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Canadian Retail News From Around The Web For December 11th, 2023

Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past three days.

Is the customer always right? Some Vancouver businesses say no (CBC)

Deal to lower Visa, Mastercard processing fees will come up short for many retailers, critics say (CBC)

Canada Bread denies price-fixing scheme in court filing, points finger at Maple Leaf (Canadian Press)

Loblaw chair Galen Weston defends record profits, warns Ottawa grocery code will lead to higher food prices (Toronto Star)

Peak Performance’s new Vancouver store seeing brisk sales (BIV)

Hudson’s Bay workers in Kamloops take strike action (USW)

Thefts, violence at Ontario malls a growing concern (Toronto.com)

Ontario to announce plan to allow beer in corner stores (Globe & Mail)

A push to add retail to Toronto’s alleyways (Globe & Mail)

New Sayers Foods in Apsley will be a ‘game-changer’ says North Kawartha mayor (Spectator)

Maxi celebrates grand opening of renovated store in Gaspé (Grocery Business)

‘We really need to support those people’: Market makers ask Winnipeggers to shop local (CTV)

Guelph Food Bank opens thrift store to help fund their food programs (CBC)

Independently owned Saanich grocery stores earn top awards (Saanich News)

Used clothing store in Toronto’s west briefly evacuated after grenade found inside: police (CTV)

Canadian Brand SENTALER Relaunches Toronto Flagship Store with Plans for Expansion [Interview]

SENTALER at Yorkville Village (Image: SENTALER at Yorkville Village (Image: by George Pimentel)

Luxury outerwear brand SENTALER has relaunched its flagship store in Yorkville Village in Toronto. 

The SENTALER Atelier was initially opened as a five-day pop-up to launch the first-ever SENTALER MEN collection in 2021. The private, exclusive, and bespoke space catered to one-on-one appointments during the pandemic.

Founder Bojana Sentaler said the plan was to stay five days but after an overwhelmingly successful launch, and more appointments than it could fill in that timeframe, the lease was extended to the spring of 2022.

In 2022, the SENTALER Atelier, now operating as the home for the full men’s women’s, and accessories collections, became a permanent space and a continued revenue driver.

In 2023, SENTALER continued its corporate expansion and moved into a new office space and warehouse in Yorkville, to bring the company’s full operation under one roof – retail, office, warehouse.

SENTALER at Yorkville Village (Image: by George Pimentel)

“Looking back at the roots of SENTALER, the brand’s initial direct-to-consumer success was due to the incredible customer service offered in the all black and white space, where the coats shine as the pop of colour,” said Sentaler. While the SENTALER Atelier space was a profitable one, it became apparent to Bojana that the store was not the solidified and successful brand motif she originally created. 

“The reception for the store has been incredible. I think clients really are going to go wherever SENTALER is in Toronto. A lot of our clients are just very happy now with the location. A lot of our clients are actually in this area where our current store is. A lot of them are walking distance to our existing store,” said Sentaler.

“I think clients really like that it’s inside Yorkville Village. It’s a little bit more private. A little bit more exclusive and it just allows them to come in and I would say it’s like they’re shopping in their own closet. It feels very special and very exclusive.”

Designed to mimic the original SENTALER showroom, designed by Bojana Sentaler, the SENTALER Flagship is an all white space with black accents where the coats and accessories remain centre stage. The windows are designed with archways inspired by European architecture seen on Bojana’s travels. There are custom made mannequins and accessory busts.

It also has a 10-foot Suri Alpaca fabric wall that is a to scale render of the famous SENTALER Signature ribbed sleeves. The Flagship allows for clients to experience the SENTALER collection in an intimate setting, as if they are shopping in their own closet. 

“Since the re-launch, we see clients traveling from all over Ontario to shop at the new SENTALER Flagship store and many tourists visiting Toronto coming to the store as a destination,” said Sentaler.

Youtube video

When asked if she is thinking of opening more stores, she replied: “Yes, this is definitely on the horizon for the company. The Yorkville location has been so extremely successful for us. We can definitely see the clients love the physical interaction with the product. We also sell our products globally through the online website. We ship all over the world. And we also have major retail partnerships with luxury department stores in Canada and the U.S. where clients are also able to experience the product.

“But I think there’s something really special about clients shopping in a brick and mortar SENTALER store because we really give them the SENTALER experience from beginning to end.

“In times like we are today, consumers are careful about their purchases in the sense of they’re looking for products that have longevity and they’re looking for investment pieces. So if they’re spending their hard-earned dollars on an item they’re really looking for a longer life span on that item. We have found that they’re more drawn to classic and timeless styles in luxury fabrics that they know they can wear with many different outfits for many seasons to come. This is the epitome of SENTALER.

“The consumer nowadays is very sophisticated. We have noticed a hybrid shopping approach where they’re doing a lot of their research online. While a lot of customers do shop online, I think there’s something really special about them walking into a store and really touching and seeing the product and trying it. This is something that can’t be replicated online. We’ve noticed the excitement.”

Born in Belgrade, Sentaler moved to Toronto at the age of eight. While sketching fashion designs from a young age was her passion, Bojana decided to obtain a university degree in Marketing and Finance.

After graduating from the prestigious Schulich School of Business, her fast-paced career led her to travel the globe, ultimately resulting in an influential encounter with late fashion icon Karl Lagerfeld.

Bojana Sentaler at Yorkville Village (Image: by George Pimentel)

Inspired by his wisdom and the diverse vibrancy and beauty of her journeys, Bojana went back to exploring her true passion for fashion and design. While living in Peru, Bojana discovered the beautiful alpaca fibre and fell in love with its lightweight and warm features.

In 2009 she launched the luxury outerwear brand, SENTALER.

Bojana was recently named the ‘Queen of Coats’ by Forbes Magazine

Many well-known celebrities such as Megan Markle, Kate Middleton and Halle Berry have been seen wearing the brand.

Food Prices in Canada Expected to Rise in 2024, Grocer Code of Conduct should be Mandatory [Op-Ed]

Canada's Food Price Report 2024

Canada’s Food Price Report for 2024, released by Dalhousie University, the Universities of Guelph, Saskatchewan, and British Columbia, has unveiled a nuanced and complex landscape of the nation’s food pricing. This landscape is underpinned by diverse factors that extend beyond the supermarket shelves. The report predicts that food prices will increase by as much as 4.5% in 2024, with meat, vegetables, and bakery products driving food inflation higher at the grocery store. While many Canadians may hope for price drops, it’s essential to understand that the issue is entangled with the complexities of the global economy, and no nation is immune to worldwide uncertainties.

As most Canadians are aware, except for those who subscribe to the notion that food prices are solely driven by one individual or one company, the persistent rise in food prices reflects broader inflationary trends affecting the economy. This surge in costs is not isolated to food alone; it’s a symptom of increased expenses in production, transportation, and the ripple effects of global economic shifts. These elements collectively contribute to the steady climb in food pricing, making it a multifaceted economic issue.

Holiday Display at Metro in Downtown Toronto (Image: Dustin Fuhs)

Climate change also plays a crucial role in shaping the food pricing narrative. Extreme weather events directly impact agricultural productivity, disrupting crop yields and the availability of essential food products. These incidents serve as a stark reminder of the food supply chain’s vulnerability to environmental changes and the urgent need for resilient and sustainable agricultural practices. Whether we employ carbon taxing or a cap-and-trade system, decarbonizing the food economy should remain a priority.

In response to rising costs, Canadian consumers are adapting their spending habits. There’s a noticeable shift towards more budget-conscious shopping, with consumers increasingly seeking value and adjusting their dietary choices in light of price hikes. This change in consumer behaviour is a critical aspect of the food pricing equation, influencing retail and production strategies across the food industry. The recent string of interest rate hikes by the Bank of Canada has had a significant impact on households across the country, forcing many to reduce their food spending despite inflation. The past year has been challenging, but there are signs of improvement as consumers are gradually reallocating their budgets away from mortgage and rent payments towards food expenditures.

As we approach the target food inflation rate of 1.5% to 2.5%, likely to be reached in 2024, consumers should have certain expectations from our policymakers. The introduction of regulatory measures, such as a grocer’s code of conduct, signifies a growing awareness of the need for more oversight in the food retail sector. This initiative aims to balance the scales, ensuring a fair distribution of costs and profits within the food supply chain, ultimately protecting consumers, promoting equitable practices, and fostering healthy competition. It’s worth noting that Loblaw and Walmart currently hold significant power in the industry, which needs to be addressed to benefit consumers.

Canadians have valid concerns regarding the influence of companies like Loblaw and Walmart. The practice of charging more fees to suppliers, who then raise prices to compensate for these elevated fees, ultimately leads to consumers bearing the burden. If Ottawa is genuinely committed to stabilizing food prices, it should consider making the Grocer Code of Conduct mandatory, ensuring that both Loblaw and Walmart adhere to it. This move would be in the interest of fostering competition and improving the food supply chain for the benefit of all Canadians. Failure to do so may raise questions about potential inappropriate political interference between some grocers and the Liberal party.

The insights gleaned from Canada’s Food Price Report 2024 underscore the potential for Ottawa to make a difference with strong leadership. While Loblaw and Walmart are well-managed companies that have reaped the benefits of their success, their influence in the food industry has become a concern for the broader population. Addressing this issue is crucial for the well-being of Canadian consumers and the overall health of the food supply chain.

Read the Canada’s Food Price Report 2024 Here

The Canadian Retail Landscape with Tony Flanz: Trends, Growth, and Exciting Brand Expansions [Video Interview]

The Canadian Retail Landscape with Tony Flanz: Trends, Growth, and Exciting Brand Expansions" [Video Interview]

Craig Patterson and Tony Flanz, the founder and CEO of Montreal-based brokerage Think Retail, discuss the ever-evolving Canadian retail landscape.

Flanz discusses a few exciting new retail projects, including the Royalmount project in Montreal and The Well in Toronto, bringing a mix of global brands and unique concepts to the Canadian market.

The interview concludes with a glimpse into the exciting future of Canadian retail, with Flanz revealing upcoming brand expansions he’s working with. From the introduction of innovative concepts like KaleMart24 to the entry of well-established European brands, like Columbus Cafe, Flanz provides valuable insights into the trends shaping the retail landscape in the next few years.

Youtube video
Image: KaleMart24

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TacoTime Embarks on a Nationwide Expansion, Modernization, and Innovative Offerings in 2024 [Interview]

Taco Time Eagle Creek (Image: Taco Time)

TacoTime is currently in the midst of an evolution that aims to achieve steady growth and brand modernization nation-wide. 

There are three versions of TacoTime. In the U.S., there are 118 locations primarily in the western part of the country. In Canada, there are 130 locations. Those two divisions are owned by MTY. The original owner of TacoTime also has the master franchise for the Pacific Northwest in the U.S. with about 75 locations.

The brand is 65 years old in the U.S. and 45 years old in Canada.

Taco Time Eagle Creek (Image: Taco Time)

Wendy Derzai, Vice President of Taco Time Canada at MTY Food Group, said many more locations are coming to the country. 

Wendy Derzai Minnett

“We’ll open a minimum of 10 new stores next year. Probably closer to 12 or 14. We have a lot of new deals. There’s some great internal growth in our brand. 80 per cent of the growth is coming from within the brand. Current franchisees want more locations,” she said.

“The best model for us is a drive-thru location which is my preferred but now I have increased competition because Starbucks is getting into the drive-thru game. So now it’s not just the burger brands and the Tim Hortons I have to fight with, I have to fight with Starbucks too.

“But we still have lots of drive-thrus that are opening and that’s good. My second choice would be what we call a street store and street store typically I like to do end caps with good visibility to the street that has enough parking, just because we do a lot of aggregator or third party delivery services. And now we have our own TacoTime app. So we have our own delivery services now.”

She said mall locations would be her least favourite real estate option for the brand because it is already in the best malls it needs to be in with A class shopping centres.

“However, if a mall location came up in Ontario let’s say in an emerging market where we’re just starting to grow then I would probably consider it,” said Derzai. “But it would really depend on where it is.

“Right now we’re pushing into Ontario. We’re already in northern Ontario. We’re already in Timmins and Thunder Bay and those stores do really well. We’ve got some nodes in Ontario that we’re building out right now. One of them is in the Trenton area. We’re opening a drive-thru location in Trenton. That should be open in early 2025 and then we have Welland which will be open Q3, maybe Q4, next year. We’re also looking at the St. Catharines, Hamilton area. Looking at Ottawa. 

“We have probably capacity for 300 stores in Ontario alone. It’s just a matter of making sure that we’re smart about where we start. In an emerging market where the brand is not as well known as it is in the West, we have to be just really careful where we open and make sure it’s got what we consider an A spot . . .  We’re also looking at Eastern Canada. We’re looking at Halifax, St. John’s and Fredericton.” 

Taco Time Eagle Creek (Image: Taco Time)

It’s been a time of transformation for TacoTime in Canada. Derzai said there have been dramatic changes.

“Now we are at the point where we are now an innovative and modern QSR brand where I couldn’t have said that before. We were really required to up our game because there was a lot of stores that just did not get renovated in that 10-year span when they were supposed to be,” she said.

“The new design is beautiful. It’s affordable for the franchisees which is the key factor here. And it sort of lends itself to a more modern connoisseur. It suits our loyal, close customers which we have to be careful not to alienate but it also brings in that new (younger customer). We made it fun and energetic and bright and colourful. Just kind of a place where people want to hang out.”

The website, social channels and all marketing assets have had a major overhaul over the last couple of years and they have updated their approach to digital marketing to be more effective in the current consumer landscape, including the addition of a dedicated app with a loyalty program for customers.

TacoTime is the original home of Taco Tuesday, something it has trademarked, and currently serves over 2.5 million tacos and 3.2 million hand-rolled burritos annually.

Since 2021, TacoTime has renovated nearly 30 existing locations and opened more than a dozen new restaurants.

Image: Taco Time

Derzai, who is a chef by trade, said the freshness and the real food aspect was really critical to set the brand apart from its main competitor. 

“We are developing a program now where we’re incorporating some flavours of the world which we’re going to look into in 2024,” she said.

TacoTime Canada is also venturing into the world of food trucks in partnership with one franchisee who will be touring Canada next year on the ‘Hometown Taco Tour’, which will bring new and existing menu items to towns and cities from coast to coast. 

Image: Taco Time

TacoTime Canada first opened its inaugural location in Lethbridge, Alberta, in 1978.

“TacoTime was founded with a belief that fresh, real ingredients make better food, and we are delighted to be commemorating 45 years of upholding this commitment to excellence in Canada,” said Derzai. “Our passion lies in bringing exceptional service and unbeatable taste to our customers, and that’s reflected in every bite. We use locally sourced Canadian ingredients and take pride in crafting every element of our menu with care, from our original recipe hot sauces to our hand-rolled Crisp Burritos and fan-favourite Mexi-Fries®.”

Small Businesses in Canada Battle Unfair Instagram Suspensions: A Tale of Lost Revenue and Accountability Demands [Feature Interviews]

Image: instagram.com/mineandyours2.0

In the digital landscape where visibility is prevalent, the stories of Matt Black, the Director of Marketing & Revenue at Hotel X Toronto by Library Hotel Collection in Toronto, and Courtney Watkins, the founder of Mine & Yours, stand as a reminder of the vulnerability businesses face on social media platforms. They share their trials with unexpected Instagram suspensions by Meta, the useless appeal process and how Meta needs to be held accountable. 

Mine & Yours – ongoing struggle and revenue loss 

Courtney Watkins of Mine & Yours. Photo: Instagram

Mine & Yours, a luxury resale boutique based in Vancouver, attributes approximately 60 percent of sales to Instagram. Watkins has battled with Meta repeatedly after her account was suspended three times without clear justification.  

The first suspension happened November 28, 2022 and two and a half months later, Watkins was able to retrieve it. The second time occurred June 8, 2023 and Meta sent an apology two weeks after and Mine & Yours again, got its Instagram back – however, three weeks later it was taken away for unknown reasons and Watkins is still fighting to get it back.

The account was taken down a day before the brand launched its new location in Toronto and had 60,000 followers. So far, the brand has lost around $100,000 or more in the last few months and has decided to hire a lawyer. 

“We were posting around 20 stories a day, and I would say around 60 percent of those items would sell so Instagram was a really big revenue driver. During the first week it went down, we started noticing less people visiting our store so our Instagram account has been a really big part of our business,” says Watkins. “It has cost us $100,000 or more, plus my team’s time, my marketing manager’s time by emailing Meta, gathering documents and we have needed to hire a lawyer.” 

Hotel X 

Matt Black of Hotel X in Toronto. Photo: LinkedIn

Black says its Instagram account, though smaller with 1700 followers, faced a similar fate as it was shut down back in September and the only reason given was “violating community guidelines,” but did not specify which one or how they can fix it. Luckily, due to having a personal connection from Meta, Black says they were able to get their account back on September 20th – 11 days after the suspension. Without the connection, Black believes the situation would remain unresolved.

“It is frightening for brands relying so much on social media presence. We have 1700 followers, when we got suspended we could have just started another account – but that is not the point. And who is to say that I wouldn’t go and do all of this and then get suspended again. There is a real flaw in their escalation process and I am very disappointed with the lack of support and they were just very apathetic,” says Black. 

Image: Matt Black (via Linkedin)

“Great news!  Your account has been permanently disabled.” – now deal with it!

After retrieving the “great news,” Watkins and Black were left in the dark. 

The process to retrieve your account, according to Meta, is to contact their team and appeal the decision. Sounds simple and straightforward – but it’s not. Black says Meta makes it difficult, even impossible, for businesses to retrieve their accounts. 

“Of course we followed those steps, which were a simple process of just logging in again and saying appeal, so we did that as there was no other additional information we could provide at that point. Later that evening, we got a notification it had been appealed and now the account was permanently disabled – no additional information provided. The steps provided were frankly useless,” says Black. 

Black says even trying to login to the suspended account was a nightmare and was a “recursive loop you are stuck in.” Without his personal connection, Black says he would still be in the same loop, like several of businesses such as Mine & Yours. 

Watkins says for months now they have been following the process, but are not getting anywhere and Meta can’t decide on a reason. 

“Parts of me wants to be like ‘fuck off Meta, I am not using you,’ but all of that is where the world lives and our clients are on there,” says Watkins. “We are always fighting to get our account back. They have been going back and forth between counterfeit goods, copyright infringements, and fraudulent products. There are a couple of steps you can do online, and we do it multiple times a week. When we ask for further information – we don’t get anything.

Watkins still does not know why the account has been shut down and has not made any progress in reopening it, because of this she has hired a lawyer as she has lost revenue and wasted hours trying to get it back. 

“It has been so long and it is negatively affecting our business and we have also paid a lot of money as we do a lot of ads in order to grow our following. So for them to just take it away and not really explain what we have done wrong – it just doesn’t seem fair and we are at a loss of what to do,” says Watkins. 

Image: Mine & Yours

Black says he was also getting nowhere by emailing the support team at Meta. In total, he was emailing five people within the same thread and instead of getting support, he was receiving useless responses. 

“There was somebody there replying, but they were doing the exact opposite of providing any type of support. I understand it is a big company and there are hundreds of millions of accounts and people get hacked all the time – but we are a business. It was mind boggling to me that those five people who responded to the email thread did nothing,” says Black.  

Considering businesses partner with Meta and spend money on ads, Black and Witkins say the company needs to improve this and should learn to treat small to medium businesses with more respect and improve its communication. 

One reason behind Meta’s ability to close an account easily is because of AI and machine learning. Black says it appears machine learning is involved in the process as the tool flags down the account and suspends it without reason. The only way to get it back is through someone at Meta. “It is surprising, they have great business support and help, but if something goes wrong – they ghost everyone and its negligent,” says Black. 

$100,000 lost and reputation concerns 

As this is the third time Mine & Yours Instagram’s account has been removed, Watkins is not only worried about the revenue loss, but also reputation of her brand. 

Until the old account is back, Watkins opened a new one; however, she says it looks like a new brand.

“We have been in business for 10 years, we had 60,000 followers so to go back and be launching in a new market in Toronto with 4,000 followers – it makes us look like a new brand which is okay, but we are not new. We have 10 years of experience and authentication history behind us,” says Watkins. 

Image: Mine & Yours

Watkins says she can write a caption explaining what has happened on the new instagram account, but it will be harder to find. 

In addition, if the brand’s account gets shut down for counterfeiting goods, Watkins says potential customers may think the brand did something wrong and are untrustworthy. 

“We were shut down because they said we were selling fake or counterfeit goods, that is really bad for a brand’s reputation. It is so incorrect of them, I feel okay because I know we are not selling counterfeit goods, but if you are a new brand with no reputation – consumers will think you did something wrong for Meta to shut you down,” says Watkins.

“Meta needs to be held accountable”

As some businesses take a huge hit due to the deplatforming, Watkins and Black say Meta needs to be held accountable for its actions. 

Meta should be more transparent on the reasons behind the shutdowns, provide chances for brands to fix mistakes, learn and acknowledge mistakes when they occur and not make small to medium brands fight for its Instagram accounts. In addition,Watkins says they should also be held responsible for any reputational or financial damages as a result of Meta’s deplatforming.  

Going forward, both Watkins and Black say they will still use Meta; however, will now diversify their marketing strategies as they can’t count on Meta – and so should other brands.

Although Watkins and Black do not have any advice – as they do not understand Meta’s process themselves – they suggest to not let them win, to keep fighting and to resist the urge to let it go.

“I am stubborn. I would have kept annoying all of those people until I got something. I think it is better than just accepting it because who is going to stop it from occurring again? We want to place more eyes and ears onto this situation because to be honest, it’s appalling,” says Black. 

Labour Shortages Cost Canadian Small Businesses Over $38 billion in Lost Revenue: CFIB Report [Video Interview]

Small businesses in Canada missed over $38 billion in revenue opportunities last year because they had to turn down or postpone contracts or sales due to labour shortages, finds a new report by the Canadian Federation of Independent Business (CFIB).

Laure-Anna Bomal

“We always knew labour shortages came at a high price to small businesses. Staffing challenges cause employers to work more hours, reduce their hours of operation and decline services and contracts, simply because they can’t find enough staff to fully operate their business,” said Laure-Anna Bomal, CFIB’s economist and the report’s author. 

“In fact, we estimate the business opportunities that small businesses lost in just one year due to labour shortages are worth over $38 billion. While it doesn’t necessarily mean the Canadian economy lost the same amount, it’s still a significant share of revenue that small businesses could have used to invest in automation or growing their business.”

Small Businesses in Canada Hit Hard: The Big Financial Toll of Labour Shortages

The CFIB said small businesses in the construction sector faced the most significant loss of business opportunities, over $9.6 billion in the last year.

A single policy change will not address these labour shortage pressures, but a collection of them might provide some relief. After a detailed review of what other jurisdictions are doing to address their labour shortages, CFIB has completed a whitepaper on how to address various barriers to work, it said. 

The policy proposals cover three age groups—youth (15-24), core age (24-64), and older workers (65+)—and include targeted solutions on how to better integrate workers of all ages into the labour force.

Christina Santini

“As Canada’s population is aging, we need to ensure that those who are willing to work can do so without significant challenges. In the long run, the shortages will get worse, as will their costs, unless we change our labour market approach,” said Christina Santini, Director of National Affairs at CFIB. “We urge governments to find innovative ways to increase participation in the labour market among all age groups.”

For example, to increase workforce participation among youth, governments could increase the prevalence of work-integrated learning in high schools. Among the core-age group, employment insurance program design shouldn’t create disincentives to work, and governments need to facilitate labour mobility across provinces. As for experienced workers, governments should revisit existing tax policy and/or create a tax credit for career extension, said the CFIB.

In this video interview, Santini talks about the economic impact of the labour shortages, why it’s happening, what to expect in the future, what industries are being impacted the most and what government needs to do to help. 

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

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Canadian Retail News From Around The Web For December 7th, 2023

Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Roots reports Q3 sales and profit down from year ago as it faces economic headwinds (Canadian Press)

Retail Council of Canada shows Canadians more intentional with holiday shopping (CBC)

Small business organizations express frustration with government plan on swipe fee reductions (Grocery Business)

CEO Jennifer Wong on ‘setting the stage for the next level of Aritzia’ (Glossy)

Commercial real estate expected to recover through 2024 (Globe & Mail)

Heather gets the last word: The queen of reading and her Indigo comeback (National Post)

Not Just Burgers: McDonald’s Leads In Commercial Real Estate (Storeys)

His gift card was drained of funds. Getting the money back was a logistical nightmare (CBC)

DAVIDsTEA Appoints Chief Digital Officer to Drive Online Sales (Financial Post)

B.C. consumers tightening wallets in tough retail climate (Pique)

Police looking for 3 suspects after robbery at Yorkdale Cartier store (Global)

Winnipeg business owner says she’s leaving Osborne Village due to lack of customers, safety (CBC)

How Canadian grocer Freson Bros. embraces its roots (Grocery Dive)

With Christmas around the corner, more Windsorites are shopping at thrift stores (CBC)

People reflect on legacy of Robertson Trading as store winds down after 56 years (CBC)

Patrick Morin, founder of the Quebec retail chain, dies at 96 (Hardlines)

Why Policing is Not the Answer to Shoplifting at Grocery Stores in Canada [Op-Ed]

The social and financial costs of policing food theft are higher than the costs of addressing poverty and income inequality. (Shutterstock)

Big businesses like to tell us that, as consumers, we all pay for food theft. We’ve been sold a narrative that as consumers who don’t steal, we pay for the theft of food by others on our grocery receipts.

Reported increases in food theft in Canada are linked to pressures from rising inflation along with diminished investment in social supports such as housing, mental health, transit and crisis and community supports.

Research has shown that in Prairie cities municipalities disproportionately fund police over essential services like housing and mental health support. But instead of increasing social supports, the response to food theft has been surveillance, security and policing in our grocery stores.

Retailers would have us believe that the cost of food theft is limited to retailers passing on their losses to consumers. However, retailer investment in surveillance, security and special duty police officers are costs that are also passed on to consumers: we pay for the surveillance systems that surround us.

The social cost of policing food is much higher, and deeply concerning because it produces unequal community impacts.

Food theft

Food theft is framed as a threat to paying customers. That furthers the divide between those who can still afford groceries, and those who cannot. Media coverage of food theft often focuses on exceptional examples of theft to emphasize that the crisis is an issue of worsening crime. But that framing ignores the broader economic conditions that perpetuate the problem.

In response to media coverage of grocery theft, some have tried to highlight the connection between rising theft and unaffordable food prices. A Toronto-area law firm has even offered pro bono support for those charged for stealing groceries.

Reported increases in food theft in Canada have been linked to pressures from rising inflation and diminished investment in social supports. (Shutterstock)

When food theft is disconnected from social conditions, it also collectively distracts us from the underlying issue of rising food costs.

Following calls from the Canadian government to stabilize prices as food inflation outpaces general inflation, grocers have submitted preliminary plans to lower food prices but have yet to implement them.

Policing food theft

Buying into the food theft moral panic, divorced from its broader social conditions, has resulted in increased surveillance, security and policing. Retailers and police rely on these extraordinary accounts of food theft to create moral panic to be managed through securitization and policing.

We are emerging from a global pandemic that severely impacted unemployment rates, as cities grapple with underfunded social services and inflated police budgets. In these contexts, thinking about food theft through a lens of criminality limits interventions and responses.

In 2020, the Manitoba government established a Retail Crime Task Force with the goal of “reducing the number of thefts.” The press release announcing the partnership was held in front of a Winnipeg grocer — sending a strong message that food theft will not be tolerated.

Project Stop Lifting is another initiative between the Winnipeg Police Service and Manitoba Justice, and in a two-month period in 2020 it led to 74 arrests and 592 total charges were laid.

Similarly, Vancouver Police have been cracking down on theft and between Sept. 11-26, 258 shoplifting arrests were made.

These arrests and charges raise important concerns about how increased policing is being used as a purported solution to food theft.

Impacts on racialized people

Increased policing will disproportionately impact racialized and other marginalized people who are most vulnerable to over-policing and criminalization.

A charge for theft under $5,000 may not result in incarceration for some, but we know Indigenous and other racialized people are more likely to be arrested for minor offences. In Manitoba, Indigenous people are subject to overpolicing, racial profiling and over incarceration. Indigenous people represent 77 per cent of the provincially incarcerated population.

Research shows that increased policing of grocery stores and pilot programs to increase arrests will disproportionately impact Indigenous and racialized shoppers. This is disconcerting given the Truth and Reconciliation Commission’s Call to Action No. 30 which calls upon federal, provincial, and territorial governments to eliminate the overrepresentation of Indigenous people in custody. The cost of food theft does not justify the impacts of increased incarceration for Indigenous Peoples, as well as other racialized and marginalized people.

Manitoba Premier Wab Kinew has argued the province’s approach to cracking down on theft fails to address the root causes of crime, and that the underlying problems that lead to theft need to be addressed. Theft cannot be divorced from the social conditions that leave individuals with no other alternatives, especially for needs as basic as food.

The cost of policing food

The cost consumers pay for food theft when grocers offload costs to their customers may be significant. However, the cost of policing and incarceration is far more substantial. In 2021-2022 the average cost to incarcerate someone in Canada was $119,355. Beyond the cost of incarceration, we have to consider the cost of responding to food theft within the criminal justice system that results in police costs, court costs, prosecution costs, legal aid costs, correctional services costs, probation costs as well as the cost of incarceration.

The social cost of such measures is important to consider. Going through the justice system will compound financial distress, subject individuals to police violence, and if incarcerated, will disrupt lives.

The costs associated with policing food, and incarcerating those who find themselves in a position of needing to steal food, should be redirected to feed people. Calls to defund and abolish the police have argued for the reallocation of police budgets towards life-sustaining social services and non-carceral alternatives to address crime.

The redistribution of public spending would address people’s struggles to afford food and reduce the high social and fiscal cost of criminalization and policing. By contrast, directing funding to surveillance, security and policing in response to food theft will compound harms.

We have a serious problem if we would rather see people in prison than fed.

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

By Merissa Daborn, Assistant Professor in Indigenous Studies, University of Manitoba