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.
Entrance to Gucci's new concession at Holt Renfrew in Calgary. Photo supplied
Italian luxury brand Gucci has unveiled a large and impressive ‘world of’ concession at Holt Renfrew’s downtown Calgary store. The concession is located on the main floor of Holts, and houses a full range of fashions for women and men from the brand which is investing heavily into Canada with new and expanded stores.
The Calgary Holts Gucci concession spans about 4,000 square feet, and replaces areas formerly occupied by Burberry and Miu Miu. The bright Gucci space houses the brand’s range of ready-to-wear for men and women as well as bags, accessories, footwear and other categories. The “all in one space” concept is also found in other Holts stores in Canada, and is rarely seen in larger stores in the United States.
The new Calgary Gucci features a unique design, with light wood walls featuring shelving for product. Brown herringbone flooring is criss-crossed with a white checkerboard design. Plush carpeting contrasts with silver metal fixtures. The boutique features a white marble facade similar to other newer Gucci stores worldwide.
Holt Renfrew in Calgary. Photo: Entuitive
Women’s ready to wear at the new Gucci concession at Holt Renfrew Calgary. Photo: Gucci
Gucci had a presence at Holts in Calgary in separate boutique areas that have since been amalgamated into the new main floor ‘world of’ concession. That included a smaller main floor hand bag concession, a second floor women’s clothing concession, and a third floor men’s concession.
There were rumours last year that Gucci was in talks to open at Calgary’s CF Chinook Centre. It’s less likely that the brand would open in the mall now that Gucci has such an expansive presence downtown. That hasn’t stopped brands from moving to CF Chinook in the past however — in the fall of 2018 Louis Vuitton exited the downtown Holts and opened a large store in the mall. Tiffany & Co. also operates both downtown at Holts as well as at CF Chinook Centre.
Men’s at the new Gucci concession at Holt Renfrew Calgary. Photo: Gucci
Despite the success of CF Chinook Centre, Holt Renfrew has remained in downtown Calgary. Retail Insider reported in February of 2023 that Holts had renewed its lease at The CORE, a downtown shopping centre spanning several blocks. CF Chinook Centre began adding luxury retailers such as Tiffany & Co. and Burberry about a decade ago, then scoring Nordstrom and Saks Fifth Avenue as anchors. Nordstrom has since exited Canada, and Saks in Calgary appears to be on its last legs. One wonders if Holt Renfrew is second-guessing its decision to renew its lease downtown, given the opportunity to be in the highly productive CF Chinook Centre which now has a vacant 140,000 square foot box.
Men’s accessories at the new Gucci concession at Holt Renfrew Calgary. Photo: Gucci
The Calgary Gucci concession is the second store in Alberta for the brand. Gucci opened a 5,000 square foot store at West Edmonton Mall in Edmonton in the spring of 2021. The store is said to be exceeding expectations in terms of sales. The Edmonton store does not carry ready-to-wear, however, despite its vast size. Footwear and handbags sell very well in Edmonton, and the brand could bring in more clothing in the future.
Gucci has been investing heavily into the Canadian market since just before the pandemic. In the summer of 2019, Gucci opened an impressive 6,000 square foot concession at Holts’ Yorkdale location in Toronto, functioning like a standalone Gucci storefront save for an entrance into Holt Renfrew (while paying rent to Holts). Gucci also renovated its 6,000 square foot store at 130 Bloor Street in downtown Toronto in 2020. During the pandemic Gucci opened three concessions as part of the new Holt Renfrew Ogilvy (bags/women’s/men’s) in Montreal. Gucci recently overhauled and expanded its Vancouver location at the Fairmont Hotel Vancouver, bringing it to 6,200 square feet on one retail level.
Gucci had a handbag concession at Nordstrom CF Toronto Eaton Centre until last spring, when it was forced to close as part of Nordstrom’s exit from Canada. The brand also has a boutique concession at Holt Renfrew Square One in Mississauga for Gucci bags and footwear.
Historically, Gucci has had a presence in Canada for decades in Holt Renfrew. Between 1985 and 1987 when Gucci had a lower price-point, the brand had a bag and accessory boutique in the Hudson’s Bay flagship store in downtown Vancouver at 674 Granville Street as well as at Bay stores in Calgary, Ottawa, Montreal, and at then-HBC-owned Simpsons in downtown Toronto.
Gucci, owned by Kering Group, is one of the world’s leading luxury brands with billions of dollars in annual sales. Gucci was founded in 1921 and is now part of the Kering conglomerate of luxury brands. Gucci operates about 500 stores globally. In the United States, Gucci operates a network of standalone stores as well as boutique spaces in large-format/department stores such as Neiman Marcus, Saks Fifth Avenue, Bloomingdale’s, Nordstrom, and Macy’s (Manhattan Herald Square store only).
Calgary-based Italian grocery chain Lina’s has opened its latest concept in the city – its fifth location in the Alberta city.
Matthew Rai. Photo: LinkedIn.
Lina’s Market Hall, in the Deerfoot City shopping centre, is 25,000 square feet with a combination grocery store, cafe and food hall with nine different stations for a fresh dining experience.
Matthew Rai, Vice President of Lina’s, said the concept is one that works in Europe and the United States.
“It’s coming to Canada. There’s other markets out there. I wouldn’t say it’s a market per se. It’s a food hall. It’s very food centric. A little bit of grocery but it’s more for food.”
“We’re starting to work and collaborate with other chefs in the city, across the country, to bring them in, and they can actually run each booth as their fast food concept for a day, a weekend. We’re also planning to do Lina’s After Dark so we can do a remix version of each booth.”
Video by Mario Toneguzzi Lina’s Market in Calgary. Photo: Mario Toneguzzi Lina’s Market in Calgary. Photo: Mario Toneguzzi
“So you could imagine we could do a stir fry prima pasta. We can do Indian pizza at our pizzeria. We can also do Korean street food at Cibo da Via (one of the food stations). So it’s very versatile. We can close down the doors and do private events or we can do a Lina’s After Dark experience.”
Rai said the grocery component of the location offers typical goods from Italy and elsewhere found at the other four Lina’s locations in Calgary.
“Once we opened the doors and people saw the weekend attraction, I had four more leads on other locations. But we’re slowing down. We want to just provide the best experience for our customers and we want to strategize on our growth plans,” he said. “Right now, the cost of building is way too high . . . We’re in a time of providing the best experience for our customers and be able to expand after that.”
“We’ve been approached in other cities. There’s opportunities out there. It’s really about the cost of starting these things up. They’re high in costs currently.”
Lina’s Market in Calgary. Photo: Mario Toneguzzi Lina’s Market in Calgary. Photo: Mario Toneguzzi
“Today’s consumer, to get them into a retail format you have to provide them with an experience. And a lot of people say that. How do you create an experience? The smells, the sounds, the buzz. But you really need to hone in on your niche. And our niche is Italian cuisine. It’s very easy to dial into the Italian culture for us because of our heritage. We brought Lina Castle back (the original founder). We have a lot of Italians that have come from Italy that are new immigrants to the country. There is an essence of hard work with our people.”
Lina’s is set to redefine the culinary landscape of the area. The innovative food hall and market promises to create an Italian food community where patrons can savor specialized Italian culinary delights while enjoying a dynamic and vibrant space. Lina’s Market Hall is the latest venture by a passionate team with a vision to provide an ultimate Italian dining and shopping experience.
Market Halls have been a growing trend in Europe, and Lina’s Market Hall is honored to be among the pioneers in bringing this concept to Calgary. The establishment is set to cater to a wide range of tastes, offering a diverse array of Italian culinary treasures, from classic pasta dishes to delectable pizza, along with an array of delightful desserts.
Lina’s Market in Calgary. Photo: Mario Toneguzzi
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Lina's Market in Calgary. Photo: Mario Toneguzzi
Lina's Market in Calgary. Photo: Mario Toneguzzi
Lina's Market in Calgary. Photo: Mario Toneguzzi
Lina's Market in Calgary. Photo: Mario Toneguzzi
Lina's Market in Calgary. Photo: Mario Toneguzzi
“What makes me proud of this space is that we got to build this all together. This means that everyone who’s been supporting us and working with us put in their best efforts to make it happen. Nothing makes us prouder than the people who roll up their sleeves to make it happen. We want to thank our hardworking team and community for getting us here,” said Rai.
Lina’s Market Hall will be more than a food destination; it will serve as a versatile community hub.
“Lina’s Market Hall is a milestone for us. It solves so many problems in retail today. This space allows us to enjoy a cafe and catch up with loved ones. Then head over to Prima Pasta for lunch and enjoy a soccer game in our lounge. After the game, pizza and drinks with friends then shop for groceries to go home, all in one day and in one space.”
This is the second Lina’s new store to open in the past year. The brand opened its Lina’s Italian Piazza about a year ago in the trendy Inglewood neighbourhood of Calgary in 15,000 square feet of space previously occupied by Bite Grocer in the Atlantic Avenue Art Block Building.
Despite economic uncertainties, Canadian consumers are gearing up for the 2023 holiday season with some resilience and determination, according to a recent survey conducted by PwC Canada.
This year’s edition of PwC’s Canadian holiday outlook revealed that 76 per cent of respondents plan to maintain or increase their holiday spending compared to the previous year. The average expected spending per Canadian consumer is expected to grow 13 per cent over the previous year.
Some key findings of the survey include:
61 per cent of consumers plan to visit a physical store for gift ideas, with younger shoppers (Gen Z) leading;
43 per cent of consumers say knowledgeable in-store employees will be one of their top sources for product recommendations;
Canadians are traveling and on the move again: The average Canadian spend on travel this year will be the highest we’ve seen since 2019. The increase is seen primarily due to planned travel expenditures, which are up 31 per cent in Canada and 12 per cent in the US from 2022. Consumers are resuming their pre-pandemic travel patterns and spending the holidays with friends and family, as well as fulfilling their pent-up demand for trips abroad;
Post pandemic shopping trends: With COVID and safety concerns not top of mind, in-store shopping will make a come-back, with 63 per cent of consumers planning in-store purchases, especially for gift ideas. Online marketplaces, notably Amazon, will continue to dominate e-commerce, with 91 per cent of respondents planning to shop on the platform;
Gen X and Gen Z will lead the spending surge, with an increase of 29 per cent and 26 per cent, respectively;
25 per cent of Gen Z and Millennial consumers will use emerging retail technology such as Virtual Reality / Augmented Reality / AI for holiday shopping.
“Canadians are approaching the holiday season with optimism. The survey reveals shifting generational spending patterns. These changes reflect the resilience and adaptability of Canadian consumers in navigating evolving economic landscapes,” said Myles Gooding, National Consumer Markets Leader & Global Consumer Markets Advisory Leader at PwC Canada.
“What strikes me when we walk through this data is travel is back in a very big way and we’re starting to see that come to fruition . . . That appears to be the big story. I think on the gift giving side, we’re looking at a four per cent increase over last year which coincidentally is right on target with the NRF (National Retail Federation) in the U.S. with a four per cent increase as well.
“But when you look at the data what that really says is there’s probably going to be some winners and probably going to be some losers. We already see categories out there like DYI are struggling. General merchandise retailers in the U.S. have already kind offered some hedging their bets, managing expectation comments around this data not being as big as we’d like it to be. I think for the most part most of them are looking to come out of this pretty respectable.”
Gooding said dining and entertainment will likely increase only by about one per cent.
Despite some economic challenges, he said retail spending has remained resilient.
“I think when it comes to the holidays, people will open up their wallets,” added Gooding.
“The interest rates right now are really affecting the Millennial demographic the most. Married with kids. They have mortgages. Some of them are starting to come due. So tighter in those households. Gen Z probably not quite so much. They’re probably got some promotion in their career. And Gen X are now taking place of the Baby Boomers in being at the peak of their careers and spending a fair amount of money on things like travel and gift giving as well.”
Gooding said the one thing that retailers can really pay attention to that consumers are focusing on three things – quality, value and experience.
“When you at certain retailers, some of the reports are showing some are doing really well, it’s centred around those three pillars. Even if the product is a little bit more expensive, if it’s demonstrating quality and you’re getting an experience, you’re probably going to be doing pretty well. So that’s probably going to be the key differentiator between those winners and losers as to how this holiday season unfolds,” he said.
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 three days.
Last week’s news of Mastermind Toys entering creditor protection caught many off guard. It serves as a stark reminder of a fundamental truth in today’s retail landscape: impeccable execution of the traditional playbook is no longer a guarantee of success.
In 2022, Sarah Jordan, Mastermind’s former CEO, described their strategy as “reimagining the ways we meet our customers – whether in-store, at curbside, or online.” The company successfully launched initiatives like a digital loyalty program and created engaging editorial content. They did everything the typical consultants would recommend. So, why did they struggle?
Sarah Jordan, former CEO of Mastermind Toys
Some early analyses point to over-expansion or private equity ownership as the culprits. But the core problem is a decaying relevance and significance. By focusing on the customer experience, the traditional playbook falls short of meeting deeper consumer desires for transformation.
What does that mean? Businesses often focus on their own transformation, neglecting the transformative journey of their customers. Why do people buy high-end kitchen appliances, athletic apparel, or cosmetics? These products don’t just fulfill a need; they transform the buyer into someone they aspire to be — a better chef, a fitter individual, a more confident persona.
Leaders in these industries, like Wolf, Lululemon and Sephora, pair exceptional execution with a deep understanding of these fundamental human needs.
Truly enabling personal transformation requires an intimate understanding of your customers’ lived experience, unmet needs, and how your products can facilitate this journey.
Moreover, maintaining a clear perspective on market evolution is crucial. The journey towards facilitating personal transformation is not a sprint. It’s a marathon, requiring a vision of the market’s future landscape you will be evolving into.
Is the traditional value proposition of toys still relevant? Early indicators suggest a shift. Consider CAMP, the U.S. toy chain, billing themselves as “Family Experience Centers.” Their locations offer immersive theater spaces and party venues alongside traditional retail. Their focus on facilitating family connections and value-sharing is a step beyond mere transactional exchanges.
Their LA store is currently featuring a Bluey experience that allows families to play the games in real life that the characters play in the show and interact with Bluey’s world.
Inside a Mastermind Toys store. Photo: Mastermind Toys
CAMP believes that toys and games are fun, but they are at their best when they create connections. This connection can be between gifter and recipient, or between those playing together. Toys are also about sharing values. Do you look for organic materials in your toys? Avoid toy guns? These are all subconscious transmission of values. Selling toys on the way out turns the Bluey stuffie from a toy to a souvenir of their transformation.
In an era of tightened consumer spending, people still invest in experiences that resonate with their values. Look at the price of Taylor Swift tickets. The competition for toys isn’t just other toys, but experiences like concerts and immersive events. The toy market in Canada is valued at $2.9 billion, overshadowed by the $4.6 billion in-person entertainment sector.
Remember FAO Schwartz? It wasn’t just about the toys; it was about the memorable experiences.
I’m not saying Mastermind’s future is to catch up with CAMP, or that forging new connections through theatrical experiences is the answer for toys in general. Only that if they want to not only survive, but thrive, Mastermind needs to find a bigger reason for being. They need to discover and focus on the kinds of transformation that matter most to their customers and marketplace.
At Faculty of Change, we call this ‘going evergreen’ — finding and conquering new markets for real growth by serving bigger needs, rather than merely vying for a larger share of the existing one. It is the only proven method for lasting growth.
The situation with Mastermind Toys is disheartening, especially as the holiday season approaches. Yet, creditor protection isn’t the end. Many companies emerge stronger post-crisis. Here’s to hoping Mastermind Toys’ leadership pivots towards creating more transformative experiences, rather than just selling products. Such a shift would be the first step in going evergreen and ensuring the company’s future.
Jared Gordon is one of the founders of Faculty of Change. He and their team work with established retailers to go evergreen and uncover new sources of growth.
Canadian retail sales grew 2.4% YOY for All Sales in September as they continue on a path of slight growth. However, All Stores Less Automotive, Food, and Pharmacies were down -1.0% YOY as discretionary spend continues to decline even further.
JCWG would be remiss if not to mention how Black Friday was fairing in Toronto as StatCan’s release happened to fall on Black Friday. Observations in downtown Toronto showed lower than expected early traffic, with footfall at the CF Toronto Eaton Centre following suit. Considering 40% of consumers were planning to shop on Black Friday according to a RCC/Leger study, JCWG is a little surprised. However, this is likely as a result of continued work-from-home with many offices, and Friday being a very common day to stay home. Suburban shopping centres were likely to experience higher traffic as people leave on their lunch breaks or after work to try to stock up on gift giving purchases for the upcoming holidays.
As with other months throughout summer 2023, wildfires had a significant impact on sales regionally throughout Canada. Retail sales in the Territories experienced a decline of -6.6% YTD, largely due to the fires in the Northwest Territories. In addition to fires, we continue to see lower sales in the most expensive provinces as inflation continues to grow, with British Columbia and Ontario only up 0.4% and 0.6% YTD respectively.
Furniture Stores, down -7.3% YOY, (August down -6.6%)
Home Furnishings Stores, down -12.5% YOY, (August down -8.4%) and
Building Material and Garden Equipment, down -6.76% YOY, (August down -7.2%).
Retailers in these categories will need to innovate going forward to maintain market share, and this decrease in sales may take some time to recover.
Holiday 2023 has had conflicting reports. Whereas the RCC and Leger have predicted an increase of 14% over last year, Deloitte is predicting an 11% decrease. While both studies have different respondents, JCWG is predicting trends to be more central, though further towards a negative spend. The economic outlook in Canada is not great, and consumers are struggling. However, maybe consumers will surprise us and splurge throughout the end of the year.
One report that many Canadians should make an annual tradition of reading to gain insight into upcoming food trends is the Trend Report from Canadian-based Nourish Food Marketing. The 2024 edition, just released last week, offers a comprehensive and insightful analysis of emerging trends in the food and beverage industry. It underscores the significant roles of technology, evolving consumer preferences, and the increasing importance of sustainability and health-conscious choices. For those involved in food marketing, this report always provides an intriguing and thought-provoking read.
As we enter 2024, according to the report, the food and beverage industry stands at a crossroads, shaped by technological advancements, evolving consumer expectations, and pressing global challenges. This 34-page document offers a window into this transformative landscape, highlighting key trends that are reshaping how we produce, market, and consume food. Most notably, it offers consumers a glimpse of how the industry aims to engage with us in the near future. While as consumers, we may not want to believe that our behavior is heavily influenced by marketing at the grocery store or restaurant, the reality is that it is.
One of the most striking developments emphasized by the report is the advent of AI in our kitchens and food supply chains. Although we may not always realize it, AI is already a part of our daily lives. However, it is about to revolutionize the food industry and how food is marketed to us. With the availability of free tools like ChatGPT, AI has become a practical tool that augments human skills in product development, consumer insights, and even taste testing. The report suggests that AI, in its various roles, will drive product innovation, enhance personalization in nutrition, and optimize supply chains, ultimately making our food systems more efficient and responsive to consumer needs. While this may be scary for some, it is invigorating for others.
Amidst the digital revolution, the enduring challenge of climate change looms large. The year 2023 saw record-breaking temperatures and widespread environmental disasters, underscoring the urgent need for sustainable practices. However, the report notes a paradox: while sustainability is crucial, immediate economic pressures like inflation often overshadow it in consumers’ minds. This presents a unique challenge for the industry – how to effectively communicate and implement sustainable practices in a way that aligns with consumers’ immediate needs and values. A recent survey by GlobeScan, however, suggests that consumers, especially from younger generations, increasingly view environmental stewardship as an integral part of their food choices, even in the face of rising food prices. This indicates a gradual shift in this trend.
And what would a marketing report be without mentioning the “Ozempic” craze? The report also highlights significant shifts in consumption patterns. The rise of the ‘Ozempic effect’ and an aging population suggest a potential decline in calorie consumption. Concurrently, consumers are increasingly focusing on health-conscious and brain-boosting foods, driven by a cross-generational demand for dietary choices that support cognitive and overall well-being.
Meanwhile, the world of vegetarian protein-based foods is experiencing a resurgence. The initial fascination with highly processed meat alternatives is giving way to a renewed appreciation for the inherent qualities of plant-based foods. This “back to basics” approach resonates with the growing consumer demand for simplicity, authenticity, and nutrition. In other words, the market has moved on from the “Beyond Meat” craze as it seeks choice, quality, and taste. The initial goal of replacing meat altogether seemed somewhat impractical, given that over 91% of Canadians continue to consume meat regularly.
A key demographic in this evolving landscape is Generation Alpha, those born after 2012. These children are growing up in a digitally saturated and environmentally precarious world. According to the report, they are expected to have adventurous palates influenced by diverse family structures and a globalized social environment. Observing this crop of consumers will undoubtedly be fascinating.
As we navigate through 2024 and beyond, the food industry is poised for dynamic changes. The interplay of technology, consumer health consciousness, sustainability concerns, and the rise of new consumer demographics will drive innovation and transformation in the sector. While the future of our cost of living remains uncertain, we can hope that 2024 will be a bit more interesting and less challenging than 2023 when it comes to the grocery store.
Craig and Suzanne Sears, the CEO and founder of Luxury Careers Canada discuss the challenges faced by new Canadians in securing employment, emphasizing the vast pool of highly educated, underemployed individuals in the Canadian workforce. She stresses the importance of retailers adapting to the reality that 35% of the workforce comprises new Canadians, urging a shift in mindset towards embracing diversity and providing equal opportunities.
The conversation delves into discriminatory hiring practices, with Suzanne addressing the prevalent demand for “Canadian experience” and the need for a cultural shift in employers’ expectations. She anticipates potential legal changes to discourage such discriminatory practices. Moving on, the discussion turns to recent developments in the hospitality industry, specifically the ban on unpaid labour for work trials. Suzanne applauds this change, emphasizing its positive impact on making the workplace more humane and fair, particularly for new Canadians unfamiliar with stringent labor standards.
The interview concludes with a glimpse into the holiday hiring landscape and economic predictions. Suzanne projects a growth of approximately 2% in the retail industry over the next six months, challenging earlier predictions of a flat or declining market. Despite cautious optimism, she anticipates retailers adapting to the changing economic climate, emphasizing the resilience and strength of the retail sector in Canada.
The Interview Series audio podcasts by Retail Insider Canada are available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly audio podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.
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Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/
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.
