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Canadian Retail News From Around The Web For May 21st, 2024

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.

Loblaw agrees to sign grocery code of conduct — but only if competitors do (CBC)

Canada’s grocery code of conduct: What is it and who has signed on? (National Post)

London Drugs confirms employee info compromised in cyberattack (CBC)

Costco is launching on Uber Eats in Canada this month (Daily Hive)

Shoppers Drug Mart ‘volunteer’ job posting was an error: Loblaw (CBC)

This North Virginian is an IKEA lifer and now the man in charge of the Swedish retailer’s Canadian operations (Globe & Mail / Report on Business)

Amazon to open first-ever robotics fulfillment centre in Calgary (CityNews)

Ford government to explore moving more ServiceOntario outlets into private 3rd-party retailers (CityNews)

Gastown businesses losing millions due to Water Street construction, society says (Global Vancouver)

Saskatoon is losing one of its Giant Tiger discount stores (CTV)

Hello Kitty opens first Canadian café in Vancouver (Global)

Winnipeg police changing anti-theft tactics as retailers warn shoplifters turning more violent (CBC)

Sobeys-owned Thrifty Foods opens new store in White Rock B.C. (Grocery Business)

After industry boom, Quebec distilleries fight for space on liquor store shelves (CBC)

Waterworks Food Hall to Open in Downtown Toronto Next Month, Showcasing 20 Gourmet Vendors in Historic Location [Interview/Photos]

Waterworks Food Hall (Image: Dustin Fuhs)

A gourmet food emporium with over 20 hand-picked vendors serving specialty fare, seasonal offerings and authentic cuisines from around the world is set to open next month in the heart of Toronto.

Officials say the Waterworks Food Hall will be a culinary destination unlike any other in the city located in an industrial heritage building at 499 Richmond St. W. in the Entertainment District.

The Behar Group Realty Inc., Brokerage, which has handled the programming, merchandising and leasing of the unique project, has confirmed the following businesses that will operate in the 55,000-square-foot food hall with others to be announced in the near future:

  • Lee Restaurant
  • Aburi Sushi
  • Harry’s Charbroiled
  • Musoshin Ramen
  • Boxcar Social
  • Grape Witches
  • Civil Works
  • SOBR Market
  • Dave’s Genuine Deli
  • Liu Loqum Atelier
  • Karak Stuffed Naan & Chai
  • The Arepa Republic
  • Scooped By Demetres    
Construction at Waterworks Food Hall (Image: Dustin Fuhs)
Construction at Waterworks Food Hall (Image: Dustin Fuhs)

The project was developed by Woodcliffe Landmark Properties and MOD Developments. The project is a full city block bounded by Adelaide St W, Maud St and Brant St. On the Adelaide frontage is the City of Toronto’s St. Andrew’s Playground Park that was recently overhauled and renovated. There’s also a condo component on the Richmond St side with 290 residential units and a state-of-the-art YMCA of approximately 60,000 square feet, taking the second floor.

Also, Southeast Asian restaurant Lee was relocated from King West to Waterworks – a 6,000-square-foot establishment that is open for business now.

Avi Behar

“Our objective was to curate a unique collection of outstanding and independent food brands that could thrive in a high volume environment while retaining their distinct charm, while also showing off Toronto’s diverse culinary culture,” said Avi Behar, Chairman and Chief Executive Officer and Broker, of The Behar Group.

“For the most part these are independent local brands from the Greater Toronto Area, with a smattering of  national and international concepts. But the focus was to attract best-in-class local brands rather than targeting larger franchise chains. We wanted to create a unique experience based on quality cuisine, efficient operations, and thoughtful design.”

Construction at Waterworks Food Hall (Image: Dustin Fuhs)
Construction at Waterworks Food Hall (Image: Dustin Fuhs)
Rami Kozman

Rami Kozman, Vice President of The Behar Group, said about 20 establishments are expected to open in June, followed by several more as part of an eventual second phase of the project.

“We really wanted it to be a destination. The area is incredibly dense, so you could just put a conventional food court there and I think the population there would still support it but we really wanted it to be something that people would seek out,” he said.

“So we’ve created that unique combination of food categories and independent vendors. It will be something that you really couldn’t experience anywhere else in the city. We really wanted it to be a pin on the map where people will go out of their way to seek it out.”

Construction at Waterworks Food Hall (Image: Dustin Fuhs)
Construction at Waterworks Food Hall (Image: Dustin Fuhs)

Behar said there’s also an open air courtyard attached to the food hall in the heart of the project which is not very visible from the street.

“It’s a European style piazza that rolls in and out of the food hall. We believe that the courtyard is going to be a positively influential part of the experience. Traffic will flow in and out of the food hall from all four directions. One can access the food hall from Richmond St to the north, Maud St to the west, Brant St to the east, and Adelaide St and St. Andrew’s Park via two doors to the south.” he said. 

“I truly believe that residents of Toronto as well as tourists are going to adapt their walking patterns to be able to visit the food hall because of the atmosphere, the quality of vendors, and the overall variety and diversity that Waterworks is going to offer.”

Additional Concept Art from Waterworks Food Hall

Bluenotes Launches ‘Unplug’ Activewear Shop-in-Shops in Stores Across Canada [Interview/Photos]

Unplug by Bluenotes (Image: Bluenotes)

Retailer Bluenotes is launching a new active product line called Unplug in all its stores.

Joshua Graham, VP of Brand Experience with Bluenotes, said the company is introducing this month the concept as a shop-in-shop in all 120 locations across Canada.

“It’s an active wear brand that we’re launching and we’re going to be pushing it to market as exclusively available at Bluenotes,” he said. “It’s going to take up the entire A zone. The front of the women’s side of all of our stores across the country. We could say around 300 square feet of every store. 

Unplug by Bluenotes (Image: Bluenotes)
Joshua Graham

“It will be all women’s active wear and it’s the first time we’re really launching an active wear line at Bluenotes. It’s not only great quality but also affordable. There’s incredible value. The value within this collection is top notch because it’s better quality than we’ve ever had in terms of active wear.”

Unplug by Bluenotes is loungewear for your everyday life – hoodies, sweatshirts and joggers are designed with a relaxed fit and soft fabrics, making them the ultimate pieces for all day comfort. Mix and match options with multiple solid and tie dye combinations will be featured.

“This will be a permanent shop-in-shop within the store going forward,” added Graham. 

blnts.com
Unplug by Bluenotes (Image: Bluenotes)

Francesca Ricciardi, Ladies Merchandise Manager with Bluenotes, said the concept was actually created during COVID where the retailer felt the need to really emphasize connecting with people and unplugging from the internet and social distractions and getting back to movement and athleisure.

Francesca Ricciardi

“That’s kind of why we started and we saw the active wear segment growing in the market and we wanted to ensure we’re capturing a share of great quality active wear but at an affordable price for our customer,” she said.

“So our collection is very focused on movement and that could be any type of movement. That could be the girl at the gym, the girl going to yoga, the girl who wants to put on her comfortable look to just grocery shop. It’s whatever movement speaks to her day lifestyle. We’re removing her from the chaos to allow focus and unplugging from distractions.”

Bluenotes (Image: Bluenotes)

Ricciardi said there will be full commodities of active wear and fleece. Shorts and skirts, leggings and bike shorts, rompers and jump suits, active tops, active bralettes, active jackets. Fleece joggers and fleece hoodies. 

“We will also have accessories like hydration bottles, yoga mats, skipping ropes. A full collection of athleisure,” she said.

A Grocer Code of Conduct Could have Prevented Canada’s Bread Cartel [Op-Ed]

Atlantic Superstore in Halifax (Image: Field Agent Canada)

The proposed grocery code of conduct has sparked debate regarding its efficacy in stabilizing prices in Canada, and justifiably so. The public lacks detailed knowledge about this code, and many fail to recognize the considerable influence that major players like Loblaw and Walmart exert on the food industry. This issue gains relevance against the backdrop of rising food prices and concerns about affordability in Canada, reminiscent of the era marked by the notorious “bread cartel.”

The bread price-fixing scheme, which allegedly persisted from 2001 to 2015, significantly angered Canadians. It only came to light in 2017 when Loblaw and Weston Bakeries—owned by Loblaw at the time—admitted their involvement in this scheme lasting over a decade. Despite the scandal, the story quickly receded from public attention after Loblaw offered a $25 gift card to Canadians. However, the lingering high food prices reignited criticism and distrust toward the company, with the investigation still unresolved after nine years. Nine years!

Remarkably, no executives were prosecuted, although Grupo Bimbo, which acquired Canada Bread from Maple Leaf Foods in 2014, paid a record-setting $50 million fine. Along with Loblaw and Weston Bakeries, Canada Bread also admitted participation in the cartel. Meanwhile, other grocers, including Walmart Canada—who has yet to endorse the code of conduct—remain under investigation. The ongoing legal disputes and accusations of defamation only add to the industry’s tainted image.

Loblaw offered customers $25 gift cards in 2018 to make amends for its part in the bread price-fixing scheme. THE CANADIAN PRESS /Richard Buchan

The root cause of the bread price-fixing scheme appears to be a drive to increase profit margins without resorting to innovation or market expansion. Essentially, these parties chose to manipulate market conditions rather than introduce new products or ideas.

A previous report by the Agri-Food Analytics Lab at Dalhousie University suggested that such a cartel was feasible given the behaviour of food prices, particularly between 2015 and 2017. The scheme would not have been possible without the involvement of Loblaw and Weston Bakeries, who wielded considerable control and power through vertical integration. Canada Bread was coerced into joining the cartel, costing Canadians an estimated billion dollars in extra bread costs over fourteen years. One billion dollars…

While private companies generally operate freely within the law, the involvement of some in unlawful activities has lasted for years. The proposed code of conduct aims to foster innovation, facilitate market entry for new players, and enhance competition in various food categories, including bakery. It would also make coordinating illegal schemes more challenging by increasing oversight.

Moreover, the code would enhance transparency in vertical coordination, as reports detailing company behaviors would be publicly accessible. Though skepticism about the code’s effectiveness is understandable, a deeper understanding of supply chain dynamics reveals that it could significantly reduce the temptation for illegal price fixing and shift the focus toward innovation and competition.

From Barbie to Thomas the Tank Engine: How Toy and Entertainment Brands are Adapting to Generation Alpha [Op-Ed]

A display of Barbie Fashionistas is shown at the Mattel showroom at the North American International Toy Fair in 2015 in New York. (AP Photo/Mark Lennihan)

Growing up, did you play with hyper-sexualized Barbie dolls, boys-only Thomas the Tank Engine trains, or slim, white Disney princesses? If so, you’re not alone, but this is no longer the case for Generation Alpha.

Brands like Mattel, once criticized for promoting unrealistic body standards and gender stereotypes, now portray themselves as feminist and progressive. The recent Barbie movie serves as a prime example of this shift.

Millennial parents are actively seeking out toys, books and movies to educate their children about life and teach them values that align with their own, from body positivity to diversity to accepting others and embracing their sexuality.

At the same time, Millennial parents are quick to criticize brands that are not reflective of their values. Social media campaigns like #CancelDrSeuss, which called attention to racist imagery in the author’s books, are an example of consumers holding brands accountable for their past missteps.

What’s notable about these calls for accountability is that they often stem from a brand’s history of exclusion, such as American Girl’s limited number of dolls with marginalized identities, or the racist depictions of Indigenous people on Disney’s old Splash Mountain ride. These critiques highlight a broader societal shift towards inclusivity and cultural sensitivity.

Revamping products

As marketing researchers, we aimed to understand how entertainment brands are adapting to changing political, cultural and social norms. Our recent study identified three primary ways these brands are evolving: through changes in their products, shifts in hiring practices and increased involvement in their communities.

Some brands have made efforts to revamp their products, ranging from apologizing for past mistakes to removing offensive features or overhauling their market offerings entirely. Apologizing, such as the disclaimer Disney has added to some of its older movies about racist stereotypes, was one of the most common actions brands took.

Other brands, like Warner Bros., have opted to remove problematic traits from their characters. In Space Jam: A New Legacy, the character Lola Bunny was redesigned to not be hypersexualized like she was in the first film. Other brands have discontinued products deemed problematic, as seen when Dr. Seuss Enterprises pulled six books out of circulation.

A Walt Disney Company logo displayed on a large screen inside a building
Disney’s new streaming service, Disney Plus, has added a disclaimer to ‘Dumbo,’ ‘Peter Pan’ and other classics because they depict racist stereotypes, underscoring a challenge media companies face when they resurrect older movies in modern times. (AP Photo/Richard Drew)

Such actions are sometimes carried out concurrently. In, 2014, Mattel issued an apology for a book it published that enforced gender stereotypes about women not being able to code.

Since then, the brand has conducted a range of systematic changes, such as the introduction of a diverse line of dolls of different professions, even those previously masculinized in the market, as well as dolls with different body types and skin tones, and dolls with different disabilities.

Equity, diversity and inclusion

Along with changes in their products, brands have also reformed their workforce towards equity, diversity and inclusion to varying degrees.

For instance, Nintendo has promised to be more transparent in their recruitment process, since women currently occupy only 23.5 per cent of their global managerial positions. This stands in contrast with Mattel, the parent company of Barbie and American Girl, whose board of directors has five women out of a total of 11 members, with 30 per cent belonging to ethnic minority groups.

Disney, in comparison, has dedicated a page on its website to provide transparency regarding the racial and gender diversity of its workplace across the various levels. This signals its commitment to fostering a more inclusive workplace culture.

These efforts come at a time when companies are increasingly recognizing the importance of diversity and inclusion not only as ethical imperatives, but as strategic advantages for long-term success in today’s global marketplace.

Community involvement

The last change entertainment brands have been making in response to social pressures is increasing their involvement within their communities.

Some brands have pursued traditional approaches of donations to different non-profit organizations like American Girl’s support for Save the Children.

Other brands have partnered with non-profit organizations representing people with disabilities to guarantee the inclusiveness of their products. For example, UNO teamed up with the National Federation of the Blind to create a Braille version of the card game.

Thomas and Friends participated in a United Nations sustainability campaign and consulted with UN advisors to ensure the inclusiveness of their new shows.

Other brands started and maintained their own non-profit organizations to push for changes. Sesame Workshop, the organization behind Sesame Street, provides education materials to help children understand sensitive social issues like racism.

Changing to stay relevant

As our understanding of diversity evolves, so too do our expectations of the media and entertainment we consume, especially when it comes to shaping the values and perceptions of young minds.

Consumers wield significant influence in shaping the trajectory of entertainment brands, as evidenced by their demands for more inclusive and socially conscious content. By holding brands accountable for their actions and advocating for change, consumers play a role in driving the evolution towards a more equitable and diverse entertainment landscape.

In today’s ever-evolving socio-cultural climate, entertainment brands must constantly adapt to stay relevant to parents and their children. These actions can be reactively pursued due to socio-cultural pressures, or taken proactively as brands attempt to stay ahead of trends.

Irrespective of the source of change, to contribute sustainably to inclusion, diversity and equality, the changes need to be echoed on multiple fronts: in products, in the workplace and within our communities.


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

By Aya Aboelenien, Assistant Professor of Marketing, HEC Montréal and Chau Minh Nguyen, PhD Candidate in Marketing, HEC Montréal.

Anatomy of a Leader: Dave Minnett, CEO of Edo Japan

Anatomy of a Leader: Dave Minnett, CEO of Edo Japan

When Dave Minnett was going to university in his home town of Hamilton, Ontario, he was taking engineering and commerce.

A summer job working for Molson Breweries while going to school set him on a path of business and marketing in the hospitality industry, becoming President of a number of nationally-known restaurant chains, right up until today as Owner, President and CEO of Edo Japan.

“I was ambitious and always wanted to grow and continue to grow myself,” he said. 

Image: Dave Minnett

Minnett was born and raised in Hamilton. He went to McMaster University for a Bachelor of Engineering & Management then did a Master of Business Administration at the local post-secondary institution.

“Why McMaster? In all transparency, my parents were hard working, humble people and made enough money that I couldn’t get a loan or a grant of any significance but I had to put myself through university and all that. So I kind of stayed close to home and focused on the academic side and that’s about all I could afford,” he said. “It was a great program.

“It’s interesting. Why engineering and management and commerce? Because I really didn’t know (what he wanted to do). I was good at analytics and math and I always had sort of a desire to think about being a business person of some sort of magnitude but I didn’t really have a good idea. So I just wanted to kind of keep as many doors open from an education standpoint. And I thought that was a noble way to do it. 

“In between my first and second year of university, I got hired by Molson Breweries as a summer promotional rep. Driving a van, being part of their sales and marketing efforts in the Niagara Peninsula. I ended up pretty much four summers with them as I was going through school. It was great exposure to the company. As I got into university and I was doing well on the engineering side, the business side had more of a calling for me. I think the combination of those two things I just kind of started thinking more about business and the specifics of marketing and sales.”

Image: Dave Minnett

When he graduated, he started as a sales rep at Molson as he wanted to pursue the business and marketing pathway in his career.

He spent his first 11 years of his career there becoming Vice President of Marketing for Molson Coors Canada. From there, he became Vice President Brand and Marketing Communications for Rogers Communications, followed by a position as Vice President/Business Director – Snackfood Division for Mars. 

Minnett then joined Cara Operations initially as President of Kelsey’s Restaurants followed by President of Swiss Chalet and Harvey’s Restaurants.

Image: Dave Minnett

Prior to joining Edo, he was President of Amica Mature Lifestyles, which worked with luxury senior residences.

Minnett joined Edo in May 2016.

“Food and food and beverage is a daily choice by everybody. It’s meaningful to most people in terms of the decision they make every day whether they cook for themselves, prepare something themselves, or go out and purchase something in any form,” he said.

“I just had a personal affiliation for it. In fact, if you look through everything on my LinkedIn maybe it’s the marketer in me going way back to the beginning with Molson. I’ve always had to have a strong personal attachment to the product or service the company offers. That’s just been me. I need to have a passion, I need to have a belief in it.

“I think it ends up showing up in passion. You get excited more easily because you’re already a believer and it’s always been a staple for me in every choice I’ve made in my career, even in different industries.”

Image: Dave Minnett

Minnett said his leadership style has evolved over the years. 

“You grow with every move you make in every year. I’ve always been a self learner in every case. I’ve been in five different industries. The very first thing I always do is I sort of dive into the business without pre-conceived notions because that’s always a danger,” he said.

“You bring other experiences or old roles with you but I try to park them for three months and I try to keep an open mind. I think you always have one great opportunity to get an objective assessment and have people tell you what they think who are closer to the business or have been in it for some time. So that’s always worked well for me. 

“But if you ask me over the years kind of where I am now, I think first and foremost is I just try to stay curious. Keep asking yourself what if, why does that work and the whole notion of continuous improvement. It’s something I embrace. I think as a leader and someone who is trying to help a business continue to grow or rejuvenate itself or whatever the task at hand is, continuous improvement is something I kind of model my own thinking against.

“Also, have some courage. Give yourself and others around you some permission to fail. You’re going to make a few mistakes but hopefully you have more hits than you do strike outs. But you need to have some courage. And other than the passion thing of having that, it’s infectious if it’s genuine. If you believe and care about it, others do, but more importantly act always with integrity and transparency. If you ask anyone that’s worked alongside me or with me throughout all those stops, I think they would say that. It’s just important in building trust and respect and ultimately alignment with people around you.”

Dave Minnett and Scott Greenberg at Edo Franchise Conference

The job of a leader, and something Minnett has always tried to do, is bring forward a compelling and believable vision for growth and put it in place. And create a pathway forward that people can rally around.

“That’s what I’ve always tried to do and I think I’ve always tried to have kind of a three-year pathway of what we’re working towards and then empower and engage those around you to start living and breathing it as their own and work alongside them to develop the strategies and the tactics to achieve it,” he said.

“You can have a great strategy but my goodness if it’s poor execution you know what the results are going to be. But if you have a decent strategy and you do a great job on execution, you tend to be further ahead. That’s the responsibility to ensure the necessary resources are in place for people to successfully do well and execute.”

Minnett’s life partner is Wendy Derzai, who is VP at Taco Time Canada and Extreme Pita at the MTY Food Group.

“She’s my better half. We’re in the same industry which is interesting. She joined Taco Time after I came here to Edo. There’s lots to love about that. We can chat about business. We have an understanding about what we do each and every day,” he said.

“I love golf. I play golf. I’m trying to play a little bit more of it. I’m not that great but we both enjoy golf, we both enjoy fitness, taking care of ourselves and obviously enjoying friends and family as well. I’m also a huge sports fan . . . We love to travel as well and see different parts of the world if we get the opportunity.”

Other Anatomy of a Leader Profiles

Downtown Banff Welcomes New Mountain Warehouse Store Amidst National Expansion [Photos]

Mountain Warehouse at 127 Banff Ave in Banff Alberta (Image: Mountain Warehouse)

Mountain Warehouse, a leading UK outdoor retailer, continues to expand its Canadian presence with the opening of its latest store in Banff, Alberta.

This new location strengthens the brand’s footprint in Canada, where it already operates 43 stores, making Canada its second-largest market after the UK.

The 6,980 square-foot two-storey store is located at 127 Banff Avenue, right next to the former Hudson’s Bay location which closed in 2023.

Mountain Warehouse at 127 Banff Ave in Banff Alberta (Image: Mountain Warehouse)
Mountain Warehouse at 127 Banff Ave in Banff Alberta (Image: Mountain Warehouse)

Retail Insider has learned that a portion of Hudson’s Bay space on Banff Avenue has been leased to Vancouver-based Arc’teryx, as that brand continues to expand rapidly across Canada. In addition to a renovated Queen Street storefront and new location at CF Toronto Eaton Centre, Arc’teryx also celebrated the grand opening of its Bloor Street location last Saturday.

We have also been told that Vancouver-based athleisure brand lululemon has leased the other part of the HBC, with the existing store getting set to relocate to this new space. The official outfitter of Team Canada for the upcoming Paris 2024 Olympics is set to open its new flagship at the corner of Yonge and Bloor in June.

Mark Neale

Mountain Warehouse opened in Banff with a full lineup of products and will cater to the tourist-centric market, including men’s, women’s, and kids’ apparel, alongside essentials that will enhance the outdoor experience in the National Park.

“We’re thrilled to be opening our new store in Banff, and excited to share our passion for adventure and great value outdoor gear for all the family,” said Mark Neale, CEO and Founder of Mountain Warehouse. “We hope we can help people explore the beautiful lakes and mountains of Canada’s first established and the greatest National Park.”

Founded in 1997, Mountain Warehouse has grown significantly, with 362 stores across eight countries.

Mountain Warehouse at 127 Banff Ave in Banff Alberta (Image: Mountain Warehouse)

The Banff location represents the third Canadian store opening for the company in 2024, following launches in Richmond BC and Kingston, Ontario. The retailer plans to continue its expansion with a new store set to open in Markham, Ontario later this month.

Retail Insider has also learned that the brand recently shuttered its location in West Edmonton Mall, and will be following up with the brand for next steps in the Alberta market.

Banff is seeing a number of retailers express an interest in opening on Banff Avenue as the tourism industry continues to rebound from years of dealing with fallout from the pandemic. This includes seeing brands like Herschel Supply Co, which debuted on Banff Avenue in the summer 2023, opening up a location with significant investment in the in-store customer experience.

Mandated $20/hour Living Wage Could Drive 600,000 Canadian Small Businesses to Closure, Warns CFIB Report [Interview]

Church St & Wellesley St E (Image: Dustin Fuhs)

Mandating a $20/hour living wage across Canada could push over half a million small businesses to the brink of closure, according to a new report by the Canadian Federation of Independent Business (CFIB).

The report, “Affordability, minimum wages, and living wages: Striking a balance for small businesses,” said it would cost the Canadian economy $44.9 billion in extra wages and put almost 600,000 small businesses at risk of becoming unprofitable.

Beatrix Abdul Azeez

“Minimum wage and living wage policies often miss the mark when it comes to truly supporting the most vulnerable workers. Governments are setting these wages with no anchor in economic reality, relying on subjective and unpredictable criteria,” said Beatrix Abdul Azeez, CFIB policy analyst. “Governments should shift away from relying on these blunt tools and instead adopt a new approach to ensure workers can cope with the rising cost of living, while also guaranteeing that small businesses aren’t unfairly burdened.”

Image: CFIB

The provinces that would be hardest hit with a $20/hour living wage would be Ontario with a cost of $16.7 billion and with 200,387 businesses at risk followed by Quebec ($10.2 billion, 141,927 businesses), British Columbia ($4.3 billion, 75,495 businesses) and Alberta ($4.3 billion, 73,181 businesses).

The CFIB said governments need a new approach to address affordability challenges as traditional minimum wage and living wage policies fall short in addressing the root causes of the rising cost of living while simultaneously increasing costs on small businesses.

“Mandatory wage hikes do not actually address the affordability crisis. While they are good intentioned, they actually cause unintended consequences for small businesses,” said Abdul Azeez. “What this report does is draw attention to those consequences and offers alternative solutions that the government can put in place to address the affordability crisis.

The CFIB recommends that governments:

  • Alleviate the impact of rising minimum wages on small businesses by reducing other taxes and payroll costs (such as small business tax rate, CPP, EI, health/education payroll taxes, etc.);
  • Establish a minimum wage setting process that is predictable, transparent, reflective of market conditions, and mindful of economic impacts;
  • Link minimum wage adjustments to private sector wage growth or a predetermined percentage of the median wage;
  • Address the root causes of the affordability crisis by enacting policies to increase the supply of housing, reduce energy taxes, and remove interprovincial and international trade barriers;
  • Provide targeted fiscal support for vulnerable workers through reduced personal income tax rates, increased basic personal amounts, and expanded tax credits.
Affordability, minimum wages, and living wages: Striking a balance for small businesses (CFIB 2024)

“Canada says that small businesses are the backbone of the economy. So mandating the living wage will cause Canada to lose more than 40 per cent of their businesses actually,” said Abdul Azeez. 

“This would be a very high burden for businesses. In fact, we asked our members what was the impact of the last minimum wage hike and for six out of 10 they actually had to increase wages for those earning even above the minimum wage which just goes to show that there’s a cascading effect on wages when minimum wages are increased. 

“Another six out of 10 had to increase the prices of goods and services which just puts more inflationary pressure on the economy. And unfortunately for those small businesses who cannot absorb this extra cost they have to work more. The business owners have to work more and even cut out some investments they’re doing in their business.

“Governments need to reflect on the role they actually play in fueling this crisis. There are many different ways that the government can address this crisis by looking within. They can implement policies that help lower the price and increase the supply of essentials such as housing, food, energy, gas. Things that people require to live a normal and fulfilled life. So the governments just need to look within and address the root causes instead of placing this burden on small businesses.

“The Bank of Canada has been sounding the alarm about Canada being in a productivity emergency. What we see is we’re paying more money for the same level of productivity that we had in past years. Of course, if minimum wages are increasing arbitrarily without reflecting what’s actually going on in the labour markets people may be more inclined to hire more experienced workers. So people that are less experienced may be less likely to get jobs just because the cost of hiring them is so high. So this is one of the unintended consequences as well.”

Notice of Termination (Image: Dustin Fuhs)

The CFIB also said that 31 per cent of small businesses had to cut back on hiring young and unskilled workers, with 25 per cent of them reducing overall employment with a hike in a minimum wage.

“Canada’s cost of living crisis requires a more effective framework: making sure rent, food, and gas prices are affordable and stable while extending support to workers and small businesses through tax reductions,” said Jairo Yunis, CFIB’s director for BC and western economic policy. “This would go a long way in addressing Canada’s affordability shock.”

Stokes Inc. Invests in Store Renovations and New Gift Line to Reinforce Market Presence [Interview]

Image: Stokes

Stokes Inc., Canada’s go-to destination for kitchenware, tableware and homeware needs, has been active again following a restructuring 4 years ago during the pandemic.

The brand, which is 89 years old and still a family business, has been opening new stores, renovating stores, relocating some and recently launched a new gift line as well as investing in its digital presence.

Cesar Morales

Cesar Morales, Marketing and Branding Director for Stokes, said in the past few years the company has launched a new website with “more of an omnichannel view where we offer BOPIS (buy online pick up in store) for our customers.”

“We’ve really worked a lot on our online shopping experience in the past few  years. We also launched a new POS system last fall which will help us improve customer experience in stores,” said Morales. “There are other initiatives coming in the next 12 months as well”

“We’re trying to really become a more experiential retailer to compete with the big brands. Stokes is there to help them be their ‘at home’ chef . . . Stokes is very unique in what we sell.”

Image: Stokes
Image: Stokes

Currently the company has 104 stores across Canada.

Some of the Renovations, Relocations and New Stores in the last 18 months have been:

  • Rue St-Denis (Montreal, QC)
  • Carrefour Angrignon (Montreal, QC)
  • Carrefour de la Rive-Sud (Boucherville, QC)
  • Méga-Centre Charny (Charny, QC)
  • Bramalea City Centre (New – Brampton, ON)
  • Stone Road Mall (New – Guelph, ON)
  • Intercity Shopping Centre (New – Thunder Bay, ON)
  • Southcentre Mall (New – Calgary, AB.)
  • Kingsway Mall (New – Edmonton, AB)
  • Avalon Mall (St-John’s, NFLD)
  • Royalty Crossing (Charlottetown, PEI)

Stokes stores are about 2,500 square feet.

Image: Stokes

Renovations were geared for the aesthetic look of locations with a fresher image, a nicer shopping environment for customers in key locations as well as a better presentation of product within the stores.

Morales said the company has also invested more on the digital side of the business in an effort to increase its social media presence on platforms such as Instagram, Pinterest and TikTok. It’s also working with local chefs and promoting local talent.

Morales said the brand is also working hard to improve its product selection.

“When you come to the store, you’ll always see something new,” he said. “And we are always working on being an important lifestyle/value option for our customers.”

Image: Stokes

Recently, Stokes launched its new Easy to Gift line, where no wrapping is needed. The collection encompasses a variety of items.

“We are thrilled to introduce our new gift line, a demonstration of our enduring commitment to innovation and excellence,” said Morales. “Each product in this collection has been carefully curated to deliver both practical utility and aesthetic charm, making it an ideal choice for any occasion. Our dedication to providing value to our customers remains steadfast, and with gifts starting at only $9.98, we are proud to offer affordable gift giving, especially in times when prices are on the rise.

“We want to also position Stokes as a destination for gifts, not just customers buying for their own needs.”