Podcast: Royalmount in Montreal Announces 1st Luxury Tenants
Craig and Lee discuss recent tenant announcements to Montreal’s Royalmount development opening in 2024, and what impact it could have on downtown Montreal.
Recent tenant announcements include flagships for Louis Vuitton and Gucci as well as Tiffany & Co., Sandro, Maje, and a large RH (Restoration Hardware) store.
The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out ourThe Interview Seriespodcast where Craig interviews guests from across the Canadian retail landscape as part of theThe Retail Insider Podcast Network.
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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/
New research from Google Canada indicates digital is here to stay and is now the gateway to all commerce.
“As a result of the pandemic, Canadian retail has changed forever, but the rise in ecommerce has been durable and permanent. While we expect to see a return to in-store shopping this holiday season, shoppers will use digital to inform, inspire and enable their purchases. 86 per cent of shoppers discover brands/products while browsing online and 89 per cent of holiday shoppers searched online first before a store visit,” said Google Canada.
Swathi Sadagopan
Swathi Sadagopan, Strategic Insights Lead, for Google Canada Retail, said Canadians are increasingly using digital in their shopping experience not only for buying items but also for researching items prior to visiting stores.
“With so much having changed over the past few years, we’re seeing a few key trends take shape this holiday season. For one, given the current state of the economy, many holiday shoppers are concerned about the rising cost of items they need or want to buy. This holiday season we will see more price conscious consumers looking for two key value indicators: cost and convenience. So, don’t presume pessimism. Instead, work on positioning your value clearly to Canadians,” said Sadagopan.
“Unsurprisingly, digital is driving the shopping experience both online and in-store and is now the gateway to all commerce, with shoppers going online to inform, inspire and enable their purchases. We will also see a return to in-store holiday shopping, but that shoppers will want those visits to be purposeful and efficient – combining this with a more omnichannel experience.
As a result of the pandemic, Canadian retail has changed forever and the rise in ecommerce has been durable and permanent and its momentum has continued, she said.
“There’s no doubt that Canadian holiday shoppers are looking forward to a ‘normal’ holiday season, but economic uncertainty has given rise to a more price conscious consumer. Canadian holiday shoppers will be more conscious about their spending this season,” said Sadagopan. “In fact, 72 per cent of Canadian holiday shoppers say they are concerned about the rising cost of items they need or want to buy and 60 per cent of holiday shoppers say they plan to buy less because of the impact of inflation on their finances. This holiday season we will see more price conscious consumers with more shoppers deal seeking, brand switching and researching before they buy.
“With digital here to stay, retailers should keep the customer experience top of mind to win the holidays. With shoppers researching online for both store availability and price before making a purchase, the importance of retailers maintaining a strong digital presence will be integral to meeting demands of shoppers.”
Rexall.ca (Image: Dustin Fuhs)
The research also found:
Holiday shoppers are being strategic, making fewer impulsive purchases: One in four holiday shoppers say they are shopping for things now that they don’t need until later because they’re worried items will go out of stock while nearly half of Canadian holiday shoppers say they’re taking inventory of what they have to determine what they need;
Convenience is key to winning over holiday shoppers: While we anticipate a return to in-store shopping, shoppers will use digital to make those trips purposeful and efficient. Shoppers will research online for both store availability and price before making a purchase. More than half (54 per cent) of holiday shoppers said they will confirm an item is in stock before going to buy it. Searches for curbside pickup aren’t slowing down either, with search interest for ‘curbside pickup near me’ increasing 250 per cent year-over-year; and
Online video plays an increasingly important role in the shopping journey: 70 per cent of consumers say they bought a brand because they saw it on YouTube with over two in three (67 per cent) holiday shoppers having watched a video on YouTube before a store visit;
60 per cent of holiday shoppers say they plan to buy less because of the impact of inflation on their finances;
Search interest for price sensitive terms have increased this year, with ‘discount code’ increasing 2x and ‘price match’ up 7x;
The top behaviours holiday shoppers say they’ll do more this season includes deal seeking and researching;
85 per cent of Canadian holiday shoppers say they will shop at stores with discounts;
73 per cent said they will shop with stores that offer free shipping;
41 per cent of holiday shoppers said they are comparing prices and price matching;
One in four holiday shoppers say they are shopping for things now that they don’t need until later because they’re worried items will go out of stock;
Nearly half of Canadian holiday shoppers say they’re taking inventory of what they have to determine what they need;
32 per cent say they keep an eye out for new brands even if they’re not planning to buy right then;
Nearly one in four surveyed Canadian holiday shoppers had said they had already begun their holiday shopping by mid-September.
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.
Retail giant Lowe’s Companies, Inc., based in the United States, is selling its Canadian retail business to Sycamore Partners, a private equity firm specializing in retail, consumer and distribution-related investments, for $400 million in cash, and performance-based deferred consideration. As well, all Lowe’s stores will eventually be rebranded as RONA according to the retailer in a statement Friday morning.
The company announced Thursday that its Canadian retail business based in Boucherville, Quebec, operates or services approximately 450 corporate and independent affiliate dealer stores in a number of complementary formats under different banners, which include, Lowe’s, RONA, Réno-Dépôt and Dick’s Lumber.
MARVIN R. ELLISON
“The sale of our Canadian retail business is an important step toward simplifying the Lowe’s business model. While this business represents approximately seven per cent of our full year 2022 sales outlook, it also represents approximately 60 basis points of dilution on our full year 2022 operating margin outlook,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.
“We remain confident in our short and long-term outlook for the U.S. business, underscored by improved sales trends and strong profit flow-through in the third quarter, as well as our expectations for solid business performance for the remainder of 2022. By executing this transaction, we will intensify our focus on enhancing our operating margin and ROIC, taking market share in the U.S. and creating greater shareholder value. I want to thank our entire Canadian team for their hard work and dedication to our customers. We look forward to working with Sycamore Partners in executing a seamless transition.”
Image: Lowe’s Canada
Stefan Kaluzny
The transaction is expected to close in early 2023, subject to customary closing conditions and regulatory approvals. In connection with the preparation of the company’s financial statements for the third quarter of 2022, the company expects to record a pre-tax non-cash impairment charge of approximately $2 billion related to its Canadian retail business, it said.
“We are honored to partner with Lowe’s to establish Lowe’s Canada and RONA as a standalone company headquartered in Boucherville, Quebec,” said Stefan Kaluzny, Managing Director of Sycamore Partners. “We look forward to working with the company’s management team to build on its 83-year history as a leading Canadian home improvement business serving families, builders, and contractors in their communities across the country.”
Tony Cioffi
“We are excited to work with Sycamore Partners on this next chapter of growth for our business.” said Tony Cioffi, president of Lowe’s Canada. “Together, we will remain committed to supporting our associates, our Canadian- and Quebec-based vendors and our dealer network.”
Image: Rona
Lowe’s issued further statements on Friday morning, including that it will “eventually move away from the Lowe’s banner in Canada in favour of the RONA banner in a manner that ensures the least possible disruption to our business.”
“We have put in place appropriate measures to ensure a seamless transition to new ownership, with minimal disruption for our 26,000 associates. It will remain business as usual, including unchanged compensation and benefits.”
“In recent years, we have put in place a strong leadership team, invested strategically, and simplified our business, which puts us in a great position for the future.”
“Under Sycamore ownership, we will maintain a strong commitment to our Canadian- and Quebec-based vendors, including through our ongoing involvement in the ‘Well Made Here’ initiative, meant to encourage the purchase of domestically manufactured quality products.”
Retail expert George Minakakis described the Canadian division as a business deal gone sour for Lowe’s.
George Minakakis
“They paid $2.4 billion in 2016. The brand operations in Canada were sold for $400 Million to Sycamore Partners, with a $2 billion impairment charge incurred by Lowes. In other words this deal failed to consummate the Lowe’s Brand with Rona in a way that they could lead in Canada,” said Minakakis, who leads advisory firm Inception Retail Group and is author of The New Bricks & Mortar, Future Proofing Retail. “Now Sycamore Partners has the task ahead of them to restructure the operations, finances, business, and consumer model that will allow this brand to appeal to more Canadians. However can they? The short term outlook calls for a recession, that means a lot less consumer spending.
“However, the exit of a US parent from Canada is telling! That will also lead to changed internal culture. I expect new leadership, and strategies to ensure this brand stays profitable. The acquisition price may allow for that but what we don’t know is how much it will cost to build a stronger brand. Supply chains will be key as will their deployment of human capital that becomes a competitive advantage. I just hope that they are able to tap a Canadian with a background in dealing with different cultures. The number one mistake American firms make is believing that our mutual English language allows for US leadership to be easily transported crossborder. That’s a retail fallacy.
“That’s the same fallacy that hurt Target in Canada. The retrenchment from Canada also makes you wonder about the US economic challenges.”
Exterior of Lowe’s Canada store. Photo: Lowe’s
Liza Amlani
Liza Amlani, Principal/Founder, Retail Strategy Group, and Co-Founder, The Merchant Life, said she’s not sure what exactly “Lowe’s is simplifying by this sale” but she does think the company needs a lot more than new ownership to be profitable.
“The challenge with Lowe’s/RONA is that Home Depot has private label brand power and an exceptional customer experience. Taking market share from HD will always be a challenge. Lowe’s needs to get their inventory under control and focus on the customer. Shift merchandising strategies to leverage consumer insights and build trust with the shopper. I’ve shopped at both RONA and Lowe’s – the stores had low footfall, prices were not competitive, the assortment was flat and there wasn’t a brand ambassador in sight. And that’s just my experience,” she said.
“A sale could help the brand refocus the merchandising strategy but it truly comes down to what does the consumer want. Selling to a NY based firm could be the opportunity that Lowe’s needs to reinvent itself to a Canadian home and DIY destination. I hope that’s the case as I’d hate to see more stores close on account of archaic retail practices.”
Lowe’s Canada will open a new distribution centre in the Greater Calgary Area. The new 1,230,000-square-foot facility is expected to open in the fall of 2021 and will represent a joint investment of more than $120 million. (CNW Group/Lowe’s Canada)
“RONA was just too different a company compared to Lowe’s. Sycamore will have its work cut out for it as the profitability of the Canadian division has been an obvious issue. Look for major staff cuts and overhead reduction as they lower their break-even point. Big nasty write down for Lowe’s too to clean up the mess,” said the President of Bruce Winder Retail.
Doug Stephens, Founder of Retail Prophet, said the sale of Lowe’s Canadian division was somewhat inevitable.
Doug Stephens
“Lowe’s wasn’t really addressing key market and consumer needs. Customer experience is essentially status quo relative to competitors, compounded by the fact that Lowe’s also hasn’t locked in the trade customer to the degree that competitors like Home Depot have. And with the renovation market shifting heavily from Do-It-Yourself to Do-It-For-Me, it’s essential, especially if acquiring younger customers is the goal,” he said.
“So, Lowe’s seemingly found itself sandwiched between smaller, more local competitors like Home Hardware on one side and Home Depot on the other. And absent any defined incentive for consumers – be it a remarkably better buying experience, higher service levels, more convenience or better product assortments – they really had little to offer the Canadian market.”
Michael Kehoe
Michael Kehoe, Broker of Record with Fairfield Commercial Real Estate, said the Sycamore Partners acquisition of Lowe’s Companies Inc. Canadian retail business is a significant event on the Canadian retail scene.
“RONA and Réno-Dépôt are legacy Canadian brands going back 83 years in a retail category now dominated by a few key players. The Sycamore track record in retail, consumer and distribution-related companies will provide stability and continuity for the Canadian and Quebec-based associates, vendors and their extensive dealer network. This is good news for Canadian consumers and contractors in these uncertain and challenging economic times,” he said.
Bulgari Yorkdale (Photo Credit: Jenna Marie Wakani)
LVMH-owned Italian luxury jewellery brand Bulgari has renovated and expanded its flagship location at Toronto’s Yorkdale Shopping Centre. The retail space has doubled in size and the store is now one of the only locations globally to carry Bulgari’s high jewellery collection.
The renovation of the Yorkdale store took about five months, expanding the retail space from about 1,500 square feet to approximately 3,000 square feet. Architect Peter Marino conceptualized the space which now has two private salons.
The main entrance to the Roman-inspired store is made of Black Grand Antique marble, and the interior includes white Tarvertino Navona marble walls that are finished in white and gold hand-applied Scagliola plaster. The middle of the store features the recognizable Bulgari Condotti eight-point star in red porphyry, which dates back to the first Bulgari shop opened by Sotirio Bulgari in Rome in 1884. Condotti windows within the store reference the original windows still present in Bulgari’s historic flagship on Via Condotti in Rome, and there are two Murano crystal chandeliers made by Italian artisan Vistosi that illuminate the interior.
Photo Credit: Jenna Marie Wakani
Three Andy Warhol silk-screen prints in the store were issued specifically for Bulgari by the Warhol Foundation. Andy Warhol was known for being a longstanding fan of Bulgari, so much so that he had called the New York boutique “the most important museum of contemporary art.”
“I am thrilled to celebrate the re-opening of our flagship boutique in Toronto. The store’s newly imagined concept seamlessly blends the luxurious materials and iconic Italian designs that reflect Bulgari’s heritage, with a contemporary, best-in-class client experience. I look forward to welcoming our clients back inside to discover our iconic creations within this new expression of Roman art & design,” said Joshua Gaynor, Managing Director of Bulgari Canada.
Photo Credit: Jenna Marie WakaniPhoto Credit: Jenna Marie Wakani
The expanded Bulgari flagship carries an expansive range of jewellery as well as watches, eyewear and fragrances. Handbags and leather goods also sell very well in the Yorkdale store according to a Bulgari representative, with the store now carrying a more extensive selection than what one may find in other Bulgari locations.
The Yorkdale flagship is said to be one of Bulgari’s top-selling in North America, prompting the brand to add its high jewellery collection as part of the store expansion. Prices for Bulgari’s high jewellery line can be into the six and even seven figures with designs featuring precious metals and stones. Other Bulgari stores in North America carrying high jewellery include 5th Avenue in New York City, Beverly Hills, San Francisco and Costa Mesa California (South Coast Plaza).
In Canada, Bulgari also operates concessions at Holt Renfrew in Toronto at 50 Bloor Street West and at Holt Renfrew in Vancouver at CF Pacific Centre. Travel retailer Dufry operates Bulgari boutiques in Vancouver International Airport as well as in Toronto’s Pearson Airport in Terminals 1 and 3. Multi-brand retailers in Canada carrying Bulgari include Chateau d’Ivoire in Montreal, Bandiera Jewellers in Toronto, and Montecristo Jewellers at Metropolis at Metrotown in Burnaby BC.
Video advertisement featured at the beginning of TIFF films this year
Attendees of the Toronto International Film Festival (TIFF) would have seen Bulgari’s recent marketing — the luxury brand advertised heavily during the event and was a presenting sponsor of some awards. Splendid looking high jewellery pieces from Bulgari were part of advertising that included billboards and videos at the beginning of TIFF films. The TIFF partnership spans an initial three-year term which means Bulgari will be part of the festival in 2023 and 2024.
Bulgari was founded in Greece in 1884 and is now headquartered in Rome. LVMH acquired Bulgari in 2011 as part of a strategic alliance. Bulgari operates a network of standalone stores, concessions, and wholesale accounts in major markets globally. Marriott operates Bulgari Hotels and Resorts which has seven locations globally with more to come, and there are Bulgari-branded restaurants in Tokyo and Osaka.
Yorkdale has become one of North America’s top shopping centres in terms of both sales per square foot as well as the number of luxury brands carried within. Yorkdale now boasts the highest density of luxury brands anywhere in Canada and more are said to be on the way into 2023.
Aaron Spivak and Lior Ohayon, Co-Founders, Hush Blankets at Yorkdale Pop-up (Image: Hush)
When Aaron Spivak and Lior Ohayon started Hush back in 2018 with a desire to create a product that would help people sleep, there’s no way to predict the success that would follow in the four years, culminating with the first-ever pop-up at Toronto’s Yorkdale Shopping Centre.
The ice-themed store opened on November 2 and features an experiential sensory Hush Room for visitors to immerse themselves and their senses and feel the cooling, calming and comforting sensation of Hush’s wide range of sleep products from its popular ‘Iced’ line.
“Yorkdale is one of the busiest and most loved malls in Toronto, so that’s the number one reason why we started here,” said Aaron Spivak, co-founder of Hush, in an interview from the opening day of Hush Yorkdale Pop-up. “We’re from Toronto, so I used to come here during the Rainforest Cafe days. We have a family of four brothers and my parents used to let us run free here every Saturday, so it’s nostalgic to be here.”
“It’s a big deal for us personally, for our brand and when you walk this mall – there’s not too many Canadian brands. Let alone their first ever store in the mall. We quickly realized that this isn’t just a first for us, but a first for Yorkdale to have a Canadian brand that’s only four years old. We started this on Yonge Street in Lior’s bedroom, literally four years ago and we never would have imagined that this would have been possible. So when this opportunity came about, it was like we had to take it. And during the two busiest months of the year for us, if there was ever a time to do it – this was it.”
Hush Yorkdale Pop-up (Image: Hush)Image: Yorkdale Map for Hush Pop-up
The Hush pop-up at Yorkdale is located in a 2,970 SF storefront in the North East wing of the mall, in between Lauderach and Offline by Aerie. Location-wise, the brand will be able to get full-day walk-through traffic with Hudson’s Bay and Cheesecake Factory nearby.
“Most people don’t know that we have almost 400,000 customers that we’ve been able to build over the last four years and never has anyone been able to try our product and touch it until, literally today, this is the first opportunity.” said Lior Ohayon, Co-Founder of Hush.
“We’re primarily a DTC brand but the amount of people who said “can I just try a mattress or can I just sleep with a blanket, I know I can return it” but people don’t want to return things anymore. They want to just touch for a moment.
“We were thinking if we were ever going to do something like this, we’d want it to be experiential. We want it to be about trying the product. What we’ll see here today is a full experience. Everything is about having a moment with our product, whether it’s a touch or a three-minute activation in the Hush Room.”
In-store is a different marketing strategy than a D2C website ecommerce platform, which means that the brand has designed a solution.
“First thing is that the store acts like a giant billboard, and we’re making sure to provide experiences in-store to capture information. We’ll be using technology, like ipads.
“Similar to online, when you check something out and you leave, we can retarget or send an email. We’ve recreated that for in-store, so we’ll have a ton of staff and unlike any other mattress store, it’s not very sales-y. There’s not a lot of pressure to buy. It’s entirely comfortable.
“This is an experience. You might come in and you may be interested in something. You may not want to buy it right now, but we’re set up to build something for the customer that will be set up and we’ll just send it through via email. You can take your time and it’ll go through the typical D2C flow and it’ll feel way more natural. And if they want to buy it from their phone, they can and we’ll ship it.
“You might want to buy a blanket, mattress and a pillow, but you may want to take the pillow with you and we can ship the rest through our regular D2C channels. We’ve actually integrated both and the customer can choose how they want to interact. There’s no separation, where the people in-store are motivated by traditional ‘convert right now’ or send you home – it’s all seamless and you can choose how to experience Hush.”
Co-Founders Behind the Scenes Tour of Hush Yorkdale Pop-up (Image: Dustin Fuhs)Hush Yorkdale Pop-up (Image: Dustin Fuhs)
“This is the first time that we’ve had all our products in one location, so no one has ever seen that.
“We’re launching two new products that no one has ever seen before. The first is the weighted knit blanket, a super aesthetic version of our current throw that people love. And the second product is a mattress. We launched our first mattress last fall, and we decided that we needed a variation in the market. This one is more affordable and accessible.
“We were able to keep everything that’s true to ‘Hush’ throughout the process. It’s still cold, still has hybrid technology and we actually created two proprietary components to the mattress that haven’t been seen in any bed yet. We’ve been working on this for more than a year, and typically when we launch a mattress, it’s only online. Now it’s in the store when people can come in and try it.”
Hush Yorkdale Pop-up (Image: Hush)
The concept of the store will bring customers into an experiential retail format that is highly engaging and will bring the comforts of home into Yorkdale.
“The pop-up is ice-themed. We put out our best ice products. It’s what made our business. Took our business to the next level when we had a slow summer a few years ago. We asked our customer ‘why aren’t you buying our blanket?’ and it turned out that it was too hot. It was our original, the classic. Very warm in the summer, so we did a kickstarter and came out with the new fabric, the 2.0.
“So the whole store design is to come and try the ice, because people online are like ‘what does it feel like? You can show us a great photo of the blanket’ but this is the first time that they can come in and actually try it in person.”
The company launched a successful Kickstarter campaign in their first year that raised $1.5M+ in 30 days – making it the Top 10 most raised Canadian campaign ever.
In 2019, Hush also appeared on Canadian hit TV show Dragons’ Den and earned “Most Epic Pitch” of the season securing a bidding war between all six dragons. Spivak and Ohayon decided to accept the offer from Dragons Jim Treliving and Lane Merrifield, which was $400k for 10%.
After their time on the show, the brand expanded its product line to include mattresses and sleep accessories, furthering their mission of helping Canadians achieve a better night’s rest.
Hush Yorkdale Pop-up (Image: Hush)
In 2021, Sleep Country acquired a 52% stake in Hush Blankets, which allowed the brand to expand into its next phase of growth and expand the Sleep Country’s sleep ecosystem.
Phil Besner
“Hush is a powerful brand. This store is a physical manifestation in which their community can visit them, and interact with their product in a live brick and mortar environment,” shared Phil Besner, Senior Vice President of Business Development at Sleep Country Canada.
“This opportunity (bricks and mortar) will continue their customer acquisition strategy all the while engaging and delighting their loyal customer base with new and innovative product launches.
“It’s been a great partnership. For us, it was about acquiring a slightly younger demographic than Sleep Country typically sells to. And I think for Hush, by partnering with us, they got some back end support from our team. We’ve got involved with their purchasing, finance, HR, and also introduced them to some of our longstanding relationships with vendors and suppliers. We’ve stayed out of their way from a marketing perspective and let them work their magic.”
Hush Yorkdale Pop-up (Image: Dustin Fuhs)
With the prevalence of D2C brands opening in brick & mortar locations across the Canadian retail landscape, it was asked of the Co-Founders if we would see more of this from the brand.
“It’s kinda like a trial,” Spivak shared. “Our motto has been ‘betting the farm since day one’. Since literally the first day, we’ve been sold out, innovated and created. When we launched our kickstarter in 2019, we literally put every single dollar we had into the business into creating this fabric. No proof that anyone would even buy it and it did incredible. And we did it again when we launched 2.0 and again when we expanded into our own warehouse. So this kinda feels just like that. When we were walking in, Lior said “how many more moments like this are we going to have? It seems like every year we keep creating more. It’s so stressful, there’s anxiety in it….”
“The answer is Yes,” added Ohayon.
“When it goes the way we planned, we’ve been very fortunate that when we bet the farm, it works out. We’d love to see more of these. This is just the concept. When we prove the concept, which we will, then we’ll hopefully expand. We like the malls too, as we hear people walking by and talking about the brand. It’s more of a recollection for them versus a destination standalone store where you’ll have to drive out to it.
“When it rains or snows, you don’t want to walk the street. But you can park in the mall, especially at Yorkdale, where they have underground parking and it’s nice.
About 90 per cent of businesses in North America go to a bank branch multiple times a week to deposit cash. This is happening at a time when banks are either reducing staff and branch hours or closing, costing businesses time and money. A company says that it has a solution.
Clip Money (“Clip”) has become the cash solution of the future as more and more retailers and retail property owners see the benefits of the first-to-market cash deposit system that brings convenient, cost-effective financial services to business customers.
Clip Money sets up networks of ClipDrops, which are free-standing, secure, self-service boxes located in malls and at large retailers, where business customers can quickly and safely deposit cash revenue.
The company offers retail tenants the opportunity to save time and money with its technology-driven banking solutions. Clip Money already has partnerships with several retail property owners in North America. In 2022 alone, Clip announced strategic collaborations with Staples US Retail (“Staples”), Brookfield Properties, BentallGreenOak (BGO), Simon® (NYSE:SPG) with additional announcements pending.
Image: Clip Money
“Cash deposits don’t have to be expensive and inconvenient for small and mid-sized businesses. At Clip, we’re lowering costs, expanding access, and simplifying banking for retail clients all across Canada,” said Joseph Arrage, Clip founder and CEO.
“You can do this in a self-service method anytime you want to. We support all banks. It makes it convenient. The value proposition for the businesses is really strong. Customers are reporting saving $300 to $600 a month, and in some cases up to 20 hours a month, which is really significant.”
ClipDrop is the fastest way to deposit cash to any business bank account and located right where a retailer is operating – an easy way to save time and money.
Image: Clip Money
Here’s why retailers are using Clip:
Save time: Businesses can deposit cash right on site;
Save money: Pay per deposit only. No fixed contracts or hidden fees;
Improve cash flow: Next business day credit;
Safer drops: Deposit onsite anytime during extended mall hours;
Simple Sign Up: Download Clip, register, start anytime; and
Track Transactions: Deposit notifications, reconciliation reporting and rights management control
“Clip Money provides an incredible product in an industry where technology is lagging and cash couriers are unreliable. We’ve actually saved money switching. It is the cash solution of the future,” said Austin Harrison, Owner, Chick-Fil-A Yorkdale.
Image: Clip Money
The company was founded in 2018 but Arrage said it really got busy in 2019. The Canadian company is traded on the Toronto Venture Exchange under the stock symbol CLIP.
Arrage has been a leader in the Canadian Payments industry for 20 years. Prior to co-founding Clip Money, he was SVP of Cardtronics (Canada), the largest non-bank ATM operator of integrated ATM and financial kiosk products, where he led all commercial functions for the company’s $180 million Canadian business.
The idea for Clip Money was born as Arrage noticed a problem with how businesses were making bank deposits.
“Business owners are facing an unnecessary obstacle,” said Arrage. “What’s amazing to me is our largest market, which is the US, 29 per cent of all in-person payments are made in cash. It’s roughly the same size as the debit market. And of all that money that needs to be deposited, people need to go to their banking branch, which is rarely inside the mall, to do it. It’s a massive, massive problem, as well as a massive opportunity for a company like us to be first-to-market to make an impactful change. I built this to help businesses. Everything that we’re doing and the way we do it is with the business customer in mind. We feel we’re in a really good position to help businesses save a lot of time.”
Image: Clip Money
Clip Money is located in shopping centres across North America and select Staples stores in the U.S. and it is actively working on other growth opportunities and different locations that will help service other parts of the economy, providing it with even more access points across Canada and the US.
The Clip solution is bank-agnostic, so businesses can make their everyday deposits to existing bank accounts in more convenient, accessible locations via a ClipDrop. Deposits can be made any time during extended retail hours by designated business employees. Clip customers are provided with powerful technology through the ClipApp to manage their cash, assign employees to perform banking transactions, track transaction history, collect analytics, and manage personnel.
Customers also receive next business day credit for their deposits which improves cash flow. Existing customers have reported saving hundreds of dollars per month per store in staff costs related to the time it takes to travel and deposit at a bank, a savings which retailers say is welcomed given current staffing and resource challenges that they are facing.
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.
Fashion brand Esprit will again be reportedly opening stores in Canada after shutting all stores in North America about a decade ago. A report this week in WWD [paywalled] says that the company has a new CEO and has opened a pop-up in Los Angeles ahead of a store expansion that will include Canada.
CEO William Pak, who has been leading Esprit since March of this year, told WWD that Esprit would look to open a store in Vancouver as well as possibly as many as two in Toronto. No further details were given in terms of locations.
Esprit shut its 93 stores in North America in 2012 after losing money, instead focusing on Asia and Europe for its business. And in 2016, a partnership with Montreal-based Freemark Apparel Brands saw an Esprit store open at West Edmonton Mall in Edmonton — there had been plans to grow the business but it didn’t end up happening.
A North American expansion is ramping up with a colourful pop-up store in Los Angeles. Esprit’s clothing styles displayed include items inspired by a collection of images from over the years from the company’s archives. Esprit was founded in California in 1968, and retails clothing for men, women and children.
Image from the fall/winter Esprit campaign. Photo: Esprit
Esprit has 167 stores in Europe, with 61 of those in Germany. In 2020 the brand shut its stores in Asia and is now returning by opening several pop-ups. Esprit moved its headquarters to Hong Kong last year from Germany, though much of the decision making is still made in Germany.
The brand had been one of the most recognizable in the world, seeing sales of over $100 million in the late 1970s. Esprit struggled in recent years and lost over a billion dollars over five years before becoming profitable last year. North Point Talent Ltd., Esprit’s largest shareholder, is looking to turn the company around with CEO William Pak, who is a lawyer from Canada and who worked in private equity before joining Esprit.
Esprit will compete with various casual fashion retailers in Canada, though some such as The Gap have been closing stores. Growing market share will be a bit of an uphill battle for Esprit at least initially, though it has brand awareness in Canada given its presence here a decade ago. Younger consumers may have been acquainted or reacquainted with the brand given the gap in time in terms of having a presence here.
We’ll follow up on this story when we learn more about the Canadian expansion.
Plantsie at Southcentre Mall (Image: Jeff Bradshaw)
Calgary-based Plantsie is launching its new retail concept, bringing plants with personality to shoppers at the Southcentre Mall in the city.
The pandemic start-up, with the idea of inviting customers to embrace the individual personas of their plants, began in May 2021 by local entrepreneurs Jeff Bradshaw and Jaime Starchuk, who also operate V Strategies, a video production company Bradshaw started about 25 years ago.
Jeff Bradshaw
“When we first had the idea for Plantsie, we were looking for a way to bring a little joy into daily life, and we thought, what better way to do that than with a cheerful little plant with a big personality,” said Bradshaw.
“Each of our plants has its own name and persona, and customers can even create their own custom plant personality by choosing a plant, a pot and a name for their new green friend. We’ve heard it said that pets are the new kids, but we like to think that plants are the new pets. Something that will bring a smile to your face, but is also easy to care for.
“We want to get established and work the kinks out at Southcentre but then for us we’re hoping we have great success and definitely plan to open in different locations in different markets. Our goal with the business is to move right across the country over the next couple of years and really grow and be aggressive with it.”
Plantsie at Southcentre Mall (Image: Jeff Bradshaw)
The first brick and mortar storefront opens November 1 on the second level of the shopping centre.
Jaime Starchuk
“When COVID hit, like many businesses the video side kind of slowed down a bit. Jaime Starchuk who has been my VP of Operations on the V side for the past 18 years was getting into plants. She was looking for her pots but they weren’ really modern looking pots. So we were actually on a hike on Sulphur Mountain one day and she goes ‘we should start selling pots’. We started chatting and thought you can’t really just sell pots,” said Bradshaw.
“And we started thinking about Build A Bear and the old pet rock. And that’s how we kind of came up with the concept for Plantsie . . . Giving plants a name and a personality we just thought would be a unique approach to house plants.”
People can buy plants either in-store at the upcoming new storefront at Southcentre Mall or on the company’s website.
Plantsie at Southcentre Mall (Image: Jeff Bradshaw)
The brand believes houseplants are more than just décor. They are living things that can enhance everyday life in countless ways, including bolstering mental wellbeing, improving performance and focus while working, boosting creativity, and absorbing airborne toxins, to name a few.
Plantsie offers a variety of easy to care for plants with the perfect personality for any of life’s moments or milestones. Plants are also fully customizable, from the name all the way down to the pot.
There are about 30 different personality cards people can pick.
With a wide variety of low maintenance ‘starter’ plants, like the ‘Good Vibes’ Ponytail Palm, the ‘Feel Better’ Peace Lily, and the ‘McDreamy’ Dracaena Janet Craig, Plantsie aims to make taking home a new plant simple and stress-free. Each potted Plantsie also comes with its own laser-cut name stick, personality card, and care instructions.
New ideas for seasonal Plantsie personalities include ‘Frosty’, ‘Cindy Lou’ ‘The Grinch’ and ‘Buddy the Elf’.
Plantsie at Southcentre Mall (Image: Jeff Bradshaw)
Plantsie at Southcentre Mall (Image: Jeff Bradshaw)
“We wanted to make owning plants accessible to everyone by inventing a fun way to make them part of the family. All of our plants are easy to maintain and we hope that they open the door for people to get excited about having a little more green in their lives,” said Bradshaw.
He said the company has had great success online.
“But because it’s a new concept, we’re super excited about Southcentre because we’re going to be able to interact with more people face to face. And we think people are really going to get excited about this. There’s nothing like this anywhere that we’ve found – anywhere in the world we’ve not seen anybody doing what we’re doing with the plant. It’s a real unique concept,” said Bradshaw.
Alexandra Velosa
“We don’t have a big store. It’s a pretty small little store. But it’s going to be jam-packed and we think it’s going to create a lot of excitement for customers but also for us to give us that additional exposure to the marketplace.”
“We are delighted to welcome Plantsie to the Southcentre family,” said Alexandra Velosa, Marketing Manager, Southcentre Mall. “Plants offer so many wonderful benefits, from brightening up a home to improving mental health, and we know that Plantsie will be bringing something new and exciting for shoppers to enjoy. With the holidays on the horizon, Plantsie will put a fun new twist on gift giving for those looking to shake up their Christmas lists.”
