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Canadian Retail Sales Saw Essential Gains Amid Discretionary Spend Drop in May [J.C. Williams Group Analysis]

By
Retail Insider
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Cornwall Centre in Regina, Saskatchewan, May 2024. Photo: Craig Patterson

By J.C. Williams Group

Canadian retail sales in May experienced a modest increase of 1.1% YOY  for All Stores, according to the latest data. However, discretionary spending underperformed, with All Stores Less Automotive, Food, and Pharmacies decreasing by -0.6% YOY.

The Supermarkets and Other Grocery Stores category saw a 1.8% YOY increase in sales, indicating that the recent boycotts targeting major grocery chains had a minimal impact on the industry overall. Inflation in food over the past year (May 2024 compared to May 2023) is at 1.5%, therefore large grocers still exceeded last year’s sales as a whole.

Specialty Food Stores, on the other hand, received a slight boost of 2.9% YOY, potentially due to consumers shifting towards smaller, local grocers in response to high inflation and the boycotts. There are many Specialty Food Stores that are not reported in Canadian StatCan data, so this could mean that the increase is actually higher than reported.

Interestingly, as noted last month, retail sales in Alberta continue to decrease, and were down -0.3% YTD compared to 2023. This is despite the province’s significant population growth. Considerations included:

  • Newcomers are shopping locally, though this alone shouldn’t have a significant impact.
  • The costs associated with moving have constrained their immediate spending capacity.
  • Alberta’s appeal lies in its lower cost of living, suggesting that many of the new residents might already be more frugal shoppers.

While Canadians continue to be constrained on cost of living expenses, they may be headed to other less-expensive areas, such as the Maritimes, for Ontarians, British Columbians, and maybe now even Albertans. Atlantic Canada experienced the second highest growth in retail sales of all Canadian regions (4.6% YTD). However, just as what is likely occurring in Alberta, this could backfire in the near future as the cost of living increases to a point where the differences in lifestyle begin to outweigh the savings in housing and relocating. These interprovincial migrations will also continue to be strained by the requirements to return to office.

As we move into the summer months, JCWG will be closely monitoring several key trends and factors that will continue to shape the Canadian retail landscape:

  • Will Canada begin to see the benefits of “coolcation” tourism? (tourists looking for cooler climates to travel to in the summer to avoid heat waves).
  • As we approach the mid-point of 2024, how will Q1/Q2 trends develop through the rest of the year?
  • How will upcoming mortgage renewals impact discretionary spending?
  • Is news on construction, flooding, fires, etc. keeping tourists from wanting to travel to popular Canadian destinations?
  • With limited growth in the percentage of online sales, could enhancements in retail experiences be the underlying cause?
  • How are YOU strategizing to encourage tourists to visit your store?

Canadian Retail Sales by Product Category, Same Month Comparison

Sales for the Month of MayMay-24May-23YOY
All Stores73,246,31972,465,3291.08%
Motor Vehicle and Parts Dealers21,105,12620,817,7881.38%
Gasoline Stations7,022,7376,748,0904.07%
All Stores Less Automotive45,118,45644,899,4510.49%
Food and Beverage Stores13,420,96513,268,7691.15%
Supermarkets and Other Grocery Stores*9,448,3569,281,2371.80%
Convenience Stores783,489795,575-1.52%
Specialty Food Stores929,333903,2342.89%
Beer, Wine and Liquor Stores2,259,7872,288,723-1.26%
Health and Personal Care Stores5,658,3935,436,9954.07%
All Stores Less Automotive, Food, and Pharmacies26,039,09826,193,687-0.59%
General Merchandise Stores9,846,6849,556,8353.03%
Furniture, Home Furnishings, Electronic and Appliance Stores3,495,3733,501,616-0.18%
Furniture Stores1,175,7001,178,782-0.26%
Home Furnishings Stores742,438734,6651.06%
Electronics and Appliance Stores1,577,2351,588,169-0.69%
Clothing and Accessories Stores3,630,6483,653,592-0.63%
Clothing Stores2,775,7502,780,342-0.17%
Shoe Stores455,778453,9560.40%
Jewellery, Luggage and Leather Goods Stores399,120419,293-4.81%
Sporting Goods, Hobby, Book and Music Stores3,963,3434,145,280-4.39%
Building Material and Garden Equipment5,103,0495,336,364-4.37%
Miscellaneous Store Retailers2,613,9102,812,805-7.07%
Cannabis Retailers434,457425,3602.14%

Canadian Ecommerce Sales

Ecommerce SalesMay-24May-23Percent Change
Year-to-Date18,164,59917,142,2945.96%
Year-Over-Year3,867,846  3,435,24312,59%

Canadian Retail Sales by Store Category, Year to Date Comparison

Year-to-Date, Ending MayMay-24May-23YTD
All Stores315,851,564310,686,5791.66%
Motor Vehicle and Parts Dealers87,973,50286,094,9392.18%
Gasoline Stations31,285,26231,559,920-0.87%
All Stores Less Automotive196,592,800193,031,7201.84%
Food and Beverage Stores61,359,10160,281,6451.79%
Supermarkets and Other Grocery Stores*44,282,34343,134,6052.66%
Convenience Stores3,441,4333,505,006-1.81%
Specialty Food Stores4,077,4113,862,5955.56%
Beer, Wine and Liquor Stores9,557,9159,779,437-2.27%
Health and Personal Care Stores27,278,06425,660,4926.30%
All Stores Less Automotive, Food, and Pharmacies107,955,635107,089,5830.81%
General Merchandise Stores41,752,03239,641,7455.32%
Furniture, Home Furnishings, Electronic and Appliance Stores16,609,27516,680,458-0.43%
Furniture Stores5,446,3155,497,713-0.93%
Home Furnishings Stores3,272,9413,465,021-5.54%
Electronics and Appliance Stores7,890,0197,717,7222.23%
Clothing and Accessories Stores14,747,68115,018,795-1.81%
Clothing Stores11,362,46011,576,802-1.85%
Shoe Stores1,733,3331,765,148-1.80%
Jewellery, Luggage and Leather Goods Stores1,651,8871,676,843-1.49%
Sporting Goods, Hobby, Book and Music Stores17,019,48617,827,262-4.53%
Building Material and Garden Equipment17,827,15917,921,323-0.53%
Miscellaneous Store Retailers11,052,14011,682,117-5.39%
Cannabis Retailers2,058,6262,024,0341.71%

Retail Trade, Canada, All Stores, by Geographic Regions

RegionYear-to-Date 2024Year-to-Date 2023YTD
British Columbia42,777,34142,641,4730.32%
Vancouver21,549,60321,156,0501.86%
Alberta40,830,06840,935,414-0.26%
Prairies*20,894,90820,424,9422.30%
Ontario118,355,499115,954,0702.07%
Toronto53,635,31553,193,1280.83%
Québec70,490,47269,146,2061.94%
Montréal35,123,03234,540,9331.69%
Atlantic Canada21,457,50220,517,5614.58%
Territories1,135,0741,066,9126.39%

YDISTRI AI Solution Redistributes Unsold Inventory Based on Real-Time Demand

By
Mario Toneguzzi
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Photo: Shutterstock/licensed

Retailers worldwide are losing billions in unsold inventory but YDISTRI’s AI solution is turning this ‘deadstock’ into revenue by redistributing it based on real-time demand.

YDISTRI, an innovative AI-optimized SaaS solution for retail inventory management, is redefining how retail chains address inventory challenges.  It goes beyond forecasting to dramatically rebalance inventory across locations.

By intelligently redistributing unsold inventory to real-time demand, YDISTRI empowers retailers to maximize revenue and minimize waste, going far beyond traditional forecasting methods.

Unsold inventory, or “deadstock,” poses a massive financial drain on retailers, tying up capital in merchandise that may never sell. YDISTRI is the leader in solving this $637 billion global crisis, using cutting-edge AI to identify stagnant stock and automatically redistribute it to higher-demand locations before it goes to waste.

“YDISTRI represents the future of retail inventory management – an AI-optimized paradigm shift that finally aligns overstock with real demand to maximize revenue,” said Roland Dzogan, CEO of YDISTRI. “We are excited to bring this game-changing solution to retailers across North America and enable them to sell what others deem as unsellable inventory — at full price.”

Photo: Shutterstock/licensed

YDISTRI has revolutionized inventory for clients in the US, Canada, Mexico, UK, EU, and Central Europe since 2019. By predicting trends and intelligently redistributing inventory, YDISTRI empowers retailers to increase sales, lower waste, and navigate today’s landscape.

Here are some of the key benefits for retailers of using YDISTRI’s AI solution:

  • Go Beyond Forecasting: Exceeds traditional forecasting methods to dynamically rebalance inventory based on real-time demand;
  • Sell ‘Unsellable’ Inventory: Eliminate deadstock and slow-moving items by selling them at full price rather than resorting to write-offs or discounting;
  • Boost On-Shelf Availability: Ensure consistent availability for hot products network-wide, even during promotions, without additional inventory investment by better utilizing current inventory;
  • Expand Retail Footprint: Open new stores at dramatically lower costs without additional inventory investment by reallocating existing inventory;
  • Minimize Working Capital: Improve inventory turnover and cash flow with optimized redistribution across retail networks; and
  • Reduce Logistics Costs: Intelligently reassign stock to high-demand locations, significantly reducing logistics and transportation expenses.

YDISTRI is making a significant financial impact for retailers. On average:

  • 90 per cent of products redistributed are sold within two months;
  • 10 per cent (or higher) increase in net profit margin;
  • 10X increase in inventory turnover of low-velocity inventory;
  • 30 per cent improvement in working capital company-wide;
  • Two to five per cent logistics costs – firmly in control versus 40-50 per cent markdowns;
  • Up to 90 per cent of redistributed deadstock sold at full price, increasing net profits up to 20 per cent.

As the retail industry faces continued pressure to adopt sustainable practices, YDISTRI is leading the charge with its innovative AI-optimized SaaS solution. By transforming inventory management, YDISTRI enables retailers to reduce environmental impact, achieve significant cost savings, and implement more sustainable practices.

“We believe that sustainable retail practices are not just beneficial for the environment, but also for the bottom line. Our technology empowers retailers to make smarter inventory decisions, reducing shipping costs and waste, therefore, enhancing profitability,” said Dzogan.

“By leveraging our AI algorithms, we help retailers not only enhance their sustainability efforts but also improve their financial performance. It’s a comprehensive solution that addresses both environmental and economic challenges in the retail industry.”

Photo: Shutterstock/licensed

One of many client success stories is EU beauty retailer DOUGLAS, which had faced an overstock issue with inventory languishing on shelves which resulted in capital being tied up while product was being marked down. The retailer utilized YDISTRI’s innovative algorithm and as a result, was able to strategically shift its inventory management.

Inventory was aligned with regional demand through YDISTRI’s platform, while overstock was addressed by reallocating items to where they were needed the most. Within three months, DOUGLAS saw a significant reduction in deadstock with 90 per cent of previously stagnant products selling, which increased cash flow and reduced the need for discounting. Furthermore, in six months, it reduced total inventory by 32 per cent.

“The impact of cost-effective inventory redistribution is two-fold: not only does it improve customer experience, but it also significantly boosts our retailers’ profitability company-wide,” said Dzogan. “For example, our client DOUGLAS reduced their working capital requirements by an impressive 12%, while maintaining the same level of product availability for their customers.”

The environmental toll of retail practices, from plastic packaging to the disposal of unsold perishables, is staggering. YDISTRI addresses these issues head-on by optimizing inventory to reduce overproduction and minimize the transportation of unwanted goods. This approach prevents waste from ending up in landfills and significantly reduces the use of plastic packaging, contributing to a healthier planet.

True inventory optimization requires more than just planning and forecasting – it’s critical to close the loop with real-time inventory correction and optimization. Many retailers mistakenly believe their existing solutions are sufficient but fail to account for customer nuances and dynamically adjust inventory across locations. YDISTRI’s differentiator is its ability to go beyond planning, leveraging AI to continuously analyze data, pinpoint “deadstock”, and profitably redistribute inventory to prevent shortages and overstocks. Simply reducing assortment is a risky faux solution that can do more harm than good.

For retailers, shrinkage from theft and other inventory distortion costs billions annually as physical stock levels diverge from digital records. YDISTRI uses data analysis to identify “phantom” merchandise that should be in stock but has truly gone missing. By continuously syncing the digital and physical worlds, YDISTRI eliminates inventory blind spots to reduce multi-billion-dollar shrinkage costs that many retailers simply accept as unavoidable losses.

For more information on YDISTRI, visit ydistri.com

 *Partner content. To work with Retail Insider, contact Craig at craig@retail-insider.com

Canadian Retail Sales Dip in May: Statistics Canada

By
Mario Toneguzzi
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Statistics Canada

Retail sales in Canada decreased 0.8 per cent to $66.1 billion in May as sales were down in eight of nine subsectors, led by decreases at food and beverage retailers, reported Statistics Canada.

The federal agency said core retail sales—which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers—were down 1.4% in May and in volume terms, retail sales decreased 0.7 per cent in May.

“Following an increase of 1.2 per cent in April, core retail sales were down 1.4 per cent in May on lower receipts at all core retail subsectors, with the largest decrease in sales being at food and beverage retailers (-1.9 per cent). Sales at food and beverage retailers were down on lower sales at supermarkets and other grocery retailers (except convenience retailers) (-2.1 per cent) and beer, wine and liquor retailers (-3.3 per cent),” said the report.

“Lower sales in May were also reported at building material and garden equipment and supplies dealers (-2.7 per cent) and general merchandise retailers (-1.0 per cent).

“On a seasonally adjusted basis, retail e-commerce sales were down 3.6 per cent to $3.9 billion in May, accounting for 5.9 per cent of total retail trade, compared with 6.1% in April.”

Alexandra-Maria

An advance estimate of retail sales by StatsCan suggests that sales decreased 0.3 per cent in June.

Maria Solovieva, Economist with TD Economics, said April’s momentum in retail sales proved to be short-lived, with a sharp reversal in May and an expected sluggish performance in June. 

“Our internal credit and debit card spending data also indicate softness. Although certain sectors, particularly services, show some resilience, the overall spending trajectory suggests that consumers remain cautious, preferring to build precautionary savings rather than spend,” she said. 

Maria Solovieva

“Considering this, real personal spending is tracking around +0.7% (quarter-on-quarter annualized) in Q2. (The) report adds further to the evidence that the BoC (Bank of Canada) will cut rates when it meets next week.”

Last week retail giant Amazon reported its biggest sales this year for Prime Day.

Canadian data from Salesforce showed:

  • Discount rates (averaging at 27% off) were much more enticing this year compared to last year’s Prime Day with Canadian retailers increasing discount usage by 11%
  • Sales for non-Amazon retailers in Canada grew by 8% YoY
  • Canadian retailers witnessed consumers buying more units per transaction YOY (4.7% compared to 4.2 in 2023)
  • Canadian web traffic grew by 5% YoY (compared to +2% globally), while order growth shows an increase of 6% (higher than the flat 0% growth globally) 
  • Add to cart value (19%), conversion rate (2.5%) and cart abandonment rate (87%) for Canada remains stable YOY
  • Social traffic grew by 1% YOY (11% compared to 10% in 2023)
Caila Schwartz

“For the first time in a long time we’re seeing order volumes turn positive in certain markets and discounting is high. The lesson from the US and Australia is a simple one — if retailers deliver on discounting and providing true value, they will release that pressure valve of built-up demand and see incredible success. If they don’t, retailers may risk losing out as shoppers will go elsewhere,” said Caila Schwartz, Director of Consumer Insights, Salesforce.

According to the Bank of Canada’s latest Canadian Survey of Consumer Expectations, consumers’ perceptions of inflation are unchanged from a quarter ago, but their expectations for inflation over the next 12 months have declined significantly.

“Both measures have improved substantially in recent quarters, although they remain higher than they were before the COVID‑19 pandemic. Most consumers continue to think that domestic factors—in particular, high government spending and elevated housing costs—are contributing to high inflation,” it said.

Helena Lopes

“Sentiment remains subdued and unchanged from last quarter, as high inflation and elevated interest rates continue to constrain people’s budgets. Perceived financial stress remains high, most consumers continue to report spending cuts, and pessimism about future economic conditions persists. However, homebuying intentions are close to the historical average, supported by strong plans among newcomers to purchase a home,” added the report.

“Consumers’ perceptions of the labour market have weakened this quarter, especially among private sector employees. However, overall wage growth expectations reached a new survey high, driven by public sector employees who anticipate their salaries will catch up with the higher cost of living.”

Walmart and Costco Join Canadian Grocer Code of Conduct, Marking Critical Step to Controlling Prices [Op-Ed]

By
Sylvain Charlebois
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Walmart at The Stockyards in Toronto. Photo: Walmart Canada

The recent announcement that American retail giants Walmart and Costco will be joining the Grocer Code of Conduct, alongside established Canadian players such as Loblaw, Sobeys, and Metro, marks a critical step forward in the evolution of Canada’s grocery sector. This collective adherence to the code by all major players is essential for its efficacy and represents a monumental effort that has taken years to materialize.

To many, the Grocer Code of Conduct remains an enigma. Fundamentally, this code aims to enhance competition in the Canadian market by imposing accountability across the food industry, particularly targeting practices that have traditionally occurred out of public view. Under this new regime, various opaque practices, such as the exorbitant fees charged to suppliers by retailers, will be subjected to scrutiny and regulation.

For instance, consider a Canadian jam producer who wants to distribute products through major retailers like Loblaw. Initially, the grocer might impose listing fees and other charges amounting to over $100,000 annually. As the product gains popularity, these fees can escalate dramatically, compelling the supplier to increase prices to maintain profitability. This cycle contributes to market volatility and ultimately penalizes consumers. The implementation of the code is poised to mitigate such scenarios by regulating fee escalations and fostering a more stable pricing environment.

Furthermore, the code promises a more equitable landscape for independent grocers who will be able to negotiate on more level terms. While giants like Loblaw and Walmart will maintain significant market influence, their conduct is expected to become less predatory under the new guidelines.

Costco Rexdale NW Toronto (Image: Costco)

The industry’s need for an image overhaul cannot be overstated, especially in the wake of scandals such as the bread price-fixing debacle and the controversy over ‘hero pay’ during the pandemic. These incidents have severely tarnished the public’s perception of the grocery sector.

Key figures such as Michael Medline, CEO of Sobeys, have played pivotal roles in advancing the code. Medline’s call for greater discipline and respect within the industry, alongside the tireless advocacy by Michael Graydon and Sylvie Cloutier on behalf of Canadian food manufacturers, has significantly shaped the discourse and mobilized support among policymakers. The efforts of François-Philippe Champagne and the Parliamentary Agriculture Committee, chaired by MP Kody Blois, have also been instrumental in positioning the code as a strategic blueprint for fostering competition and enhancing supplier relations in Canada.

With the code’s implementation, food manufacturers and independent grocers will gain a stronger voice, leading to greater product diversity for consumers. This is a straightforward equation: more suppliers equate to more choices on the shelves.

While securing the commitment of all five major retailers is a commendable achievement, the real challenge lies ahead in ensuring compliance and tangible results. Canadians’ skepticism will likely persist until they witness the benefits of these reforms firsthand—a sentiment that is both understandable and justified.

Canadian Retail News From Around The Web For July 19th, 2024

By
Retail Insider
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Canadian Retail News From Around The Web

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.

Final hurdle clears for grocery code of conduct as Walmart, Costco sign on (BNN)

New report confirms what many suspected: ‘shrinkflation’ is real — and it’s shrunk some products by up to 25% (The Star)

Amazon says it had its best Prime Day sales event ever this week (CTV)

2 deaths in listeriosis outbreak linked to plant-based milk recall, Canadian officials say (CBC)

Ready-to-drink beverages expand to grocery stores as LCBO strike continues (Global)

78-year-old hobby shop in Halifax closing its doors (CTV)

Crombie, Sobeys Join Forces For Six-Storey Beaches Development (Toronto Storeys)

Calgary T&T Supermarket location set to reopen after fire (CTV)

Local bakery with gourmet cakes opens its first location in Calgary | Dished

Anatomy of a Leader: Rachel Huckle, CEO of Staples Canada

By
Mario Toneguzzi
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Anatomy of a Leader: Rachel Huckle, CEO of Staples Canada

Today, Rachel Huckle is one of the leading retail executives in the country as CEO of Staples Canada.

But her professional journey didn’t initially begin in the business world.

Huckle was born and raised in Toronto. She went originally to school for nursing. 

“That is what I did originally and then I moved on and started at Shoppers Drug Mart and became a pharmacy technician and from there I spent almost 25 years between Shoppers Drug Mart and Loblaw,” she said. 

“Over that time I went back to university and got an MBA at Rotman School of Management (University of Toronto) and then a few years later I got a Master of Finance at Queen’s (University) at the Smith School of Business.”

Image: Rachel Huckle

Huckle said timing played a large role in her decision to go from nursing into the business world.

“My mom is a nurse and she’s 82 years old and she’s still working in downtown Toronto at St. Michael’s Hospital. She loves it. It’s her purpose. She works in hemodialysis, renal transplant area. And she does infusions for them and she does some administrative research stuff for them,” she said.

“She’s a dynamite. Feisty. Four foot 11. I think that’s where my first foray came from. I was inspired by seeing what she did. I think in my heart of hearts I’m a nurturer by nature and she is as well. So I went down that path. 

“And then I was walking by a Shoppers Drug Mart and they had an opening for a pharmacy technician. I thought well let’s see. I had the medication background from nursing. So that’s where it started. I got the job and never looked back. Loved it. Did so many great things and learned so much going through that company.”

Image: Rachel Huckle

Earlier this year, Huckle was appointed CEO of Staples to oversee the brand’s roughly 300 stores, its digital and services business, and Staples Professional, Canada’s leading B2B business. 

Prior to that, Huckle was the company’s Chief Retail Officer and President and Chief Operating Officer.

She has played a pivotal role in its transformation to The Working and Learning Company. Under her guidance, Staples has expanded its products and services to provide more value and selection for consumers, grown its business-to-businesses offerings serving Canadian businesses of all sizes, and forged important strategic partnerships that have significantly enhanced the business.

She came to Staples in 2019 after being Senior Vice President of Merchandising for Loblaw Companies. Prior to that, she had been Senior Vice President, Health and Wellness, for Shoppers.

Image: Rachel Huckle

Huckle blends astute business acumen with accounting and store-level experience to drive dynamic strategies for business growth and bottom line profitability. She expertly wields comprehensive understanding of overall corporate strategy to execute corporate action plans at all levels.

She is recognized for authentic leadership, strong communication, and interpersonal talents, which are leveraged to cultivate a high performing culture, centered on core values, and collaborative working relationships with associate store owners, front line managers, colleagues, direct reports, and senior executives.

She describes herself as an impartial, objective and future-focused leader with an innovative and consultative approach to problem solving.

What did she like about the business world to make the transition from nursing?

“I think it came down to the leadership aspect. I think early days when I was a pharmacy technician I saw a lot of leaders come and go,” explained Huckle. “I didn’t always understand or appreciate their impact. And I realized at that time one of the things I wanted to do was to have impact so that any other person in the store who was in my shoes previously didn’t feel like I had impact or didn’t care. 

“And so it actually influenced how I lead because when I go to stores I make the time to go and talk to as many people as I can. I make the time to ask them what’s bringing them joy or what’s working and what can we do better. Try to make sure they feel seen and heard. I don’t know if it’s perception or reality but at the time I may not have felt like I was seen or heard. So I think that inspired me to want to pursue the more business aspect and leadership side of things.

“And then I realized that maybe I could do it well if I was given the chance and started to get in there and loved it. Loved the variety of things I got to do from early days of asset protection, inventory management and accounting to leading programs to bring Optimum and PC Plus together to create PC Optimum to building digital apps to launching new store concepts and working with different firms to learn about customer centric thinking. Loved it and realized you can be bold and do some incredible things to have impact in the business and people.”

Image: Rachel Huckle

Huckle said so much of the retail sector appeals to her.

“Retail’s a great career. If you like fast-paced, if you love to see impact immediately, sometimes you do things in work and careers and it could take months, years to unfold, here you can all see with immediacy, there’s some longer tent poles, but by and large you can see impact almost immediately,” she said. 

“And I will tell you, on the Staples’ front what’s great is we’re not just retail. We have a massive wholesale B2B business. We have a massive sales force. We have an online channel. We have a store channel. We have four digital platforms . . . The robustness of what you can get out of retail from strategy to financial acumen to leadership to innovation, it’s pretty cool.”

In her time outside of work, Huckle said she loves to spend time with her Peloton, trying to keep as fit as she can.

“I have four dogs and they’re all little guys but they are good for the soul and they’re very sweet animals. They give me a lot of joy. I like to take them out. I try to get in at least 10,000 steps a day. Sometimes I hit that number, sometimes I’m a little shy. I have a beautiful son. He is turning 30 years old this year and he just got engaged so he’s excited and planning all his big future plans.

“I’ve got family and travel from time to time and I like to read.”

Roots Unveils Prototype Store Design at CF Toronto Eaton Centre [Photos]

By
Craig Patterson
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Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)

Iconic Canadian brand Roots recently completed a renovation to its CF Toronto Eaton Centre store in downtown Toronto, which will be a prototype for new and renovated stores moving forward. The updated Toronto ‘Roots Central’ store features a fresh interior and a non-gendered product assortment layout. 

Construction of the store took about three months, beginning in February of 2024 and being completed in May. Final pieces were recently installed in the updated space, including a moss beaver on one of the walls of the store. 

White walls and a mix of wood give the store an airy feel, including a mixture of Eastern Canada hemlock wood on the floor fixtures and white oak (on the existing floor and cash desk) that were refinished and/or refurbished. All of the millwork was done locally, and fixtures were made specifically for the store. 

Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Meghan Roach (Image: Roots)

The moss beaver on one of the walls of the store was made in Toronto by Vancouver-based ByNature Design — the all-natural moss beaver is shaped in the iconic Roots logo that has become known worldwide. 

CEO Meghan Roach told Retail Insider that in recognizing inclusivity and how consumers already cross-shopped the store, Roots created a new product layout for the CF Toronto Eaton Centre location that is not gendered — rather, product is displayed by collection. That includes a dedicated area on the second level for the brand’s iconic sweats across genders, and various other areas in the store including new product launches near the front mall entrance. 

Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)

The CF Toronto Eaton Centre Roots flagship store, branded ‘Roots Central’, spans three split levels with 7,665 square feet of space. Roots opened the location in 1998, marking 25 years in the same location (its first store in the mall opened in 1986). The CF Toronto Eaton Centre store features a doorway onto Yonge Street in addition to its mall entrance, and also features ample natural light from East-facing windows towards Yonge Street and Dundas Square. The ceiling heights on the main level of the store are 18 feet, while the upper level boasts 22-foot ceilings which create a feeling of volume. 

Meghan Roach said that the retailer’s new store design is meant to embrace inclusivity, while reflecting the heritage of the brand. She said that Roots will also be using the store design moving forward for new locations, including one that will open this fall on Robson Street in Vancouver, and any future renovations of existing locations. 

Additional Photos of Roots at CF Toronto Eaton Centre

Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Roots at CF Toronto Eaton Centre (Image: Dustin Fuhs)

Artificial Intelligence is Poised to Radically Disrupt the Fashion Industry Landscape [Op-Ed]

By
Retail Insider
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The fashion industry is often an enthusiastic adopter of new technologies. (Shutterstock)

Fashion is a dynamic business. Most apparel brands make at least two to four collections per year. While selling current seasonal collections, brands plan for the next ones at least a year in advance, identifying market trends and materials. The selling window is around three months, and unsold inventories represent financial loss.

Fast fashion companies introduce new lines even more frequently, reducing the amount of time needed to design, produce and market new items.

Tech and fashion

The fashion industry is familiar with experimenting with technological frontiers. Some of the most significant technological breakthroughs are laser cutting, computer-aided design and more recently, the use of 3D printing in early 2010.

The fashion industry has experimented with basic AI and other cutting-edge technologies. One example is the Gucci Garden, the label’s collaboration with virtual world platform Roblox in May 2021 to celebrate the brand’s centennial.

Non-fungible tokens (NFTs) are another area of innovation, as seen with the Dolce & Gabbana Genesi Collection in collaboration with UNXD, a digital luxury marketplace. This collection sold for US$6 million, setting a record for NFT sales.

Fashion companies also use blockchains for product authentication, traceability and digital IDs, including those integrated by LVMH/Louis Vuitton, product authentication and traceability.

Additionally, companies have incorporated augmented reality into marketing and retail strategies to create immersive and interactive customer experiences.

Game-changing technology

In 2021, fashion companies invested between 1.6 and 1.8 per cent of their revenues in technology. By 2030, that figure is expected to rise to between three and 3.5 per cent.

Generative AI could become a game-changer for the fashion industry, adding between US$150 and US$250 billion to operating profits within three to five years. While the fashion sector has only started integrating AI, the opportunities and challenges it presents are evident across all business processes.

Generative AI could help fashion companies improve their processes, bring their products to the market faster, sell more efficiently and improve customer experience. Generative AI could also support product development by analyzing large social media and runway show datasets to identify emerging fashion trends.

Estée Lauder Companies and Microsoft have teamed up to open an in-house AI innovation lab for identifying and responding to trends, informing product development and improving customer experiences.

Designers could use AI to visualize different materials and patterns based on past consumer preferences. For example, the Tommy Hilfiger Corporation is collaborating with IBM and the Fashion Institute of Technology in New York on the Reimagine Retail project, which uses AI to analyze consumer data and design new fashion collections.

Designers can also convert sketches and mood boards into 3D designs and 3D print them to speed up prototyping. Iris van Herpen, a Dutch fashion designer, used AI to imagine and execute the visuals of her fall/winter 2023 collection.NOWNESS looks at Dutch designer Iris van Herpen’s imaginative uses of AI.

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AI and sustainability

AI helps in creating more sustainable fashion practices by optimizing the use of resources, recycling materials and reducing waste through more precise manufacturing processes and efficient supply chain and inventory management. For example, H&M uses AI to improve its recycling processes, sort and categorize garments for recycling and promote a circular fashion economy.

AI can improve operations and supply chain processes by optimizing inventory management, predicting sales based on historical data, and reducing overstock and stock-outs. Brands like Zara and H&M already use AI to control supply chains, promoting sustainability by optimizing stock levels and reducing waste. Zara also introduced AI and robotics into their retail stores to speed up online order pick-ups.

AI-powered virtual try-on solutions allow customers to see how clothes will look on them without physically trying them, enhancing the online shopping experience and reducing return rates. Virtual try-ons are already a reality in digital companies, such as prescription eyewear retailer Warby Parker and Amazon.

Another example is Modiface, acquired by French multinational personal care company L’Oréal in 2018, which provides AR-based virtual try-ons for makeup and fashion accessories.

a woman holds a mobile phone showing her face with make up on
Virtual try-ons help buyers make decisions and reduce returns. (Shutterstock)

Effective campaigning

AI can also deliver customized customer experiences. Some brands, such as Reebok and Versace, invite their customers to use AI tools to design products inspired by the brand’s feel and look.

AI-powered tools can help marketing teams target and maximize the impact of their communication campaigns, potentially reducing marketing costs.

The fashion business includes everything from small companies to global chains, haute couture to ready-to-wear, mass market and fast fashion. Each brand must understand where AI could generate value for their business without diluting their brand identity.

The biggest challenge, however, is to avoid homogenization. Generative AI should not replace human creativity but create new spaces and processes.

Creativity and innovation remain the soul and heart of any fashion brand, and AI should be a tool to enhance and support them. As fashion designer Hussein Chalayan has said, “fashion will renew itself through technology, new fibers, new ways of making clothes.”

AI pitfalls

Fashion companies should be prepared to manage the associated risks with new technologies, particularly regarding intellectual property, creative rights and brand reputation. One of the primary issues is the potential infringement of intellectual property related to training data.

GenAI models are trained on vast design datasets, often containing copyrighted works. This can lead to legal disputes over originality and ownership. A related risk is bias and fairness in generative-AI systems, which may present reputational challenges for brands that rely on the technology.

The ambiguity surrounding creative rights in the age of AI is another concern. It’s challenging to determine who holds the creative rights to a design, whether it’s the designer who conceptualized the idea, the developer who built the AI or the AI itself. This ambiguity can dilute the authenticity of a brand’s creative expression, potentially harming its reputation if consumers perceive the brand as less innovative or authentic.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

By Luana Carcano, Lecturer, Beedie School of Business, Simon Fraser University

Canadian Retail News From Around The Web For July 18th, 2024

By
Retail Insider
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Canadian Retail News From Around The Web

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.

The Body Shop International nears sale — but it doesn’t include the Canadian assets (CP24)

Shoppers Drug Mart strikes partnership with blood testing startup Truvian Health (Globe & Mail / subscriber paywall)

Think your grocery bill is high? Try eating gluten-free (CBC)

Birks annual sales up double digits on retail channel growth (Fashion Network)

Grocery items hit hardest by shrinkflation: report | Dished

Federated Co-op websites return after cyberattack, online shopping still unavailable (CBC)

‘It’s a brand name’: Why a Quebec business feels targeted by language inspectors (Global)

LCBO workers’ union to return to bargaining table amid strike (CBC)

Just 15 per cent of Ontarians say they’re affected by the ongoing LCBO strike: poll (CityNews)

Shoppers shocked as beer, wine fly off grocery store shelves (Toronto Sun)

Windsor convenience stores eager to sell alcohol — dozens have signed up for licences (MSN)

Nature’s Source opens 17th location inside of a Metro store in North Whitby (Grocery Business)

Jewelry store robbery followed by car chase; Mississauga woman and Toronto man, both 18, charged (InSauga)

FoodHero App Partners with Empire Company to Tackle Food Waste Across Canada [Interview]

By
Mario Toneguzzi
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Image: FoodHero

Montreal-based app FoodHero, with a goal of reducing food waste, has partnered with Empire Company Limited to significantly expand its reach into new regions of the country including Ontario, Atlantic Canada and Western Canada.

Jonathan Defoy

Jonathan Defoy, CEO of FoodHero, originally got the idea for the concept in 2016. The first store it partnered with was an IGA in Montreal in May 2019.

“The vision originally, the mission, it’s always been about saving food, so reducing food waste,” he said. “When I got the idea originally, it struck me as I was watching a documentary on food waste, and I saw those horrific, numbers about how much food is wasted. And so I had been a tech entrepreneur for almost a quarter of a century already. At the time I, like, literally, all the strings kind of got magically attached together in my head. 

“And I was like, okay, that’s what I want to do next. So it came to me very clearly that what I was able to build and what I wanted to build would be a B to B to C marketplace, where on one end we would have the supply from those grocery stores, maybe eventually, restaurants, farms. Pretty much everywhere where food is wasted, and would build a platform, as they say in tech lingo, mobile first and mobile only, and that was my original vision.

“So it was clear to me that I wanted a mobile app, just for the convenience, but also to be able for the consumer to localize, identify the stores around him or her that are currently offering food. So on one end you have the supply. On the other end you have the consumers, even small businesses sometimes that are looking for discounts, important discounts on food, and we’re the platform in between. So basically, from a retailer perspective, we’re providing a very complete technology solution that’s comprised of, obviously, connecting their back end to our solution so that we’re able to access in real time the inventory that they could be losing, and all the tools that they need to operate the solution. And on the consumer end, a simple mobile application where you basically, you shop on the app, you buy on the app, and you go pick up your order at the store, or stores where you decided to shop.”

FoodHero
Image: FoodHero

Through this national expansion, Canadians will gain access to deep discounts on surplus food at over 500 participating stores across Ontario, Atlantic Canada and Western Canada. The user-friendly FoodHero app connects consumers to local participating stores offering 50 per cent discounts in English Canada and up to 60 per cent in Quebec on select items. Since its launch in Quebec in 2019, the app has seen substantial growth, with over one million downloads and 100,000 active customers shopping at approximately 500 participating retailers in Quebec.

“Cost of living alongside the escalating issue of food waste are top of mind for Canadians,” said Defoy. “FoodHero connects customers with local grocery stores offering significant markdowns on products to prevent them from ending up in landfills. Our partnership with Empire Company Limited allows us to further our mission of combating food waste while offering Canadians enhanced value on their groceries.”

Image: FoodHero

Items available on the FoodHero app range from bakery, meat and prepared food to dry goods. With a consistent selection of items, customers can easily select from the available products and schedule a pickup time. The app also tracks the weight of products saved from landfills and estimates the associated reduction in CO2 emissions.

Kristi Lalach

“As a company committed to sustainability, we’re excited to be partnering with FoodHero, a Canadian success story fighting against food waste. This partnership supports our commitment to reducing food waste, ensuring more food reaches family tables instead of landfills,” said Kristi Lalach, SVP Legal and Sustainability, Empire Company Limited.

Defoy said the concept is now coast to coast in every province.

“This was supposed to happen in 2020, 2021, in the original agreements that we signed, but because of the pandemic, it really derailed our plans, but it’s okay. We never gave up, and we’re extremely happy to be able to bring that to all Canadians now, because it’s been very, very popular in Quebec, and we’ve, over the years, we’d have fellow Canadian citizens that were like, when is it going to be available?

“So we’re almost at 1,100 stores now . . . We would love to (expand), but for now, we’re obviously really, really focused on making sure that we are going to be as successful as possible with this launch . . . More, more to come, for sure, we’re open for business. But it’s a huge piece of cake that we’re starting to eat today because, you know, it’s six different chains. It took us one full year of very hard work to be there today. So the fun starts now.”

Empire Company Limited (TSX: EMP.A) is a Canadian company headquartered in Stellarton, Nova Scotia. Empire’s key businesses are food retailing, through wholly-owned subsidiary Sobeys Inc., and related real estate. With approximately $30.7 billion in annualized sales and $16.8 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 128,000 people.

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