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Canadian Retail Sales Expected to Increase More than 20% from Pre-Pandemic for Holidays [Report/Interview]

Yonge Dundas Square at 4pm on Black Friday 2022 (Image: Dustin Fuhs)

Canadian retail sales (excluding automotive) for the holiday season are expected to increase 5.7 per cent year over year and 21.2 per cent since pre-pandemic (2019), according to Mastercard’s October SpendingPulse report and holiday forecast, which measures in-store and online retail sales across all forms of payment. 

The report also forecast e-commerce retail sales to grow 3.8 per cent year over year and 63.1 per cent from 2019.

“While there are lots of pre-Black Friday sales and promotions happening to draw customers in early, we’re expecting a return of last-minute gift buying this holiday season,” said Steve Sadove, Senior Advisor, Mastercard, former CEO/Chairman, Saks, and former Chairman, National Retail Federation. “Easing supply chain issues coupled with a return to in-store shopping, has reduced the need for consumers to do their online holiday shopping well in advance.

“We’re seeing more of a holiday period than the individual days. There’s an emotional kick off to the season that takes place on Black Friday and it brings attention and starts creating momentum on the part of the consumer. I think that the days of hey Black Friday is a make or break event for the day or for the consumer is gone. The consumer is spreading out their purchases on a much broader basis. They’re starting earlier and finishing later.

“And you saw a lot of those early promotions in October that a number of the retailers ran. Some of it was driven by the excess inventories that they had in the system. The reality is the consumer is stretched right now. You’re already starting to see a tail off  with  the lower income consumer clearly more stretched than the higher end consumer and they’re looking for value and deals. And I think in many cases they’re holding off purchases to see when the best deals are coming.”

CF Toronto Eaton Centre on Saturday, November 26, 2022 (Image: Dustin Fuhs)

The report predicted that moderate sales growth was expected on Black Friday (two per cent year over year) and Boxing Day (7.5 per cent). Electronics sales, a popular purchase for consumers during these sales events in the past, are projected to be down 12.5 per cent (54.3 per cent since 2019) on Black Friday and 8.2 per cent year over year (54.8 per cent since 2019) on Boxing Day this year as consumer behaviour shifts. 

The report expects the days leading up to Christmas to be the busiest of the season. A major boost for this season’s retail growth is expected from in-store shopping as customers have more flexibility to shop in-store again. Total retail sales are projected to be up  24 per cent year over year on December 23, and 17.5 per cent year over year on Christmas Eve.

It said strong growth for the Jewelry and Leather Goods sector will be seen on December 23 (25.4 per cent year over  year). Apparel is also likely to be a go-to gift for shoppers on both December 23 (17.1 per cent year over  year growth) and Christmas Eve (4.9 per cent year over year), in addition to Electronics (10.7 per cent year over year) on December 23 and 5.2 per cent year over year on Christmas Eve.

CF Toronto Eaton Centre on Black Friday, November 25, 2022 (Image: Dustin Fuhs)

“This holiday season, consumers are looking to stretch their dollars as they deal with economic challenges, including higher interest rates, which makes it imperative for retailers to encourage spending through season-long sales,” said Michelle Meyer, North America Chief Economist, Mastercard Economics Institute.

Sadove said consumers are getting back into the stores. The fact that the sales forecast for the two days before Christmas Day is high is telling the retail expert that consumers are waiting it out until the end.

All the sales events are meant to bring excitement to the store, he said.

“The promotions this year from what I’ve seen so far are a bit more attractive to the consumer than they were last year. Last year was a period of tight supply chains and lower discounting. So you’re back to more what I call a reversion to the norm. So you’re back into more normal behaviour but the new norm is it’s not as dependent upon Black Fridays. It’s much more spread out. That is the new norm. But Black Friday is still important as an emotional kick off to the season.”

IKEA Canada Pushes Sustainability with Second-Hand Furniture Campaign [Interview]

Image: IKEA Canada

Sustainability has become a key issue for consumers today as retailers adapt to shifting behaviours.

According to the IKEA Green Friday Survey, 78 per cent of Canadians say that retailers should sell second-hand options at a discount. Also 62 per cent of shoppers say that inflation has made buying second-hand furniture more appealing than before. 

As well, 53 per cent of Gen Z shoppers in Canada see retailers as not sustainable if they do not have a way of buying back used products.  

Image: IKEA Green Friday

During the recent Black Friday sales, IKEA Canada shifted the conversation from mass to considerate consumption by putting sustainability and circularity at the core of its offer, said Helene Loberg, Country Sustainability Manager, IKEA Canada. 

Heléne Loberg

“By taking a stand on Black Friday and offering customers an opportunity to give pre-loved furniture a new home, we hope to contribute to a brighter future,” she said. 

She said many consumers today want to know what they’re buying, where it’s coming from, what it’s made of. They want to make sure that they’re making good choices when they spend their money. Retailers like IKEA today are providing consumers more information when it comes to that. 

On the recent Black Friday, IKEA asked customers to shop pre-loved furniture from its Circular Hub. IKEA Canada’s Circular Hub houses affordable pre-loved products, showroom displays and discontinued items.  

Image: IKEA Canada

Until November 30, IKEA is providing an additional 25 per cent off gently used items found in the Circular Hub As-Is section. As a bonus, customers can also choose to sell back their own IKEA furniture for an extra incentive.  

Loberg said the As-Is section in IKEA stores has been around for many years. 

“Usually what happens is the customer is coming in and checking out what we have in the As-Is corner, the As-Is department. That’s where we are selling either furniture that has been returned, that we can’t put back on the shelf again or it could be displays that we have used in the store and when we do a lane change we take those displays down and we sell them for a discount in the As-Is section,” she said.

“Usually customers are checking that corner first just to see if they can find something that is a really affordable price and if they don’t then they would continue the shopping through the store.

“From a couple of years back, we are providing a sell back program so customers can sell back their IKEA furniture. And that is great. If you are thinking about buying something new, you can actually see if you have something that you can sell back then you get a store credit that you can use towards your new purchase.

“These are the options that we are offering currently and I think that is actually something I expect to expand. I see a bigger interest. And I think affordability is something that is driving that now. People are looking for more affordable products.”

She said the As-Is area is part of IKEA’s approach to sustainability. 

“We don’t want to throw away anything. So when people are returning furniture that for some reason they do not want or maybe it was a wrong choice, if there is some sort of damage and we can’t put it back and sell it then we will sell it in the As-Is section,” added Loberg.

She said the company is working on assessing every single product to see how it can make those products live a longer life. It has a number of sustainability criteria it is using when it is assessing the products. 

IKEA.ca Cyber Monday

 IKEA’s Green Friday Survey also found:

  • 68 per cent of Gen Z shoppers said that buying back and reselling furniture is something that furniture retailers should be doing;
  • 74 per cent cent of Gen Z consumers think it’s important for retailers to keep their products from ending up in landfills;
  • 81 per cent of Canadians own second-hand furniture, with the majority (72 per cent) having received furniture from family and friends;
  • 65 per cent plan to pass it on to family and friends when they are finished with it;
  • 66 per cent say buying second-hand furniture helps them stay in budget, and 62 per cent say inflation has made buying second-hand furniture more appealing than it was before; 
  • Buying second-hand makes Canadians feel responsible with their money (61 per cent) and less likely to make impulse purchases (43 per cent);
  • 79 per cent agree that purchasing second-hand furniture is good for the environment;
  • 54 per cent say they would rather repair an imperfect piece of furniture than replace it;
  • 41 per cent say they enjoy upcycling or customizing second-hand furniture. 59 per cent believe second-hand furniture tends to have more of a story than new furniture;
  • Canadians overwhelmingly believe that it’s important for retailers to work to keep their products from ending up in landfills, while many also state retailers should sell second-hand options at a discount (76 per cent and 78 per cent respectively.)  

Video Interview: Was Black Friday/Cyber Monday in Canada All It Was Cracked Up To Be?

Video Interview: Was Black Friday/Cyber Monday in Canada All It Was Cracked Up To Be?

David Ian Gray, Founder/Strategist with DIG360 Consulting, discusses the expectations this year around this busy holiday shopping season.

Gray talks about how the dynamic around Black Friday has changed over the years, the changing consumer behaviour and how the shopping sale period has been extended.

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.

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Canadian Jewellery Designer Dean Davidson Opens 1st Flagship Storefront [Photos/Interview]

Dean Davidson (Image: Erin Leydon)

Renowned Canadian jewelry designer Dean Davidson is celebrating his 15th anniversary by opening his first Canadian store in Toronto.

The 1,000-square-foot store in Cabbagetown South in downtown Toronto, located on 145 Berkeley Street at Queen St East, features a commissioned sculpture by Taiwanese-Canadian artist Dennis Lin, utilizing the same brass that Davidson uses in his jewelry.

Internationally recognized, Dean Davidson has been seen on celebrities like Oprah, Jennifer Lopez, Sophie Gregoire-Trudeau and the Duchess of Sussex, Meaghan Markle.

Dean Davidson (Image: Erin Leydon)

Dean Davidson specializes in brushed gold jewelry, silver and custom semi-precious gemstones. 

Dean Davidson

“I’ve lived in this neighbourhood for around 10 years. We love the area. It’s very up and coming. Lots of great changes happening in the neighbourhood and I actually fell in love with this building many years ago. There was a men’s clothing store here called Haven and I thought I would love to have a boutique here one day. And one day I came across the listing and it ended up there was a great office component on the second floor so we decided it was time. We felt like it was the perfect spot,” said Davidson.

“And we feel like too that it’s a destination for our customers. We weren’t looking for the foot traffic as much.”

The location includes retail space on the main floor and a design studio and office space on the second floor. 

“It’s really beautiful. It’s all glass. Windows all around,” he said.

“We’re so grateful to all of our loyal customers who have helped fuel our growth. We’ve seen a lot of growth over the last few years and we just felt it was the right time (to open a physical store). We have a large wholesale business and ecomm business. We wanted to give our customers the opportunity to be immersed in the brand and really for them to experience the full collection in one place. They’ve seen the product online and in stores like part of the collection but now they’re going to get a full appreciation for what the brand is. I just really felt that it was the right time to introduce a retail component.”

The brand is sold in about 250 boutiques worldwide including Saks Fifth Avenue, Nordstrom and Harvey Nichols in Hong Kong among others. About 50 per cent of the business is online.

Davidson said a goal is to open more of its own stores in the future. There are no current concrete plans yet.

“I worked in agriculture for a number of years. I ended up designing jewelry for Paul Hardy who is from Calgary. He’s a women’s wear designer. I worked with him for three years and then silversmithing classes at ACAD (Alberta University of the Arts) in Calgary and then ended up designing my own collection. That’s 15 years ago now,” he said. 

“I launched my first collection 15 years ago. Holt Renfrew picked up that first collection and it just kind of flourished from there.”

Travel is at the very heart of the Dean Davidson brand. Balinese basket weaving, the bamboo forest of Kyoto, and Brazil’s otherworldly sand dunes have all served as inspiration for DD collections, resulting in pieces that transcend time and geographical borders. Fully immersing himself in every place he visits, his perspective as a designer is continually broadened. With each piece, he hopes to encapsulate the wonder and reverence gained from his experiences around the world and share it with the wearer.

Dean Davidson at 145 Berkley (Image: Dustin Fuhs)
Dean Davidson at 145 Berkley (Image: Dustin Fuhs)

Davidson chose to partner with a family-owned workshop of artisans early on in the brand’s foundation. Located in Jaipur, India, the multigenerational workshop cuts every gemstone by hand according to Davidson’s original designs, marrying time-honoured tradition with forward-thinking aesthetics.

Davidson was named the 2019 Canadian Arts & Fashion Awards’ Accessory Designer of the Year.

Davidson said the retailer is known as a demi-fine jewelry brand. The focus is on quality and the look of fine jewelry but at an affordable price point.

“All of our gemstones are hand picked in India. We use better quality metals as well and we’ve worked really hard to create a product that is really long-lasting.”

Additional Images from Dean Davidson at 145 Berkley

Dean Davidson at 145 Berkley (Image: Dustin Fuhs)
Dean Davidson at 145 Berkley (Image: Dustin Fuhs)
Dean Davidson at 145 Berkley (Image: Dustin Fuhs)
Dean Davidson at 145 Berkley (Image: Dustin Fuhs)

Canadian Retail News From Around The Web For November 28th, 2022

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.

Podcast: Discussing the Apple Flagship Store that Just Opened in Downtown Vancouver

Podcast: Discussing the Apple Flagship Store that Just Opened in Downtown Vancouver

Craig and Lee discuss the new flagship Apple Store that opened last week at CF Pacific Centre in Vancouver, marking the first of its kind for Canada. Lee also discusses the media event prior and his opinion on what went on.

The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Interview Series podcast where Craig interviews guests from across the Canadian retail landscape as part of the The Retail Insider Podcast Network.

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Inside Canada’s 1st Apple Store Flagship, Located in Downtown Vancouver [Photos]

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Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/

Le Labo Opens ‘Rustic’ Storefront in Toronto’s Yorkville Area [Photos]

Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)

Estée Lauder-owned fragrance brand Le Labo has opened a new storefront in Toronto’s Bloor-Yorkville area, marking the third location for the brand in Canada and the second for Toronto. 

The store is located in an historic building at 15 Hazelton Avenue, measuring about 1,000 square feet. The store includes an interior that was made to look rustic and historic, as with other Le Labo locations, featuring distressed elements including walls and flooring and signage in the store that looks like it is on old newsprint. 

Contained within is a range of popular Le Labo fragrances as well as candles and home goods, room sprays, products for the body, and various grooming items. 

Jane Baldwin of brokerage Lennard negotiated the store lease on behalf of Le Labo. Jordan Karp of Savills Canada represented the landlord in the lease deal. 

Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)

The Hazelton Avenue store follows two other Le Labo locations that opened before the pandemic. Le Labo’s first Canadian store opened in the spring of 2017 at 876 Queen Street West in Toronto’s trendy ‘West Queen West’ area. A second Canadian location opened in early 2019 at 225 Carrall Street in Vancouver’s historic Gastown area, measuring about 750 square feet. 

The pricey Le Labo brand was founded in New York City in 2006 as a collection of 10 fragrances by Fabrice Penot and Edouard Roschi. The number in the fragrance name indicates the number of notes in its composition and the name of material (Vetiver, Jasmin, Labdanum) refers to the main ingredient or principal essence. The brand now features 19 perfumes, with its most recent (Thé Matcha 26) having been created in 2021. Prices generally range between $100 and over $500 for fragrances and related products. A 500 ml bottle of some fragrances costs over $1,000. Le Labo was acquired by New York City-based beauty conglomerate Estée Lauder in 2014.

Le Labo currently operates dozens of stores internationally, as well as shop-in-stores in leading retailers. Le Labo stores are often located in ‘trendy’ shopping areas as opposed to major malls or typical downtown commercial areas. It’s not yet known if more Le Labo locations will open in Canada, and Montreal is noticeably absent for the brand in terms of a standalone store. 

Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
On the wall in the store. Photo: Craig Patterson

Le Labo became available in Canada in 2010, when Toronto-based 6 by Gee Beauty (at 6 Roxborough St. W. in affluent Rosedale) began carrying the line exclusively in Canada. That exclusivity was lifted in September of 2015 when Nordstrom opened its CF Pacific Centre flagship in Vancouver, also carrying the brand. In February of 2016, Saks Fifth Avenue’s new Toronto flagship opened with a Le Labo counter contained within, and in October of 2016 a Le Labo shop opened within the new Nordstrom at Toronto’s Yorkdale Shopping Centre

Toronto’s Bloor-Yorkville is seeing new leasing activity as retailers see the area as a desirable place to do business. Hazelton Avenue, specifically, recently saw the opening of custom menswear brand Atelier Munro, located a coupe of doors away from the new Le Labo. Other nearby businesses include custom suit brand SuitSupply, luxury women’s retailer George C., several pricey art galleries, and around the corner of Scollard Street Miami-based multi-brand retailer The Webster opened about a year ago. 

Additional Photos from Le Labo at 15 Hazelton Avenue

Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)
Le Labo at 15 Hazelton Ave (Image: Dustin Fuhs)

Captain’s Oven Pizza Opens 1st In-Mall Location with Plans for Expansion [Interview/Photos]

Image: Captain's Oven Pizza

North Vancouver’s Capilano Mall has added a local pizzeria concept to its tenant roster with the opening of Captain’s Oven Pizza — the first location on the North Shore and the first in-mall location for the brand.

“Given that our customer profile spotlights young families, Capilano Mall is the perfect fit for us. The best part of this location is our North Shore customers will no longer need to cross over to Vancouver to grab their favourite pie from one of the best pizzerias in the Lower Mainland,” said Nevin Fernandes, Co-Owner of Captain’s Oven Pizza.

The pizzeria has opened in 1,127 square feet of space across from the BC Liquor Store near the Third Street Entrance.

It specializes in authentic Neapolitan-style pizzas in over 40 varieties — ranging from meat to vegetarian to specialty options — plus the capability to customize one’s own pizza. The team at Captain’s Oven Pizza bakes top-quality pizzas in a three-ton, handmade stone brick oven shipped directly from Italy. Also on offer is a variety of appetizers, salads, and pastas.

“Given the local pizzeria’s popularity in both downtown Vancouver and Surrey, we are absolutely thrilled to welcome Captain’s Oven Pizza to Capilano Mall,” said Chrystal Burns, Senior Vice President, Retail, QuadReal Property Group, which operates the mall. “This addition solidifies Capilano Mall as the best and most convenient destination on the North Shore for customers to pick up their everyday this and that, including fresh-out-the-oven pizza.  We are also looking forward to welcoming Captain’s Oven Pizza to Willowbrook Shopping Centre as part of The Courtyard expansion.”

Captain’s Oven Pizza at Capilano Mall

Founded in 2019, Captain’s Oven Pizza is a family-owned pizza restaurant with locations in Surrey, Vancouver, and North Vancouver with two more locations on the horizon in Langley and Burnaby.

Located along the busy Marine Drive corridor and anchored by the only Walmart on the North Shore, Capilano Mall is the preferred value and convenience mall serving both West and North Vancouver communities. 

Elroy Fernandes, who manages Captain’s Oven Pizza, said the company is scheduled to open a new location at Willowbrook Shopping Centre in Langley in January.

Capilano Mall (Image: QuadReal)
The Courtyard at Willowbrook (Image: QuadReal)

The company is also negotiating to open a new location in the future at Station Square in Burnaby.

“We’re looking to expand into 15 locations in BC. Once we expand to 15 locations in BC, then we are looking at branching into Alberta and Ontario,” he said.

“We’re an authentic Neapolitan brand and what makes us unique is we source everything locally where we can and we also export everything from Italy. What really sets us apart is we try to cater to every single group. We try to cater to different ethnicities. So for example we have a concept called Pizzas Around the World. We try to reach out to the palette of different nationalities. We have Brazilian flavours, we have Asian flavours, we have Indian flavours, we have a Middle Eastern touch to it.”