Retail Insights with Eric Sherman [Video Interview]
Craig and Eric Sherman, Head of National Operations at First Capital REIT discuss Eric’s extensive experience in the retail real estate industry, highlighting his journey from a summer student to the head of national operations at First Capital REIT. Eric reflects on his start in the industry, emphasizing the lack of awareness about retail real estate opportunities during his university days. He recounts his career progression, mentioning key projects and roles leading to his current position.
The conversation shifts to the transformation of Yorkville Village and the strategic decisions behind acquiring properties in high-density, high-income neighbourhoods. Eric elaborates on First Capital REIT’s approach to curating retail mixes in different neighbourhoods, with examples from Yorkville to Liberty Village. He talks about the importance of integrating luxury with personal service and experiences, discussing the impact of global trends on local retail strategies.
Finally, Eric shares insights into First Capital REIT’s broader strategy, focusing on grocery-anchored neighborhood shopping centers and the importance of community integration. He emphasizes the role of operations and property management in enhancing retail environments. Discussing recent projects like One Bloor Street East, Eric highlights the challenges and successes in revitalizing retail spaces, showcasing the company’s adaptive strategies in response to changing retail landscapes and consumer expectations.
If you prefer to listen to the audio version, it is available below:
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Featured during this interview:
Eric Sherman, Head of National Operations at First Capital REIT
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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/
DoughBox Wood Fired Pizza and Pasta is opening six locations in 2024, continues to evolve in-store experiences, is upgrading its loyalty program, and is aiming to expand throughout Canada by having around 60 locations within the next five years.
Tony Visca
The brand opened in 2018 with its first location in Hamilton, Ontario and focuses on wood fired pizza and pasta. Tony Visca, the founder of DoughBox, was inspired to create the brand as he has Italian restaurants in the Niagara region and wanted to create a fast service version while still delivering high-quality ingredients and unique experiences. Guests can expect to receive their meal within nine minutes.
“We started in 2018 where we opened our first location in Hamilton. And then, like everything in the world – Covid hit and at that point, we put the brakes on expanding and put our focus on technology to get more takeout business and that really helped us,” says Visca.
In 2021, the brand started to franchise again and currently has 13 locations – 12 in Ontario and one in Saskatoon. The latest location is in London, Ontario where they opened its doors on February 20th.
Doughbox is owned by Niagara-based 43 North Restaurant Group, which includes brands like Cracker Jacks, Pedal Pub, Pizza Wagon, Johnny Rocco’s Italian Grill, Commercial Roadhouse, Stone Mill Ballroom and Feastivities.
Expansion Plans
The DOUGHBOX team, Local franchisees, Southlake foundation members and local officials celebrating at the Pizza 500 Grand opening event today in Newmarket.
Visca says the brand currently has four locations under construction and has another 12 franchises looking for locations: “That is the toughest part about this business, is everybody wants to get the perfect spot. So that is our challenge right now is just finding the right real estate.”
The four Ontario locations under construction include:
Brantford, opening by the end of March
Woodbridge, opening by the end of March
Kingston, opening in late April
Toronto, opening in May
Image: Doughbox
Image: Doughbox
As for locations outside of Ontario, Visca says they are currently looking at expanding into Edmonton, Calgary, and Halifax. The goal is to open locations in Edmonton and Calgary in late summer or early fall and for Halifax, Visca says they are unsure when but are looking for a partner. The brand is looking for spaces between 1,600 and 2,000 square feet.
Overall, the brand is aiming to have around 60 stores within the next five years.
“Obviously there is still a lot of opportunity and growth, not just in Ontario, but all of Canada. I am hoping to be around 60 to 70 stores, and then possibly move the brand into the US. We want to cover all the provinces in Canada so going out east, British Columbia, Manitoba, and eventually, even if it is a bit more work, get into the Quebec Market. We will concentrate on the Canadian market first, as we are Canadian, before expanding into the US.”
DoughBox is aiming to be in the US in two or three years.
In-store experiences
Doughbox at 40 University Avenue (Image: Doughbox)Doughbox at 40 University Avenue (Image: Doughbox)Image: Doughbox
Unlike other pizza restaurants, Visca says guests have the opportunity to create their own pizza and it only takes nine minutes from order time to delivery. Guests also have the opportunity to customize their pasta choices.
“When you walk in, you can order one of our signature pizzas and just walk down the line and watch them make the pizza in front of you. You can also create your own when you can come in every day and make a different pizza. You get to watch the pizza go into the oven and two minutes later – fresh pizza in your hands. The best way to eat a wood fired pizza is when it comes out of the oven.”
As for evolving technology, Visca says the brand still wants to prioritize human interaction as they want its staff to interact with customers. The main improvements have been online as during Covid, they needed to improve to provide easy access to takeout.
Upgraded loyalty program coming soon
The brand’s loyalty program is currently unavailable as Visca says they are in the process of improving the system.
The loyalty program should be available by the end of March and will be a point based system. Visca says as people come in, they collect points which they can turn in to buy a pizza, pasta, or whatever they like in the store.
“We just want everybody to come in and experience our product, and they will be surprised at the difference they will taste between just a deck style pizza and a wood fired pizza. If you haven’t had a wood fired pizza – you need to try it, it is just a little different. We use high-quality ingredients, they are thin in crust, and cook in a couple of minutes. Our fast service on pizza and pasta gives everybody time to make sure they can get in, out, and enjoy a high-quality meal.”
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.
Ottawa’s retail real estate market is expected to soften amid continued economic headwinds, according to a new report by commercial real estate firm JLL.
“The retail leasing market in Ottawa is stabilizing, with a small decline in the availability rate and relatively low absorption levels. Despite economic headwinds, net rental rates increased as new retail supply continued to underwhelm,” said the report, Ottawa Retail Insight, Spring 2024.
“Private and public stakeholders are working at both ends to create a much-needed boost in Ottawa’s residential supply. Retail sales growth in Ottawa experienced a notable slowdown in 2023, with minimal or no expected growth for the current year.”
Image: City of Ottawa
Despite a slowdown in retail consumption, the retail leasing market in Ottawa remains highly competitive, with availability rates slightly decreasing and notable growth in net rents. The limited new supply delivered in 2023 has sustained a market favorable to landlords, said JLL.
“General retail has accounted for the largest portion of absorbed retail space in Ottawa, while neighborhood, power, and strip centers have experienced stagnant absorption levels,” it said.
“CF Rideau Centre and Bayshore Shopping Centre in Ottawa have managed to secure leases from renowned retailers including RW&Co., Uniqlo, and Imaginaire. While rents in Ottawa are still on the rise, the rate of growth is expected to level off. Rent increases this year will be primarily influenced by the lack of new competitive retail space, inflation and escalating property taxes, rather than the improved retail fundamentals that drove the rent uptick in 2023.
“The trend of decreasing retail completions is anticipated to be reversed soon. Nonetheless, few projects in the pipeline will address the urgent requirement for more retail space in the downtown area in the immediate future. Instead, development activities are primarily focused on areas beyond the downtown core.”
CF Rideau Centre (Image: Cadillac Fairview)Uniqlo store at CF Rideau Centre in Ottawa. Photo: UniqloOttawa Retail Spring 2024 (Image: JLL)
JLL said downtown Ottawa may not see a substantial influx of new retail space, but the city is determined to uplift ByWard Market. With a significant budget allocated for upgrades, the city aims to enhance security measures and rejuvenate key areas such as ByWard Market Square, William Street, and the adjacent parking garage. Addressing security concerns and rejuvenating the market will help stabilize the area and give locals and tourists alike another reason to shop in the city.
“Even with the lack of imminent retail supply in urban Ottawa, there remains optimism for boosted sales thanks to a multitude of residential projects slated for delivery in the coming years,” added the report.
“Colonnade Bridgeport has an extensive development pipeline aimed at addressing Ottawa’s housing crisis, encompassing 14 buildings across the city. The multi-billion-dollar pipeline is set to deliver over 3,400 residential units upon completion. While the towers won’t be concentrated downtown, they will be strategically positioned in areas with transit access to the downtown core. The company plans to start construction on at least two sites off Highway 417 by the year’s end.
“The public sector is also actively addressing the housing shortage, using its power to revise zoning bylaws. The revision involves introducing new areas for infill development and allowing increased residential density in the suburbs. These actions will complement the existing residential growth already taking place in suburban Ottawa. Upon completion of the bylaw revision in 2025, these efforts will create new possibilities for residential projects, leading to increased sales and demand for additional retail spaces.”
In 2023, JLL said retail sales in Ottawa experienced a notable deceleration, growing by just 1.2 per cent compared to the growth rate of 3.4 per cent in 2022. Ongoing economic pressures have further contributed to the anticipation of limited growth in retail sales for the current year, as consumer spending is expected to decline. Notably, there has been a slowdown in sales growth for retail staples including general merchandise, clothing, and shoes, it said.
“Although Ottawa saw a deceleration in sales growth in 2023, the city remains supported by robust long-term fundamentals due to its significant number of high-paying public sector jobs and anticipated population growth driven by immigration,” explained the report.
“The food services sector, encompassing full and quick-service restaurants, fared better than the goods sector in 2023 and is expected to maintain growth in the low single digits, albeit at a slower pace.”
Hard Rock Hotel & Casino Ottawa (Rendering: Hard Rock)
Over the past three years, air passenger traffic volume has continued to rise, growing by almost 37 per cent in 2023, said the commercial real estate firm. Although the number of passengers has not yet reached pre-pandemic levels, the delivery of Hard Rock’s 150-room, 1,600-slot Hotel & Casino by mid-2025 offers an added incentive for travelers to visit the nation’s capital, it said, adding that public transit has also shown growth, increasing by 36.2 per cent annually.
However, ridership levels remain well below pre-pandemic levels. The prevalence of hybrid work models, which require employees to be present for only two to three days per week, will likely continue to limit public transit usage for the foreseeable future, according to the report.
“Ottawa’s retail sector is experiencing a weakened outlook as the growth rate of spending on general merchandise, clothing, and shoes is slowing. However, there are positive prospects for sustained growth in food services and tourism. Efforts are underway to tackle the city’s housing shortage, which will ultimately provide retailers with a larger pool of potential customers as more transit-accessible towers are delivered,” concluded the JLL report.
Ottawa Retail Spring 2024 (Image: JLL)
Casdin Parr, Executive Vice President, Retail Advisory Services, JLL, said the return to the downtown core in Ottawa has certainly been slower than it has been in Toronto for instance.
Casdin Parr
“While (CF) Rideau (Centre) continues to be the dominant asset in the downtown core from a retail perspective,” he said. “They’ve made some great additions over the last 12 months with the likes of Uniqlo, Athleta and some still to open like Alo Yoga.
“The strength in the marketplace is also spreading out to the Bayshore and the St. Laurent assets as the hybrid work model in the Ottawa market is probably a little bit more entrenched and we’re seeing some of the consumer spending shifting from the downtown core out to some of these suburban trade in the marketplace.”
Parr said the density of new homes in Ottawa as well is different than Toronto and Vancouver. While there is still downtown density being added, a lot of the new home development, single-family and multi-family, is actually being spread out over a larger geographic area in the Ottawa marketplace.
“I think long-term in Ottawa the return to work provides more opportunity looking forward. The tourism component is still on the rise and has the ability to rebound to help support the Ottawa downtown core in particular,” he said. “It’s been a slower build to get back to where we were but I also think they may still have a larger ahead to recapture and continue growth going forward.”
Second level of the new Kith store at 78 Yorkville Avenue in Toronto. Photo: Kith
For inclusion in the latest issue of Retail Insider the magazine, we’ve compiled a list of the international retailers that entered Canada in 2023. In total, Retail Insider counted 27 international retailers that entered Canada by opening first store locations — an impressive number following the COVID-19 pandemic. Many of these newly entered brands plan to open more locations in Canada, and we’ll also discuss that below.
The Greater Toronto Area was the target for the vast majority of international brands entering Canada by opening stores in 2023. Of the 27 international brands that opened first retail stores in Canada, 20 of those were in Toronto or its surrounding communities.
In terms of retail nodes, Toronto’s Bloor-Yorkville turned out to be the hot spot for new brands entering the Canadian market in 2023. A total of six international retailers opened stores in the affluent high-density downtown Toronto area, including: Veronica Beard, John Elliott, VRAI, Kith, Alexander Wang, and Roger Dubuis. Toronto’s Yorkdale Shopping Centre, which over the years has launched more first-to-Canada international retailers than anywhere, saw four new-to-Canada entrants in 2023, including Mango, Qeelin, Ralph Lauren, and Anine Bing.
Bloor Yorkville at Bay Street (Image: Dustin Fuhs)
Downtown Toronto became home to four first-to-Canada retailers in 2023, two of which were at the CF Toronto Eaton Centre.
The Greater Vancouver area was home to five first-to-Canada retailer openings in 2023, spread out across the region including Vancouver’s Kitsilano area, Metropolis at Metrotown in Burnaby, and CF Richmond Centre in Richmond. Montreal and Edmonton also each boasted a first-to-Canada retail opening in 2023.
Retail Insider has been tracking international retail entrants into Canada since 2014. In the previous years that Retail Insider published the international entrants’ lists, the number of first-to-market retailers has ranged from 20 to over 50 international retailers that entered the country over a 12 month period. For a breakdown of those years, view a summary at the end of this article.
Below is a breakdown geographically of where the 25 international brands entered Canada in 2023, followed by a description of each of these. Included is a discussion of what Retail Insider is aware of in terms of future expansion plans for these brands, as well.
Where did international retailers open their first stores in Canada in 2023?
Number total: 27 retailers
Bloor-Yorkville (Toronto): 6 Yorkdale Shopping Centre (Toronto): 4 Downtown Toronto/CF Toronto Eaton Centre (TEC): 4 (2 at TEC) Greater Vancouver, BC: 4 Montreal, QC: 1 Edmonton, AB: 1 Niagara-on-The-Lake, ON: 1 Oakville, ON: 1 Toronto, ON – Ossington Ave: 1 Toronto, ON – North York: 1 Toronto, ON – Markham: 1 Toronto, ON – Vaughan: 1 Mississauga, ON: 1
The following is an overview of the 27 brands that entered the Canadian market by opening stores in 2023, including what’s to come. The list is ordered chronologically according to store opening dates, beginning in early 2023.
Mango at Yorkdale Shopping Centre (Image: Mango)
Mango – February 2023 (Yorkdale Shopping Centre, Toronto): Spanish fashion brand, Mango, entered the Canadian market in February of 2023 with its first store opening at Toronto’s Yorkdale Shopping Centre. The brand subsequently opened 7 more stores in 2023 in the Greater Toronto Area including CF Toronto Eaton Centre, Scarborough Town Centre, CF Fairview Mall, Square One (Mississauga), Vaughan Mills (Vaughan), CF Markville (Markham), and Upper Canada Mall (Newmarket). Israel-based Fox Group is the licensee for Mango in Canada.
Given the initial market expansion in Canada, Mango is expected to target opening stores in major shopping centres in cities across Canada such as Vancouver, Edmonton, Calgary, Ottawa and possibly others including the Quebec market. Multiple locations in larger cities would be expected with the expansion. Mango is also confirmed to be opening street-front stores including one near the corner of Yonge and Bloor streets in 2024.
Casdin Parr of brokerage JLL is handling the expansion for Mango and negotiated lease deals for locations already open.
Veronica Beard – March 2023 (Yorkville, Toronto): Upscale New York City-based women’s fashion brand, Veronica Beard, opened its first Canadian storefront at 111 Yorkville Avenue in Toronto in the Spring of 2023. The location features a unique facade in a double-townhouse that was recently renovated.
The new store spans about 1,800 square feet and houses Veronica Beard’s women’s ready-to-wear collection and staples such as the Dickey Jacket, scuba suiting and denim, as well as outerwear, dresses, jeans, tops, skirts, footwear, accessories and other categories.
The lease deal was handled by CBRE. Arlin Markowitz, along with Teddy Taggart and Jackson Turner, represented Veronica Beard in the deal, along with Michael Leifer of Runyon Group. The landlord side of the deal was handled by Arlin Markowitz and team members Emily Everett and Alex Edmison.
Veronica Beard at 111 Yorkville Avenue in Toronto. (Photo supplied.)FatFace in Niagara-on-the-Lake, Ontario (Image: GTA General Contractors)
FatFace – April 2023 (Niagara-on-the-Lake, ON): UK-based fashion brand, FatFace, entered the Canadian market in April of 2023 with a store in the quaint community of Niagara-on-the-Lake, Ontario. The retailer expanded in Ontario with more locations in Newmarket, Barrie, Halton Hills, Oshawa, Burlington, and Picton, with other stores planned. FatFace is expected to expand into other provinces in Canada as it gains brand awareness.
The company was founded by friends Tim Slade and Jules Leaver in 1988. Inspired by the name of the black mountain ski run in Val d’Isère, La Face, FatFace was born. Product categories in FatFace stores include womenswear, menswear, children’s fashions, footwear and accessories.
Jennifer Bowyer and Jeff Berkowitz of Aurora Realty Consultants represents FatFace in Canada. According to Aurora’s website, FatFace stores will ideally be in the 1,200 to 1,800 square foot range in tourist markets as well as high streets and shopping centres.
FatFace in Georgian Mall, Barrie, Ontario (Image: GTA General Contractors / Mike Black PhotoWorks)Paris Baguette at Yonge Sheppard Centre (Image: Paris Baguette)
Paris Baguette – Spring 2023 (North York, Toronto, ON): International bakery-cafe chain, Paris Baguette, opened its first Canadian location in the spring of 2023 at the Yonge-Sheppard Centre in Toronto’s North York Area. It’s the first of many planned for Canada in the coming years as part of a franchise arrangement. Several locations opened in 2023 in markets including Edmonton, Calgary, and Newmarket, ON. The Canadian flagship will open in 2024 at 110 Bloor Street West in Toronto.
In October 2020, Paris Baguette announced its presence in Canada via a registered Franchise Disclosure Document. At the time, the company said that it was charting the course on a Canadian expansion in Toronto, Montreal, Vancouver and other “booming” provinces and cities. Paris Baguette said in a statement that its goal is to establish at least 100 bakery branches in Canada by 2030.
Paris Baguette is a global brand owned by South Korean food-and-beverage company SPC Group. The premium bakery-cafe concept focuses on handcrafted breads, pastries and cakes, as well as chef-inspired sandwiches and salads.
Paris Baguette at Yonge Sheppard Centre (Image: Dustin Fuhs)Iris Galerie Distillery District in Toronto (Image: Dustin Fuhs)
Iris Galerie – May 3, 2023 (Distillery District Toronto, ON): Unique eye artwork concept, Iris Galerie, entered the Canadian market in May of 2023 when it opened a location at Toronto’s Distillery District. The company subsequently opened in Niagara Falls, Quebec City, Ottawa and Collingwood, ON, with plans to open about 30 stores in Canada in three years with locations typically being 400-600 square feet.
The concept started in 2021 in Paris after the founder, Emeric Wehbe, was inspired to capture the beauty of eyes. Iris Galerie uses state-of-the-art photography to capture the beauty of people’s eyes and create unique artwork and can include up to five different irises. Since opening, Iris Galerie has expanded to over 100 locations worldwide.
Iris Galerie at Fallsview Casino Resort in Niagara Falls FOX HOME at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Fox Home – June 2023 (CF Toronto Eaton Centre, Toronto): Israel-based home furnishings concept, Fox Home, expanded into Canada in the Summer of 2023 with its first store opening at CF Toronto Eaton Centre in downtown Toronto. Seven other locations opened in Southern Ontario in the Greater Toronto Area. Parent company, Fox Group, has indicated that it plans to open more Fox Home stores in other parts of Canada, although it’s not yet confirmed where and how many stores could ultimately open here.
Fox Home was founded in Israel in 2010, and the retailer says that it offers “a wide variety of fashionable home products while providing the consumer with a unique shopping experience, high quality and value for money.” The retailer operates nearly 100 stores, most of which are in Israel.
Casdin Parr of brokerage JLL is handling the expansion for Fox Home and negotiated lease deals for locations already open.
Vivobarefoot – June 2023 (West 4th Avenue, Kitsilano, BC): Sustainable footwear and natural health brand, Vivobarefoot, opened its first standalone store in North America in June of 2023 on West 4th Avenue in Vancouver’s Kitsilano area.
Vivobarefoot is a certified B Corp whose goal is to connect consumers to the natural world and set a new standard in regenerative business.
Founded in 2012 by two seventh-generation cobblers, Galahad and Asher Clark, Vivobarefoot is based on one simple insight – barefoot footwear is regenerative to human health. A Vivobarefoot product or experience is one that literally brings people closer to nature, says the B Corp certified company based in the UK. Concept stores exist in the UK and Germany with distributors in places like Australia, Netherlands, and Tel Aviv. More Canadian locations are expected as the first location gains traction.
Mario Negris, Martin Moriarty and Josh Cochrane of Marcus & Millichap were responsible for negotiating the lease deal.
Vivobarefoot at 2190 W 4th in Kitsilano (Image: Vivobarefoot)John Elliott in Yorkville (Image: Dustin Fuhs)
John Elliott – Summer 2023 (Bloor-Yorkville, Toronto): Youthful Los Angeles-based brand, John Elliott, opened its first Canadian flagship at 83 Yorkville Avenue in Toronto in the Summer of 2023. The 2,400 square foot store carries the brand’s full range, including artisanal leather pieces, Japanese denim, sportswear, and an extensive Italian-produced footwear collection.
Jeff Berkowitz of Aurora Realty Consultants represented John Elliott in the lease deal. Arlin Markowitz of CBRE represented the landlord in the deal.
It’s also the first international location for the brand, which has only six stores globally in markets that include Los Angeles, New York City, Miami, and Aspen Colorado. Designer John Elliott founded his brand in 2012 which features pricey denim and other fashions for men and women.
VRAI at 111 Yorkville Ave (Image: Dustin Fuhs)
VRAI – Summer 2023 (Bloor-Yorkville, Toronto): Los Angeles-based lab grown diamond retail brand, VRAI, opened its first Canadian location at 111 Yorkville Avenue in the summer of 2023, above Veronica Beard in the same building. Customers can have stones custom-cut with private consultation rooms and an elevated experience. Prices are a fraction of a mined diamond.
VRAI was founded in 2014 and has 13 stores globally in the US, UK and Spain. The brand has calculated expansion plans that could eventually include a Vancouver location, according to the company’s CEO.
Brandon Gorman of JLL negotiated the Yorkville lease deal on behalf of VRAI.
Rivian at The Amazing Brentwood (Image: Rivian)
Rivian – July 28, 2023 (The Amazing Brentwood, Burnaby, BC): Irvine, California-based Electric vehicle manufacturer, Rivian, opened its first Canadian showroom in July of 2023 at The Amazing Brentwood in Burnaby, near Vancouver. The showroom is contained in a ‘glass house’ building in the shopping centre, featuring a futuristic look. Burnaby is the first showroom for Rivian to feature augmented reality, allowing visitors to view any vehicle configuration they choose digitally.
Rivian launched in Canada in late 2022 with its R1T and R1S all-electric vehicle models. The R1T is a pick-up truck, while the R1S is more of a typical SUV. Other models can be purchased in the retail space.
Burnaby is the first international location for the US brand, which has showroom ‘spaces’ in California, New York, Illinois, Washington, Georgia, Colorado and Tennessee.
Insomnia Cookies – Summer 2023 (Edmonton, AB): Philadelphia-based, Insomnia Cookies, expanded into Canada with its first location opening in Edmonton in August of 2023, and more have since opened including one at York University in Toronto. The company was founded in 2003 at the University of Pennsylvania and now has over 250 locations on or near college and university campuses across the U.S., and now in Canada. The brand specializes in cookies, ice cream and also milk and non-milk products delivered late at night until 1 a.m. or 3 a.m. depending on the days of the week. All Insomnia Cookies locations do dine-in, takeout and delivery. Plans are in place to open 50-100 locations in Canada.
Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)Chow Tai Fook Jewellery at CF Fairview Mall in Toronto (Image: Chow Tai Fook Jewellery)
Chow Tai Fook – August 2023 (CF Richmond Centre, Vancouver, B.C.): Hong Kong-based, Chow Tai Fook, the world’s fourth-largest jewelry brand, opened its first Canadian store at CF Richmond Centre near Vancouver in August of 2023. A second location opened in Toronto at CF Fairview Mall in December of 2023. The company has further expansion plans, issuing a statement that reads: “We look forward to the growth and expansion opportunities across Canada in the years to come.”
The company, founded in 1929 in Guangzhou, China, has about 7,400 shops, mainly in Asia, and is worth more than US$16 billion, offering gold, white gold and diamond jewelry products.
Hoka at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Hoka – August 2023 (CF Toronto Eaton Centre, Toronto, ON): California-based running shoe brand, Hoka (stylized HOKA), opened its first Canadian storefront in August of 2023 at CF Toronto Eaton Centre in downtown Toronto. The store carries athletic shoes for both genders and is gaining popularity after its founding in 2009 in France. Hoka can also be found in multi-brand retailers in Canada, and it’s not known yet if more Canadian stores will open.
Dolce Vita/Steve Madden pop-up – August 2024 (Metropolis at Metrotown, Burnaby, BC): New York City-based footwear brand, Steve Madden, launched the first Canadian location of its Dolce Vita concept in August of 2024 at the Metropolis at Metrotown in Burnaby, near Vancouver. The almost 1,300 square foot store began as a pop-up and will become permanent in anticipation of a bigger Canadian expansion. The company told Retail Insider that it plans to open at least five locations in Canada.
Exterior of the new Kith store at 78 Yorkville Avenue in Toronto. Photo: Kith
Kith – Fall 2023 (Bloor-Yorkville, Toronto, ON): New York City-based lifestyle retailer, Kith, entered the Canadian market in September of 2023 when it opened its first store at 78 Yorkville Avenue in Toronto. The beautiful store spans more than 11,000 square feet and carries a range of designer and private-label brands for men, women and kids. Also included is a food and beverage component with an ice cream bar concept called Kith Treats, as well as an outpost of New York City-based restaurant Sadelle’s.
Kith operates 12 other standalone stores globally in the New York City area (four locations), Los Angeles area (two locations), Miami area (two locations) and in Honolulu, Aspen, Paris and Tokyo. The retailer also operates concessions at Bergdorf Goodman in New York City, Hirshleifers in Manhasset New York, and at Selfridges in London.
Edwin Jeans at 2 Ossington in Toronto (Image: Dustin Fuhs)
Edwin Jeans – September 9, 2023 (Ossington Avenue, Toronto, ON): Japanese denim brand, Edwin, opened its first Canadian store in September of 2023 in a 1,000 square foot lower-level space at 2 Ossington Avenue in Toronto. The brand was founded in 1947 and was the first to “translate post-WWII Americana through a Japanese lens and become the first global denim from Japan.” Its name is an anagram of the word “denim.” Products in the Ossington store include jeans, clothing and other items such as hats and footwear.
Retail Insider missed this store opening and there appears to have been little promotion for the new location. It’s not yet known if an expansion is at play as the Toronto store is the first in North America for Edwin. Edwin has stores globally and is also distributed in multi-brand retailers.
Edwin Jeans at 2 Ossington in Toronto (Image: Dustin Fuhs)Trespass at Vaughan Mills (Image: Trespass)
Trespass – Fall 2023 (Vaughan Mills, Vaughan, ON): Scottish outdoor clothing brand, Trespass, entered the Canadian market in the Fall of 2023 with a store at Vaughan Mills near Toronto. The brand is opening more stores in Canada and last year also opened at the Outlet Collection at Niagara and Tanger Outlets Cooktown in Ontario. The company plans to build more than 30 stores in Canada over the next two to three years, starting in Ontario and then moving west to markets such as Vancouver as well as eastward.
The brand was founded in 1938 in Glasgow and now has over 300 stores across Europe. Stores are approximately 3,000 square feet.
Casdin Parr of JLL is working with the brand on its Canadian expansion, and negotiated leases for locations already open.
Trespass at Outlet Collection at Niagara (Image: Outlet Collection at Niagara)View of the new Alexander Wang store at 110 Bloor Street West, as well as Gucci which recently saw a renovation. Anne Fontaine will open next to Alexander Wang, while Saint Laurent will open a flagship in the large space at the right of this photo. Photo: Craig Patterson
Alexander Wang – November 2023 (Bloor-Yorkville, Toronto, ON): Upscale New York Citybased contemporary brand, Alexander Wang, unveiled its 2,500 square foot Canadian flagship store at 110 Bloor Street West in Toronto in November of 2019. The store’s interior is metallic and flashy and carries a range of women’s and men’s apparel, footwear, bags and accessories. More locations are anticipated including Toronto’s Yorkdale Shopping Centre as well as in Vancouver at Oakridge Park in the spring of 2025.
For the Bloor Street store, Arlin Markowitz and Alex Edmison of CBRE Toronto’s Urban Retail Team negotiated the lease on behalf of tenant Alexander Wang. CBRE co-listed the spaces at 110 Bloor with Philip Traikos and Carmen Siegel of Cushman & Wakefield. Landlord ProWinko Canada owns 110 Bloor.
Alexander Wang at 110 Bloor Street West (Image: Dustin Fuhs)Being Human at CF Markville (Image: Cadillac Fairview)
Being Human – November 2023 (CF Markville, Markham, ON): Indian fashion brand, Being Human, entered the Canadian market in November of 2023 when it opened its first store at CF Markville in Markham, Ontario, near Toronto. It’s part of a larger expansion for the reasonably priced retailer which is opening stores in Ontario before moving to other markets. Fashions for men, women and kids are available across various categories.
The company says that it values “Love, Care, Share, Hope, Help and Joy” with stores in 15 countries around the globe.
Since its inception in 2012, Being Human Clothing is a brand under Being Human – The Salman Khan Foundation, a charitable trust devoted to education and healthcare initiatives for the underprivileged in India.
Women’s fashion brand Anine Bing opened its first Canadian store recently at Yorkdale. (Photo: Craig Patterson)
Anine Bing – Fall 2023 (Yorkdale Shopping Centre, Toronto, ON): Los Angeles-based women’s fashion brand, Anine Bing, entered the Canadian market in the fall of 2023 with its first store at Yorkdale Shopping Centre. Included is Bing’s range of women’s apparel, footwear, bags and accessories. The store’s design and interior appear rather minimalistic compared to some of the more lavish luxury brand storefronts nearby. It’s not known if the brand will open more stores in Canada at this time.
Qeelin – Fall 2023 (Yorkdale Shopping Centre, Toronto, ON): Kering-owned luxury jewellery brand, Qeelin, opened its first North American location in the fall of 2023 at Toronto’s Yorkdale Shopping Centre. The 700 square foot storefront features the brand’s range of jewellery which has proven popular with its targeted Chinese demographic. Yorkdale has proven itself to be a superstar when attracting affluent clients and the mall has the densest grouping of luxury brands in Canada.
It’s not known if more Qeelin stores will open in Canada, given the newness of the brand in North America. Holt Renfrew introduced the brand in Canada during the pandemic and carries the line in several of its stores.
Qeelin at Yorkdale Shopping Centre (Image: Dustin Fuhs)Ralph Lauren Yorkdale (Image: Ralph Lauren)
Ralph Lauren – September 2023 (Yorkdale Shopping Centre, Toronto, ON): New York City-based lifestyle brand, Ralph Lauren, opened its first fullpriced ‘luxury’ concept store in Canada at Toronto’s Yorkdale Shopping Centre in September of 2023. The 5,500 square foot store replaced Club Monaco and is located alongside various other luxury brand stores.
Ralph Lauren is expected to open more stores in Canada including in Montreal at Royalmount and in Vancouver, either downtown or at Oakridge Park. The brand could also open a location in Toronto’s Bloor-Yorkville area if space is found. Years ago, the brand had stores in Canada under its ‘Polo’ banner, and the company continues to operate a network of outlet stores within the country.
Ralph Lauren at Yorkdale Shopping Centre (Image: Dustin Fuhs)Image: Woof Gang
Woof Gang Bakery & Grooming – September 2023 (Oakville, ON): Miami-based dog-focused retail concept, Woof Gang Bakery & Grooming, opened its first Canadian storefront in September of 2023 at 2460 Neyagawa Boulevard in Oakville, ON. Included are gourmet and premium pet nutrition, and luxury spa services for pets.
The brand was founded as a bakery in Florida in 2007 and it now has over 200 locations in the US, with another 200-plus under development. In Canada, the brand will expand “really fast” according to Chairman, Alex Macedo, starting in Ontario and then expanding to Vancouver/West Coast and then other parts of the country. As many as 200 or more Canadian locations could open over the next several years according to Macedo.
Image: Malabar Gold and Diamonds
Malabar Gold and Diamonds – October 2023 (Heartland Town Centre, Mississauga, ON): In October of 2023, Indian jewellery behemoth, Malabar Gold and Diamonds, opened its first Canadian storefront at the Heartland Town Centre in Mississauga near Toronto. The 7,800 square foot store features over 30,000 designs across 25 brands and collections in gold, diamond and precious gem jewellery, including bridal jewellery and options ranging from casual to formal designs. It’s the first India-based jeweller to open in Canada.
The retailer has almost 340 stores in 12 countries globally, making it one of the largest jewellery chains in the world. The company was founded in 1993 and has sales of about $5.2 billion USD.
Rendering: MIKAEL D
MIKAEL D – November 20, 2023 (Montreal, QC): Luxury dress brand, MIKAEL D,. opened its first Canadian showroom location on November 30, 2023 at 433 Chabanel West in Montreal, spanning about 6,750 square feet. The showroom will be fully operational by Spring 2024 with walk-in appointments. The brand features pricey wedding dresses as well as women’s formal wear. Custom-designs are available, and in the spring of 2024 ready-to-wear will be added, as well as dress rentals.
No more showrooms are planned for Canada at this time, though the brand is looking to open an online store for Canada while having a presence in a department store chain. The company is also looking to collaborate with fashion schools for fresh talent.
Paris Saint-Germain at 399 Queen Street West (Image: Dustin Fuhs)
Paris Saint-Germain: December 2023 (Queen St, Toronto, ON): Parisian football club, Paris Saint-Germain, in collaboration with Fanatics and Lids, opened its first Canadian storefront at 399 Queen Street West in Toronto in December of 2023. It’s the fourth store in North America for the brand and the 14th globally. The Toronto location features an expansive assortment of products including team jerseys, headwear, accessories, a full range of Nike and Jordan teamwear, one-of-a-kind collaborations, and Paris Saint-Germain designs exclusively available for customers of the new Toronto location.
Alex Charlebois of Urban Reform Realty was responsible for negotiating the lease deal on behalf of Paris Saint-Germain.
The club has announced a partnership with the local NGO Play Forever, focusing on sports and education programs for youth. It’s not known if more locations will open in Canada.
Paris Saint-Germain at 399 Queen Street West
Roger Dubuis – December 2023 (Bloor-Yorkville, Toronto, ON): Richemont-owned luxury brand, Roger Dubuis, opened its first Canadian storefront in December of 2023 at the base of the Park Hyatt Hotel at Bloor Street and Avenue Road in Toronto’s Bloor-Yorkville. Watches are priced well into the thousands of dollars. The store, operated in partnership with Toronto-based jeweller, L’ORO, joins two other Richemont brands which opened next to it including Panerai and IWC.
Roger Dubuis has only a handful of stores around the world, and just two in the US (South Coast Plaza and Aspen, Colorado). It’s not known if any more Canadian stores will open with the brand. However, if one did, it would likely be in partnership with an established prestigious jewellery brand.
Editor’s Note on previous years and this study
Retail Insider has been tallying the number of international retailers that have entered Canada with first brick-and-mortar stores since 2014. The following is a breakdown with hyperlinks to previous reports:
In 2022, we reported in Retail Insider the magazine that 21 international brands entered Canada by opening stores, while in 2021, we also saw 21 international retailers enter the country.
In 2020, we counted 13 brands that entered Canada by opening stores.
In 2019, we reported that 30 retailers had entered the country by opening stores, which was about the same number as in 2018.
In 2017, a record-breaking 50-plus international brands entered the Canadian market.
In 2016, Retail Insider wrote a special edition piece for Retail Council of Canada’s publication, Canadian Retailer, within which we listed 21 international retailers that had come to Canada by opening stores that year.
In 2015, we reported that 28 retailers had opened their first freestanding locations in Canada that year. And, in 2014, we counted 20 international brands that entered Canada by opening stores.
Baskin-Robbins King Street in Toronto (Image: Baskin-Robbins)
As Baskin-Robbins continues to expand its footprint across Canada, the brand is also sprucing up a number of its locations throughout the country.
Natalie Joseph
Part of Inspire Brands since 2020, Baskin-Robbins expects to open another 50 locations across Canada by 2030.
Natalie Joseph, Senior Manager, International Field Marketing for Baskin-Robbins Canada, said more stores will be opening in the Greater Toronto Area, Vancouver and Ottawa.
“Definitely lots of growth happening,” she said.
Baskin-Robbins Oakville (Image: Baskin-Robbins)
Currently, the brand has 115 locations across Canada.
“For 2024, we’re on target to open seven locations, brand new stores. But what I think the really big story is as well we’re developing and growing but we’re also committed to remodeling every single store in our system and the remodels have started,” she said.
“We’re doing it in phases. We started Q1 and we have a commitment of remodelling 25 locations by the end of Q2 and then we will pick up the remodel again in the November window. Obviously we’re not going to close our stores during the peak season. We’re on target to remodel 50 of our 100 locations that are required to remodel.
“You’re just going to see an overall change in our brand expression and our new brand expression is actually called the Moments design and you’ll see that in our new stores as well as the remodeled stores.”
Baskin-Robbins at 1029 King St W (Image Provided)
Recently it announced two franchisees have combined their efforts and have a plan to open 10 new stores in the Ottawa region over the next five years.
“Baskin-Robbins has a large franchisee base. We’re really interested in franchisees who want to grow in multiple numbers, not just grow one or two shops,” said Joseph.
“So with the Ottawa market, here we had two established franchisees who wanted to join their concerted efforts and expand in that market. And there’s room to grow. Ottawa is a big space. We were pretty scattered out . . . There’s definitely lots of room for expansion. So when these franchisees came to us with a plan, we thought they were great franchisees, they’re approved for growth and expansion, and it was just the right fit.”
Baskin-Robbins opens the doors to its third location in Metro Vancouver, 111th in Canada, with a new shop at 492 South West Marine Drive , Marine Drive Station. (Image: Baskin-Robbins)
Expansions have also been announced in Vancouver and Calgary.
“We have a franchisee who is committed to opening 15 locations in and around the Vancouver area as well as the Calgary market,” said Joseph. “So it’s one particular franchisee who is building his Baskin empire.
“They’re looking at between six and 10 (locations) in Calgary.”
Joseph said locations are required to refresh, remodel, redesign every 10 years.
“Back in 2013, we put a lot of investment behind the entire system and we remodeled all stores all at the same time and here we are 10 years later having to remodel again only we are doing so with a whole new brand expression which originated out of the U.S.,” she said.
“In the U.S., they started to change the logo, the look and feel, the experience overall and of course that’s what we’re adapting.
“We have incorporated digital menu boards in all of our stores. That was the first phase of our remodels even before the stores needed to shut down and take on this new look. Last year we rolled out digital menu boards across all systems so it’s pretty impactful. It’s no longer the menu boards with the stickers for the pricing. It’s all animated. We do full menu board takeovers. It’s really colourful, impactful and it speaks to the consumer. Other changes that they’ll see are aesthetic changes. The tiles in the back and on the floor. The ceilings are no longer going to be white. They’re going to be a different colour. The logo is a big piece of it. We’ve gone from our traditional Baskin-Robbins logo which was blue and pink to now a pink and brown. The whole design of the shop is definitely a fresher look, a newer take. There’s lots of chrome and stainless steel. It’s definitely noticeable as soon as you walk in from a current store to a remodeled store or a brand new store.”
Baskin-Robbins North York (Image: Baskin-Robbins)
Baskin-Robbins was founded in 1945 by two ice cream enthusiasts who shared a dream to create an innovative ice cream shop that would be a neighbourhood gathering place for families. Celebrating 52 years in Canada earlier this year, Baskin-Robbins operates 115 locations in Ontario, Quebec, Manitoba, and British Columbia. Each year, more than 300 million people around the world visit Baskin-Robbins.
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.
Canadian retail giant RONA has completed the transition of 56 stores from the Lowe’s brand to RONA+ throughout the country and now has launched as well a pilot project of changing the banners on its Réno-Dépôt stores in Quebec to RONA+.
Catherine Laporte
Catherine Laporte, Senior Vice-President, Marketing and Customer Experience with RONA, said the first Lowe’s conversion took place last July and the last one was February 29.
Laporte said all the former Lowe’s locations were converted.
“Basically RONA+ the idea was that it was RONA and the best of Lowe’s. So that was like the initial idea where we wanted to give the best of RONA which especially in the west of Canada has been known mostly for building materials and less of a big box footprint and bringing some of the best things of Lowe’s which was the decor, the services, the home decor services and bringing this together. That was the original idea,” said Laporte.
“As we moved towards that, because we have a larger footprint than a regular RONA store, we will be including more experiences within the stores. So think of shop in shop with key vendors, think of like more experiences on the weekend. We are still crafting and developing this strategy but this is the intent behind the (RONA+).”
The new RONA+ banner is now in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario.
RONA+ (CNW Group/RONA inc.)Inside the new RONA+ store at Emerald Hills in Sherwood Park, Alberta. Photo: Christa Patterson
RONA has a network of 425 corporate and affiliated dealer stores from coast to coast with its four banners RONA+, RONA, Réno-Dépôt and Dick’s Lumber.
There are currently 20 Réno-Dépôt stores in Quebec, with three to be converted to RONA+ stores in the next few weeks.
There is a network over 200 affiliated dealer stores across Canada.
Since it has different types of stores in its network, including big boxes and proximity stores, the size of each store varies. The average size of a RONA or RONA+ store in Canada is about 100,000 to 117,000 square feet. But the network is very diversified and there are also smaller stores, including small urban stores or smaller stores that boast a large lumber yard.
Laporte said no new stores are planned for the company as it is focused on the conversions.
New RONA+ store at Emerald Hills in Sherwood Park, Alberta. Photo: Christa Patterson
She said the success of the RONA+ rollout has led to another pilot project in Québec with the planned conversion of the Hull Réno-Dépôt to the RONA+ banner as a first step, followed by the Sherbrooke and Charlemagne Réno-Dépôt stores later this spring.
“This will pave the way for the imminent arrival of this new banner in Québec. Through this process, the company is looking to build on the strong legacy of the RONA brand and build momentum for this beloved Canadian-operated household name,” said the company.
Laporte said this is the most significant repositioning of the RONA brand in the last two decades.
“We’re refocusing our marketing around RONA, putting this brand, with its 85 years of history and consumer trust, at the core of our efforts. By emphasizing our commitment to our customers, the uniqueness of our stores, and our relationship with local communities, we reinforce the values of proximity and commitment that distinguish our network,” she said.
Image: RONAInside the new RONA+ store at Emerald Hills in Sherwood Park, Alberta. Photo: Christa Patterson
RONA is also launching a new visual identity, only for RONA affiliated dealers. It aims to support the organization’s ambition to become the strongest network of affiliated dealers in the country. The outdoor signage and the interior branding elements of these stores were redesigned to highlight the entrepreneurial spirit of independent RONA dealers and capitalize on the brand’s notoriety. The new identity will be deployed in RONA affiliated stores starting mid-April.
“One of the key strategic pillars of the RONA relaunch has been the dealers. What we wanted to signify and make clear to the customers is that some of these stores are independently operated,” explained Laporte. “So they will have new facades and new outdoor signs which clearly calls out that this store is operated by an independent merchant.
“The other piece is as you can appreciate some of them have been with us for more than 50 years or close to 60 years and for each of them they have value, they have specific value, specific history. And we wanted them to be able to call out at the community level. These are some of the small initiatives but meaningful initiatives that we’re making to really differentiate the dealer network from the RONA+ and from the corporate stores.”
Inside the new RONA+ store at Emerald Hills in Sherwood Park, Alberta. Photo: Christa Patterson Inside the new RONA+ store at Emerald Hills in Sherwood Park, Alberta. Photo: Christa Patterson
In a statement, Andrew Iacobucci, President and CEO of RONA, said:
Andrew Iacobucci
“We are making major investments in our brand, which has been a household name in Canada for nearly 85 years and this is just the beginning. Now that we’re fully Canadian-operated, we have a tremendous opportunity to rethink how we serve Canadians with the products and service they rightfully expect from RONA, on every channel they use.”
The Réno-Dépôt store in Hull will be the first in the province to convert to the new banner in March, followed by the Sherbrooke and Charlemagne stores in April. Laporte said the results of these three store conversions will determine if the rest of the brand will be converted.
Isabelle Laliberté
“This is an important step towards realizing our vision for the future of RONA. We are confident that this pilot project will bring positive results and lead the way for the upcoming arrival of this new banner in Quebec,” added Isabelle Laliberté, Senior Vice-President, Corporate Stores – Quebec, at RONA inc. “Our priority in this transition is to offer the best possible experience to our customers in the Hull, Sherbrooke and Charlemagne regions; we will continue to serve them with the same passion.”
The changes are being reinforced with RONA’s new advertising campaign, imagined by Sid Lee, which is centred on people who love to create, bringing together professional experts and DIYers. Without being too serious, it adopts an engaging and entertaining tone, encouraging conversation while remaining refreshing and philosophical, said the company.
To watch the very first ad to be broadcasted as part of this campaign, click HERE.
Former PLUS at Yorkdale Shopping Centre (Image: PLUS)
PLUS, Canada’s luxury streetwear shop, has opened its new flagship store at the Yorkdale Shopping Centre in Toronto.
Liam Blackadder, the retailer’s Creative Director, said Yorkdale was a natural for the company’s expansion.
“It’s the centre of style, being that epitome of shopping and go-to place for retail within Canada. Ever since we opened our first flagship at that mall in September 2020, that was our first time opening a flagship there, it was evident how impactful that mall is, especially footprint wise,” said Blackadder.
“Traffic at that shopping centre definitely is a step above the rest in terms of retail in Canada. Definitely wanting to stay in that mall. That mall obviously has a lot of renovations and changes going onto there. So with that, we wanted to increase our footprint into a larger space to kind of show our growth as a company and kind of make sure we keep that Yorkdale location as one of our staples.”
The company’s first location in Ontario was a temporary store in Yorkdale in 2019.
PLUS Yorkdale (Image: PLUS)
The Yorkdale store is the brand’s largest store of its eight locations in Canada.
“As a young company in 2022 from 2017 that was our first time for designing a space and trying to consider everything. Now fast forward four years later it opens. We’ve had a number of spaces, I believe almost 20 in our six years, seven years of operations, whether that’s through specialty leases, temporary stores, moves, etc,” said Blackadder.
“So definitely we’ve learned a lot. Seen what works for us. How it affects our customers. What kind of experience you want to give a customer. Making that move, having that opportunity to move into a bigger space, kind of feels like a refresh. And shows that new space we were willing to take to grow within that mall.
“Being a young, independently owned company, we have to be pretty diligent with the decisions we’re making while also exploring ways we can do things a little differently and stand out and make an impact. Definitely we try to do a bunch of that with our new locations.”
He said the brand considered how people interact with the space in designing the new Yorkdale store. The floor plan was changed. Everything is more integrated into a shopping experience in the layout and how the products are displayed. A big digital display video wall has been incorporated into the space as well as a lounge.
PLUS Square One (Image: PLUS)PLUS CF Pacific Centre (Image: PLUS)
Blackadder said the company in 2023 did some housekeeping with its stores and did some work for a new space in its Vancouver location with a new design there as well as a complete revamp of the Square One location in Toronto.
“In our spaces, we’re always just looking to create a space that’s inviting and welcoming and fosters community,” he said, adding they are spaces for people looking for that wow factor as they shop.
“Our demographic kind of ranges all the way from 13 year olds who are excited to get into streetwear by this whole allure and newness of it, all the way to people who are in their late 40s, 50s who have been collecting sneakers and are into the scene their entire life and now they’re seeing it accessible at their fingertips. It’s something new that draws them in again and where they can have those in-store conversations. We definitely do cater to a large scale of people.”
PLUS CF Toronto Eaton Centre (Image: PLUS)PLUS CF Sherway Gardens (Image: PLUS)PLUS Vaughan Mills (Image: PLUS)
Blackadder said the company is not ready at this point to discuss any future growth plans.
“The company PLUS stands for people like us, and with that we aim to create environments for people like us; whether they are serious collectors, enthusiasts or just entering the space.” said Blackadder in a previous interview with Retail Insider.
“We sell highly sought-after sneakers, collectibles and objects. We’ve also just recently introduced vintage clothing. A curated collection of one of a kind garments. We also do a lot of trading cards like sports and Pokémon. Our products are geared more towards enthusiasts in their respective spaces.”
Starbucks Rewards Program In-Store Signage (Image: Dustin Fuhs)
As loyalty programs continue to rise in popularity, do they really meet consumer expectations? Jean-Pierre Lacroix, president of SLD, and Matthew Wilson, a communications expert at SLD, take a deeper look into the current state of loyalty programs, challenges, premium programs, and potential trends.
Loyalty programs have become a necessary strategy for consumer engagement among retailers across Canada, evolving significantly from simple point collections to upgrade programs offering increased personalization and a seamless shopping experience. As the cost of living in Canada rises, consumers are constantly looking for ways to save money and are on the hunt for loyalty programs that not only offer great perks, but are meaningful. Although the percentage of subscribers to loyalty programs are increasing – consumers might leave some deserted.
Subscription at its highest, but only half are used.
Loyalty Programs on an iPhone (Image: Dustin Fuhs)
Wilson says even if shoppers subscribe to a retailer’s loyalty program, it does not mean they will use it as they tend to fallback on core programs, making it challenging for retailers to be unforgettable.
Matthew Wilson
“It seems that in Canada at least, there has been a record amount of people that are subscribed to loyalty programs. In fact, it is almost about 14 programs per Canadian on average; however, right now, it seems that only half of the loyalty programs are actually being used, which is a really big drop off from the percentage of them that are actually signed up. So right now, I would say the scene of loyalty is diminishing … they are not quite offering enough for consumers to really latch on and to really have them as one of the core that they use,” says Wilson.
This creates a real challenge for retailers. As consumers are eager to sign up for savings and rewards – their engagement decreases if the program fails to capture their attention, offer value, or convenience. Wilson says there is a pressing need for retailers to create programs that are different and are valuable at every step, driving brands to rethink how they shape loyalty programs so consumers are not only eager to subscribe, but eager to use it.
Jean-Pierre Lacroix
“Consumers are looking for value because of inflation and are also looking for a seamless loyalty program where they don’t have to do a lot of work – hence why credit card loyalty programs are doing well, such as Aeroplan. You don’t have to pay attention, just use your credit card. Loyalty programs that require a lot of investment and effort, are programs that provide limited benefits, such as Air Miles – it is suffering because its value proposition is limited,” says Lacroix.
These 14 loyalty subscriptions also might come with mobile apps. Lacroix says a consumer might have around 30 to 40 apps on their phone, and possibly 14 of those are loyalty apps. Depending on a consumer’s phone, they may not have enough storage space to download and use all of these loyalty apps.
“You are fighting with the infrastructure these things live in and you have to compete with the other apps – that is the challenge, there is already so much noise, clutter, and activities happening on mobile devices,” says Lacroix.
Raising the bar: Key players challenge rivals
Optimum Membership at Loblaws (Image: Dustin Fuhs)
Key players such as Shoppers Drug Mart with its PC Optimum program, Scene loyalty program, and Starbucks Rewards are setting high standards for value and consumer engagement. These brands are recognizing the importance of personalizing and providing a seamless experience for consumers:
Optimum Points Card: This loyalty program has established a great concept where consumers have the opportunity to collect a significant amount of savings, setting the standards high for other retailers and is difficult to match.
Scene Loyalty Program: Offers flexibility on how points can be redeemed, is linked with Scotiabank, and is valuable. You can redeem points by collecting the direct cash, when you go to the movies, or restaurants. This model has adapted with what consumers want as it began as a points system and has evolved to meet what consumers are looking for today.
Starbucks Rewards: Offers consumer loyalty through personalization and is easy to rack up points and collect a reward as for some, Starbucks is a weekly or daily stop. Recently, the brand has also partnered with TD, making it easier and faster to gain rewards.
These are just three among other top loyalty programs in Canada.
“These programs have established a really high value equation and you can collect significant amounts of savings through their programs and by having that level of value – makes other loyalty programs less appealing,” says Lacroix.
Premium programs on the rise
Premium loyalty programs focus more on engagement and personalization among consumers. These paid memberships offer enhanced benefits, such as exclusive discounts, early access to sales, and special events – going beyond what is available in free loyalty programs. Programs such as Amazon Prime and Plum Plus with Indigo are leading examples as both of these cater to consumers who are willing to pay for better services and to those who are more likely to stay loyal to the brand.
The trend of premium programs is growing and an example of that would be Amazon Prime as Wilson says its subscription has doubled in the last four years.
“One of the most interesting things we found in our research was that the paid programs are what delivered the biggest growth for loyalty programs. One of the reasons why these paid programs are successful is because in an era where Canadians are trying to find savings, even though these options are paid, they deem them not only worth it, but generous in what they are giving,” says Wilson. “Oftentimes, these premium programs give you exclusive access to events or sometimes discounts such as ten per cent or maybe 20 per cent off in-store. So that customer is really frequent, well worth it, and has generous offerings.”
Plum and Plum+ at Indigo
Lacroix and Wilson say premium loyalty programs are effective and implies the trend of exclusive, personalized, and more valued loyalty experiences will be on the rise. Wilson says there will always be a free option for consumers, but thinks there will be more tier options such as around 20 dollars a month giving “an option for people who really love the brand and want to shop more often – I think they will definitely be enticing,” says Wilson.
Relevant and Personalized Offers
adiClub at adidas Halo CF Toronto Eaton Centre (Image: Dustin Fuhs)
Loyalty programs are not all about savings as Wilson says it is also about “customizing those savings and personalizing those savings to ensure Canadians really get offers and deals that are relevant to them. Not just the run of the mill type of personalized offer, but something that really speaks to consumers and makes them want to come into the store and spend more,” says Wilson.”
With the new data regulations, Wilson says collecting data will be harder and retailers need to adjust and find new ways to collect consumer information.
Data that was previously available is getting scaled back and retailers need to anticipate they will receive less and less data, and know how to make the data work for them. One example is the Starbucks birthday rewards.
“Everyone knows that on your birthday, you can go to Starbucks and get a free drink. That is one of the easiest forms of personalization, but it has worked so well across so many different demographics that something as simple as a free drink on their birthday can make them feel special enough to go to Starbucks, get that drink, and return in the future. So I think it is about doing more with less,” says Wilson.
Wilson says Starbucks offers additional personalization through order history and is another easy way retailers can personalize its loyalty program. In Wilson’s article “The Future of Loyalty Programs,” he mentions several ways a brand can provide personalization including gamification for CPG which “has a positive effect on brand impression, repeat purchases, and referrals to family and friends. One example would be Roll Up The Rim at Tim Hortons as it encourages consumers to engage, play, and possibly win a reward.
Current concerns of Loyalty Programs
Starbucks at Hudson’s Bay in CF Toronto Eaton Centre (Image: Dustin Fuhs)
The main challenges retailers have with loyalty programs are ensuring data privacy and marketing. Lacroix says as there have been several breaches in the past in loyalty programs, consumers are wary of what information they provide.
“There are going to be some challenges for reward programs. But the reality is, if you walk into our program, you need to be willing to accept the amount of information that you are sharing. As there have been reward programs and credit card companies being hacked in the past, consumers are going to be challenged to share information because of the level of security they are concerned about – it is the number one issue in using mobile apps,” says Lacroix.
To manage these concerns, Lacroix says retailers should have a third party validation and show its platforms are being monitored and are secure: “no one is going to take a word of a retailer on their level of security.”
Another main issue is regarding marketing and its running expenses of promoting it. For brands who are not well known or who don’t have a high consumer rate, it might be difficult to promote and compete against others.
“There are certain brands like Starbucks that have a high customer frequency and the program is built into the app they have created – it becomes seamless, you don’t have to market it because it just shows up and you use it. But for other brands where the frequency is not as high, it is about advertising, spending money to communicate that you have a loyalty program,” says Lacroix.
Along with the running expenses, as retailers are now trying to go out on their own, it creates a challenge of standing out.
“Everyone knows about PC Optimum. How can retailers get in front of that to get their audience? A lot of that comes down to marketing and there is just not enough investment in marketing and not enough investment in marketing smartly to their consumers and getting the message across,” says Wilson.
As AI continues to evolve, so will loyalty programs as they can leverage AI to help them hurdle these challenges, provide a better personalized consumer experience, and an easy program for consumers to follow. Retailers who successfully do this will be able to attract consumers, keep consumers interested, and will be able to take its loyalty program to the next level.
