Tony Flanz, President of Montreal-based Think Retail, which consults and represents international, national, and regional retail chains and is helping TCX in its expansion, said the company plans to open three new locations this year.
Tony Flanz
“Offering experienced, secure and reliable services, TCX brings to the table more than 40 years foreign exchange experience,” said Flanz.
“This marks the next phase of the company’s expansion in Canada.
In 2022, TCX strategically gained a strong hold of the market, taking over former International Currency Exchange locations in enclosed malls across the country and converting them to the TCX banner.
“We’re looking to open three kiosks. The markets of interest are B.C., Ontario and Alberta. The focus is on super regional malls. The size required is between 100 and 150 square feet.”
Currently, TCX operates two locations in British Columbia, one in Alberta, four in Ontario and nine in Quebec. The most recent opened in 2023 at Carrefour Angrignon in LaSalle.
“As travel, and with it the demand for foreign currency, continues to grow, the idea is to be easily accessible to customers. TCX is known for making the process of buying any type of currency easy and stress-free, with a handy Click & Collect service—customers simply order currency online and pick up at a convenient location, namely a shopping centre,” said Flanz.
TCX describes itself as “a foreign exchange provider that you can count on. Your travel money is important to us, which is why we do everything we can to help your purchase go smoothly. We believe that you should be able to concentrate on what matters-enjoying your time away. Experienced, secure and reliable, we have been taking the hassle out of foreign exchange for over 40 years.”
Customers can order currency online and pick up cash from one of the branches.
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.
A new report by Trendex North America, a marketing research and consulting firm, said Canadian apparel retail sales growth slowed in 2023, but certainly exceeded the reported 2.2 per cent in total retail sales last year.
The report said the specific growth rate cannot be determined as Statistics Canada changed during 2023 its methodology for reporting apparel sales. But what can be determined by Statistics Canada’s new data set are: Apparel sales totaled C$37.6 billion in 2023; Sales in apparel specialty stores increased a strong 6.8 per cent; and Women’s apparel sales increased at a faster rate than men’s sales.
Randy Harris
Randy Harris, president and owner of Trendex North America, said 2023 was a pretty good year for the Canadian apparel market.
“The growth in the apparel market was greater than the two per cent growth in overall retail sales. So there is not a whole lot of indication that consumers were being squeezed by inflation and high interest rates as it affects their apparel purchasing behaviour,” said Harris.
“Apparel was one of the standout categories last year that the government tracks. Women’s apparel grew faster than men’s with all women’s categories increasing. When we look at the specific segments of the market from a channel standpoint, sporting good stores were probably the big winner and that is because of the addition of stores like Decathlon and an increasing apparel offering by retailers like Sporting Life.
“The other outstanding segment is the luxury apparel segment which probably grew at about 10 per cent last year and there were two major reasons for the growth. One is the rebound in tourism, especially from Asia. And number two is the expansion in the number and quality of doors of luxury retailers. So everything that you’re seeing on the Mink Mile (Bloor Street in Yorkville) or in Yorkdale where luxury retailers are expanding their stores or upgrading them is having an effect on sales.”
PLUS CF Pacific Centre (Image: PLUS)
Harris said another segment that is growing is the resale apparel market – the fastest growing segment in the market.
“That’s because there are consumers that have been stretched financially and that segment has gravitated towards the resale apparel segment. Also it’s kind of an in movement with younger people to say I bought my stuff at a Salvation Army or a Goodwill. It’s kind of an in thing right now. And the other thing is there’s some general concern about the issue of sustainability but I’m personally not convinced to the degree that Canadians are actually buying a product because it’s been used as opposed to buying a new product. Conventional wisdom is saying that but I’m not sure that’s in fact as important as people think it might be. I think only time will tell about that.”
Harris said other winners last year were apparel retailers who cut back their inventory levels dramatically. It had a very little effect on their sales but it did improve, relatively speaking, their profitability.
“Retailers really made an effort last year like Reitmans to cut back their inventory levels. It’s very hard to give specific numbers in terms of what an individual retailer did because very few retailers as you can imagine publish those numbers,” he said.
“But we did have an eight per cent drop overall in apparel imports last year which was unheard of. Nobody has talked about that.”
The only loser last year for apparel was ecommerce, said Harris.
“In the United States, apparel ecommerce fell one per cent and we think in Canada it fell between one and three per cent,” he said. “One of the reasons that apparel ecommerce did not grow is that luxury apparel ecommerce did not grow. This is the same thing that’s happening in the United States. People have decided that when it comes to buying a luxury item they would rather go into a store, feel it and touch it and see how it looks for them.
“Now that we have an increasing number of luxury retailers, people want to go into those stores and buy it. They don’t want to order something online when they can go in and try a number of them.
“The other thing that’s interesting is with the growth of SHEIN and Temu, these are low priced ecommerce retailers. So what’s happening is the more the consumer buys them they’re not buying from other traditional apparel retailers whose prices on average are higher. What you have is the same number of units being sold via ecommerce but they’re less dollars.”
SHEIN Vancouver Pop-up (Image: SHEIN)
Some key findings from the Trendex report:
Not surprisingly after 2022, a “gang buster” year, sales for men’s apparel in 2023 reverted to a more normal 5.4 per cent growth rate;
The one men’s statistic for 2023 that didn’t come as a surprise was the 2.0 per cent decrease in men’s suit/sport coat sales. The decrease came on top of an 27.6 per cent increase in 2022 as men returning to the office had the need to either purchase new styles or purchase larger size suits post-COVID;
Women’s apparel sales (+14.5 per cent) increased at a faster rate than men’s sales (+5.4 per cent). A real surprise was the 19.9 per cent increase in juvenile apparel sales;
The large increase in women’s apparel sales seemed to have occurred across the board as all women’s merchandise categories registered double-digit increases. Outerwear (+23.3 per cent) and hosiery (+25.4 per cent) registered the largest increases, while dresses/suits (+13.7 per cent) and lingerie (+14.3 per cent) had the smallest growth;
Sales in apparel specialty stores, the largest channel of distribution for apparel increased 6.8 per cent in 2023 and was up 14.5 per cent from pre-COVID (2019) levels. The largest provincial gains during 2023 in apparel specialty store sales occurred out west in Alberta (+10.3 per cent) and British Columbia (+13.3 per cent). Sales in Saskatchewan (-1.4 per cent) decreased, while Ontario’s growth (+2.1 per cent) was less than Quebec’s (+6.4 per cent);
Apparel retailer bankruptcies were for all practical purposes nonexistent, however with little notice, many apparel specialty chains closed underperforming stores;
The number of sporting goods chain doors continued to increase and in the process negatively affected Sport Chek’s corporate share of apparel. Overall the sporting goods channel gained the most market share in 2023
Non-traditional mall experiences drove mall traffic back almost to pre-COVID levels;
Luxury apparel sales growth exceeded that for the total market as a result of a resurgence in foreign tourism and the expansion of key luxury apparel sites (e.g. Yorkdale;
Luxury apparel brands continued to open/expand flagship stores. The result was a decrease in luxury apparel e-commerce sales;
Better/luxury casualwear was the strongest performing segment of the men’s apparel market;
Holt Renfrew’s share of the women’s luxury apparel market increased as a result of Nordstrom’s demise and the continued expansion of its own concessions model;
Winners was Canada’s largest apparel retailer. The 10 largest apparel retailers accounted for 34.7 per cent of the market;
H&M (+8.9 per cent) and lululemon Canada (+10.5 per cent) recorded the largest increases in apparel sales;
Thirteen foreign apparel retailers entered Canada in 2023 versus nine in 2022;
Although it is early, Trendex is forecasting a 2.8 per cent increase in 2024 Canadian retail apparel sales.
John Fluevog Exec Discusses Brand History, Marketing, and the Future of Footwear [Video Interview]
Craig interviews Stephen Bailey, Chief Marketing Officer of iconic Vancouver-based footwear brand John Fluevog. They discuss the evolution and unique positioning of John Fluevog Shoes within the footwear industry. Bailey reflects on his 20 years with the Vancouver-based company, emphasizing its dedication to creating “unique soles for unique souls.” He describes how the brand’s independent spirit and medium size allows for a personalized connection with customers, which is central to its retail strategy. Bailey also discusses Fluevog’s choice to manage its retail distribution through 24 stores globally, after a shift away from wholesale due to the desire to control brand presentation.
They discussion shifts to the significant impact of the pandemic on retail strategies, where John Fluevog Shoes quickly adapted to changing consumer behaviours and increased its focus on direct-to-consumer sales. This shift included enhancing the online shopping experience and integrating store-based fulfillment to maintain inventory efficiency and customer engagement. Bailey points out the importance of in-store experience in creating lasting customer relationships, sharing anecdotes that demonstrate the brand’s commitment to exceptional service and community building among “Fluevogers.”
They then discuss John Fluevog’s approach to collaborations and innovations in the footwear industry. Bailey highlights partnerships with iconic designers and how these collaborations reflect the brand’s authentic approach to fashion. Looking to the future, he speculates on the trends including customization and on-demand footwear, suggesting that John Fluevog Shoes is well-positioned to adapt to these evolving industry dynamics due to its agile business model and commitment to unique, high-quality designs.
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The Behar Group Signage at 158 Front Street in Toronto (Image: Dustin Fuhs)
The Behar Group Realty Inc., Brokerage began as a family business in Toronto in May 1992. Avi Behar and Greg Evans completed the succession plan for ownership and management in 2017, launching what they affectionately call The Behar Group 2.0
Larissa Jacobson-Rooke
Now, after growing to 60 people with a thriving brokerage and advisory business in Ontario, the company is expanding its footprint to Western Canada, opening offices in Vancouver for the B.C. market and in Calgary for the Alberta market.
It has hired Larissa Jacobson-Rooke, a veteran in the commercial real estate industry formerly with QuadReal, as its Executive Vice President, Western Canada to spearhead growth in the region.
Avi Behar, Chairman and Chief Executive Officer and Broker, of The Behar Group, said the province of Ontario has been the company’s domain with the Golden Horseshoe Area being its core geographic node.
“Over the years, we’ve expanded our business across Canada, the United States, and beyond, typically through strategic partnerships with other brokerages or with other best-in-class consultants in various markets,” he said. “We’ve always been very client focused, and we’ve endeavoured to always do what’s best for the client. That means engaging the best in any given market.
Avi Behar
“Establishing a formal presence in Western Canada is a natural transition for us. Many of our clients on the landlord, tenant, buyer, and seller sides have continually pursued business outside of Ontario. We’ve been intrigued with the idea of developing offices outside of Ontario, and Western Canada seems to be the logical next step. However, we never wanted to do it without having the right individual who could properly grow and expand our platform.”
thebehargroup.com
Greg Evans, President, Broker of Record, for The Behar Group, said the company doesn’t grow because of a simple desire to grow but organically because “of a magnetism we’ve been very proud to develop in our company brand and in our company culture.”
Greg Evans
“When we think about expansion to other provinces, it’s really just an extension of what we’re doing now in Ontario. It’s not really about the province per se. It’s really about the people and Larissa became an obvious extension of our company culture even before she joined us,” said Evans.
“That was the catalyst. I’m quite conservative in terms of our growth plans and I would rather be small and mighty and punch above our weight class as we’ve been accused of doing for many, many years rather than grow too fast or too large. For me, expansion was a very methodical process. We evaluated the business opportunity, knowing that when we dedicate our attention and our resources to business we’re successful in what we do. Adding Western offices is very much a long-term, non-impulsive implementation of a plan.”
Image: The Behar Group
Evans has been working on the compliance elements of expansion. In the last few months, the company has been registering The Behar Group Realty Inc. to be licensed to trade in B.C. and Alberta.
“I have enjoyed working with and getting to know Avi and Greg, over the last year.Their philosophy behind how they handle clients in everything was huge for me, it just felt like a natural fit.,” said Jacobson-Rooke..
Prior to joining The Behar Group, she was Vice President, Retail Leasing with QuadReal Property Group. Before that she had also been Director of Leasing for Bentall Kennedy and Sales Representative with CB Richard Ellis.
“I am excited to spearhead the growth in Western Canada for The Behar Group, a leading boutique brokerage firm in Canada. Finding alignment of values is key for a move like this, and I appreciate and align with the values of integrity, authenticity, creativity and collaboration of the leadership and team members at The Behar Group. I look forward to supporting the needs of our Landlord, Tenant and Investor clients while building the platform and business further in Western Canada,” she added.
While The Behar Group is best known for retail landlord and tenant brokerage and advisory work, the full-service brokerage team is active in all asset classes including land sales, investment properties, automotive, medical, entertainment, and hospitality.
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.
Hudson's Bay at Cornwall Centre in Regina. Image via Google Street View
Hudson’s Bay confirmed on Monday that it will be closing its two-level department store in downtown Regina. It marks the fourth Hudson’s Bay store to close in a Canadian downtown core since 2020.
The downtown Regina Hudson’s Bay store will close next year, marking the end of a 55-year run of the retailer in the city. The Cornwall Centre store was the only Hudson’s Bay store left in southern Saskatchewan (others closed in decades past). The Hudson’s Bay store at Midtown Plaza in downtown Saskatoon will remain open, and will be the only one left in the province.
The retailer provided a statement to Retail Insider for this article. “HBC continually evaluates its real estate portfolio and looks at opportunities to optimize holdings. Through normal course of business, Hudson’s Bay has made the decision not to renew the lease for the Hudson’s Bay store at Cornwall Centre in Regina. With the lease expiring, the Hudson’s Bay store will close to the public in April 2025.”
The Centre Court of Cornwall Centre features the iconic facade of a former Canadian Imperial Bank of Commerce. Photo: popupshops.com Cornwall Centre in Regina. Photo: Cushman & Wakefield
“We thank our customers in Regina for their patronage and hope to continue serving the community. Hudson’s Bay will continue to operate its store in Saskatoon, and will also serve customers through thebay.com. We are committed to treating every associate with respect and fairness through this process, and transfer opportunities will be explored where feasible.”
Hudson’s Bay moved into Cornwall Centre in downtown Regina in the year 2000, taking over the 182,000 square foot lease of a former Eaton’s store that had operated there since the mall’s opening in 1981 (Eaton’s closed in 1999 with the bankruptcy of the company). Prior to opening at Cornwall Centre, Hudson’s Bay operated a standalone store at the corner of Hamilton Street and 12th Avenue that opened in 1970.
Cornwall Centre’s management company Cushman & Wakefield provided a statement for Retail Insider. “We have recently learned that Hudson’s Bay will close its Cornwall Centre location next year. While we recognize the longstanding relationship this iconic brand has held within the shopping centre, as we look to the future of Cornwall Centre and the downtown revitalization plans, we are confident about the opportunities this brings for our customers and the community.”
Lease plan via Cushman & WakefieldThe former standalone Hudson’s Bay store at 12th and Hamilton Street in downtown Regina is now home to multiple tenants. Hudson’s Bay occupied this building from 1970 until 2000. Photo: Google Street View
The Cornwall Centre Hudson’s Bay store’s sales were said to be struggling — in the fall of 2021, the retailer closed its basement level. Sources reached out to Retail Insider over a year ago, speculating on the store’s closure.
Prior to taking the former Eaton’s location at Cornwall Centre, Hudson’s Bay operated a three level standalone store on Hamilton Street that created a commercial vibrancy in the area. The Hudson’s Bay Company also had a presence in Regina in decades past when it owned the Simpsons chain of department stores — Simpsons opened its first Regina store in a warehouse district north of the downtown core in the 1920’s, and in 1946 took over local department store R.H. Williams at Hamilton Street and 11th Avenue where it operated until June of 1981. The Hudson’s Bay Company acquired the upscale Toronto-based Simpsons chain in 1978 and closed the unprofitable Regina location just a few years later.
The 573,000 square foot Cornwall Centre has been a dominant force in downtown Regina since its opening in 1981, and currently features about 80 retailers over two levels. The centre’s other anchor store was Sears Canada, which shut in 2018. Cornwall Centre also was once connected by an over-the-street pedway to an upscale mall called The Galleria which closed in the early 2000s. Interestingly, the Hudson’s Bay Company said in 1981 that its decision to close the unprofitable standalone downtown Regina Simpsons store was partly because of the opening of Cornwall Centre, which had new competitor anchors Eaton’s and Sears.
Regina Mayor Henry Baker and Mr. Ronald A. Sheen, Deputy Managing Director of the Hudson’s Bay Company looking at the model of the new standalone Hudson’s Bay Store at Hamilton Street and 12th Avenue in downtown Regina in 1966. Image: City of Regina ArchivesIn 1946, Simpsons took over the RH Williams department store at 11th Avenue and Hamilton Street in downtown Regina. The Hudson’s Bay Company acquired Simpsons in 1978, and closed the downtown Regina store in 1981 — at the time, HBC partly blamed the development of Cornwall Centre (with anchors Eaton’s and Sears) for its shutting the unprofitable Simpsons location. The building has since been demolished. Rendering via the City of Regina Archives.
Department stores were once the domain of the downtown core, and suburban retail is partly responsible for the near death of retail in many downtowns across North America. At one time, downtowns in communities across the continent boasted department stores of various sizes. Fast forward to today, and few downtown department stores remain, with that number dwindling in Canada as Hudson’s Bay continues to close locations.
Since the spring of 2020, Hudson’s Bay has closed three key downtown department stores in Canada. In November of 2020, the massive 675,000 square foot Hudson’s Bay store in downtown Winnipeg closed, marking the end of an era for the building which once served as the company’s main flagship store. In June of 2021, Hudson’s Bay closed its 168,000 square foot store in downtown Edmonton, which followed the closure of a Holt Renfrew store nearby. In May of 2022, Hudson’s Bay closed one of its two downtown Toronto stores at the corner of Yonge and Bloor Streets, leaving the flagship Bay store at Yonge and Queen that began as the flagship store for Simpsons.
Hudson’s Bay has closed other stores in Canada in recent memory, including at Jardins Dorval in Montreal in the fall of 2021 and a small store on Banff Avenue in Banff, Alberta, in the summer of 2023. Vancouver-based retailer Arc’teryx is said to have leased part of the former Banff Bay building, which is under renovations.
Former Hudson’s Bay Store Building 125 Banff Avenue, Banff (Image: Avison Young)
For months, Retail Insider has been visiting Hudson’s Bay stores across the country, and something appears to be a bit off. Most of the stores visited appeared to have escalators out of order, and there’s a noticeable lack of music being played in many locations. Even some washrooms in some stores are out of order — sources told Retail Insider that the lack of music and washrooms was due to not paying bills, while the cost of electricity and economizing could be responsible for the escalator outages. On Tuesday of this week, Retail Insider visited the Queen Street flagship store in Toronto where many of the escalators were not running, and all four passenger elevators were out of commission that day.
Recent news reports out of Vancouver indicate that the downtown flagship Hudson’s Bay store is in rough shape — escalator and elevator outages means people have to find their way floor-to-floor via large staircases in the store, something witnessed in January by this author during a trip to the city. Last week, The Vancouver Sun reported on the store and interviewed customers who generally gave negative reviews of the in-store experience and lack of maintenance. HBC announced during the pandemic that the store would be redeveloped with an office tower built above, and sources now tell Retail Insider that a new proposal for the building is in the works.
Hudson’s Bay at Queen and Yonge in Toronto (Image: Dustin Fuhs)
The closure of another downtown Hudson’s Bay department store is bad news for Canada, which has only a handful remaining. Hudson’s Bay continues to operate downtown stores in Calgary, Saskatoon, Toronto, Ottawa and Montreal.
The 400,000 square foot downtown Calgary Hudson’s Bay store was downsized to about half of its former retail space during the pandemic, and is now three floors (down from six in years past). The 174,000 square foot downtown Saskatoon store relocated from a standalone building to Midtown Plaza in 2000, similar to what was done at the time in Regina. The 800,000 square foot Toronto Queen Street store continues to operate with an integrated/adjacent Saks Fifth Avenue store which has seen better days, while the 335,000 square foot downtown Ottawa Hudson’s Bay store continues to operate across the street from CF Rideau Centre. In Montreal, the massive 655,000 square foot downtown Hudson’s Bay store was slated for redevelopment, and so far only the store’s retail space has been downsized with some upper levels shut off to the public.
In decades past, Canadian downtowns were home to multiple department stores — that included names such as Eaton’s, Woodward’s, Hudson’s Bay, Simpsons and Morgans. The first four of these were all present in Canadian downtowns until 1991. Sears Canada also operated downtown stores until it began selling off real estate (making Nordstrom’s entry into Canada possible) before Sears Canada’s demise in 2018.
The United States, as well, has seen its city downtown cores decimated over the years, with a few large traditional department stores remaining. And that number will be reduced even more with the recent announcement that Macy’s would look to vacate its large store on Union Square in San Francisco. The only other American downtowns with a meaningful department store presence today include New York City, Chicago, Philadelphia, Washington DC and Boston.
MUST Loyalty Program in Downtown Toronto (Image: Dustin Fuhs)
As consumers are finding loyalty programs less rewarding, overwhelming, and too rigid, Lia Grimberg discusses the death of loyalty programs by sharing insights on loyalty mistakes, ‘set and forget’ failures, and flexible program models.
“In an era marked by rapid technological advancements and evolving consumer expectations, the traditional models of loyalty programs no longer suffice. Consumers are seeking immediate benefits and experiences that resonate more deeply with their personal values and lifestyles. As a result, businesses must pivot towards a more dynamic and response strategy to maintain customer loyalty and engagement,” says Lia Grimberg, Principal and Consultant at Radicle Loyalty .
The decline in traditional loyalty programs
Aeroplan at LCBO (Image: Dustin Fuhs)
In recent years, Grimberg says the landscape of loyalty programs have undergone significant changes. As traditional models are failing to keep up with consumer preferences and expectations – retailers are seeing a decline within loyalty programs as they are becoming less effective.
Lia Grimberg
As consumers today are more demanding and informed, they are seeking instant benefits, personalized experiences, and rewards offering greater value. Traditional programs are failing to meet these expectations and are leading consumers to be disengaged and less satisfied with the brand.
Three programs Grimberg mentions that are facing a decline in effectiveness and have seen a decline in popularity are AIR MILES, SCENE+, and Aeroplan.
“Representatives from traditional loyalty programs like Air Miles have been very upfront, openly admitting the significant challenges they have encountered, including notably declining consumer engagement and decreasing interest from retail partnerships in maintaining these collaborations.”
Making a shift towards flexible programs
My Pandora Rewards Program at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Grimberg says retailers are shifting towards flexible, short-term partnerships which quickly adapt to consumer needs and industry changes. These programs focus on fast reward redemption, personalization, and increased consumer engagement.
“In the past, loyalty programs were all about the set and forget model, where once a consumer was signed up – minimal effort was made to keep consumers active and engaged. However, this approach is no longer viable in today’s market. Consumers are now looking for more from their loyalty experiences, including more frequent and meaningful interactions that demonstrate real value. As a result, we are seeing a significant shift towards more dynamic strategies that require ongoing engagement and adjustment.”
As loyalty programs transition to include more flexible and dynamic strategies, consumers and retailers will see significant changes.
For consumers:
A shift towards flexible loyalty programs and faster reward systems has significantly improved consumer experiences. Grimberg says consumers will enjoy more immediate rewards – ensuring loyalty programs will remain relevant and valuable, preventing disinterest.
“These minable, adaptive approaches allow us to quickly respond to consumer demand and market trends, ensuring that loyalty programs are not only relevant, but also highly engaging. This shift is crucial as it keeps consumers interested and invested in our programs, preventing disinterest and maintaining their relevance over time.”
For retailers:
Grimberg says if retailers implement these strategies of short-term flexible partnerships and focus on meaningful reward benefits, they can attract and retain customers in the competitive loyalty market.
Retailers can also have a better understanding of consumers by targeting audiences better and continuing to adapt to consumer needs. To meet these changes, Grimberg says retailers need to invest more in technology to make these programs effective, but this does not come without an increase in operational costs.
Overall, the impact of an enhanced loyalty program comes with an increase in consumer engagement and loyalty. While retailers will have higher costs for these technological advancements, the long-term benefits outweigh the challenge.
Mistakes on Loyalty
Rewards Program App with no Offers (Image: Dustin Fuhs)
The biggest mistake Grimberg says retailers are making is relying on traditional program strategies like point systems that don’t provide enough value to customers – leading to low consumer engagement: “So what we are seeing – is not good results. Consumers are not earning enough to be able to collect for something valuable within a reasonable period of time.”
To improve loyalty programs, retailers should focus on creating meaningful relationships with customers through personalized interactions, innovative rewards, and new partnerships.
In the future, Grimberg says trends such as short-term partnerships and an increased focus on value for customers are expected to shape loyalty programs. To be successful and to stand out, retailers must avoid repetitive models and make customer engagement its top priority.
Overdue for an update
Shoppers Drug Mart (Image: Dustin Fuhs)
“We go back to the same tricks that we have tried for 40, 50 years. We started with punch cards, then graduated to points – there hasn’t been necessarily a new program. We have not, as an industry, innovated in a very, very long time.”
To remain relevant, Grimberg says retailers need to focus more on innovation in loyalty programs.
“The lack of innovation in loyalty programs is a major issue, with many programs failing to engage consumers effectively. Retailers need to focus on providing ongoing value, engaging customers consistently, and offering meaningful rewards to keep loyalty programs successful. The lack of innovation is leading to negative ROI for retailers and a lack of perceived value for customers. To improve loyalty programs, retailers need to invest in ongoing promotional activities, drive incremental behaviour through promotions, and open up the ecosystem to more partners for earning and redemption opportunities. These changes are affecting both consumers and retailers, with a need for more innovative and engaging loyalty strategies.”
Retailers must focus on personalization and the use of technology. With the use of AI and machine learning – retailers have the available tools to collect data, understand consumer behaviours on a deeper level, personalize offers, and have effective communication strategies.
“From a consumer perspective, they are seeing the same program over and over again and they are overwhelmed and underwhelmed with the offers – they are no longer seeing the need to stay with one retailer over a long period of time just because they are never going to accumulate enough value to be used.”
Resuscitating loyalty programs
Grimberg provides three strategies retailers should take on to improve their loyalty program.
Allocate resources wisely: “Dedicate 20 to 30 per cent of your rewards budget to promotional activities and ongoing engagement. Invest in meaningful interactions and value exchange across all touchpoints of the customer lifecycle.”
Make redemption meaningful: “Ensure customers can earn and redeem rewards within a reasonable timeframe, typically a few months. Open your ecosystem to partners to enhance earning and burning opportunities.”
Embrace card-linked offers: “Instead of coalitions, consider short-term card-linked offer partnerships, such as Drop, Neo, or AIR MILES, that offer access to new audiences on your terms. The flexible arrangements allow for targeted promotions and can be adjusted to align with your promotional calendar, while still addressing your customer acquisition goals.”
Starbucks Rewards Program In-Store Signage (Image: Dustin Fuhs)
The future of loyalty programs is in need of innovation. Grimberg says technology will play a key role in shaping new innovations, making it easier to personalize communication strategies and rewards.
To improve loyalty programs, Grimberg suggests retailers consider member-only pricing, rewards for non-transactional behaviours, and partnerships with other businesses to provide a variety of earnings and redemption options. Additionally, using technology to personalize experiences can help improve engagement and brand loyalty.
Ultimately, Grimberg says the key to success is continually evolving and providing value to the customers: “It is not about the system being broken, but how we can continuously engage and provide more meaningful value to our customers through loyalty programs.”
Ladurée Canada at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Caddle, in partnership with Retail Council of Canada (RCC), recently released a survey of Canadians and their shopping intentions for this year’s Mother’s Day.
“In 2024, the trend to celebrate Mother’s Day in Canada is waning slightly, with only 60 per cent planning to observe the holiday, down from 72 per cent the previous year,” said the report.
“Uncertainty about celebrating has increased slightly to eight per cent from six per cent. While 66.5 per cent intend to buy gifts, down marginally from 67.1 per cent, those celebrating are largely looking to match or exceed their previous spending.
“Influence on purchases comes chiefly from family and friends (32.5 per cent) and in-store browsing (23.7 per cent). Other significant factors include in-store displays, flyers, social media, and retailer websites. Dedicated shopping trips for Mother’s Day are up to 60 per cent, and shoppers are clearly looking for value in gift-giving.
“In 2024, almost 90 per cent of Mother’s Day celebrating Canadians aim to increase or maintain their spending compared to last year.”
Mothers Day at Indigo (Image: Dustin Fuhs)Ladurée Canada at CF Toronto Eaton Centre (Image: Dustin Fuhs)
For many retailers, Mother’s Day is one of those special occasions that can boost business sales.
Olesya Krakhmalyova, company owner of Ladurée Canada, said Mother’s Day is very important for the retailer, which specializes in French pastries and macarons.
Olesya Krakhmalyova
“I would say for us Christmas and Valentine’s and Mother’s Day are the top three sales periods over the year. The peak moments,” she said. “ Ladurée is famous for its beautiful gift packaging for macarons and for Mother’s Day specifically we do limited selections to highlight the holiday.”
The company’s exclusive Mother’s Day treats include the Mother’s Day macaron box available from April 26 and the La Vie En Rose cake, available on May 1.
Ladurée Canada at Exchange Tower (Image: Dustin Fuhs)
Ladurée is a world-renowned luxury French pâtisserie with a rich history dating back to 1862. In 2016, Ladurée entered the Canadian market with its first location in Vancouver. It has since opened two locations in Toronto at Yorkdale and Exchange Tower. It also has carriage popups at CF Eaton’s Centre, CF Pacific Centre and Vancouver International Airport. In 2023 it opened its Toronto pastry laboratory, its second Canadian pastry making facility.
Krakhmalyova said consumers are concerned with rising prices. She said retailers often don’t have a choice these days in pricing because prices are impacted by the supply chain.
“We’re getting the sentiment that people have been taken aback by this non-stop price increase. But we are a business. And we are also taken aback and concerned with such rapidly increasing costs of doing business. It’s a huge concern,” she said.
Image: ladureecanada.caMother’s Day at Bath and Body Works (Image: Dustin Fuhs)
Unfortunately for many retailers the increasing costs for a business are not compensated by sales right now.
That’s why many retailers look at special days like Mother’s Day to help boost their sales.
Here are the key findings from the RCC Mother’s Day survey:
60 per cent of Canadians plan to celebrate Mother’s Day in 2024, compared to 72 per cent in 2023;
Eight per cent of Canadians in 2024 are not sure whether or not they will celebrate Mother’s Day. In 2023 only six per cent of Canadians were not sure if they would celebrate;
This year, 89.7 per cent of Canadians who celebrate Mother’s Day, plan to spend the same or more as compared to last year;
74.3 per cent of Canadians expect to spend the same amount of money on celebrating Mother’s Day as they did last year;
15.4 per cent of Canadians expect to spend more money on celebrating Mother’s Day than they did last year, while the same number was 14.1 per cent in 2023;
.This year, 66.5 per cent of Canadians plan to make purchases related to Mother’s Day, in 2023 this number was 67.1 per cent;
The largest group (17.1 per cent) makes purchases about one week before the holiday;
52 per cent of Canadians will plan at least a week before Mother’s Day to make purchases;
The number of people planning to make same day purchases on Mother’s Day has declined by 1.2 percentage points compared to 2023 with 4.7 per cent;
56.2 per cent of Canadians who celebrate Mother’s Day, spend more than $50;
43.8 per cent of Canadians spend $50 or less on Mother’s Day;
This is followed by 33 per cent of Canadians spending between $51-$100, and 12.6 per cent spending between $101-$150 on Mother’s Day;
The number of people spending less than $50 has declined by 6.1 percentage points compared to 49.9 per cent in 2023;
Mothers Day at Lindt (Image: Dustin Fuhs)Mother’s Day Sale at Novesa (Image: Dustin Fuhs)
More than 70 per cent of Canadians shop in-person at retail stores for Mother’s Day products;
Around 11 per cent of Canadians go to a retail store’s website;
Around 10 per cent buy through online sellers;
7.3 per cent of Canadians purchase something for Mother’s Day using other means;
60 per cent of Canadians make dedicated trips for Mother’s Day products;
In 2023, 44 per cent of Canadians tacked on Mother’s Day items to an existing shopping trip;
60 per cent of Canadians make a dedicated trip for Mother’s Day shopping. The corresponding figure last year was 56 per cent;
Around one-third of Canadians look for value to show their care while giving Mother’s Day gifts;
40.5 per cent of Canadians don’t consider it important to buy known brands for Mother’s Day celebrations; and
28.1 per cent of Canadians look for the best value purchase for Mother’s Day.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past several days.
