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
Londonderry Shopping Centre (Image: Cushman & Wakefield)
The Londonderry Shopping Centre in Edmonton is adding new retailers and amenities to serve the local community. And the mall’s Hudson’s Bay store, which was supposed to shut in August of this year, will now be staying open in a smaller footprint.
Landlord Cushman & Wakefield says that sales numbers at Londonderry have surpassed those of 2019 before the pandemic, both for the mall’s food court as well as for the centre as a whole. Recently, a 38,000 square foot No Frills grocery store opened at Londonderry, replacing a Save-on-Foods that shut several months ago. The new grocery store is said to already be very busy.
Other new tenants at Londonderry include Service Canada, which next year will be opening a 10,000 square foot facility at Londonderry including a passport office. It will serve the local community and be a “win” for the mall according to landlord Cushman and Wakefield. The goal of adding the new passport office is to continue diversifying Londonderry’s retail offerings by adding more service based providers to drive regular traffic.
Click image for interactive Google Map No Frills at Londonderry Shopping Centre (Image: Londonderry)Shoppers Drug Mart at Londonderry Shopping Centre (Image: Londonderry)
The mall’s Shoppers Drug Mart store recently expanded its offerings to include a new BeautyBOUTIQUE component, offering a range of cosmetics and fragrance brands at Londonderry. The Shoppers Drug Mart store at Londonderry spans about 17,000 square feet on the main floor in a space adjacent to No Frills.
And the biggest announcement as of late is the retention of the Hudson’s Bay department store at Londonderry, albeit in a smaller footprint than what has operated for decades in the mall. Hudson’s Bay is downsizing its store from about 118,000 square feet over two floors to about 60,000 square feet on one level, which will feature outlet pricing. The store downsizing will be completed by the beginning of September according to the landlord.
The Hudson’s Bay store will occupy the first level of the shopping centre, creating an opportunity upstairs for the landlord to re-set the mall’s tenant mix with multiple leasing opportunities. New tenants could include retail and services depending on what’s conceptualized and signed.
In 2014, it was announced that Londonderry would see an investment of more than $130 million to overhaul the centre, including major interior alterations and exterior elements. With that, many new retailers were added to Londonderry including anchor La Maison Simons. In 2017, the mall’s overhaul was revealed to the public with Simons opening its beautiful two-level store in August of that year.
New tenants have continued to be added, including in the fall of 2019 when H&M opened a large store in the mall near Simons. Londonderry is also home to a substantial number of independent retailers operated by local entrepreneurs.
Hudson’s Bay at Londonderry, Image: Londonderry Main floor of Londonderry. Click image for interactive mall map, featuring both levels.
Londonderry opened in 1972. At the time, it was the largest mall in Canada west of Toronto, as well as the only two-level mall in Western Canada. Today, the 780,000 square foot centre features about 150 retailers with anchors including Hudson’s Bay, La Maison Simons, No Frills, Winners, Shoppers Drug Mart, Dollarama, Fabricland, and Fit 4 Less.
When Londonderry originally opened, its three department store anchors included Hudson’s Bay, Eaton’s, and Woolco. The No Frills store now occupies part of the former Eaton’s space on the main floor with Fit 4 Less, while Fabricland, Dollarama and the food court are located on the second level of the former Eaton’s. Simons is located in the part of the mall that had been Woolco — Army and Navy occupied the space after that and it shut in 2016.
LensCrafters at 33 Bloor Street East (Image: Dustin Fuhs)
LensCrafters, one of the largest optical retail brands in North America, has opened its new and first flagship store in Canada in Toronto at 33 Bloor Street East in the Bloor-Yorkville shopping district.
The company said the opening will further position LensCrafters as a modern optical retail leader of exclusive brands and reinforce the company as a trusted eyecare and eyewear authority in the region.
Alfonso Cerullo
“As LensCrafters continues to expand in the US and Canada, we look forward to advancing the brand this year with the rollout of our new flagship store in Toronto,” said Alfonso Cerullo, President & GM of LensCrafters, North America.
“Appealing to the well-known local shopping hub on Bloor Street, the store will reflect the effortless integration of design and technology, giving customers a more individualized experience that allows them to easily browse the vast luxury assortment of both optical and sun frames. At the end of the day, we want to be a top destination in the community when it comes to finding the best vision care solutions that resonate with our customers and help people express themselves while seeing well at the same time.
“We are very happy about it. It is really beautiful. The team is very excited. We have the doors open. The customers are coming and we have been accepted in the community.”
LensCrafters Bloor Street (Image: LensCrafters)
LensCrafters was founded in 1983 and currently operates over 1,000 stores in the U.S., Canada, and Puerto Rico. It has about 90 stores in Canada.
The newest flagship store is close to Toronto’s high-end fashion destination on Bloor Street and is part of LensCrafters’ continued North America expansion plans. The company opened its first two flagship stores in New York City in 2020 and two more in San Francisco in 2021 and Palo Alto last year.
“Toronto is one of our major markets and Bloor Street was a location and area we were trying to target for awhile because of course it’s a high premium retail area and for LensCrafters this is part of the target market that we want to try to get a position,” said Cerullo.
“LensCrafters in terms of vision, in terms of strategy, we want to be the high quality optical retailer and the experts of the community.”
LensCrafters Bloor Street (Image: LensCrafters)
The company said the new elevated flagship will encompass the latest advanced digital technology and state-of-the-art design blending eye-catching finishes to create a dynamic customer journey. From quality eye exams to shopping for the perfect frame, the new location will showcase an expanded selection of designer eyewear styles and brands that include Burberry, Dolce & Gabbana, Persol, Versace, and Prada.
“The flagship will leverage a wide range of tools to afford customers more opportunities to meet their needs for a premium in store experience. Customers will be able to digitally explore the wide variety of EssilorLuxottica collections and brands, customize Ray-Ban and Oakley frames, and virtually try-on any frame thanks to the Virtual Mirror technology through LensCrafters’ Smart Shopper interactive in store tool,” said the company.
“The collection of luxury optical and sun styles along with superior lens design and technology by Essilor, will give the brand a larger footprint in the eyewear market. The new flagship will be equipped with high-resolution digital screens and LED-walls displaying eyewear and campaigns to allow customers an immersive experience around the brand’s offering. An added focus will be given to the storytelling of prescription lenses through interactive applications installed both on iPads and touch screens, leveraging the see-through technology to simulate lens features and effects for better vision.
When asked if he sees more flagship stores in Canada, Cerullo replied: “For now, I think we may have another couple of opportunities overall in Canada. They are not short term. I think it’s more on the medium term. Consider them for this type of premium, high-end real estate areas, from when you start looking for locations that you like and when the store is built and you open, you can probably spend a couple of years overall,” he said.
The eyewear and eyecare industry in Canada has become a very competitive one in recent years with global brands setting up shop in the country.
“I believe that you cannot be successful by definition on everything. You should define your target, your piece of the cake where you really want to make an impact,” said Cerullo, adding LensCrafters wants to position its banner as the leader in the medium to higher class space.
“For this type of demographic, for this type of consumer, we want to really make sure that we are going to be the leader . . . We want to be the high quality optical retailer and trusted expert of the community that we serve. So in that community we want to make sure in all the things we’re doing that there’s no doubt for everything about the sight where you want to go for an eye exam.”
LensCrafters Bloor Street (Image: LensCrafters)LensCrafters at 33 Bloor Street East (Image: Dustin Fuhs)
Cerullo said the retailer has presence in both shopping centres and streetfronts with most of its stores in malls.
However, in the future, he said a big part of the company’s investment is in relocation and remodelling of existing stores. He said the strategy is to also make a small shift to more stores in the future being streetfront or outside malls.
The will be taking place this year on September 27-28 in downtown Toronto. Over 60 speakers have already been confirmed, 75% of which are new, and over 40 are C-Suite/VP level executives.
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The eTail conference has been designed to help businesses increase profits with action-packed strategies and connections made with the top mind’s at Canada’s most successful retailers. As with previous years, the conference will be held at the located at 370 King Street West in the city’s downtown core.
The impressive speaker list at eTail 2023 includes some very prominent names. Key learnings on what’s happening in the industry from these speakers will benefit those looking to the digital future following the pandemic. You’ll learn actionable strategies to perfect omnichannel, revolutionize customer service, harness the power of social commerce, drive personalization, and embrace sustainable business practices.
Keynote: Bringing Your Brand Promise And Customer Experience Into Alignment. Discussion point will include:
Communicating a brand promise and what it stands for,
How to gain a deep understanding of customers’ needs, preferences, and expectations,
How to develop a uniform customer experience journey for in-store and online operations,
Training to empower employees to deliver the desired customer experience and brand promise, and
Monitoring and measuring the effectiveness of customer experience strategy.
Scott Adel, AVP, Digital & Store Experience, Canadian Tire
Panel Discussion: Strategies And Technologies Helping Retailers Create A Seamless And Personalized Omnichannel Customer Experience. Discussion points will include:
Using tech solutions for in-store and online channels for a cohesive experience,
Leveraging data analytics to inform omnichannel marketing and sales efforts,
Developing an effective supply chain management system to ensure efficient fulfillment across channels, and
Training employees to effectively deliver on the omnichannel promise and provide exceptional customer service
Daniela Yanez, Director, Digital Ops & Strategy, The Source
Panel Discussion: Generative A.I. And Machine Learning As An Enabler For Retail Growth.
The panel will discuss AI and machine learning as tools that have helped to revolutionize the customer experience, tackling all of your AI questions so that your online experience is effective and efficient. That includes the topics of:
How AI is alleviating manual processes your team used to perform,
From creating content to campaign execution—the digital marketing uses of AI,
From Bots to Buy—using AI to help shape onsite experiences, and
Challenges identified in AI implementation – what obstacles are the hardest overcome.
Andrew Go, Chief Digital & Data Officer, Staples Canada
Fireside Chat: Hacking Customer Loyalty: Proven Strategies And Techniques For Strengthening Customer Relationship And Loyalty
The discussion will be on how to create a loyal customer base that can enhance your revenue, reduce business expenses, and generate more referrals compared to companies lacking devoted followers. Included in the discussion:
Building a strong brand identity that connects with your customers,
Creating a sense of community around your brand,
Use data to personalize the shopping experience for customers, and
Use rewards and incentive programs to help build loyalty
Retail Insider’s Craig Patterson is also speaking at this year’s eTail Canada.
Download the to see the complete and inspiring sessions at this year’s eTail Canada Conference.
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The outcome of the Metro labour dispute will undoubtedly exert a profound influence not only on the Metro grocery chain but also on other grocers throughout the country.
The labour dispute currently unfolding at Metro’s 27 grocery stores in the Toronto area has emerged as a pivotal focal point in the ongoing struggle for worker rights and equitable treatment within the food retail industry. With an impressive workforce of 3,700 dedicated employees engaged in strike action, this conflict has already garnered considerable attention from scholars, policymakers, and the public alike. Beyond its immediate ramifications, the resolution of this dispute possesses the potential to reverberate across the entire Canadian grocery sector, thereby establishing a precedent for the broader frontline food industry.
At the crux of the matter lies the collective aspiration of the workforce to negotiate improved working conditions, just wages, and enhanced benefits. However, such a plea is far from simplistic within the confines of a low-margin business environment. The issues raised by the union reflect systemic challenges afflicting numerous frontline workers operating within the sector. Amidst the mounting cost of living and economic uncertainties, employees are earnestly endeavoring to safeguard their rights and livelihoods, and their demand for fair treatment is both rational and justified. Who, indeed, could contest such a noble pursuit?
Adding fuel to the motivation of union workers to strike is the recent disclosure of hefty bonuses bestowed upon grocery executives in recent months. As per company documents disclosed earlier this year, the total compensation for the top five Metro executives for the year concluding in September 2022 amounted to a staggering $13.2 million, signifying a four per cent upsurge from the previous year’s equivalent period. Notably, the bonus component of their compensation witnessed an astonishing 13.7 per cent escalation, reaching a sum of $3.7 million. This disparity equates to a stark $1,000 for each employee currently partaking in the strike. Comparable announcements of corporate bonuses by other grocery retailers have elicited disapproval from both Canadians and grocery employees alike.
It is noteworthy that most employees at Metro have, in the past, received bonuses in the form of gift cards, typically amounting to $300 for full-time workers. While such a gesture may be perceived as commendable, it also raises concerns about the potential self-serving nature of these rewards, considering they emanate from one’s own employer.
An intriguing aspect of this dispute lies in how union workers have, to some extent, undermined their own union leadership. Despite the latter’s acceptance of Metro’s offer, the workers themselves outright rejected it, citing a significant gap between the perception of acceptability by union leaders and the actual desires of the union workers. A similar scenario unfolded at ports in British Columbia, which have also been grappling with labour issues since the end of June, focusing on matters of salaries and concerns about automation potentially displacing human workers. These occurrences signal a broader trend.
Eric La Flèche, President and CEO of METRO, at the Annual General Meeting of Shareholders, January 25, 2022. (CNW Group/METRO INC.)
Undoubtedly, Metro acknowledges the indispensable value of its frontline workers in their indispensable contributions to maintaining the supply chain and guaranteeing consumers’ access to vital goods, particularly during the pandemic when their unwavering dedication and service came to the fore. Nevertheless, these efforts are frequently undervalued in terms of compensation and job security. Despite a substantial proportion of these positions being occupied by young students or individuals seeking supplementary income, the industry is not renowned for providing ideal and desirable working conditions. It may be time to contemplate novel approaches to the management of grocery stores.
Metro’s current business model inherently poses challenges to accommodating higher wages and nurturing career-building positions at the store level without reducing the number of employees. For instance, to implement a 10% increase in salaries without impacting retail prices, the workforce would need to be reduced to below 50 employees, at a minimum. This scenario necessitates the incorporation of automation and artificial intelligence, consequently transforming the nature of numerous jobs within the industry. Worth noting is Metro’s vast presence, with over 325 grocery stores and more than 600 pharmacies across Eastern Canada, making it a prominent player within the sector, despite not being the largest.
The outcome of this labour dispute will undoubtedly exert a profound influence not only on the Metro grocery chain but also on other grocers throughout the country. A triumph for union workers could embolden frontline employees in other sectors to advocate for their rights, thus potentially setting in motion a chain reaction that could reverberate across the entire retail industry.
Regrettably for grocers, the optics of the situation are not in their favor. Frontline grocery workers currently possess considerable political capital, and they are well aware of this fact. Although most Canadians may not be acquainted with Metro’s CEO, they certainly recognize and appreciate the dedicated individuals such as Jim, Carrie, or Tom, who attentively serve them during their visits to the grocery store. These personal connections carry significant weight, particularly in contemporary times.
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 3 days
Costco Rendering at Bingham Crossing (Image: Costco)
The recent approval of a massive Costco store will be the anchor of the Bingham Crossing retail development just outside of Calgary.
The project by Renco Developments Inc. is being described as a unique, state-of-the-art pedestrian-oriented shopping and lifestyle centre which will eventually include about 500,000 square feet.
The development is located in the Springbank area along the TransCanada #1 Highway and across the road from the amusement and entertainment facility Calaway Park.
Ron Renaud, Owner Rencor Developments, said he believes the Costco store will be the biggest in Alberta at about 170,000 square feet.
Ron Renaud
“We have a Phase One approved for total square footage of 270,000 square feet plus Costco,” he said.
The Development Permit has now been approved, with Costco scheduled to open its doors to its first Members in the Fall in 2025.
The overall project is about 300 acres and will eventually include a residential component to it.
“The massive amount of infrastructure that we have to build. Basically anything in Rocky View (County) at least in the Springbank area has no servicing. That’s why this thing has taken so long to get to this point. We’ve had to buy water licences, we’ve had to build a water treatment plant, we had to have a wastewater plant approved which we did. We’ve now changed that and we’re connecting to the Harmony line (another development nearby),” said Renaud.
“In total, it could be north of two million square feet but that would be a mix of retail, residential. We have approval for a seniors’ facility of about 240 units and we’re hoping to start that with Phase One. Costco is planning to start construction next year, open for 2025.”
Image: Bingham Crossing
Eve Renaud, Vice President of Rencor Developments, said depending on how Phase One is demised the total number of businesses could be anywhere from 50 to 90.
Eve Renaud
“We have the ability to do a grocery store and basically it will be that fundamental retail, that amenity retail, that you would come to expect in a town centre,” she said.
Costco would be the first retailer to open in the first phase of the development.
Ron Renaud said the company is hoping to start Phase One in early 2025 for a Fall 2025 opening or possible Spring 2026.
“The advantage that we have is there are no amenities. There are no services in Springbank right now,” said Eve Renaud. “Grocery stores, banks, medical/dental, QSR, a smattering of fashion. Other national retailers you would come to expect to see in a retail hub.
“So we’re really building from the ground up from a use perspective. Right now Springbank doesn’t even have a town centre per se. It’s a group of 35,000 people that don’t really have a place to go. It is a high street. We’ll have those services that everyone needs to congregate. A dry cleaner. A shoe repair. That type of thing.”
The vibrant open-air gathering place will provide access to high quality shops, dining, services and amenities in a village-like atmosphere. The first phase of Bingham Crossing will be 80 acres, including the development of a new senior’s housing complex and vast municipal green spaces.
“The location is pretty key and this is why Costco selected it. It really is regional. It’s located on a major highway which is going to go at some point to 10 lanes. With the opening of the southwest Ring Road, the amount of traffic that it’s going to generate will be pretty significant,” said Ron Renaud.
“It serves not only what I call West Calgary, but Springbank, Cochrane, Canmore, Banff. Basically anybody driving westward to the mountains or the mountain parks or any of those vacation spots are going to drive by this site. So it has a pretty key regional importance.”
Rendering: Bingham Crossing
He said Costco’s presence in the project is like the “Good Housekeeping Seal of Approval.”
“It basically solidifies the regional location. The Costco guys are very excited about it. They’re expecting some very big things from the store. They’ve done well in the Calgary market.”
“It’s very important for our tenant mix for the surrounding property,” said Eve Renaud, “because having such a great regional draw really elevates the quality of retailer that we can attract in the centre. So it really will improve the tenant mix.’
Eve Renaud said Harmony is a new residential community three minutes away from Bingham Crossing which at full build out will be home to about 15,000 people.
“They have a very small component of retail. We work closely with them and they view that we will be the main amenity base for that community as well,” she added.
Ron Renaud said the company purchased the land in 2007.
“Everybody says why has it taken so long? The approval process was complicated and lengthy for everything we were doing . . . No potable water, no wastewater, no off-site improvements. All of that. And layer on top of that the approval process to get things approved. To get a development permit,” he said.
“There will be additional retail. We’ll bring forward other development permits to build out what I call the west quarter section which has the concept plan in place for over a million square feet. I think the majority of that will be commercial with some residential. The east quarter section lands will more than likely be a mix of different forms of residential development.”
“Even before the pandemic, rents were so high that it was difficult – sometimes impossible – for small businesses to break even or tuck away a small profit for a rainy day. Media headlines regularly shared news of businesses forced to close because of increasingly insurmountable rent costs. In Ontario, there are 400,000 small businesses, and across Canada small businesses employ almost 70 per cent of people in the private sector,” says the report.
“Small businesses are the heart of vibrant, friendly communities – places to gather, do some shopping, and take care of errands. Entire neighbourhoods are named for the diversity of the small businesses and people that inhabit them. Places like Little Jamaica, Little India, and Chinatown enliven our cities. But a lack of commercial rent protections in Ontario is threatening small businesses, the jobs they have created, and the vibrancy they bring to our communities.
“People who are not small business owners may be shocked to learn there are neither guidelines for fair and predictable rent increases nor set standards for leases and shared costs. Commercial landlords can charge, change, and do almost anything they want. It is legal to increase rent by any amount. Landlords can evict small businesses in favour of new tenants or leave the space vacant, even after small business owners have paid out-of-pocket to renovate their space. Landlords can pass on surprise bills for thousands of dollars at their sole discretion. They are not held to basic building maintenance repair or heating and cooling standards. Commonly accepted guidelines and standards that exist for residential tenants are not in place for small business tenants. And, there is no official mechanism to resolve disputes between commercial landlords and tenants. This leaves small business tenants at the mercy of landlords, whose property investment appreciates in value with or without rental income. Even the most savvy small business owners have little leverage to negotiate fair lease agreements.”
Yonge at Dundonald (Image: Dustin Fuhs)
The commercial rent affordability crisis is threatening their livelihoods, the jobs they create, and benefits they bring to neighbourhoods. It is clear that action is needed by the Ontario provincial government to remedy the commercial rent affordability crisis for small businesses, added the report.
The commercialrent.ca website was launched to bring awareness to the issue.
Aaron Binder, Director of the Better Way Alliance, said the business group put together a survey of its members and a few non-members in late 2021 and 2022 because it had been receiving a lot of feedback about rent costs and lease agreements.
Aaron Binder
“We’re hoping to develop some deeper dives into the philosophy of free market versus fair markets in relation to commercial property,” said Binder.
“We’re a group of businesses that advocate for ethical employment, for decent work, paid sick days, higher wages, fair scheduling practices. All of our businesses exemplify these ideals and we’re across every industry in Canada.
“And the evidence we see not just from our businesses but from across the globe is that when you treat your employees well, they treat your business well.”
Sparks Street in Ottawa (Image: Dustin Fuhs)
The report found that nine in 10 small businesses list rent as one of their top three expenses. For over half, rent accounts for more than 60 per cent of overall expenses.
The report added that three quarters of small businesses have experienced a one-time rent increase of 10 per cent or more; one in six have experienced an increase of 50 per cent or more; one in 10 have seen their rent double during a single increase.
It also said that over 40 per cent of small businesses have moved in the past due to rent increases or difficulties with their leases or landlords. Over half anticipate being forced to move at the end of their current lease for these reasons.
The report said the provincial government must:
• Create rent guidelines for year-overy-ear increases that apply to all commercial tenants, including new tenants;
• Standardize leases to ensure fairness and transparency for shared costs, and ensure priority is given to existing tenants when lease term is up; and
• Create a mechanism to enforce rules and resolve disputes.
The gap between general inflation and food prices is puzzling — and frustrating — for many, especially because the Bank of Canada’s interest rate hikes don’t seem to be affecting food prices at all. In periods of high inflation, central banks raise interest rates to moderate price increases, or, ideally, bring them down.
But food prices don’t respond to interest rate policies as much as other factors do. This is because food demand is relatively steady — we can’t put off food purchases like we might put off the purchase of a new computer or car.
So if interest rates won’t help bring down food prices, what will?
Competition Bureau report
Metro in Vaudreuil-Dorion, QUE (Image: Field Agent)
Canada’s competition watchdog, the Competition Bureau, recently released a report that called for more competition in the Canadian food retail market. The report suggested that more competition might help high food prices in Canada.
The CEO of Sobeys testified that they didn’t see the same growth as Metro and Loblaws because their pharmacy business is smaller. However, the Competition Bureau’s report ignored this, instead focusing on individual profit growth, which was similar for all three major brands.
Although this is just a small sample, if margin growth truly played a significant role, we would expect it to be more directly reflected in profit growth.
Foreign competition
PHOTO: ALDI
The Competition Bureau’s report also suggested that more foreign competition would benefit Canadian consumers, but that foreign competitors viewed the Canadian market as tough to break into.
Retail concentration can be a concern if it gives companies the power to extract higher profits from consumers. On the other hand, size provides economies of scale, which allows companies to build efficient distribution networks and buy in larger volumes.
But the report is completely silent on the trade-offs between concentration and economies of scale. If too many efficiencies are lost through less concentration, prices could actually go up.
It is worth highlighting that when Sobeys bought a controlling share in Longo’s (a premium regional grocery chain in Ontario) they highlighted distribution and sourcing as key benefits of the deal. Longo’s will operate as it always has but benefit from better buys and distribution reducing costs.
If all of this is true, then what’s actually causing food price inflation?
No single cause for food inflation
The reality is that there isn’t a single cause for food price increases in Canada; there are a combination of factors that affect different food categories.
Russia’s invasion of Ukraine has had a significant impact on the prices of wheat and edible oils. As a result, wheat-based products like pasta, bread and flour have seen increases.
Besides extreme weather, other factors like supply chain disruptions and exchange rate volatility also contribute to changes in food prices.
All these factors are happening simultaneously to create a perfect storm of food price increases. Unfortunately, since there are so many factors involved, there isn’t a single factor that can bring down food prices. It’s a complex situation that will require careful consideration and multiple approaches to address.
By Michael von Massow, Associate Professor, Food Economics, University of Guelph
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.