OPA! of Greece continues to expand across the country with an emphasis going forward on streetfront locations.
Recently, the brand opened its 13th location in Edmonton and another one in Canmore, Alberta.
Sergio Terrazas
“We’re not opening any more food court or mall locations. Our growth is streetfront locations,” said Sergio Terrazas, Director, Franchise Development & Leasing.
OPA was founded in Calgary in 1998 and is Canada’s largest and fastest-growing Greek food franchise with 109 locations nationwide from British Columbia to Ontario and counting. There’s also one in the U.S.
“About 60 to 65 per cent of all of our stores are streetfront locations. Our natural growth will be streetfront locations in strip malls. The customers’ shopping habits in malls have changed after COVID and we have seen a lot of double-digit sales increases in our streetfront locations. Lots of takeout and delivery from the customers,” said Terrazas.
OPA! Edmonton (Image: OPA! of Greece)OPA! Edmonton (Image: OPA! of Greece)
“I’m not saying that we’re not doing great in food court locations. However, that’s our main growth in the streetfront locations.
“We have opened so far this year five stores between Lower Mainland, BC, Vancouver Island, Canmore, Edmonton and Winnipeg. For the remainder of 2023, perhaps another six to eight locations and those would be again Vancouver Island, the Lower Mainland, Edmonton, Sherwood Park in Alberta and one in Saskatchewan and we’re opening one in London, Ontario as well.”
He said for 2023 the company will open 11 to 13 locations depending on construction and municipal approvals.
“We already have a lineup secured for next year eight to 10 other locations plus whatever else we can accomplish for next year,” said Terrazas. “Our goal from 2024 and on is between 15 to 20 locations.
“Where do we want to be? We want to continue being the largest Greek restaurant chain in North America which we are right now. Our goal and where we see opportunity is to have over 200 locations within the next five to six years in Canada plus our big expected growth in the U.S. market as well.
OPA! Edmonton (Image: OPA! of Greece)
OPA! Edmonton (Image: OPA! of Greece)
OPA! Edmonton (Image: OPA! of Greece)
“Right now, we have big growth coming and continuing to come in the BC area. There’s lots of growth and lots of stores to be opened there. We are filling up some pockets in Alberta, Saskatchewan and Manitoba but our main focus right now and big push is in the Ontario market. The Ontario market itself can give us another 80 to 100 locations itself. Streetfront locations. That’s our big push for a little while – the next five or six years. However, it doesn’t mean we’re not going to be exploring and pushing our U.S. market. We have already done a lot of work with legal documents in the U.S. market.
“So hopefully within this year or next year that’s going to be another big push – in the U.S. market. The growth is going to be different. Here we’re looking for single-unit operators that could become multi-unit operators. In the U.S., the approach is different. The U.S. is through groups that already own one or two or more concepts that have the experience, that have financial capability and the experience to grow with us with multi-unit stores.”
The typical size of streetfront stores is anywhere from 1,000 to 1,400 square feet. However, in high density areas such as downtown Vancouver or downtown Toronto, OPA can lower the size to 900 square feet with less seating capacity that allows more foot traffic, takeout and delivery.
“OPA is a great concept. It’s very, very unique with healthy options,” said Terrazas.
Pickering City Centre
Renderings (Credit: CentreCourt Developments)
Pickering City Centre, a new mixed-use community by CentreCourt Developments, located directly off Highway 401 at the epicentre of Pickering’s emerging downtown core, will become a new thriving urban centre featuring more than 6,000 condo residences across more than 10 mixed-use towers and a revitalized Pickering Town Centre Mall.
The 55-acre acre development will also have a unique collaboration with Cleveland Clinic Canada to bring world-class virtual healthcare to future residents.
“Pickering City Centre is an unparalleled opportunity to transform a cherished community hub into a modern downtown destination,” said Gavin Cheung, Managing Partner, President, CentreCourt.
“As one of the fastest growing submarkets in the Greater Toronto Area, Pickering is on the cusp of an exciting moment. We are proud to be a part of this natural evolution, and to ensure Pickering City Centre becomes a true, complete community that showcases some of the finest residential, retail, commercial and public spaces in the GTA for residents and visitors to enjoy.”
Pickering City Centre
Renderings (Credit: CentreCourt Developments)Media Event at Pickering Town Centre (Image: Dustin Fuhs)Media Event at Pickering Town Centre (Image: Dustin Fuhs)
CentreCourt acquired the property earlier this year from a pension plan. On site is a 700,000-square-foot enclosed, two-level shopping centre as well as 13,000 square feet of office space in a separate building both serviced by a direct bridge connecting to the downtown Pickering GO Station.
“It’s a large community focal point for the City of Pickering. It’s an enormous site,” said Cheung.
“In terms of drawing up the base assets where you would want residential density, having those existing assets in the mix was very compelling.
“A lot of what made it appealing (to acquire) is the city itself had the vision for this site and we knew there was something special that the city from day one would be bought into. Pickering is an amazing community. It has all the sort of amenities that you would want, high density around. It’s got employment growth that would support a lot of densification.
“But what it’s lacked, and this would be something that local politicians will tell you, it’s lacked a true downtown. So what drew us to this – the ambitious vision for this master-planned project – is to create that new downtown, is to create a downtown that complements the incredible growth and evolution of the City of Pickering, what they have in store and what they have planned.”
Pickering City Centre
Renderings (Credit: CentreCourt Developments)Media Event at Pickering Town Centre (Image: Dustin Fuhs)Donald Schmitt at the Media Event (Image: Dustin Fuhs)
New at-grade retail will complement existing uses and connect the community via tree-lined streets, enhanced sidewalks, and active pedestrian walkways.
Globally acclaimed architecture firm Diamond Schmitt designed Pickering City Centre to include an intricate network of large open green spaces and urban plazas, helping build its identity as a place that brings people together.
Donald Schmitt
“The connected series of wide streets, parks, midblock landscaped courts, and urban piazzas are designed to connect people and activate a sense of community,” said Donald Schmitt, CM Principal, Diamond Schmitt Architects. “With the tallest high-rise building at 55 storeys, it was important to design a grade related network of amenities that support walkability and community connection. The cornerstone elements of the development include urban squares, which integrate the new community with a transformed retail precinct connected to public transit and other lush public green spaces. These spaces will be places for community gatherings, markets, festivals, and performances where residents and visitors come together for special moments including sporting events and social gatherings.”
Pickering City Centre will offer an unprecedented collection of world-class amenities for future residents, including a 20,000-square-foot, state-of-the-art fitness centre that will feature yoga rooms, spin rooms, saunas, and high-end fitness equipment. Other amenities in the towers will include a rooftop pool, outdoor lounge areas and grilling stations, co-working and social areas, and a golf simulator lounge. Residents of Pickering City Centre will also enjoy the lush interior courtyards that connect to the network of green spaces, accessed at the doorstep of many of the at-grade amenities.
Pickering City Centre
Renderings (Credit: CentreCourt Developments)Mike Kessel at Media Event (Image: Dustin Fuhs)
CentreCourt is also unveiling plans for a “Virtual Clinic” provided by the world-renowned Cleveland Clinic. This marks the first amenity of its kind in Canada to be offered in a condominium master-planned community, allowing all residents at Pickering City Centre to connect with a Cleveland Clinic Canada clinician and receive a diagnosis or referral without needing to leave their building.
Mike Kessel
“We are excited to bring high-quality and convenient healthcare directly to residents and support the innovative lifestyle that the Pickering City Centre offers,” said Michael Kessel, President and CEO, Cleveland Clinic Canada.
Cheung said Pickering has had an incredible growth profile in recent years for both population and employment. The City has also been growing the infrastructure for that at the doorstep of the master-planned community at Pickering City Centre.
“As the Mayor of Pickering, I’m thrilled to help launch this transformative project that will be a major step forward towards reimagining and revitalizing our downtown,” said Pickering Mayor Kevin Ashe. “This signature development, located in the heart of our City Centre, will bring the density where it should be. We envision a dynamic, walkable, sustainable, and connected destination that will become a bustling downtown node, welcoming visitors, commuters, and residents alike. We believe that a community cannot be complete without a thriving downtown, and this project will be the key to fulfilling that vision. With our iconic pedestrian bridge seamlessly linking our downtown to the GO station, we aim to attract more visitors and workers to come to Pickering and experience the vibrant energy of our City Centre.”
Kevin Ashe
Cheung said that when you look at a lot of the options in the marketplace where you can build on a shopping centre site, they’re often not nearly as integrated, not nearly as connected, do not have the city support, do not have the civic infrastructure existing and planned, do not have the transit access, do not have the population and employment growth, that Pickering offers.
“The mall itself is critical to the vision of the master plan. It’s been the long-standing heart and soul of Pickering. We’re looking to improve it, to add new tenants, create a modern, urban destination within Durham Region and beyond,” he said.
Cheung said the plan is to open the door to the public for sales of the residential condos in the Fall.
“It is a new form of housing for the region of Pickering in terms of having high density communities. The vision of both CentreCourt and the City of Pickering is to create this new community that delivers a new mode of housing in service of creating that downtown,” he said.
Pickering City Centre
Renderings (Credit: CentreCourt Developments)
“If you look at the Durham Region generally and Pickering specifically it’s an extremely low density area and for an area that has the population growth it’s obviously a topic when it comes to affordability. By bringing new homes online, we’re offering a mode of housing that is significantly more affordable than the low rise options that are currently dominating the discussion.
“There’s an affordability crisis in Ontario and across Canada generally. But we believe it will be most acute in these areas that are growth nodes, that are experiencing the growth profile of the population of Pickering. It’s forecasted to grow over 50 per cent in the next 15 years. That type of growth requires high density housing as part of the solution. And we believe the time is right, the appetite from city leaders is there, the vision is there to support the growth, the right type of assets in the right place with the right civic infrastructure around it and transit accessibility. For all those reasons it felt just like the perfect opportunity at the right time for us and the right time for the province and the city.”
In recent years, the Canary District in downtown Toronto has experienced a tremendous amount of development, transforming the neighbourhood into a commercial and residential hub.
And Dream Unlimited Corp. has played a significant role in the evolution with its completed Canary District mixed-use development and its current Canary Landing project which is under development.
Corrine Dorazio
Corrine Dorazio, Vice President, Leasing with the Dream Office Real Estate Investment Trust, said the master-planned, inclusive, mixed-use neighbourhood is revitalizing Toronto’s Downtown East.
Canary District Retailer (Image: Dustin Fuhs)Distillery District / Canary District (Image: Dream)
“Our focus was always on health and wellness and partnering with tenancies that are a mix of local entrepreneurial types of retailers with a couple of national retailers as well,” said Dorazio. “Health and wellness is a focus that we’re carrying through to Canary Landing as well as we have more retail to lease there.
“We really are rounding out the offering and the programming with respect to what our residents will be able to experience when they’re living there. We’re trying to create a city within a city. That really is our goal here as we build out Canary District and Canary Landing.
“Dream, in partnership with Kilmer Group, realized the potential to create a new 35-acre master planned community, neighbouring the 18-acre Corktown Common Park and Distillery District, that could bring new energy and vitality to an underdeveloped area in Toronto’s downtown east end. The location of the site – close to green spaces, parks, desirable heritage areas and natural features like the waterfront and Don River trails, make it an exciting opportunity for both residential and retail spaces.
“Across the Canary District as a whole, there is 52,475 square feet of retail, of which 91 per cent has been leased. As a company, we are excited to be leading the way in adding housing and retail options to a previously underdeveloped part of the city.”
The Canary District Condos (Image: Dustin Fuhs)
The Canary District includes:
82,000-square-foot YMCA (providing Health & Fitness, Camps, and Immigrant Services programs)
18-acre Corktown Commons Park (City of Toronto lands)
Residential demographics:
George Brown College Residences: 500 student residences
Wigwamen Housing: 145 residences
Canary Park Condos: 437 residences
Canary Block Condos: 187 residences
Canary House Condos: 369 residences
Canary Commons Condos: 400 residences
Total retail: 52,475 square feet (retail is 91 per cent leased)
“We’re creating a complete community in a highly accessible location, for residents who live in the Canary District. Our focus has been to activate the neighbourhood with a wide array of amenities including the 82,000-square- foot Cooper Koo Family YMCA, numerous fitness, food and beverage offerings, as well as personal and pet services retailers,” said Dorazio.
“We believe a wide spectrum of retailer programming provides a positive and inclusive experience for all residents to live, work and play.”
Canary Landing from The Distillery District (Image: Dustin Fuhs)
Canary Landing, a partnership between Dream, Kilmer Group and Tricon Residential Inc., includes:
Maple House:
3 buildings, 770 residences
Targeting August 2023 occupancy
Total retail: 3,950 square feet (retail is 90 per cent leased)
Birch House:
1 building, 200 residences
Targeting Q4 2024 Occupancy
Total retail: approximately 27,938 square feet
Cherry House:
3 buildings, 856 residences
Targeting Q3 2025 occupancy
Total retail: approximately 30,910 square feet
Canary District (Image: Dustin Fuhs)Canary District (Image: Dustin Fuhs)
Birch House is the development in Canary Landing where Dream has partnered with Kilmer Group and Anishnawbe Health Toronto. The Indigenous Health Centre by Anishnawbe Health Toronto, will be located within the Birch House block (at the south east corner of Front and Cherry) which will deliver a model of health care based on Indigenous culture and traditions and will care for Indigenous clients with both western and traditional approaches to health care.
Canary District (Image: Dustin Fuhs)
Here’s the retail footprint Dream has assembled in the neighbourhood:
Canary District (existing retail in the residential buildings already completed):
– Croissanterie/French bakery offering (located in the Maple House rental development – residential occupancy is August 1, 2023, retail deal is approximately 3,500 square feet, TBA, opening June 2024)
Canary Landing (Image: Dustin Fuhs)
Canary Landing is located in Toronto’s award-winning Canary District community, a pedestrian scale urban village adjacent to the Distillery District in the Downtown East.
“What we’re trying to create is this really meaningful place to be able to live and visit,” said Dorazio.
“We’re looking to continue to support and complement the development that’s taking place at Canary Landing with retailers whether it’s health and wellness, medical clinic offerings, that help to holistically create an experience for everyone that’s living there or anyone that’s coming to visit.”
She said the type of retail offering is always critical in its pursuit to build a city within a city and create a highly sought after amenity experience for residents of the community.
“We’re committed to ensuring residents’ needs are supported with a retail mix that serves all lifestyles and individuals and families at all stages of life. With Canary District, there is a specific focus on health and wellness — along with pet offerings (including a vet clinic and pet store), a bank, a local coffee shop, and brewery,” said Dorazio.
“The retail experience is what helps drive the value of the residential offering. It’s a key part of the package and vision of what we’re offering prospective tenants and the neighbourhood.
“Our strategy to curating the retail mix in Canary District starts with a holistic approach, grounded in health and wellness. To that end, we seek to partner with local entrepreneurs who offer something unique and special for the Canary community. Tenants like Rock On Climbing, Elite Care and Fuel+ , to name a few, exemplify the type of retail offering we are focused on at Canary.”
Indigenous Hub and Canary House are expected to look when complete, image from submission to City of Toronto (Via UrbanToronto.com)Canary District (Image: Dustin Fuhs)
She said the Indigenous Hub is a 2.4-acre purpose-built site that will include a health care centre, an Indigenous training, education and employment centre along with a condominium (Canary House) and rental residence within Canary Landing. It’s currently under construction and slated for Q4 2024 completion.
“We have approximately 28,000 square feet left to lease at the IndigenousHub, including a beautifully revitalized heritage house located on the south-east corner of Front and Cherry, which could include a restaurant,” added Dorazio
“For the rest of Canary House, we’re seeking to secure retailers that complement this offering, in keeping with the overall focus on health and wellness for the Canary community.
“At Maple House, our development in partnership with Kilmer Group and Tricon Residential, we have very recently secured a French bakery offering in approximately 3,500 sf (which makes up the majority of the retail space available at Maple House), slated for a June 2024 opening (with Maple House occupancy beginning at the end of July 2024).”
She said Dream intends to continue its pursuit for local, unique fine-grain retailers in the food & beverage and health care sectors.
Future Body Fit Training at the Canary District (Image: Dustin Fuhs)Dark Horse at the Canary District (Image: Dustin Fuhs)Future Marché Leo’s at 475 Front Street East in the Canary District (Image: Dustin Fuhs)
“We’d love to secure a health clinic or pharmaceutical offering to support the Canary District community at large, along with more fitness, food and beverage retailers,” she said.
Will Marché Leo’s be the only grocery store in the immediate area?
“This is still to be determined at this time,” she added.
When it comes to retail loyalty programs – is Canada falling behind? Lia Grimberg, a loyalty expert in Canada and Principle and Consultant at Radicle Loyalty says yes, and discusses the current state of loyalty along with its future.
Lia Grimberg
Programs are everywhere and more brands are getting on board with having their own reward programs – however, the traditional “spend a dollar, earn a point” is causing programs to be the same and consumers are not seeing innovation.
“I would say right now, the biggest problem with loyalty programs is the sea of sameness. There was a study done that was just published that talks about the fact that a whopping 91 percent of consumers think that loyalty programs are all the same – and unfortunately, I could not disagree,” says Grimberg.
Ardene Rewards (Image: Dustin Fuhs)
This is a downfall as each reward program that uses a point base metric will end up blending in with other retail brands, and make it hard to stand out.
“This is the format of you spend a dollar, you earn a point and redeem that point for something in the store and repeat and so because consumers are not seeing innovation. Are we actually gaining any loyalty in our programs or are we just giving away points? And if everyone is the same, then it does not really matter what consumers are spending.”
The Shift in Loyalty Programs
Particularly after the pandemic, and with the recession and high inflations, consumers are now looking for programs that provide good value. Because of this, retail brands should start looking at their own loyalty systems and start asking themselves how they can add more value and how they can stand out from others in the market.
“During Covid, consumers started seeing a lot more of which companies were there for them. They are willing to use their wallets to support those organizations, along with brands that are aligned to the same values. Some retailers are starting to recognize the change and MasterCard is saying that 88.5 percent of loyalty members are looking for loyalty programs to help them through this period.”
Rexall x Hallmark (Image: Dustin Fuhs)
Grimberg is also seeing an increase in innovative partnerships. One example is the change in Aeroplan, as they have recently added Bell as a partner to provide free messaging. Also mentioned was the recent announcement from Air Miles, adding Dollarama as of August.
These two changes were not contemplated in the old economy and previously, dollar stores were not part of loyalty programs. Dollar stores and discount stores were not previously part of any loyalty programs, as they relied on price as a differentiating factor.
Along with these new partnerships, Grimberg says she is also seeing a shift of long-term partnerships, to a rise of temporary partnerships. This allows banks or other third party providers to put together a temporary partnership, where retailers can join and provide offers to consumers who link their credit card information. With temporary partnerships, brands are able to “attract new customers by providing these kinds of offers.”
Keeping Consumers Happy With AI
“I am seeing a lot more AI in international markets. To be honest, Canada is still lagging behind in both when it comes to loyalty. It is a huge enabler on the playing field in terms of our ability to access data and put it to better use.”
There is so much that can be done with new technologies for loyalty plans, and should be used as loyalty programs are a great support to the overall marketing strategy. By using AI, retailers can create a more personalized experience for consumers. They will be able to retrieve data and put it to better use, and create an experience that is more relevant to our consumers – “so it is a win win.” Grimberg says companies that do not look at personalization or use its collected data effectively will see a decrease of 33 percent of consumers whom will simply walk away.
“There seems to be a lot of questions around how AI will play a role in loyalty in the future, and it has already started as we are already seeing it but on smaller scales. There is a lot of ground and opportunity for more retailers to explore in terms of how AI can be used to personalize rewards, personalize content, and how it can provide a more immersive experience.”
What is Coming Next?
Sephora Rewards (Image: Dustin Fuhs)
The loyalty expert says she hopes to see more brands use loyalty plans – but in different ways, such as rewarding services instead of money.
“What I would like to be able to see is more platforms that allow many smaller players to work together to create a network effect that will provide more meaningful value to consumers. So could your dry cleaner work with your local flower shop? Depending on the frequency of the consumer, the customer will be able to earn a reward that is meaningful.”
Bottom line, Grimberg says each loyalty program shouldn’t be the same and should start looking at other unique ways they can support, give value, and provide a rewarding experience to consumers.
“There is a tendency for retailers to look at their competitors for inspiration, and that is when you get into trouble due to lack of differentiation – so I would say stop looking at your competitors. Figure out what your consumer needs, how you can uniquely support them, and look at what you can bring to the table that will be different.”
In the age of accelerated technology adoption, innovation and infinite possibilities, it is crucial that retailers are aligning consumer priorities with new value-based systems.
To help retailers gauge consumer priorities, Mastercard developed The New Retail Relevancy report, looking at how businesses can navigate the exciting future of retail.
Balinder Ahluwalia
Balinder Ahluwalia, Senior Vice President, Market Development and Digital Partnerships at Mastercard in Canada, said the trend recently among consumers is ‘smart spending’.
“This is a clear thing we’ve identified. The COVID impacts are real. Folks didn’t shop, they saved a bunch, had an opportunity to shop, drove up inflation and a bunch of other things that they were shopping, prices went up. It was a tough thing,” he said.
“The other thing we saw during that time, let’s call it the great reset would be one component which is COVID then the great rewire which we’ve sort of called bringing in new technologies, using the chips on our phone, the tapping when you get to the store, the acceleration of one-touch checkout on Amazon. Those two things taken together are really impacting the way consumers are looking at their spending.
“We found that over the last four years, e-commerce growth, the idea of folks buying stuff online has gone from about 10 per cent to about 18 per cent. That’s a big shift. Folks are buying more stuff, getting more comfortable with the new technologies, more comfortable with what they have to do.”
As a result of all of this, Ahluwalia said 70 per cent of consumers surveyed said they’re changing their patterns of buying due to inflation.
“As prices are driving things up, they have an opportunity here to save a little bit of money. If I understand the algorithms right with Amazon or understand the algorithms with some of the other things, maybe if I buy it at a different time of the day, or if I buy off cycle, or if I start to pay attention to when the stuff goes on sale, I can save a few bucks, which has been a really interesting nuance I would then offset against what we’re calling consumers focusing most on what they want they want to spend money on, discretionary spend – the travel, the restaurants, the apparel.”
The key points from the Mastercard report include:
Smart spending is consumers’ dominant mindset in the current climate. The turbulence of recent years, alongside rapid technological progress, have set the stage for major changes to the retail industry. Seven out of 10 consumers say that high inflation has changed the way they shop and they are most likely to categorize their current spending mindset as “smart.” Rather than cutting back across the board, consumers are dialing into what matters most to them, with many splurging on luxuries while cutting back on basics. This is reflected in retail sales, with growth in joy-driven categories like experiences and jewelry;
Virtual retail levels up style and functionality. Today, “ambient” technologies — like voice commerce and augmented reality — focus on making the retail experience more seamless. Looking ahead, consumers are eager to explore more immersive virtual retail, which provides new opportunities for self-expression, sensory experiences and crossover with the physical world. The adoption of digital currencies will also gamify and accelerate spending in virtual environments;
Retailers must deliver more joyful and convenient experiences. More joyful shopping means an experience that offers more than shopping alone. Immersive exposure to innovation is on consumers’ wish lists as 83 per cent would like to view and test the latest products when they shop. Another 57 per cent of consumers also express interest in accessing immersive virtual experiences while shopping in store that can augment the meaning of the shopping experience. Convenience in the retail experience is the other key lever to dialing up joy. That’s why 59 per cent of shoppers are interested in “on-demand” retail — whereby online orders are delivered at lightning speed;
Regenerative retail is critical to shaping the future. As more consumers seek to leave their communities and the environment better off, support for “regenerative retail” is spreading fast. As part of this transition, consumers are seeking transparent reporting from retailers about their progress toward their social and green commitments. More than half (53 per cent) say they prioritize brands that reveal their carbon footprints. Consumers are also weighing the deeper purpose of their own shopping choices as 82 per cent prefer to support small or local businesses, whenever possible.
The Mastercard report identified five opportunities to drive innovation in retail:
Encourage meta-commerce by creating retail experiences and rewards ecosystems that span virtual and physical worlds and embrace the crossover between them;
Provide alternative-payment solutions that meet consumers in the way they want to pay, such as cryptocurrency, biometrics and buy now, pay later;
Facilitate different shopping mindsets by designing retail environments that can meet multiple needs such as optimizing for joy and convenience with delightful experiences that provides seamless engagement;
Leverage personalization to maximize convenience with technology that enables seamless, digital-first shopping;
Empower consumers with data to support socially and environmentally-conscious shopping.
Other key highlights from the report include:
Spending prevails as retail exceeds pre-pandemic levels: According to Mastercard’s SpendingPulse in Canada, spending on apparel is running at a +11.9 per cent year-over-year pace (Q1 2023 vs. Q1 2022) and spending on restaurants is running at a +24.3 per centYOY pace (Q1 2023 vs. Q1 2022);
Consumers are focusing on intentional spend in the current climate: The current spending mentality amongst most Canadians is a ‘Smart Spender’ with seven in 10 Canadians saying inflation has changed they way they shop;
Retail transitions from omni-channel to metaverse: With six in 10 Canadian consumers having already or are interested in shopping virtually for real-world items, retailers are continually looking for new ways to offer in-store services to their digital customers by expanding sales across a wider range of platforms, including the metaverse. Additionally, 62 per cent of Canadian Gen Z are looking forward to brands offering personalized experiences in the metaverse;
Offloading convenience with on-demand: With the on-demand economy estimated to be worth $335 billion by 2025, a blend of retail elevation with rising innovation will be required to streamline the overall in-store experience;
Carbon conscious shoppers: Regenerative retail is becoming non-negotiable as 54 per cent of Canadian consumers prioritize brands that inform their carbon footprint while making purchases.
Ahluwalia said the Mastercard Economics Institute pays close attention to some key economic factors that influence consumer behaviour. One is unemployment and the rate of unemployment. The other thing is the housing market.
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
Londonderry Shopping Centre (Image: Cushman & Wakefield)
The Londonderry Shopping Centre in Edmonton is adding new retailers and amenities to serve the local community. And the mall’s Hudson’s Bay store, which was supposed to shut in August of this year, will now be staying open in a smaller footprint.
Landlord Cushman & Wakefield says that sales numbers at Londonderry have surpassed those of 2019 before the pandemic, both for the mall’s food court as well as for the centre as a whole. Recently, a 38,000 square foot No Frills grocery store opened at Londonderry, replacing a Save-on-Foods that shut several months ago. The new grocery store is said to already be very busy.
Other new tenants at Londonderry include Service Canada, which next year will be opening a 10,000 square foot facility at Londonderry including a passport office. It will serve the local community and be a “win” for the mall according to landlord Cushman and Wakefield. The goal of adding the new passport office is to continue diversifying Londonderry’s retail offerings by adding more service based providers to drive regular traffic.
Click image for interactive Google Map No Frills at Londonderry Shopping Centre (Image: Londonderry)Shoppers Drug Mart at Londonderry Shopping Centre (Image: Londonderry)
The mall’s Shoppers Drug Mart store recently expanded its offerings to include a new BeautyBOUTIQUE component, offering a range of cosmetics and fragrance brands at Londonderry. The Shoppers Drug Mart store at Londonderry spans about 17,000 square feet on the main floor in a space adjacent to No Frills.
And the biggest announcement as of late is the retention of the Hudson’s Bay department store at Londonderry, albeit in a smaller footprint than what has operated for decades in the mall. Hudson’s Bay is downsizing its store from about 118,000 square feet over two floors to about 60,000 square feet on one level, which will feature outlet pricing. The store downsizing will be completed by the beginning of September according to the landlord.
The Hudson’s Bay store will occupy the first level of the shopping centre, creating an opportunity upstairs for the landlord to re-set the mall’s tenant mix with multiple leasing opportunities. New tenants could include retail and services depending on what’s conceptualized and signed.
In 2014, it was announced that Londonderry would see an investment of more than $130 million to overhaul the centre, including major interior alterations and exterior elements. With that, many new retailers were added to Londonderry including anchor La Maison Simons. In 2017, the mall’s overhaul was revealed to the public with Simons opening its beautiful two-level store in August of that year.
New tenants have continued to be added, including in the fall of 2019 when H&M opened a large store in the mall near Simons. Londonderry is also home to a substantial number of independent retailers operated by local entrepreneurs.
Hudson’s Bay at Londonderry, Image: Londonderry Main floor of Londonderry. Click image for interactive mall map, featuring both levels.
Londonderry opened in 1972. At the time, it was the largest mall in Canada west of Toronto, as well as the only two-level mall in Western Canada. Today, the 780,000 square foot centre features about 150 retailers with anchors including Hudson’s Bay, La Maison Simons, No Frills, Winners, Shoppers Drug Mart, Dollarama, Fabricland, and Fit 4 Less.
When Londonderry originally opened, its three department store anchors included Hudson’s Bay, Eaton’s, and Woolco. The No Frills store now occupies part of the former Eaton’s space on the main floor with Fit 4 Less, while Fabricland, Dollarama and the food court are located on the second level of the former Eaton’s. Simons is located in the part of the mall that had been Woolco — Army and Navy occupied the space after that and it shut in 2016.
LensCrafters at 33 Bloor Street East (Image: Dustin Fuhs)
LensCrafters, one of the largest optical retail brands in North America, has opened its new and first flagship store in Canada in Toronto at 33 Bloor Street East in the Bloor-Yorkville shopping district.
The company said the opening will further position LensCrafters as a modern optical retail leader of exclusive brands and reinforce the company as a trusted eyecare and eyewear authority in the region.
Alfonso Cerullo
“As LensCrafters continues to expand in the US and Canada, we look forward to advancing the brand this year with the rollout of our new flagship store in Toronto,” said Alfonso Cerullo, President & GM of LensCrafters, North America.
“Appealing to the well-known local shopping hub on Bloor Street, the store will reflect the effortless integration of design and technology, giving customers a more individualized experience that allows them to easily browse the vast luxury assortment of both optical and sun frames. At the end of the day, we want to be a top destination in the community when it comes to finding the best vision care solutions that resonate with our customers and help people express themselves while seeing well at the same time.
“We are very happy about it. It is really beautiful. The team is very excited. We have the doors open. The customers are coming and we have been accepted in the community.”
LensCrafters Bloor Street (Image: LensCrafters)
LensCrafters was founded in 1983 and currently operates over 1,000 stores in the U.S., Canada, and Puerto Rico. It has about 90 stores in Canada.
The newest flagship store is close to Toronto’s high-end fashion destination on Bloor Street and is part of LensCrafters’ continued North America expansion plans. The company opened its first two flagship stores in New York City in 2020 and two more in San Francisco in 2021 and Palo Alto last year.
“Toronto is one of our major markets and Bloor Street was a location and area we were trying to target for awhile because of course it’s a high premium retail area and for LensCrafters this is part of the target market that we want to try to get a position,” said Cerullo.
“LensCrafters in terms of vision, in terms of strategy, we want to be the high quality optical retailer and the experts of the community.”
LensCrafters Bloor Street (Image: LensCrafters)
The company said the new elevated flagship will encompass the latest advanced digital technology and state-of-the-art design blending eye-catching finishes to create a dynamic customer journey. From quality eye exams to shopping for the perfect frame, the new location will showcase an expanded selection of designer eyewear styles and brands that include Burberry, Dolce & Gabbana, Persol, Versace, and Prada.
“The flagship will leverage a wide range of tools to afford customers more opportunities to meet their needs for a premium in store experience. Customers will be able to digitally explore the wide variety of EssilorLuxottica collections and brands, customize Ray-Ban and Oakley frames, and virtually try-on any frame thanks to the Virtual Mirror technology through LensCrafters’ Smart Shopper interactive in store tool,” said the company.
“The collection of luxury optical and sun styles along with superior lens design and technology by Essilor, will give the brand a larger footprint in the eyewear market. The new flagship will be equipped with high-resolution digital screens and LED-walls displaying eyewear and campaigns to allow customers an immersive experience around the brand’s offering. An added focus will be given to the storytelling of prescription lenses through interactive applications installed both on iPads and touch screens, leveraging the see-through technology to simulate lens features and effects for better vision.
When asked if he sees more flagship stores in Canada, Cerullo replied: “For now, I think we may have another couple of opportunities overall in Canada. They are not short term. I think it’s more on the medium term. Consider them for this type of premium, high-end real estate areas, from when you start looking for locations that you like and when the store is built and you open, you can probably spend a couple of years overall,” he said.
The eyewear and eyecare industry in Canada has become a very competitive one in recent years with global brands setting up shop in the country.
“I believe that you cannot be successful by definition on everything. You should define your target, your piece of the cake where you really want to make an impact,” said Cerullo, adding LensCrafters wants to position its banner as the leader in the medium to higher class space.
“For this type of demographic, for this type of consumer, we want to really make sure that we are going to be the leader . . . We want to be the high quality optical retailer and trusted expert of the community that we serve. So in that community we want to make sure in all the things we’re doing that there’s no doubt for everything about the sight where you want to go for an eye exam.”
LensCrafters Bloor Street (Image: LensCrafters)LensCrafters at 33 Bloor Street East (Image: Dustin Fuhs)
Cerullo said the retailer has presence in both shopping centres and streetfronts with most of its stores in malls.
However, in the future, he said a big part of the company’s investment is in relocation and remodelling of existing stores. He said the strategy is to also make a small shift to more stores in the future being streetfront or outside malls.
The will be taking place this year on September 27-28 in downtown Toronto. Over 60 speakers have already been confirmed, 75% of which are new, and over 40 are C-Suite/VP level executives.
Register now and get 25% off the current price with code RETINSIDER[]
The eTail conference has been designed to help businesses increase profits with action-packed strategies and connections made with the top mind’s at Canada’s most successful retailers. As with previous years, the conference will be held at the located at 370 King Street West in the city’s downtown core.
The impressive speaker list at eTail 2023 includes some very prominent names. Key learnings on what’s happening in the industry from these speakers will benefit those looking to the digital future following the pandemic. You’ll learn actionable strategies to perfect omnichannel, revolutionize customer service, harness the power of social commerce, drive personalization, and embrace sustainable business practices.
Keynote: Bringing Your Brand Promise And Customer Experience Into Alignment. Discussion point will include:
Communicating a brand promise and what it stands for,
How to gain a deep understanding of customers’ needs, preferences, and expectations,
How to develop a uniform customer experience journey for in-store and online operations,
Training to empower employees to deliver the desired customer experience and brand promise, and
Monitoring and measuring the effectiveness of customer experience strategy.
Scott Adel, AVP, Digital & Store Experience, Canadian Tire
Panel Discussion: Strategies And Technologies Helping Retailers Create A Seamless And Personalized Omnichannel Customer Experience. Discussion points will include:
Using tech solutions for in-store and online channels for a cohesive experience,
Leveraging data analytics to inform omnichannel marketing and sales efforts,
Developing an effective supply chain management system to ensure efficient fulfillment across channels, and
Training employees to effectively deliver on the omnichannel promise and provide exceptional customer service
Daniela Yanez, Director, Digital Ops & Strategy, The Source
Panel Discussion: Generative A.I. And Machine Learning As An Enabler For Retail Growth.
The panel will discuss AI and machine learning as tools that have helped to revolutionize the customer experience, tackling all of your AI questions so that your online experience is effective and efficient. That includes the topics of:
How AI is alleviating manual processes your team used to perform,
From creating content to campaign execution—the digital marketing uses of AI,
From Bots to Buy—using AI to help shape onsite experiences, and
Challenges identified in AI implementation – what obstacles are the hardest overcome.
Andrew Go, Chief Digital & Data Officer, Staples Canada
Fireside Chat: Hacking Customer Loyalty: Proven Strategies And Techniques For Strengthening Customer Relationship And Loyalty
The discussion will be on how to create a loyal customer base that can enhance your revenue, reduce business expenses, and generate more referrals compared to companies lacking devoted followers. Included in the discussion:
Building a strong brand identity that connects with your customers,
Creating a sense of community around your brand,
Use data to personalize the shopping experience for customers, and
Use rewards and incentive programs to help build loyalty
Retail Insider’s Craig Patterson is also speaking at this year’s eTail Canada.
Download the to see the complete and inspiring sessions at this year’s eTail Canada Conference.
eTail Canada is a conference not to be missed. Register now and get 25% off the current price with code RETINSIDER
The outcome of the Metro labour dispute will undoubtedly exert a profound influence not only on the Metro grocery chain but also on other grocers throughout the country.
The labour dispute currently unfolding at Metro’s 27 grocery stores in the Toronto area has emerged as a pivotal focal point in the ongoing struggle for worker rights and equitable treatment within the food retail industry. With an impressive workforce of 3,700 dedicated employees engaged in strike action, this conflict has already garnered considerable attention from scholars, policymakers, and the public alike. Beyond its immediate ramifications, the resolution of this dispute possesses the potential to reverberate across the entire Canadian grocery sector, thereby establishing a precedent for the broader frontline food industry.
At the crux of the matter lies the collective aspiration of the workforce to negotiate improved working conditions, just wages, and enhanced benefits. However, such a plea is far from simplistic within the confines of a low-margin business environment. The issues raised by the union reflect systemic challenges afflicting numerous frontline workers operating within the sector. Amidst the mounting cost of living and economic uncertainties, employees are earnestly endeavoring to safeguard their rights and livelihoods, and their demand for fair treatment is both rational and justified. Who, indeed, could contest such a noble pursuit?
Adding fuel to the motivation of union workers to strike is the recent disclosure of hefty bonuses bestowed upon grocery executives in recent months. As per company documents disclosed earlier this year, the total compensation for the top five Metro executives for the year concluding in September 2022 amounted to a staggering $13.2 million, signifying a four per cent upsurge from the previous year’s equivalent period. Notably, the bonus component of their compensation witnessed an astonishing 13.7 per cent escalation, reaching a sum of $3.7 million. This disparity equates to a stark $1,000 for each employee currently partaking in the strike. Comparable announcements of corporate bonuses by other grocery retailers have elicited disapproval from both Canadians and grocery employees alike.
It is noteworthy that most employees at Metro have, in the past, received bonuses in the form of gift cards, typically amounting to $300 for full-time workers. While such a gesture may be perceived as commendable, it also raises concerns about the potential self-serving nature of these rewards, considering they emanate from one’s own employer.
An intriguing aspect of this dispute lies in how union workers have, to some extent, undermined their own union leadership. Despite the latter’s acceptance of Metro’s offer, the workers themselves outright rejected it, citing a significant gap between the perception of acceptability by union leaders and the actual desires of the union workers. A similar scenario unfolded at ports in British Columbia, which have also been grappling with labour issues since the end of June, focusing on matters of salaries and concerns about automation potentially displacing human workers. These occurrences signal a broader trend.
Eric La Flèche, President and CEO of METRO, at the Annual General Meeting of Shareholders, January 25, 2022. (CNW Group/METRO INC.)
Undoubtedly, Metro acknowledges the indispensable value of its frontline workers in their indispensable contributions to maintaining the supply chain and guaranteeing consumers’ access to vital goods, particularly during the pandemic when their unwavering dedication and service came to the fore. Nevertheless, these efforts are frequently undervalued in terms of compensation and job security. Despite a substantial proportion of these positions being occupied by young students or individuals seeking supplementary income, the industry is not renowned for providing ideal and desirable working conditions. It may be time to contemplate novel approaches to the management of grocery stores.
Metro’s current business model inherently poses challenges to accommodating higher wages and nurturing career-building positions at the store level without reducing the number of employees. For instance, to implement a 10% increase in salaries without impacting retail prices, the workforce would need to be reduced to below 50 employees, at a minimum. This scenario necessitates the incorporation of automation and artificial intelligence, consequently transforming the nature of numerous jobs within the industry. Worth noting is Metro’s vast presence, with over 325 grocery stores and more than 600 pharmacies across Eastern Canada, making it a prominent player within the sector, despite not being the largest.
The outcome of this labour dispute will undoubtedly exert a profound influence not only on the Metro grocery chain but also on other grocers throughout the country. A triumph for union workers could embolden frontline employees in other sectors to advocate for their rights, thus potentially setting in motion a chain reaction that could reverberate across the entire retail industry.
Regrettably for grocers, the optics of the situation are not in their favor. Frontline grocery workers currently possess considerable political capital, and they are well aware of this fact. Although most Canadians may not be acquainted with Metro’s CEO, they certainly recognize and appreciate the dedicated individuals such as Jim, Carrie, or Tom, who attentively serve them during their visits to the grocery store. These personal connections carry significant weight, particularly in contemporary times.
