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 48 hours.
There has been a shift in the Canadian retail landscape with owners and landlords of properties increasingly outsourcing their property management needs.
And commercial real estate firm JLL has moved into the forefront of the industry with property management that goes beyond cost and risk mitigation for better performing people, buildings and portfolios.
Johanne Marcotte
Johanne Marcotte, JLL Canada’s EVP – Retail Portfolio Management, said JLL manages all types of assets – retail, office, industrial and multi-family.
“(Retail) is the area where we’ve had the most growth over the last two years,” said Marcotte.
Overall, the property asset management group takes care of just over 53 million square feet comprising about 275 assets. The retail group looks after 19 million square feet with more than 20 properties spread out across the country – from grocery-anchored sites to community centres to urban shopping centres to more regional shopping locations.
“What we do is we manage people. I always say that I’m not managing brick and mortar. I manage resources. I manage people,” said Marcotte. “We’re building teams of best-in-class experts who provide portfolio wide strategies and local operations.
“So what we do is really bring the expertise, we bring the savoir faire, so investors can focus on their property investments. In this way, everyone can play to their strengths. The institution can do what it does best by focusing on its investment. My team can complement their actions by providing scaled services in all major markets across Canada. We work in partnership with our clients to ensure their goals are executed. In this way, we’re kind of the extension of the institution.”
Image: JLL
Marcotte said one of the biggest benefits of partnering with a firm like JLL is the scale of operations with the resources it has at its disposal as well as the performance mindset it has – and how that makes a difference in the market.
“Today our network is more than 100,000 employees across the globe. So, our network is huge. With this big network comes broad expertise, from the funding to the management or to the disposition of an asset, our extended team has the knowledge and expertise to make it happen. In all, it’s very compelling service offering for a client, for a partner,” said Marcotte.
“We’re global but it doesn’t mean that we’re not agile. In addition to our property teams, we have a group of internal best-in-class consultants across disciplines such as operations, security, sustainability, continuous improvement, and innovation. This combined team means that we can be more strategic about how we manage each asset and how we can ensure seamless execution on behalf of the owners.”
Because of its scale, JLL has its own marketplace – a worldwide selection of vendors or products available to its clients with pre-negotiated contracts, pre-negotiated services, pre-negotiated prices. It takes advantage of that to help support clients be more profitable.
Marcotte said highly amenitized properties have really emerged these days as places that are attractive to tenants. The latest trend in the industry is to create those experiences that are positive and welcoming for tenants and visitors to properties.
“The other shift is everything to do with sustainability. I really feel that today there is more synergy. Landlords are working towards common goals. I think we all have a responsibility in terms of sustainable practices and JLL is helping to lead the way with its phenomenal in-house talent.,” she said.
Southgate Centre in Edmonton. Image: YEG Adventures
Paul Lessner, JLL Canada’s SVP – National Shopping Centre Leasing, said if a retail property isn’t managed properly, it has an impact on the customer experience.
“The customer experience is twofold. It’s the consumer. It’s the shopper. But the customer is also the retailer,” said Lessner.
Paul Lessner
“Successful retailer/landlord relationships work when they’re viewed as a partnership. I always tell the retailer when I meet with them: Your success is my success. If you’re doing the sales, you can pay me more rent. If you’re not doing the sales, you can’t pay me more rent. And the rent ties back to the valuation. It’s very simple.”
Lessner said it’s important that landlords continually reinvest in their assets.
“It’s like a plant. You constantly need to be watering it. You constantly need to be feeding it. And the property management group is integral to that constant investment. They’re identifying what needs to be done,” he said.
An overall customer experience that is positive leads to more consumers visiting the property which makes it more attractive for retailers to set up shop in a well-run and well-managed property.
“I encourage leasing to collaborate and communicate with the onsite operations teams when they’re doing prospecting. Together, the teams live and breathe the shopping centre every day,” said Lessner.
Montreal Eaton Centre, photo: Shutterstock/licensed
“I am always encouraging junior leasing people that to be effective in leasing in open air or enclosed shopping centres, you need to understand your customer. That means you need to drive around the neighbourhoods, you need to understand traffic patterns. Are there schools in the area? Are there office buildings in the area? When is the mall busy? What is the competition looking like? By having this deep local knowledge, our teams can then identify what’s missing.”
“The key to everything we do is our people,” says Marcotte. “Our ability to marry the investor’s lens with our more entrepreneurial mindset is giving amazing results. We have seen concrete achievements across the properties we manage. Our secret sauce lives somewhere between our boots on the ground teams and our behind-the-scenes strategists.”
Montreal-based gourmet salad brand Mandy’s Gourmet Salads has secured a new location in the heart of downtown Toronto’s Bloor-Yorkville area.
Rebecca Wolfe, who co-founded the brand with sister Mandy in 2004, confirmed the company is opening a new location in Yorkville in early Spring at 110 Bloor St W.
“We’re right next to Starbucks. Our back wall is joined with the new Saint Laurent and it’s a really great spot. We’re so excited. We’ve always wanted to be in Yorkville but the rent was too high when we were first looking at Toronto and now we feel like we’re ready.”
The company has 11 locations currently open in Montreal and Toronto as well as two ghost kitchens in Toronto.
Mandy’s Yorkville (Rendering: Mandy’s)
Future Mandy’s Gourmet Salads at 110 Bloor Street in Yorkville (Image: Dustin Fuhs)
Brandon Gorman of JLL is handling lease negotiations for Mandy’s Gourmet Salads.
Carmen Siegel of Cushman & Wakefield negotiated the lease on behalf of the Landlord ProWinko, alongside Philip Traikos from Cushman & Wakefield and Arlin Markowitz of CBRE’s Urban Retail Team. ProWinko Canada owns the retail podium of 110 Bloor Street West. Siegel & Traikos, and the CBRE Urban Retail Team co-listed the space, as well as the other retail spaces at 110 Bloor.
International design-build firm SAJO is currently building out the space (and has built the new Mandy’s locations since 2017).
Last year, it opened a new location in Ossington in Toronto. It will be opening another new store at The Well, a massive mixed-use development in downtown Toronto, in late fall.
“We’re under construction there already and things are underway,” said Wolfe.
“In Toronto we’ll have five locations,” said Wolfe of the brand’s expansion.
Mandy’s at The Well (Rendering: Mandy’s)
All other locations are in Montreal.
“We figured that we had sort of mastered the market in Montreal and the concept was really tried and tested after almost 20 years of business and we felt that we were finally ready to take it to the big city,” said Wolfe. “It was always a dream of ours to make it work in Toronto.
“We contemplated Ottawa first and then we figured if we can’t make it in Toronto then we can’t make it anywhere and that’s when we decided to open Ossington. There was really no pure salad concepts in Toronto at the time when we opened. There was a lot of places that served delicious salads but nothing that’s exclusive to just salads. So we were kind of the first in that segment of the industry when we opened there and it proved to be a good move because people really wanted just salads.
“I think disposable income is a little bit different in Toronto and people are willing to spend on healthy food. It’s just been a really successful experience thus far.”
Mandy’s Gourmet Salads at 52 Ossington Avenue in Toronto (Image: Dustin Fuhs)
I am thrilled to see our brand’s expansion into the vibrant Bloor-Yorkville area and The luxurious Well Residences of Toronto,” shared Vanessa Fracheboud, President, Mandy’s Salads. “These new locations represent a significant milestone in our journey. It’s a testament to the hard work and dedication of our team, and it reaffirms our commitment to reimagining the salad experience through sensational spaces.
“Our future is bright, with more restaurants planned for Toronto and expansion into new markets in the west and U.S. At Mandy’s we go beyond food, redefining fast-fancy dining. Stay tuned for more!”
The first store in Toronto was the Ossington location in March 2022.
“Absolutely, we feel that we have so many in Montreal and Toronto is a much bigger market. If we can do that many in Montreal, then we can definitely do more in Toronto,” said Wolfe.
“We’re also looking to potentially open up a couple more in Montreal. We’re really investing in our team right now for scaling the company. So we’re setting up to open up a lot quicker and during the rollout of Toronto we’re also looking at a couple of locations that we’re going to do in Montreal as well.
“And following that we’re thinking of going out West. Maybe doing a couple in Vancouver and that’s the plan for the next couple of years. And then we’d love to go south of the border and we’re looking at places like Miami and New York.”
Wolfe said the brand is resonating with people. It’s not just about the food.
“As an owner and founder, I definitely think the food is best in class . . . I think it’s also the entire experience we provide. Everything from decor to music to incredible customer service. We really emphasize every aspect of the experience. I think it’s the whole combination,” she said.
“There’s not a lot of health concepts that are focused on the experience itself as well as the food.”
Wolfe and her sister Mandy opened Montreal’s first create-your-own salad bar in the back of a women’s clothing store in the Westmount area in 2004.
It’s a question that retailers have been asking now for a few years as it’s a generation of contrasts, and many preconceived notions of this young group of consumers may need to be reconsidered.
“They’re the first group in history to grow up entirely with digital and mobile technology at their fingertips. At the same time, they’ve helped play a leading role in the revival of physical stores, highlighting the draw of gathering, shopping and dining with friends in person,” says a recent report by ICSC called The Rise of the Gen Z Consumer Career-Driven, Credit-Averse and Tempted by Immersive Retail.
The Rise of the Gen Z Consumer Career-Driven, Credit-Averse and Tempted by Immersive Retail
“Gen Z members have witnessed their families face significant financial challenges during the Great Recession of 2008, driving them to become budget-conscious and price-sensitive as a result. They are express shoppers who will pay for the speed and convenience of today’s e-commerce options. They want brands to support issues such as mental health and wellness and racial and gender equity; yet when it comes to purchasing, they still value price or quality over sustainability, locally sourced products, and support for minority-owned businesses.”
For retailers looking for ways to maintain the loyalty of Gen Z consumers, the report listed some considerations to incorporate into their strategy:
Leverage social media and influencers to attract the attention of Gen Z consumers;
Ensure a seamless experience across online and in-store channels;
Streamline payment options to retain Gen Z shoppers during the purchase journey;
Position value and convenience at the forefront of your Gen Z marketing; and
Promote your brand values to align with those of Gen Z.
The Generation is defined as those born between 1997 and 2012, according to the Pew Research Center.
The Rise of the
Gen Z Consumer
Career-Driven, Credit-Averse
and Tempted by Immersive Retail
Heuman said a common thread spoken a lot about is people who have grown up with the internet. But that’s true and false depending on where people are and their age. Those on the older end of the Generation and perhaps living in rural parts of the country did not have as easy access to the worldwide web as perhaps the younger people in the Generation.
So there’s a misconception that Gen Z buys everything online.
“Right now the Canadian trend is around five to six per cent of retail purchases are made online,” he said. “HubSpot recently did a survey and found 55 per cent of Gen Z preferred shopping in-store. I think it’s a big misconception that we’re all wanting to shop online. COVID had a huge impact on online shopping because right as the generation was going into the next stage of their careers with disposable income, they weren’t able to go into stores and explore.”
Aritzia Yorkdale (Image: Aritzia)
Heuman said Gen Z has been described as the “contradictory” generation. It’s obsessed with ethics, social issues and sustainability but then a lot of them shop for fast fashion.
“Going back into stores is definitely something that Gen Z is likely to do because it is still very relevant to them to get that experience,” he said.
He said authenticity is really relevant as well to Gen Z, which is Google savvy in this day and age and can find out information in short order.
Retailers need to be aligned with the social issues and environmental issues that are important to this Generation. And are they authentic in that alignment?
There’s a lot of talk, and use, of social influencers these days in marketing campaigns by retailers. Heuman said it’s important retailers pick the right channel for them. TikTok, YouTube, and Instagram are important and relevant, but your niche may only be using one or two.
“It’s not just to put your money into TikTok influencers and watch profits grow. It’s not that simple. As far as influencers, going back to that authenticity, there’s a lot more value for retailers looking into micro influencers. Rather than spending $1 million trying to get one post from Kylie Jenner, instead spend $1 million getting 1,000 posts from micro influencers,” said Heuman. “Micro influencers have a much more engaged audience and Gen Z find those people more relatable. It’s not a person who is a billionaire. It’s these people who are just like them.”
The Rise of the Gen Z Consumer Career-Driven, Credit-Averse and Tempted by Immersive Retail
He said experiences are important as well to this Generation.
Now, as retailers are trying to figure out Gen Z still they have another generation coming up – Gen Alpha in which the oldest are about 13 years old.
“They’re going to be the next generation of consumers we’re going to be talking about in a few years. It’s something that we’ve been putting a lot of time into trying to understand with our international partners in the Ebeltoft Group,” said Heuman, adding that young retail consultants like him have started a group “Young Ebbers” looking at Generation Alpha through the lens of Gen Z.
“It’s a unique perspective that we get to have. This generation is going to come into financial power soon, and going into their careers within the next five plus years,” he said.
“And they’re going to be truly digitally native, at least in Canada and North America. They have an amazing understanding of sustainability from such a young age, as well as diversity. If you think Gen Z is well informed, it’s going to be incredible to see how informed Gen Alpha is by the time they get to make purchasing decisions.”
The world of online shopping is undergoing a significant transformation, driven by the power of generative AI technology. Retailers with online sales are adopting innovative approaches to enhance customer experiences, bolster efficiency, and foster loyalty. One such groundbreaking application is the integration of GPT-powered digital concierges, paving the way for a new era in ecommerce.
Generative AI, a force that has been steadily influencing ecommerce for years, is now making waves by introducing a level of sophistication that promises to redefine customer interactions with online stores. Retail Insider recently sat down with Kelly Thacker, SVP, Product Marketing & CMO, Retail & Consumer Goods at Salesforce, to discuss the topic. She noted that beyond merely improving product recommendations, this technology is enabling retailers to offer highly personalized shopping experiences, all while boosting productivity, conversion rates, and customer satisfaction.
Thacker noted that AI-driven product recommendations have long been a staple of online shopping platforms. Generative AI takes this concept to the next level by adding layers of nuance and intricacy. It enables retailers to target individual customers with precision, offering tailored product suggestions without the need for separate models for each shopper. Moreover, through continuous integration of user feedback, she said, AI-powered recommendations become smarter over time, leading to higher conversion rates and heightened customer contentment.
Kelly Thacker
Effortless Product Discovery
What has traditionally been the domain of in-store sales and service personnel is now being replicated online with the help of generative AI. Digital concierges are helping online shoppers discover products seamlessly, providing a white-glove service experience at scale, noted Thacker. The natural-language capabilities of generative AI are making this process feel more intuitive, opening doors to long-term customer loyalty.
Boosting User Productivity Across the Board
Generative AI is proving to be a time-saving boon for various professionals in the ecommerce ecosystem, including merchandisers, marketers, and ecommerce managers. Retailers can now automate repetitive tasks, such as generating product descriptions and crafting intelligent promotions, resulting in significant time savings. Thacker, who spoke at Salesforce’s Dreamforce conference in San Francisco recently, said that tasks that once required manual configuration are now streamlined through automation at scale, for example. Additionally, generative coding is accelerating innovation, empowering teams to stay ahead in a fast-paced digital landscape.
Elevated Post-Purchase Operations
Essential ecommerce services, such as expedited shipping, order tracking, and hassle-free returns, are witnessing enhancements through generative AI. Inventory managers are leveraging AI to refine product descriptions based on returns data and customer reviews, reducing return rates. Route managers are optimizing delivery routes sustainably, while operations teams are utilizing AI analytics to identify more efficient sourcing and shipping methods.
Fortifying Fraud Detection with AI
As fraud remains a persistent concern in the ecommerce sector, Thacker said that generative AI is stepping up to the challenge. AI’s predictive capabilities are continuously learning and adapting to evolving scamming tactics, outsmarting malicious actors. The insights gained through this process are significantly improving fraud detection mechanisms, allowing for the precise targeting of fraudulent activities without disrupting legitimate transactions.
Data Quality: The Cornerstone of Generative AI
For those considering the implementation of generative AI in their ecommerce operations, data quality emerges as a crucial factor. Harmonizing company data into a consistent format is the initial step. Once achieved, this data serves as the foundation for fine-tuning large language models (LLMs), enabling the deployment of generative intelligence. Leading AI platforms provide a comprehensive view of customer data while maintaining robust security and privacy controls. This data reservoir unlocks opportunities for automation, personalization, and actionable insights.
Thacker, as well as various experts at Dreamforce 2023, noted that generative AI is heralding a new era in ecommerce, with early adopters already reaping substantial benefits. Customers are enjoying tailored shopping experiences that breed loyalty and enhance brand reputation. For businesses, generative AI is a catalyst for productivity, allowing teams to focus on strategic endeavors and expedite innovation. Equipped with vast data resources, businesses are gaining deeper insights into their customers, ushering in mutual benefits for shoppers and retailers alike. An impressive 69% of customers express a willingness to embrace AI to enrich their shopping experiences, highlighting the remarkable potential of this transformative technology.
Giant Tiger has appointed Gino DiGioacchino as President and CEO of the company, which is Canada’s leading privately-owned discount retailer.
Gino DiGioacchino
DiGioacchino previously held the title of Interim President and CEO and was a member of the Giant Tiger Board of Directors before that.
He replaces Paul Wood who was in the role for just over two years until his departure in November 2022.
The privately-held company has over 265 locations across Canada and employs over 10,000 people.
DiGioacchino joined the Giant Tiger Board of Directors in 2017. He had previous retail experience with Walmart and Home Depot. In 2016, he stepped away from Walmart and decided to become an entrepreneur with a small private equity group.
“I think the opportunity for Giant Tiger is significant,” he said. “If you look at the 62 years that Gordon Reid’s created this company and where we’ve been and we evolved, two things really get me excited about the opportunity.
Giant Tiger at 275 Second Line West, Sault Ste. Marie (Image: Giant Tiger)Future Store Openings at Giant Tiger
“We’re a discount retailer so I think if you’re going to be in the retail space there’s really only two places you can play and being in discount is the place you want to be because in good times and bad times you have an opportunity to serve your customer in a way that they can appreciate and build loyalty and trust.
“The future is bright in terms of what we provide to Canadians. And the second thing that is probably the unique part, it probably took me two or three years when I joined the board to really appreciate the unique partnership with our local owners and what they mean to the local communities. That to me is really exciting because the more that local owner can be intrinsic, embedded into their community the better off the community is and the better off Giant Tiger is. That’s our recipe. We don’t open a store until we have someone ready who is part of that community, who wants to be a Giant Tiger owner.
“So when I look at those two just from a purely business perspective. I get really excited about the future for Giant Tiger.”
DiGioacchino said it’s always a fun question when he’s asked if he sees more stores in the company’s future.
“The easy answer is yes. But this is not about just opening stores for opening stores. This is about right store, right community, more importantly right owner. So if we don’t have that recipe, I won’t just open stores for the sake of opening stores. That’s really important. When you do it traditionally, you look at the white space in retail. And I can tell you there’s a ton of white space for us.
“But if we don’t have that owner ready we can’t open the store because that store, that community will suffer. We’ve got to play delicately with that recipe.”
Interior of new Giant Tiger store on Walkley Road in Ottawa. Photo: Giant TigerInterior of new Giant Tiger store on Walkley Road in Ottawa. Photo: Giant Tiger
Mary Dalimonte, member of the Giant Tiger Board of Directors and Chair of the Giant Tiger Human Resources and Compensation Committee, said: “Gino’s exceptional leadership acumen, strategic retail insights, solid understanding of Giant Tiger’s foundation, and unique recipe for success in the discount retail space make him the ideal choice to lead Giant Tiger. The Giant Tiger Board of Directors has tremendous confidence in Gino’s ability to continue to steer Giant Tiger as it grows its consumer base and builds upon its stellar reputation for strict adherence to low prices and saving Canadians money at every possible opportunity.”
DiGioacchino said Giant Tiger is the place where Canadians can come and save more every single day.
“Having that everyday low price is a mission for us and purpose for us,” he said. “It’s so important.
“I think right now food inflation, product inflation, is everywhere. We have to work harder to find ways to continue to provide Canadians with a way to save more. So the more we can figure out how to operate better, how to talk to a vendor, find a different brand, develop a private label that could transfer the cost, the better we’ll be.
“I think for retail it’s a challenge. But retail has always been challenging. The customer is changing fast and we need to keep pace and anticipate their needs. I go back to our secret recipe at Giant Tiger. That local owner responds well to that local customer. So we listen to what they need and then we deliver on that versus us telling them what to do.”
Purdys Chocolatier is planning to open up three pop-up locations in new markets in Alberta & BC for the very first time in November.
Kriston Dean, VP of Sales & Marketing, said Purdys has been working with landlords on vacant commercial retail units they have available in different markets.
Kriston Dean
“We’ve created a modular fixturing package that allows us to go into any vacant CRU and configure however we need to based on that particular square footage or layout of store,” said Dean.
“It will appear to be real fixtures in a real CRU. It will appear as if we are a real store and we are planning to be there from November 1 in these locations through April. So through all of our big chocolate season we will stay open in these locations.
“The only thing we’re not able to do in a temporary or a pop-up store from a Purdys perspective is two things – ice cream because we’re not getting into plumbing and all those things and the loose chocolates which you can pick from the case. Everything’s pre-packaged gifts, seasonal gifts, and then chocolate bars and snacks. But it will appear like a regular store.”
Dean said the company has studied its customer behaviour from all of its channels. And when it looked at the data for where they were shopping online and through its various programs, and looked at all the comments from social media, the company identified about 15 markets in Canada that were significant for it.
“Being a sensory product like chocolate we know the physical store is really important for our experience. We took a look at these 15 markets and then it was conversations with landlords and what’s available. Not everyone has an available space that will work for us and we ended up with these three markets for our first test.”
Image: Purdys Chocolatier
The pop-up stores will be in Fort McMurray, Alberta (Peter Pond Mall), Cranbrook, BC (Tamarack Centre) and Courtenay, BC, on Vancouver Island (Driftwood Mall).
“We’re taking this as our first test. We’re going to learn a lot through Christmas for sure and we’re hoping this becomes a regular (plan). There’s a couple of things that can happen from these pop-ups,” said Dean. “Either the market is really strong and we decide to look for a permanent location if there is one for us to take in those markets and turn it into a permanent or we look at the opportunity to continue to come back the following Christmas.
“And we’re already looking for Christmas 2024 on additional markets that we can get CRUs in.”
The company has 81 stores from Vancouver Island to as far east as Ottawa. Its permanent stores are between 700 to 900 square feet. The pop-ups in some cases are 1,200 square feet.
Purdys Chocolatier at Sherway Gardens (Image: Purdys Chocolatier)Purdys Chocolatier at CF Market Mall (Image: Purdys Chocolatier)
In the past summer, the company has been busy renovating some of its existing stores.
A newly-renovated Purdys at CF Market Mall in Calgary opened on September 23.
“We’ve had five or six renovations this summer,” said Dean. “We do all of our renovations in the summer because Christmas, Valentine’s, Easter (is busy). That’s kind of our build time – June to September.
“The Market Mall renovation is a full layout, new fixture, new design, total rehaul. We put out a newer design package just before COVID in 2019. We started building with this new design and approach.”
Purdys Chocolatier at West Edmonton Mall (Image: Purdys Chocolatier)
Purdys also doubled its size at the West Edmonton Mall during the summer.
“We are still looking for permanent locations to expand,” added Dean. But nothing is planned right now.
The company was founded in 1907 in downtown Vancouver when Richard Carmon Purdy started selling homemade chocolates. The first chocolate shop opened at 915 Robson Street.
Purdys Chocolatier at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Commercial real estate firm Colliers says retailers who have developed synergies between their online platform and physical storefront are 35 per cent more likely to be profitable.
In its recent report, A Full Cart: Maximizing E-commerce and Brick and Mortar Retail, Colliers made the following recommendations to owners and managers of retail assets:
Omnichannel retail. When assessing the financial strength of a retailer, consider their omnichannel strategy, particularly their online presence;
Convenience on site. Consider enhancements – such as redesigning pedestrian walkways or adding real-time parking data – to facilitate convenience across the property, particularly for necessity retail;
Property maintenance. Even during periods of financial restraint, uphold a clean and well-maintained site for all retail asset classes, as it’s deemed important, particularly for high income shoppers; and
ESG. When promoting ESG practices, amplify retailer initiatives as opposed to property initiatives, as consumers place greater importance on the actions of the retailer as opposed to the property.
Stephanie Hannon
Stephanie Hannon, Senior Vice President and National Lead, Retail Services for Colliers Real Estate Management Services, said “the focus of this (report) is to have an owner understand what drives a consumer to their asset, and the top four elements of importance for a consumer in identifying which properties they wish to travel to and why.”
“We want to emphasize to real estate owners the importance of considering a retailer’s brand identity, both online and offline, as well as how informed we believe consumers are about the elements that define the retailer’s brand,” she said.
“And what else makes you go to a centre? What makes you pass a centre to go to the next one? Why would that compel you?”
Here are the key findings from the report:
Non-necessity products are purchased more frequently online than necessity products. There are no products consumers buy exclusively online – far from it. Survey respondents were asked to rank, on a scale from 1-5, how often they would buy certain products online versus a physical store. While none were bought exclusively online, books, electronics, and toys topped the list of products most frequently purchased online when given the choice;
The higher the income and level of education, the higher likelihood of shopping online. Younger consumers who live in urban settings with a high income and a high level of education were the most likely to report shopping online daily or weekly. As a result, retail properties situated in more affluent neighbourhoods or wishing to target this demographic are encouraged to have a strong omnichannel presence;
The lower the price of the product, the greater likelihood of purchasing online. The price of the product impacts whether a consumer is more likely to purchase the product online or in-store. This is particularly true of non-standard products compared to standard products like books and electronics;
Convenience tops the list of reasons to shop online. The prime motivator for shopping online is convenience. Following convenience, the ease of comparing prices, home delivery, and a wider array of products were cited as the top reasons to shop online;
The willingness to shop in-store depends heavily on product pricing. When choosing a retail property to visit, shoppers prioritize product pricing for both necessities and non-necessities, with high rankings for cleanliness and variety of stores. A noteworthy difference between necessities and non-necessities has to do with proximity. When shopping for necessities, consumers put a heavier emphasis on proximity;
Consumers value proximity when shopping for necessities. On average, shoppers are willing to travel up to 10 kilometres for necessities yet will travel 14 kilometres for non-necessities. Shoppers with higher earnings, likely the largest consumer of non-necessities, were willing to travel less for necessities (max nine kilometres) yet travel further for non-necessities (max 18 kilometres). Necessity retail includes goods that are purchased with regular frequency regardless of income, including grocery stores and pharmacies. Non-necessity retail, typically housed in an enclosed mall, are goods purchased when there is greater discretionary income, including apparel, health and beauty and home décor;
Environmental considerations in retail. Consumers place a small level of importance on a retailers’ environmentally responsible practices. 35 per cent of customers – predominantly a younger demographic – seek out retailers with a strong environmental record, including, but not limited to sustainable sourcing and energy efficiency. They are slightly more likely to look to the retailer compared to the retail property for evidence of these practices; and
Social considerations in retail. Consumers place a slightly higher importance on a retailers’ socially responsible business practices – including fair labour, diversity and inclusion, and community engagement – compared to their environmental practices. Consistent with the environment, they are more likely to look to the retailer more so than the retail property for strong corporate social responsibility.
Hannon said pre-pandemic the pipeline in non-necessity retail was shrinking.
“Pre-COVID we started to see a retreat of retailers out of Canada, and during COVID nobody really knew what was going to happen.
Photo: iStock
“Now, there are a number of new players in the marketplace. This has encouraged real estate owners to think creatively about what drives success and further focus on consumer needs,” Hannon said.
“On the necessity side, we remain strong. Non-essential categories are evolving and owners must provide both an ease of shopping, cleanliness, and access, but also variety.”
Hannon said when the shopping centres reopened, they were packed with people. Restaurants were busy. People started traveling again.
“Consumers are particularly interested in having great experiences at great value,” added Hannon. “If you are servicing the consumers, as an owner, you really must put extra effort into making sure that experience is there whether it be your tenant mix, environmental and social awareness, or convenience and accessibility.”
*Retail Insider partnered with Colliers for this article.
Craig and Kyle Tomlin, Director of Events in Canada for ICSC, discuss the highly anticipated ICSC@CANADA 2023 Conference, set to take place from October 2nd to 4th at the Metro Toronto Convention Centre North Hall in downtown Toronto. This event serves as a pivotal moment for the Canadian retail and commercial leasing industry, attracting attendees from both Canada and the United States.
Kyle Tomlin
One of the standout features of the conference is its vibrant show floor, which has evolved over the years. In addition to traditional elements like the food hall, the event now boasts a show floor theater where essential industry sessions will be held. Attendees can also enjoy the ICSC refreshment lounge, generously sponsored by Starbucks, for networking and grabbing a coffee.
The conference agenda places a strong emphasis on technology’s role in retail, with sessions covering augmented reality, artificial intelligence, and more. While deal-making is a significant aspect of ICSC Canada, the event also offers invaluable educational content, making it a must-attend for industry professionals looking to stay informed and network with key players.
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.
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Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past three days.
