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.
Vancouver-based outdoor retailer MEC (Mountain Equipment Company, formerly Mountain Equipment Co-op) has opened three concession shop-in-stores in Hudson’s Bay locations in the Greater Toronto Area.
That includes MEC locations inside of Hudson’s Bay stores in downtown Toronto at the Hudson’s Bay flagship store on Queen Street, at the Yorkdale Shopping Centre in Toronto and at Square One in Mississauga. All three concessions replace Forever 21 which operated shops inside of Hudson’s Bay for only about a year, and each spans between 7,000 square feet and 11,000 square feet.
In downtown Toronto, MEC’s newest store is on the second level of the massive Hudson’s Bay flagship store across from a women’s shoe department. At Yorkdale, MEC occupies a second level space accessed from an escalator in the store’s cosmetics department, and at Square One MEC occupies a prominent space with a mall entrance adjacent to Hudson’s Bay.
MEC at Hudson’s Bay Queen Street (Image: Dustin Fuhs)
MEC at Hudson’s Bay Queen Street (Image: Dustin Fuhs)
MEC at Hudson’s Bay Queen Street (Image: Dustin Fuhs)
In addition to the physical stores, MEC has launched on TheBay.com with more than 400 MEC Label styles including outerwear, base layers, supplies for kids, camping gear and packs, and more styles will be added soon according to MEC in a statement.
“MEC doors are officially open at Hudson’s Bay stores across the GTA and we’re thrilled to give Torontonians more access to outdoor gear and expert advice,” said Eric Claus, CEO and Chair of MEC. “We’ve spent more than 50 years inspiring people to get active outside and our latest shops have everything outdoor enthusiasts of all levels need for their next adventure – come say hi!”
A range of goods are available in the three MEC concessions, including weatherproof jackets, hiking boots and base layers to sleeping bags, backpacks, and snowshoes among other products. An assortment of gear, apparel and footwear is available from brands including Scarpa, Salomon, The North Face, Black Diamond and its in-house brand MEC Label.
Dedicated MEC staff work in the three concessions, and are able to provide educated opinions on what consumers should buy, be it a tent, footwear or bike lights. MEC also says that like with its standalone stores, purchases made in the Hudson’s Bay concessions are backed by its Rocksolid Guarantee.
MEC at CF Toronto Eaton Centre (Image: MEC)MEC at Yorkdale Shopping Centre (Image: Dustin Fuhs)
MEC renovated the former Forever 21 spaces which now feature brand-related imagery as well as forest scenes, along with mannequins for different activities and branded fixtures. Each concession operates like a standalone MEC store but due to space constraints, lack larger items as well as bike and ski service stations. Bulkier items such as skis, bikes, canoes and kayaks can be purchased online with the assistance of MEC staff in the concessions, offering expert advice.
The partnership was struck after multiple conversations between MEC and Hudson’s Bay, recognizing the opportunity for two iconic Canadian brands to come together under one roof. In August Retail Insider announced the initiative and interviewed Wayne Drummond, former President of Hudson’s Bay as well as Eric Claus, CEO of MEC.
More MEC locations will open inside of Hudson’s Bay stores in Canada next spring according to Drummond in the interview at the time, and no formal announcements have been made in terms of locations. Hudson’s Bay stores offer enough space for MEC’s concession footprint which means MEC has the opportunity to expand its presence in the Canadian market in pre-existing real estate.
MEC at Yorkdale Shopping Centre (Image: Dustin Fuhs)
Mountain Equipment Company, as it is now called, was formerly named Mountain Equipment Co-op prior to the cooperative’s restructuring in 2020. The retailer is now a corporation with 21 standalone stores across the country. A typical MEC store spans between 20,000 and 40,000+ square feet.
Hudson’s Bay operates a network of 84 department stores in Canada as well as online marketplace TheBay.com. The retailer was founded in 1670 and is part of the Hudson’s Bay Company, which is the oldest company operating in North America and also owns Saks Fifth Avenue and Saks OFF 5TH banners in the US and Canada.
“The new Yorkdale location is a true flagship store for us, it is absolutely stunning and a must see. We are located in the old OVO space right across from Williams Sonoma, Away and Warby Parker. It is 1,580 square feet,” said Carm Sivers, Vice President, Sales and Store Operations for the retailer.
Carm Sivers
“The design is a total departure for us. It is an all white design with great pops of colour, and truly stands out to showcase our pieces. We commissioned designers Nuno Antunes and Gonçalo Silva, partners of Portuguese design firm Gonçalo Silva Arquitectos whose firm has done worldwide design for Louis Vuitton, Nespresso, Luxottica and Guerlain. Nuno and Gonçalo partnered with Aedifica for the implementation of the concept.
“They played with breaking the rules, breaking the ice and breaking the material, while keeping the classic, quality and aesthetic of the brand. This store truly showcases our product and enhances how special and unique it is, while highlighting quality at every turn.”
Psycho Bunny at Yorkdale Shopping Centre (Image: Psycho Bunny)
Sivers said Yorkdale is one of Canada’s premiere malls and the third largest shopping mall in Canada.
“It truly is Toronto’s shopping destination. Yorkdale retailers showcase their best-in-class store concepts and present their best store experience to the shopper,” she said.
“It is also one of the country’s busiest malls and gets an abundance of foot traffic on a daily basis. For us it was a total fit to be there. We identify with everything the mall stands for aesthetics, fashion, cutting edge and high end taste for those who love to shop. Anyone who is anyone needs to be there.”
Sivers said the retailer is definitely looking at a few more opportunities in the Toronto market, where it makes sense.
Psycho Bunny at Yorkdale Shopping Centre (Image: Psycho Bunny)
“We do not in any way want to over store ourselves, as we want to open in brand right locations,” she said.
“Toronto is the New York City of Canada. It is truly a dynamic metropolis. The Toronto consumer is fashion forward and fashion savvy. Toronto is home to such a diverse population. People love to shop in Toronto, as well as it being a huge tourist city, and hosts people from all over the world. Culture, confidence, and style is how I would describe the Toronto consumer.
“There are definitely plans to open other stores across North America. We started at 32 stores at the start of the year, we are currently at 43 (four in Canada) and will close the year off with 60 locations. We will look to possibly open another 20 next year across the US and Canada. We will continue to be thoughtful about which markets and malls we enter. It needs to make sense for the brand. We have an aggressive expansion process but a smart one. We hope to be international in the near future.”
The Yorkdale Shopping Centre store is a continuation of the brand’s ongoing Canadian expansion of brick and mortar stores that started in Summer of 2022 with openings at CF Eaton Centre and Toronto Premium Outlets. It also has a location in CF Carrefour Laval near Montreal.
Jeff Berkowitz of Aurora Realty Consultants represents the brand in Canada and negotiated the four store leases on Psycho Bunny’s behalf.
Psycho Bunny at Yorkdale Shopping Centre (Image: Psycho Bunny)
The newest store is located on the ground floor of Yorkdale’s Shopping Centre with a large-scale LED video wall displaying the brand’s vibrant stories.
Kenny Minzberg
“Psycho Bunny is thrilled to see such tremendous retail growth, and particularly proud to open at Yorkdale Shopping Centre” said Kenny Minzberg, COO of Psycho Bunny, in a statement. “Our unique take on menswear has earned us a very loyal customer base and we are grateful and excited to drive continued growth throughout 2022 and beyond.”
In a sea of sameness, Psycho Bunny is known for classic styles that stand apart, with an unconventional logo, unexpected detailing, expressive pops of colour and meticulous craftsmanship, says the company.
“Each piece is created with an emphasis on quality and has tailored details such as mother of pearl buttons, exclusive pique fabrics and taped seams. Even their signature emblem, a rabbit and crossbones, requires 4,000 stitches to create. The store will carry the brand’s full assortment, which includes key categories such as t-shirts, polos, swim and their recent addition of accessories,” it says.
Video Interview: Using TikTok To Amplify Your Brand
Connor Curran, Founder, Local Laundry, discusses how the Calgary small business used the TikTok platform to amplify its brand.
Curran talks about the impact the platform had on the company, what it did, the importance of social media for companies and the history behind the company.
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.
Retail in Canada is shifting quickly as e-commerce and digital spending accelerated during the pandemic. Even though consumers started shopping in physical stores following lockdowns, digital habits for many will remain permanent as consumers adapt to a new hybrid retail reality. Even social media channels are now becoming avenues for retailers to sell, with retailers needing to keep up with how consumers are ultimately consuming.
This is leading to a situation where retailers are looking to meet customers where they are online, including Instagram, TikTok and other social media channels and platforms that have the attention of current and potential new shoppers. Retailers not addressing the changing consumer face an uphill battle and possible irrelevancy as competitors fight for market share.
Live shopping via social media and online is also picking up speed in Canada. Showcase, the ‘Home of the Hottest Trends’ retailer based in Toronto, launched live shopping last year and is now broadcasting its items on its website as well as its social media channels. The retailer does so every 48 hours and says that it’s seeing tremendous success with its digital channels also driving consumers to its stores. Independents such as womenswear retailer Freeda’s have also embraced the trend, launching Instagram Live shopping at 5pm three days a week.
Kelly Haut Thacker
The trend is expected to continue and grow as consumers find new avenues to learn about products and shop. Kelly Thacker, SVP of product marketing at Salesforce, said in a recent sit-down interview at Dreamforce Conference in San Francisco that the past two plus years have been pivotal for retail, with e-commerce exploding with a momentum expected to continue. She said that top retailers are investing heavily in digital channels, including various new initiatives to personalize the online experience while also building loyalty and personalization.
Getting digital right is key at a time when consumers are looking to buy how they want and when they want — be it online or in-store. Thacker explained that retailers need to upgrade operations while embracing digital commerce experiences, including innovative strategies and solutions that help deliver efficiency, customer success and ultimately return on investment from these activities.
She said that the key to operational excellence is for retailers to collect the right ecommerce data “at the right time” to gather insights to create more efficient, personalized shopping experiences. This data can help optimize every step of the consumer journey, from searching within the store to checkout to order management. This is because data powers relevant product recommendations with personalization, leading to customer loyalty if everything works as planned.
Data also powers such experiences as one-click checkouts — the ease of checkout online is another important factor according to Thacker. Consumers may abandon baskets if the process isn’t seamless, particularly when compared to a competitor such as Amazon.
Photo: TikTok
Getting to know the consumer is paramount she said, and data gathered can be utilized to build customer profiles that will lead to customization which in turn lends itself to loyalty. Salesforce has launched numerous initiatives in partnership with players also stepping into the e-commerce space.
That includes TikTok — earlier this year Salesforce added the option for retailers to create a TikTok channel within their ecommerce platforms to facilitate social shopping experiences for advertisers. The TikTok platform is massive with about a billion users globally.
Advertisers, utilizing the Salesforce Commerce Cloud ecommerce CRM platform, are able to get smart feeds where products can be showcased, be it advertising or dynamic video. Shoppable and trackable ads are made possible by automatically syncing to product catalogs already stored within Commerce Cloud.
Thaker noted that retailers selling online and through platforms such as TikTok must be where customers are, be it whichever channel the consumer prefers. At the back-end for retailers, data must flow across the channels so that retailers can deliver connected experiences in the most efficient way, she said.
One trend she noted is that the majority of customers now look to digital channels when planning and making purchases, with younger consumers doing so on even a greater scale. Social media will continue to be prominent with platforms such as TikTok seeing usage rates far higher than Instagram and Facebook globally, combined.
Photo: VOI
Getting it right will be critical for retailers in Canada this upcoming Holiday Season. Already, some groups such as Retail Council of Canada are predicting lower retail sales in Canada this year leading up to December, which means competition will be fierce as retailers attempt to reach consumers when spending will be high — the shopping period leading up to the December holidays is paramount to most retailers, representing the highest sales period of the year.
With the holidays approaching, Showcase and other retailers will continue to stream what’s available in-store online where numbers its are growing — Showcase said in an interview earlier this year that it is seeing rapid growth in viewer numbers for its digital shopping channels. Other retailers are taking note and jumping on the bandwagon, while those not doing so risk losing market share and being left behind. We’ll follow up on this story as retail continues to shift further into digital channels into 2023.
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.
The majority of Canadian small businesses say they are now doing the same or better than they were two years ago before the pandemic hit, according to Scotiabank’s third annual Path to Impact Report.
“As we see reinvigorated consumer demand, businesses are reporting positive sales and revenue numbers, and less cash flow concerns. While it’s encouraging to see more optimism, the road ahead will pose new challenges,” said Jason Charlebois, Senior Vice President, Small Business, with Scotiabank. “Small businesses are facing serious economic headwinds from inflation, rising interest rates, and labour market shortages.
“The resiliency of small businesses is showing through once again as most of them have been through such a difficult period over these last several years with lockdowns and health and safety restrictions as a result of the pandemic. The economy has been exceptionally strong over these last six months, (but it’s) now turning.”
Charlebois said the resilience of small businesses is clearly showing through despite the big economic headwinds and they’re confident in being able to survive a recession and/or another wave of the pandemic.
“What small businesses had to endure the last several years really forced them to act quickly, be very focused on survival, innovating . . . and going through all that they went through in the last several years and now seeing the world coming back to a more normal place, I think rising interest rates, inflation and even a possible recession doesn’t feel as intimidating as some of what they had to endure over the last several years which was really unchartered territory in terms of all the things that happened during the pandemic,” he said.
Image: Sendle
The Scotiabank Path to Impact survey found:
75 per cent of Canadian small businesses surveyed say they’re doing the same or better than they were two years ago – up from 54 per cent in last year’s survey;
34 per cent of small businesses say they are being impacted by inflation, with 37 per cent of those businesses saying it is having a significant impact, and four per cent having a critical impact;
24 per cent of small businesses say they are impacted by rising interest rates, with 42 per cent of those businesses saying it is having a significant impact, and five per cent a critical impact;
25 per cent of small businesses say they are currently being challenged by the labour market shortage and/or are having trouble sourcing materials;
83 per cent say they are better equipped today to survive another wave of the pandemic and 81 per cent of small business owners said they are equipped to handle a possible recession;
65 per cent foresee needing financial support in the future, and those with higher revenues above $500K foresee needing more than those with revenues under $500k;
90 per cent of business owners have turned to someone for advice or support over the past two years, with 49 per cent of those who turned to a financial advisor saying their business is doing better; and
11 per cent reduction in businesses reporting cash flow concerns over the past two years.
“With all that’s happening, it’s no surprise that this year, more small business owners have turned to someone for advice. To help navigate these choppy waters, business owners should seek out credible advice and support. Advisors are there to ensure business owners protect the companies they’ve worked hard to build, helping them adapt to global economic challenges and chart a path forward. In fact, those who turned to a financial advisor report that they are doing better than those who did not,” added Charlebois.
Scotiabank has the following tips for small business owners:
Proactively explore financing options If you feel your business needs additional financing to withstand future economic headwinds, it’s best practice to be proactive, and start those conversations with your small business advisor sooner than later. Whether it be increasing your line of credit, exploring additional loan programs, or finding support with identifying and applying for government-based assistance programs, your Small Business Advisor can help you plot a course of action to make sure your business is best placed for continued success.
Don’t let wasteful practices curtail your bottom line With increasing inflationary pressures, and a myriad of other contemporary economic challenges, it’s never been more important to make sure your business is as streamlined as possible. With 29 per cent of small businesses ranking cutting costs wherever possible as their number one immediate priority, talk to your small business advisor today about where you can find efficiencies in your organization’s operations to make sure you are maximizing your revenue.
Stay ahead of the curve on trends, and always have a contingency plan As a business owner, it’s vital to plan ahead and anticipate any changes to the business environment, whether in your marketplace/sector, in your local community, or in your personal life. More than 80 per cent of small businesses surveyed said they received some form of financial relief from the government during the pandemic. Some of those relief loans are set to come due next year so it’s important to work on a repayment strategy now. With the possibility of a recession, continued interest rate volatility, increase in freight costs, and continued supply chain disruptions likely to remain, a contingency plan is one of the best lines of defence.
Keep digital top of mind The global economy and advances in technology have created a huge world market, with an array of opportunities for commerce, sourcing labour talent and marketing your business to new customers. What’s more, not all businesses need a storefront. A strong digital presence can mean a lot of the overall operations can be conducted from your own home, and remote and hybrid work options have demonstrated they are here to stay.
Spot new opportunities Evolving and learning from past successes and failures is a great way to grow as well as provide a renewed spark and excitement in your business. Revisit your existing products and services and explore if there is a place to add something new. Paying attention to trends in your industry and staying on top of current news can be great sources of inspiration. Be open to uncovering new opportunities and seek out the advice of a Small Business Advisor, who can help you plan your next big idea.
Nature's Emporium at the Shops at One York (Image: Dustin Fuhs)
Nature’s Emporium is expanding to open its 6th location in Oakville and is looking to open more stores in the upcoming years outside of the Greater Toronto Area.
The new store will be 25,000 square feet and will be located in the Dorval Crossing Plaza in Oakville. The location will be opening in the Fall of 2023 and will be the sixth location in Canada as its fifth store is opening in March of 2023 in Toronto at 1 York Street.
“We are really pumped about the new Oakville location because it is a great market, a very active community, and there are a lot of people who are health oriented. The Dorval Crossing Plaza has been there for a very long time as it is entrenched in the neighbourhood, and that is what Nature’s Emporium is all about – we are the neighbourhood’s health focused food store serving the community, so we are very excited about opening in Oakville,” says Joe D’Addario the CEO of Nature’s Emporium.
“You Are Only Going to Find it Here”
A rendering showing where Nature’s Emporium will open its second location in Ontario’s Halton Region. The new store is set to open in Spring/Summer 2023 inside the Dorval Crossing shopping centre in Oakville. (CNW Group/Nature”s Emporium)
Along with the announcements of the new store in Oakville, Nature’s Emporium has also announced it is going to expand its line of grab and go prepared food options to continue to meet consumer needs.
“We are expanding our prepared food line where people can come in and get a healthier meal, take it home and it is ready to eat. That has been a big part of our expansion as we are expanding our juice bar, offering healthier smoothies, as well as cappuccinos and lattes. The grab and go selection is going to be meals that cater towards more specific diets that everybody is doing right now, such as vegan or keto diets. I think that is where we will be innovating. You are only going to find it at Nature’s Emporium and nowhere else, so that is key and we are innovating our kitchens. And the rest of the store is going to stay true to what we have had throughout the 30 years of being open.”
Nature’s Emporium’s produce is always 100 percent certified organic, which D’Addario says sets it apart from other grocery stores such as Sobeys or Walmart. Nature’s Emporium also has one of the biggest selection of supplements, vitamins, and health and beauty. It also serves its own private label that is “always organic, always natural, and a caring brand. It sets us apart because it is high quality and in today’s time – at a discounted price.”
New OMNI Pick Up Lockers
Nature’s Emporium at the Shops at One York (Image: Dustin Fuhs)
Nature’s Emporium is going to make it easier for customers to pick up their orders by adding new Onmi channel lockers, which will provide people the ability to pre-order their food and come pick it up at the store anytime of the day. These will be located outside of stores.
“1 York Street in Toronto will be the first store where we will be having the lockers as part of our shopping experience. After the customer places an order, we will have it ready within two hours and customers don’t have to come into the store. The lockers will be outside and have coolers, freezers, and space for dry goods. Customers can pick up their order by scanning the locker with their phone. The locker opens, they can take out their order, and take off. So it makes things easier, especially downtown.”
New E-commerce Experience
Image: NaturesEmporium.com
D’Addario also said it is looking to renew their e-commerce platform with a whole new website where it will be easier to navigate and he wants to transition the company from a Brick and Mortar to a “Bricks and Click” where they can integrate more technology in and outside of the stores.
“We will be building our e-commerce site and making it easier to navigate, customer friendly, and easy to find products. We are not just in it for the food business. We are in the education business so we want our website to be very educational and help people with trying to change their diet and try to educate them through our online blogging and having online experts as well.”
With the new e-commerce site, which will be available in about six months, will also include the ability for customers to use the technology in stores. Customers will be able to use their phones to scan barcodes, find out about products, read labels easier, and if something is out of stock, customers can place an order right there and it will be delivered to their home. Along with the delivery services like Instacart, the new e-commerce site will allow customers to order locally and all over Canada.
“We have learned a lot through the pandemic. We were very much a Brick and Mortar store and when the pandemic hit – it turned everything upside down and we had to pivot our business. We had to offer curbside pickup and we quickly had to improve our website so people could order online. It taught us we needed to improve our e-commerce platform so that was the biggest learning the pandemic brought us.”
Expanding Outside of the GTA
Image: Nature’s Emporium
Nature’s Emporium currently is only located in Newmarket, Maple, Burlington, and Woodbridge; however, it is about to expand beyond the GTA line. D’Addario dropped the news of opening a new location in London Ontario. This will be the first location outside of the GTA and the official announcement will be coming out shortly.
In addition to expanding into London, D’Addario said within the next ten years, he is hoping Nature’s Emporium will have up to thirty new stores and will hopefully be Coast to Coast.
“Our big goal is to be Coast to Coast. We will make our way out to British Columbia, Alberta, Manitoba, and the East Coast. And also growing our Onmi channel and e-commerce experience – so that is our big goal.”
For the new store opening in Toronto and in Oakville, Nature’s Emporium will be having huge grand opening events to welcome the community with entertainment, free samples, a bread ceremony and “it will just be a big party.”
“We are very hands-on and we are still a family owned business. The biggest part of us is that we have been around for thirty years and we have a great relationship with our customers. Our customers can find us walking around the floor in our stores. You never learn more than when you are talking to a customer on the floor and that is where I have learned the most from customers. People trust us when they come in as everything is 100 percent certified organic and we are looking forward to serving more communities.”
Edmonton-based leather footwear and accessories company Poppy Barley is poised to grow from its Alberta roots and expand to other parts of the country.
And the retailer, spearheaded by founders and sisters Kendall and Justine Barber, has set its sights on first opening locations in Toronto and Vancouver.
“Coming out of the pandemic, we’ve had a very strong year for sales growth and our two fastest growing markets are BC and Ontario,” Justine Barber told Retail Insider. “So we’re looking at actually adding stores into Vancouver and Toronto.”
Image: Poppy Barley at Southgate Centre
She said the retailer is looking to expand to Vancouver first for Spring 2023 and then Toronto for Fall 2023.
“I’m thinking we definitely design for an urban consumer who is on their feet a lot, who wants stylish but comfortable and walkable shoes. So I think our design aesthetic fits really well within those cities and then I think our values as a Canadian brand focused on sustainable materials and ethical production resonates as well.”
Barber said the United States is always a ‘big fish’ to pursue and the retailer has experienced about 200 per cent year-over-year growth for US sales.
“So I think after we enter the major Canadian cities we’re definitely looking at the US,” she said.
POPPY BARLEY STORE AT SOUTHGATE CENTRE IN EDMONTON. PHOTO: POPPY BARLEY
Jeri Brodie, Broker of Record, Senior Vice-President, of Aurora Realty Consultants, which is helping the brand expand, said the retailer is looking for between 1,800 and 2,000 square feet in an urban retail node with mid-to-upper household income in surrounding residential, synergy with other fashion retailers, consistent walk-by traffic, ease of access by car and public transit and availability of nearby parking.
The first Poppy Barley physical store opened in August 2017 in the Southgate Centre in Edmonton. Prior to that, the retailer had a showroom within its office. Then it opened its second location in the Spring 2019 at CF Market Mall in Calgary.
The company also has Warehouse space in Edmonton which is a local pick up location only.
Poppy Barley will operate pop-ups later this month in both Ottawa and Vancouver.
Poppy Barley 2022 Pop-up Schedule
Brodie described Poppy Barley as a certified B Corp business which fully embraces its motto of “luxury for the people and the planet.”
She said space is surprisingly tight in Toronto right now for good retail streetfront nodes. The retailer is looking for space in enclosed malls, high traffic retail streets and mixed-use centres.
“The two sisters co-founded the company and they are very community oriented. They both live and started the company in Edmonton. Alberta is their home stomping grounds. However, they have for many, many years now done these pop-up shops right across the country,” said Brodie. “And they would run anywhere from two to five days and in a lot of smaller centres – Victoria, Kelowna, Saskatoon, Ottawa, lots of them in Toronto.
“And mostly in response to their e-commerce sales. Before COVID and right after we had done Market (Mall), they wanted to kind of settle there for about a year or so and then COVID hit. So their expansion to open a flagship store in Toronto got delayed due to COVID.
“Thankfully they’ve managed to survive through that and are now back in expansion mode with Toronto being a pretty important centre for them just based on the success of their pop-up stores here as well as their online sales.”
Image: Poppy Barley
Image: Poppy Barley
Image: Poppy Barley
Brodie said the retailer is not the kind of brand that’s going to have 10 stores in a city like Toronto but there’s probably room for up to four over the next five years.
“I think when we open the first store we’ll be able to get more information in terms of where people are coming from and that will help dictate future stores. Certainly for now we’re looking at one store in Toronto and we’ll see where it goes from there, understanding that the size of the market will probably warrant some additional stores over time.”
The retailer’s name has deep meaning. Poppy seeds and barley corns were the original unit of measurement in shoemaking.
“The idea for Poppy Barley started when my sister was in Bali and went into a shoe store, tried on a pair of boots and she couldn’t quite fit them up over her calves and the guy took out a measuring tape and said let me measure your legs and I’ll just make the shoes to fit you,” said Kendall Barber, in a previous story with Retail Insider.
“So Justine just kind of thought why don’t we all make shoes that way. It makes sense that we can combine the craftsmanship of shoemaking with some technology to be able to make better fitting shoes for everyone. So that’s what started Poppy Barley. She came back to Canada. She enrolled me. Got me on board with her and the two of us set out together to create Poppy Barley.”
Image: Poppy Barley at Southgate Centre
The retailer started as an e-commerce company.
“Very early on customers started asking us to see the products. We started by setting up a little table on Thursday afternoons where people could come and see the boots and the shoes. That eventually led to having a showroom and then from there we did our first store,” added Kendall Barber.
“Poppy Barley fills a unique gap in the Canadian retail landscape. The footwear market is crowded with cheaply-made, uncomfortable shoes or logo-heavy, preposterously-priced brand name footwear. Poppy Barley creates high quality shoes at a mid-market price point. We’re committed to invest in materials not markups. We’re not willing to compromise comfort or design or function or social responsibility. We’re the future of footwear.”
“Canada’s Competition Bureau study is nothing more that a soul-searching expedition. But this exercise is deeply important for Canadians, and most of all, for the Bureau itself.”
Canada’s Competition Bureau decided to investigate the Canadian food industry, and more specifically, our grocery sector. For years, many were calling for this, recognizing the Bureau has little authority or power over anything. It waited until food inflation became a political hot potato to investigate the matter. Better late than never. Even its new director admitted to the problem of powerlessness. For instance, the Bureau can’t force any company to submit any body of evidence for the upcoming study. Quite sad really.
Make no mistake though, this study is all about the Bureau, nothing more. It needs a different approach, a new perspective on things. It clearly requires more knowledge about the food industry overall. When evaluating mergers and acquisitions, the food industry deserves a longitudinal analysis to better appreciate how consolidation can impact sectors over time, like we’ve seen in groceries and processing. Oligopolies can work if independents and smaller players remain somewhat sheltered from overbearing market forces. Miscalculated compromises can only lead to regulators overlooking our market’s most fundamental element, the consumer.
Consumers in many cities now have only one grocer, and fewer choices are offered in stores due to the continuing pressure imposed on food processors, especially smaller operators. Many have given up. Unlike other industries, food manufacturers must pay grocers to do business with them. Listing fees, marketing costs, and the list goes on. Such a foreign concept for people who may not understand the economics of food distribution.
Canadians should not expect any major changes to the industry anytime soon coming from the study. For years, the Bureau has rubber-stamped many deals and has investigated accusations of collusion on countless occasions, with limited success. Chocolate, salmon, and of course, bread are some examples. That needs to change.
In 2017, when Canadians found out about Loblaws’ bread scheme, consumers were insulted. It was very much seen as an ethical blunder by our country’s number one grocer. With $25 gift cards, everything seemed forgotten and forgiven. Not quite. With higher food prices, the bread price fixing scandal rapidly became, in a matter of months, a moral issue for Canadians. The investigation actually started in 2015 when Loblaws admitted its wrongdoing. For 14 years, from 2001 to 2015, it admitted to fixing bread prices in Canada, along with Weston Bakeries, owned by Weston Companies at the time. The scheme allegedly included 5 more companies; all denied their involvement. After 7 years, we still haven’t seen anyone being accused or receiving any fines. Competition laws prohibit any collusion, and companies can receive fines of up to $25 million and 14 years in prison. But without a watchdog watching, the Bureau has a lot of unfinished business.
Canadians are violently voicing their frustration and have somewhat singled out grocers as the inflation boogeymen, mainly Loblaws. The evidence to accuse any grocer of profiteering is weak at best, but it doesn’t matter. Even reporters from other countries couldn’t believe the backlash Loblaws received when it opted to freeze prices last week for its No Name products. Loblaws is arguably the most hated grocer in the world.
This is no accident. Canadians do have an awkward relationship with grocers for one simple reason. Many Canadians feel unprotected and left hanging high and dry. Knowing that the Bureau remains idle on many fronts, Canadians are taking matters into their own hands, and who can blame them?
In the United States, it can take just a few months to see lawmakers accusing food companies and getting them to write cheques to consumers a few months later. This happened in the case of JBS, the meat packer. The beef giant paid $52.5 million U.S. to settle a price-fixing lawsuit. Also in the U.S., lawmakers are pushing back on the $24.6 billion U.S. Kroger-Albertson deal, arguing it would create a monster of a grocer, with 15% market share. To get regulatory approval, the new company may be forced to let go of up to 375 stores and create a rival for the new company. This would never happen in Canada under the current regime. And by the way, both Loblaws and Empire/Sobeys already have more than 15% of the Canadian market. The Bureau is sleepwalking through these deals.
The report should be done by June 2023. Hopefully, the Bureau will give itself a road map for fundamental changes, to give itself more authority and be able to apply more rigour to any case presented to it. But before that, the Bureau will need to do some soul searching. Let’s call it like it is. Canadians deserve it.
