The necessity for increased competition within Canada’s grocery industry is a consensus that resonates across the nation. The identification of a prospective entity capable of catalyzing transformation within our food retail landscape, however, remains a formidable task. Contemplations veer towards the potential entrants, such as the Germany-based Aldi and Lidl, already ensconced in the United States, or perhaps Alimentation Couche-Tard, which embarked on a notable bid to acquire France-based Carrefour last year. Furthermore, one cannot dismiss the erstwhile anticipation surrounding Amazon, notably when it acquired Whole Foods for a princely sum approaching $14 billion USD in 2017. Yet, this anticipation has since given way to a more tempered assessment of Amazon’s performance in the grocery sector.
At the juncture of the acquisition, there was a prevalent belief among analysts that Amazon would seamlessly transfer its online successes into the realm of physical grocery markets, both in the United States and Canada. Indeed, the announcement of Amazon’s acquisition of Whole Foods elicited a pronounced downturn in Canadian grocery stocks. Loblaw and Empire, the conglomerate behind Sobeys, experienced share price depreciations exceeding 3.5 percent, while Metro observed a nearly three percent decline in its stock valuation. Canadian grocery retailers swiftly pivoted towards the burgeoning food virtual market, marked by the proliferation of “Clicks and Collects.” Despite these efforts, however, e-commerce continues to constitute less than four percent of Canada’s comprehensive food retail market, even amidst heightened investments in response to the exigencies of the pandemic.
Image: Whole Foods
Yet, since its acquisition, Whole Foods has failed to exhibit substantial growth. The preceding year witnessed virtually stagnant net income growth, a stark contrast to the promising eight percent experienced in 2017. Amazon’s strategic reliance on high-tech augmentations to the Whole Foods shopping experience, including self-checkout lanes bolstered by biometric payment mechanisms, garnered lukewarm reception at best. Moreover, the footprint of Whole Foods has remained unchanged since its acquisition. While the United States boasts approximately 500 stores, Canada’s count remains fixed at a mere 14. It is imperative to note that the cost of the average grocery basket at Whole Foods substantially eclipses the norm, a disconcerting observation in an era marked by skyrocketing food prices.
In addressing the topic of escalating food prices, Amazon’s ambitious foray into cashier-less grocery retailing, as evidenced by Amazon Fresh, has encountered its own set of challenges. This venture, perceived as a technological revolution in food retailing, eliminates the need for cashiers and employees, relying instead on sensors and smartphones. Presently, Amazon Fresh operates 38 stores, none of which are situated in Canada, although a few are scattered across Europe. Notably, Amazon temporarily halted the expansion of this venture less than a year ago, ostensibly for a comprehensive reassessment. In practice, these stores have often provided lower-quality products at inflated prices, resulting in an underwhelming consumer experience. Amazon, as it stands, is in search of a stable footing within the grocery industry, and Amazon Fresh remains, at best, a work-in-progress.
For those Canadians yearning for increased competition, the onus for improvement falls upon Amazon. Regrettably, Amazon is not poised to serve as Canada’s culinary budgetary guardian angel in the immediate future. Nevertheless, one may ponder whether the Canadian market poses unique challenges compared to its American counterpart. Ironically, the small grocery chain T&T, under the auspices of Loblaw, is preparing to embark upon the American market, commencing operations next year in the greater Seattle area. This development stands in stark contrast to the last attempt by an American grocery retailer to penetrate the Canadian market, a venture undertaken by Target in 2014, which concluded with well-documented challenges.
In summary, the imperative for increased competition within Canada’s grocery sector is irrefutable. The search for a catalyst to drive transformation within this domain continues to be a complex endeavor. While the promise of Amazon’s entry into the grocery realm was a cause for excitement, its performance to date has left much to be desired. Consequently, the Canadian market awaits a formidable entrant capable of reshaping the grocery industry landscape, as the quest for heightened competition persists.
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.
With the recent opening of Japanese fashion brand Uniqlo at CF Chinook Centre in Calgary, it may be only a matter of time before the popular retailer also opens in sister shopping centre CF Market Mall.
In fact, white hoarding is in place currently for a huge space in the heart of Market Mall, near the children’s play area, with a building permit sign on the walls for a “redemise”.
But officially there is no confirmation yet on what’s happening in that space.
“We have a new client that will take possession in the New Year and be joining our retail mix which I can’t name,” said Paige O’Neill, General Manager of Market Mall.
“They’re taking over about four stores.”
Future Uniqlo in CF Market Mall (Image: Mario Toneguzzi)Future Uniqlo in CF Market Mall (Image: Mario Toneguzzi)Future Uniqlo in CF Market Mall (Image: Mario Toneguzzi)
When asked if this is following in the footsteps of the big opening at CF Chinook Centre recently, O’Neill said: “Everything follows on the footsteps of Chinook. Athleta, JD Sports. When retailers are looking at a marketplace like Calgary and they’re looking to place one or two stores, I’d like to think that they’re looking at Chinook and Market Mall because we completely cover the city and they probably wouldn’t need many stores beyond that.”
The past year has been a busy one for leasing activity at Market Mall with some big retailers still to come in the near future.
“We had a lot of openings early in the New Year,” said O’Neill.
Don’t Yell at Me in CF Market Mall (Image: Mario Toneguzzi)
In the food court, there was Hurry Curry, Lava Grill, Kor, Stuffies.
“Our food court really became full again and also Don’t Yell At Me which is a bubble tea place – very unique name,” she said.
“Through the Spring and Summer, mostly in June and July, we had Pandora relocate and built a new store. We’ve had Nike open, JD Sports open. The Latest Scoop has relocated. We’re making some room for some new clients and Team Town Sports opened.
JD Sports in CF Market Mall (Image: Mario Toneguzzi)Future Decathlon in CF Market Mall (Image: Mario Toneguzzi)Future Decathlon in CF Market Mall (Image: Mario Toneguzzi)
“Decathlon, which took over the Toys R Us location, will open at the end of September. Athleta opened too.”
Alo is expected to open in early 2024.
O’Neill said Decathlon opens a new market for the north part of the city. The retailer currently has a location in the south part of Calgary at Southcentre Mall.
“It’s a unique retail offering. It has a wide variety of products. It also doesn’t necessarily compete too much with the Team Towns and the Sport Cheks to a certain degree, especially equipment wise. They don’t necessarily carry certain things in a larger capacity like hockey and golf whereas that market has been taken over by a lot of the other players in the city. But they have everything from equestrian to hunting to cycling,” she said.
Athleta in CF Market Mall (Image: Mario Toneguzzi)
“It’s definitely unique. The price point is unique. And they carry their own brands. So it’s definitely a nice, unique feature to north Calgary.”
The athleisure retail market is booming these days.
“I think COVID had an influence on that, whereby people were working from home. They weren’t necessarily in the suit and ties. And we’ve seen very much of a transition and even the athleisure stores carry business casual in some respects. If you walk into an Athleta, you can find workout clothes, you can find something that you could actually wear to work. These days, depending on your environment and your profession, that would be acceptable for sure – and fashionable actually,” said O’Neill.
“Even Nike carries some clothing. JD Sports some of the streetwear. They’re all sort of expanding. Even lululemon has the wear men and women could wear to work. I think fashion has shifted in some workplaces. It’s become a little more business casual, casual, depending on the environment.”
Nike in CF Market Mall (Image: Mario Toneguzzi)Hurry Curry in CF Market Mall (Image: Mario Toneguzzi)
O’Neill said the food court at Market Mall is coming into its own. Some of the establishments like Hurry Curry are more of a fast casual concept which is not traditional food court offerings.
“There’s definitely a newer patience factor I would say with some of the clients in food courts these days. I think the quality is there. A lot of the food court clients are still struggling with food prices, higher prices, struggling to find people in the workforce,” she said.
O’Neill said traffic at Market Mall is up from last year but still not quite at 2019 levels.
“But it’s very strong traffic and we’re starting to see obviously the back to school and we’ll have the traditional lulls going into Christmas but traffic’s been pretty good,” she said, adding the growth of the nearby mixed-use University District with its residential component will be beneficial for Market Mall.”
“The density in north Calgary is also beneficial. It’s growing. There’s still communities growing in the north. I think going into the Christmas season with all the new stores opening, we anticipate a pretty good Christmas season here.”
Reitmans in CF Market Mall (Image: Mario Toneguzzi)Future Purdy’s in CF Market Mall (Image: Mario Toneguzzi)Tim Hortons in CF Market Mall (Image: Mario Toneguzzi)
Financial District in Toronto (Image: Dustin Fuhs)
Canadian retail sales began to decrease in June 2023 with All Stores in June decreasing -0.4% YOY and All stores Less Automotive, Food, Pharmacies down -2.7% YOY as inflation continues its stronghold on Canadian consumers.
The decreases in sales is in part due to the continued decreases in spending in the two most expensive cities in the country: Toronto and Vancouver, down -1.2% YTD and -0.6 YTD respectively. These two cities account for, on average, approximately a quarter of total Canadian retail sales. As such, with the cost of living being the highest of all cities in Canada, consumers in these regions seen to be cutting back their spending more than others. In addition to the cost of living, June was a period of unprecedented wildfire smoke in Ontario, which likely kept many consumers inside and not spending. There are numerous categories in June that are reflective of the effects of inflation:
Supermarkets and Other Grocery Stores, though up 9.3% YOY, rising food costs are up 9.1% over 2022, therefore a much less impressive increase,
Building Material and Garden Equipment, down -10.1% YOY, and
Furniture, Home Furnishings, Electronics and Appliance Stores are all down in June, reflecting the effects of inflation down -4.8% YOY.
Apart from food, both other categories comprise of big ticket items, products that customers simply cannot afford at the moment. Rona, a significant retailer in the Building Material and Garden Equipment category, reported the elimination of 500 jobs in June as a result of these changing market conditions.
81% of Canadians intend to shop at brick-and-mortar retailers in their neighbourhood rather than online,
60% of Canadians expect to spend on stationary (the top category), whereas in 2022 stationary didn’t even crack the top ten, and
Big box stores are expected to take 62.3% of back-to-school sales in 2023.
The expected back-to-school trends from the survey are not surprising with wider inflation trends, such as consumers not looking to purchase electronics (typically big ticket items). As we are in the throws of back-to-school at the writing of this bulletin, and even approaching Halloween, JCWG is thinking about:
Did Amazon Prime Day have the impact on Canadian sales that it does in the US in July?
Will Halloween be the latest shopping event to experience the post-pandemic “holiday creep” (moving the shopping season further forward)?
Which retailers will be the most successful in back-to-school with the changes in consumer preferences?
Are city sales decreases in part as a result of tourism, or mainly residents?
How have YOU prepared for the transition from back-to-school to Halloween?
Canadian Retail Sales by Product Category, Same Month ComparisonCanadian Retail Sales by Store Category, Year to Date ComparisonRetail Trade, Canada, All Stores, by Geographic RegionsCanadian Ecommerce Sales
According to the Canadian Federation of Independent Business, one-fifth of all businesses in Canada—nearly 250,000 small businesses—could be at risk of closing their doors next year unless the federal government changes the deadline for repayment of the Canada Emergency Business Account.
Currently the deadline is December 31. If the CEBA loan is not repaid by then, small business owners will lose the up to $20,000 forgivable portion and pay the entire amount at a five per cent interest rate.
CFIB is pushing the federal government to extend the repayment deadline for the CEBA loan to the end of December 2025 or at least 2024.
“Almost 900,000 CEBA loans were approved across Canada. Many businesses had no choice but to take on this loan due to circumstances beyond their control. This includes businesses in some of the hardest hit industries such as the retail industry and tourism sector. Mandatory business closures and other government health restrictions left businesses with severe income losses and cash flow issues,” says a recent letter sent by more than 250 business associations to Deputy Prime Minister and Finance Minister Chrystia Freeland.
“Despite their best efforts, high interest rates, inflation and increased labour costs are making it difficult for small-and-medium size businesses to keep their heads above water, let alone make any dent in the debt many had to take on to survive pandemic restrictions. A recent analysis of over 15,000 Canadian businesses found that inflation, input costs, and interest/debt costs are the three most acute obstacles faced by business (at 56 per cent, 40 per cent and 38 per cent, respectively), and the smaller the firm, the more constrained they are by debt.”
The letter says 49 per cent of small businesses are still making below normal revenues; 50 per cent of Canadian foodservice operators are currently operating at a loss or breaking even compared to 12 per cent pre-pandemic; and, 45 per cent of Canada’s tourism businesses are likely or somewhat likely to close within the next three years without government intervention into their mounting debt load.
Many small business owners are also now discovering that in the fine print of the loan many of them unknowingly provided a personal guarantee on the loan, meaning even if the business closes its doors the owner is responsible personally for the debt.
That’s raising fears that this could lead not only to more business closures in the country but also to more personal bankruptcies.
In this video interview, Karen McKee, President of Warm Buddy, discusses the plight of small business owners today and the challenges they continue to face.
The Video Interview Series by Retail Insider is available on YouTube.
Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.
Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.
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.
Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)
Some great news for insomniacs in Canada.
Insomnia Cookies, a brand known for delivering warm cookies to satisfy late-night cravings, particularly for the university community, is officially opening its first store in Canada September 9 at York University in Toronto.
Insomnia Cookies was conceptualized in 2003 at the University of Pennsylvania when founder, Seth Berkowitz, set out to fill the void in late-night food delivery options, specifically when it came to satisfying his sweet tooth. Today, Insomnia Cookies is a rapidly-expanding late-night bakery concept headquartered in Philadelphia, with over 245 locations and counting, on or near college and university campuses across the U.S., and now in Canada.
Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)
Sébastien Piché, Regional Director, Canada, said the brand specializes in cookies, ice cream and also milk and non-milk products delivered late at night until 1 a.m. or 3 a.m. depending on the days of the week.
Sébastien Piché
“We deliver them warm all the time,” he said of the cookies.
Tom Carusona, Chief Marketing Officer, said about 65 to 75 per cent of the brand’s stores are in some way associated with a university.
Tom Carusona
“That could mean that they’re within walking distance of campus. It could mean they’re on campus or it could be in a city like New York City near Columbia University but you’re within the city. You’re part of the city but you’re servicing that college community. It’s a very important part of the brand. It’s where we started and it will be a continued part of the brand which is obviously why we’re so close to York,” he said.
All Insomnia Cookies locations do dine-in, takeout and delivery. But it’s most well known for its warm cookie delivery. Locations are typically between 800 to 1,000 square feet. All the cookies are baked in each location but the cookies are centrally produced so that it can ensure quality across its entire footprint. There are about 20 different flavours always on the menu.
Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)(Image: Insomnia Cookies)
Piché said there’s “a big white space” in Canada for the brand to grow.
“It’s the perfect product for late-night delivery that touches students for sure because it’s part of the DNA but also extending to regular consumers that are looking for different options late night and the evening and also for light industrial areas where we have offices around that are looking for something a little bit different than they would typically get from a traditional bakery concept that they would get in their area,” he said.
“This is what’s interesting with York as a first step. We do have a nice combination student campus for sure as we are on campus, but the 10-kilometre radius we’re around has a lot of residential and a lot of light industrial as well. It’s a good way for us to create some awareness about our brand, not just from a student base but also globally.”
Carusona said the company goal is for more than 50 locations in Canada and maybe close to 100.
“It’s hard to say that because we’re just opening now. We want to make sure we feel really confident in the brand. We’ve seen it work in the U.S. Since I’ve been here we’ve added well over 100 stores in just the last few years. We’re not franchised in North America at all. These are all company-owned stores. So I feel really confident certainly within the Greater Toronto Area, Montreal, Vancouver,” he said.
“There’s lots and lots of great places for us to open up and our strategy with real estate is kind of twofold. One is certainly to be where the college students are but the second thing is what we call our own the night strategy. Finding the places where people are up and out enjoying the night, going to restaurants and bars, central business districts where lots of young people live, get delivery, are out at night. There’s lots and lots of that across Canada. We feel really confident and are excited about our expansion.”
Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)Insomnia Cookies at York University in Toronto, Ontario (Image: Insomnia Cookies)
The brand has produced a specific cooking just for Canada that includes SKOR.
“Our approach to the menu is what we call a how you dream it approach,” said Carusona. “The thought is we want to give our Insomniacs as many flavours as possible to choose from and then as many ways to put them together as possible . . . There’s lots and lots of different ways to enjoy the flavours and that’s really important for our Insomniac community.”
Insomnia Cookies’ first Canadian location is at 85 The Pond in The Quad at York University.
The retail industry has always been a dynamic landscape, evolving rapidly to keep pace with changing consumer behaviours and technological advancements. As the digital era continues to reshape how consumers shop, retailers increasingly turn to Managed Service Providers (MSPs) to navigate this transformation. These tech-savvy partners are proving to be invaluable allies in ensuring seamless operations, optimal customer experiences, and improved bottom lines for retailers of all sizes.
The Digital Retail Revolution
In a world where e-commerce and brick-and-mortar stores coexist, a retailer’s success hinges on its ability to offer a seamless, omnichannel experience. From digital in-store experience to inventory management systems and point-of-sales applications, the technology infrastructure required for modern retail can be overwhelming and put pressure on their network. Finding the right balance between investment in technology and other business priorities is a crucial challenge. This is where Managed Service Providers step in.
What are Managed Service Providers (MSPs)?
Managed Service Providers are companies that offer technology services to businesses on an outsourced basis. Their key focus is to take over managing, maintaining, and optimizing the network, enabling retailers to concentrate on their core operations while leveraging cutting-edge technology.
Mathieu Bergeron
“We’re seeing the retail space in need of technology. Typical retailers act as an entity with multi-sites that need to communicate with their corporate head office, with the centralized application,” said Mathieu Bergeron, VP Marketing & Strategy for GoCo, a Canadian managed network provider.
“Whenever they need to have access to their applications through the cloud, whenever they need to increase their bandwidth, we provide them with networks that enable not only a specific store or a specific restaurant or a specific location to get what they need from their perspective but also to network together through their corporate offices and corporate application.
That includes digital menu board access, in-store Wi-Fi, higher bandwidth availability, wireless redundancies so that their point of sales and critical applications stay online whenever there’s an outage with their main circuit, traffic prioritization so core applications are prioritized over employees surfing on the internet for example.”
“We’re conscious that retailers in Canada are facing pressure from inflation or employee shortages. They want some good technology but don’t necessarily want to pay large investments upfront. So, at GoCo, we’re purposely streamlined to offer them good service with next-generation technology at a price they can afford. We enable their digital transformation. We can ensure that their critical applications stay up when they need them.”
The retail industry’s future lies at the intersection of technology and consumer demand. Managed Service Providers are emerging as trusted partners, guiding retailers through this exciting yet complex digital transformation journey. By seamlessly integrating technology, enhancing security, and enabling retailers to focus on their core competencies, MSPs are paving the way for a new era of retail success.
In a world where digital interactions increasingly shape shopping experiences, MSPs are the unsung heroes, driving the retail industry’s evolution and helping businesses thrive in the face of technological disruption.
Backed by TELUS, the innovative GoCo model provides businesses with a fully managed approach that reduces retailers’ expenditure on IT personnel & equipment and increases the reliability and performance of their network, security and voice services. With over 55,000 managed sites across the country, they are a leading managed network services provider in Canada.
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*GoCo partnered with Retail Insider and sponsored this article. To work with Retail Insider, contact craig@retail-insider.com
Back to School at Indigo CF Toronto Eaton Centre (Image: Dustin Fuhs)
As back to school shopping is coming to an end, Jeff Doucette, General Manager at Field Agent Canada and Jamie Cormack, the co-founder of Herschel Supply Co, discuss the current state of back to school shopping, new trends, and what consumers can see in future years.
Early Bird Gets the Worm
The biggest difference Doucette and Cormack have seen this year is consumers completing their back to school shopping earlier – even starting in May.
Jeff Doucette
“Back to school shopping continues to get earlier and earlier every year. We have seen back to school displays starting to hit the stores right after the kids are out of school or if you are at Costco, sometimes you see the back to school products starting in late May. Parents are definitely shopping earlier than usual,” says Doucett.
Doucette says the three biggest retailers for this year’s back to school shopping are Walmart, Costco, and Dollarama. All three started displays earlier this year as Doucette says around forty percent of parents started shopping earlier compared to previous years and one reason might be because of the supply chain. As parents last year experienced supply shortage, Doucette says it could have scared parents into shopping earlier.
Back to School at Walmart Canada (Image: Dustin Fuhs)
The second reason for the increase of shopping earlier could be because of inflation.
“People are shopping for value. Everyone knows inflation is out there and it is real, so they are shopping earlier. Maybe you can pick up a few things along the way to save some dollars versus going out at the last minute and buying everything at whatever price in the last week of August. Some of these smart shoppers are getting out earlier because they know it is going to cost more this year,” says Doucette.
Jamie Cormack
Herschel Supply Co has also noticed consumers shopping earlier compared to previous years.
“Back to school feels like it is back to what it was before the pandemic. We obviously have seen an increase in sales and we are seeing some early shoppers. It is nice to see that the season is getting back to normal and it feels a lot more like the old days,” says Cormack.
What Consumers Are Looking For
This year, Doucette said consumers are not just shopping for school supplies, but are shopping more for clothing, footwear, and backpacks.
“When we take a look at the types of things people are buying, we definitely see footwear and clothing being important categories. People are shopping more for clothes than they are for basic school supplies such as pens and pencils,” says Doucette. “Some schools are now supplying basic school supplies or allow parents to buy in advance, so only 81 percent of people are shopping for actual school supplies.”
Herschel Supply Co at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Two school items parents are buying less of this year Doucette says include electronics and hand sanitizer.
Last year, 53 percent of consumers said they would buy electronics such as calculators and computers but this year it has decreased to 39 percent. One reason for this change could be because during the pandemic, a lot of students needed technology at home for remote learning. As these products have a tendency to last years, there was no need to buy more or replace.
“We did see some things on the way down, like electronics and maybe a bit obvious but things like hand sanitizer. Only 34 percent of people said they would buy it this year and that number was 58 percent last year, and was 75 percent at the height of the pandemic. So that is one category that less and less shoppers are looking to buy,” says Doucette.
On the flip side, Doucette said backpacks are popular this year as it seems like 70 percent of kids have bought a new backpack this year.
Herschel Backpacks – New and Improved
Herschel Supply Co at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Herschel has lined up the 90s trend for this back to school season and is continuing to evolve as technology grows.
“I think this year in particular really lines up well for us because on a trend front, the 90s for us is back and that really blends well with everything we do. We really look at classic design, utility design with a modern twist,” says Cormack.
Compared to previous years, Cormack said Herschel has taken a step forward into technology and fabrication. The brand has also taken a step forward into sustainability as over 90 percent of its brands are sustainable.
“We really focused on textiles and truly looked at the user today going back to school with more technology. So making sure that we have the right feature set to match what students are looking for to go back to school,” says Cormack.
Cormack says its backpacks have more computer sleeves, better internal pockets, smaller pockets for things like air pods, and chargers.
Image: Herschel Supply Co.
Image: Herschel Supply Co.
The most important thing Cormack said was they designed their backpacks to have easy access and to have pockets that make sense.
“We do not want to just add a bunch of pockets – we want to add the right pockets in the right places so that our consumer can unzip a bag and go in the pockets just in the right place and where it feels natural and unforced,” says Cormack.
One thing Herschel has paid particular attention to is computer sleeves. In addition to protecting tablets with its built-in sleeves, Cormack says they have made the sleeves easier to access.
“If you are just sitting down, you can access the tablet from the side of your bag, or you can unzip the bag for access. So we have multiple options on how to access things easier, making it faster to pull things in and out,” says Cormack.
As some things progressed, some features have stayed the same such as the need for a water bottle or hoodie. In terms of finding the right backpack for your needs, Cormack says consumers need to love the aesthetic first, think about what they need it for, and if you want a smaller or larger bag.
“You have to fall in love with the aesthetic, volume of the bag, and then you dive into the features. Our bags are consistent through having water bottle packers, external pockets, and small pockets for keys, but when you get inside – you have to determine if the bag is right for you,” says Cormack.
As for upgrades to next school year, Cormack says they have already started working on their plans and are constantly looking into upgrades.
“We have already started working on our backpacks for next year. Nothing is drastically different, but the brand feels so progressive as we have new partnerships planned, new prints, new colours, and some new silhouettes coming so it is really exciting,” says Cormack.
What’s For Lunch?
Snack Aisle at Metro (Image: Dustin Fuhs)
Being out of remote learning and back in school also means parents need to organize lunches and snacks.
“That side of the business has probably rebounded quite a bit in terms of lunch packing items versus lunch you might feed your kid at home. I might cook them spaghetti for lunch if they are home, but if they are off to school – I might be making them a sandwich,” says Doucette.
Doucette says the amount of food bought per household probably will not change; however, the type of food consumers buy will.
One thing Doucette thinks is missing is food retailers capturing the “food basket throughout the year.”
“I have not seen it yet, but I think it would be an amazing idea for food retailers to have a cafeteria that has a menu for the week as it would be interesting to have different meal plans.”
If food retailers have an option for five day meal plans it would make it easier for parents to quickly shop for the week. Doucette also mentioned retailers having everything for school in close proximity and solutions for mix and match lunches – “that could go a long way to being a really convenient solution.”
Making Shopping Painless
Back to School at Staples Canada (Image: Dustin Fuhs)
Doucette has said most back to school retailers, such as Walmart and Staples, have its back to school shopping all in one place – a shop in shop. Consumers are doing the bulk of their shopping from a dedicated back to school area and said even with his kids, this year he was able to complete 95 percent of his shopping in the section.
The shop in shop experience also is an opportunity to show parents what is cool this year for kids and some retailers go further and divide it by age group, making it easier to find the right products for students.
Online shopping has also seen an increase as Doucette says at least 80 percent have done some of their shopping online.
“When we look at where consumers are shopping online, Amazon wins the battle in terms of shopping back to school online and Walmart comes second. The ability to push on the ecommerce side makes it even easier, even if it is not delivered to your home,” says Doucette.
Doucette said online retailers could have a landing page for back to school with a student checklist and either have the items shipped to your home or pick it up at a store location. They would also have the opportunity to divide products into different age groups, again making it easier to find what is cool as parents may not know what to buy for their kids.
“Retailers need to make back to school shopping more convenient and easier as it is not fun for anybody. It takes some preplanning, but the reality is – school is already here this year and now is the time for retailers to start thinking about back to school 2024. Some of these things may not be something you implement today, but next year,” says Doucette.
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.
