and managing teams from SMB to enterprise in multiple successful SaaS Businesses. 

“I wanted more freedom in my career and as a first-time entrepreneur, I also wanted to see a proven concept that will help each community that it’s a part of,” said Price. “The market for buying and selling electronic devices is huge not only in Canada, but around the world. Seeing PayMore’s growth and success in the United States, on top of its mission to pay people for their unused tech and to safely recycle unwanted tech, made this the perfect opportunity for us and this market.”

Canada’s Competition Bureau Launches Investigation into Loblaws and Sobeys [Op-Ed]

By
Sylvain Charlebois
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Photo: Loblaw.ca

The recent move by Canada’s Competition Bureau to investigate the parent companies of grocery giants Loblaws and Sobeys marks a significant step in addressing anticompetitive behavior in the retail grocery sector. This investigation, initiated on March 1, focuses on the alleged use of property controls by these firms, which purportedly restrict competition through their lease agreements and control over land vacancies. With these two companies holding a combined market share of over 50% in the Canadian food retailing market, the potential implications are substantial.

According to Federal Court records, the Commissioner of Competition’s inquiry centers on suspicions that Loblaws and Sobeys are using their property controls to limit the activities of potential tenants, thereby reducing competition. This is particularly concerning in rural areas where communities often have limited grocery options, making them especially vulnerable to such practices. The allegations suggest that these companies are not only controlling who can lease space in shopping centers but also holding onto vacant lands to prevent competitors from entering the market.

Sobeys’ parent company has responded by calling the inquiry “unlawful,” reflecting the tension and defensiveness within the industry. However, many observers are not surprised by these developments, as the grocery sector has long been criticized for its market control tactics. The investigation underscores a broader issue: the control of market access and the strategic importance of location in the grocery business. These companies have mastered the art of location optimization, ensuring their dominance by strategically positioning and protecting their stores.

The public’s frustration with the grocery industry has been building, partly due to the long-running bread price-fixing scandal that has plagued both the industry and the Competition Bureau. After nine years, the investigation remains unresolved, eroding public trust. The current investigation into Loblaws and Sobeys is a crucial opportunity for the Bureau to demonstrate its commitment to protecting consumers and ensuring fair competition.

Within the grocery industry, there is a prevailing belief among executives that their practices are justified, driven by the need to maximize profits and serve customers. These practices have become normalized over decades, making it challenging to shift industry culture. However, the current food security crisis in Canada, highlighted by a poor rating from Food Banks Canada, has made the public less tolerant of actions that limit their access to affordable food options.

The Competition Bureau’s role is akin to law enforcement in ensuring market fairness. Just as speed limits and police patrols keep roads safe, the Bureau’s oversight is essential to prevent anticompetitive practices in the grocery sector. For the Bureau to regain public trust, it must complete this investigation swiftly and transparently, with clear recommendations made public. This will signal to both the industry and consumers that the Bureau is actively policing the market.

While the public needs to be educated about the complexities of the food industry, it is equally crucial for grocers to recognize that they are dealing with a more informed and less tolerant consumer base. The Competition Bureau’s investigation is a necessary step in aligning industry practices with public expectations and ensuring a fair and competitive market. This shift begins with robust oversight and decisive action from the Bureau.

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

By
Retail Insider
-
Canadian Retail News From Around The Web

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.

Clarins leaving Canada’s Hudson’s Bay stores (CTV)

Hackers release corporate data stolen from London Drugs (CBC)

Home Hardware’s lead retail operations exec departs (Hardlines)

Seafood chain Red Lobster will ask Canadian court to enforce U.S. bankruptcy in Canada (CBC)

Is Canada Goose (GOOS) Outperforming Other Retail-Wholesale Stocks This Year? (Yahoo)

HBC, Kamloops workers come to deal, end five-month strike (BIV)

Flagship Retail Space Available for Lease at at 777 Ste-Catherine St. W. in Downtown Montreal

By
Retail Insider
-
777 Ste-Catherine Street West in Montreal. Photo supplied

A premier flagship retail space at the bustling intersection of Sainte-Catherine Street West and McGill College Avenue in downtown Montreal is available for lease. Located at 777 Sainte-Catherine Street West, the retail opportunity is ideal for retailers and other businesses looking to establish a high-profile presence in one of the city’s most coveted locations.

Often dubbed Montreal’s “Champs Élysées,” McGill College Avenue provides a distinguished setting for the retail space. The building’s architecture combines classic elements with contemporary design, featuring intricately detailed moldings and ornate light fixtures throughout its grand interior. This striking aesthetic creates an appealing atmosphere for retailers seeking a unique and luxurious environment for their operations, with the opportunity to modify the space to make it appear more contemporary. McGill College Avenue is seeing updates that will turn it into a pedestrian promenade.

Main floor. Photo: Darwin Doleyres

Spanning 26,463 square feet across five levels, the space at 777 Sainte-Catherine Street West offers ample room for a variety of retail configurations. The ground floor boasts a substantial 30-foot ceiling and 5,453 square feet of open retail space, perfect for large displays or flagship operations. The mezzanine provides 3,946 square feet, while the third floor and lower levels add additional flexibility for various retail concepts. With a frontage of 54 feet on Sainte-Catherine Street West and 120 feet on McGill College Avenue, this retail space ensures high visibility and excellent foot traffic.

Looking from the mezzanine level to the main floor. Photo: Darwin Doleyres

Its central location near major landmarks like the Montreal Eaton Centre and McGill University makes the retail space an attractive proposition for both businesses and customers. Additionally, its proximity to Peel and McGill metro stations, both within a five-minute walk, offers convenient public transportation access for staff and visitors.

Looking from the mezzanine level to the main floor. Photo: Darwin Doleyres

As part of Phase 1 of the Sainte-Catherine Street West Revitalization Project, the space is positioned in a key area experiencing significant growth and investment. Leasing the retail space provides a unique opportunity to be at the forefront of downtown Montreal’s transformation, with the potential to attract both local residents and tourists.

One can take a virtual walk through the space via a Matterport tour.

Anyone interested in leasing 777 Sainte-Catherine Street West can contact:

Jordan Karp, EVP, Savills Canada: 1-416-922-2223, jkarp@savills.ca

Ryan Morein, SVP, Savills Canada: 1-416-922-2224, rmorein@savills.ca

Manon Parisien, SVP/COO, Aurora Realty Consultants: 1-514-627-0321, mparisien@auroraconsultants.com

Anatomy of a Leader: Sarah Segal, CEO of DAVIDsTEA

By
Mario Toneguzzi
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Anatomy of a Leader: Sarah Segal, CEO of DAVIDsTEA

The entrepreneurial spirit has been in Sarah Segal’s blood since she was a child.

Today, the well-known Canadian businesswoman is CEO of DAVIDsTEA since December 2020 and President of Squish Candy since January 2014.

Segal was born and raised in Montreal. She has a B.A. in Environmental Health from McGill University. Her junior year was spent at the London School of Economics. 

She took a job out of university and went to China, working with the Junior Professional Consultants Program with the Canadian government. At the time, Segal worked within the United Nations organization. While working there, her boss recommended she do a Masters at Oxford University and she ended up doing a Masters in Water Science, Policy and Management.

“I had the pleasure of growing up in a retail family, both my grandparents’ side and my parents as well. We’re very entrepreneurial in our own way. My parents directly ran a couple of businesses. So from a very young age, my earliest job was working in my mom’s toy store which was a beloved toy store in Westmount here in Montreal. It was called Oink Oink,” said Segal. “She became known for free gift wrapping.”

Image: Sarah Segal

The store was open throughout Segal’s life growing up. It closed about a year or so ago.

“I really loved it. I grew up in a store. You learn a lot being around customers. I really loved wrapping. I loved gifting. I loved helping people find the perfect gift. I loved the full environment of that store which was pure joy. Now I have kids and I understand the whole toy dynamic,” she said.

“You learned through osmosis. Like merchandising and display. I would get to do the window. And I learned to work with customers and work with cash at a very young age. I don’t think you study that necessarily.”

As she grew up, her father founded Le Chateau and her mother helped run that retailer since 1959. 

Segal also worked in many clothing stores. 

“That was really my exposure to customers and customer service and helping customers. It was a very enjoyable line of work for me. It just felt like something you did. I gravitated towards it.

“I love talking to people. At the end of the day, I feel maybe shy in other situations but when I’m working in a retail environment I’m not shy. And I think as I grew older and more self aware I realized what kind of energy it gives you.”

Image: Sarah Segal

After graduating with her Masters, Segal joined DAVIDsTEA in 2010 in the area of product development. She became CEO in December 2020.

“I had this desire to do a similar concept as DAVIDsTEA with candy. And I saw this opportunity at a certain point. I remember wanting the vibe of opening stores and trying that entrepreneurial spirit and just so excited about the candy space and discovering this world of gummy bears,” she said of how Squish was created.

When Segal looks back at her family background and its entrepreneurial spirit, she said she learned that it takes hard work.

“I really do think (her parents) led by example. They worked 24/7. I don’t know if that’s a generational thing or a cultural thing. I’m sure a lot of people can speak to it in their own ways but for my parents they worked 24/7. I never really saw them turn off. Even on our family vacations, they would be on buying trips. It was their whole life,” said Segal. “I guess I just knew that from a very young age that it’s very involved.”

Segal said it’s definitely a time of change and evolution today in the retail industry.

“But I think retail has been evolving for quite a number of years. There are some things that haven’t changed. I still think that people want to connect in a very real way with the brand, have discussions, learn about the products, have an experience. We’re seeing such great energy in our stores. It’s still really relevant to have that human connection and to smell, touch, taste,” she said.

“I think the things that are changing are how many stores you need to have that impact, how far people are willing to displace or go to have an experience. That’s been changing for 10 plus years and kind of accelerated at this point. So I think being very, very thoughtful of where you go and how you reach your customers now with all the data we have with online sales and everything you can be very thoughtful about where you pop up or where you open. It can change and has changed.

“But I don’t think stores and in person activation is declining in any way. It’s even more relevant as a complement to a digital experience.”

Image: DAVIDsTEA

Segal said she tries to lead by example. She’s very involved in the business.

“I believe authenticity and trust is something that you build over time. I was lucky enough to come into an organization where a lot of people already knew me. That really helped in terms of me getting feedback, having that trust and open communication,” said Segal. “I believe that’s what allowed us to survive through such a big transition. It’s been our ability to communicate openly in our organization. I’ve had two children since I’ve been in this role. I’ve been a working mom. I didn’t even take a mat leave. There’s other parents in the company who were very collaborative.

“It’s a very honest and open communication and it is something that prioritizes flexibility. I hope the team feels they can talk to me about the real life struggles they face because I live it every day and share with them that you can be fully committed and work a lot but also not at the expense of your family. That’s something we’re all aligned on internally.”

Her children are two and five years old. How does she manage to juggle that, being a parent of young children and running a company?

“A lot of support. I have support here at the office. So much understanding . . . I think everyone understands when I go home for dinner. I’m going to cook for my kids, I’m going to drop them off for school. If my daughter is with me, they know why. I think it’s really normalizing those two roles. I’m not alone. Everybody aligns here and has the same situation and appreciates my values around that.”

Beyond family time and work, Segal loves playing tennis. She’s a long-time tennis lover. 

“I’m very active. I played a lot of sports in the past. Team sports don’t translate into adult life so easily because of the time restrictions . . . So tennis is what I’ve been able to keep going. And I walk a lot. It’s my life hack, my pandemic habit, that continues. It’s something I can do while pushing a kid or having them on my back,” she said.

“That’s the one thing I’ve been able to maintain that doesn’t have a schedule. With work and kids, I’m at the stage where scheduling is almost impossible.

“I’ll walk in the rain or the snow, whatever. I’m very Montrealer like that. My other hack I started a few years ago was restorative yoga . . . Twenty minutes at night changed my whole alignment. It’s so enjoyable . . . It’s been a way for me to process the day and when you’re with so many people in the day, that time has been a big win for me.”

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