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Amazon Releases Impact Report Showing Significant Growth for Canadian Sellers [Exclusive]

Image: Amazon

The number of Canadian sellers on Amazon who surpassed $1 million in sales grew by more than 38 per cent this year and nearly 240 Canadian sellers surpassed $1 million in sales for the first time, according to the 2021 Amazon Canada Impact Report

“Our presence now extends from coast to coast to coast, and the benefits of our investments are enjoyed by more Canadians than at any time in our history,” said the report.

“We know that our investments bring broader responsibility—and can unlock opportunity. Our facilities help revitalize cities and neighborhoods. Amazon.ca creates virtual shelf space for more than 40,000 third-party sellers from each province and territory—up from approximately 35,000 during the same period last year—most of which are local small-and medium-sized businesses.”

In its report, William Chu, of West End Coffee Roasters in Vancouver, said: “Amazon allows us to focus on what we do best— roasting fresh specialty coffee, sourced from all over the world, and providing an amazing coffee experience. By handling order fulfillment with fast and free delivery services to our customers, we have been able to share great coffees with all the coffee enthusiasts in Canada. It allows us to stick to our roots and continue to provide fresh and high-quality products for our active customers who like to enjoy great-tasting coffee at work and at home.” 

Stella Benson, of Benols Beauty in Calgary, said: “I was previously in the finance industry but am now a mother of three with a husband who travels a lot as an engineer. In 2017 I started searching for a business opportunity that would allow me to set my own schedule so I could have more flexibility and freedom to be with my family. After researching, we found ASM (Amazing Selling Machine), joined it, and started selling on Amazon in June 2017. We decided to offer products that would provide a flawless look, with bold, beautiful eyes and face in minutes. Additionally, we wanted to focus on products that are high-quality, all at an affordable price.” 

Image: 2021 Amazon Canada Impact Report

Key highlights from the Amazon report include:

  • Canadian sellers sold almost 110 million products (209 every minute);
  • Almost 4,000 Canadian sellers had over $100,000 in sales, up nearly 24 per cent year over year; 
  • More than half of all Canadian sellers took advantage of Fulfillment by Amazon;
  • It now employs 39,500 Canadians in addition to the indirect jobs the retail giant creates across industries including construction, logistics, retail, healthcare, and food services;
  • In 2020, Amazon donated more than $10 million to charities focused on “Right Now Needs” (such as food, shelter, and basic goods for children and families) and computer science education for underserved and underrepresented students. Charities it supports include Breakfast Club of Canada and the organizations affiliated with Amazon Future Engineer, including Canada Learning Code, Kids Code Jeunesse, TakingITGlobal, and FIRST Robotics.

“Since 2003 Amazon.ca has made its virtual shelf space available for small- and medium-sized businesses (SMBs) to reach millions of customers, build their brands, and grow their businesses. Amazon helps SMBs sell their products online, use the cloud to launch and scale their businesses, create voice apps, and publish their own books. Amazon Web Services (AWS) helps tens of thousands of Canadian startups, customers, and partners enrich their communities and the world,” said the report.

“In 2020 Amazon invested over $700 million (USD) and employed more than 10,000 people globally to protect our stores from fraud and the abuse of customers and sellers. Our investment led to some of the lowest fraud rates in the industry and protected sellers from frivolous and unsubstantiated claims.

“Amazon recently launched the Intellectual Property Accelerator (IP Accelerator) in Canada, making it easier and more cost effective for SMBs to obtain trademarks, protect their brands, and tackle infringing goods both in Amazon’s stores and the broader marketplace.

“Available to any brand selling in Amazon’s stores, IP Accelerator directly connects Canadian SMB owners with a curated network of local law firms charging reduced, pre-negotiated rates on key services, giving SMBs access to expert legal and general IP advice that may otherwise be cost- prohibitive or hard to find.” 

Amazon employs 10,000 full and part-time people in British Columbia and 22,000 in Ontario. There are also 1,400 employees in Quebec and 4,000 in the Prairies. 

Its two tech hubs are growing and now employ 3,500 people in Vancouver and 2,000 in Toronto.

The company’s first local delivery station opened in Dartmouth, N.S. in September.

Amazon has also announced  two major renewable energy projects in Canada: 

  • An 80 megawatt (MW) solar project in the County of Newell in Alberta. Once complete, it will produce over 195,000 megawatt hours (MWh) of renewable energy to the grid, or enough energy to power more than 18,000 Canadian homes for a year; and 
  • In June 2021 Amazon announced its second and largest renewable energy project in Canada—a 375 MW solar farm in Vulcan, Alberta. When it comes online next year, the project will bring Amazon’s solar energy capacity in Canada to more than 1 million MWhs, which is enough to power more than 100,000 Canadian homes for a year. 

The company said its DYB2 delivery station in Nisku (Edmonton), Alberta, is its first onsite Amazon solar rooftop in Canada, with 211 kilowatt photovoltaic to offset 35 per cent of the building’s energy consumption. 

“Amazon is committed to building a sustainable business for our customers and the planet. In 2019 Amazon co-founded The Climate Pledge—a commitment to be net-zero carbon across our global business by 2040, 10 years ahead of the Paris Agreement,” said the report.

In Canada, Amazon currently has 17 fulfillment centres, six sortation centres, two tech hubs, 35 delivery stations, two AMXL Delivery Stations, three corporate offices and one AWS region.

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Dustin Fuhs Appointed Co-Editor-in-Chief of Retail Insider

Dustin Fuhs Appointed Co-Editor-in-Chief of Retail Insider

Retail Insider is announcing that Dustin Fuhs has been appointed to the position of Co-Editor-in-Chief of Retail Insider. The promotion will see Fuhs, formerly Digital Content Manager with the publication, serve in the new role with Retail Insider Founder Craig Patterson who will also act for a time as co-Editor-in-Chief.

Fuhs has been with Retail Insider since October 2020 and has held several functions within the business, including coordinating digital content on Retail-Insider.com, social media, email marketing, content creation, visual asset development and most recently in a project management role with partnership growth.

In a statement announcing the promotion, Retail Insider Media Ltd. owner Craig Patterson shared his enthusiasm over the promotion and Fuhs’s new role with the publication moving forward.

“In a relatively short time, Dustin has shown tremendous initiative in helping grow Retail Insider since coming on board. His drive and ambition has helped grow the business and given the activities he has taken on, it only made sense to groom him to share the role of Editor-in-Chief with myself. I would like to congratulate Dustin on the promotion and thank him for his excellent work, and I’m looking forward to a continued close working relationship moving forward. In 2022 Retail Insider will celebrate 10 years as a publication and we will continue to make announcements around the growth and development of Retail Insider Media Ltd. as a multi-media business.

Fuhs’s promotion follows the announcement earlier this month that Mario Toneguzzi was promoted to Senior National Business Journalist with Retail Insider.

Canadian Retail News From Around The Web For November 26th, 2021

Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

Western Canada News

Ladurée Opens Retail Space at Toronto’s Yorkville Village

Photo: Craig Patterson

Upscale French bakery and sweets maker Ladurée has opened a retail presence at the central Oval in the Yorkville Village shopping centre in Toronto. The space which includes a display ‘carriage’ and display walls will be open for several months while Ladurée further strategizes its Toronto operations. 

When it opened last week, the Yorkville Village Ladurée Carriage was already seeing exceptional foot traffic from visitors to the shopping centre. The high-density Yorkville area is home to a wealthy demographic and is also a draw for high-end shoppers from abroad. 

Ladurée’s Canadian licensee Olesya Krakhmalyova said in an interview that a priority for the Toronto market will be the construction of a pastry laboratory which will serve the Yorkdale Ladurée storefront as well as any others in the city with Ladurée freshly made pastries and cakes. Ladurée’s Vancouver pastry laboratory opened in the summer of 2018, complete with a chef from France. A Toronto pastry laboratory will need to have certain technical characteristics to accommodate a specific  oven and other pastry making equipment which will be brought from France according to Ms. Krakhmalyova. 

Photo: Craig Patterson
Photo: Craig Patterson

In March of 2016, Olesya Krakhmalyova opened Ladurée’s first Canadian storefront in Vancouver at 1141 Robson Street. A second store opened in December 2018 at Toronto’s Yorkdale Shopping Centre. A location that opened in February 2020 at the Exchange Tower in Toronto’s Financial District has yet to reopen due to the pandemic and reduced office foot traffic. The brand also operates Ladurée Carriage pop-ups at Square One in Mississauga, at Holt Renfrew in Vancouver and now at Yorkville Village in Toronto.

Founded in Paris in 1862, Ladurée is best known for its double-decker macarons, selling over 15,000 of them daily. Many Ladurée locations also sell ice cream, sorbets, jams, chocolate and candy, as well as branded accessories. Ladurée was purchased by French business group Groupe Holder in 1993, expanding Ladurée from a handful of locations to dozens of boutiques in 27 countries, including several in the United States.

The Yorkville Village Ladurée boutique installation was executed by Toronto-based construction firm Elevate Build Inc., the brainchild of industry veteran Paul Belanger

Canadians Returning to Shopping Centres and Brick-and-Mortar Retail in a Big Way: JLL Study

Celebrated author Mark Twain over the years has been stuck with a famous quote he may or may never have said: The reports of my death are greatly exaggerated.

You could say, the bricks and mortar retail industry is likely uttering those words confidently these days after the release of a new report by commercial real estate firm JLL.

CF Toronto Eaton Centre (Photo: Dustin Fuhs)

The 2021 Retail Holiday Survey, by the company, found that 85 per cent of shoppers say they are going to return to shopping centres this holiday season and they’re going to be spending more time and more money in those malls.

“This is a great news story. I think it means that people want to go out and be in that environment and not sit in their pajamas and shop online,” said Tim Sanderson, Executive Vice-President, Retail, for JLL.

“I think people have done a lot of that going on two years now and I think it gets a little tired. I do believe that we’re social creatures and we want to get out and we want to touch and feel product and we want to see other people.

“When you walk through a shopping centre and you see lots of people in a great mood – it’s kind of hard to see people smiling, we’re all wearing masks – but when they’re carrying bags and they’re enjoying themselves, everybody gets caught up with that.”

The report also found that 72 per cent of shoppers will visit physical stores to buy or pick up goods, which is higher than last year’s 64 per cent. It’s also higher even than pre-pandemic levels, when 67 per cent of shoppers visited physical stores.

The report said curbside pickup has found a niche, especially among intentional buyers. In 2021, 18 per cent are ordering online and driving to the store’s designated pickup area. This is the same percentage as last year when the option first appeared in the survey.

The Eataly Holiday Market in Manulife Centre (Photo by Dustin Fuhs)

“Canadians of all ages, genders, regions, and incomes are returning to shopping centres this holiday season. With a large majority of the adult population fully vaccinated, 85 per cent of shoppers reported that they’re going to do holiday shopping in shopping centres,” said JLL.

“Shopper hesitancy seems to be in steady decline in Canada as more people feel comfortable with resuming physical shopping activities, including those in enclosed malls.

“This result demonstrates further progress compared with responses to the Bank of Canada’s previous consumer survey. In Q3, the Bank of Canada reported that about 75 per cent of respondents were willing to engage in at least a modest level of in-person activity.”

This fall, shopping centres across the country rolled out provincial health measures that have made dining safer and mitigated shopper hesitancy. Depending on the province, food courts and restaurants require proof of vaccination to access dining areas. After an initial drop in foot traffic, these food courts are expected to see increased visitation, especially during the holiday season, it said.

Best Buy Tech Wonderland at Yonge Dundas Square (Photo by Dustin Fuhs)

The JLL report said about half of shoppers say they will eat or drink in shopping centres and 37 per cent of them said they plan to spend on average 30 to 90 minutes when they visit a shopping centre.

The survey indicated that 31 per cent of shoppers would like to see shopping centres offer an online directory to discover and order products; 23 per cent wanted gift-wrapping services, 16 per cent want designated curbside pickup spots/services; 15 per cent would like events and shows; 14 per cent want online appointments to shop in a store; and nine per cent would like online appointments for the Christmas experience.

“Retail is going to get a lot more personal going forward,” said Sanderson. “ It’s your phone clicking and saying hey guess what we know you bought a pair of shoes six months ago, they’re probably getting a little worn out now, how about coming in. When they can track you and follow your habits, that’s one thing.

“You have a personal shopper. I’ll give a high end example of  Holt Renfrew. They’re big on that . . . That’s what people want. People want that personal connection, especially in fashion . . . I think the personalization of retail is going to continue and it’s only going to be enhanced through digital applications.”

The JLL report said Canadians plan to increase their gift spending budget by 11 per cent this year after having saved a significant share of income during the pandemic. The average amount Canadians plan to spend on gifts is $473.

AMAZON PRIME PACKAGE BEING DELIVERED

The JLL report also indicated that Amazon remains Canada’s top retailer with the preference of 32 per cent of shoppers while Walmart is second at 31 per cent.

Since 2019, the three most popular retailers in Canada have remained Amazon, Walmart, and Best Buy. In 2020, during the height of online sales, Amazon by far surpassed Walmart in shoppers’ preferences, said JLL.

“Year after year, Canadians’ top priority for shopping continues to be price, as indicated by 30 per cent of respondents. Most generations chose saving money as their top goal, with shoppers between 18 and 24 ranking it highest. In turn, shoppers between 45 and 54 more prefer to avoid the hassle and crowds,” added the report.

“Despite losing importance this time, getting friends and family what they want remains the second most important factor, especially for shoppers 55 or older. The pleasant surprise in 2021 is that more shoppers have put importance on having fun. For shoppers between 18 and 34, this ranked second.”

Sanderson said Canada remains a value-driven proposition when it comes to spending.

“People want to get stuff cheap,” he said.

The Bay Opens Technology Powered Pop-up at Toronto’s Stackt Market

Image: The Bay at Stackt Market (Exterior Night)

Canadian retailer The Bay has debuted an immersive pop-up shop in Toronto’s Stackt Market, a shipping container outdoor marketplace. The Bay is the digital spinoff of department store retailer Hudson’s Bay.

The Bay has created a digitally-integrated experience at Stackt which focuses on The Bay’s Holiday gift guide. Using the retailer’s See it, Scan it, Ship it technology, the pop-up carries more than 50 curated brands and allows customers the opportunity to simply scan a QR code.

Once the checkout is completed, the product is shipped directly to the customer’s chosen shipping address without having to carry around bags.

The Bay at Stackt Market (Image: The Bay)

“The assortment at Stackt has been thoughtfully curated to appeal to the local market, providing holiday inspiration to make shopping for the season effortless,” says Laura Janney, Chief Merchant, The Bay.

“I truly believe shoppers will be surprised and delighted to find all The Bay has to offer, especially with our new Marketplace. The Bay at Stackt is a fun and immersive experience that will help shoppers ring in the season – however they celebrate.”

Featured brands at the Stackt Market pop-up include Theragun, UGG, Zwilling, Dr. Dennis Gross Skincare, Lesley Hampton, Herschel, SMEG, Paw Patrol, Eatable, YSL, Google, Grace & Stella and more.

The Bay operates TheBay.com, in addition to 85 Hudson’s Bay stores.

FYidoctors Announces Acquisition of Montreal-Based Eyewear Chain BonLook: Interviews

Image: BonLook at Sherway Gardens

FYidoctors, Canada’s leading diversified healthcare organization, has acquired BonLook, the Montreal-based brand famous for its trendy styles and technology-driven approach to eyewear, boosting the FYidoctors portfolio with new opportunities to expand the brand nationally and beyond.

FYidoctors, which started in 2008, now has more than 300 stores with continued growth plans. BonLook, which has been around since 2011, has 36 stores across five provinces.

Image: BonLook
Image: Alan Ulsifer

Dr. Alan Ulsifer, Chair and CEO of FYidoctors with Calgary as its main head office, said BonLook strengthens the company’s overall portfolio with a brand that stands apart with a modern consumer offering. 

“We’re here to support BonLook’s growth and to continue offering unparalleled service to existing and new customers while creating business conditions for even more innovation to offer more quality products and superior services,” he said.

“We’re going to keep the brand the same. It is a different kind of customer segment. So their brand is very appealing to the Millennial, Gen Z group of people that want more convenience, they want affordable fashion, they’re not so caught up in runway brands, but they like what a brand stands for. It is a different customer segment that is more attractive to that segment than more traditional optical, or traditional eyecare.”

Ulsifer said there is great opportunity for the BonLook brand to grow online and the company will look at featuring BonLook products in some of the FYidoctors locations. 

Image: BonLook St Bruno
Sophie Boulanger and Louis-Félix Boulanger

BonLook, a pioneer in the online sale of branded prescription eyewear was founded by Sophie Boulanger and her brother Louis-Félix Boulanger. It began as an online business and then it started opening up stores about six years ago.

“We saw an immediate upside for our brand and company when we analyzed synergies between our organizations. BonLook’s entry into the FYidoctors family will provide the company and its employees with new strategic opportunities in this high growth market. Becoming a part of the FYi team ushers in a new chapter for us and it brings exciting growth, access to resources, and the opportunity to learn from their award-winning culture,” said Sophie Boulanger.

“The BonLook brand stays alive – alive and stronger than ever. Actually the partnership is meant to give us a bit of jet fuel to actually accelerate our growth. So we’re keeping the banner as it is, we’re keeping the BonLook team in place, we’re keeping the brand, we’re keeping all of our design capabilities and our head office here in Montreal.

“The idea of joining the FYi group is really to join forces and gives us the means to our ambitions to grow and double the footprint of the brand in the next two years.”

Image: BonLook

Louis-Félix Boulanger described FYi as a “spectacular” partner and a leader in optometry in Canada – the biggest employer of optometrists in the country. 

“It also has a tremendous lab and optical manufacturing operation and just best in class in what they do. We felt that it was very complementary to associate the leader in optometry and lab with a brand such as ourselves and really make it a partnership where one plus one equals three. It’s very accretive if you will,” he said.

Terms of the transaction are not being disclosed. Stifel GMP is acting as financial advisor to BonLook. Fasken Martineau DuMoulin LLP is acting as legal advisor to BonLook. Burnet, Duckworth & Palmer LLP is acting as legal advisor to FYidoctors.

George Minakakis

George Minakakis,  Principal of Inception Retail Group, a former Country Manager and CEO with Luxottica and author of The New Bricks & Mortar Future Proofing Retail, said BonLook is a Montreal brand that is positioned far lower in price positioning than FYi is.

“It is a different consumer and business model. The opportunity for FYi is that it does not have as big a presence in the Ontario and Quebec market as it does in western Canada,” he said. “Consolidation of eye care practices across Canada has and continues to be the main strategy of growth for existing operators. With SpecSavers entering the Canadian marketplace, someone buying BonLook certainly decreases the number of larger acquisitions available for their growth. 

PHOTO: FYI DOCTORS/VISIQUE

“However the question for FYi is this a brand that they will continue to operate as is and are they prepared to compete in Quebec where the market is dominantly led by NewLook which operates few brands across Canada. Acquisitions and mergers in this category are always interesting because players are trying to lock up more market share. What this also means is that the opportunity for future consolidation is getting narrowed down to independent eyecare professionals, which includes Optometry and Optician led practices. 

“We are about to see a lot more competition. And if anyone thinks that they can tame the market, into mid to high priced tiers they underestimate consumers. If I were still operating optical retail chains today I would be converting one of them into a mass market consumer brand to take share and it would happen very quickly with the right investment and marketing strategies.” 

Ulsifer said Canada has always been a competitive market, always attracting different players and it continues to do that.

“That competitiveness has been building for the last 20 years. It has become an extremely competitive market. I never take any competitor lightly and I never talk adversely about a competitor. But to be successfull you have to have incredible service, you have to have product variety and at a variety of price points that are competitive with others,” said Ulsifer.

“Canada’s a bit of a complicated market. We’re so big geographically and the population’s so spread out that it creates some challenges in distribution and timing that everybody faces and will continue to face. Do the right thing for your consumer, have the right product at the right price, and again great service is really the key to success in this industry. Loyalty is a bigger thing in eyecare than it is in general retail.”

Canadian Retail News From Around The Web For November 25th, 2021

Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

Western Canada News

Brief: Moose Knuckles Opens at CF Toronto Eaton Centre, Smash + Tess Opens 1st-Ever Storefront

Retail Insider Brief

Moose Knuckles Opens Impressive Store at CF Toronto Eaton Centre [Interview/Photos]

Exterior of Moose Knuckles store at CF Toronto Eaton Centre
Exterior of Moose Knuckles store at CF Toronto Eaton Centre (Photo: Moose Knuckles)

Montreal-based outerwear brand opens a 4,500 square foot permanent location in downtown Toronto.

Read more about the new store at CF Toronto Eaton Centre

Smash + Tess Opens 1st-Ever Pop-Up at Coquitlam Centre

Smash + Tess at Coquitlam Centre (Photo: Smash + Tess)

The popular Vancouver-based clothing brand has launched its first brick & mortar pop-up.

Bentley Launches New Store Concept in Preparation for Multi-Store National Roll-Out

Bentley Avalon Mall (Photo: Bentley)

Montreal-based luggage retailer opens showcase store at Avalon Mall.

Decathlon Canada Takes a New Approach for Black Friday

Image: Decathlon Calgary

The sports retailer will donate a portion of the day’s proceeds to local organizations.

Southern Alberta UFA Farm & Ranch Supply Store Opens with Drive Thru [Photos/Video]

Lethbridge UFA Farm & Ranch Supply Store

Calgary-based United Farmers of Alberta Co-operative debuts renovated Lethbridge location

Champs Sports Launches Canadian E-Commerce

Champs Sports in Oshawa Centre

New York-based Foot Locker Inc. has added ChampsSports.ca to the portfolio.

Grocer Sobeys Opens North America’s 1st ‘Flex Store’: Interview/Photos

Image: Sobeys Orangeville

Grocery giant Sobeys continues to roll out its national renovation program to redesign stores across the country.

One of the latest is the company’s location in Orangeville, Ontario.

“Our newly redesigned store concept boasts refreshed design, décor and a completely reinvented store experience,” said Mark Holly, SVP Real Estate & Construction, Sobeys Inc.

“Customers who visit our newly renovated Sobeys Orangeville store in Ontario will immediately notice that all departments have enjoyed a major refresh featuring new offerings including a dry-aged meat section, InFarm fresh herb live walls, new Rachelle-Bery health and wellness departments, and an expanded ready-to-eat food section. The newly redesigned departments also feature modern, sleek overhead canopies throughout the store.”

Image: Sobeys Orangeville
Image: Sobeys Orangeville

Sobeys is a wholly-owned subsidiary under Empire Company Limited which is headquartered in Stellarton, Nova Scotia. With approximately $28.5 billion in annualized sales and $15.9 billion in assets, Empire and its subsidiaries, franchisees and affiliates employ approximately 134,000 people. Besides Sobeys, its brands also include IGA, Safeway, Farm Boy, FreshCo, Thrifty Foods and Foodland.

Mark Holly

Holly shared that Empire launched Project Horizon in July 2020, which included plans for major investments in Empire’s store network.

“Since then, Empire has accelerated investment in physical assets, through renovations and conversions. While Sobeys Orangeville is the first store to be fitted with these particular flexible fixtures, the overall look and feel of this store can be experienced by customers at an additional 12 existing Sobeys and Safeway locations across Canada, all of which are part of our national renovation program.”

“While we cannot confirm exact future locations just yet, you can expect many refreshed stores throughout our network in the coming years. Currently, our modern, refreshed décor can be seen in 13 Sobeys and Safeway stores across the country, including Sobeys Queen St. and Sobeys Mumford Road in Halifax.”

Image: Sobeys Orangeville
Image: Sobeys Orangeville

Last year, Empire unveiled its Project Horizon, which is a three-year growth strategy for core business expansion and e-commerce acceleration.

Growth in market share is expected from supporting and investing further in the store network, improving store productivity, scaling up grocery e-commerce, growing the private label portfolio, continuing the Western discount business expansion, and increasing the Farm Boy footprint in Ontario, said the company at the time.

“The Company will accelerate investment in physical assets, through renovations and conversions, and store processes, communications, training, technology and tools. This will provide Empire’s store teammates with further capabilities and tools to better serve customers. Towards the end of the last three years, re-investment in Empire stores was a key priority. These investments, coupled with powerful refreshed brand marketing strategies, have been successful with strong returns. These priorities, along with the expansion of the FreshCo and Farm Boy banners, are reflected in the Company’s estimates of future capital spending, averaging $700 million annually over the next three years,” he said.

“Improving sales per square foot is the crucial engine for long term market share growth. During Project Sunrise, the Company built the foundation of its advanced analytics capabilities. Analytics will drive improvements in every customer facing element, including store footprints, customer promotions and availability of product on shelf. With Category Resets complete, the Company is able to further improve the customer experience by leveraging advanced analytics, to tailor its assortment to store formats and optimize product adjacencies.”