Advertisement
Home Blog Page 565

Krispy Kreme Doughnuts Gears Up for Nationwide Expansion in Canada with Innovative Store Formats [Interview]

By
Mario Toneguzzi
-
Image: Krispy Kreme Canada

Popular doughnut brand Krispy Kreme is expanding its presence in Canada with new locations coming to Winnipeg, Calgary, Edmonton, Hamilton and Laval.

Levi Hetrick

Levi Hetrick, Chief Growth Officer & Operating Partner for Krispy Kreme Canada, said Krispy Kreme has two main formats in Canada: a Theatre Hub and a Doughnut Café.

“A Theatre Hub is where our doughnuts are made fresh from scratch every day. Guests can watch doughnuts rise as they go through the proofer, drop into the fryer, and travel down the conveyor line passing through a waterfall of glaze. Depending on the time of day, guests can also eat doughnuts fresh off the line while they are still hot – that is a main point of differentiation for Krispy Kreme vs any other doughnut shop and where the term “Theatre” comes from. You know we are making Original Glazed doughnuts when the “Hot Light” is on and glowing red. In addition to serving doughnuts, coffee and other beverages on-site, the Theatre Hub also serves as the doughnut factory for Doughnut Café shops, wholesale, mainly Costco, and our Fundraising program,” he said.

“A Doughnut Café is a location that doesn’t make doughnuts on-site, but receives two or more deliveries of fresh doughnuts every day. It offers a full product lineup including coffee and other beverages. We try to choose locations that are convenient for folks to stop in on the way to work, school, home, or just to hang out for a break. One secret tip – you can request for your doughnut to be heated in the microwave for eight seconds to try to replicate the “fresh off the line” experience. It isn’t exactly the same, but it does improve the experience in my opinion.”

Image: Krispy Kreme
Krispy Kreme Danforth (Image: Krispy Kreme Canada)

There are 14 stores in Canada. One of those is in British Columbia with a different franchise group.

Hetrick’s group has four locations in Montreal, one in Quebec City, and eight in the Greater Toronto Area.

He said one location is currently under construction in Winnipeg which will open in the next few months. 

Krispy Kreme first entered the Calgary market in 2004 near Sunridge Mall. The shop was popular, but ultimately closed during a broader re-organization in 2008, he said.

“Calgary has been a development priority for re-entry for a while and with help from Mike Kehoe and Monica Blachut at Fairfield Commercial we were able to find a great drive-thru site on Macleod Trail. The site is the former Ginger Beef location (9629 Macleod Trail) immediately adjacent to Schanks Sports Grill and just down the road from Ranchman’s Cookhouse,” he said.

“There’s no timeline for opening yet as we are just getting into the permit phase, but I will have updates as our construction schedules take shape. Targeting the first half of 2025 for opening.

“We knew when we wanted to come back that we wanted to be pretty central (in Calgary). A convenient location. A retail node that is accessible to as many people as possible. Macleod Trail being a main artery for Calgary was the prime spot to look. Chinook Centre to the north and Southcentre Mall to the south and Deerfoot Meadows over to the east, we kind of lucked out with a really great location. Drive-thru is a big part of our business so having the ability to have a drive-thru was pretty important to us.”

Image: Krispy Kreme
Krispy Kreme Danforth (Image: Krispy Kreme Canada)

The Calgary location will be about the same size as Winnipeg at 4,600 square feet.

“It will be almost an identical building as Winnipeg. We’ve created this prototype now that we plan to bring to Winnipeg, Edmonton, Calgary. I’ve got another site in Hamilton and Laval all in the next kind of 18 months we’ll be looking to open those,” explained Hetrick.

“It’s basically the same building. Brand new prototype for us. The first one is in Winnipeg and looking to bring that across a few different markets.”

Krispy Kreme Spadina (Image: Dustin Fuhs)

The Theatre Hub concept will be in Winnipeg and Calgary.

“The reason why we call it a Hub is because it will also be where when we deliver to Costco or other doughnut cafes or other wholesale outlets, that’s where all the doughnuts for that market will be made,” said Hetrick.

“The other important thing for Krispy Kreme is everything is made fresh every day. We’re constantly making doughnuts.”

Robson Street in Vancouver in Flux as New Retailers Prepare to Open Stores [Feature]

By
Craig Patterson
-
Robson Street in Downtown Vancouver. Photo: Lee Rivett.

Vancouver’s Robson Street is seeing new retailers opening as the popular shopping street continues to transition. Several new retailers have recently signed leases on Robson Street and will be opening in the coming weeks and months, while some closures and a cancelled project will impact the area.

The main commercial stretch of Robson Street spans from Bute Street to the west to Hornby Street and the Vancouver Art Gallery Square to the east. We’ll also discuss retail happenings on Robson Street near Granville Street, which recently saw Nordstrom vacate a large space. 

Some new retailers have already been announced on Robson Street, and others will be announced in this article. The shift begins at the corner of Robson Street and Burrard Street, with the recent announcement that German athletic brand adidas will be taking a massive two-level space recently vacated by Victoria’s Secret. It will be a first-to-Canada concept store with more details soon to be announced. 

Former Victoria’s Secret Location at Burrard and Robson in downtown Vancouver. Photo: Lee Rivett.

One interesting retail move not yet announced publicly is the exit of Roots from its iconic corner space at the northwest corner of Robson and Burrard Streets. Sources told Retail Insider that Vancouver-based Arc’teryx came in and scooped up the lease from Roots, which didn’t necessarily want to leave its prime corner space with a retail location considered to be a flagship store. Retail Insider interviewed Roots co-founder Michael Budman about the 4,500 square foot store in February of 2014, when Roots had renewed its lease and planned to renovate and expand the top-performing store. One source told Retail Insider that the new Art’teryx would span about 6,400 square feet, which means there could be vertical expansion of the building.

The Roots building at 1001 Robson Street was occupied by women’s fashion retailer One + One from the 1980s until 1996, when Roots secured the lease. One + One said in an article published on October 12, 1996 in the Vancouver Sun, that its rent had been $88 a square foot and that the rent for new tenant Roots would be about $150 a square foot. 

Arc’teryx already has a store location very close by at 813 Robson Street, and parent company Amer Sports is said to be converting the 4,020 square foot building into a retail location for its brand Peak Performance. Arc’teryx substantially renovated the building in 2017 for its new store, having secured the space from previous retail tenant Le Chateau. 

There are rumours that Roots may have secured a smaller retail space formerly occupied by TWG Tea at 929 Robson Street, which are not yet confirmed.

Roots on Robson (at Burrard) in downtown Vancouver. Photo: Lee Rivett.
Arc’teryx on Burrard (at Robson) in downtown Vancouver. Photo: Lee Rivett.
Future JD Sports at former Club Monaco space on Robson Street in downtown Vancouver. Photo: Lee Rivett.

Club Monaco recently vacated its storefront at 1042 Robson Street after occupying the almost 9,000 square foot building for over two decades. Construction hoarding recently went up for UK-based JD Sports, which is expanding across Canada under a mandate with broker Jordan Karp of Savills Canada who negotiated the lease deal on behalf of the retailer. Mario Negris and Martin Moriarty of Marcus & Millichap represented the landlord in the deal. 

Other retailers are opening on the street, including watch brand Swatch which seems to have been delayed in its construction on a store at 1155 Robson Street. Lush Cosmetics has also finished renovations on its store to add a Lush Spa concept, a first for Canada, at 1020 Robson Street. 

Lush Spa on Robson Street in downtown Vancouver. Photo: Lee Rivett.
Future Esprit store on Robson Street in downtown Vancouver. Photo: Lee Rivett.

Fashion brand Esprit is about to make its return to Canada with its first concept store set to open at 1088 Robson Street. The retail space had been occupied by J. Crew prior to its Canadian exit about three years ago. Esprit also plans to open a flagship in Toronto this year.

On the 900 block of Robson Street, luxury brand Salvator Ferragamo is expected to eventually vacate its space at 918 Robson Street, in a building also targeted for redevelopment. Ferragamo would relocate its Vancouver retail operations to Oakridge Park in 2025, according to sources, vacating its 918 Robson Street premises where Ferragamo has had a store since the spring of 1981. 

The 800 block of Robson Street is now part of a public plaza with the Vancouver Art Gallery to the north and a courthouse complex to the south. The 700 block of Robson Street will also be seeing some significant changes as tenants are signed for the Nordstrom building which has been vacant since last spring when the retailer exited its Canadian operations. There are rumours that Quebec City-based large format fashion retailer La Maison Simons could occupy the top two retail levels of the former Nordstrom, though nothing is confirmed either by Simons or landlord Cadillac Fairview, which owns CF Pacific Centre. At some point in the future, if increased height and density could be obtained from the City of Vancouver, the site could see tower redevelopment.

Salvatore Ferragamo on Robson Street in downtown Vancouver. Photo: Lee Rivett.
Robson Street Walkway between the Law Courts and the Vancouver Art Gallery. Photo: Lee Rivett.

At the southeast corner of Granville and Robson Street, new retail is expected in a vacated space that once housed Payless Shoes. Prior to the pandemic, Japanese fashion brand A Bathing Ape (or BAPE) was said to have leased about 13,000 square feet, prior to deciding to cancel the deal (as well as two others in the city) due to issues overseas. 

The multi-level 90,000 square foot Bonnis-owned building at the northeast corner of Robson and Granville Street was recently listed for sale, housing big-box retailers including Best Buy and Winners. A recent Daily Hive article pointed out that the assessed value on the building is almost entirely in its land, indicating a potential redevelopment if the owner can obtain increased height and density allowances from the City. If substantial height and density were granted, an office tower could be expected.

Robson Street will continue to attract new retailers as shoppers continue to visit the clustering of stores in the downtown core. Since the 1980s, national and international brands have operated stores on Robson Street, which in decades before had been a street nicknamed Robsonstrasse with various German businesses. Robson Street struggles with aesthetics today, with its relatively narrow worn sidewalks having not been updated in decades. It might be a good idea for the City of Vancouver to consider downtown street updates, given that the Oakridge Park project on the West Side will be completed in the spring of 2025. Oakridge Park will be a sparkling new enclosed shopping centre that is expected to take retail foot traffic and dollars away from downtown Vancouver, particularly at a time when the downtown core struggles with social issues such as homelessness, addiction and crime. Robson Street will need to compete with suburban shopping centres in the years to come, and already we’ve seen notable vacancies in the area.

Multi-level 90,000 square foot building at the northeast corner of Robson and Granville Street. Photo: Lee Rivett.
Former Payless Shoesource on Granville Street and Robson Street in downtown Vancouver. Photo: Lee Rivett.

Wendy’s Bold Dynamic Pricing Move Has its Positives and Negatives [Op-Ed]

By
Sylvain Charlebois
-
Image: Wendy's

Dynamic pricing, a concept that may still be unfamiliar to some, is poised to become a more prominent feature in our daily transactions, particularly in the food industry. This pricing strategy, which adjusts prices based on demand, is not a novel idea. It has long been employed in sectors such as airlines, theme parks, and hotels, where prices fluctuate to either entice customers during off-peak times or capitalize on high-demand periods. The acceptance and understanding of this model as a means to optimize sales are well-established in these non-food domains.

The food service and retail sectors are no strangers to dynamic pricing either. With the advent of digital price displays, many retailers have been quietly implementing this approach, adjusting prices multiple times a day as needed. However, the sensitivities surrounding pricing in the food industry are distinct. Food is not just another commodity; it is a necessity, and the ethics of its pricing carry a different weight compared to, say, selling tickets for a vacation to Honolulu.

Image: Wendy’s

The recent announcement by Wendy’s in the United States that it will adopt dynamic pricing during busy hours marks a significant moment in the food industry. This public declaration is unusual in a sector where price changes are often made discreetly. Wendy’s is essentially advising its customers to visit during quieter hours to save money, which could be perceived as an inconvenience. It’s akin to transforming its operations into a stock exchange, where customers are encouraged to ‘buy low and avoid buying high.’ This move is particularly intriguing from a public relations perspective, given that Wendy’s competitors have not made any public announcements regarding dynamic pricing.

The power of dynamic pricing lies in its ability to bring predictability to the inherently unpredictable business of selling food. Factors such as weather, local events, or even comments made by celebrities can drive consumer behaviour in unpredictable and sometimes irrational ways. By implementing dynamic pricing, businesses can achieve a more optimal balance between supply and demand, thereby gaining more control over their operations, including inventory management, staffing, and other aspects of the business.

Moreover, dynamic pricing has the potential to reduce food waste, a critical issue in an industry characterized by low margins. According to a study published in Marketing Science, dynamic pricing can reduce waste in food retailing by 21%. While this model can create a better equilibrium between supply and demand during operating hours, it is not without its challenges for consumers. For example, during the empty shelves phenomenon of March 2020, dynamic pricing could have led to immediate price spikes, pushing food inflation to unprecedented levels when many were seeking to stock up and stay safe.

Image: Wendy’s

The increasing availability of artificial intelligence and other technological tools has made dynamic pricing a more viable option for food executives. Wendy’s decision to publicly embrace this strategy could be seen as an attempt to demystify a practice that has already been in use, albeit quietly, within the industry. As consumers become more aware of time-based pricing, they may realize that many prices have already been affected by such an approach, even if it was not explicitly known.

The repercussions of Wendy’s announcement will be interesting to observe. Customers may choose to penalize the chain for its transparency on dynamic pricing and opt for competitors, unaware that these alternatives have likely been employing similar pricing strategies for years. In the end, the public’s response to this shift towards more dynamic pricing in the food industry will provide valuable insights into consumer behaviour and the acceptability of such practices in the context of essential goods like food.

Growing Crisis in Retail Inventory in Canada as Factory Direct Liquidates Stores [Interview]

By
Mario Toneguzzi
-
Factory Direct Closing (Image: A.D. Hennick & Associates)

The liquidation sale process for Vaughan, Ontario-based discount retailer Factory Direct’s 14 stores which are closing, may be a signal of more to come in the industry that continues to be challenged.

Alex Hennick, of A.D. Hennick & Associates, along with partner Jonathan Ordon from Danbury Global, is handling the Factory Direct liquidation and said the process which began recently has gone really well.

Alex Hennick

Hennick said the liquidation industry has been “overwhelming” recently. 

“We are getting so many more calls than we’ve ever had. For excess inventory, a lot of manufacturers are sitting on goods. They had record sales in 2020 when everyone was at home, interest rates weren’t as high. In 2021 very similar, even better than 2020. People still had disposable income. They weren’t maybe traveling as much. 2022 it was terrible. It was something almost where Black Friday never really happened for a lot of the retailers. Christmas sales were down,” he said.

Factory Direct Closing (Image: A.D. Hennick & Associates)
FactoryDirect.ca

“But what happened is because a lot of people had record sales in 2020 and 2021 they got ready for 2022 and over-inventoried . . . And the sales never happened. So we’ve seen in the last couple of years, but definitely way more now, a lot of manufacturers are sitting on inventory. Retailers shutting down. So they have canceled orders. It’s been pretty significant in terms of excess inventory.

“To me it’s pretty scary. And I think it’s getting worse, at least from what we’ve seen. There’s a lot of inventory on the market these days that just doesn’t have value at all. It’s going to be a tough time ahead.”

A.D. Hennick & Associates began in 2009. 

“We work with manufacturers, distributors and bankruptcy trustees to purchase larger quantities of inventory. When we work with manufacturers and distributors we’re typically purchasing last year’s model, canceled orders, discontinued. We’re working with brands where we’re working on major brand restrictions. So the number one question is where do you not want your products sold and do you want to avoid any specific retailers, do you want to avoid these countries, do you not want to have it online,” said Hennick.

“So we find out restrictions as to where we can’t sell it and then we’ll purchase it in volume and then resell it to the appropriate channels.”

FactoryDirect.ca
Factory Direct Closing (Image: A.D. Hennick & Associates)

Hennick said the company is seeing more stock right now for anything relating to the home for example. Because interest rates are high, many people are not buying homes therefore they’re not doing renovations. Anyone who sells furniture, lighting, appliances, etc., are sitting on a lot of inventory. With retailers having a sale to the public with inventory going on the market at 50 to 80 per cent off, it is going to affect every other retailer.

“So not only has it affected them but for a period of say two months while they’re running a bankruptcy sale why would any other customer go to their competitors when they are closing at that price. Now these other stores are affected. Maybe it comes back where there’s less market share and there could be more opportunity for them down the road but temporarily it’s bad and it gets even worse.

“Similar to what we’re doing right now. We’re running the sale right now for Factory Direct . . . It’s an exciting opportunity for us to be able to run an incredible $10 million liquidation sale with high end goods, brand names Apple, Samsung, LG. We’re doing everything from store level. So we have 14 stores. But we have the best brands and the best products in the world at incredible prices. So because of this our stores are packed. We’re restocking daily and the deals are there. But a lot of other people who sell similar products, for customers it wouldn’t make sense for them to go and buy there until such time that our sales are over because our prices are very aggressive and our quality of products is also good. It’s something where by us doing this sale it further impacts the market for the kind of product we’re selling.”

Factory Direct Closing (Image: A.D. Hennick & Associates)

In a previous interview with Retail Insider, Hennick said that Factory Direct was a terrific retailer, and that the business had struggled financially due to a variety of factors and as a result, is no longer viable.

Hennick said a large amount of the company’s business comes from excess inventory but bankruptcies are another area where it builds relationships with the trustees to get an opportunity to bid on the assets of the bankrupt company.

“And depending on the situation, we’re either going to be running an auction, we’re going to be running a retail sale, we might buy it and then sell it wholesale.”

In the Factory Direct situation, the company was appointed to be the liquidators for the sale. All 14 stores are open where the liquidation sale takes place. A distribution centre is utilized where the stores are constantly filled with stock. There’s also a closing plan when the liquidation sales process is ending by first shutting down a few stores and depending on locations and leases over the next couple of months there will be a plan to shut down all locations and sell all the goods through retail. 

“We’re working on another deal right now. We’re making a bid to purchase the assets of a bankrupt company. If we win the bid, what happens is we purchase the inventory, I’ll send my team in and we’ll have four or five days to clear out their entire warehouse and in time we’ll just bring everything directly back to my warehouse where four to six weeks later we’re going to have an auction and we’re going to auction off all the inventory we bought in my facility.”

Factory Direct Closing (Image: A.D. Hennick & Associates)

Factory Direct filed an NOI under the Bankruptcy and Insolvency Act on February 7 and court approval gave the green light to liquidate the chain.

Factory Direct said in filed court documents that it had struggled with declining sales and increased costs following the pandemic. The retailer listed liabilities of about $3.5 million as part of its filing, including approximately $1.6 million in termination and severance pay owed to its employees.  High economic inflation and increased minimum wage requirements resulted in significantly increased overhead costs for the company, which failed to see sales increase enough to make the business profitable. The company lost about $1.7 million for the 11 month period ending November 30, 2023, according to court documents. 

Here’s What We Can Learn from Canada’s Response to Inflation in the 1980s and 1990s [Op-Ed]

By
Retail Insider
-
While the current episode of inflation has created challenges for many, this is not the first time Canada has gone through such an experience. THE CANADIAN PRESS/Sean Kilpatrick

For the last two years, inflation has been at top of mind for Canadians. It is a tax on households. When prices rise, the purchasing power of each dollar earned falls.

This generates huge losses for the economy, as well as households on fixed incomes, and increases uncertainty, making it more difficult to plan for the future.

The real question in the minds of many economists is what the trend in inflation will be going forward, and when interest rates will begin to fall and bring relief to Canadians.

While this episode of inflation has created challenges for many, this is not the first time Canada has gone through such an experience; we have been here before.

Inflation in the 1980s and 1990s

A middle-aged man in a suit speaks to someone while looking off screen
John Crow, Governor of the Bank of Canada from 1987 to 1994, talks to reporters at a news conference in Ottawa in March 1993. CP PHOTO

Canada faced a serious inflation problem in the 1980s and 1990s when the consumer price inflation (CPI) index hit 13 per cent in 1980 and was still at seven per cent in 1991.

To solve this issue, in 1991, the Bank of Canada and the Minister of Finance agreed on a plan to bring inflation down to a target level. Initially, this was six per cent, but this was lowered to two per cent (within a one to three per cent range).

The Bank of Canada uses the overnight rate to control inflation. This rate determines the rates of government treasury bills, the bank rate and variable rate mortgages.

In August 1981, the Bank of Canada pushed this rate to well over 20 per cent — equivalent to a variable rate mortgage cost today of almost 23 per cent. In May 1990, the central bank increased the rate to almost 14 per cent. In both cases, the central bank brought inflation down, but at the cost of a serious economic slowdown.

The pandemic fuelled inflation

The inflation target was most recently renewed in December 2021. It was remarkably effective until summer 2021, when inflation exceeded the three per cent range and peaked at over eight per cent in June 2022.

The root cause of this inflation was not domestic like it had been in the 1990s. Rather, it was in response to the COVID-19 pandemic, which affected all major Western economies.

Canada was not alone in increasing its debt so citizens could stay home and limit the spread of infection. The Bank of Canada lowered the overnight rate to 0.25 per cent and intervened massively to buy the government’s debt.

Initially, it was believed these inflation increases would reverse as supply chain challenges resolved, so central banks were slow to react.

But this assumption proved false. As the pandemic receded, Canadians began spending the money they had stored away during lockdowns. With low interest rates, the prices of assets like houses and shares dramatically increased. The Russian invasion of Ukraine added another economic shock.

By this point, high inflation had started to become entrenched in the expectations of businesses, unions and individuals. As history shows, once inflation becomes entrenched in the economy, it is very difficult to reverse.

Taming inflation

The Bank of Canada, although slow to react, successfully reversed the increasing inflation trend with 10 interest rate increases between March 2022 and July 2023 and by increasing the overnight rate to five per cent.

Inflation fell to 3.1 per cent in October and November 2023, creating optimism about returning to levels that would assure the Bank of Canada that inflation had been tamed.

An older man in a suit speaks into a microphone while a woman sits beside him. Behind him, Canadian flags can be seen.
Tiff Macklem, Governor of the Bank of Canada, and Carolyn Rogers, Senior Deputy Governor, hold a press conference at the Bank of Canada in Ottawa on Jan. 24, 2024. THE CANADIAN PRESS/Sean Kilpatrick

Despite core inflation remaining stubbornly above three per cent, this relative success allowed the central bank to hold the overnight rate at five per cent, increasing the possibility of lower interest rates.

This confidence was confirmed with the January CPI coming in at 2.9 per cent, just inside the Bank of Canada’s operating band.

It’s clear that central banks must act as soon as they can to prevent inflationary expectations from becoming entrenched in the economy. Once entrenched, the economy ends up bearing significant pain to reverse it — pain that is not spread evenly across the population.

Food and shelter costs

Interest rates and inflation are inextricably linked and they affect households in different ways. The CPI measures the rate of inflation on a basket of goods, but not all households consume every good in the basket, and not all prices increase at the same rate. Therefore, the impact of inflation varies across groups.

Younger, poorer households spend a disproportionately large portion of their income on food, which has seen major price increases over the last two years. Similarly, those commuting from the outskirts of metropolitan areas faced higher commuting costs when gasoline prices spiked.

However, the biggest anomaly is in housing costs, where increasing interest rates designed to lower inflation automatically translate into higher rental costs and imputed housing costs.

In its January 2024 CPI report, Statistics Canada reported that rental costs increased by 6.2 per cent year over year, while food price inflation was still up 3.9 per cent.

Together food and shelter costs amount to 45 per cent of the CPI, but younger, poorer households have disproportionately suffered because their price index is skewed more toward food and shelter.

A waiting game

The impact of higher interest rates in Canada’s mortgage market depends critically on the maturity of someone’s mortgage and rent controls.

Many households with variable rate mortgages, or those renewing mortgages during this period of high interest rates, are struggling with significantly higher mortgage payments.

Additionally, those who know they will have to renew their mortgage in the coming year are taking steps to adjust to those increases.

In fact, approximately 20 per cent of mortgages held by some of Canada’s biggest banks are negatively amortized, meaning homeowner payments do not cover the monthly interest charges. So, each month, the amount owed on the mortgage increases. Needless to say, many are urgently hoping for interest rate reductions in 2024.

Right now, the Bank of Canada is waiting to see what happens to inflation in the coming months before deciding whether to hold the overnight rate where it is, decrease it or increase it. This decision hinges on whether it feels the underlying or core rate of inflation aligns with its target zone.

The central bank is well aware that signalling a reduction too early could feed into greater consumer spending and higher inflation. So interest rates could stay where they are for several more months. While shelter and food price inflation will moderate, don’t expect actual prices to revert back to pre-pandemic levels.

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

By Walid Hejazi, Professor of International Business, Rotman School of Management, University of Toronto and Laurence Booth, Professor, Rotman School of Management, University of Toronto

Food Preferences in Canada Changing as Millennial and Gen Z Demographics Shift [Op-Ed]

By
Sylvain Charlebois
-
Too Good to Go at Ponesse Foods in St. Lawrence Market in Toronto (Image: Dustin Fuhs)

Millennials now outnumber Boomers in our country, as per Statistics Canada. As of July 1, 2023, the millennial generation (born between 1981 and 1996) has surpassed the baby boomer generation (born between 1946 and 1964) in population size for the first time. Boosted by immigration, Canada’s median age has dropped to 40.6 from 41.0 just two years ago. Consequently, Canada is more populous, younger, and no longer dominated by Boomers. Generation Z (born between 1997 and 2012) is expanding and has surpassed Generation X (born between 1966 and 1980) to become Canada’s third-largest generation, projected to become the largest within the next 30 years.

The implications of a growing and younger population for the food industry are multifaceted.

Millennials are distinct from other generations in their racial diversity, higher education levels, and technological literacy. They also face financial hardships later in life, unlike previous generations that typically encountered a challenging job market or an unforgiving economy at a younger age. Now at their economic prime, with some having families, Millennials are feeling the financial pinch from higher interest rates and rents. After a period of low unemployment and cheap money, this generation is facing a severe financial reality check.

This shift is evident in their grocery shopping habits. Over 86% of Millennials are actively seeking discounts, and over 66% have switched primary grocery stores in the last 12 months to find better deals, both percentages being the highest of all generations. Additionally, 43% are using food-rescuing apps to buy expiring food at a discount, again the highest usage percentage of all generations. The economic and financial transition Millennials had to navigate has been drastic.

Previously, Millennials frequented specialty stores, seeking fresher, natural, environmentally conscious food with clean labels. However, their new financial reality has forced a shift in priorities. Despite this, their values will not disappear, and as they become more economically influential, they will shape the food industry. Millennials’ preferences for ethnically diverse food and snacking will continue to influence grocers and food service operators. Our recent survey found that 28.3% of Millennials often replace meals with snacks, compared to just 8.7% of Baby Boomers, with lunch being the most replaced meal.

Interestingly, Millennials rely on friends and family as their primary source of information about food, unlike Boomers who turn to health professionals. They also pay close attention to food labels. Supported by social media, Millennials have challenged the food industry, advocating for clean labelling, better sourcing of ingredients, and healthier options. Despite facing financial challenges, they will likely continue to influence the industry and rely on the growing Gen Z group to push for changes for the betterment of everyone.

As the food industry adapts to the evolving preferences of Millennials, it will also need to anticipate the emerging trends brought by Generation Z. Gen Z’s values, shaped by their digital-native upbringing and heightened social and environmental awareness, will further push the industry towards transparency, sustainability, and innovation.

For instance, Gen Z’s preference for alternative protein sources is likely to accelerate the shift towards more sustainable food production. Their comfort with technology will also drive the adoption of online grocery shopping and food delivery services, which have already seen a surge during the pandemic and beyond.

Gardein Plant-based Products at Metro (Image: Dustin Fuhs)

Moreover, Gen Z’s emphasis on authenticity and experiences may lead to a rise in experiential dining and unique food offerings. They are also more likely to support local and small-scale producers, aligning with their values of sustainability and community.

As Millennials continue to exert their influence on the food industry, the upcoming Gen Z cohort will bring its own set of preferences and values, further shaping the future of food. Understanding and adapting to these generational shifts will be crucial for businesses in the food sector to stay relevant and thrive in the years to come.

Henry Singer Unveils Downtown Edmonton Flagship Store at the ICE District, Featuring a Bar, Barber and Shoe Shine [Photos/Interview]

By
Mario Toneguzzi
-
Henry Singer Stantec Tower, Ice District in Edmonton (Image: Henry Singer)

Like its neighbours the Edmonton Oilers of the National Hockey League recently, iconic Canadian luxury fashion retailer Henry Singer has experienced tremendous success since relocating its location to Edmonton’s downtown ICE District.

The new flagship store opened in early December in about 10,000 square feet of space and includes three different concepts Parlour Barba, Bar Henry and Shoe Shine Shack which are operated by partners.

Jordan Singer

The previous store at the Manulife Place building, just a couple of blocks away, was home for the retail presence for more than 20 years. 

“It’s been great,” said Jordan Singer, President of Henry Singer. “It was a long-time coming for us to be able to make the move and once we got there it was worth the wait. We had an absolutely phenomenal December which was far better than expectations and it was just kind of a huge relief to get open and to get running in the new shop. 

“It’s a new generation of concept for Henry Singer. We’re no longer simply a clothing shop. We’re a lifestyle destination. We have other components of what we’re doing.”

Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower, Ice District in Edmonton (Image: Henry Singer)

Henry Singer is the anchor tenant of Western Canada’s tallest highrise, the new Stantec Tower in ICE District, one of Canada’s largest mixed-use projects.

Parlour Barba is a barber shop and hairstylist. Shoe Shine Shack does shoe shines and care and repair for shoes and leather goods and products. Bar Henry is a European style aperitivo bar where people can come for a cocktail or a glass of wine and snacks. It will soon be open in the daytime for coffee and light bites throughout the day.

“They’re all attached, connected and within our footprint. They all flow together with us and they can also close off from us and operate unto themselves on their own hours,” said Singer. “We brought in partners to run each that are experts in the space.”

Parlour Barba at Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Image: Bar Henry
Image: Bar Henry

Bar Henry is operated by well-known restaurateur Daniel Costa, founder of Bar Bricco, Uccellino and Corso 32.

“It’s a concept we are inspired by, that we’ve experienced, particularly in northern Italy,” said Costa, whose Italian roots are in Campania. “The food is snacky, light and quick bites, but the pace is leisurely and a place where we want people to feel like it is their second home.”

Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)

In 1938, with just $300 in his pocket, Henry Singer, Jordan’s grandfather, opened a modest made-to-measure shop around the corner from the $500-million Stantec Tower.

Today, Henry Singer is the largest independent family-owned retailer in the country. The launch of its new flagship helped mark the brand’s 85th birthday year. The brand also has a store in downtown Calgary at the Eighth Avenue Place tower complex.

Jordan Singer said the new concept store is aimed at giving customers a more unique and specialized experience.

“We felt the best way to do that was to team up with the best local partners and create this sort of unique experience that flows through these different experiences that also combine together, layer on top of each other, to become the ultimate destination,” he said.

Henry Singer Stantec Tower (Image: Henry Singer)

It’s no secret that the downtown cores of many Canadian cities have faced their challenges over the last couple of years. Issues of safety, homelessness, undesirable characters hanging out and less office workers have taken their toll on many urban centres.

The new Henry Singer location is in the downtown just a few blocks away from many of those problems. And of course some of those problems exist as well in the spanking new ICE District area.

“We’ve always believed in downtown. We’ve been in downtown Edmonton for 85 years and going on 86. We want to be part of sort of the regentrification of downtown Edmonton. We do believe in the future there. We do believe in ICE District, which is obviously where Stantec Tower is,” said Singer.

“And we think the future there is bright and we have to be part of that. We’ve moved in there. We feel a tremendous amount of positive energy. The vibe in ICE District is exciting and energetic, vibrant. We want to see that continue of course. And we want to see downtown continue to clean up and regentrify around us as well as we make that statement to do so.”

Ice District (Image: ONE Properties)

ICE District is centered on Rogers Place, home of the Oilers. Singer said the city and ICE District is feeling the energy that a successful Oilers’ season is bringing. 

With the move into the new location, are there plans to expand the brand?

“We were so focused on getting Edmonton done. That’s been all encompassing for the last two years, coming out of COVID,” said Singer. “Now that it’s up and running, the goal will be to iron out the kinks to make sure that it’s running perfectly smoothly and once we get to that stage which is in the very near future then I can really turn my attention to what’s next and of course as an entrepreneur we’re always thinking of ways of growth. How can the business continue to grow? We will undoubtedly be considering what’s next. We sort of just need to catch our breath.”

Additional Photos from Henry Singer Ice District

Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)
Henry Singer Stantec Tower (Image: Henry Singer)

“WeLoveModainItaly – La Moda Italiana@Toronto” Event Held in Downtown Toronto Feb 13-14

By
Craig Patterson
-
Photo: supplied

The “WeLoveModainItaly – La Moda Italiana@Toronto” event returned to downtown Toronto again this year and was held on February 13 and 14 at the Hyatt Regency Hotel. The two-day event connected Italian fashion brands and retailers, and featured several speakers.

Fifteen Italian small-to-medium enterprises in the Italian fashion sector were presented to Canadian fashion buyers, retailers and media. Italian brands attending included Aldo Brué, Andrea Cardone, Brador, Bun Italy, Colva, Double Firenze, Fabio Gavazzi, Landi Fancy, Lisa Conté, Missouri, Musetti-Musetti Cashmere, Paola Dotti, Paquito, Shaft Jeans, and Tosato1928.

An Italian brand vendor meeting at the event. Photo supplied
An Italian vendor at the event. Photo supplied

On the event’s opening day, a networking breakfast was held at 10am, and an industry presentation session was held from 10:30am to 12-noon. That presentation featured talks from all exhibiting brands as well as Antonio Franceschini of CNA Federmoda Association, and Pietro Goglia of the Italian Trade Agency.

Canadian fashion designer Christopher Bates, and Alberto Scaccioni of Ente Moda Italia, engaged in a panel discussion about Italian manufacturing, the Canadian retail market and more.

Designer Christopher Bates with Vicki Milner, CAFA President
Christopher Bates speaks to the crowd. Photo supplied

The opening night concluded with a cocktail party from 6pm to 10pm, and included a DJ and dinner.

On the second day, February 14, from 11am to 12-noon, a presentation session was held featuring all exhibiting brands. Overall feedback from the event is that it was a success.

One of the brands at the event. Photo supplied

E.M.I. (Ente Moda Italia) arranges textile and clothing trade exhibitions overseas to facilitate the global expansion of small and medium-sized Italian businesses into both established and emerging markets worldwide. Established in 1983 as a non-profit venture by Centro di Firenze per la Moda Italiana and SMI Sistema Moda Italia – Federazione Tessile e Moda, E.M.I. collaborates with these entities to also advance the Pitti Immagine trade fairs.

The Italian Trade Agency (ITA) is a governmental organization dedicated to fostering the international growth of Italian enterprises and encouraging foreign investments within Italy. With a global presence spanning 79 offices across 65 countries, including two in Canada situated in Toronto and Montreal, ITA champions the quality of Made in Italy products and offers comprehensive support services such as information dissemination, advisory assistance, and promotional initiatives for both Italian and Canadian firms seeking to forge mutually beneficial business partnerships.

Canadian Retail News From Around The Web For February 26th, 2024

By
Retail Insider
-
Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past three days.

Rising grocery bills have made Canada’s biggest food inflation villains (Financial Post)

‘More stores can lower prices’: Industry experts weigh in on growing Loblaw stores, call on food retailers to increase competition (Yahoo)

Why drought on the prairies is making your steak more expensive (Castanet)

Michael Kors names new North America retail head, Canada chief departs (Fashion Netweork)

What’s behind rising food costs in Canada’s North? Questions emerge over how retailer sets prices (CBC)

Yonge and Bloor’s retail strip has become big and boring. Blame small-minded city rules (Toronto Star)

Ikea announces ‘plan and order’ store for south end of Barrie (Orillia Matters)

ServiceOntario savings come from government no longer paying leasing costs: minister (CityNews)

Toronto bylaw requiring customers to ask businesses for single-use plastics comes into effect in March (NOW)

Montreal’s Beloved Witchcraft Store Has Closed, But Its Magic Will Live On (MTL Blog)

Oshawa jewelry store targeted a second time by hammer-wielding suspects (CTV)

Canadian Retail Sales Dip: Year-End Drop in Discretionary Spending [J.C. Williams Group Analysis]

By
Retail Insider
-
Canadian Tire at CF Toronto Eaton Centre (Image: Dustin Fuhs)

By J.C. Williams Group

2023 Canadian retail sales ended in a lackluster way, growing only 0.9% YOY for All Stores in December. Discretionary spending decreased in December, decreasing -1.0% YOY for All Stores Less Automotive, Food, and Pharmacies. The year-to-date sales grew in 2023 over 2022 to 2.1% and 0.4% respectively. The economic conditions in December were not ideal considering inflation remained high, and there were numerous layoffs announced at the end of the year.

Regardless of deep Boxing Day sales, consumers were sticking to their budgets. As mentioned last month, Black Friday and Cyber Monday both experienced record sales, with increases of 7.5% and 9.6% YOY respectively. This likely resulted in the majority of consumers completing their planned shopping before Boxing Day, and the needs and wants within their budget had already been acquired.

Image: Lastman’s Bad Boy

Discretionary spending overall took a big hit in December, with various categories decreasing over 2022, and others down throughout the entire year overall, including:

  • Furniture Stores were down -7.9% YOY and -6.8% YTD as the category struggled throughout 2023. This is likely still related to the COVID-era highs the category experienced while we were spending more time at home. Major players, such as GTA’s Lastman’s Bad Boy have even filed for bankruptcy.
  • Sporting Goods, Hobby, Book and Music Stores were also down -7.2% YOY and -1.7% YTD, as the category that stood strong through COVID also continues to fall. Warmer weather through the winter is partially to blame, as skiing, skating, etc. have all been much more difficult to do throughout 2023. According to Canadian Tire, this was a contributing factor to their disappointing Q4 results.
  • Beer, Wine, and Liquor Stores were down -7.1% YOY and -2.5% YTD as consumer preferences are clearly changing. This category, which is often popular for gifting, struggled as consumers attempt to lead healthier lifestyles and/or opt for options from Cannabis as an alternative vice. This will certainly be a category to watch over the next couple years, both because of lifestyle changes, but also since there are major changes coming to how the product is able to be sold in Ontario.
Bikes at Walmart Canada (Image: Dustin Fuhs)
Image: 2024 Canadian International AutoShow

Last month we discussed the increased revenues in Motor Vehicle and Parts Dealers, which continued to be up 5.2% YOY and 6.8% YTD. As the Canadian International AutoShow is currently on in Toronto at the time of writing this article, this category is top of mind. While the average price of a new vehicle in Canada remains high at $67,817, the AutoShow is reporting their third highest attendance in their 50-year history. The increased sales in this category may, however, be slightly misleading. With the average price of a new car rising almost 20% over 2022 in September 2023, this may be merely increased prices rather than increased demand. It may not be consumers shopping for new cars more frequently, but the prices being highly elevated.

2023 was a tumultuous year for retail sales in Canada. The exit of Nordstrom, the numerous layoffs/store closures, and inflation all made the market difficult to predict. 2024 has started similarly to how 2023 ended (in the US), but hopefully there are strong sales on the horizon. As we are now more than half way through the first quarter of 2024,  JCWG is thinking about:

  • Through 2023, JCWG felt like we were seeing/saying the same thing month after month (lower discretionary spend, increased inflation, etc.). Will we continue to experience this status quo through 2024?
  • What major shifts will we see in the retail industry in Canada if interest rates come down?
  • With people moving back to cities, and therefore increasing their costs of living in most cases, what effect will this have on discretionary spend? Will smaller towns/suburbs experience sales decreases as a result?
  • Retail leadership, according to a survey conducted by the Ebeltoft group, is not optimistic about 2024 sales projections. Have smaller retailers been preparing for this to the extent of larger players?
  • How have YOU prepared for the uncertainties that 2024 brings?

For support with your 2024 strategy in times of uncertainty, reach out to the strategy team at JCWG!

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

1...564565566...1,320Page 565 of 1,320
spot_img
spot_img

About

Contact

Media

Follow

© 2025 Retail Insider Media Ltd. All Rights Reserved. The content on this website is protected by the copyrights of Retail Insider Media Ltd. or the copyrights of third parties and used by agreement. No part of any of the content of this website may be reproduced, distributed, modified, framed, cached, adapted or linked to, or made available in any form by any photographic, electronic, digital, mechanical, photostat, microfilm, xerography or other means, or incorporated into or used in any information storage and retrieval system, electronic or mechanical, without the prior written permission of Retail Insider Media Ltd. or the applicable third party copyright owner.