Fuwa Fuwa Pancakes at Chinook Plaza Calgary (Image: Fuwa Fuwa)
One of North America’s most popular dessert brands Fuwa Fuwa Pancakes has opened its third location in Calgary as it continues to expand in the market.
The new location at Chinook Plaza is the company’s fifth location in Alberta. Other locations in Calgary are in the University District and Kensington neighbourhoods. The other two in Alberta are in Edmonton. The brand currently has 22 locations in Canada and internationally.
And there are plans to continue expansion.
Fuwa Fuwa Pancakes at Chinook Plaza Calgary (Image: Fuwa Fuwa)
Fuwa Fuwa was founded in 2018 in Toronto where Nicolas Poon, COO, and his co-founder Benson Lau, wanted to bring their love of Japanese desserts and a unique concept to Canada, a place where multiculturalism, diversity and innovative products are welcomed.
“We have more to be coming as well in the West Coast,” said Poon. “We have expanded across Ontario. And we have expanded across Alberta and now we are expanding across to Quebec, to British Columbia and other provinces as well.”
Fuwa Fuwa is known for souffle pancakes, which are light, fluffy, high in protein and low in sugar. Poon said every souffle pancake dish at Fuwa Fuwa is handcrafted and carefully plated to produce an artisanal piece that is popular on social media for its “photogenicism.”
“We often get DM’s and emails from enthusiastic followers around the world asking us to open a store near them,” he said.
Fuwa Fuwa Pancakes at Golden Square Mississauga (Image: Fuwa Fuwa)
Fuwa Fuwa won the Best Asia Pacific Business Award 2023 in the Association of Chinese Canadian Entrepreneurs.
“We have actually already expanded internationally. We have presence in the UK, in France. We’ll be expanding to the U.S. We will roll out on the first phase about 15 locations in the U.S. from Atlanta to Florida to the east coast like New York, New Jersey area as well as Boston. And then we also have down south in Texas and west in California, Los Angeles.”
Fuwa Fuwa Pancakes at Fairview Mall North York (Image: Fuwa Fuwa)
Six locations are currently opening internationally with 20 more locations that will be opening by the second quarter of 2024.
“Fuwa Fuwa literally means fluffy, fluffy. We specialize in something called the Japanese souffle pancakes. Unlike a traditional pancake, it’s light as air, fluffy as cloud pancakes. It’s actually also high in protein and low in sugar,” said Poon.
“There’s a lot of care that is also put into every plate in how we craft and place our products. It’s very artisanal and social media friendly as well.”
Image: Fuwa FuwaFuwa Fuwa Pancakes at Chinook Plaza Calgary (Image: Fuwa Fuwa)
Robson Yuen, who is operating the Chinook Plaza location, said he’s quite happy with the location of the new store and it feels like his dream has come true.
Yuen said most Fuwa Fuwa stores are about 1,000 to 1,200 square feet but his is slightly bigger with about 1,700 square feet.
Food and beverage concepts from Japan have become increasingly more popular in Canada.
“Our product is really a symbolism of multiculturalism and diversity because the origin of souffle pancakes actually originated from France. So pancakes is like bread and butter for North Americans and it’s also slightly reinvented in Japan,” said Poon.
“So this product has gone around the world and now as the largest souffle pancake chain in North America we also tie them in as a multicultural and globalized product and it ends up to be one of the very unique products that we have and it’s an innovation of a traditional product.”
Are grocery store lease terms increasing the cost of food?
Recently commercial real estate firm CBRE posed that question following a report from the Competition Bureau which confirmed that food costs are on the rise and significant changes may be required to bring grocery prices back down to earth.
“One unexpected idea floated by the Competition Bureau is to ban clauses in commercial leases that stop landlords from having competing uses or similar tenants at a property or in the surrounding area,” said the CBRE.
Walmart Canada officially opened its new Edmonton Kingsway Walmart Supercentre in Alberta today (CNW Group/Walmart Canada Corp.)
“Exclusive use clauses, known as restricted covenants in leases, effectively make it impossible for landlords to allow rival stores to open up near one of Canada’s Big 5 grocery chains (Loblaws, Metro, Sobeys, Walmart, Costco), who control more than two-thirds of domestic grocery sales.
“Those lease clauses allow grocery stores, and other retailers, to ensure that their investments are safe from excessive competition.”
Matthew Jackson, Vice-President with CBRE’s National Retail Group, said every retailer, not just grocery stores, likely has a clause barring a similar use from the property where they are located.
Matthew Jackson
“I personally think looking at the Competition Bureau and talking about the lease terms, I just don’t think that should be the specific focus. It’s not just in the real estate,” he said.
“What I understand the government basically is just saying if they’re able to take away the restrictive covenants within a lease in a centre and prohibit any restrictions going forward on a property, if a grocery store leaves, then it would allow new groceries to go on, other smaller deli’s, bakeries and other types of retailers to go into the centre.
“From what I understand what they’re saying, if we take the control away from the top five then there will be more competition. From reading the articles it says the UK, New Zealand and Australia have put in measures that have been successful. So I think they’re saying do that here.
Loblaw in Toronto (Image: Field Agent Canada)
“But my personal opinion and I know some people disagree with me – I do predominantly tenant representations – when we go into a centre and there’s a ground up development and you’re wanting to negotiate a deal and get prime positioning and you’re the first one to the table, you sometimes will pay to get the right spot and the right centre.
“If I’m Metro or Loblaws or Sobeys and I’m up in a centre paying $25 a foot and all of a sudden in year three they put in a Giant Tiger and then potentially a Farm Boy and other smaller grocery in a bigger plaza, my profits might be eroded away and I shouldn’t be paying the same rate as I did before because I did the pro forma to do the build out.”
He said a ban would trigger significant changes in how grocers and landlords approach leases.
CBRE said landlords are happy to land a grocery store because they bring in shoppers multiple times a week and that traffic helps boost sales and surrounding tenants. If there were no exclusions, grocers would likely pay landlords a lower rent, which could impact the value of that retail property.
“Government tools are rarely subtle and this change could have a domino effect,” said Jackson. “If there aren’t any restrictions, grocers would offset the rent offering for the potential decrease in sales due to competition. And if they pay less rent, that translates into a lower value for the retail centre.
“So does the landlord want to have the highest rents and the highest value for their retail property and give a grocer exclusions, or not have that exclusivity and have a diversity of other grocery options but lose some value?
“Even if that decision is taken out of the landlords hands.I’m not sure we’ll see the increase in competition the Competition Bureau is looking for due to some other important factors.”
Giant Tiger store on Walkley Road in Ottawa. Photo: Giant Tiger
Jackson said real estate isn’t necessarily where the solution to lower grocery prices will be found.
CBRE said smaller communities are where this change is likely to have the greatest impact. If a town only has one property that can house a grocery store, then exclusive use terms would stop butchers, bakeries and other independent businesses from locating in that centre. This would limit competition in a significant way.
“But the bigger culprit in most communities would be supplier agreements,” said CBRE.
“Large chains have agreements with suppliers to put their products on shelves. Independent stores don’t generally get the same deals as the Big 5, and so they are at a significant disadvantage in accessing the product and competitive pricing they would need to compete, even if they could sign a lease wherever they wanted.”
“Real estate isn’t prohibiting new entrants to the market,” added Jackson. “It’s more the control that grocers have through supplier agreements.
“If potential new entrants want to profit off the success of a Big 5 grocer’s presence, they can’t do it because those grocers have a strong hold on suppliers.”
While doing away with exclusive use clauses could increase competition between grocers in sought after locations, Jackson said the change could have unintended consequences that actually result in higher prices for shoppers.
“But if I’m a grocery store looking at signing up for a 20-year term and then I know in year three the landlord will bring in competition, I don’t want to be stuck paying a premium for 17 years,” he said.
“So length of term will be affected. And unfortunately if you shorten term, the investment is amortized over a shorter period, and that means higher rents for the grocery stores. Which is the domino effect again. Because higher rents will eventually impact grocery prices.
“You can attempt to solve for food prices through real estate lease clauses and rents and other things. But if you have 20 new competing grocery stores that can’t get the product on the shelves, then you realize that real estate wasn’t really the problem to begin with.”
Loblaws autonomous vehicles outside Toronto Loblaws grocery store. Photo: Loblaws
Dr. Sylvain Charlebois, Senior Director, Agri-Foods Analytics Lab, Dalhousie University, said there are different levels of what’s happening in the grocery business.
Sylvain Charlebois
“Leases are certainly a concern. The fact that some grocers are really trying to control certain micro markets, whether it’s a shopping mall or a small district, I don’t think it’s a secret for Canadians. But I think what has changed is our collective tolerance towards some of that control,” he said. “I think a lot of people are saying well maybe that’s a problem.
“And the other issue of course is our non-written deals between certain retailers. I do know for a fact that some discount stores nearby major grocery stores aren’t allowed to sell certain products, like bread for example, and staples . . . Those are things that I think people are less and less tolerant about.
“The other thing I can tell you is there are a lot of pieces of land owned by grocers all over the place that have been basically sitting there idle, vacant, and nothing is going on and they just basically bought land to make sure that the competition doesn’t come in and buy that property and build a new store. I’ve always believed that urban Canada, people in big cities, we’re fine. We have options. But it’s in rural communities where often you basically have one option unless you want to drive half an hour.”
The federal government’s main policy to tackle this is a program called Nutrition North Canada that was launched in 2011. The program pays $131 million a year in subsidies to retailers based on the weight of eligible food they ship by air to communities without year-round surface transportation.
Subsidy rates vary based on the remoteness of communities as well as item type. For example, milk receives the highest subsidy, orange juice receives a lower subsidy and potato chips receive no subsidy.
Tables of pre-prepared food hampers sit ready inside the Qajuqturvik Community Food Centre in Iqaluit on March 15, 2023. THE CANADIAN PRESS/Dustin Patar
Under the program, retailers sign an agreement promising to pass subsidies on to consumers in a process known as a “pass-through.” This means that if the government pays a retailer $1 to ship an item, the price of that item should be $1 lower for consumers.
To determine how much of the Nutrition North Canada subsidy was passed on to consumers, our recent study examined how much subsidy increases in October 2016 and January 2019 lowered food prices. We controlled for factors like food inflation, energy prices and high freight/operating costs.
We found that for every dollar paid to a retailer to reduce shipping costs, the prices paid by consumers fell by only 67 cents. When we considered communities with a single grocery retail store affected by the January 2019 subsidy increase, we found that an extra dollar paid to retailers reduced consumer prices by only 26 cents.
Our main finding — that the subsidy was not fully passed-through to consumers — remained unchanged when we considered only the most perishable goods, or accounted for economies of scale in shipping and other community characteristics.
The North West Company owns and operates a number of grocery stores in Northern Canada, including NorthMart. THE CANADIAN PRESS/Sean Kilpatrick
Better addressing the problem
Why do existing accountability measures fail? First, it’s difficult to measure subsidy pass-through and retailer margins, especially with traditional audits. The contribution of retailer profits to high food prices today is still being debated.
Second, it may be even harder to punish retailers in this setting. A substantial share of the subsidy still goes to consumers, so punishing retailers by removing the subsidy would make food even more expensive.
How, then, can the federal government better address the problem of food affordability and insecurity in remote northern communities? Recent additions to the Nutrition North program, like the Harvester’s Support Grant, are a response to communities demanding more control over their food systems. This could involve subsidizing traditional hunting activities and funding community-led initiatives to support those in greatest need.
While these measures are promising, they are unlikely to replace the importance of store-bought food shipped by air. Measures to increase competition may help since retailers in these communities face far less competition than in the rest of Canada, but it’s still challenging for small, remote communities to have substantial competition.
A simple and more market-friendly approach would require retailers to publish the price of all subsidized goods online. Greater transparency about food prices would help communities and their leaders hold retailers accountable in the court of public opinion, and make analyses like ours easier to conduct. While not a standalone solution for food affordability and insecurity in these communities, it could ensure more of our tax dollars go to support those in need.
By Nicholas Li, Assistant Professor, Department of Economics, Toronto Metropolitan University and Tracey Galloway, Associate Professor, Department of Anthropology, University of Toronto
Craig and Johanne Marcotte, Executive Vice President, Portfolio Management, Retail at JLL Canada, discuss property management trends, emphasizing the importance of a global network, sustainability, and adapting to changing tenant expectations and technology. They delve into JLL’s approach to navigating these trends, offering insights for property owners and investors.
Johanne Marcotte
Property management has evolved from merely overseeing spaces to curating experiences, with a focus on health and well-being. Johanne highlights the challenges posed by regulatory variations in sustainability efforts. She emphasizes the need for a nuanced approach, prioritizing people, technology, and sustainability to excel in property management.
JLL’s extensive expertise and global network enable them to deliver exceptional results for their clients, promoting trust, transparency, and execution.
The Interview Series audio podcasts by Retail Insider Canada are available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly audio podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.
Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!
Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 48 hours.
National coffee brand Second Cup has launched a new look as it starts to add more stores in Canada that are combined with other brands such as Chocolato, Pita Pit and Freshii.
Sam Wadera, Vice-President for the Foodtastic umbrella of brands, said the Second Cup’s core business is still coffee but the menu has expanded as well.
Sam Wadera
Second Cup has 181 locations in Canada with six of them opening this year.
“We didn’t open anything in 2022. Coming out of the pandemic was a challenge for us,” said Wadera. “I have four more on my list to open and I’m pretty sure they’ll open.
“I believe after every couple of decades we all need a refresh look. I wanted to bring some colours and cleaner inviting finish lines to our new look.”
Image: Second CupImage: Second Cup
Edmonton entrepreneur Ravi Prakash Singh recently opened two Second Cups in Calgary – 2803 17th Ave SW and 7 Mahogany Plaza SE.
“I’ve changed the look of Second Cup. There’s a new look now. I’ve changed the branding. I’ve also changed or revolutionized the offering since I’ve come in (August 2022) based on my past experiences and what I have done in my life. So there is a new menu when it comes to liquid and food items available now in Second Cup,” said Wadera.
The Chocolato brand, a sister and complimentary company to Second Cup, is primarily based in Quebec. Wadera said there are 29 locations for Chocolato with seven which have opened this year and four more still to open.
Second Cup Mississauga (Image: Foodtastic)Second Cup Mississauga (Image: Foodtastic)
He said the potential for growth of both these brands in the next fiscal year is 14-plus for Chocolato and 30-plus for Second Cup.
“Second Cup and Chocolato are sister brands at Foodtastic. These two brands are the perfect complement to each other. Second Cup is the largest Canadian specialty coffee retailer. Our cafés offer a wide selection of brewed specialty coffees, hot and cold espresso-based beverages, smoothies, specialty teas, hot chocolates, premium baked goods and more,” said Wadera.
“Chocolato is a cross between a chocolate shop and dairy bar. Chocolato invites you to a world of chocolate, desserts including soft-serve ice cream and dips. Enjoy a soft-serve cone with your choice of 100% pure chocolate dips. Second Cup’s café environment and menu are an ideal pairing with Chocolato. Our guests can come and enjoy a handcrafted beverage and a dipped cone or other decadent dessert.”
Second Cup Café at Union Station Bus Terminal (Image: Foodtastic)Second Cup Café at Union Station Bus Terminal (Image: Foodtastic)
Foodtastic has a handful of locations that are a combination of Second Cup and Chocolato with more locations coming for that concept.
Foodtastic, founded in 2016, has established itself as a giant in the Canadian restaurant industry. Over the past few years, the cumulative sales of all Foodtastic restaurants have grown by leaps and bounds, from $50 million to over $1.15 billion. Today, Foodtastic manages over 1,100 restaurants and continues to expand at a rapid pace.
Its brands also include Milestones, Freshii, Pita Pit, La Belle & La Boeuf, Shoeless Joe’s, Quesada, Rôtisseries Benny, Fionn’s, Enoteca Monza Pizzeria Moderna, Souvlaki Bar, Rôtisseries Fusée, Rôtisseries Au Coq, Copper Branch, Nickels Deli, Bacaro, L’Gros Luxe, Carlos & Pepe’s, Big Rig, La Chambre, Tommy, and GattoMatto.
“Obviously, standalone Second Cup is very important. We’re doing some drive-thrus as well. But we’re doing combos also. (Recently) I opened up one in a very busy area of downtown Toronto. It’s a Second Cup and a Pita Pit. This is right across from the Scotia Arena. A very busy spot,” said Wadera.
“So we’re doing some of these combos. Adding Second Cup to Freshii. Lot more going on when it comes to Second Cup.”
Quebec-based retailer Bath Depot expanded its footprint into Atlantic Canada in the summer and now has plans to grow the brand in Western Canada as well.
Marc Nadeau, the company’s president, said the plan is to keep up the company’s schedule of opening more locations out West.
Marc Nadeau
“Bath Depot, I would say in the last 10 to 12 years, we’ve been opening stores from four to eight stores per year,” he said. “Naturally with the COVID time it just got us a little break but we came back. We continued our opening.
“The idea is to now go West and make sure that we can cover that market in a very short time.”
Image: Bath DepotImage: Bath Depot
Nadeau said the retailer is planning to open in Winnipeg in the first quarter of 2024 and after that it will look at expansion to Calgary and Edmonton.
“Technically the plan is to get another extra 24 stores off the pipeline off the West market,” he said.
The two stores that opened in Moncton and Halifax brought the overall count of stores to 42.
“Atlantic is a little bit smaller. I would say one or two more locations but no more than that.”
The retailer specializes in bathroom and kitchen products under one roof.
Bath Depot entered the Quebec and Ontario markets in 2008. Its founders, the Nadeau brothers Marc, François, Guy and Gilles, started out 20 years ago in the plumbing distribution industry.
Image: Bath DepotImage: Bath Depot
The first location was on the North Shore of Montreal in Blainville. There are 20 stores in Quebec and 20 stores in Ontario, with about 10 stores in the Greater Toronto Area.
“At the same time (of expanding to Atlantic Canada), what we’ve done is integrate our new lighting business. Bath Depot purchased a big wholesaler in the lighting business in order for us to integrate now a lighting division in these stores,” said Nadeau.
“Basically we’ll be integrating the lighting product in all of our stores in a very short time.”
“By offering everything you need for your bathroom or kitchen renovations under the same roof, Bath Depot positioned itself in a niche that had yet to be developed. There was in fact a whole new market to be filled by Bath Depot between big-box retailers and high-end boutiques. With its experience and expertise, the Nadeau family secured the company’s position and its success has been growing ever since. The company’s mission: offer consumers beautiful and trendy products at affordable prices, without compromising on quality,” says the company.
“Bath Depot sets itself apart with its exclusive products and by being its own manufacturer, distributor and retailer. This way, customers can benefit from personalized, fast and efficient service, plus highly competitive prices.”
Image: Bath Depot
In addition to its physical locations, the company offers an online store with thousands of products to cater to the diverse needs of its clientele.
Over the past 15 years, Bath Depot has continually evolved to meet the changing needs of its customers. It expanded its product range by adding a category of lighting, thus providing an even more comprehensive selection for bathrooms and kitchens. Also, it expanded its logistics centre, incorporating new systems to improve efficiency.
Books in Res by Dalhousie University (Image: The Dalhousie University Bookstore)
When discussing back to school shopping, focus is usually directed at public school students while university students can be forgotten, especially those making the transition from high school to first year. Lisa Hutcheson, a Retail Strategist and Managing Partner at J.C. Williams Group, Jeff Wilson, a Residence Life Manager at Dalhousie University, and Lesley Hawkins, Vice President, Retail, adidas, discuss new trends, residence living, and future possibilities for back to school shopping for university.
What Students Are Buying
Compared to back to school shopping for public school students where the focus is directed at backpacks, university students are more focused on apparel, lifestyle products, and residence items. For this year, Hutcheson says there has been an increased interest in apparel compared to previous years.
Lisa Hutcheson
“From a retail perspective we are definitely noticing more focus particularly on apparel and shoes. People have been either working or doing their education hybrid, and students spend a lot of time at home and completing their high school mostly at home so this is an opportunity for students. First year is always an opportunity for students to express and discover themselves,” says Hutcheson.
Image: The Dalhousie University Bookstoreadidas The Well (Image: adidas)
Hawkins also noticed an increase of students leaning towards apparel compared to previous years, with a main focus on purchasing the adidas lifestyle products such as its Original Line.
“We certainly saw there were a lot more people out in retail this year versus last year, which is really good given that last year it was quite good as everybody was coming out of Covid. We found more people were shopping for apparel than they were last year and there was a real thirst for our Originals Line, which is our lifestyle offering,” says Hawkins.
Hawkins says the Originals Line is performance wear blended with lifestyle so students can wear its products not just for workouts, but for daily wear which makes it easy for students. In terms of footwear, Hawkins says anything based around soccer culture has been popular such as the brands Stan Smith, Samba, Superstars, Gazelle – all are adidas Originals.
Lesley Hawkins
“People want to shop for the Originals. Once again, it is more of that lifestyle, look, and feel. I can say that as a mom who just had to drop her daughter off for the first year of university, I can definitely say apparel seems to be so much more of what they are actually consuming. Students are very much focused on the product they are taking to school that needs to meet multiple needs – it is not just here is what I am going to wear to the gym and here is what I am going to wear in class, it is a fixated product they can wear that really cuts across many different activities,” says Hawkins.
Back To School at adidas Halo Store at CF Toronto Eaton Centre (Image: Dustin Fuhs)adidas Halo Store at CF Toronto Eaton Centre (Image: Dustin Fuhs)
In addition to the adidas Originals Line, Hawkins says it also provides options for students to customize their products such as backpacks, apparel, and even footwear.
“We have something for everybody in that it is accessible, we have a depth of colour, variety of sizes – and that really makes a difference. And for us, it is making sure we have campaigns around it that give a showcase of what the latest trends are in terms of apparel and footwear to make it easier for students to know what exactly they want and could be wearing,” says Hawkins.
“Students Embracing The School”
Image: The Dalhousie University Bookstore
Wilson, who has been a Residence Life Manager at Dalhousie University for several years has noticed that this year, the first thing students did was head towards the campus bookstore to purchase Dalhousie branded apparel.
Jeff Wilson
“I noticed a lot of students moving in and then going straight to the bookstore to buy something saying Dal on it. I am sure this was always happening, but it just seemed super obvious this year that while their parents, guardian, or whoever was dropping them off was still here and paying for things – they dropped their stuff off and went straight to the bookstore,” says Wilson.
Wilson said students were coming back with products such as sweaters, rugby shirts, hats, and shirts – anything that had the Dal name and logo on it. Wilson says school branded items are popular as students have a “desire to be associated” and don’t want to stand out by not having Dal clothing and Hawkins says it increases a sense of community.
The Bookstore at Carleton University
Hawkins experienced the need of school branded clothing when she dropped off her daughter to university this September.
“Once we got there and we were welcomed to the university, the first thing Carleton did was give her a Ravens sweater which was great as she immediately was part of a team and community.” says Hawkins. “But there have been subsequent visits to the bookstore to get more Carleton Ravens product, as apparently you can never get enough!”
Dormitory – What Students Are Bringing
Image: Dalhousie University
Wilson says students are purchasing the usual dorm items such as lamps, battery operated lights, fans, and decorations to make their rooms feel more like home, but has noticed more students making their beds more comfortable. Another item that is popular, although not needed, is mini fridges. Wilson says students tend to think they will need them, but are often not used and get thrown out at the end of the year.
“I think the comfort of the bed is usually a big concern for people. I am noticing more people arriving with things to make their bed more comfortable whether it be mattress pads or foam toppers on top of whatever decorations make the students feel comfortable and happy. If it were me and I was coming back, I would make sure I had a fan and I would make sure I made the bed as comfortable as possible,” says Wilson.
On the technology side, Wilson says the increase of streaming services in residence has caused a decrease in big technology items.
“No TVs, no printers, and no big desktop computers – those big technology things we do not see anymore which is making move-in day a lot easier for students,” says Wilson. “No one is really bringing TV’s, or it is certainly becoming more rare. You might have people who play video games that are still bringing TVs, but almost no one is moving in with a TV anymore. It seems like everyone is coming in with a laptop or tablet,” says Wilson.
The Bookstore at Carleton University
As for what to bring, Hawkins says when she was helping her daughter get ready to move, Carleton University made it easy by providing a checklist of what is needed. After arrival if anything was missing, Hawkins says it was easy to find later on.
“The school did a pretty good job of helping the parents and students as best as possible. In terms of if you needed to get something, it was easy as the school directed you in the right way and there was no challenge in finding what you needed,” says Hawkins.
Wilson and Hutcheson say although schools try and make it easy for students, there are still ways for retailers to be more involved on campus.
Missed Retail Opportunities on Campus
Image: The Dalhousie University Bookstore
At Dalhousie University, Wilson says students can easily purchase items from the bookstore and have it delivered to their residence for move-in day – but more can be done to make shopping easier to access for students, not just for move-in but throughout the year.
Both Wilson and Hutcheson say one way retailers can make it easier would be to have pop-up shops on campus. One retailer, Samsung, Wilson said had a pop-up on campus during the move in days at Dalhousie and was successful.
“For the first time I noticed Samsung had a huge presence on campus selling phones and tablets.They rolled in a trailer and then it folded down, it was like a pop up Samsung store. They had an army of people here trying to get people to their little social media booth where they would do a photoshoot, product testing, and they were giving away hats and shirts. Some phone providers like Telus are around, but this was the first technology retailer doing this,” says Wilson.
Wilson said just on one of the move-in days there were around 6,000 people wandering on campus – a missed opportunity for retailers.
For new students, it can be overwhelming moving into residence, let alone trying to find your way in a new city. For those who fly in, it can be difficult to shop, especially if they don’t have access to a car. Yes, students can purchase products online, but is there a better way for students to get what they need? Wilson and Hutcheson say retailers could be more involved by having pop-up stores available or even kiosks where students and parents can purchase and have the product delivered later.
“In the first year, parents are sending off their kids and they are going to be living away, and they just seem to want to make sure the kids have everything that they need – so there is definitely more spending and some retailers could really optimize on this,” says Hutcheson .
Wilson says although it can be difficult to partner with the university, it can be easier for retailers to get permission from the student union.
Image: The Dalhousie University Bookstore
Wilson and Hutcheson provided an example of retailers that would be beneficial for pop-ups, which could include Ikea where they sell their student package or even to help students order online, Sephora, Best Buy, and athletic stores like Lululemon. Additionally, Hutcheson says retailers like Ikea and Amazon could partner with universities to provide dorm room essential packages and curate products specifically for first year students. By doing this, it not only makes products accessible, but also introduces brands students may not be aware of if they are international students.
“It is about making it easy, accessible, and thinking about what students want and I do think there is going to be opportunities to do pop-ups within the schools and as the textbook business changes, the schools will have some extra space and there would also be an opportunity for the schools to revenue share as well,” says Hutcheson. “I think that we are very aware of elementary and high school students, but nobody really targets the university students. There are a lot of them out there and a lot of them living away, so they need furniture, home decor, and things that are inexpensive that are still fun and show their personality and I think it is an overlooked market.”
Harry Rosen flagship store at 82 Bloor Street West in Toronto. Photo: Craig Patterson
Toronto-based menswear retailer Harry Rosen is shaking things up by bringing in new luxury brands and offerings catering to a more casual shopper. It’s part of a move for the upscale retailer to maintain market share while also looking to attract younger consumers at a time when men are dressing down.
Over the past couple of weeks, the retailer has brought in a range of new brands not previously carried in the store. That includes some big names such as Balmain, Marni, Jil Sander, Kenzo, Maison Margiela, MM6, and an exclusive partner collection of Zegna X The Elderstatesman has also been added. And last week, a splashy party and fashion show in Toronto signalled the “New Wave” as Rosen is calling it, ushering in a ‘new era’ for the retailer which is targeting fashion-forward shoppers seeking more casual and contemporary styles of clothing, footwear and accessories.
Harry Rosen’s President, Ian Rosen, said in an interview that the move to bring in more contemporary brands is to address shifting consumer tastes to more casual clothing after the panemic. And with that, Harry Rosen is buying the ‘world of’ for some of these brands, thus carrying a wide product range for each including ready-to-wear, accessories and in some cases footwear.
Men’s contemporary area on the street level of Harry Rosen, 82 Bloor Street West in Toronto. Photo: Craig Patterson Men’s contemporary area on the street level of Harry Rosen, 82 Bloor Street West in Toronto. Photo: Harry Rosen
So far, three of Harry Rosen’s top stores are carrying the contemporary luxury lines. That includes the multi-level flagship store at 82 Bloor Street West in Toronto, as well as the store at Toronto’s Yorkdale Shopping Centre and the location at CF Pacific Centre in downtown Vancouver. Ian Rosen said that some of the contemporary designer collections will be rolled out in other Canadian markets where there’s demand and where it makes sense.
Ian Rosen
The main floor of the Bloor Street Harry Rosen store recently saw some updates, including an aesthetic refresh for the new youthful collections which includes a grey and silver look that replaced a more traditional wood interior.
Multi-brand retailers nearby in Bloor-Yorkville also are known to carry expansive assortments of luxury casual menswear. Across from Rosen’s 50,000 square foot Bloor Street flagship is the 16,500 square foot Holt Renfrew Men’s store. For several years, Holt Renfrew Men has been focusing on casual but luxurious men’s fashions while at the same time carrying less suiting when compared to decades past. Holts has developed a substantial following with its mix of brands which are carried both in wholesale areas as well as, in some instances, concession spaces.
Harry Rosen at 82 Bloor Street West and neighbour Holt Renfrew Men, at 100 Bloor Street West. Holt Renfrew Men will relocate back into the 50 Bloor Holt Renfrew flagship store in late 2024. Photo: Dustin FuhsWindow display at Harry Rosen, 82 Bloor Street West in Toronto. Photo: Harry Rosen
Carolyn Wright, SVP of Product and Planning at Holt Renfrew, said in an interview that the retailer is beefing up its menswear business with new brands and offerings, many of which lean towards more casual dressing. New brands are being added while some product assortments are growing to cater to customers seeking the latest styles for edgy names such as Amiri, which is said to be selling very well in the Canadian market. Last week, Holts launched a men’s event in its Vancouver store which is said to be the top location in the chain in terms of sales.
Carolyn Wright
Holt Renfrew will be relocating its men’s store back into 50 Bloor Street West next year, after opening a standalone men’s store in 2014 across from Rosen’s at 100 Bloor Street West. The new men’s store will be on the third floor of the 50 Bloor building, and the exit of Holts Men from the corner of Bloor and Bellair streets means that Harry Rosen will again dominate the intersection in terms of menswear when all is said and done in early 2025.
Harry Rosen faces some steep competition in the contemporary/casual men’s space in Toronto and Vancouver. In the Toronto market, multi-brand retailers such as CNTRBND have been selling high-end casual men’s fashions for years, and in 2019 Miami-based The Webster entered the ring with a location on Scollard Street in Toronto. Several employees have told Retail Insider that menswear sales at The Webster have been very strong as of late, with men buying items for special occasions with less consideration for price.
Men’s Jil Sander fashions and shoes at Harry Rosen, 82 Bloor Street West in Toronto. Photo: Craig Patterson Window display at Harry Rosen, 82 Bloor Street West in Toronto. Photo: Craig Patterson
New York City-based Kith also recently opened in Toronto on Yorkville Avenue, adding competition to the market with a range of edgy fashions and footwear. And Toronto-based TNT-The New Trend is also amplifying its casual designer men’s offerings as the retailer prepares to open an expanded 20,000 square foot flagship store at Yorkville Village in Toronto. And brands themselves are opening stores more now than ever while also launching e-commerce sites in Canada. The added competition means that Harry Rosen will have to carve out a niche and build further consumer awareness in order to attract new clients for its casual offerings. At the same time, Ian Rosen said that existing clients have been asking for more casual styles, and existing relationships and enhanced customer service may ultimately lead to success with the new brand venture.
Harry Rosen lost some competition when Nordstrom exited Canada earlier this year, and could see even less competition if Saks Fifth Avenue exits the Canadian market in the coming months. Saks’ Calgary store at CF Chinook Centre has been downsized significantly with menswear becoming nearly non-existent, while menswear offerings at the CF Sherway Gardens Saks were moved upstairs from a much larger dedicated area next to a now shuttered Saks food hall. Saks has also introduced less pricey brands into its downtown Toronto flagship store, which a few weeks ago lost its Prada bag/accessory concession on its main floor.
Harry Rosen, 82 Bloor Street West in Toronto. Photo: Craig Patterson
Another trend impacting multi brand retailers is brands opening their own stores. In terms of the new brands Harry Rosen has brought in, none of the brands operate standalone stores in the Canadian market. That could change, however, if Balmain were to expand into retail — there have been rumblings that Balmain could open at Toronto’s Yorkdale Shopping Centre, although nothing is confirmed. And prior to the pandemic, Toronto-based CNTRBND was planning to open a Margiela boutique space at Yorkdale, and those plans have since been shelved.
Nevertheless, competition is fierce in the contemporary men’s brand space in Canada, with e-commerce also taking a percentage of sales from local and global players. Montreal-based SSENSE carries a wide range of trendy men’s brands on its website as well as in its multi-level store in Old Montreal, and other big online players are also looking to grab market share of menswear in Canada. Resellers are also showcasing streetwear and other casual men’s brands on websites and in stores, with some buyers looking for brand names at a reduced cost by purchasing second-hand.
Is a trend developing in the retail sector toward the return of loyalty program alliances?
“For a while most new loyalty programs went in-house but we may be seeing a new trend. Canadian customers are hurting financially and retailers need to offer even more value that is easy to convert into savings,” said Bruce Winder, Author of RETAIL Before, During & After COVID-19 and President, Bruce Winder Retail.
Bruce Winder
Recently, it was announced that Canadians can now earn Scene+ points at Home Hardware Stores Limited’s close to 1,100 locations across Canada and at homehardware.ca using their Scene+ Loyalty Card and the Scotiabank® Scene+ Visa* Card.
Also, AIR MILES announced the first of several program enhancements including a new partnership with leading Canadian value retailer, Dollarama.
Dollarama (Image: Barrhaven BIA)
“This piqued my interest. If you go back to the loyalty space about 20 years ago, even 15 years ago, a lot of programs were sort of tied with a coalition, like a network. AIR MILES and things like that,” said Winder. “Then there was a trend where companies started to kind of create their own programs so that they could harvest the data directly and control the relationship with the customer.
“But I’ve seen recently two data points where maybe we’re starting to see a bit of a rebirth and a re-linkage of coalitions.
“I read somewhere that Canadians on average like 16 loyalty programs they’re involved in. And I also read somewhere where they’re sitting on $15 or $16 billion worth of points that they’re not using.”
Because of the tough economic times and the fact that consumers may be holding back on spending, retailers are wondering how they can add value for a consumer who is really stretched.
“I’m wondering if companies are starting to see the benefit again of partnering with larger programs that offer multiple retailers so that they can earn easier and quicker and then burn off the points easier and quicker to kind of keep them in that loyalty cycle,” said Winder.
LEFT TO RIGHT: Clinton Braganza (SVP Customer Loyalty & Partnerships, Scotiabank), Kevin Macnab (President & CEO, Home Hardware Stores Limited), Tracey Pearce (President, Scene+). (CNW Group/Home Hardware Stores Limited)
Winder said 60 per cent of consumers will change where they shop to try to maximize points.
“It actually works. It changes consumer behaviour,” he said. “Especially now because I think consumers are tuned in to look at savings right now. I’m sure there’s a lot of consumers out there who probably won’t buy much unless it’s on sale right now. Or there’s some sort of deal.
“Loyalty works. It’s better to use loyalty than just drop your prices. So instead of saying okay let’s drive some traffic, let’s drop our prices 10 per cent this week, that’s a very expensive way to draw traffic and to draw a conversion. It’s cheaper and has more stickiness to use a loyalty program instead.
“It’s less expensive and it’s actually more engaging and it has more of a long-term impact. In other words, the customer will keep coming up. What if you drop your prices 10 per cent this week and then your competitor drops 10 per cent next week, well the consumer has no problem jumping back and forth to retailers. But if you offer value in a loyalty program the way that they get the value is by continuing to shop at your store. So you kind of keep them captive within at least the network. It’s a smarter approach in an economic downturn instead of just relying on price. Relying on loyalty is cheaper and smarter to drive people in your stores and keep them in your stores.”
Winder said one of the reasons behind all the unused loyalty points is that consumers have signed up to a lot of independent one store programs. The points just sit there.
“If you have consumers that are sitting on a pile of points and not using them, that means your loyalty program is broken,” he said. “Because what you want to do is you want to have consumers every week or every month earning points and burning points, earning points and burning points.
“And if you stop the burning side, in other words the usage, then you’re going to stop earning. It might also be an indication too that the rewards you’re offering aren’t very appetizing. They’re hard to claim or you need an enormous amount of points to claim them or they’re rewards that people just don’t want. So it’s a bit of a telltale that your rewards program is broken when you’re sitting on too many points.”
