Home Blog Page 615

Small Retailers in Canada Face Revenue Decline Due to Big Business: CFIB Report Urges Consumers to Rethink Local Shopping Habits [Video Interview]

By
Mario Toneguzzi
-

A majority (78 per cent) of small retailers say they’re losing revenue and customers to big businesses, according to a new report by the Canadian Federation of Independent Business (CFIB), which reminds consumers to challenge the way they think about shopping local.

The report, created in partnership with Scotiabank, is entitled Small Business, Big Impact: Small Retailers’ Local Contributions and reveals that over nine in 10 Canadians (92 per cent) said they love having small businesses in their community, but only 13 per cent do most of their shopping at small businesses. 

Emily Boston

Instead, most people (87 per cent) reported doing the bulk of their shopping at large multinational retailers, either in-store or online.

“Even a small change in spending habits will have a positive impact on local economies. Small businesses are the cornerstones of our communities. They hire and train the next generation of leaders, offer unique products and personalized services, and foster a strong sense of community,” said Emily Boston, a Policy Analyst at CFIB and the co-author of the report. “We encourage everyone to prioritize shopping local not just during Small Business Week, but throughout the whole year as well.”

“Despite the many contributions that small businesses make to their communities, most consumers don’t support them on a daily basis even though they recognize the importance of shopping local. There are many misconceptions among consumers, including that small retailers and multinational businesses contribute to local economies equally. In fact, when you shop at a small, independent retailer, six times more of that money stays in your local economy than when you shop at a large multinational retailer,” said Taylor Matchett, CFIB’s senior research analyst and co-author of the report. “Small businesses are also more price competitive than you think. Changing your current habits does not have to come with a higher price tag or less convenience.”

Taylor Matchett

The report found that nearly all small retailers (97 per cent) said they contribute to their community or province in at least one way— the top ways they do so include donating to charities and causes (74 per cent), sponsoring local events and teams (56 per cent) and providing job opportunities for youth (55 per cent).

In this video interview, Boston discusses the report and its impact on the small business community in Canada.

https://www.youtube.com/watch?v=ehVxoJdwizQ

The Video Interview Series by Retail Insider is available on YouTube.

Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.

Interviewed this episode:

Like, Share and Subscribe to Mario Toneguzzi on YouTube!

Follow Mario:

Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.

Follow Retail Insider:

Share your thoughts!

Square Report Reveals that Gen Z Canadians are Leveraging Tech for Entrepreneurial Success [Interview]

By
Mario Toneguzzi
-
Image: Square

Technology is enabling more Generation Z Canadians to become successful entrepreneurs in the country.

A new report by technology company Square,  Gen Z: A New Age in Canadian Entrepreneurship, found that Gen Z entrepreneurs in Canada believe they have better opportunities than previous generations.

Key findings from the report include:

  • The top-three reasons they are more entrepreneurial are due to social media (40 per cent), young and successful influencers (40 per cent) and greater access to technology (36 per cent);
  • Three in four believe Gen Z is more open to alternative paths to success instead of a corporate 9–5 job; and
  • Being one’s boss is a top motivator for 40 per cent of Gen Zers wanting to start a business.

Despite facing greater barriers to entry into the economy, Generation Z is embracing entrepreneurship in Canada with an optimistic outlook. The report is based on the findings of a survey conducted with 400 Canadians aged 18–27 who own a business or are in the process of starting one, conducted in collaboration with Leger.

Image: Square

The report found that technology is a big factor in growing these businesses from part to full time, with 79 per cent of respondents saying they consider technology tools, such as payment processing, essential to starting a business. 

More than a third (36 per cent) attribute Gen Z’s entrepreneurial nature to greater access to technology and related tools. But they still lack comfort with some of the financial tasks required to run a business: 86 per cent of respondents have at least one finance-related task they feel ill-equipped to handle, with more than one-fifth (22 per cent) struggling with knowing how to secure funding. Some (21 per cent) also admit to difficulties with budgeting and cash flow management, and another 19 per cent find it difficult to manage invoices.

Image: Square
Roshan Jhunja

“There can be many unknowns when starting a new business, but the right tools and financial services can help,” said Roshan Jhunja, head of retail at Square. “Generation Z is one of the most innovative and entrepreneurial demographics to date and Square is committed to empowering them by offering a comprehensive suite of hardware, software and financial services to help them start, run and grow their businesses.”

Some other key findings from the report include:

  • 56 per cent of respondents believe they have better economic opportunities than the previous generation. A far larger percentage of men (60 per cent) than women (49 per cent) shared this optimistic outlook;
  • When it comes to entrepreneurial role models there is a significant gender divide, with 34 per cent of male respondents indicating they looked up to Elon Musk the most. Women had far less interest in Musk (14 per cent), favouring entertainers-turned-moguls Selena Gomez (25 per cent), Ryan Reynolds (18 per cent) and Rihanna (18 per cent);
  • 51 per cent of women indicated that growing a customer base was the number-one success factor, compared to only 38 per cent of men. Women were also far more concerned with customer satisfaction (39 per cent) than men (29 per cent).
  • 77 per cent believe Gen Z is more open to alternative paths to success instead of a corporate 9–5 job than previous generations.
Jasmine Linton on The Great Canadian Baking Show (Image: CBC)

Jasmine Linton, who owns DIBS Scratch Bakery, in Richmond Hill, Ontario, agrees.

“We’re not only more open to alternative paths, but in many cases, I think we actually prefer it,” said Linton. “Being able to do my own thing on my own time, rather than being confined to 9–5, is part of what led me to start my own business.”

Linton is, however, in the minority: 25 per cent of Gen Z entrepreneurs consider their business a full-time endeavour while 53 per cent see their businesses as side hustles.

Image: Dibs Scratch Bakery
Image: Dibs Scratch Bakery
Future Dibs Scratch Bakery in Richmond Hill, Ontario (Image: Dibs Scratch Bakery)

To learn more about how Square enables commerce in person and online, supports new revenue streams, streamlines operations and helps business owners better manage their cash flow, visit Square.ca.

Methodology

Leger conducted an online survey of 400 Generation Z Canadians aged 18–27 who own a business or are in the process of starting a business soon. The survey was completed between March 30 and April 15, 2023, using Leger’s online panel. No margin of error can be associated with a non-probability sample (i.e., a web panel in this case). For comparative purposes, though, a probability sample of 400 respondents would have a margin of error of ±5% 19 times out of 20.

Square Partnered with Retail Insider for this article.

Luxury Wellness and Social Club AVANT by Altea Active Opening in Former Nordstrom Rack Space at Bloor and Yonge in Downtown Toronto

By
Craig Patterson
-
1 Bloor Street East. Photo supplied

An upscale wellness and social club will be opening on the upper level of the former Nordstrom Rack space at the southeast corner of Bloor and Yonge Streets in downtown Toronto. The new initiative by Altea Active will be called AVANT, and it will serve an affluent demographic that lives in the area. 

AVANT by Altea Active will occupy about 31,000 square feet in total, with most of that space being the upper level of the Nordstrom Rack store that shut in May of this year, along with all Nordstrom stores in Canada. AVANT will have a dedicated street-facing entrance on Bloor Street in a building owned and managed by First Capital REIT at 1 Bloor Street East. 

The fitness concept, set to open in early 2025, will feature industry-leading studio fitness offerings, state-of-the-art strength and cardio equipment, private and small-group training options, and an array of high-end amenities. Catering to an upscale demographic, Altea Active said in a statement that AVANT will take a hospitality-forward approach in the new facility with “unrivalled amenities and premium offerings” in a space conceptualized by Chapi Chapo Design. Included will be the “comforts found in five-star hotels and urban oases around the world.” 

1 Bloor East (Image: Dustin Fuhs)


Altea Active says that it is known for “customizing clubs to the demographic of its host neighbourhood,” and the luxury positioning of AVANT makes sense. The high density area nearby includes a considerable number of high-income households, and the population is growing rapidly as new apartment condominium towers are built. 

AVANT will compete particularly with two other high-end fitness concepts in the neighbourhood, including an Equinox gym at Yorkville Village (formerly Hazelton Lanes) and boutique fitness concept Barry’s Bootcamp, located at the back-end of 100 Bloor Street West. The Bloor-Yorkville area is otherwise highly saturated with fitness facilities that include three GoodLife gyms (including a recently renovated Manulife Centre location) and boutique fitness concepts such as F45, Orangetheory and others. 

The 1 Bloor Street East retail podium is at the base of one of the tallest residential buildings in Canada. In May of 2018, Nordstrom Rack opened a 38,000 square foot store in a two-level corner space where it remained for almost exactly five years. US-based restaurant chain Chick-fil-A occupies a space in the podium, and The Ballroom bowling/entertainment concept will be opening in a former McEwan grocery store on the lower level of the building. 

Altea Active Toronto (Image: Altea Active)

Altea Active has signed a long-term lease with First Capital REIT for the new AVANT location at Yonge and Bloor. “With the signing of the long-term lease, the Altea team looks forward to serving the Yorkville  neighborhood for decades to come,” said David Wu, Co-Founder and President of Altea Active in a statement. 

Mackenzie Kohl of Avison Young worked with Altea Active in negotiating the lease deal with landlord First Capital Realty.

Michael Nolan, Co-Founder and COO of Altea Active said in a statement, “We couldn’t be more excited to introduce Yorkville to AVANT, and to deliver a brand-new, ultra premium experience to the community. This evolution is a major milestone as we continue to elevate our member  experience and push the boundaries of what a fulsome wellness and social club should be with  premium amenities and luxury hospitality infused at every touchpoint.” 

“We are excited to join this project, fusing our global expertise in luxury hospitality design with the unique essence of the Yorkville community to craft something extraordinary,” states Boris Mathias, Partner & Co-Founder of Chapi Chapo Design, “drawing inspiration from the world’s most prestigious hotels and luxury experiences”.

Youtube video

Eric Sherman of First Capital REIT negotiated the lease deal on behalf of the landlord for AVANT prior to being promoted to a new role. “We are incredibly excited to be working with the Altea team to deliver a revolutionary concept in the luxury fitness and wellness space that we are confident will be embraced by the Bloor-Yorkville community,” said Sherman, who is now Head of National Operations at First Capital REIT. “We continue to enhance our neighbourhood portfolio with best-in-class brands and operators and Altea certainly aligns with this strategy.”

Altea Active opened its first location in November of 2019 in Winnipeg, spanning about 80,000 square feet. A second location, spanning about 89,000 square feet, opened in Toronto’s Liberty Village in March of 2022. A new 43,000 square foot location is scheduled to open next month in Vancouver’s Mount Pleasant area. 

Canadians Anticipate Record Holiday Spending with a Focus on Savings, According to RCC X Leger Holiday Shopping Survey

By
Mario Toneguzzi
-
CF Toronto Eaton Centre on Saturday, November 26, 2022 (Image: Dustin Fuhs)

Canadians are projected to spend an unprecedented $898 this holiday season with 88 per cent of them seeking ways to make their budgets go further, according to the 6th annual RCC X Leger Holiday Shopping Survey from the Retail Council of Canada (RCC).

The survey was conducted by Leger. 

Diane J. Brisebois

“Even with prevailing financial concerns on Canadians’ minds, the desire to connect with loved ones and shop and share gifts and experiences remains undeterred,” said Diane J. Brisebois, President and CEO, Retail Council of Canada. “Retailers across the nation recognize these needs and will be providing Canadians with unique holiday shopping experiences, bolstered by exceptional products and engaging, value-added promotions.”

Key findings from the report include:

Landsdowne Centre (Image: Colliers)
  • Canadians predict they will spend an average holiday expenditure of $898, a rise from last year’s $782. A substantial 80 per cent of this amount will be allocated for gifting others;
  • Economic apprehensions, including inflation and rising living costs, weigh on many. Accordingly, 88 per cent (vs 83 per cent in 2022) of Canadians are turning to proactive holiday shopping tactics, most notably hunting for sales (52 per cent), preparing in advance (41 per cent), and adhering to a precise budget (40 per cent);
  • To help shoppers decide which retailers to buy from this year, Canadians are prioritizing holiday sales/promotions (66 per cent) and free shipping (55 per cent). They are also looking for in-store exclusives (48 per cent) and distinct online promotions (60 per cent) to provide additional value;
  • In-store shopping will benefit from value bundles (26 per cent) and product sampling (25 per cent). Conversely, online shopping will be amplified by unique product offers and extended return policies, both at 33 per cent;
  • A growing number of Canadians are delaying significant buys, waiting for expected deals around the popular shopping holidays. The survey highlighted anticipated increases in shopping intentions for: Singles Day (10 per cent, up from five per cent in 2022), Black Friday (40 per cent, up from 28 per cent in 2022), Cyber Monday/Week (37 per cent, up from 21 per cent in 2022), and Boxing Day (32 per cent, up from 18 per cent in 2022);
  • Clothing emerges as 2023’s frontrunner, constituting 17 per cent of the holiday budget, followed closely by home entertainment and essentials like food and alcohol grabbing 16 per cent of the planned spend;
  • 45 per cent of shoppers are leaning towards purchasing gift cards for others this season, with a notable 37 per cent of Canadians (up from 32 per cent last year) expressing a preference for receiving gift cards over traditional presents. Dining gift cards top the charts (42 per cent), while big-box retailers come in at 33 per cent and food outlets register at 27 per cent; and
  • Supporting local businesses this holiday has seen an increase in intent, with 82 per cent of Canadians accentuating its importance, a leap from 74 per cent last year.
Black Friday Sales at GameStop in the CF Toronto Eaton Centre (Image: Dustin Fuhs)

“Our findings for 2023 are both exciting and instructive. 90 per cent of Canadians plan to shop this holiday season. While they anticipate spending more than ever, 88 per cent are also looking proactively at various ways to get the most value. Even more than in previous years, many are holding off buying and planning to make their bigger purchases around hallmark shopping events like Black Friday and Cyber Monday/Week, in anticipation of grabbing the best deals,” said Brisebois in the report.

“However, as we see in a new section of this report based on Moneris’ historical payment data, planned and actual shopping don’t always align. If shoppers are not finding the deals they are expecting, they wait. This signals an unmatched opportunity for retailers: present the best offers at the right time and guide consumers to confidently make their purchasing decisions throughout the holiday season.

“The pandemic’s impact on reshaping shopping dynamics appears to have now stabilized, with 62 per cent of holiday budgets likely being spent in-store, and 38 per cent online. Today’s consumers are nevertheless seeking both unique experiences and offers to bring them into stores as well as distinct online offers to provide additional value. Tangible benefits, such as special savings, free shipping, hassle-free returns, and genuinely exclusive offers, will be the cornerstone traffic builders this year.”

Canadian Retail News From Around The Web For October 18th, 2023

By
Retail Insider
-
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 2 days.

Indigo ‘took a journey off brand,’ Heather Reisman says (BNN)

Champagne says he wishes grocers were more ‘forthcoming’ on plans to stabilize prices (CTV)

Canada’s annual inflation rate fell to 3.8 per cent in September (CP24)

Metro issues claim against George Weston for false price fixing disclosures (Grocery Business)

Style Q&A: Vancouver shoe store celebrates 56 years of fashion footwear (Kalena’s Shoes) (Vancouver Sun)

More action needed to address grocery store sticker shock: expert (Timmins Today)

London Drugs considering closing a downtown Vancouver store citing crime concerns (CityNews)

Toys”R”Us opens new store in North York (Toronto.com)

Scary Halloween prices aren’t stopping people from enjoying the holiday in Regina (Global)

Struggling Winnipeg skateboard shop overwhelmed by community support (Global)

Southside Co-op gets the go ahead for liquor store addition (Swift Current Online)

Downtown Montreal is Canada’s coolest neighbourhood, according to Time Out (Montreal Gazette)

Toronto’s Annex recognized as one of world’s coolest neighbourhoods (Toronto Sun)

The Hidden Risks of Buy Now, Pay Later: What Consumers Need to Know as More Players Enter the Market [Op-Ed]

By
Retail Insider
-

Buy now, pay later is a relatively new form of financial technology that allows consumers to purchase an item immediately and repay the balance at a later time in instalments.

Unlike applying for a credit card, buy now, pay later doesn’t require a credit check. Instead, these programs use algorithms to perform “soft” credit checks to determine a shopper’s eligibility.

This means buy now, pay later loans target low-income, tech-savvy millennials and Gen Z shoppers in an effort to supposedly improve financial inclusion for these groups.

However, the newness of buy now, pay later programs means existing consumer credit laws don’t cover it. This lack of regulation puts shoppers at financial risk of accumulating higher levels of debt.

Credit cards versus buy now, pay later

There are three key differences between credit cards and buy now, pay later loans. First, while buy now, pay later loans are a line of credit like credit cards are, they don’t impact credit reports. Because of this, shoppers might be less cautious when using buy now, pay later services.

Credit cards typically have annual interest rates ranging from 15 to 26 per cent. While most buy now, pay later loans have no interest, longer term loans have annual interest rates of about 37 per cent.

Shoppers are at risk of overusing buy now, pay later programs and accumulating more debt than they can manage. In addition, formal lenders, such as banks, currently have no way of knowing what buy now, pay later debt a person is carrying. The lender, therefore, likely incurs more risk than they are aware of.

Second, credit cards typically provide an interest-free period, after which borrowers must pay interest. In contrast, buy now, pay later users typically don’t have interest fees, but can incur late fees for missed or late payments.

Falling behind on payment terms can result in charges that exceed typical credit card interest rates, causing more harm than interest payments. Low-income buy now, pay later users are particularly vulnerable to using overdrafts to cover their buy now, pay later payments.

Third, people typically have just a few credit cards, making it easier to keep track of payments. Buy now, pay later users, on the other hand, usually engage with multiple buy now, pay later lenders through retailers. As a result, it’s difficult for them to keep track of all the buy now, pay later lenders and retailers they made purchases from.

What are the Canadian governments doing?

Canada classifies buy now, pay later as an unsecured instalment loan, which means lenders are subject to laws at the federal and provincial levels.

Under federal law, there is an annual interest rate cap of 60 per cent. Provincial laws require buy now, pay later lenders to disclose the cost of credit and extend consumer protection rights to buy now, pay later shoppers.

At the provincial level, specific laws come into play. Manitoba, Alberta, Québec, and Ontario have passed laws that require lenders to be licensed before they offer these products and be subject to regulatory oversight.

These laws regulate high-cost credit products that have annual rates of 32 per cent or higher. This means buy now, pay later services should fall under this category. However, I found no evidence of buy now, pay later lenders being licensed in Canada. This means either lenders are not aware they fall under these laws, or no one is enforcing them.

This ambiguity over whether or not buy now, pay later lenders are subject to regulatory oversight could be a hindrance for banks like the Bank of Nova Scotia and the Canadian Imperial Bank of Commerce, as it deters them from entering the buy now, pay later market despite its profitability.

Questions to ask before using buy now, pay later

Before signing up for a buy now, pay later loan, shoppers should consider the following six questions.

1. Payment structure. How much of the invoice amount needs to be paid upfront? The norm is typically 25 per cent. What is the number of remaining instalments? The answer to this is usually four. Lastly, what is the frequency of instalments? The norm is biweekly.

2. Sensitive information. Does the lender require you to provide information about your chequing account? This is sensitive information to give away and puts you at risk of data breaches. Most buy now, pay later lenders withdraw instalment amounts from chequing accounts or debit cards, potentially exposing shoppers to greater risks than credit cards.

Shoppers are at risk of overusing buy now, pay later programs and accumulating more debt than they can manage. THE CANADIAN PRESS/Cole Burston

3. Interest charges Does the buy now, pay later lender charge interest on instalment payments? The norm is no.

4. Late fees How much is the late fee, when does it apply and what is the maximum amount of the late fee? Typically, late fees don’t exceed $8 or one-quarter of the invoice amount. Late fees usually kick in if your scheduled payment remains unpaid after 10 days.

5. Data responsibility. Who is responsible for your data? Whether it’s the retailer, the buy now, pay later lender or a company whose cloud storage the provider may be using, you should know. In general, the buy now, pay later lender holds this responsibility.

6. Licensing. Is the buy now, pay later lender licensed to sell the loan? Usually, the answer to this question is no.

Buy now, pay later regulation

Two sets of laws and regulations should be implemented to address some of these issues. The first set of regulations focuses on how buy now, pay later lenders interact with consumers. These lenders should clearly communicate all terms and conditions of their loans, including late charges, interest charges and payment schedules, on their platforms to ensure shoppers are fully informed of their financial obligations.

The Financial Conduct Authority in the United Kingdom recently issued guidelines allowing buy now, pay later lenders to terminate, suspend or restrict access to shopper accounts for any reason without notice. Effective September 2024, New Zealand will require buy now, pay later lenders to check a shopper’s credit before providing them a buy now, pay later loan.

The second set of regulations defines the scope and boundaries of buy now, pay later lenders. On Dec. 9, 2022, California became the first American state to classify buy now, pay later as a loan. Such classifications allowed California regulators to question lenders about their transparency in disclosing the terms of their offerings.

The hope is that these laws and regulations will facilitate microlending and not impede the existence of buy now, pay later services, but rather make it safer and more secure for both lenders and users.

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

By Vivek Astvansh, Associate Professor of Quantitative Marketing and Analytics, McGill University and Chandan Kumar Behera, PhD Student in Marketing, Indian Institute of Management Lucknow.

Canadian Loyalty Programs Surge but Face Challenges of Personalization and Relevance, Study Reveals [Interview]

By
Mario Toneguzzi
-
Starbucks Rewards (Image: Starbucks Canada)

The 6th edition of the LoyalT study, by R3 Marketing and Adviso, indicates the number of loyalty programs held since 2017 has increased in Canada, with 52 per cent of people subscribing to more than 13 programs. 

However, there is a saturation in the number of programs people use (7.36 in 2023, compared to seven in 2021). High-income women are the ones who use programs the most. And although Canadians have more loyalty cards, only 51 per cent of them are actually used.

Hans Laroche

“Loyalty programs are being tested by new consumer behaviours and the new economic context. People now evaluate the value of a program not only by the exchange of points or discounts offered but also by the relevance and level of personalization of communication initiatives, in terms of content and/or offers,” said Hans Laroche, Senior Consultant Loyalty Adviso/R3 Marketing.

“Experience and ease of use, especially on mobile, as well as the ability to accumulate and redeem points across all channels are also important criteria for loyalty program holders.

Image: Chipotle Loyalty Rewards

The study of 10,000 Canadian respondents listed the following Top 10 loyalty programs in the country:

  1. Proxi Extra
  2. Chipotle
  3. Mondou
  4. PC Optimum
  5. SAQ
  6. Starbucks
  7. Domino’s Pizza
  8. Walmart
  9. Ultramar
  10. Irving 

Paul Lafortune, Lead Consultant and Relational and Loyalty Marketing with Adviso, who was involved in the study with Laroche, said customers are hurting because of inflation and higher interest rates and they’re looking where they can grab a deal with loyalty programs. 

Paul Lafortune

Consumers today want points for their transactions. They want free items. If they can get any type of rewards for surveys, they like that as well. 

“Personalized offers seem to be a go with customers,” said Lafortune. “They really like it . . . They’re based on your past purchases. 

“They want content. They want exclusive information, content, on products, on the company, shopping experiences.”

Image: Proxi Extra

The report said loyalty programs have evolved significantly over the past 24 months. Notably, the acquisition of Air Miles by BMO, Scene+ aiming to establish itself as the new coalition program in Canada, and programs developing a premium component like Triangle, Uber One, and Lululemon. 

“The LoyalT study’s analyses show a direct correlation between inflation and loyalty. In the last 12 months, 80 per cent of respondents have noticed a decrease in their purchasing power. In the previous study, content personalization was an influencing factor in behaviour,” said the report.

“Today, program users are willing to switch to a competitor in the same sector if the new program is more generous. The generosity of a program revolves around several dimensions, including the accumulation of points on total purchases (basic points) and the ability to earn additional points related to engagement (using the mobile app, participating in a contest, or writing a review) as well as exclusive discounts offered to members in-store, which have become increasingly popular in Canada but have existed for over 30 years in the U.S. and Europe.

“It becomes essential for a brand or retailer to understand its customers and their buying behaviours and use this data to enhance the offers presented, which, when relevant, constitute added value for members.

Mondou Cuddle Club Loyalty Program
McDonalds Rewards (Image: Dustin Fuhs)

Other highlights of the study include:

  • 51 per cent of members primarily use a mobile device to view program communications. This is an increase of four per cent from 2021. Points on each transaction are the most coveted reward type;
  • 26 per cent of respondents say they modify their purchases to accumulate points;
  • 49 per cent of respondents are members of Amazon Prime. Since 2019, the program has doubled its membership in Canada. 47 per cent of program members say they visit retailers more frequently to accumulate benefits. 18-34 year olds are among the strongest program users.

“The study reveals the most effective loyalty programs in the eyes of consumers. This is a very important part of the equation but not 100 per cent correlated with their business performance. Only brands that see loyalty as a business strategy and not just as a marketing operation benefit from the best economic returns, and only the best programs will remain relevant and profitable,” said Elizabeth Henry, CEO, Partner at Adviso.

R3 Marketing is a consulting firm specializing in relationship marketing and loyalty, created by Lafortune and Laroche, who have over 60 years of experience in the field. Adviso is a marketing agency.

Columbus Café Partners with Indigo to Open In-Store Locations Across Ontario and Quebec [Interview]

By
Mario Toneguzzi
-
Columbus Cafe at 283 Adelaide Street West in Toronto (Image: Columbus Cafe)

France-based Columbus Café & Co, with its authentic Parisian experience, is launching its first Toronto location and expanding its Canadian footprint in partnership with retail giant Indigo Books & Music Inc. to open 11 Indigo and Chapters locations across Ontario and Quebec, with six cafes opening in 2023.

Simon Plante, Vice-President of Development in Canada for the brand, said the first store in Toronto is a standalone location at 283 Adelaide Street. It is located in the PJ Condos residential development. 

The company has 11 locations in Quebec. 

Columbus Cafe at 283 Adelaide Street West in Toronto (Image: Columbus Cafe)

“We position ourselves as the coolest coffee shop in the industry,” said Plante. “If you walk into the store, the Columbus Café, you will see a unique design. We have a very special vibe, very young, urban, very cozy and warm as well.

Simon Plante

“We have Parisian bistro chairs because the chain was founded in France in 1994. So we bring a little bit of France into the concept. And you can feel it in the recipes as well. For example, all of the players in this industry have a breakfast sandwich with eggs and bacon which we also offer but in our breakfast sandwich there’s also dijon mustard. In every recipe, there’s a French twist to it.”

Plante said it was natural to start the brand in Canada in Quebec because of the shared language and cultural similarities. 

“We wanted to establish in Quebec and so the next natural step is of course Ontario because it’s the largest market in Canada. People have a lot of money to invest. Consumers have lots of money to spend in restaurants. The population is growing. The economy is very strong in Ontario as well,” he said. “So for us it was the next natural thing to do.”

Plante said Columbus has signed for 11 locations within Indigo and Chapters with six of them to open this year.

Columbus Cafe has used Tony Flanz and his team at Think Retail for its Canadian real estate needs.

Future Columbus Cafe at Indigo in CF Toronto Eaton Centre (Image: Dustin Fuhs)

“The first ones to open will be in Cambridge, Barrie and CF Toronto Eaton Centre,” he said. Those are all within Indigo stores. 

Most of the new openings will be in Ontario in the next two years except for one which will be Quartier DIX30, a commercial lifestyle centre located in Brossard, Quebec.

“Most of them will have their own exterior entrance that have signage on the facade of the shopping centre. We’re going to have our own patio as well,” said Plante.

He said the company doesn’t have a final number yet of how many locations it will eventually partner with Indigo/Chapters on. 

“The goal is to do as many as we can,” added Plante. “I think Indigo has the same feeling. We have a really strong relationship.

“We are also considering expansion in Western Canada. So there will be more opportunities moving forward.” That will include both standalone locations and partnerships with Indigo/Chapters. 

“We are very excited to open in Ontario. I think this partnership with Indigo is a great opportunity for us to show our brand to people. In the last 12 months we have lost one or two good locations in Toronto because the landlord decided to go with another tenant simply because they didn’t know what Columbus is. But now thanks to this partnership a lot more people will know what Columbus is and people will fall in love with the brand and the concept.”

Columbus Café & Co in Montreal (Image: Columbus Café & Co)

The first North American café debuted on Mont-Royal Avenue in Montreal in 2020.

It was founded in 1994. The brand grew because of its premium coffee products and varied menu—sandwiches, salads and Buddha bowls, plus an array of quality baked goods and sweet treats—housed in modern inviting spaces where customers can enjoy a quick bite or linger with friends over coffee and a meal. 

In 2001, the company opened its first café outside of France—in Brussels—and three decades after its inception, Columbus Café & Co operates more than 200 locations across France and internationally.

Jim McLellan

“We are excited to join forces with Columbus Café & Co Canada to bring this amazing Parisian café experience to the Indigo community,” said Jim McLellan, VP Real Estate, Indigo. “I am confident that Columbus Cafe & Co’s gourmet food and drink will further elevate our customers’ experience as they shop for their next great read or gift for a friend or loved one.”

Maxime Mayant

”We’re delighted to partner with Indigo, a beloved Canadian company that shares the same values as we do,” said Maxime Mayant, President of Columbus Café & Co Canada. “We are excited to create a new experience and further elevate the shopping experience at Indigo.”

Columbus Cafe at Carrefour Laval (Image: Think Retail)

Columbus Café & Co will be opening at the following Indigo and Chapters locations:

● Indigo Cambridge (Ontario)

● Indigo Barrie (Ontario)

● Indigo Toronto Eaton Centre (Ontario)

● Indigo Brossard (Quebec)

● Chapters Vega (Ontario)

● Indigo Erin Mills (Ontario)

● Indigo Thunder Bay (Ontario, 2024)

● Indigo Kanata (Ontario, 2024)

● Indigo Heritage Greene – Stoney Creek (Ontario, 2024)

● Chapters Newmarket (Ontario, 2024)

● Chapters Belleville (Ontario, 2024)

Canadian Holiday Spending to Decline Amid Consumer and Economic Concerns: Deloitte Report

By
Mario Toneguzzi
-
Exterior of Hudson's Bay in downtown Vancouver on December 19, 2022. Photo: Lee Rivett

Consumer spending is expected to drop this holiday season as Canadians face mounting financial challenges, says a new report by Deloitte Canada.

The report, 2023 Holiday Retail Outlook – The weight of the season: Financial strain curbs holiday spending, said Canadian consumers are more and more concerned about housing costs, credit card debt and the impacts of a potential recession.

Consumers will be cautious, savvy and selective this holiday season, looking to shop around widely to find the best deals and get the most value for their money.

While Canadians’ trust in retailers is being challenged driving them to shop around for the best holiday deals, retailers will more than ever need to optimize their pricing and promotion strategy this season. This year’s holiday season shows signs of stagnation in e-commerce growth, with many consumers embracing the omnichannel experience. Despite inflationary challenges, some Canadians are willing to pay more for sustainable products and services, more likely for those younger and females, added the report.

CF Toronto Eaton Centre (Image: Dustin Fuhs)
Marty Weintraub

Marty Weintraub, National Retail Leader for Deloitte Canada, said the report is forecasting a soft holiday season. 

“Spend is probably going to drop around 11 per cent,” he said. “And of course this is clearly on the backs of the financial pressures, the customer and the shopper has been under for some time, continues to be under, and we’re simply seeing this work its way through the system as interest rate changes start to take effect as people start renewing their debt, the pressures, along with inflation on food and cost of living, it’s just a lot to put on someone’s back. So that’s clearly going to impact how much we spend.

“At the same time, those that are going to continue to shop are also going to be extremely hungry for deals. If you look at our prior reports, Canadians love deals in the best of seasons. We’re going to see a real amped deal-seeking culture from a shopper perspective because of the pressure on the wallet. So we’re expecting quite a promotional holiday season to capture as many of those dollars at the retail level as every retailer can capture.

“Along with that and maybe a little bit on the other side, with these rising prices that we’ve seen some of this playing out over time . . . we’re seeing some what I call hairline cracks in shopper retailer trust because of prices going up and we have over half of Canadians thinking prices will continue to go up through the holiday season – the notion of are prices going up because it’s sort of a gouging opportunity versus a necessity, we’re seeing an all-time high from a shopper perspective, based on our survey, that the trust between shopper and retailer it’s showing to be a challenge. That’s a third insight which shouldn’t be underestimated because it’s not about right or wrong unfortunately. It’s about what people think and that perception is creating some challenge for retailers.”

Home Goods at Canadian Tire (Image: Dustin Fuhs)

Weintraub said a key signal by consumers from the report is that they are only going to buy what they need, not necessarily what they want. Everyone is looking for deals and that includes high income earners. 

“We’re going to see growth in spend to those value-oriented players and probably a reduction in spend in anyone in what I like to call the mushy middle where their value proposition is not so clear to the customer. You’re not luxury. You’re not discount. You’re somewhere in the middle. They will suffer the most,” he said. 

Here are some of the report’s key findings: 

  • Canadians will significantly reduce their holiday spending this year, with 47 per cent expecting the economy to weaken in the next year and 67 per cent concerned about recession impacts. Also, 55 per cent of consumers are worried about rent/mortgage increases, and 33 per cent are feeling anxious about how to pay for holiday gifts;
  • Canadians intend to spend an average of $1,347 over the holiday season this year, down 11 per cent from last year, with notable decreases in charitable donations (-40 per cent), gifts (-18 per cent) and gift cards (-14 per cent), though holiday spending on travel is forecast to rise 11 per cent;
  • While 76 per cent of Canadians expect prices to rise this holiday season, 73 per cent suspect retailers have been increasing prices unfairly;
  • Canadians are willing to shop widely and go the extra mile–literally–to find the retailers that deliver the most value for their money. They will visit an average of 16.5 stores and websites this season, up 37 per cent from last year, planning to shop for holiday gifts at Amazon (69 per cent), mass merchant retailers (61 per cent), and warehouse membership clubs (40 per cent);
  • This year’s season shows signs of stagnation in e-commerce growth as consumers plan to spend 41 per cent of their holiday budget online, plateauing since 2021; and
  • Despite inflationary challenges, 55 per cent claim they are willing to pay extra for sustainable/ethical products and services, more likely for those younger (65 per cent for those 18-34 vs. 47 per cent for those 55+) and females (60 per cent vs. 49 per cent males).
Gift Cards at Bath and Body Works in CF Toronto Eaton Centre (Image: Dustin Fuhs)

“While excitement for the holidays can bring joy and anticipation, economic conditions this year will make for yet another challenging holiday season. Canadian consumers plan to reduce their spending and stretch their holiday budget, putting more effort into shopping around in the store and online as they search for the right gifts and the best value for their money,” said the Deloitte report.

“This shift in behaviour means retailers will need to re-examine and refine their value proposition. Price is certainly an important component, especially this year, but it’s not the only one. Product availability, the shopping experience, fast checkouts, free delivery, easy returns—every touchpoint along the customer journey is an opportunity for retailers to deliver value to Canadian shoppers. With the right moves, retailers can position themselves to keep tills ringing this holiday season.”

For many retailers, the holiday season is make or break time.

Weintraub said if shrink is out of control for retailers that alone is a big problem and a big deal on the bottom line. Together with fewer gross margin dollars that are going to come just from pure shopping during a very important season, “we could be seeing some fallout come January or February depending on how the holiday goes. And if it goes the way Canadians are saying it’s going to go I’m not sure we’ll see a wave of bankruptcies and CCAA (Companies’ Creditors Arrangement Act) and stuff like that. We might see some more. We typically do because the smaller ones that are not well financed, not on strategy, don’t stand for something clear, likely are higher risk. We could see some store closures.”

Weintraub said despite the financial pressures Canadians are facing, there are some things that have been working in their favour. Wage growth has been decent. Employment rates are good right now but that’s expected to deteriorate as company’s continue to work through the challenge. Pandemic savings rates used to be quite high. But they’ve been coming down and stabilizing. And consumer confidence isn’t the greatest right now.

Burberry to Relocate Toronto Bloor Street Flagship into Former Pottery Barn Space

By
Craig Patterson
-
Burberry is moving into the main floor of the former Pottery Barn space at 100 Bloor Street West in Toronto. Photo: Craig Patterson

UK-based luxury brand Burberry is relocating its Bloor Street flagship store in Toronto after almost 15 years at the same location. Sources tell Retail Insider that Burberry has secured the main level of the former Pottery Barn space nearby, and as a result will be vacating its current location at 144 Bloor Street West. 

The new Burberry store will span about 6,125 square feet on the main floor of the former Pottery Barn at 100 Bloor Street West, and will feature soaring ceilings and a unique facade. The former Pottery Barn was said to be difficult to lease because of a heritage protected facade that was once a movie theatre, and the space has remained without a permanent tenant since Pottery Barn exited in 2015. 

Burberry will be next to luxury jeweller Van Cleef & Arpels, which recently opened a beautiful 2,500 square foot store next door — other tenants at 100 Bloor include an Hermes flagship store and a Holt Renfrew men’s store that will be relocating back into Holt’s 50 Bloor building in about a year or so. 

JLL listed the 100 Bloor space and negotiated the deal for Burberry’s relocation. 

Former Pottery Barn space at 100 Bloor Street West in Toronto. Construction will soon begin on a new Burberry store. Photo: Craig Patterson

CBRE is now listing Burberry’s multi-level space at 144 Bloor Street West, which presents a unique opportunity for a new retailer. Arlin Markowitz of CBRE explained how the entire seven-floor building’s exterior can be branded, creating a unique opportunity on the street for a major global name. From 1950 to 1978, Holt Renfrew occupied 144 Bloor Street West with a store spanning about 60,000 square feet on several floors, of which 32,000 square feet was retail space according to historical records.

Burberry opened its 9,000 square foot flagship at 144 Bloor in November of 2009, at a time when the world was coming out of a financial crisis. Bloor Street was the second location for Burberry in Canada, following the 2006 opening of a standalone 3,200 square foot storefront at the Shangri La Hotel on Alberni Street in downtown Vancouver. Burberry opened more standalone stores after 2011 at Yorkdale in Toronto and at CF Chinook Centre in Calgary. 

It’s not yet known if Burberry will open more stores in Canada — there’s currently no information on negotiations for a store at Royalmount in Montreal (opening August of 2024) or Oakridge Park in Vancouver (opening in 2025), both of which will include a substantial roster of standalone luxury brand stores. 

Current Burberry store at 144 Bloor Street West in Toronto. Holt Renfrew occupied the building from 1950 until 1978. CBRE is now leasing the space. Photo: Craig Patterson
Marketing materials for 144 Bloor Street West, via CBRE Toronto Urban Retail Team

Burberry also operates concessions at Holt Renfrew in Vancouver, Calgary, Mississauga, Toronto and Montreal. Until last year, Burberry also wholesaled at retailers in Canada including Nordstrom and Saks Fifth Avenue, prior to pulling back distribution to focus on concessions in multi-brand retailers. The shift to concessions resulted in the Burberry spaces at Nordstrom in Vancouver becoming concessions (prior to Nordstrom’s exit from Canada in the spring) while Burberry boutique spaces shuttered at Nordstrom in downtown Toronto and Yorkdale as well as at Saks Fifth Avenue in downtown Toronto. 

Bloor Street in Toronto is seeing substantial construction activity as new luxury brands move into the area. We’ll continue to report on new developments in the area as new leases are signed and announcements are made. 

1...614615616...1,337Page 615 of 1,337