Future Ballroom Social at 1 Bloor (Image: Dustin Fuhs)
The Ballroom Bowl is where the good times roll in Toronto.
And the concept is rolling into more locations including replacing the McEwan grocery store at 1 Bloor East in Toronto, just off the corner of Yonge and Bloor Streets, and offering its Ballroom Social experience with bowling and an elevated food and beverage menu.
The launch comes following the success of the downtown Ballroom Bowl in Toronto’s Entertainment District. Ballroom Bowl describes itself as Toronto’s “coolest” interactive entertainment centre with 23,500 square feet including 10-pin bowling, dozens of TVs, a rooftop patio, music and elevated pub fare.
The Ballroom Social is expected to open in the fall.
Future Ballroom Social at 1 Bloor (Image: Dustin Fuhs)Rendering The Ballroom Yorkville (Image: mcCallumSather)
“We are the only bowling alley in the City of Toronto for 13 years running. Obviously moving into Yorkville in the fall of this year, the holiday season, that in and of itself is very unique and I’m very excited about that opportunity and looking forward to bringing what we do downtown in the Entertainment District, bringing the chique, luxe, aspect of it to Yorkville and knocking it out of the park with First Capital (property owner),” said Donato.
“There’s going to be no competition. We’re going to a great location, a great building in Yorkville. It’s going to bring a whole new dimension to the neighbourhood. That’s the most exciting part. We’ll be beside Chick-fil-A’s Canadian flagship location. I’m really pumped about going in there.”
Alex Edmison of CBRE negotiated the lease deal on behalf of Ballroom and is representing the brand nationally for any potential future location expansions.
Future Ballroom Social at 1 Bloor (Image: Dustin Fuhs)Rendering The Ballroom Yorkville (Image: mcCallumSather)
Eric Sherman, Vice President of Real Estate for Yorkville with First Capital Realty which owns the property where the Ballroom Social will debut, said the new location will be close to 20,000 square feet with a street level presence but the majority of the space on the lower level.
Eric Sherman
Sherman said First Capital owns about $1 billion worth of assets in the neighbourhood including Yorkville Village, several properties along Yorkville Avenue and the retail at Yonge and Bloor.
“For us, we’ve been looking to bring unique concepts that bring a level of entertainment, a level of destination, something that is going to create excitement and activity in the neighbourhood,” said Sherman.
“Paul has been operating the Ballroom for 13 years so he brings a track record of a very good operation, very well-known and recognized in the city and across the country. His vision to create a concept in Bloor Yorkville that elevates and brings a bit of a different spin on his already successful concept is something that’s very attractive to us. It’s a very good use for this challenging space.”
Image: The Ballroom BowlImage: The Ballroom Bowl
Donato said the goal is to add many locations of the concept including outside of Toronto.
“I’ve been aspiring to make this move for some time but it takes awhile to get things where you need them and to learn the business and to move forward and turn it into the national brand that I intend to turn it into,” he said.
“When I signed the deal to finance the original project in 2010 obviously there were no bowling alleys in the core of the City of Toronto and the industry in Canada was dying. On death’s door. The US was going through a bit of a struggle as well. I would say that the Ballroom Bowl – it’s a bold statement and I know it to be true from other proprietors now in the country – has re-pioneered the growth and popularity of bowling, not just in the city but in many other cities across the country.
“To be going into Yorkville and other locations subsequently after that is really exciting. It’s a growth industry. People love doing it and unlike golf and hockey and all the other sports, Canadians in general kind of forgot about bowling. We’re always busy downtown and we’ll always be busy in Yorkville and we’re going to bring a high end boutique to that neighbourhood and I’m sure it’s going to be a grand slam.”
There are four basic concepts – Ballroom Bowl, Ballroom Social, Ballmart (which will move out into the suburbs) and the Ballroom Bowl Mechanical, going into Yonge and Dundas and other locations.
“There are four different concepts that we will be rolling out across the country,” explained Donato.
Continuing the trend towards the end of 2022, Canadian retail sales started with minimal growth in 2023 with All Stores in January growing 5.5% YOY and All stores Less Automotive, Food, Pharmacies up 4.5% YOY.
The first element to remember when comparing January 2023 to January 2022 is that there was a lockdown in Ontario last year. With Ontario typically contributing to around one-third or more of total Canadian retail sales, this has a large impact on national retail sales.
Even when considering the lockdown, it is still surprising to see that Clothing and Accessories Stores increased by 21.3% YOY in January. The subcategories grew impressively, at rates of:
Clothing Stores: Up 23.2%,
Shoe Stores: Up 43.6%, and
Jewellery, Luggage and Leather Good Stores: Down -6.4% YOY.
These abnormalities are likely directly related to the fact that Ontario was in lockdown in January, 2022. When comparing sales to 2019, the numbers are much more normalized:
Clothing Stores: Up 11.3%,
Shoe Stores: Up 11.4%, and
Jewellery, Luggage and Leather Good Stores: Up 20.6% YOY.
The other standout category in January is Food and Beverage Stores, down -0.7% YOY. The largest drop off in this category is Specialty Food Stores, down -12.5%, but all categories grew at a rate below inflation, which is 10.4% in January for food prices. When the JCWG team discussed these changes, we landed on the fact that people are still only spending what they have. There are few people whose income has increased by 10% over the past year, so the distribution of where they are spending their food budget has changed. Consumers are looking for better pricing, moving towards Walmart, Costco, etc. for grocery, which was shown through the 7.8% YOY increase in General Merchandise Stores. Specialty Food Stores include butcher shops, cheese shops, etc. which have been some of the most impacted products from inflation.
Nordstrom at CF Chinook Centre (Image: Nordstrom)
2023 promises to be a tumultuous year for Canadian retail sales. Inflation is very relevant, customers have resumed most of their previous shopping habits (hopefully for good), and we are still in the throws of a recession. With that being said, major disruptions with chain retailers in Canada, namely the exit of Nordstrom and the re-entrance of Zellers will impact the coming months. This has the team thinking about:
Where will current Nordstrom customers shop for their mid-luxury/luxury products?
How long will it take for shopping centres to fill the Nordstrom vacancies and how will the vacancy impact traffic flow and footfall?
How many, if any, current discount department store customers will change their habits to Zellers, and away from Walmart, Costco, Dollarama, etc.?
What international retailers are currently eyeing Canada for expansion opportunities?
How are YOU prepared for the changed Canadian retail landscape?
Canadian Retail Sales by Product Category, Same Month ComparisonCanadian Retail Sales by Product Category, Same Month ComparisonCanadian Retail Sales by Store Category, Year to Date Comparison (Part 1)Canadian Retail Sales by Store Category, Year to Date Comparison (Part 2)Retail Trade, Canada, All Stores, by Geographic RegionsRetail Trade, Canada, All Stores, by Geographic Regions
This analysis by J.C. Williams Group is updated monthly as new numbers are published by Statistics Canada.
J.C. Williams Group focuses solely on Retail sector strategy and consulting. The breadth and depth of our functional areas of retail specialization enable us to bring to each engagement a holistic perspective and expertise that provides both insightful and actionable recommendations.
Tiffany on Burrard Street in Vancouver (Image: SAJO)
Within the fast-paced confines of retail – an industry that moves at speeds unimaginable to most people – time is of the essence. Its use by those operating in and around the sector most often defines outcomes that range from unforgiving failure to incredible success. It can yield benefits that are derived from its passing, like the tenure and experience that’s amassed by virtue of bearing witness to a plethora of consumer and market trends, shifts in behaviour and the evolution of preferences and desires. And, depending on the amount of it that’s been accrued, in combination with the ways in which resulting experiences have been leveraged and learned from, time can bestow wisdom, knowhow and credibility upon its holder. For SAJO – the globally renowned design-build firm that’s celebrating more than 45 years in successful operation – its time is marked by the company’s innovation, creativity and artisanal approach, and the continued growth of its remarkable reputation.
Evolution and growth
Nick Tedeschi & Sal Guerrera
Founded in 1977 in Montreal, Quebec, SAJO has steadily built on its operations through the years, from its humble beginnings in a single rented room in a Montreal office building to its presence and stature today with offices in Miami, NYC, London, and Milan, in addition to a number of satellite locations in cities throughout North America. During its nearly half century of business, the company has also expanded the suite of services that it offers its clients to include everything from design and procurement to project management and construction all the way through to post hand-off, while covering all points in between. It’s evolution and growth that’s testament to the quality of work that SAJO has been responsible for over the course of the past four-plus decades. And, according to Sal Guerrera, CEO and Co-Founder of the design-build giant, its evolution and growth that’s been driven by the company’s holistic and artistic approach.
“The company was founded with an appreciation for art and culture and the ways that those elements in combination with architecture can be applied to create extraordinary environments,” he says. “We set out to express ourselves through building and design and to provide the services that our clients and partners need in order to execute their vision. We never intended to build a national or international company. It wasn’t ever one of our goals. We simply wanted to create and contribute our expertise where it was needed. We also never intended for our services to have expanded in the ways that they have or to be involved in as many sectors as we are. It’s all happened very organically. Its an evolution that we’re extremely proud of, and one that continues today.”
Seizing opportunities
Guerrera’s sentiments are echoed by fellow Co-Founder and President, Nick Tedeschi, who recognizes the ways in which the pair have leveraged their shared love and admiration for art and culture to succeed in such a competitive market. However, he adds that it’s their penchant to challenge themselves and their capabilities that has ultimately provided them with the impetus to sustain persistent expansion.
“Sal and I are both very curious by nature,” he admits. “And that curiosity has always challenged us and driven us to seize on every opportunity that’s made itself available. Instead of shying away from these opportunities, fearing the difficulties that might be involved or the complexities related to expanding into the U.S. or Europe, we approach things in a different way. Our curiosity compels us to figure out the complexities of any given opportunity and build a business plan around it.”
Retail synergies
Loro Piana Flagship in NYC’s historical meat packing district (Image: SAJO)Loro Piana Flagship in NYC’s historical meat packing district (Image: SAJO)
Tedeschi likens the opportunities that the company’s capitalized on through the years as seeds that have been planted, cared for through the sprouting process and nurtured into a full-grown plant. As the analogy goes, SAJO’s seeds have flourished throughout a number of sectors, working to conceptualize and convert real estate properties into multi-dwelling housing projects; building infrastructure projects related to public education, healthcare, social housing, recreational facilities and institutional buildings; upgrading utilities and telecommunication infrastructure; and, of course, a vast amount of work within commercial retail. In fact, SAJO is known throughout the industry as the first specialized retail builder in Canada, working with some of the biggest, most prestigious brands that have operated within the country over the better part of the past 50 years. It’s work that represents a significant piece of the company’s legacy, and made possible, suggests Guerrera, by the synergies it shares with the industry.
“Retail is all about instantaneous sensations,” he says. “It’s about a give-and-take relationship between the retailer and the consumer. And the environment in which this relationship takes place is critically important, helping to create an atmosphere that facilitates engagement, reenforcing a brand’s story and enhancing the experience received by the customer. Creating, being able to execute on the construction and building of a vision, also results in the same kind of sensations, imbedding our influence into the environments we conceive. The fact that we’ve made a name for ourselves designing and building retail spaces has a lot to do with this connection – the art behind the entire experience.”
Deep industry understanding
Louis Vuitton Flagship at NorthPark Mall in Dallas (Image: SAJO)Louis Vuitton Flagship at NorthPark Mall in Dallas (Image: SAJO)Goyard at Highland Park Village in Dallas, Texas (Image: SAJO)
It’s a connection that’s recognized by Tedeschi who says it’s one that’s been cultivated through years of experience and hard work. It’s one that’s also allowed SAJO to hone its expertise, positioning it as one of the leaders in the commercial retail construction space. And, during this time, adds Tedeschi, the credibility of the company’s services and offering has grown exponentially in the minds of its clients, helping to build on its reputation as a trusted partner and developer of world-class projects. It’s also provided the SAJO team with an inordinate amount of market experience, lending toward what Tedeschi describes as a “deep understanding of the industry” and a wealth of knowledge.
“Retail is an incredibly fast-moving industry,” he asserts. “Brands are required to think fast and act fast in order to continue advancing their businesses and improving their offering. A big part of this requirement involves frequent transformation or else brands will find themselves left behind. We know this about the industry and the fact that brands have got to constantly reinvent themselves. It’s an understanding that allows us to ask the right questions. But, in the end, it’s all about listening to the retailer to understand exactly what they want. It’s up to us to execute to help satisfy those needs.”
Design-build expertise
SAJO collaborated with Foster + Partners on Building an Iconic Apple Flagship in Brooklyn
Celine at 40 Bond St. London, UK (Image: SAJO)
For a company that’s helped to erect environments for Louis Vuitton, Dolce & Gabbana, Celine, Christian Dior, Kith, Goyard, Loro Piana, Tiffany & Co, Alexander McQueen, Moncler, Prada, St-Laurent, Apple, Nike, UNIQLO, and Tesla, just to name a handful, it almost seems as though it could rest on its laurels, so to speak, and bask in the fruits of its prior labours. However, Guerrera, Tedeschi and their team have no such plans. In fact, SAJO is extending its relationship with Apple to develop its latest iteration of store environment. In addition, it recently designed and built the first Lucid Motors locations in the country in Toronto, Vancouver and Montreal, as well as helping to introduce Vietnamese electric vehicle company, VinFast, to the Canadian market with its smart design and building expertise.
It’s a highly impressive list of current retail projects and accounts – one that’s reflective of SAJO’s scope of capabilities and focus on continuing to realize opportunities within the sector. However, what might be even more inspiring is the way the company’s embraced corporate and social responsibility throughout its history, providing sponsorship to numerous charitable causes and organizations, and steadfastly supporting and contributing to the betterment of the social fabric within the communities that it works. It’s a responsibility that Tedeschi says the company takes very seriously, making it a necessary lens through which each project must be viewed.
“Just as we’re committed to contributing to social causes that improve the communities around us, we also pledge to always improve and develop new green building practices and promote the responsible use of materials and natural resources in order to enhance our sustainability efforts and improve our environmental impact,” he says. “It’s an incredibly important aspect of what we do at SAJO and a way in which we can help protect the future of the planet.”
What’s in store?
Dior at 131 Bloor Street West (Image: SAJO)Dior at 131 Bloor St West (Image: SAJO)
Having amassed such a storied history to this point, and a list of credentials and project executions as lengthy as any out there, SAJO has clearly achieved the goal that Guerrera and Tedeschi set out for themselves when the company was founded more than 45 years ago – to help create environments through artful creation. And, when asked about the future of the company and what it has planned, the pair are as focused and committed as ever to delivering quality and knowhow of the highest possible standard. In fact, Guerrera says that SAJO is currently expanding further in efforts to continue diversifying its services and support its core offering.
“We’re on the verge of opening Astra IPT, which is a studio of integrated project technology meant to enhance the services provided by general contractors, architectural firms and developers. And, we also want to start leveraging data and artificial intelligence in order to enhance project management even further and simplify the work, enabling the identification of potential issues and ways in which those issues can be addressed. The construction industry is one that hasn’t really changed over the course of the past 100 years or so. And what we’re doing is creating an intersect of architecture, art and technology that will revolutionize the way things are done and the way environments are designed and built, helping to create those instantaneous retail sensations.”
Loblaw Lower Jarvis in Toronto (Image: Dustin Fuhs)
Many surveys suggest that Canadians firmly believe grocery chains are profiteering from food inflation and pushing prices higher unnecessarily. Meanwhile, many experts believe some profiteering is a reality in parts of the industry, and not just in food retail. The reality is that food inflation is a worldwide phenomenon, as Canada has the third-lowest food inflation rate within the G7+EU (9.7% for February, 2023), after Japan (7.5%) and the United States (9.5%). However, consumer trust is critical for governments and the food industry. We wanted to know how much that trust has been eroded in recent months. While the Competition Bureau is currently studying the food industry and will table its report in June, the Standing Committee in Agriculture and Agri-Food in the House of Commons (in which many experts have participated so far, including the top CEOs of major grocery chains in Canada) is investigating food inflation.
Working with Caddle, our Lab conducted a cross-national survey at the end of March 2023, which included 9,884 respondents, a massive sample. With this investigation, we looked at how Canadians saw CEO’s performances when they testified before the Standing Committee in Ottawa. We also looked at which factors Canadians believe contribute the most to food inflation, and what can be done about it.
We first asked if respondents have been following the recent parliamentary committee hearing on agriculture, where the leaders of Canadian grocery chains were defending themselves regarding food inflation. Only 35% said that they have been following the proceedings. Of those Canadians who did follow the proceedings, only 32.9% felt grocers were either very convincing or convincing during testimonies. The majority remained unconvinced. Only 24.7% felt grocers were transparent and forthcoming enough about the data they shared. So, in general, Canadians were not overly convinced by grocers.
While grocers are heavily criticized, answers are a little more varied when asked to choose one factor contributing to higher food prices. A total of 30.3% of Canadians think grocery chain price gouging is the main reason food prices have been rising in Canada recently. A total of 29.9% believe inflation (or monetary/fiscal policies) are to blame as the main contributing factor for higher food prices. In fact, both Quebec and Saskatchewan are the only provinces where the highest percentage wasn’t grocer price gouging, but rather inflation/monetary/fiscal policies. A total of 36.1% of Quebecers believe monetary policies are the main factor for higher food inflation, and 32.1% of people in Saskatchewan think the same.
We asked questions about what grocers can do to help consumers. While 46.6% would appreciate more price freezes, 44.2% expect more transparency related to food sales specifically. While 36.4% of respondents wish loyalty programs would be more generous, a total of 33.4% of respondents would like more competition in Canada.
We asked questions about what governments can do. A total of 44.0% of respondents believe that governments should intervene and regulate the price of some staples at the grocery store. Only 19.1% believe government should implement a windfall tax. A windfall tax would be a tax levied by the government on unexpected profits or gains that are not part of a company’s normal business operations. A total of 4.5% of Canadians believe the government should create a crown corporation and start its own grocery chain. Can you imagine seeing the government run its own grocery chain? The government already runs a crown corporation which competes with banks in the agri-food sector. It’s called Farm Credit Canada. So, it’s not impossible.
The survey asked specifically about the proposed “Grocery Code of Conduct,” for which we should get an update in April from Minister Marie-Claude Bibeau. We asked if Canadians were supportive of the “Grocery Code of Conduct” which would lessen the influence of some major grocers and help independent grocers and processors. Of Canadians who were aware of a “Grocery Code” (n=3366), 68.1% are supportive of such a code. The province with the highest percentage of support is Nova Scotia where 76.5% of respondents are supportive of the Code, followed by British Columbia with 74.5%. The lowest levels of support are in Prince Edward Island (53.2%) and Manitoba (64.2%). These are surprising results, higher than expected.
The Grocery Code of Conduct is not just a set of rules, it’s a lifeline for Canadian shoppers. It ensures fair pricing, transparency, consistency, and accountability from retailers, giving consumers the peace of mind they deserve when purchasing their groceries.
In a nutshell, this survey showed that a good number of Canadians do understand what the real issues are in our Canadian food economy, and we shouldn’t rely on social media to make any judgment on how Canadians understand how food prices are set. We simply need more competition and more protection for consumers. While we need a practical Grocery Code of Conduct, we also need to make Canada a more attractive place to invest.
Canadian performance apparel brand DUER has officially opened its newest concept storefront in Mississauga’s Square One Shopping Centre.
The 1,700 square foot Square One store is located on the second floor of the shopping centre, across from Michael Hill and around the corner from Hudson’s Bay and the recently opened MEC shop-in-shop.
“The Greater Toronto Area is Duer’s fastest growing Canadian market so we’re optimistic about how these stores will perform,” shared Gary Lenett, Co-founder and CEO of Duer in Retail Insider’s expansion interview. “We see our new retail footprints as a way to connect people with the brand but also as community hubs where we can bring the Duer ethos to life.
DUER opened its first location in Vancouver with a Gastown storefront in 2016 and has since established Canadian physical brick & mortar stores in Calgary and Toronto.
DUER Square One (Image: DUER)Duer at Square One
The Square One pop-up store features adventure and landscape photography, storytelling the environment the clothing was designed for along with the brand’s preference for plant-based fibres over synthetics.
And, because it all started with the world’s most comfortable pants, the store features a dedicated “pant wall”, highlighting some of the brand’s bestselling pieces including Performance Denim (which started it all) and the No Sweat Pant.
DUER’s Square One pop-up store opened on April 1st, 2023.
DUER Square One (Image: DUER)DUER Square One (Image: DUER)DUER Square One (Image: DUER)
DUER has continued to grow its global business throughout the pandemic, which has included significant investment in the US market with openings in Denver (2020) and Los Angeles (2021).
The brand now has a distribution model of over 800 independent wholesale retailers and store-in-store offerings at REI, MEC and Holt Renfrew.
Additional Images from DUER at Square One Shopping Centre
DUER at Square One (Image: Dustin Fuhs)DUER at Square One (Image: Dustin Fuhs)DUER at Square One (Image: Dustin Fuhs)DUER at Square One (Image: Dustin Fuhs)DUER at Square One (Image: Dustin Fuhs)DUER at Square One (Image: Dustin Fuhs)DUER at Square One (Image: Dustin Fuhs)
Blazing A Trail Through Male-Dominated Industries [Interview]
For years, Deb Craven has been blazing a trail through male-dominated industries including sports and apparel, logistics and now grocery retail as the Chief Operating Officer of Longo’s.
Her career path has been unique with positions over the years with NIKE, SportChek, Marks and Purolator.
She has built an incredible career grounded in hard work, supportive managers, curiosity, and having the confidence to speak her mind, even when she was the only woman in the room.
From her decades of experience, Craven is a treasure-trove of advice:
Don’t worry about what everyone else in the room is thinking about you. (A piece of advice one of her first managers ever told her. That same manager continues to be a mentor for Deb.)
Be curious and ask questions.
Learn everything about where you are. Don’t be afraid to go outside of your swim lane.
Count on yourself. There is strength in being independent (a lesson she learned from her grandmother and mother, and her daughter)
Use your skill set to your advantage. They have many uses and give you more opportunities than you know.
Surround yourself with people who champion you. (Deb is still friends with a group of women who met in Kindergarten!)
Determine what balance means for you and get comfortable with it.
Make sure there are diverse voices around the table and encourage them to speak by giving them the space to do so.
Every complex issue is solvable if it is understood and worked through as a team.
Women are unique in their ability to empathize, bring emotional intelligence, and create safe spaces, something others can struggle to do. When our team members open up to us, we can more easily unearth what is really going on and what needs to change. As a leader, we can then champion those changes.
People think that being strong doesn’t translate to being kind, but it does; there is a lot of strength and success in being kind. The best relationships at work happen when you take the time to get to know people and allow vulnerability on both sides. These are traits of women leaders.
Career Highlights:
Received her Certified Accountant designation after graduating from university
Chief Financial Officer for Nike Canada
Chief Financial Officer for Purolator Canada
Senior Vice President for Sport Chek and Mark’s
Chief Operating Officer, Longo’s
Receiving the peer-nominated Star Women in Grocery award
In this video interview, Craven discusses her career and advice she has for other women looking to advance in the world of business.
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.
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.
Phil Song’s passion all rooted from skateboarding led to kadence.world, a sub-culture agency in the world of arts and culture, including the new bevy cafe.
Song said kadence.world is all about co-creating with brands that want to connect with sub-culture communities offering unique methods and re-invented marketing services.
Part of the initiative includes the bevy cafe and space which now has two locations in Toronto – the first at 738 Dundas St. E. and the latest in The Combine complex at 225 Wellington St. W.
Bevy Cafe at The Combine (Image: Dustin Fuhs) Bevy Cafe at The Combine (Image: Dustin Fuhs)
Phil Song
“During the pandemic when we got hit, we really wanted to create like a home base for what we were doing pre-COVID in creating a hub for the sub-culture communities that we’re a part of to come and be able to produce art and skate,” said Song.
“And I guess like when things were really closed have a platform for people to come together. We actually acquired the original bevy space in Regent Park in Toronto during the pandemic times. So we’ve had this space for over two years but what’s great about it is we didn’t open until about eight months ago. The space was built with the community. It’s a multi-use space. We have a cafe, skate, paint shop and an event space.”
Song said the two locations are a pretty big contrast.
“The first location is in Regent Park which is a pretty hard core, revitalized neighbourhood. It was the first I believe government housing project in Canada, or maybe North America. The other location, The Combine, is in the CBC building so it’s right in pretty much the core financial district of Toronto.”
At The Combine, kadence.world is also helping curate some events in the event space area and helping rotate concepts for a pop-up retail shop.
Song said he has plans for more locations but not any time soon.
“We just (opened) the two locations. I’m pretty happy and blessed that we have a lot of steam and we’ve got a lot of community love and support,” he said. “It is a goal. It’s a platform for the community but it’s a business as well. Even the cafe side. I’m not going to pretend I’m a great coffee barista/owner so I’ve partnered up with another coffee business which is really great at building community and have five other locations across the city.”
Bevy at 738 Dundas St E (Image: Dustin Fuhs)Bevy at 738 Dundas St E (Image: Dustin Fuhs)
Song said the goal of kadence.world, which began just over a decade ago, is to co-create with friends with sub-culture communities.
“Originally it was a skateboard distribution, licensing, retail model. It sounds like it was a planned business but it was a lot of community building which gave us opportunities. A lot of brands started reaching out and said hey we loved your support on the brand licensing side for all of sudden I learned how to do an import/export business but doing I think the marketing side and being able to get budgets and do rad things for the community is kind of what led us to today on a more service model type of business,” he said.
It includes MURUS (Mural Production & Outdoor Media).
“Rather than your traditional billboards we have an inventory of walls across Canada where we co-create with brands and street artists to do murals. We do activations like listening parties, video premieres, workshops and talks to a lot of content creation,” he said.
Foodtastic is partnering with QSRP to bring at least 50 O’Tacos locations to Canada beginning later this year.
QSRP owns the O’Tacos brand which was founded in 2007 in France and currently has more than 300 locations.
In return, QSRP will expand the Pita Pit brand, owned by Footdtastic, in France and Western Europe by opening 50 Pita Pits. There are also more than 300 Pita Pit locations overall.
“QSRP is one of the fastest growing and leading operations in France and Western Europe, we look forward to working closely with them on this bilateral initiative to expand O’Tacos in Canada and Pita Pit in France and Western Europe,” said Peter Mammas, CEO of Foodtastic.
“Foodtastic has proven to be a leading operator in Canada and is therefore the perfect partner to expand the O’Tacos brand in North America. There are no limits to our hunger to keep on developing our brands, focusing on innovation, creating new partnerships where our guest is always in the centre of our mind,” said Alessandro Preda, CEO of QSRP.
Image: O’TacosAlessandro Preda, CEO of QSRP and Peter Mammas, President and CEO at Foodtastic
Mammas said the O’Tacos brand is one of the most popular quick service restaurants in France.
“It’s owned by a company called QSRP which is also the largest Burger King franchisee in Europe. They bought this brand a couple of years ago and they doubled its size within 36 months,” said Mammas.
“It’s kind of a take of a mix of burrito and taco. It’s something in France that’s very popular called a French taco. So basically they fill a burrito with creamy cheese inside and it’s been a runaway hit, especially with students and people on the go.”
Foodtastic owns 23 different brands.
“The first one they (QSRP) are going to take is Pita Pit and hopefully if the deal between us goes well, they’ll long board some more of our brands for Europe,” said Mammas.
He said the hope is to have the first O’Tacos location open by late this year.
“We’re going to concentrate basically in Quebec and then we’re going to move out West towards Ontario. But I think the major core is Quebec and Ontario for right now,” said Mammas.
Image: O’TacosImage: O’Tacos
There could also be potential for future growth, he said, if the concept takes off like it did in France.
“It’s something that’s completely different. I think here in North America people are used to burritos more like Quesada or Chipotle. It’s going to have to take some learnings. That’s why we’re going to start in Quebec because Quebec is very tied to France. They kind of know a lot of the brands there. So it’s just easier for us to launch here. And we’ll go to Gatineau and right after Gatineau we’ll step over into Ottawa and then move down towards Toronto.”
Mammas said the Canadian locations will be a mixture of pickup and delivery (about 800 square feet) and some with seating of up to 1,500-1,700 square feet.
“It’s more street level. To start off we’re going to target a lot of the colleges and universities. That’s where it seems it’s done the best in France. So we’ll start off with that and then we’ll probably do some more high traffic locations. But mostly street,” he said.
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.
Zellers at Erin Mills Town Centre (Image: Erin Mills Town Centre)
Craig and Lee discuss the relaunch of the iconic Canadian retailer including what’s in-store, and Craig’s opinion of the success of the future of the new Zellers concept. Included is a discussion on Zellers’ new Anko line and its various categories, which has seen success at Kmart Australia where it first launched.
The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out ourThe Interview Seriespodcast where Craig interviews guests from across the Canadian retail landscape as part of theThe Retail Insider Podcast Network.
Announcer 0:00 This is a Retail Insider podcast. You’re listening to “The Weekly”.
Lee Rivett 0:08 Welcome to this week’s episode of “The Weekly” by Retail Insider. I’m Lee Rivett and I’m joined with the owner and publisher of Retail Insider Media, Craig Patterson, to discuss this week’s most read articles on retail-insider.com. So thanks for joining me, Craig!
Craig Patterson 0:22 Hello, everyone.
Lee Rivett 0:25 Craig, on March 22nd, you had the opportunity to head over to Scarborough Town Centre, and look at the new Zellers location that opened. You’re quite impressed so you wanted to have a podcast on that, which is very exciting, because we’re going to be getting one in downtown Vancouver as well, but it just hasn’t opened yet. So Craig, tell me about your Zellers visit.
Craig Patterson 0:46 So I wasn’t I mean, I sort of knew what to expect when we saw the Zellers because we were told what the concept was about. So just as a bit of a recap, what the Hudson’s Bay Company has done is it’s relaunched the Zellers brand. These are shopping stores within existing Hudson’s Bay department stores in Canada. Each of these shopping stores are somewhere between about eight and 10,000 square feet. So they’re about 1/10 the size of these Zellers stores that people would have known that existed up until about a decade ago in Canada.
Lee Rivett 1:15 What do they look like?
Craig Patterson 1:16 The appearance of these new Zellers 2.0 (as we’ve coined it) definitely looks like the old Zellers stores in terms of the aesthetics – with the red and the white and the branding and the logo. So it’s very much a nostalgia play that could work at least to get people in the door initially. But I can tell you a little bit about what I experienced inside the space because I was pleasantly surprised, at least with the products and what was there.
Lee Rivett 1:42 Walk us through it like you’ve got there and what happened?
Craig Patterson 1:45 So got into the Scarborough Town Centre location, it was Tuesday evening, the stores open to the public on Thursday, and had a look around and we had an opportunity to shop the store as well. So there was a little bit of a talk about what Zellers is and the product and then they basically just sent us on our way there was a DJ music and, some food, we got to try some of the food that would be in the food trucks, which are driving around Canada to these different Zellers locations.
Lee Rivett 2:10 So Vancouver hasn’t opened yet, which locations have opened for Zellers?
Craig Patterson 2:15 On Thursday, 12 of the 25 announced Zellers stores open to the public and then – well Lee, you’re in Vancouver, so you have to wait a little bit, you’re getting one in downtown Vancouver, but the remainder of those 25 initial locations will open and I was chatting with some Zellers people there and even the president of Hudson’s Bay was there, or The Bay I should say. And there are plans for more locations, nothing was confirmed in terms of the actual locations. But if this is successful, and takes off, there could be more is what the official word is, I suspect there will be a few more at least
Lee Rivett 2:44 I was very confused. When you came back from that location and was super excited about the products that were there. For me, that was a big question mark (mystery) because what was Zellers going to do to try to make it relevant and make it interesting for people to have a reason to come in. So Craig, tell us about that as your excitement was completely a surprise for me.
Craig Patterson 3:06 I had written an article already about this and done a little bit of homework around the core brand, which Hudson’s Bay is brought with Zellers into these Zellers shop-in-stores. Now this brand is called Anko which is a brand, which originated in Australia through Kmart, Australia. It’s their private label. And this brand showed tremendous success in the Australian market to the point that the company said, “Well, let’s distribute this around the world to other retailers so that they can also have this brand within their stores”. Brilliant move on their part, the first international market outside of Australia, where Anko is now being distributed, of course, is within Zeller stores here in Canada, and we’ll see more of this in some other countries. We’re saying that I read an article in the Sydney Morning Herald from the gentleman that is involved in this in Australia. And he’s saying that there’s going to be more countries with more stores having this as well.
Lee Rivett 4:01 What what did the Anko brand products look like?
Craig Patterson 4:06 So I got to actually see this Anko line in action or guy got to see the products within the Zellers stores. And I have to say, I was quite impressed actually, with what’s on offer in terms of what the goods look like. Well, I could see in terms of I think, quality, I’m not the greatest person to judge that. But the pricing was absolutely tremendous. I don’t know if the “Lowest Price is The Law”, but it certainly was not that expensive overall. And I spent money there on that evening as well.
Lee Rivett 4:33 Wow. And that’s quite a testament since you actually bought some of the product as well. But what makes it such a darling product in your thoughts?
Craig Patterson 4:39 I think the Anko line is interesting, because it’s actually, in my opinion, quite a bit better than what Zellers used to have before. In terms of I remember the old Zellers of about 10 years ago, and it had a private label line called “Truly” which was introduced in 1999. And it had other products and other categories as well and some of the quality was good I mean they had other brands that were there that you know people would would definitely want to buy. But the “Truly” line itself I don’t think was was overly innovative or even that attractive. It wasn’t something I think people aspired to get but this new Anko line from Kmart Australia, I found it to be quite urban, it’s quite modern, it’s something would actually really work in a place like downtown Toronto I think because a lot of these products – say the furniture line and whatnot – could really work for say a small apartment that person might have. The home goods are again quite modern looking. Something that would work say in an urban environment.
Lee Rivett 5:36 That’s cool and so where did the name ‘Anko’ come from?
Craig Patterson 5:39 The Anko name itself is quite interesting. So up until about 2018, Kmart Australia had a few different brands under this private label umbrella for its fashion line it had “Clothing and Co.”. So this was clothing & co. And then for home goods it had “Home and Co.”. For children’s wear and whatnot it had “Kids and Co.” and “Active and Co.” was the athletic wear by the way, the gym stuff is great. And I would say I own quite a bit of it again, what I purchased last week, but what Kmart Australia did in 2018 Was it renamed everything to simplify things to “Anko” so instead of “Clothing & Co.”, now the name is “AN” and then the “K” for Kmart (referencing the retailer which you know founded everything) then “O”. So that is where “Anko” came from. So it’s completely a derivative from Kmart Australia.
Lee Rivett 6:40 For myself I’m very impressed with what you’ve been describing. For me Zellers has products that are coming from an international success story from Kmart, as well as having a little bit of that nostalgia to pick up on. So how successful do you think this is going to end up being?
Craig Patterson 6:56 Now, I think that this sellers concept could be successful if people come back into the stores. Chatting with people from Zellers last week, they were saying that more products are coming in, I spoke to someone that does some of the buying. So this Zellers concept keeps bringing in new Anko stuff. And if Canadians want to buy it, and it’s something that’s receptive, which probably it will be, I think, I mean, I think the line is great, I’ll buy more. And I think, you know, this could be something which would really take off. I don’t know how much this is going to drive in terms of huge profits for the Hudson’s Bay Company just given that these are smaller stores, but the buzz that’s being seen here with this new Zellers concept, people are coming into the Hudson’s Bay stores…
Lee Rivett 7:36 I just want to pause on that for a moment. You were saying that one of the strategies for having the Zellers pop up within the larger Hudson Bay store was to try to draw foot traffic into the larger Hudson Bay store – to drive sales, right? So are you thinking that maybe people are going to be just coming in for the Zellers pop up and bypassing the broader Hudson Bay store (because that would be not necessarily a successful strategy then for Hudson Bay overall)?
Craig Patterson 8:03 Now, I was told I mean, I’ve had a lot of people giving me feedback already that they weren’t necessarily seeing people shopping in other parts of the Hudson’s Bay store, even though these Zellers around opening day (and a bit after) we’re very, very busy. But in theory, this could actually be something which would drive extra sales per square foot within Hudson’s Bay stores. So I really do hope this is successful. I wasn’t as optimistic before I actually saw it in terms of I thought, “Oh, Jeez. This is an effort which could potentially fail but but I’m cheerleading this one right now, because we haven’t seen a lot of brands being revived and succeeding. But in this case here, I think sort of the kitchiness of the original Zellers concept, coupled with the fact that this is actually some pretty darn good stuff. There’s some other brands in there as well, I should say, I saw some Disney Toys and some Mattel and Crayola crayons and, you know, in the kids section and whatnot. So there are a few little other brands in there, but I’m sure at least 80% of the stuff there is from this one, individual Anko line. So, you know, again, I’m cheerleading this, I hope that the Zellers concept really does take off. I’ve got some ideas on how they could revamp this and I think I want to speak to someone about it, but I won’t give away that information just yet. Because who knows, they may use it and then we’ll see.
Zellers at Hudson’s Bay in Sunridge Mall, Calgary, AB (Image: Mario Toneguzzi)
Lee Rivett 9:12 When besides the Anko brand, is there any reason why you think shoppers may be coming into the Zellers pop up besides the nostalgia factor?
Craig Patterson 9:21 That’s a good question. Actually. I mean, I think it’s going to come down to people discovering new products because the Zellers shop-in-stores themselves don’t have the restaurant and this is something that people were definitely requesting, sadly, maybe more so than even the store itself. They almost should have started maybe with a restaurant concept and had some merch or something, but maybe that’s not the best strategy either. But nevertheless, I’m being honest about that, I think new products are going to have to come in and new locations. For this Zellers to I know for myself living in downtown Toronto, it’s quite hard for me to get to either the Scarborough Town Center, which would be the easiest in theory for me to get to on the subway, it’s kind of a soap and then an LRT trip, or something like Erin Mills Town Centre, which is really not that accessible to me without driving a car. So I think you know that downtown stores would work. So I think more locations are going to be important. This food truck situation, “Will that drive traffic to these other stores?”, in theory, probably, I mean, if people want to have that full experience, they may get some food from these trucks when they’re in the Zellers locations (outside the stores, that is, you’re not driving them through a store inside) but this may create a bit of an event atmosphere, I don’t know how often by the way food trucks are coming in, but this event atmosphere that’s going to be created when the food trucks are there could in theory, again, just bring people in for the Zeller stores. So maybe they’re going to need to have those trucks zipping around the country continuously, I don’t know. And at the prices they’re charging, which are pretty low for the food, you know that I don’t know what margins are there, it might be a loss leader, ultimately, just given the cost of goods and services, transport and labor.
Craig Patterson 11:01 But again, I think it’s going to come down to the Anko product. Are people going to be receptive? Someone like me, do I need new bedsheets? Am I going to look at the Anko line? Well, actually, probably I will. But also, I think that the online channel is going to be really important for Zellers because I know for myself, I do like the underwear line, not to give too much information. I guess it’s not really but I the next I actually want to buy more, but I’m going to do it online because the stores for me being this downtown person, they’re not as accessible. But I know what that how they look and how they fit and I’ve seen the furniture and I’ve seen the blankets and everything. So if I want more stuff from from Zellers and I definitely am considering this as a brand, the Anko brand specifically for a few different things furnishing my home here and there as I upgrade little things. We all seem to do that. Yeah, this is definitely a consideration that’ll have your I like the stuff because the prices are, I think lower than IKEA. And in on a lot on a lot of stuff. And I mean, things like essential oils, I bought this as a gift for someone, but they were $5 each and apparently they smell really nice. He was telling me so quite interesting there that that’s low, low prices for stuff that also looks nice. I mean, this is not bad looking stuff in terms of the packaging.
Craig Patterson 12:11 It’s almost a lot better than the old Zellers I would say. There’s a gentleman I forget his name. He’s a comedian, and he’s a singer. And he did a song about Zellers being better than I remember. And I kind of thought, oh, geez, because this is before I got to go visit. I’m like, Oh, come on. Really, this is a marketing play. This is just so silly, whatever. But I got into the actual Zellers. And I thought, Well, ya know, he’s right. I mean, well, the old Zellers couldn’t have been much worse. That’s the problem, I think, at least in my opinion, because the old stores have 10 years ago, they didn’t look that nice, they kind of smelled funny. You know, the product wasn’t amazing. I mean, it wasn’t a place that most people would really aspire to shop at. I hate to say that and I don’t want to sound snobbish saying that, but that is my opinion of what Zellers was. I would shop at these new stores if they were near me, or I’ll shop online for the product. So in theory, yeah, no, this is better than the old Zellers. At least for someone like myself, that’s a bit more of a modern urban dweller looking for certain products, and the great prices are always going to be a benefit as well. So this could be a slam dunk if things are executed properly and if people come back and and keep shopping.
Lee Rivett 13:15 Didn’t Anko open independent stores in western the United States? It’s great that they’re going to the wholesale kind of relationship with Zellers right now, but this is not the first time that this Australian Kmart brand has come to North America, right?
Craig Patterson 13:31 In about 2018 Kmart Australia started opening these little Anko stores in the United States. It was part of a planned rollout to bring the brand in with retail stores. So they opened up a little pop up stores and then they built a flagship store in the suburb of Lynnwood (right by the I think it’s the Alderwood Town Center shopping mall) was about 18,000 square feet. But in 2020 with the pandemic Anko closed these stores because the pandemic disrupted everything from the supply chain to people shopping, even people going out of their home. So unfortunately, this shutdown so this new newly released Anko is now a wholesale situation. So instead of taking that risk of opening all these new stores that are standalone for Ankle. Kmart Australia is wholesaling this brand to the retailer so they’re taking this risk and they’re distributing things so Anko doesn’t have to pay this rent for these stores.
Craig Patterson 14:31 I have a peek on the boxes as well. I also now have some product at home because I was able to buy it but it does say important for the Hudson’s Bay Company so these are items that are actually have been brought in. If you actually look on that was a few days ago anyways on the Zeller’s website, I was zooming in on a few of the products and it said you can see on the box there’s something about for Kmart, Australia and New Zealand and an even had something about Lynnwood, Washington. I think these are some old products and some old photos they were just putting them on and I’d have to go I can check honestly to see if they’re still there, but it doesn’t matter. It’s if that’s not what you’re seeing in the stores anyways.
Lee Rivett 15:05 Do you think there’s going to be any retailers in Canada that would be worried about how successful this Anko brand is going to be in the pop up if it takes off?
Craig Patterson 15:16 There are a few competitors out there that could be at least a little bit impacted by this new Zellers 2.0 and it’s Anko line. I’m just thinking the kitchen goods at this new seller seemed really good. There was lots of knives and forks and plates and, and all kinds of other stuff of kitchen appliances. This could certainly impact retailers like say in Ontario, I don’t think it’s something outside of Ontario. “Kitchen Stuff Plus”, kind of a discounter of kitchen goods. I don’t even shop there anymore, unfortunately, because we just have a store on Young Street and Yorkville and they shut it down. And for some reason I seem to be a bit of a physical shopper. Even though I can buy all the stuff online for some reason I still like going into the stores and even if I can buy it online, I still like to see it sometimes it which is silly. But anyways, I haven’t bought anything from “Kitchen Stuff Plus” since they closed that store, not even online or anything. But other brands – I was in a Winners store yesterday and I thought “Oh geez, there’s lots of categories and Winners”. I should say more HomeSense perhaps because this is connected to this particular Winners. It’s kind of a dual store. Lots of categories, but some of the prices at Winners were higher than the Zellers. So I thought that was kind of interesting. I mean, and with Winners. It’s kind of a crapshoot in terms of what you’re getting, right. Sometimes certain things are in stock and others aren’t. So you know, they’re bringing things in, it’s really is far more reliable than say Nordstrom Rack to get certain things but Zellers with its ankle line this is this is purpose driven in terms of a brand and categories as long as they can keep it in stock, which hopefully they can sign if they can’t because people are buying it all and at Zellers. As long as they can keep that in stock, you know, it’ll be a reliable source for people to buy things and even retailers like IKEA. You know, like he has a gigantic store and these Zellers locations are teeny-weeny tiny in comparison, but certainly there is some a bit of market share that could be taken from Ikea, a little bit, the furniture area, a bit in the kitchen area. Any retailers that say sell pet goods could be impacted by this, because there’s lots of pet stuff and it’s really cute stuff. With this, this Anko stuff is Zellers really kitschy. So you never know. I mean, again, there’s lots of pet retailers out there and the pet industry is growing quite quickly. So there’s probably room for everyone but you know, not everyone’s going to need a ton of stuff over the years for pets. So if they move to a different brand don’t shop at a certain store that is going to have an impact. And then even I’m just thinking I mean at $5 for essential oils, I mean I’m not an expert and you know, the ultimate quality, retailer like sage, natural wellness, well, they’re not selling them at that price. So and I haven’t tried the bath bombs yet from Zellers, but you know, they’ve got these bath fizzies or whatever, I think they are bath bombs, nine for $9. Well, you know, it’s nine to $12 for one at Lush Cosmetics. They’re a little bigger at lush, but, you know, the price point at Zellers was was a fraction like 15% or less of what you’d be paying at the other store. So again, I think this is a bit of a concern. If a value shoppers are going to step away from other retailers to shop at Zeller specifically. That could be an interesting situation.
Lee Rivett 18:12 Any other final thoughts before we wrap up the podcast?
Craig Patterson 18:17 So since Zellers has opened its first 12 stores on Thursday, I’ve had all kinds of people messaging me on social media and texting and people checking it out. I would say that overall, there wasn’t a lot of negative feedback. I mean, maybe there’s some analysts saying this may not go on forever, you know, they’re gonna need X Y, Z, but even some of those analysts who might be a little bit contrarian or may not, you know, always say positive things in the press. Are giving me pretty positive feedback, at least on the product itself. People seem seem to like it. And I thought that was kind of neat. So one of the things that made the Anko line through Kmart Australia popular was people posting their purchases on things like Instagram and Tik Tok. And apparently, that social media presence really bolstered the brand in that country. And we’re seeing all kinds of social media now here in Canada about Zellers and people liking the product. It’s not tied nearly in the same degree to the word Anko. itself, but it certainly is, in terms of what’s available at sellers. So again, if this excitement continues, from people that are shopping in the store, if they continue to like the product and if Zellers and the team behind it, that’s doing the marketing continues to push the messaging out and try to get people excited about this. There could be legs here in terms of this concept being successful, at least for an extended period of time. So hopefully, that time extends indefinitely, because it’s kind of neat to have something back from the past, in terms of nostalgia, and finally, I mean, I think that we’ve come out of this pandemic and I think that you know, people have lost family members. We’ve got a situation where you know, The world just seems to have changed a whole bunch. And some people are kind of looking for a few things, memories of the past and even though this new Zellers isn’t what the old one was, maybe better I wouldn’t I don’t wanna say for worse, but maybe for better. I like this one better, but it just brings back a little bit of that nostalgia and remembering that things were a little bit different a decade ago. And sometimes I’d like to remember that as well. So at the same time, we always have to look to the future.
Lee Rivett 20:28 Well, thanks for going through this article with me. Well, it’s your trip that you went all the way to Zellers for and as well as writing about it. Other than that, I’ll chat with you next week. Craig.
Craig Patterson 20:38 Thank you so much, everyone for listening. Take care and bye for now.
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