Push to Self Checkout Creates Negative Customer Experience in Loblaw Stores [Podcast]

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July 17, 2023

Self-Checkout at Shoppers Drug Mart (Image: Dustin Fuhs)

Craig and Lee discuss the frustrations and negative impacts of the push to self checkouts, specifically focusing on their experiences at Loblaws and Shoppers Drug Mart. They highlight the lack of staff and respect, absence of bags, and the inconvenience faced by customers including vulnerable groups. Craig expresses his disappointment and calls for improved customer service in these stores.

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Retail Insider content discussed this episode:

Transcript

Announcer 0:00
This is a Retail Insider PodCast. You’re listening to “The Weekly”.

Lee Rivett 0:08
Welcome to this week’s episode of “The Weekly” by Retail Insider. I’m Lee Rivett. And I’m joined with the owner and publisher of Retail Insider Media, Craig Patterson, to discuss this week’s most read articles on retail-insider.com. So thanks for joining me, Craig.

Craig Patterson 0:22
Hello, everyone.

Lee Rivett 0:23
Now for this week, Craig wanted to talk about a negative experience that he had at a local Loblaws chain of grocery stores in his area instead of talking about our popular content on our website. Now, not all Canadians who are served by a proper Loblaws branded grocery store, but most have at least touched upon one of their other brands, which would be the Real Canadian Superstore, the No Frills and the Shoppers Drug Mart. And they’ve been around for a while – they started up in 1919 and serve millions of Canadians in urban and rural environments – making them a real significant player in the Canadian retail marketplace. But Craig, where would you like to start?

Craig Patterson 0:58
Yeah, I wanted to talk a bittle bit about some of the experiences that I’ve seen. It is probably no secret anyone that actually shops in these stores that there is a situation where there are more self checkouts and less staff that are actually at the tills to take people. This is causing a little bit of a lack of satisfaction for some individuals, including myself.

Lee Rivett 1:17
So what happened?

Craig Patterson 1:18
I always say when I go into a Shoppers Drug Mart now is getting ready to leave – my measure of success is “How not disappointed am I with my experience?” and that’s really an unfortunate place to be given that I think we’re also being gouged with prices right now.

Lee Rivett 1:33
I don’t have as much experience with Loblaws groceries in downtown Vancouver as you do because our main grocery competitors are either “Urban Fare” from Overwaitea Foods Group, “IGA”, or “Whole Foods”. There’s others of course, but those are the three that are down town here in Vancouver. And when you finish getting your, lets say, weekly groceries and you walk up to the counter to ‘ring’ yourself out so you can go home. Either one of those three I mentioned would have about five or six – tills all manned by human beings – to help you through the checkout process. And if you need a bag, it’s 25 cents for like a paper bag or about $2.50 for a cloth bag. Which is reasonable if I forgot my bag at home, or if I was too lazy to go grab the bag as I was walking out the door. Now when I go to one of the Shoppers Drug Mart locations in downtown Vancouver – which is part of the overall Loblaws Group of Companies were talking about – and I grabbed my shampoo and hair conditioner and go to the counter – there’s nobody there to help me through the checkout process. There’s four or five self checkout counters which have no bags or anybody there (except for our security guard, making sure that I’m not running out without paying for my merchandise) and there’s maybe one counter that’s out there that has space for a human being behind it – but it’s typically empty and not manned. So if you’re kind of left to ‘fend for yourself’ to go through the checkout process, and there is potentially a reusable bag that’s rubberized that’s $5 (which is twice the price is any of the cloth bags that the other chains that I was just talking about) – I’m just going to go get my bar of soap and pay for it and then walk home with it in my hand as opposed to getting a bag from them.

Lee Rivett 3:12
Now on the other hand, I’m just wondering for you with a Loblaws grocery situation with avocados rolling around and milk, you’re going to need a bag. So having to pay $5 for one of these rubberized ones that I’m seeing from Shoppers and overlaying that experience that I’m having from Shoppers over to groceries would be horrible. So is it frustrating for you? Or are you kind of left ‘fending for yourself’ as well? Or is it a different experience from the Loblaws ‘groceries’ versus the Loblaws ‘Shoppers Drug Mart’ I’ve just mentioned?

Craig Patterson 3:42
I find it to be quite frustrating seems like fewer and fewer tills with humans at them – I don’t want to say ‘manning’ them, it could be women or otherwise – are not open. You have a situation where there’s more of these self checkouts. But what blows me away is that there are often are no bags. Which is another friction point, because you have to deal with the human but you’re at a self checkout. It just doesn’t make sense. I mean, I just can’t believe the stupidity that I’m seeing with this retailer and others that are doing it like that it it just shocks me. And I think it’s rather disrespectful to the consumer, to be honest.

Self-Checkout at Shoppers Drug Mart (Image: Dustin Fuhs)

Lee Rivett 4:15
Well, and in the Shoppers Drug Mart, they do have bags for you to purchase, and they’re reusable and rubberized and stuff. But is that the same situation that you would have in Loblaws, too?

Craig Patterson 4:25
Absolutely. And yeah, they do have some bags that are that are way overpriced for what they are. They don’t cost that much to produce. Some people especially in big cities – I can understand someone doing a larger trip if they’re in the suburbs, or they’ve pre planned this – yeah, it gets great you could pack your bags, that’s going to be wonderful. But for myself off my shopping trips, involve me being between meetings, there’ll be somewhere seeing someone, whatever I’m doing, and I’m like, Oh yes, I need something. It’s kind of an urban pedestrian experience.

Lee Rivett 4:51
So since you’re downtown, what you’re saying is that you’re going about your business day, going to the bank or whatever that may be, and then you would pop into the grocery store on the way because it’s convenient, but you’re not going to be taking Loblaws grocery bags with you to do your business, go to the bank, and all that kind of stuff on a normal business day – because you’re not purposely doing it, and you just don’t have bags with you.

Craig Patterson 5:11
I don’t walk around with, with with bags that maybe I should. As a guy, I just don’t even carry any bag around, I threw a credit card and my keys in my pockets, and I go. So this, you know, is an inconvenience. And then on top of this, having to buy these bags, it’s an extra cost for someone. But also for me, the frustration is just having more of these bags, but over 100 of these reusable bags in my apartment that are going to be going into the garbage. At some point, I’m assuming. I used to reuse the plastic bags I was getting, I put them in garbage cans, I would do other things like that.

Lee Rivett 5:41
The paper bags that are being offered by let’s say, “Urban Fare”, “IGA” and “Whole Foods” is more biodegradable. So if you bring them home, it’s not like you’re going to be harming the environment that much. And those cloth ones are probably not that expensive to produce. But those rubberized ones that you get from Shoppers Drug Mart and I’m assuming from Loblaws groceries to is probably more harmful for the environment if you’re using them more of a as a disposeable kind of thing, right? So because that’s going directly into the landfill, if you just throw them out.

Craig Patterson 6:12
We had an article in there – Evan Duggan wrote from Retail Insider – about reusable bags and the amount of energy that’s been taken to produce these and and I think that this is gonna be more of an environmental disaster in the end, if you can call it that, and what we’re seeing with plastic bags. But I digress a little bit in the conversation here.

Self-checkouts at Loblaw Maple Leaf Gardens (Image: Dustin Fuhs)

Lee Rivett 6:28
So coming back to it. So when you go up to the till to pay at a Loblaws grocery or let’s say Shoppers Drug Mart or something? What’s the experience for you when you basically get there and there’s no human behind the counter, the one that’s there or just an army of self serve?

Craig Patterson 6:43
When I go to, say a Shoppers Drug Mart store, I feel highly disrespected for the fact that there’s no people around I mean, other than perhaps a security guards. People look look frazzled, they were trying to work these self checkout machines and and didn’t seem to know how to use them. And I felt bad for the staff. Because you know, I talked to them, and it’s not their fault. It’s the fault of the company, creating a bad user experience, in my opinion. So I go to Rexall. Now, actually, I hate to say that, but sometimes I’ll go specifically, I’m going to be shopping later, for some things. And because Rexall always has people behind the till, I’m gonna give them my money. Yeah, I’m going to do that I’m not going to shop your Shoppers Drug Mart the only the only benefit I see to shopping at Shoppers Drug Mart besides some of the brands that are there that you know, may be loyal to. And by the way, consumers, according to an EY study are not nearly as brand loyal as they were before they’re seeking value, because a lot of people are stretched. But in Rexall, at least you got somebody behind the till. That’s that’s trying and and I think that, you know, I encourage Rexall to continue doing this because people like me are going to go there. Perhaps I’m in the minority. But at the very least, I do feel more respected at that store. Given that situation.

Craig Patterson 7:45
I’m disappointed. I would say this to Loblaw companies face I’ve complained to managers before. I’ve been somewhat vocal about this, but I welcome the company to reach out to me if they’re listening to this, I hope they are. To speak to me about this, I’d love to have someone on the segment, or at least get an explanation of why the customer service situation is gone to crap essentially at Loblaws Stores. Don’t blame the staff, they’re they’re trying their hardest to wonderful people, my local Loblaws. But they’re understaffed. And it’s a really, really unfortunate situation.

Lee Rivett 8:15
And what’s your thought on the prevalence of self checkout, because for me being some rather tech savvy, I can maneuver self checkout to be able to get myself out the door and grumble about it if I need to. But I’m looking at some of the more vulnerable segments of our population, like let’s look at seniors. If they were to go in there, they and they weren’t unable to figure out how to do a self checkout. There isn’t anyone typically around in Shoppers Drug Mart that to help them check out. Like at least they have, like, let’s say the pharmacy to help ring them through if they need to. But if you’re kind of going to the friend where there’s typically the army of self checkout without anybody there, so for the security guard, they’ll be kind of hooped.

SELF CHECKOUTS PRE PLASTIC BAG BAN, SHOPPERS DRUG MART

Craig Patterson 8:59
It’s challenging sometimes to deal with some stuff. Sometimes you’re a bit older, I’m getting there, myself, and the disabled. You know, some people have more challenges than others physically or even mentally. Having to operate these self checkouts isn’t going to be beneficial, useful or desirable for some people probably most. I’m not gonna say it’s discriminatory. But it’s certainly a situation where this is a challenge for some people and forcing people to use these self checkouts, I think is just a way to cheap out on staff. And I know that we have had a bit of a staffing crisis here in Canada, but we also have a lot of people that are still looking for jobs.

Craig Patterson 9:35
But really, I think that Loblaws could do better. And hopefully they will, but they probably won’t, because they don’t have to, they can keep saving money. We’re going to keep shopping there. This is probably the worst time to be offering bad customer service in stores because we already feel like we’re getting gouged. We know that these retailers were screwing us over with these, you know, bread prices and probably other pricing as well. We just don’t know yet. And so really, you know, there needs to be a PR move here. I think there could be almost a revolt at this point, but but we’ll see what happens here in Canada. Interesting time. I know I’ve been very negative here, probably a bit hostile, but it is what it is. I’ve said what I’ve said, and I welcome a conversation around it.

Lee Rivett 10:17
I don’t happen to have a downtown Vancouver Loblaws grocery store. So this was very enlightening for me. So thanks for sharing and chat with you next week. Craig.

Craig Patterson 10:25
Thank you so much for listening to my rant today. Take care and bye for now.

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Canadian Retail News From Around The Web For July 17th, 2023

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Retail Insider

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July 16, 2023

News at a Glance

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 3 days.

The B.C. port strike is over, but economic impact could last weeks (CBC)

Empire realigns its executive team as it looks to become “best retailer in Canada” (Canadian Grocer)

8 Things To Avoid Buying At Canadian Tire, According To An Ex-Employee (Narcity)

CT REIT Declares Distribution for the Period of July 1, 2023 to July 31, 2023 (Newswire)

Tim Hortons selling new products at No Frills, FreshCo, Metro, Food Basics, Sobeys, Walmart and other grocery stores across Canada (York Region)

JD Sports Canada pursues digital transformation (Chain Store Age)

Steak is at stake: beef prices set to rise as cattle producers struggle (Global)

Some Toronto area stores are closing their beer and wine sections. Why? Because they’re not making money (Toronto Star)

QuadReal Aims to ‘Gently’ Urbanize Cloverdale Mall Site (Urban Toronto)

North Central Co-op opens up St. Albert location (Fort Sask Online)

Penticton’s Canadian Tire looks to double store size, expand parking lot (Summerland Review)

Pick N Chews Opens Sweet New Store on Montreal Road (Choose Cornwall)

Savvy shoppers can find savings at Metro Vancouver grocery stores (CityNews)

Walmart Canada CEO Gonzalo Gebara Discusses Retailer’s Plans for Continued Growth and Omni-Channel Expansion [Feature Exclusive Interview]

By

Mario Toneguzzi

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July 16, 2023

Gonzalo Gebara, CEO of Walmart Canada (Image: Mario Toneguzzi)

Gonzalo Gebara, who took over as President and CEO of Walmart Canada in the early part of this year, has ambitious plans to continue to grow the giant retailer’s presence in the country.

“It’s hard to predict the future. With the last four or five years that we’ve had in the world, predicting the future is difficult. But I see a strong growth. We’re in growth mode in Canada,” he told Retail Insider in an exclusive interview while in Calgary recently to officially open the company’s latest state-of-the-art fulfillment centre.

“But we like to say that we’re in omni growth mode. If you ask me if there is room for more stores, I think there are. There is room for more stores in Canada, no question about it. Our value proposition resonates very well across all of the country.

“But also there’s a lot of opportunity to continue to grow our omni capabilities and continue to serve customers in the many different ways they are choosing to shop.”

Walmart Canada Fulfillment Centre in Rocky View County, Alberta (Image: Mario Toneguzzi)

Gebara said a facility like the new one in the Calgary area in the Balzac part of Rocky View County is a clear demonstration of the company’s approach to the market. The $100-million investment in the 430,000-square-foot facility is its first highf-tech fulfillment centre in Western Canada.

“It’s the latest and greatest version of fulfillment capabilities that we have. State of the art,” he said.

Walmart Canada, with more than 100,000 associates, operates a chain of more than 400 stores nationwide serving 1.5 million customers each day. Walmart Canada’s flagship online store, Walmart.ca, is visited by more than 1.5 million customers daily.

Gebara joined Walmart in 2000. During his career, he has held roles across Finance, Strategy, eCommerce, Marketing and Operations, in positions of increasing responsibility. Additionally, he has worked with teams across multiple markets, including the United States, Argentina and Chile, driving critical business outcomes.

Gonzalo Gebara, CEO of Walmart Canada (Image: Mario Toneguzzi)

In his most recent position as CEO for Walmart Chile, he played an integral role in accelerating the company’s transformation, making life easier for customers and giving them access to buy what they need, where, when and how they want to shop. 

Gebara said during his experience with the company, Walmart Canada has always been a really interesting, innovative part of the Walmart ecosystem.

“When I got here of course I knew enough about the business but a couple of things just caught my attention,” he said. “The first one would be the talent that we have in the business. We have very talented people, very knowledgeable both in our stores and in our home office. We’re putting all that collective intelligence to continue to bring our purpose to life across all of Canada.

“The other thing I was quite impressed is how sophisticated it really is. Of course we’re at the cutting edge of retail with lots of players, lots of options for consumers. The technology supporting customers so they can shop the way they want and where they want. It’s a pretty intense retail environment.

“I’m quite impressed by how much our value proposition resonates across the whole customer base of bringing value, everyday low price, and bringing access through our stores and our omni capabilities.”

Walmart Canada officially opened its new Edmonton Kingsway Walmart Supercentre in Alberta today (CNW Group/Walmart Canada Corp.)

Gebara said the company describes itself as a people-led, tech-enabled, omni-channel retailer.

“Our people are the most important thing that we have in Walmart and we continue to invest and to develop all of us. But technology is a very, very strong enabler so that we can continue to serve customers, serve communities and develop our associates across the whole network,” he said.

“We will continue to invest in technology. This is obvious. We will continue to leverage the great innovations that we see coming from our U.S. business. Some of them we can implement faster than others because of nuances of each of the different markets and the shape of our businesses. We are in good shape to continue to develop technology and invest in technology.”

Gebara described the retail landscape in Canada as “ever-evolving.”

“The pandemic had a big impact in so many ways in our industry and coming out of the pandemic and kind of this post-pandemic era, there are a few things that went back to the way they were before, others haven’t,” he said. “I think we’re still in flux to see what the next normal will look like.

“So in the meantime, the way we’re thinking about the business is we need to be agile enough to be able to adapt and continue to learn about customers’ preferences and customer behaviour so we are prepared to react fast to the nuances of our customers’ preferences.

“We are continuing to evolve our network so that we are agile and we can react fast to the customers’ preferences.”

Canadian Cities Seeing Empty Downtown Spaces and Food Deserts Amid Reduced Foot Traffic [Op-Ed]

By

Sylvain Charlebois

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July 16, 2023

Vacated Subway Franchise at the Sheraton Centre in Toronto (Image: Dustin Fuhs)

“Cities will need to embrace new transformative strategies to overcome the challenges of downtown empty spaces and food deserts.”

The establishment of hybrid work as a long-lasting trend is evident, as supported by a recent global report. Since mid-2022, office attendance has reached a stable state across developed nations, consistently maintaining a 30 percent decline compared to pre-pandemic levels. Naturally, this phenomenon has substantial implications for the food industry.

The newly released report from the McKinsey Global Institute sheds light on the potential consequences of remote work, warning that it poses a threat of devaluing office buildings in major cities by a staggering $800 billion. The survey encompassed cities such as Beijing, Houston, London, New York City, Paris, Munich, San Francisco, Shanghai, and Tokyo, but Canadian cities were not included. Nevertheless, anyone who has visited major cities throughout Canada would have observed a decline in local foot traffic. According to the report, foot traffic around stores in metropolitan areas continues to remain 10-20 percent lower than pre-pandemic levels, and this trend is expected to persist.

The Ring at Place Ville Marie (Image: Place Ville Marie)

Municipal governing bodies and business organizations, such as city councils and Chambers of Commerce, are actively seeking strategies to revitalize downtown areas and entice individuals to return. A notable example is the installation of a large ring structure in Montreal, designed to attract both tourists and workers. However, the outcomes of such initiatives have been varied, yielding a range of results and impacts on the desired objectives. Unions have also recognized the increasing prevalence of remote work and have made it a central topic of negotiation during the reopening of collective agreements.

This fact holds critical importance for food retailers and restaurants. The report highlights that urban core retailers face significant challenges in attracting customers, particularly in comparison to their suburban counterparts. As of October 2022, it was observed that foot traffic near suburban stores had recovered to a level 16 percent lower than January 2020, whereas foot traffic near urban stores remained considerably lower at 36 percent. These challenges are further magnified in office-dense neighborhoods within urban cores. The underlying reason for this trend appears to be the reduction in office attendance, resulting in less frequent shopping near the office. Survey respondents who only worked at the office for one day per week reported significantly lower retail spending in proximity to their workplace compared to those who worked at the office for two to five days a week.

Southcore Financial Centre (Image: Dustin Fuhs)

Urban core-based food stores and restaurants will inevitably face the impact of reduced traffic. There is concern that this could contribute to the emergence of food deserts in urban areas. Urban food deserts refer to areas with limited options for affordable food for city dwellers. If real estate values decline in downtown cores, it is possible that urban spaces will become more appealing for establishing downtown markets. The report also emphasizes the variations between different cities. Toronto, Montreal, Calgary, Edmonton, Vancouver, and even smaller urban cores like Winnipeg, Victoria, Quebec City, Saskatoon, Regina, Charlottetown and Halifax are adapting to the hybrid work environment.

To navigate these challenges, pop-up food stores, mobile farmers’ markets, e-commerce platforms, grocers, and restaurant operators must actively seek out areas with market potential instead of relying solely on existing foot traffic. The industry requires a paradigm shift in thinking. It is important to acknowledge that downtown areas are undergoing transformation. While some may perceive this as negative, it is not necessarily the case. Positive developments can arise from such shifts. More affordable rental space downtown could actually bring new opportunities to the food industry. However, urban food deserts remain a genuine challenge for certain neighborhoods, and specific demographics may be left behind. Previously, growth in urban centers occurred effortlessly. Today, the growth of downtown areas, supported by food establishments, will necessitate innovative retail strategies.

Nespresso Expands Presence in Ottawa with New ‘Neighbourhood Concept’ Streetfront Store at Lansdowne Live Development [Interview]

By

Mario Toneguzzi

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July 14, 2023

Nespresso at Lansdowne Live (Image: Nespresso)

After closing its location in Ottawa’s CF Rideau Centre, Nespresso is opening a new location at the mixed-used Lansdowne Live development with a streetfront store in the busy neighbourhood in the nation’s capital.

Anne-Valerie Guidollet, Vice President of B2C Sales and Omni-Channel at Nespresso Canada, said the Lansdowne location in Ottawa’s inner city will house the brand’s innovative new concept neighbourhood store.

“It’s a destination area. It really came across as a new type of location which would also be very close to our Nespresso club members,” she said.

“We decided to test this type of area, location, as something new and different in terms of bonding with our club members and being part of a community neighbourhood.”

Nespresso at Lansdowne Live (Image: Nespresso)

The brand’s presence in the Ottawa area includes a new boutique store in Gatineau and a store in the Bayshore Shopping Centre in Ottawa.

“What’s different for us (with the Lansdowne store) and something that we haven’t tested in a while is the fact that it’s actually going to be a street location,” said Guidollet. “The previous openings that we made were more in a mall context. This is why it’s really interesting to see what type of traffic we’re going to get in that area, what type of relationships we’re going to have with the club members because we believe it will be a different experience than shopping at a mall.”

“We have 35 boutiques in Canada, which include two street boutiques. Crescent Street in Montreal and Cumberland Street in Toronto. This will be another street boutique. It’s very interesting for us to see, and test and to innovate in this way.”

Guidollet said every year the company re-assesses its network to see what’s working well, what’s not working as well, what are the opportunities.

“We do have projects in the future in some of the biggest areas. I cannot share too much, but what I can say is we’re going to reinforce our experience and then we’re always interested in also testing new locations. We opened a pop-up in Kelowna for instance. We also opened a popup in Sherbrooke,” she said.

“We’re also looking into beyond going into the downtown areas and looking at other locations where we could have appeal to our club members and attract our club members. We look at both the traditional big city areas but also other new areas where we see a fit with our brands and potential club members.”

Shuttered Nespresso at CF Rideau Centre (Image: Dustin Fuhs)

Guidollet said Nespresso has a strong omni-channel presence, but it’s grounded also in the retail experience.

“In terms of retail, what’s different with Nespresso is the level of experience that we want to give and the level of personalization that is very, very important to us. Tasting is really our key point of difference. We have a strategy to offer coffee tasting to whoever comes into the boutique and it’s a way for people to discover our brand. That’s something that we can only do in boutique and linked to that there’s also the story behind the brand. All our sustainability programs, our sourcing. These are also key elements for us that we really showcase throughout the touchpoints and in boutique we spend more time to explain and to educate our club members on.”

Nespresso liked the Lansdowne Live area because it’s an up-and-coming neighbourhood in Ottawa along the busy Bank Street with lots of foot traffic.

There’s a lot of activity in the area with restaurants, a farmer’s market, a football stadium, and a hockey arena.

The Nespresso location there will have direct access from the street level, and it will be just over 2,000 square feet.

David Scorniaenchi, Vice President of Leasing for real estate company Trinity, which is the landlord for Lansdowne Live, said the area is a one-of-a-kind unique development.

“I don’t think there’s too many of them in Canada really that has this combination of sports, retail and entertainment,” he said. “It’s really a home for everything in Ottawa.”

“We’re thrilled to be welcoming Nespresso. When we had the opportunity to work with them and bring them to Lansdowne it’s the exact type of global destination name, banner, brand that we look for Lansdowne and I think it fits perfectly for the neighbourhood. There’s tons of traffic here. There’s lots of events, it’s a high energy site especially when there’s sporting events going on but throughout the summer there’s lots of programming. So it’s exactly the type of tenant we like to target.”

Attracting more than four million visitors annually, Lansdowne Live is a premium, one of a kind, mixed-use sports and entertainment centre in the Glebe District, one of Ottawa’s most revered neighbourhoods. Blending historical beauty with modern retail, office and residential, Lansdowne boasts year-round entertainment including a farmer’s market, and over 300 events held across the Aberdeen Pavilion, Horticulture Building, and TD Place. TD Place is home to the Ottawa Redblacks (CFL), 67’s (OHL), Blackjacks (CEBL) and Atlético Ottawa (CPL).

Lansdowne Live includes a real estate mix with 340,000 square feet of retail, 280 residential units, 116,000 square feet of office, and 1,430 parking stalls. The retail is anchored by Cineplex VIP, GoodLife Fitness, Whole Foods, Sporting Life, Winners, LCBO, Joey, Craft Beer Market, Milestones and Local.

“We are looking to do Lansdowne 2.0 which involves a redevelopment of the north end of the football stands that will add potentially three more residential towers and 1,200 residential units and additional 80,000 square feet of retail and more entertainment as well,” said Scorniaenchi.

Nespresso is working with brokerage Oakmont Real Estate Services for its Canadian expansion.

Canadian Retail News From Around The Web For July 14th, 2023

By

Retail Insider

-

July 13, 2023

News at a Glance

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.

Union, employer reach tentative 4-year deal to end B.C. port strike (CBC)

Gary Lenett on expanding Duer’s physical store footprint (Sourcing Journal)

Roots Provides Details for its Annual Meeting of Shareholders to be Held on July 20, 2023 (Newswire)

Metro Ontario grocery workers’ union sets strike deadline (Grocery Business)

Rabba Fine Foods goes solar on distribution centres (Grocery Business)

Penticton is getting a pop up Zellers (Penticton Western News)

Toronto nail salon customer, staff tussle on street over $165 bill (Global)

The legendary tale of Atlantic Canada ice cream favourite Moon Mist (CBC)

Erin Mills Town Centre in Mississauga Adding New Retailers with Eye on Future Residential Use [Interviews]

By

Mario Toneguzzi

-

July 13, 2023

A $100-million investment in the redevelopment of the Erin Mills Town Centre a few years ago has transformed the property into a premium shopping destination in Mississauga with the potential of future residential use being eyed for the site.

Jeff Barbosa, General Manager at Erin Mills Town Centre, said the mall has done a great job in recent years of growing with the demographic in the area.

“Right now with the Centre with all the development we’ve done since 2014 the Centre itself I think we’re pretty well wrapped up with the development for the building itself,” said Barbosa.

“There is some conversation on possibly some exterior amenities on some of our land.”

Erin Mills Town Centre (Image: Erin Mills Town Centre)

In the area, there is incredible residential condo growth around the Centre.

“There is some more retail growth that will happen out on pads, but residential will be the future growth outside the enclosed mall which means the mall becomes the amenity to the residential and the residential becomes a brand new customer base for the mall,” said Andrea McGowen, Executive Managing Director of Business Development and Leasing for Cushman & Wakefield Asset Services, which manages the property.

Barbosa said the idea would be that the Erin Mills Town Centre would be almost like an ecosystem of what is going to be surrounding the mall down the road.

The Centre was originally built in 1989 with about 850,000 square feet over two levels today and it sits on 84 acres of land. There are about 185 tenants. Anchor tenants include Hudson’s Bay, Walmart, the newly-opened Cineplex Junction and Marshalls.

Cineplex Junxion at Erin Mills Town Centre (Image: Erin Mills Town Centre)

Barbosa said the shopping centre has about 10 per cent vacancy currently.

Besides the Cineplex Junction, other key openings in the past year or so have included Marshalls and a Zellers shop-in-store at Hudson’s Bay.

“We have many exciting prospects planned. We can’t really divulge them at this time but I think considering this is a post-COVID environment I would say that we’re performing better than many properties. We’re in a great spot in terms of leasing. Having a vacancy of only 10 per cent is a great story considering what other businesses have gone through,” said Francesca Bourré, Marketing Director at Erin Mills Town Centre.

“Erin Mills Town Centre has always been a vibrant hub for families and friends in the community and is considered the ultimate place to meet and greet. We have continued that momentum to ensure that people know that we are there for them.”

McGowen said that in the past year and a half there has been about 70,000 square feet of new openings which include Cineplex Junction and Marshalls.

“We do have about another 40,000 square feet right now under negotiation. What we’re actively pursuing is undertaking that true evolution of the retail offering here so that we can satisfy our customers’ changing needs,” she said. “So that’s not only this food and beverage opportunity but we’ve also introduced a number of unique and entrepreneurial and diverse retailers that are actually speaking to our customers’ needs.

“There’s a Korean lifestyle brand that’s going to come in doing beauty, decor. We’ve got some Afrocentric clothing that’s coming in. We’ve got some Turkish and Middle Eastern retailers who are coming in and one that’s expanding with us. So you’re going to see that evolution of the offering to make sure we’re meeting the needs of our customers going forward.”

Marshalls at Erin Mills Town Centre (Image: Erin Mills Town Centre)

Marshalls and Cineplex Junction took the majority of the space in the former Sears box which was about 135,000 square feet in total. There’s about 45,000 square feet left with the majority on the lower level. There is ‘paper’ on that lower level space to lease out that space but that has not been finalized.

“It is not a prototypical retail offering. It will have offshoots that will take space in the rest of the mall that will be more of a customer centric retail offering but we’re looking to evolve that use and add some different uses to the shopping centre,” said McGowen.

According to the Centre, the $100-million transformation included:
NEW CENTRE COURT, SPHERE & FOUNTAIN
A spectacular new architechtural Sphere has been added to float over Centre Court and allow natural light to flood into the shopping centre. The Sphere is 283 feet in circumference and its double curved glass construction is one of its kind in the world.

NEW FOOD COURT & OUTDOOR PATIO
Visit the new Food Court and Outdoor Patio today for a bright and fresh experience featuring 26-foot tall windows and spectacular views of the city.

NEW ENTRANCES
The impressive new main entrance (Entrance ‘A’ near Hudson’s Bay) features a striking glass facade that is over 40 feet tall and 350 feet wide. New entrances have also been added to the Tim Horton’s and Shoppers Drug Mart wings in addition to a complete renovation of Shoppers Drug Mart, now offering the Beauty Boutique.

UPPER AND LOWER LEVEL WINGS
The upper and lower level wings have been completely redeveloped and feature European limestone floors, elevated ceilings and enhanced new lighting for a modern & refreshed shopping experience.

NEW ELEVATOR & NEW ESCALATORS
A brand new elevator has been installed in Centre Court and brand new escalators have been installed in each of the anchors’ wings as well as in Centre Court and at the new Main Entrance near the Food Court. The new elevator and escalators will improve navigation throughout the centre.

NEW WASHROOMS
Modern new washrooms (women’s, mens’, family & nursing rooms) are located on the upper level in the Food Court and on the lower level in the H&M hallway.

Shoppers Drug Mart at Erin Mills Town Centre (Image: Erin Mills Town Centre)

Outdoor Food Court Patio at Erin Mills Town Centre (Image: Erin Mills Town Centre)

Erin Mills Town Centre provides an attractive shopping environment in the heart of Mississauga, catering to a dynamic family market comprised of 255,422 households, with an average income of $116,000, far above the Canadian average household income of $79,000. The majority of the market consists of families, with an average age of 35 years.

The Erin Mills Town Centre customer market is upscale, with high projected growth in the suburban area of west Mississauga, Milton and Oakville. They are comprised of two main groups; the young family who are first time homebuyers building their careers, and focusing their energy and time on their children. They are time pressed, and therefore enjoy small indulgences and buying for their growing family. The other is an established family with children and an active lifestyle. They are professionals who shop at quality branded stores who indulge in the finer things. They are busy and involved in family activities. They can afford to buy finer quality, trend and brand merchandise for themselves and their children.

“We pride ourselves in offering programs with some falling under the national Cushman umbrella. Programs include International Women’s Day and Mental Health Awareness events and activations. Many of these efforts are important to our community,” said Bourre.

“This is very much the essence of Erin Mills Town Centre – to be a part of the community. We’re building towards residential and which will continue to speak to our brand positioning and a leader in community efforts.”

Interviews: Interactive Multi-Sensory Art Exhibit ‘Arcadia Earth’ to Open Permanent Location at ‘The Well’ in Toronto

By

Shelby Hautala

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July 13, 2023

This Fall, people in Toronto will be able to walk through an interactive multi-sensory art exhibit, Arcadia Earth, which inspires and informs people about climate change. The exhibit will also include a retail aspect where it supports Canadian brands who are environmentally friendly.

The permanent exhibit will hopefully be open to the public in October 2023 and will be located inside The Well.

“We are hoping to be able to open in October. People normally are not inspired by negativity, and so we wanted to offer something beautiful. And by doing so, we hope more people will come to join the conversation about climate change,” says Valentino Vettori, the founder of Arcadia Earth.

The exhibit has already seen success in New York, Las Vegas, and Saudi Arabia – Toronto was the next go-to location as they wanted to show the “first experience of its kind” to Canadians. The 17,000 square foot space will showcase ten rooms addressing different environmental concerns such as overfishing, biodiversity loss, and plastic waste. One out of the ten rooms will be reserved for a Canadian artist, which will be decided on in the next couple of weeks.

The Well in Toronto (Image: Dustin Fuhs)

After two years of searching for the perfect location, The Well caught their eye as the location provided easy access to guests as it is close to airports, trains, buses, and highways. Another reason The Well was landed on was because of its new sustainable services that will serve Toronto, including its new partnership with Enwave.

“We found this new development had some great forward thinking plans when it came to urban development. One really neat piece of The Well, I think will likely come out over time when they are opening, is in partnership with Enwave.They have this incredible deep lake water system that has cool and hot water distribution that is not just feeding The Well, but it is actually feeding outside and part of the downtown West core. So it is a really neat forward thinking system and was a great part of the story. Hopefully, at the right time, we will be able to tell that story within our space,” says Craig Perlmutter, the President of Arcadia Earth Toronto.

What People Can Expect

Arcadia Earth at The Well Construction Photos (Image: Arcadia Earth Toronto Facebook)

For the first concept, Perlmutter and Vettori say they are focusing on the concept of restoration and regeneration in Canada. Themes can go from underwater to land, plastic pollutants, overfishing, and more. Most of the rooms will be designed by Perlmutter and Vettori and all of the instalments are created with “upcycled materials and reusable elements.”

“We do this simply because it is a good way to allow flexibility for adoptions, updates, and changes particularly when it comes to climate change. For example, right now we are in collaboration with the World Wildlife Fund Canada and it gets a bit challenging when you also have to have a third party artist – so we create some of the rooms ourselves,” says Vettori.

As environmental topics will change, so will the exhibit as Perlmutter and Vettori says they made it where they can change the content, change topics, and change the overall mission. Some rooms might change every six months, twelve months, or some might stay for eighteen months – depending on the topic and how difficult it is to change. By refreshing rooms every so often, the exhibit will be able to draw more people back to the exhibit and will “continually inspire and motivate people,” says Puerlmutter.

As for any future plans with the new exhibit concept, Perlmutter and Vettori say as they are focused on the flagship location in Toronto right now, they are not looking to expand at this moment. However, they have a few ideas for different locations, such as a smaller versions of the exhibit.

Supporting Canadian Brands

The exhibit will also have a marketplace area which will be filled with brands created by Canadian entrepreneurs that have developed innovative, sustainable, and environmentally friendly products.

The exhibit will also include a marketplace where consumers will be able to find innovative, sustainable, and environmentally friendly Canadian brands. This does not just provide brand awareness to Canadian entrepreneurs, but also provides a learning opportunity for guests.

“That is the part of the impact which is super important to us, is that we are going to give options to visitors that they can buy, options for people to change some of their behaviours. Brands can also show consumers how to read labels a little bit better and look for cleaner, more eco friendly sustainable products. People learned a lot about brands in New York and Las Vegas, and we are getting some great feedback from Canadian businesses right now that would like to be part of our marketplace to showcase their innovations,” says Perlmutter.

“People Are Curious About What They Can Do”

Vettori says he wanted to create something that was “educational, but also fun for the whole family as every time education is fun – people stick around.” The exhibit is a chance for people to realize even small changes can have a big impact and will hopefully inspire people.

“If people are curious about what they can do, then this is a great opportunity. The exhibit shows people they can easily change their behaviour and will inform people that these behavioural changes are really simple to make and also make a lot of sense. So generally, I think people want to do the right thing, but they need to be inspired. We want to talk about all these topics in a more positive light and not bring a doomsday approach that you hear a lot in conversations about climate change,” says Perlmutter.

Retailers at the Top in New Study on Canada’s Most Trusted Brands [Interview]

By

Mario Toneguzzi

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July 13, 2023

MEC Vancouver (Image: MEC)

Retailers MEC (Mountain Equipment Company) and Costco have capitalized on their investment in customer-centric approaches and their value offering to tie for the most trusted brands in Canada in the ninth annual 2023 Gustavson Brand Trust Index (GBTI).

The Index is a research study by the Gustavson School of Business at the University of Victoria.

“The two brands’ commitment to value-driven offerings, customer service and competitive pricing has resonated with consumers searching for affordability in the face of inflation,” said Saul Klein, dean of the Gustavson School of Business at the University of Victoria.

Image: 2023 Gustavson Brand Trust Index (GBTI)

Saul Klein

After achieving the top spot in the Gustavson Brand Trust Index in 2019 and 2020, MEC faced a significant decline in 2021 following the dissolution of their co-op structure and sale to a private investment company in the US, falling into seventh place. However, through determined efforts, they reclaimed their first-place position as the most trusted brand in 2023.

“MEC’s incredible comeback story showcases the power of resilience and customer loyalty, propelling them from a moment of crisis to reclaim their position as Canada’s most trusted brand,” said Klein. “Their story inspires other companies to prioritize transparency, sustainability, and customer-centric approaches to regain trust and thrive in a competitive market.”

Klein said the Gustavson Brand Trust Index is a national, in-depth analysis of the role brand trust plays in the minds of consumers when making purchase decisions.

Based on the perceptions of 13,188 Canadians, measured in early 2023, it ranks and evaluates trust in over 400 brands. Brands are then assigned to different categories and compare their performance on the various determinants of trust and their likelihood to be recommended.

“Earning trust in a purpose-driven economy is achieved by acting with competence and good intent. It is lost when these behaviours are not demonstrated. This year we were struck by the declining trust in Big Tech companies which have tightened their grip on our lives, dominating how we communicate, shop, learn about the world and seek distraction and joy,” said Klein.

Image: 2023 Gustavson Brand Trust Index (GBTI)

“Even while many of us have spent lots more time with technology since the pandemic, we are becoming more concerned about the enormous amount of power these companies wield and our vulnerability to their actions. Even some of tech’s biggest supporters have started seeing the potential for worry here. Unless these companies adapt to rebuild trust we are likely to see more restrictions on their dominance coming from governments.

“The good news is that this troubled era demonstrates the benefits and the importance of businesses using their power and voice in ethical, transparent and authentic ways that are good for people and the planet while still recognizing the need for profits. There are enormous opportunities for brands to differentiate themselves from others, bolster their competitive advantage, and stay relevant for the future by re-focusing their efforts on what matters to their consumers, employees, and investors alike. This opportunity is particularly pronounced for the younger generation, those on whom future business success depends.”

The report said a key finding this year was brands that offered savings and value to consumers increased their trust rating, influenced by rising inflation and hits to people’s bank accounts. Those brands that seemingly turned a deaf ear to rising costs saw their trust scores erode.

Image: 2023 Gustavson Brand Trust Index (GBTI)

Other Key Findings

WestJet has lost altitude, while the airline industry as a whole is facing a severe crisis in customer trust and loyalty. To regain lost ground, airlines must prioritize exceptional customer service and operational excellence to win back the hearts and minds of Canadians;
Netflix’s decision to crack down on shared accounts, coupled with the subsequent decline among its viewers, highlights the growing importance of trust in the streaming industry;
Inflation and the pursuit of value saw trust in Loblaws plummet;
Toyota is the most trusted brand in the Automotive category while trust in Tesla dropped sharply;
Among Canadian youth, Four Seasons Hotels & Resorts ranked ninth and as the most trusted brand in the hotel category, perhaps inspired by popular TV shows and social media influencers;
BC local brand, Kicking Horse Coffee is the most trusted brand in the Coffee/Tea Category;
A significant decline in trust in CTV among respondents aged 35 and over raises concerns about the network’s reputation and its ability to retain loyal viewers, influenced by the dismissal of veteran journalist Lisa Laflamme.

Klein said the research study categorizes the responses of people into three dimensions when it comes to brand trust.

One is functionally based. Do you trust the brand to keep their promises effectively? Are they reliable? Are they consistent? Do they provide good value for money? High quality? Innovation?

“The second thing is we look at more relational issues which really comes back to the service and the individual customer. So how well do I think they’re treating me as a customer? Do they communicate honestly with me? Do they protect my privacy? Do they fix my problems if something goes wrong?,” said Klein.

Image: 2023 Gustavson Brand Trust Index (GBTI)

The third dimension is more of a value base. Consumers tend to trust brands that are doing things that have more of a positive societal impact. Does the brand respect and protect the environment? Do they contribute to the local community? Do they treat employees well?

“We think there’s a bit of an evolution where historically it was all about functional trust. But sometime in the 1970s and 1980s we saw this movement where it was harder and harder for brands to differentiate themselves on the basis of functional trust so the service component became more and more important,” said Klein.

“Where we are now is we think we’re on the cusp of the next evolution. So you can think of it as a product-based economy to a service-based economy, we’re suggesting the next evolution is to a purpose-based economy where again it’s harder and harder to differentiate oneself on the basis of the quality of one’s service and what becomes the differentiator going forward is really about the broader contribution of the brand to society and in some ways that might be the most sustainable basis of differentiation because it’s the hardest one for anybody else to copy.

“You can copy somebody else’s product features. You can reverse engineer. You can benchmark against the service standards but the value based elements are really embedded in the culture of the organization and those are hard to copy.”

Canadian Retail News From Around The Web For July 13th, 2023

By

Retail Insider

-

July 12, 2023

News at a Glance

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.

Aritzia’s share price plunges 24-per-cent as consumers shift to essentials (BIV)

Rivian Set To Open First Canadian ‘Spaces’ Showroom On July 28 in Vancouver (InsideEVs)

More than half of CFIB members say Port of Vancouver strike will hurt them (Edmonton Sun)

Dollarama joins Air Miles loyalty program (Grocery Business)

How Lee Valley Tools became an e-commerce giant (Retail Merchandiser)

IKEA Canada picks Edelman to lead PR duties (Strategy)

Tim Hortons, Canadian Tire and other loyalty programs worth watching (Pique)

How clipping coupons has evolved into deep digital discounts (CBC)

Regional Grocers Will Face Tougher Fight Online Against Walmart (Financial Post)

Viral and Cult-Fave beauty brand Live Tinted officially launches in Sephora Canada (Yahoo)

New Long & McQuade Location in Halifax Will ‘Have Your Socks Knocked Off’ (Huddle)

Some Ottawa ‘food desert’ neighbourhoods to benefit from city zoning change (Ottawa Business Journal)