Aisle 24, a fully-automated, 24/7 cashier-less grocery chain based in Toronto, will be opening later this summer its latest location in The Well, a massive mixed use development in downtown Toronto.
“We are excited to welcome Aisle 24 to the 320,000 square feet of reimagined retail and food service concepts at The Well. The innovative, convenient approach to food shopping that Aisle 24 offers will serve tens of thousands of residents living at The Well and in the surrounding community and is an excellent addition to the innovative retailer offering at this world-class mixed-use property,” said Oliver Harrison, SVP Leasing and Tenant Experience at RioCan Real Estate Investment Trust, which is developing the project with Allied.
The real estate transaction was facilitated by Oberfeld Snowcap.
Aisle 24 at Novus Liberty (Image: Aisle 24)
John Douang, Co-Founder & CEO of Aisle 24, said he expects the store to open in late summer.
“I just love The Well concept – the live, work, play. And I think it’s going to be a really bustling, vibrant community. So it’s perfect for Aisle 24,” he said.
John Douang
“What we were keen on there was to ensure that we could operate as we normally do in a 24-hour environment. There were some challenges on the interior side so we wanted to make sure that we chose the right unit for us.
“This unit is probably a little bit on the upper average size that we go with of about 1,700 square feet. But because it’s going to be a corporate store – one that we are the corporate owner and operate ourselves – we’re going to go fairly unique in terms of the design of this. We’re looking at options to include some local artists into the design of the space but the demographics there are just exactly what we need.”
Aisle 24 at Novus Liberty (Image: Aisle 24)The Well in Toronto (Image: Dustin Fuhs)
The Well is a massive 7.8 acre site in downtown Toronto which will be home to about 1.2 million square feet of office space and 1.5 million square feet of residential space including 1,700 condominium and purpose-built rental units. At the base of the project is a retail and foodservice offering that will also include a massive 70,000 square foot multi-tenant food market that is expected to become a significant attraction.
Douang said Aisle 24 has just over 20 locations and there’s about 30 in various stages of leasing and construction currently across Canada.
The ones currently in place are primarily in Ontario and Quebec.
He said the concept has the potential to grow to “several hundred” locations across Canada.
“That’s our goal and I think over the long term even more just in the way we can really scale the sizing as needed per community really allows us to enter into markets that wouldn’t support a traditional convenient store grocery business,” said Douang.
“We’re getting interest all across Canada and even in remote regions too. We are working very diligently in a special project in Happy Valley Goose Bay Labrador of all places.”
Aisle 24 at Novus Liberty (Image: Aisle 24)Aisle 24 River City (Image: Dustin Fuhs)
He said the brand’s community format stores are just over 1,000 square feet.
“When we look at a site we will always look at a demographic report and really dig into the details of density of population, median income, what they’re spending on. All that type of information that we gather to make an assessment as to what size would work best for us,” said Douang.
“But it does seem like we’re trending more on the 1,500 square feet plus size. Most availability that we’re seeing is around 1,500 to 2,000 square feet.
“Our real estate strategy has always been bringing that convenience to the customer. So that typically takes shape in being positioned close to where they live. We want to be that go-to so that when you’re at home and you need something, you can quickly pop down to an Aisle 24. So we’re always looking at the ground level of condominiums and mixed-use communities and this is why The Well was so attractive to us.”
Aisle 24 began in 2016 with its first location at Centennial College in Toronto.
Northern Touch Vintage at The Harlowe (Image: Dustin Fuhs)
Toronto’s Aly Jamal is the fresh prince of vintage streetwear.
The 41-year-old owns Northern Touch Vintage, a lifestyle store on Richmond Street West, and sells a curation of what he grew up on: everything pop culture-related.
“If I see a Reba McEntire T-shirt it excites me just as much as finding a Tupac T-shirt,” said Jamal.
Sports-related pieces include basketball, hockey, baseball, football.
Then there’s TV: Alf, Family Ties, Fresh Prince of Bel-Air, Family Matters, etc.
In other words, all things ’80s, ’90s and early 2000s — everything a geriatric millennial would phone home about.
Northern Touch Vintage (Image: Dustin Fuhs)Northern Touch Vintage at The Harlowe (Image: Dustin Fuhs)
With access to oodles of product through personal connections, he started selling items during the pandemic.
“Vintage was really big at the time,” he said.
Jamal said he knew he was onto something and created a pop-up at Space on King Street East before settling into a collaborative spot at The Harlowe.
Jamal quit his corporate job at Apple and is going full throttle.
“I just came out and I came out with a vengeance,” said Jamal, who’s been working retail since graduating from high school.
“The one thing that I never changed was my love for fashion,” he said. “So I always try to find the newest, coolest trend or put people on new styles.”
Image: Northern Touch Vintage
Jamal’s style has attracted celebrities and professional athletes such as Blue Jays pitcher Alek Manoah.
That’s no surprise considering Raptors guard Fred VanVleet was the first brick and mortar customer.
Less than a month later, Holt Renfrew came knocking about a partnership.
“It’s a dream come true,” he said. “You can work your whole life in fashion and still not get into a department store, so I’m extremely grateful and humble about it. And you know, I count my blessings on that.”
What makes his items different from the nostalgic clothing sold at fast fashion retailers?
“I would sell the shirt that Rolling Stones actually put out at that concert in 1996 at Joe Robbie Stadium in Miami or wherever it was,” he said.
“That’s really what we do.”
Northern Touch Vintage x Holy Renfrew (Image: Aly Jamal)Holt Renfrew x Northern Touch Vintage
Northern Touch Vintage debuted at Holts in mid-March of 2022. Jamal’s curations are currently in four locations: Yorkdale, Square One (Mississauga), Holt Renfrew Ogilvy Montreal, Vancouver and can also be accessed through e-commerce, spokesperson Adam Grachnik confirmed.
Carolyn Wright
When Holts’ SVP of product Carolyn Wright sees Jamal’s proposals for in-store offers, “I get excited about it,” she said. “That’s what we’re trying to drum up with our customers by offering this as well.”
For instance, when Jamal posts a Pink Floyd T-shirt on Instagram, “it sparks joy, right?” Accessing pieces “that are ultra special and can’t be found anywhere else is one of the main goals,” she said, adding it ticks the box on “our materials traceability and our ambition to become a more sustainable business operation.”
With Jamal’s extensive retail experience and laser vision for stellar quality, “we really saw him as the best in class to partner with,” Wright said.
As for more vintage offerings, “we are looking at working with additional vendors to kind of continue to develop this,” said Wright. “But overall, it’s now become part of our offer, which is really exciting.”
Northern Touch Vintage (Image: Dustin Fuhs)
Retail strategist Liza Amlani said vintage is more circular than sustainable.
Liza Amlani
“Really, you’re reducing the carbon footprint if you’re buying resale and vintage and secondhand versus buying new product that’s being made,” she said.
Amlani adds it’s “almost about consumerism and how it meets values and what values are aligned with our industry’s overall environmental impact, but it’s really the outcome” and keeping clothes from landfill.
Holts’ partnership with Northern Touch Vintage is an outcome she’s applauding.
“I think what makes Holt Renfrew special is that they have backed a Canadian small business,” said Amlani.
That’s part of the “secret of their success” since the “loyal Holt Renfrew customer shops at Holt Renfrew because it’s a Canadian brand.”
Northern Touch Vintage (Image: Dustin Fuhs)
Is vintage at major retailers a trend?
Amlani recently returned from London “and even Selfridges just has a resale shop, so I think that a lot of the luxury department stores are onboarding more resale, even vintage areas within the space,” she said.
Closer to home, Hudson’s Bay sells vintage luxury bags “and they have it in their physical stores, so I think that the department store knows that this is something that’s not going away so they should be investing in the resale space.”
What’s the ceiling of innovation in the Canadian retail industry for brands like Northern Touch Vintage?
Sizing comes to mind for Wright.
“Each piece is unique, so you may like the graphic and love the tee but it’s too big or too small,” she said.
That’s linked to scalability of operations; listing each item online is laborious.
Nonetheless, with “vintage resale products going to landfills and to parts of the world where you know, it may not be such a great thing for those countries,” Amlani said, “this is a real beautiful moment for vintage and resale.”
Toronto-based women’s fashion brand Pink Martini has opened its second storefront in the city. The 1,300 square foot retail space at 2378 Bloor Street West in Toronto’s Bloor West Village follows a location that opened on the Danforth about six years ago.
The new Bloor West Village store features the full range of Pink Martini’s women’s fashion line, which also wholesales at about 700 smaller retailers across North America. The Toronto storefront acts as an anchor for the brand and a space where women can come to see the entire collection, and be served by knowledgeable staff.
Pink Martini was founded in 2006 by entrepreneur Amir Bahar, who’s family has a history in the apparel and fabric business. He developed the line now known as Pink Martini, featuring a range of designs for women that include “feminine boho chic wardrobe choices” with a range of sustainable clothing that transitions through the seasons. The price point on Pink Martini’s fashions is quite reasonable given its quality and design, and the pricing makes it accessible to a broad spectrum of women seeking casual and dressier clothing. The collection is created by Pink Martini’s in-house design team, and manufactured in China.
Photo: Craig Patterson Jewellery display by a partner brand in the Bloor West Village store. Photo: Craig Patterson Photo: Craig Patterson
Dresses are priced from about $60 to $130 depending on the style, while outerwear is priced under $250 per coat. Most sweaters and pants are priced at under $100 in a range of styles and colours.
The second Pink Martini store follows a location that opened in 2017 at 261 Danforth Avenue in Toronto’s Greektown area. The design of the new Bloor Street store features a simplified logo with a clean white aesthetic that is intended to allow the clothing in the space to be the centre of attention. Several other local designers also showcase some goods in the store, including a range of jewellery and bags.
Pink Martini had a store on Queen Street West in Toronto which shut several years ago.
In an interview, Amir Bahar said that he choose the Bloor West Village location because of its demographics and the overall community feel of the commercial strip. He was looking for an area with strong neighbourhood retail and a nearby population with a higher income bracket, education and professional employment.
That goes for any future Pink Martini locations as well, according to Bahar. He said that wholesale will continue to be the lions share of the business for the popular Pink Martini brand, while at the same time he is considering opening more stores in Toronto and even possibly Vancouver at some point, in areas that have a neighbourhood focus, community feel, and strong demographics.
Bahar explained how customer service is paramount to what a good retail store should be, and with that he has hired a team of exceptional sales associates who he terms ‘stylists’. The Danforth location has developed a loyal clientele and the new Bloor West Village location is already seeing repeat visits since its recent opening.
The Excellence in Retailing Awards Gala, hosted by Retail Council of Canada along with presenting sponsor CHASE, is an annual celebration of the individuals and companies who are pushing the boundaries and making a difference in the world of retail. This year’s gala will be held on May 30, 2023, at the Toronto Congress Center, and it promises to be an evening of glitz and glamour, where Canada’s best retail talent will gather to celebrate retail excellence and innovation. The highly anticipated reveal of the winners of the 2023 Excellence in Retailing Awards program will be announced, and three recipients of the prestigious Awards of Distinction will also be honoured.
Winners of The Excellence in Retailing Awards Program to be Announced
The Excellence in Retailing Awards program recognizes outstanding innovation in various categories, including eCommerce Experience, Environmental Leadership, Health, Safety & Wellness, In-Store Experience & Design, Loss Prevention, Omni-Channel, Philanthropic Leadership, Pop-up Experience and Design, Retail Marketing, and Talent Development. The impressive level of excellence to reach finalist status was achieved by more retailers in 2022 than in previous years, demonstrating how retailers across the country are stepping up with forward-thinking solutions to meet the opportunities ahead.
The finalists for the 2023 Excellence in Retailing Awards include dynamic brands such as Amazon, Canadian Tire Corporation, IKEA Canada, Loblaw Companies Limited, Best Buy, Tim Hortons, METRO, LCBO, Sobey, Rona, Rexall, Longos, London Drugs, Golf Town, The Body Shop, II x IV, Mastermind Toys, Peavey Industries, Aldo, Toys R Us, Staples, Pet Valu, Harry Rosen, Big Bear Trading Company, Hillberg & Berk, Ardene, The Ordinary, Telus, Well.ca, Home Hardware, Habitat for Humanity Canada and Walmart Canada, as well as many others. These companies have demonstrated standout success in the various categories while showcasing their commitment to delivering exceptional retail experiences.
Awards of Distinction Recipients to be Honoured
In addition to the Excellence in Retailing Awards, the Gala will also recognize three exceptional individuals with the Awards of Distinction. This year, Paul Simmonds, President of Robert Simmonds Clothing, will receive the Independent Retailer Lifetime Achievement Award for his careers long contribution to his customers and community as independent retailer and advocate. Greg Hicks, President and CEO of Canadian Tire Corporation, will be celebrated with the 2023 Distinguished Canadian Retailer of the Year Award for his visionary leadership and commitment to customer satisfaction. The gala will also recognize Sharon Hayles, Owner of Diane’s Lingerie, as the 2023 Independent Retail Ambassador of the Year for her leadership in helping the beloved store become known for its highly personalized, relaxed shopping experience, and its exceptional commitment to inclusivity.
The Excellence in Retailing Awards Gala on May 30, 2023, 4:30pm -8:30pm, will be hosted by international food and travel celebrity and founder of Follow Me Foodie, Mijune Pak. Guests will enjoy an exceptional dinner, prepared under the consultation of world-renowned chef Mark McEwan.
The Excellence in Retailing Awards Gala end the first day of RCC STORE 23, Canada’s biggest retail conference, from May 30 – May 31, 2023. RCC STORE 23 that will feature 75+ speakers and is attracting retail leaders from across North America and around the globe.
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 several days.
Future Black Rooster Decor at The Well (Image: Dustin Fuhs)
Furniture store Black Rooster Decor has secured a location in The Well, a massive mixed-use development in downtown Toronto.
“The Well is a transformational project and one of the most complex, multi-faceted developments Toronto has ever seen,” said Oliver Harrison, SVP Leasing and Tenant Experience with RioCan Real Estate Investment Trust, which is developing the project with Allied.
“This is choreographed city-building, and this carefully curated retail mix will play a vital role in establishing The Well as a vibrant, lively destination for residents and visitors to Toronto. We are excited to welcome Black Rooster Decor into the fold. This independently-owned and operated furniture and accessories brand diversifies our retail offering. It is well-situated to appeal to the 1,700+ residents living at The Well and to shoppers from across the city.”
The Well is a massive 7.8 acre site in downtown Toronto which will be home to about 1.2 million square feet of office space and 1.5 million square feet of residential space including 1,700 condominium and purpose-built rental units. At the base of the project is a retail and foodservice offering that will also include a massive 70,000 square foot multi-tenant food market that is expected to become a significant attraction.
Future Black Rooster Decor at The Well (Image: Dustin Fuhs)The Well in Downtown Toronto (Image: Dustin Fuhs)
Nina Ber-Donkor, Owner of Black Rooster Decor, said when she initially visited The Well site she was “blown away by the community, the space, and the space we’re getting we’re really pleased. It’s a corner unit. It’s perfect for us and we loved the whole vibe of the whole community and the entire Well project. We were really inspired by that and really impressed by it.”
“It’s a game changer for us. We really feel we’re going to be able to expand our brand not just outside of the U.S. but also Toronto. I feel it’s going to put us more in people’s thoughts when it comes to home decor,” she said.
Black Rooster started online about 11 years ago. It was an e-commerce business only until 2014 when it opened a bricks and mortar location.
“We’re a home furnishings store. Lighting. Arts. Rugs. Accessories. Plants. We’re a fully furnishable home decor store. Online we have a lot more. We have a very large showroom online and in store at our current location a small showcase of what we carry.”
Black Rooster has been in Leslieville for the past nine years at 1075 Queen Street East.
Black Rooster Decor at 1075 Queen St E (Image: Dustin Fuhs)Image: Black Rooster Decor
Ber-Donkor said Black Rooster will keep its current location and its second location at The Well will open in the fall.
The location at The Well is going to be about 2,500 square feet. At Leslieville it’s about 1,500 square feet. At The Well, it will be located next door to Structube.
“We’re primarily an online store. Most of our business is done online. We ship to the U.S. and a lot of our customers are from the U.S.,” said Ber-Donkor.
“Most of our brands are luxury brands and everything is very well curated and thought out. We try not to do mass-produced items. We don’t have things that people are going to see in everybody else’s home. So when you shop with us you’re shopping for something that’s going to be unique and that’s also a piece you can move with you as you go through life and expand your family or move different houses. Most of our pieces are timeless.”
Image: Black Rooster DecorImage: Black Rooster Decor
Black Rooster Decor says it scours the world for unique and stylish furniture and accessories that are top-quality and made to last.
Its catalogue ranges from mid-century modern to European furnishings.
It now ships worldwide, and has warehouses in the United States.
“We support North American companies and like-minded small businesses and artisans as much as possible. Many of our larger pieces are made from reclaimed material. We only sell merchandise we have seen ourselves and vouch for 100 per cent,” says the company.
“Arts + Design District” Queen Street West signage (Image: Dustin Fuhs)
West Queen West in Toronto, also known as the “Arts + Design District,” lost more than 76 per cent of its galleries in the last decade, and locals say this has drastically and irreversibly shifted the strip’s very identity.
Since 2004, West Queen West – spanning from Bathurst Street to Gladstone Avenue – has been defined by its artists. The strip had the highest concentration of galleries per kilometre than any other street in North America, with a total of 33. Today, there are only six. Even government-funded galleries like the Museum of Contemporary Art (MOCA) – who moved away in 2018 – fell victim to this exodus.
Robert Sysak, executive director of the West Queen West BIA, said in a phone interview that surging rent – brought on by an increase in property values due to the arrival of high-density housing – drove out the galleries.
Queen Street West (Image: Dustin Fuhs)
Beginning in 2013, Sysak said the strip saw an increase in the number of condominiums being built. He believes the developers moved in because West Queen West land was relatively cheaper than the surrounding areas. He estimates since then, property values have surged by over 50 per cent.
Sysak added developers purchased many of the properties being leased out to galleries. In 2013, developer Urbancorp applied for a permit from the city to demolish the buildings housing MOCA, the Clint Roenisch Gallery and the Edward Day Gallery to make way for a nine-storey condo tower, which would aptly be called “MOCCA Condo.” Since then, all three galleries have moved away.
“I don’t like to say it, but we got gentrified,” Sysak sighed.
Stephen Bulger, owner of the Stephen Bulger Gallery, echoed Sysak’s observation. He said in a phone interview that he opened his business in West Queen West in 1995 before relocating to Little Portugal in 2017 for a larger space. When he first moved to the street, his rent was approximately $10 per square foot. By the time he left, it had more than doubled.
“But others had it worse,” he said in a phone interview.
Bulger added his neighbours’ rent more than tripled or quadrupled in the same period.
“In that way, I was one of the lucky ones,” he quipped.
Landlords had their ‘hands tied’
Doc’s Leathers on Queen Street West (Image: Dustin Fuhs)Doc’s Leathers on Queen Street West (Image: Dustin Fuhs)
Doc von Lichtenberg, owner of Doc’s Leathers on Queen Street West, said in an interview at his store that when the developers moved in, the city rezoned many parts of the area to accommodate them. This meant that under Ontario’s highest and best use tax policy, landlords were being taxed under the assumption their properties were multi-storey condos, even if this wasn’t the case.
Lichtenberg, coffee in hand, mans the register at his West Queen West store. (Image: Zaid Kaddoura)
Local landlord Joseph Gatto said these factors forced property owners to raise their rents up to three times more than what their gallery tenants could pay.
“We had our hands tied. There was nothing we could do except adapt,” Gatto said.
Sysak believes this gentrification has shifted West Queen West’s demographics. He noted the street today attracts more tourists and families than ever before.
“It’s still a mix. But now more than ever, at places like Trinity Bellwoods park, you see families with baby strollers or playing tennis. We have schools near us,” Sysak said.
Queen Street West (Image: Dustin Fuhs)
Bulger said he also observed this demographic shift. He said he initially moved to West Queen West because he was attracted to the independent businesses characterizing the street.
“But when I left, those vendors were all but gone. Inevitably, the families and tourists didn’t want handcut fabrics, they wanted designer brands,” Bulger said.
Sysak added that specialized retailers – like galleries – can’t adjust to drastic market shifts by virtue of their business models. Consequently, when there isn’t a demand for independent galleries, it becomes unprofitable to run one.
West Queen West pre-gentrification
Drapell’s Museum of New, just off of Trinity Bellwoods Park. Toronto, Ont. (Image: Zaid Kaddoura)
Lichtenberg said when he bought his building 29 years ago, it went for a relatively measly $60,000 because the folks who called West Queen West home scared away wealthier investors.
“The ladies of the night made their homes here, so the bohemians followed them. Consequently, so did the galleries,” he recalled.
Today, the only Bohemian you’ll find in the neighborhood is the owner of the Museum of New: Joseph Drapell – who hails from Humpolec, in Czechia’s Bohemia region.
Drapell settled in West Queen West back in 1990 when he bought his building for approximately $100,000, which he acquired from previous art dealings.
Because Drapell owns his building, he is one of few gallery owners fortunate enough to avoid being impacted by the surge in rents.
“The renters weren’t so lucky,” he said in an interview at his gallery.
In 1998, Drapell opened his Museum of New. He said back then, profitability was not a priority. It didn’t need to be. Despite his self-professed lack of business acumen, his paintings resonated with the street’s bohemian audience.
Today, Drapell said galleries can’t break even unless they cater to the strip’s new clientele, consequently compromising their artistic integrity.
“They had to sell out or move out,” he lamented.
An identity ever-changing
Queen Street West (Image: Dustin Fuhs)
Robert Sysak said he believes that for better or for worse, neighbourhoods are always changing.
“We’re growing. That means change. It’s how we survived the pandemic,” Sysak said.
But, he also added that West Queen West has not lost its unique identity as Toronto’s premier art destination.
“We still have fabric shops, Michelin-starred restaurants and BIA-sponsored graffiti murals. That’s art, too,” Sysak said.
However, just like many other West Queen West community members, he still mourns the loss of the strip’s art galleries.
“But when you lose amazing people like Stephen Bulger, you can’t sit and mope about it. You have to ask yourself, ‘What do we do now?’” he said.
Sysak said the BIA has introduced and sponsored many initiatives to support the street’s galleries.
“When we noticed we were losing galleries, we did an outdoor art and artist gallery with QR codes, tours and sculptures with OCAD students,” he explained.
Queen Street West (Image: Dustin Fuhs)
On the other hand, Gatto said this isn’t enough. He believes the stakes are too high for West Queen West to leave it only to the BIA to protect the street’s art galleries.
“The galleries are West Queen West,” he asserted.
He said because they brought in interesting people, they brought in interesting businesses, too.
“They brought a kind of texture to the neighbourhood that we’ve now lost,” he said.
He believes more subsidies, grants, and initiatives from all levels of government or the nearby OCAD University could bolster the strength of the strip’s remaining galleries.
“If the city or province wanted to implement a tax reduction for properties being leased out to art galleries, landlords would definitely accommodate,” he suggested.
Drapell lounges in front of his painting after a long day’s work preparing for an upcoming exhibition. (Image: Zaid Kaddoura)
And like Gatto, Drapell believes this exodus is a cultural blow not only to the community, but to Toronto art as a whole.
“When you focus on breaking even, you can’t dare. You make democratized, sanitized, family-friendly art catering only to the lowest common denominator of the masses,” he said.
Two of Drapell’s paintings in the central room of his gallery. (Image: Zaid Kaddoura)
Amid all this uncertainty, Gatto believes one thing is certain for West Queen West.
A report by Salesforce indicates digital online sales in Canada were down eight per cent year over year in the first quarter of this year compared to a year ago and the decline was worse than globally where it was only two per cent.
In its global Q1 Shopping Index, Salesforce, a global leader in Customer Relationship Management, said digital e-commerce in Canada was down nine per cent year over year in the fourth quarter of 2022.
The report said the per-visit average shopper spend sat at $1.99 in Q1, down from $2.71 in Q4 of last year and the overall conversion rate in Canada was 1.9 per cent compared to 2.5 per cent in the previous quarter.
Indigo Square One Kiosk (Image: Dustin Fuhs)
Caila Schwartz, Director of Consumer Insights and Strategy, Retail & Consumer Goods at Salesforce, said Europe experienced a big drop in digital sales starting to occur in late 2021 and into early 2022 and that continued throughout the year.
Caila Schwartz
“Now we’re seeing in North America – Canada and the U.S. – very similar behaviour. So we’re starting to see drops or flatness happening in digital commerce. It’s really being driven by two main factors. A decrease in traffic and a decrease in order volumes,” she said. “And our hypothesis is that it’s primarily been driven by decreased consumer sentiment.
“There’s a lot of economic headwinds at the moment and consumers are feeling pinched economically and we know that they’re making purchasing decisions – based on our research – price is the number one reason why they’re switching brands and making purchasing decisions.”
Those economic headwinds are also having an impact on the amount of average spend by consumers these days.
“The amount spent per visit is declining and we’re seeing this in Canada and we’re seeing this on a global scale. The traffic that we’re seeing coming to retailers’ websites is less profitable. So we’re seeing some really distinct shifts happening,” said Schwartz. “New customers or customer acquisition is not as lucrative as it has been for the past several years. And we’re seeing a shift now to more loyal customers driving value. The per cent or share of orders coming from repeat buyers in Q1 grew. It grew for Canada and it grew on a global level which means that those existing customers are doubling down and they’re being loyal whereas it’s getting harder to attract and retain a new customer.”
In-Store Pickup at Old Navy (Image: Dustin Fuhs)
She said the retail sector will continue to face challenges for the rest of this year.
“I see it continuing especially in North America. I think what we saw is that economic headwinds hit in Europe first and they bore the brunt of those issues for the entirety of last year,” she said. “I see warning signs that here in North America – Canada and the U.S. – it’s going to continue. This downward trend could continue for the remainder of 2023.
“What will be a leading indicator when you look at the Q2 data, and we won’t have that data until the beginning of July, but if it’s two consecutive quarters, it’s heading into a pattern. We’ve done some research, some consumer-based studies, and we found that consumers are feeling pessimistic about their economic situation and the majority of consumers say that they’re pulling back on their spend. They’re not buying as much as they were this time last year or this time two years ago. That’s in Canada and on a global level.”
Schwartz said the reason why conversion rates are trending down on a global level is because there’s strong traffic growth which is growing by six per cent year over year.
“But we’re seeing decreased order volume growth. So consumers are still coming to retailers’ websites, they’re doing more research but they’re not converting at the same rates they once were,” she said.
“In Canada, it’s actually interesting. We saw traffic volumes decrease, order volumes decrease, which resulted in conversions being essentially flat.
“What’s interesting for markets like Canada and the U.S. is we’re going to see, and we’re starting to see this with some brands that have come out into the market and laid plans for this, is a strong emphasis back on their core customer base. So understanding who their customer is and catering to the experiences that those customers want . . . I think that’s a pivot we’re going to see happen across the industry which means we’re going to see more and more emphasis on having really good data. So what is a retailer’s data strategy, how are they integrating and operationalizing that data. Ultimately what that’s going to do is set them up for success using new tools that are coming out, especially in AI. There’s a lot of excitement happening there not only on the customer experience side but on the optimization, cost-cutting side that’s going to help retailers and ultimately all of these things are going to help drive a better customer experience for those customers.”
Hudson’s Bay at Queen Street (Image: Dustin Fuhs)
Some global highlights of the Salesforce report:
After a Q4 comeback, global online sales fell two per cent year over year, largely driven by decreased demand in the US
Globally, shopping spend is at its lowest in two years at an average of $2.30 compared to $3.02 in 2021 Q4 and $2.85 in 2022 Q4
Digital traffic via desktops dropped significantly at 11 per cent, while mobile maintained at zero per cent growth ;
Desktop reigned in follow through, with cart abandonment lowest at 68 per cent compared to 79 per cent on mobile.
The full report, including global data, can be found in the full Q1 Shopping Index.
East Coast Lifestyle, a clothing brand based in Nova Scotia, is celebrating its 10th anniversary this year, is preparing to open its new headquarters, and will be expanding more in Canada and internationally.
To celebrate its 10th year, East Coast Lifestyle will be launching its anniversary limited clothing collection in May. The CEO, Alex MacLean, started the company in 2013 while studying at Acadia University and has steadily been growing.The iconic clothing symbol was created for a class project and the brand took off from there, MacLean started by just selling hoodies but now the brand includes a variety of clothing for women, men, and children, accessories, drinks, and chips.
“We have brought back the original hoodie which was the very first design before the anchor and logo and we have brought in a bunch of different designs that kind of incorporate the number ten, 2013 to 2023, and some roman numerals. You will be able to see t-shirts, hats, hoodies in the collection and then we are going to be doing more down the line – but our first capsule collection will be shirts, hoodies, and hats.” East Coast Lifestyle will also be doing a large back to school collection for its tenth year that will be released in the Fall. These collections will only be available once.
Rendering: East Coast LifestyleRendering: East Coast Lifestyle
For the 10th year, MacLean said they will be celebrating with a party when the new East Coast Lifestyle headquarters is up and running and will hopefully have a DJ, catering and new collections. MacLean said they are looking forward to celebrating the grand opening of the new building, which has been a two year project, and to have a “big ten year party” with the community.
New Headquarters
Image: East Coast Lifestyle
The new East Coast Lifestyle headquarters, located in Bayers Lake, broke ground in June 2022 and after years of planning the building is now in the final stages. MacLean said the goal is for it to be ready by September. The headquarters will not only be for retail space, it will also be a place for the community as it will include picnic tables, a coffee shop, a basketball court, and a place where people can enjoy its East Coast Lifestyle beverages.
“The building is just over sixty percent right now, so they are saying they will be completed by the end of June, which will allow us to get in the building by July and start fabricating the inside of the building with things like desks and office tables. We will need at least a month or two to prep the interior of our storefront. It has been a long two years working on it and we are really excited to see it come to life and we can’t wait to get in there.”
10 Years of Growing and Future Plans
Image: East Coast Lifestyle
“I was 21 when this all started out and I was very new to the world of entrepreneurship. It was challenging and I had to do a lot of research and hire great people which allowed the businesses to grow pretty quickly. I was really focused on marketing and was really bad with accounting and finance, so knowing my skill set when I was 21, I was thankful to be able to hire people who could help me in those areas.”
Looking at today, MacLean says his main challenge of a growing business is finding the right staff and has learned throughout the years to not rush the process and to take things slowly.
“Hiring is important to us. So instead of going out and rushing to hire someone today, we really hire slow. We take our time to look at the pool of people that applied and really take our time to hire the right people. We are really passionate about what we do and we need our staff to feel the same way. All the people working with East Coast Lifestyle love what they do so we need to make sure we hire the right people for the brand.”
MacLean mentioned he has recently hired an additional salesperson to take on East Coast Lifestyle’s expansion into the United States as the US market is their main focus right now: “we are really trying to break down the door of the USA and try to get into that new market – particularly by attacking a few states.” No locations are known at this time.
East Coast Lifestyle also has plans to continue its growth within Canada. Back in 2022, the brand collaborated with Bauer Hockey which allowed its products into more stores out West. Now East Coast Lifestyle is looking to make the collaboration stronger by looking at expanding into more stores throughout Ontario and Alberta as MacLean sees high potential as there are a lot of people who are familiar with the brand. Stores and locations are unknown, but will be announced once confirmed.
Mos Mos at WaterPark 20 Bay Street (Image: Mos Mos)
Mos Mos Coffee is the new generation coffee experience. Created in 2014 in Toronto, the Mos Mos view is simple – brew the perfect cup of coffee experience. There is no doubt that life in the city can be busy, but Mos Mos is on a mission to help remind us to take a few minutes out of our day to “Mos Mos”: cut the noise and savour the moment.
And the coffee shop is continuing to expand its reach in the greater Toronto area with plans to extend its footprint beyond the Toronto region.
There are currently 10 locations with two more under construction. The most recent opening was at 1 University Avenue across from Union Station.
Mos Mos at Commerce Court (Image: Mos Mos)Mos Mos at Exchange Tower (Image: Dustin Fuhs)
Armin Yassaie, one of the partners in the business, said after the opening of the first Mos Mos location at 199 Bay Street (Commerce Court), the first three years were dedicated to fine tuning its concept, curating the well-known drinks that Mos Mos customers have come to know and love. In 2017, Mos Mos opened its second location at 130 King Street West (Exchange Tower), and what would initiate its expansion.
Armin Yassaie
“We found out we had something special here and we wanted to bring that experience to more and more people in the Downtown core,” said Yassaie. “Later that year we opened our third location, and we continued to expand from there”. In 2019, Staples Canada approached us prior to the launch of their co-working concept to join forces.
“The debut of the Staples [STUDIO], which is a co-working concept where people can come and have a coffee, have meetings while also able to shop and access an array of marketing and printing services. We opened our fifth location at the Staple’s 375 University location. The launch went great and we decided to join forces again to open a second location at the Staples 517 Richmond Street East location.
“The impacts on COVID were not something we could foresee. We had to quickly pivot. We are proud to say that we did not permanently close any locations, although during peak COVID, the stores were drastically slower. We had to fine-tune the operations and logistics to get through that time and saw it as an opportunity to focus on other aspects of the business like launching our franchising platform. We launched franchising at Mos Mos and we now have five franchisees that own eight stores. We have fantastic franchisees that are dedicated to the Mos Mos mission and ensuring our customers are getting the same quality experience they have come to know us for. We work with our franchisees to collaborate so they can come to us if they have an idea on how to elevate our experience at Mos Mos. We want feedback from everyone, whether that’s our franchisees or our customers.”
Image: Mos Mos
He said the company has been approached for other areas outside of downtown Toronto in other cities including Vancouver and out west, however, we want to be fully ready for an expansion outside of Ontario, and are hopeful that day will come sooner than later.
“That may not be in the works right now since our focus is on our Ontario operations but it’s certainly a goal for the future,” said Yassaie.
The coffee shop’s name comes from Yassaie’s business partner and Mos Mos founder, who is Kenyan. The word originates from a dialect of Swahili they speak in Kenya and it means ‘savour the moment.’
“We try to go above and beyond and it’s not just the product. It’s also the service and the experience.”
“At Mos Mos there is something for everyone. Whether you are looking for the perfect cup of morning coffee, a new wave “double, double” experience, a smooth and balanced handcrafted latte, or a warmed spiced Chai, we have you covered. We are excited to see where we can take this and thank all of our loyal customers who have been with us throughout the years and who we share a part of each day with”
