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.
The Fort McMurray Airport Authority (FMAA) is open for business in Alberta with the planned 650-acre commercial development Aurora Landing on airport campus.
The land is now available for sale, long-term leasing, or joint venture development opportunities.
Aurora Landing is projected to be one of the largest, most comprehensive mixed-use masterplans in Alberta. The project, divided into 12 parcels, is expected to span 15 years. The FMAA is currently in the pre-development phase of planning, engaging prospective joint venture partners.
Aurora Landing (Image: Fort McMurray Airport Authority)
This long term multi-phased development is expected to address several critical commercial needs in the growing Fort McMurray Wood Buffalo market, including leading retailers, major hospitality brands and supporting amenities, experiential entertainment, food and beverage operations, signature office campus, state-of-the-art logistics and technology facilities, and regional transportation services.
There is potential for sale and land lease for selected parcels for commercial/hospitality, light industrial/logistics, auto mall and services.
Michael Sieger, Vice President of Air Service and Commercial Development with the FMAA, said Aurora Landing meets market demand on many fronts, and benefits from the expected transportation infrastructure to be introduced in the region.
Michael Sieger
“Combined with the adjacency of the airport terminal and the many existing businesses already located on Fort McMurray International Airport (YMM) campus, Aurora Landing serves as a critical catalyst to support the growth of the region, specifically south Fort McMurray, which has been underserved in terms of important commercial and retail amenities. We believe Aurora Landing is a perfect location to host the developers actively looking to come into our region,” he said.
Aurora Landing is composed of 650 acres along a major highway. Four kilometres of frontage, and situated south of town where future growth is anticipated to occur.
Aurora Landing (Image: Fort McMurray Airport Authority)
“The community is looking for retail growth. Aurora Landing is well-positioned in the market to be the that destination for developers.”
In 2023, the Airport Authority commissioned a full land development master strategy plan. The 100+ page master plan takes the development out for the next 15 to 20 years.
“With interest in the marketplace for land in Fort McMurray, from the retail perspective, from the light industrial commercial perspective, we knew that we had something special here. We’ve got 650 acres along a major highway. Four kilometres of frontage which no other parcel of land in Fort McMurray has and we’re situated south of town which we believe is where the future growth of our community from a residential perspective and from a development perspective is going to occur,” said Sieger.
“So, all the stars lined up and we said ‘okay we know we’ve got something great here let’s put a name to it and let’s start to market it’.”
Members of the FMAA will be at the upcoming ICSC@WHISTLER event, January 21-23 in booth 1113, to promote the development.
Aurora Landing (Image: FMAA)Image: Fort McMurray International Airport
Denean Robinson, President & CEO of the Airport Authority, said Aurora Landing is a visionary program leveraging the strength and resilience of the entire region.
Denean Robinson
“This overall masterplan speaks to our strong conviction in the long-term growth of Fort McMurray Wood Buffalo. Our significant land holdings provide a truly unique opportunity to accommodate various commercial developments and business platforms that typically require larger land needs in a highly integrated, vibrant, and commercially cohesive environment. Aurora Landing will provide exactly such an environment,” said Robinson.
The airport is a major economic driver for the region, with an economic output of over $354 million, supporting over 70 businesses and approximately 900 jobs on airport campus.
YMM is the aviation centre of the Athabasca Oil Sands region and a gateway for Canada’s energy sector. Located just 15 minutes from downtown Fort McMurray, Aurora Landing is within close proximity to Highway 63, providing easy access to the region’s oil sands sites, the Edmonton region and Western Canada.
Image: Fort McMurray International Airport
Aurora Landing is poised to be Fort McMurray Wood Buffalo’s biggest commercial hub, serving residents and visitors to the region.
Development advantages include:
Expansive site coverage (+650 acres of developable land);
Long term commercial/industrial/residential support base; and
Immediate & flexible long-term development timeframe.
Fort McMurray (Image: Sport Canada)
The master plan builds out the 650 acres in 12 different parcels.
Development order will be based on the scheduling of JV development Partner(s) and Key Anchor Tenants. So far, the demand seems to call for Parcel B first. The overall masterplan will commence at both ends and work their way towards the middle and from the Highway 69 frontage inward to the Airport Terminal.
“Right now, when it comes to the retail perspective (in Fort McMurray Wood Buffalo), research suggests that we’re about 1.2 million square feet short of what’s needed in the community,” shared Sieger.
Sieger said the parcels of land available in Aurora Landing are quite large and can accommodate several hundred thousand square feet of retail space.
Image: Fort McMurray International Airport
Fort McMurray has a number of key demographics that are attracting retailers:
The region is home to more than 110,000 residents with one of the world’s leading energy sectors and a strong oil and gas industry workforce;
The region is expected to see strong population growth exceeding 170,000 residents by 2040;
The region has one of the highest annual income levels in the country with an average of $217,284 per household annually;
The region is projected to generate significant retail expenditure exceeding $5.6 billion by 2040, a rise averaging five per cent per year;
The market has a significant commercial recapture opportunity with an estimated $850 million in retail spent outside of the region annually.
“We have $850 million worth of retail that leaves our region both in online and direct shopping in cities outside of Fort McMurray,” said Sieger.
“It’s like a perfect storm. Everything’s just waiting for retail to come here. And the ones that do it first, the first adopters, are the ones that are going to benefit the most.”
Fort McMurray Airport (Image: Ema Peter)
Aurora Landing is within 15-20 minutes from any point in Fort McMurray. There’s also a new highway alignment, Highway 686 Connector to Grand Prairie, completing the transport loop with Edmonton.
For more information, contact Michael Sieger, VP Air Service & Commercial Development, Fort McMurray Airport Authority at: Michael.Sieger@FlyYMM.com Direct: (780) 399-8669
Image: Fort McMurray International Airport
Retail Insider partnered with Fort McMurray Airport Authority for this article. To work with Retail Insider, email: craig@retail-insider.com
Naan Kabob, an Afghan and Middle Eastern Restaurant in Toronto, is opening three new locations in the Greater Toronto Area, has plans to open 25 locations throughout Canada by 2028, and is expanding internationally.
Starting out as a family owned business in 2010, it has now grown into a larger company with ten locations within the Toronto area. In 2024, Fahim Ahmadi, the vice president of development at Naan Kabob, says the brand is in process of opening three locations which will be in Newmarket, Hamilton, and Niagara Falls. Leases for these locations are in process, but Ahmadi indicated they will be opening at the end of the year.
Fahim Ahmadi
Naan Kabob is known for offering a variety of affordable and fresh Afghan food options where guests can expect to have their orders within 15 minutes.
“Our focus is serving fresh food, creating consistency across our service, and quality of our food. We had some challenges introducing Afghan food in the market as there were some other players in the area, so we wanted to create a casual premium category where it is not fast food, not casual – but something more premium with great quality. So, that is our model and we have an aggressive growth plan, going nationwide, and at the same time expanding internationally,” says Ahmadi.
25 openings within four years
Naan Kabob Mississauga (Image: Naan Kabob)
As for other expansion plans, Ahmadi says he is looking to open 25 locations across Canada by 2028 including Calgary, Edmonton, and Vancouver.
“Those three locations are the major provinces and each of them will take about five locations. We are also looking at Winnipeg and Ottawa as it is another great growing market, but Calgary, Vancouver, and Edmonton will be our top goal.”
Ahmadi says instead of opening locations all at once, he will take it slow and open flagship stores first, see how they develop, and if successful can open more locations.
“We want to make sure the structure is well established where they don’t sign five deals without ensuring the market responds and how successful the location will be. We are looking forward to our market segment, at the same time we want to continue to support franchises because we would like to make sure this is strategic because our brand reputation and popularity will be on the line – It is just not about opening more locations, but creating the brand. We don’t really want to give it out to anybody.”
Naan Kabob Lawrence Avenue (Image: Naan Kabob)
Ahmadi says the brand will be looking for people who have food experience and have worked for food chains, have an understanding of the market segment, and who can easily open “because Naan & Kabob has all the infrastructure, all the systems, operation procedures, and marketing support.” The brand is currently working with JLL for finding locations, Ahmadi says the brand will be looking for locations outside or within malls,next to Starbucks, next to premium brands, but is avoiding food courts as the brand is being cautious with rent and wants easy access for delivery partners.
Due to the unfamiliarity in the Quebec market, language requirements, and its unique culture – the brand will not be entering into Quebec right now, but will look at it later.
“We don’t really know the market for us to really go into Quebec. We really need an expert from the market to be successful. It is an amazing market and a lot of the things are easier, but we definitely need an expert because a lot of brands have failed going into Quebec – so I think we are a little scared of entering into that market right now. The decision to enter into the Quebec market would likely depend on overcoming the identified challenges, such as the language barrier, culture differences, and finding the right local expertise.”
International Growth
Naan Kabob Yonge Street (Image: Dustin Fuhs)
For the past four years Naan Kabob has been looking into expanding internationally, but when Covid hit, the brand put the brakes on. For this year, the brand is now looking into expanding into Dubai and in Europe with London as its first stop.
Both locations in Dubai and London are expected to open by the end of the year or in the first quarter of 2025. Ahmadi says he will be looking into other locations in Europe and in the Middle East, though specific locations are undetermined.
“It has been very hard to find locations, so we have been working with JLL to find the right ones, but we have our team ready once we have a lock in a location to start going there, building, and planning out the opening. This is something we are hoping to open by the end of the year or the first quarter of 2025, it is our number one priority.When given the green light, it will probably take four to five months to open, give and take to build a location.”
New experience for every location
Naan Kabob Queen Street (Image: Dustin Fuhs)
To keep locations interesting, each Naan Kabob location has its individual design as it is not a “cookie cutter” franchise where each store looks the same. This approach to designing is part of the brand’s strategy to enhance customer experience.
“We are not like other franchises, we make every location different. The designs will add extra costs for us because every time you are building a different restaurant. The whole idea is how do we keep excitement for customers when they go to a different location. At the same time, our work culture is different too – people who work with us believe in our concept and really work from the heart. It’s not just a franchise – it’s still a family business and it is heavily dependent on the quality of the food, consistency, and the warm welcoming of customers.”
In the wild world of retail, the story of Aritzia, a once-celebrated Canadian brand, stands out. The Canadian retailer of “everyday luxury” saw its net income drop by 39% in Q3 of 2024, a decline worse than its peers and not attributable to broader trends like weaker consumer spending. In fact, while publications by the Financial Post are saying Aritzia’s “hype has fizzled” and the company has seen its stock value drop by half over the past year, its American counterpart, Abercrombie, has had a 5x increase in its share price and remains one of the best performing stocks on the NYSE. This disparity raises a critical question: Is it time for Aritzia to embrace strategic renewal?
Aritzia’s current strategy hinges on an ambitious expansion in the U.S. market, aiming to grow its American store count to around 90 by 2027. Todd Ingledew, Aritzia’s CFO, on a recent analyst call, asserted the company’s confidence in this approach. He remarked, “Our new stores are our most consistent growth driver, historically delivering predictable revenue growth and propelling our brand.”
Aritzia Yorkdale (Image: Dustin Fuhs)
Expanding the store count is indeed a tried-and-tested formula. And it works, until it doesn’t. New stores allow a brand to tap into new geographies, potentially boosting e-commerce in adjacent areas and increasing top-line revenue. However, the flip side of this strategy is equally telling. Store expansion does not inherently elevate brand relevancy, address novel customer needs, or ensure a unique competitive edge in new markets. Jennifer Wong, Aritzia’s CEO, candidly acknowledged these challenges, noting that heightened visibility in the U.S. is bringing the brand onto competitors’ radars. Fundamentally, solutions of quantity can’t solve problems of relevancy.
Aritzia’s recent moves, such as heavy reliance on discounting, exemplified by an 80% off “archive sale,” and spending on marketing for the first time in its 40 year history, hint at a deeper need for a strategic pivot. These strategies, though not inherently flawed, collectively suggest a brand in search of a new identity and direction.
Aritizia’s primary challenge is its product-centric approach, banking on items like the “super puff” or rompers/athleisure to drive sales. This strategy can look thin compared against brands like Brandy Melville and Abercrombie, which are currently experiencing a resurgence by emphasizing their uniqueness across multiple platforms and channels. Being a product-driven company exposes them to swings in taste and makes them uniquely susceptible to quality complaints.
Earlier, Abercrombie faced – and has since overcome – the same challenges as Aritzia. They peaked in 2007 then suffered more than a decade of decline. But starting in 2017, the company began a rebrand away from selling “Abercrombie products” to offering a classic “all American” preppie-oriented look with a commitment to inclusive sizing and quality manufacturing. Once known for logo-heavy t-shirts and sherpa-lined coats, Abercrombie became known for something deeper and more solid: its fundamental aesthetic and value. Aritiza could benefit from a similar renewal.
Image: Aritzia
At Faculty of Change, we often encounter such scenarios. Brands facing similar challenges have found it helpful to reassess their market understanding, to become curious again and about what matters most and leverage this new perspective to foster growth. Perhaps it’s time for Aritzia to embark on a similar journey of introspection and strategic realignment.
While Aritzia’s expansion plans may offer short-term gains, the long-term sustainability of the brand may well depend on a bolder, more holistic approach to market strategy and brand positioning. As the highly competitive retail landscape continues to evolve, Aritzia’s next moves will be pivotal in determining its place in the world.
Jared Gordon is one of the founders of Faculty of Change. He and their team work with established retailers to uncover new sources of growth. They are releasing their 2024 Nearly Now report on January 25th, 2024. You can find more information here.
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.
The retail and food and beverage component of the Ottawa International Airport is poised to see growth with more airline passengers expected following the lull during the pandemic.
The launch of a new food program coupled with new retail offerings will also give the airport a boost in sales on its commercial real estate locations on the site.
Coleman Swartz
Coleman Swartz, Director, Commercial Development, Ottawa International Airport Authority, said a major redevelopment unfolded through COVID.
“We didn’t expand the terminal. The last time we did that was in 2008 when the building physically grew,” he said. “But we had already planned to completely rebuild our security checkpoints, specifically the main screening point that most of our passengers pass through, and the retail and food reconfiguration was coordinated to go along with that, in 2018 and 2019.
“What we did is we moved our security checkpoint up to the top level of the terminal because where the previous one was it was way too small. It was outdated, old technology, very short little lanes . . . We actually put our new retail centrepiece right in that old space.”
iStore (Image: YOW Ottawa International Airport Authority)
The new food program will have a total footprint of around 14,000 square feet. This is a reduction from the previous program size of about 17,000, but it is “right-sized” and better located.
Swartz said the new retail program will be around 6,000 square feet, down from around 7,000 previously with locations right-sized and relocated in order to serve customers best and optimize revenues.
He said the new food program has 14 locations in total – counting the food hall as one location, and the Bridgehead Coffee within it as a separate one. This is a reduction of two units from the previous program – both were pre-security on the Departures level and were underperforming.
The Locks at YOW (Image: YOW Ottawa International Airport Authority)Image: YOW Ottawa International Airport AuthorityImage: YOW Ottawa International Airport AuthorityImage: YOW Ottawa International Airport Authority
The new retail program has seven locations (not including two duty-free shops). An eighth is contemplated and may be opened within the next few years.
The flagship new central retail travel essentials store, The Locks, opened in August 2021. The two specialty stores, iStore Express and No Boundaries, opened October 2022.
No Boundaries at YOW (Image: YOW Ottawa International Airport Authority)No Boundaries at YOW (Image: YOW Ottawa International Airport Authority)Big Rig at YOW (Image: YOW Ottawa International Airport Authority)Big Rig at YOW Airport (Image: YOW)
On the restaurant side, Big Rig opened in September, and Canal Market Hall (the central food hall) opened mid-October.
Within the food hall are some local brands including La Bottega Nicastro and Bridgehead Coffee. The food hall is run by SSP America. It also includes Pizza Vino, The Grill and a Bento sushi spot.
“The next wave is going to be another Bridgehead Coffee shop down in the Arrivals area. It’s going to replace a Tim Hortons that’s there and they’re going to rebuild and slightly relocate Starbucks which already exists in the domestic post-security area,” said Swartz.
“Starbucks was opened in 2011, so it’s already approaching 15 years old It’s a little bit under-sized. It’s a little bit tired. And we’re moving it also a little bit to make room for a larger retail store down at that end.”
Marché du Canal Market Hall (Image: YOW Ottawa International Airport Authority)
After the travel slowdown during the COVID period, Swartz said the airport is “rebuilding a new normal.”
“Ottawa’s passenger traffic pre-COVID was just over five million passengers a year. We did close the past year (2023) at just over four million,” he said. “That puts us at 80 per cent which is lagging a little bit behind some other Canadian airports and definitely behind the U.S. We’re probably on par with most of Europe right now.
“We just have this slightly more conservative outlook . . . Everything that makes Ottawa really good as a real estate investment town most of the time kind of works against us in COVID which is the (federal government) is your main employer and normally they’re a source of stability but in this case they’re a source of lagging contribution you would say. We believe that government travel is probably the biggest missing piece because we think leisure travel is pretty good. We have Air France serving direct to Paris which is brand new for us as of last summer. Game changer. Fantastic development for us and for the region.
“We’re waiting for government which is both government employees traveling outbound and people coming into Ottawa to do business with the government.”
YOW Central Market (Image: YOW Ottawa International Airport Authority)YOW Central Market (Image: YOW Ottawa International Airport Authority)
Swartz said it’s important for the airport to get that local flavour and character into its retail and food and beverage offerings.
“We’ve come a long way. Got a little bit of a ways to go but we’re really proud that we now offer much more of a sense of Ottawa to our passengers,” he said.
iStore (Image: YOW Ottawa International Airport Authority)
A new global study from the IBM Institute for Business Value reveals a widening gap between shopper demands and the current retail offering.
“IBM’s 2024 Consumer Study has uncovered that only nine per cent of consumers are satisfied with their in-store experiences and 14 per cent with online shopping. However, there is a burgeoning eagerness among consumers to embrace AI throughout their shopping journey,” said Luq Niazi, Global Managing Partner, Industries & Global Consumer Industry Leader, IBM Consulting.
Luq Niazi
“Roughly four in five consumers who haven’t yet tried AI for shopping said they would like to use it to research products, look for deals, ask questions, and resolve issues.
“This signals a clear demand for a seamless integration of technology, like AI, in retail, moving beyond the traditional paradigms to a more dynamic, personalized shopping environment. Personalization and targeted offerings are in demand, with 52 per cent of consumers surveyed interested in receiving information, advertisements, and offerings from stores that are relevant to their specific interests. The challenge and opportunity for retailers lies in responding to this eagerness for AI, leveraging the technology to enrich consumer shopping experiences at every point, from personalized recommendations to real-time inventory updates.”
Image: IBM
He said today’s consumers are not just buying products but they are seeking an enriched shopping experience, deeply integrated with technology.
“Our study reveals a definitive shift towards AI and digital technologies in retail. Shoppers want personalized, seamless experiences that blend the physical and digital worlds, particularly through the use of AI, virtual assistants, and augmented reality. The modern consumer, often using their mobile device as a shopping aid, which we found in IBM’s 2024 Consumer Study, expects a seamless omnichannel experience that many retailers are still striving to provide,” said Niazi.
“The current landscape shows a gap between consumer expectations and the retail experiences being offered. With satisfaction levels hovering around nine per cent for in-store and 14 per cent for online shopping, it’s clear there’s room for improvement. Retailers are making strides in integrating AI and advanced technologies, but the challenge remains to implement these tools in a way that truly resonates with the consumer’s desire for a more interconnected and intuitive shopping experience.”
To elevate the in-store experience, retailers must leverage the power of AI and digital innovation, he said.
“This includes deploying AI for personalized recommendations and assistance, using augmented reality for a ‘try before you buy’ experience, and providing real-time product information through mobile apps. Our research indicates that a majority of consumers use their smartphones in-store. Retailers who capitalize on this by offering a more digitized, interactive in-store experience will lead the way in meeting modern consumer needs,” added Niazi.
“Improving the online shopping experience is about harnessing AI for personalization and efficiency. Our findings highlight the need for online platforms that not only recommend products tailored to individual preferences but also offer a streamlined browsing experience. Effective use of AI-powered chatbots for customer service, user-friendly interfaces, and a seamless connection between online and offline channels can significantly enhance the consumer’s online journey, making shopping not just a transaction, but an engaging experience.”
Generated via AI
The study found that 55 per cent of respondents indicated they are eager for AI enhancements like virtual assistants and 59 per cent for AI applications as they shop. Influenced by inflation, six in ten consumers surveyed also say inflation has impacted how they shop, with 62 per cent saying that price is a top reason they switch stores or brands.
IBM said noteworthy findings from the study include:
In-Store Experience Lacks Luster: Despite a preference for physical stores by 73 per cent of those surveyed, only nine per cent are satisfied with the in-store experience. Consumers surveyed want greater variety of products available (37 per cent), more information about products (26 per cent), and faster checkout (26 per cent) in stores. Most consumers surveyed (65 per cent) are supplementing their in-store experience by using mobile apps while shopping — demonstrating a trend toward a digitally integrated in-store experience;
Online Shopping Shortcomings: Online retail isn’t immune to criticism; two-thirds of consumers surveyed discover new products via the web, yet many have expressed dissatisfaction with their online shopping journey, citing challenges finding the products they want (36 per cent), not enough information about products (33 per cent), and a cumbersome return process (33 per cent);
Consumers Desire Digital Integration: Consumers surveyed showed a strong interest in using AI technology to enhance various aspects of their shopping. Most consumers (59 per cent) said they would like to use AI applications as they shop and four in five consumers who haven’t used the technology for shopping reported an interest in trying it. Personalization and targeted offerings are in demand, with 52 per cent of consumers surveyed interested in receiving information, advertisements, and offerings from stores that are relevant to their specific interests. Yet there remains a stark satisfaction gap for current AI assistant users surveyed. Only about one-third of responding consumers who have used virtual assistants are satisfied with the experience and nearly 20 per cent were so disappointed that they don’t want to use virtual assistants again, signalling a mismatch between current tech offerings and shopper expectations;
Economic Forces at Play: Economic challenges, particularly inflation, are influencing shopping behaviours. Consumers surveyed are seeking flexible payment options, with 55 per cent desiring more varied payment options and 46 per cent reporting they would like to pay for their purchase in instalments. As inflation and economic uncertainty pinch pocketbooks, 62 per cent of consumers surveyed also say price is a top reason they would switch stores or brands.
The IBM Institute for Business Value surveyed 20,000 consumers across 26 countries on their digital habits, their use of AI and generative AI, and their expectations for brands. IBM is a leading provider of global hybrid cloud and AI, and consulting expertise. It has clients in more than 175 countries.
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.
Loblaw Lower Jarvis Street in Toronto (Image: Dustin Fuhs)
With rising food prices, consumers seeking deals can benefit from food rescuing. According to a recent survey conducted by our Lab, nearly 20% of consumers now regularly purchase “last day of sale” deals at grocery stores, often referred to more broadly as “enjoy tonight” deals. Some of these discounts can be significant.
However, that is about to change if you are accustomed to seeing food products discounted at 50%. Starting on January 14th, Loblaw will cease to offer “last day of sale” items at a 50% discount. Although Loblaw did not immediately confirm this, the company eventually responded to an inquiry from Dalhousie’s Agri-Food Analytics Lab, confirming the policy change. Going forward, consumers will only find products discounted at 30% in all of Loblaw’s owned and operated stores. While this policy was already in effect in some parts of the country, it is now extended nationally. So, fellow shoppers, the days of 50% discounted products are behind us. It’s disappointing, but Loblaw’s explanation for discontinuing the 50% practice deserves attention. This is what Loblaw had to say:
“Historically, our stores offered discounts ranging from 30% to 50% on ‘serve tonight’ type products. We are now moving towards a more consistent and predictable pricing strategy, aligning ourselves with our competitors. Nevertheless, we will continue to provide a range of discounts through in-store promotions and flyers, as well as offering deep discounts on food nearing expiration through the Flashfood app.”
Loblaw’s response raises two important questions. Firstly, the company states that it is aligning its discounting approach with competitors. Generally, discount-matching policies at grocery stores are not inherently seen as anti-competitive. However, if multiple grocery stores adopt similar policies to maintain high prices, even on products close to expiration, it could potentially be considered anti-competitive behaviour.
Loblaw Lower Jarvis Street in Toronto (Image: Dustin Fuhs)
What is concerning is that Loblaw may not have considered the broader public’s perception of its discount-matching strategy. It likely never occurred to them that this move could raise suspicion. This is another example of how price-fixing or discount-matching practices are prevalent in the industry, and this issue extends beyond just Loblaw. The culture within the industry seems to have normalized the coordination of prices across competitors, without admitting to it, say akin to an individual alcoholic in denial about having a problem.
In a free market, the focus should be on finding innovative ways to remain competitive, rather than simply mirroring the competition. Canadians expect more from their grocers.
The other issue highlighted by Loblaw’s statement is the role of food-rescuing apps like Flashfood. Food Hero and Too Good To Go are also other very popular apps. The change in Loblaw’s discount policy is likely to steer more “last-day sale” enthusiasts towards these apps. It is highly unlikely that Loblaw’s decision to end 50% discounts will lead to more food waste; instead, the products will be sold through other channels. What Loblaw is doing, however, is preventing more consumers from focusing exclusively on discounted items at the periphery of the grocery store, where the more profitable fresh goods are located.
While Loblaw didn’t make a public announcement about this change, it would have been appreciated for them to have released something, anything. Although this change may be frustrating, the rationale behind reducing discounts is quite perplexing. This is an issue that the Competition Bureau should investigate. Otherwise, Canadians may continue to find similar pricing strategies in all major grocery stores. If this is not collusion, it certainly appears to be very close to it.
Once again, it’s important to emphasize that this issue extends beyond Loblaw; it is an industry-wide concern that needs to be addressed. The bread-price-fixing scandal was just the tip of the iceberg.
The Rest by Sleep Country at Yorkdale Shopping Centre (Image: Sleep Country Canada)
Retail Insider’s Craig Patterson and Ani Nersessian, Founder at VM ID Inc., discuss the role of visual merchandising in the retail sector. Nersessian emphasizes the importance of visual merchandising in creating inviting retail environments and enhancing customer engagement. She highlights the challenges small businesses face in visual merchandising, noting that it often gets neglected due to various operational demands. She advocates for the strategic use of visual elements to optimize retail presentation and elevate customer experiences.
Ani Nersessian
Nersessian points out how larger companies set trends, and she discusses the importance of adapting these trends to fit the needs of smaller businesses. She shares her approach to consulting and package design, offering tailored visual merchandising solutions. Nersessian also touches on the psychological aspects of merchandising, such as customer navigation, product grouping, and creating an inviting space layout, which all contribute to the overall shopping experience and potentially increase sales.
Nersessian then goes on to talk about the practical aspects of visual merchandising, including the use of planograms, software tools, and the importance of experience over formal education in this field. She addresses the challenges of meeting tight client deadlines, especially during peak retail seasons, and the importance of adaptability in visual merchandising. The conversation concludes with a discussion on measuring the success of visual merchandising efforts, focusing on metrics like unit per transaction, average sales, and customer conversion rates. Ani emphasizes that visual merchandising is not just about aesthetics but is a critical component of the retail engine, driving sales and enhancing brand value.
If you prefer to listen to the audio version, it is available below:
The Interview Series audio podcasts by Retail Insider Canada are available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly audio podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.
Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!
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/
