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Uncle Tetsu Japanese Cheesecake Opens Replacement Flagship in Toronto, Plans National Store Expansion [Photos/Interview]

Uncle Tetsu at the Atrium (Image: Dustin Fuhs)

Uncle Tetsu, a worldwide Japanese cheesecake retailer and manufacturer, has recently opened its new flagship store in Toronto, closing its previous location which was the first location in North America on Bay Street near the corner of Dundas Street.

Its new flagship store, located at the Atrium complex on Bay Street and across the street from Uncle Tetsu’s previous location, is just under 3,000 square feet and has an open concept factory where it will be serving around 400 customers a day. 

Uncle Tetsu’s relocated to the new location from the original store, which was next to the historical Greyhound Bus Terminal. As Uncle Tetsu was already famous for its long line-ups, the retailer decided it was best to stick to the same area and move across the street.

“People were familiar with our previous location at Bay and Dundas as it was the first store in North America, where we also were famous for our long line-ups which we still are, so we decided to move across the street,” says Luca Settembrini the Director of Uncle Tetsu. 

Uncle Tetsu at the Atrium (Image: Dustin Fuhs)

Originally started by Tetsushi Mizokami in 1989, the business was officially registered in 1990. Tetsushi Mizokami started the business in Japan, expanded into Asia, and then expanded to North America where its first store was the one they just moved from, Bay and Dundas. Now, Uncle Tetsu has 14 stores in Canada and over 70 stores worldwide and is continuing to expand. 

Luca Settembrini

At its new flagship store, customers can expect to walk into a bright and fun environment and leave with a light and fluffy cheesecake. As Uncle Tetsu has only two head offices, one in Japan and the other in Toronto, making this new location a great flagship store serving as an example of what customers should expect from Uncle Tetsu stores in the future. 

“We wanted it to be kind of a whimsical feel where you go in there and you are very excited, and it is very colourful and bright which draws people in. It kind of goes with how the founder of Uncle Tetsu is, he is a very fun outgoing and excitable guy,” says Settembrini. 

Unlike many factories, Uncle Tetsu wanted an open concept kitchen, this way customers have full exposure to how it make the cheesecakes and its baking area as “they don’t want to hide anything from their customers,” says Settembrini. 

Products and New Arrivals Coming Soon

Currently, Uncle Tetsu’s products include Angel Hat Cheesecake, Original Cheesecake, Cheese tarts, and Madeleines. You can get any of these products in chocolate, matcha, or original; however, some cheesecake flavours are only available on certain days. 

“Our most popular flavour is the original cheesecake and is available every day. Matcha is only available on Mondays and we call it matcha Mondays, and chocolate is only available on Thursdays and we call it chocolate Thursdays and eventually there will be other flavours and products that will be only released on certain days. Creating that fun experience where you can come back on different days and try different products that are not always there normally,” says Settembrini. 

The new location will also introduce new flavours and products, which is one of the reasons why the store is so big. As the company has only finalized one new flavour, the rest will be announced when the recipes are ready to share. 

“This store will kind of serve as an innovation hub and really give it space and opportunity to test new products and really expand the products that we have here in North America. There will be new flavours and products coming soon,” says Settembrini. 

One of the new flavours that launched on July 15th in Ontario and will in the rest of Canada on July 25th is the Yuzu Cheesecake. Customers are also encouraged to share their flavour ideas with staff. 

The Japanese Cheesecake 

Uncle Tetsu Dufferin Mall (Image: Dustin Fuhs)

Unlike the American cheesecake that is heavy and dense, Uncle Tetsu has created a recipe that is lighter and fluffier. Settembrini says it is great for people who are not on the sweet side, or for people who want to live a healthier lifestyle and still want a small treat. 

“For people who do have a stronger sweet tooth our second most popular item that has really taken off and is becoming a fan favourite in North America is our cheese tarts which are richer and creamier. They are smaller and in individual portions,” says Settembrini.

Uncle Tetsu has been very successful since opening its first store and is currently planning on more expansions. Unfortunately, the exact details of those expansion plans are going to be kept a secret as the retailer is trying to finalize leases; however, Settembrini said the team is looking to expand to the East and West coast of Canada. 

Uncle Tetsu in Montreal (Image: Dustin Fuhs)

As for the new flagship location in Toronto, customers should keep an eye out for new flavours and products that will be coming out soon, and the Yuzu Cheesecake that will be available on July 15th

“We just really hope customers come to see it and are excited by the new store. We are also open to suggestions about flavours and ideas, so if you are ever in the store feel free to let our staff know what types of flavours you would be interested in,” says Settembrini. “With this new capability and the new space, we are able to start testing and really creating some new and whimsical fun projects and flavours.” 

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The Battle for Grocery Delivery in Canada as Retailers Seek to Retain Customers: Expert Interviews

Grocery Delivery

With grocery delivery becoming a growing choice for Canadian consumers, will the changing landscape of the industry increasingly move from the use of third-party apps that use a grocery store as a way to get delivery fee commissions to in-house delivery concepts that are being constructed into physical stores?

Sylvain Charlebois, Director, Agri-Food Analytics Lab, Dalhousie University, said it all boils down to risk.

“Some companies are better set up than others and some are actually not as committed so they want to explore the space a little bit more. Amazon just acquired a piece of Grubhub. Those are signs that delivery is really a service you can’t deny anymore really, but how you do it will vary between different grocers,” said Charlebois.

Sylvain Charlebois
Sylvain Charlebois

“Some actually are putting a lot of money into building infrastructure. Voila (Safeway and Sobeys) is a perfect example of that while others are trying things out with a partnership like Loblaw for example with DoorDash. And the reason why some people do that is expectations are changing very rapidly.

“I mean, three years ago, getting your groceries delivered in eight days was a standard. Now it’s less than two hours and perhaps in a few years from now it could be in half an hour. And some markets are getting groceries delivered in 15 minutes. So you can see expectations are changing. Committing to infrastructure, committing to do a lot of work internally may be seen as too much of a commitment for now given that the marketplace is changing so quickly.”

Image: Instacart

Charlebois said there’s a lot of trial and error still going on in the industry but there’s still some consensus out there that grocery delivery is here to stay.

Is there a danger in becoming more efficient in the grocery delivery side of the operation thus taking away from the foot traffic in the store where people browse and end up buying more as they shop up and down the aisles?

“I think it’s less of an issue now. I think the big battleground is going to be loyalty. So it doesn’t matter how you get to the consumer, whether it’s online or in person, I think more and more grocers will be concerned about loyalty in general,” said Charlebois.

“I think that’s going to be the main focus for a while. If it means you need to get them more engaged online and keep them buying your products, so be it. I think that’s basically what’s going on right now.”

Charlebois said experts expect 10 per cent of all food sold retail to be sold online by 2027-2028 if not sooner.

“That’s a huge shift,” he added. “We believe today it’s anywhere between five to six per cent. Before COVID, it was actually less than two per cent. It’s changing really fast.”

Image: Tiggy App

Gary Newbury, a retail supply chain and last mile expert, and Rethink Retail’s Top 100 Retail Influencer in 2021 & 2022 | CITT’s Innovator Award 2020, said that during the pandemic, many discretionary category retailers found themselves in some difficulty with maintaining sales during lockdowns. Some finished overdue apps from their teams, some migrated quickly to platforms like Shopify and others found a relatively easy transition to apps like Instacart, DoorDash and UberEats.

“In the short term, the provider would turn up with a tried and tested application/portal. All that was needed was SKU details and the retailer was good to go. Instant e-commerce capabilities, often with two to four hour service,” he said. “The provider would send in ‘personal shoppers’ to pick, pack and ship consumer orders to porches. These providers manage the picking and delivery operations, collect a fistful of consumer data, and could expose consumers to competitor products through their portals.

Gary Newbury

“As we have emerged from the pandemic, consumers have, often drastically, changed their spending patterns and path to purchase arrangements. Recent Stats Canada’s figures suggest stores have returned to be their ‘go to’ position for instant gratification.

“Recognizing this, and learnings many retailers developed during the pandemic, including the impact on either their bottom line – for free deliveries – , or the consumers’ perception of ‘doing business with retailer X via a third party app’, some scaling back is inevitable and a major focus into developing their own apps for a more integrated consumer experience, along with development of last mile solutions to control the overall execution of the proposition.”

Online Women’s Outdoor Clothing Brand ‘Alder Apparel’ Opens 1st Physical Storefront on Toronto’s Queen St. West [Interview/Photos]

Alder Apparel Pop-up (Image: Dustin Fuhs)

Alder Apparel, a women’s outdoor apparel store, has opened its first pop-up store on Queen Street in Toronto. 

Starting in 2019, the owners Naomi Blackman and Mikayla Wujec decided to open Alder to express women’s outdoor clothing – a category they think has been under-served until now. The pop-up shop is located at 489 Queen Street West, and before this Alder was only serving customers online. 

“We have always had a love for retail environment and really thought that there was a huge opportunity to create an Alder environment in real life,” says Wujec. “For us the concept is just to bring the spirt of Alder and the playfulness of the brand into a retail space that will allow our customers to really live and experience the brand in real life.” 

Products customers can find can include rain jackets, open air pants, shorts, hiking clothing, waterproof shorts, get dirty dress, shirts, and skorts. You can also find accessories such as hats, water bottles, and more.  

“Outdoor brands today promote this narrative of hyper performance, endurance, and intensity. We really felt like that is not how most women experience the outdoors. Most women come to the outdoors as a place to relax or recharge so we really wanted to create an outdoor brand that would focus on divorcing performance and outdoor recreation, so a brand that just focused on building a sense of belonging with the outdoors that focused on fun and the joy of it, that is what we wanted to do with Alder,” says Wujec. 

The new store allows customers to experience Alder’s products in real life and will be open until the end of August. 

Alder’s Inspiration 

Wujec and Blackman have known each other since they were early teens. With different careers, the two came back together to create Alder. Wujec studied environmental science and worked for National Geographic and Blackman was working with some of the biggest fashion companies in Canada such as Joe Fresh and Hudson’s Bay. She was also a brand and digital specialist. 

“I had a big frustration with what was available for outdoor apparel for women. I just thought everything was ugly and not designed for women’s bodies and didn’t really fit in with the rest of my wardrobe, so I brought the frustration over to Naomi,” says Wujec. 

From there they started designing clothing that would be suitable for all women, and all sizes. Customers can find clothing from sizes XS to 6X, which is the most inclusive size range in North America, as it is important to Alder that their customers feel safe and comfortable.  

Alder also provides a variety of products so its customers will be able to find clothing for any outdoor activity from hiking to just taking it easy. 

“Our idea was really to create a wardrobe for every type of outdoor activity that you could possibly need,” says Wujec. “Our most popular product would be open air pants, which are made from beach tree. They are light weight, breathable, and stretchy. We are starting to get some other popular products as well like the get dirty skort which is a short and skirt blended in lots of fun bright colours.” 

To include customers in its product and colour choices, the brand gets its customers to fill out feedback surveys. From this, Alder can find out what its customers would like to see in store in terms of products and colours. To allow more communication from customers, Alder has launched a new program called Alder Crew where customers can provide deeper feedback, be more included with new products, to test products, and can be a committee for Alder. 

Sustainable Fabrics 

Alder Apparel Pop-up (Image: Alder)

“For us when we think about fabric, we are thinking about the sustainability, and we want to create a long-lasting durable product. The best thing you can do for the planet is to just wear your clothes more, so we have a real eye for durability,” says Wujec. 

All the fabrics you see in Alder are also the lowest carbon option they could find. The brand uses a mix of recycled products, recycled nylon, and it uses natural fiber fabrics which are beautiful and biodegradable. 

What is Next for Alder?

Alder has a lot of exciting new products coming soon. One of them, a cargo inspired pant, will be released in the upcoming Fall.  

“We have a ton of stuff coming down the pipeline next year and we are really excited about a bunch of new products and new categories that we will be entering in 2023,” says Blackman. 

One new category, which was inspired by feedback surveys, will be swimwear. This new collection will be launching in Spring 2023. 

On top of new products, Alder is entering REI in the States next month, is looking to join Brick and Mortar retail environment, and their hope “is to continue to open pop ups across in some of the top markets in North America and potentially a permanent location in the next few years,” says Blackman. 

“The main thing we really want to get across is that the outdoors is really for everybody, and we have met a lot of women who don’t feel comfortable calling themselves outdoorsy. We just wanted to remind people that you belong in the outdoors, even if you just go outside for a walk with your dogs or your friends. The outdoors shouldn’t have any criteria to access them, so we really encourage people to go outside and have fun and to just enjoy the outdoors at whatever pace is best for them,” says Blackman. 

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Video Interview: What Will A Seventh Pandemic Wave Mean For Canadian Small Business Owners?

Video Interview: What Will A Seventh Pandemic Wave Mean For Canadian Small Business Owners?

Corinne Pohlmann, Senior Vice-President, National Affairs and Partnerships, Canadian Federation of Independent Business, discusses the impact a seventh wave of the pandemic will have on Canadian small business owners.

Pohlmann talks about the current level of stress and anxiety in the industry, the possibility of lockdowns and restrictions, the optimism and confidence levels of owners, the impact of rising costs, the current labour shortage, the lack of government support programs and the recent Rogers network outage.

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 National Business Journalist with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.

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Self-Service Cashier-Less Convenience Grocery Retail Concept Aisle 24 Expanding Aggressively Across Canada in 2022 [Co-Founder Feature Interview]

Aisle 24 Corktown (Image: Dustin Fuhs)

Considering the recent accelerated digitization of the world around us, it isn’t difficult to understand why retailers everywhere are exploring and implementing an array of different technologies in efforts to enhance their digital offering. It’s investment that’s happening across all segments and verticals within the industry, resulting in a bit of a helter-skelter scramble to find and leverage the latest innovation. However, for those that were savvy enough to get ahead of the digital curve, circumstances over the course of the last couple of years have proven to be ideal for the advancement and growth of their businesses. In fact, according to John Douang, Co-Founder and CEO of Aisle 24 – the bourgeoning automated grocery market – the past 24 months have provided digitally-adept businesses with the opportunity to hone and refine their offering to customers even further.

“The shift in consumer behaviour that’s occurred over the course of the past couple of years is amazing,” he recognizes. “The rise in ecommerce adoption and sales has been dramatic. However, it’s not the only way in which behaviour has been impacted. The accelerated digitization of everything around us has made most people more accustomed to the use of digital tools and other technologies, introducing some to their use for the very first time. Now, it’s almost an expectation of consumers that there will be some sort of technology to interface with on their shopping journey, whether online or in-store, in order to make their experience easier, faster, more convenient and efficient. It puts pressure on retailers to explore and implement technologies that can meet those rising expectations. But, it’s also a circumstance that allows those that have already been experimenting with the capabilities of digital technology to experiment further and understand better how it can best support the customer experience.”

A technology-enabled experience

Aisle 24 Corktown (Image: Dustin Fuhs)

Founded in 2016, Aisle 24 is a fully self-service, automated, cashier-less grocery market meant to meet the convenience and time-starved lifestyle of today’s evolving consumer. Located primarily in residential communities, condos, apartments, and campuses in Ontario and Quebec, the Aisle 24 offering is truly unlike any other. Leveraging cutting edge technology, the grocer has been finding success by providing consumers with a fast and efficient experience that’s also safe and secure. And, with a focus on limiting friction for the end-user, the service is also easy to use. Consumers simply download the Aisle 24 mobile app and register an account to gain access right away. The Aisle 24 app enables members to unlock the door and start browsing. Then, once they’ve selected the items they want to buy, they simply scan them at an in-store kiosk and pay for their purchase using either their mobile wallet, debit or credit card. Although still in its infancy, it’s a concept that seems to be paving the way toward the future of the Canadian grocery experience. And, it’s one, admits Douang, that required a little bit of time to develop.

“Creating an inviting and pleasurable environment for people to shop in was extremely important to us,” says Douang. “However, it was equally important to make sure that the environment is safe and secure without compromising the integrity of the experience for the customer. It’s something that we had been working on for quite some time. And, of course, we leveraged some innovative technologies to help us achieve this. With an unmanned store, anything can happen, like spills and product breakage. To monitor for these types of occurrences, and others, our stores are equipped with cameras that are much smarter and more intuitive than standard security cameras. They’re powered by artificial intelligence that we’ve customized specifically for the Aisle 24 environment to ensure monitoring, safety and security. And, our customized system can alert our store operators of any concerns as they happen.”

The power of data

Douang goes on to explain that the store’s digital camera system also helps to generate invaluable analytics that empower and enable their franchisee store operators with the right tools and information necessary to run a successful location. It allows them a real-time view into transactional data and information concerning the days and times that customers shop with them, and more. It’s access to information that he says is critical in succeeding with this type of innovative retail concept. And, he adds that he and his team are constantly working to enhance the technological capabilities that support and benefit the Aisle 24 customer and operator experience to further differentiate their offering from competitors.

“Running an unmanned store presents both challenges and opportunities when it comes to successfully operating it,” he says. “Uncertainty and turbulence around labour issues, like shortages of talent that have arisen since the start of the pandemic, are avoided altogether. As a result, the cost of the labour is removed from this equation. However, without staff in the store, it presents challenges around customer engagement and ensuring that their needs are being met and surpassed. But, with the right technologies and focus, we’re actually able to hyper-personalize our offering to customers. Data analytics allow us to work with store operators to assess in real-time whether or not a particular product sku is working and understand the adjustments that need to be made in order to provide what customers want. In addition, we leverage our digital channels in order to elicit feedback from our customer-base in order to consistently tweak the product offering and experience that we provide for them.”

An evolving concept

Aisle 24 on Richmond Street in Downtown Toronto (Image: Dustin Fuhs)

It’s an experience, says Douang, that is inline with the evolving expectations of today’s Canadian consumer. And those expectations, he says, are elevating exponentially within an environment that continues to become increasingly technology-enabled. To meet them, the Aisle 24 team are always working on enhancements to its mobile app and in-store experience, providing things like personalized promotions and offers, creating what Douang refers to as a “meld between ecommerce and physical retail” whereby technology serves as the binding influence and middle layer. The focus and dedicated work that’s been put in by Douang and his team seems to have paid off to this point as they plan for major domestic expansion over the course of the next six months or so, becoming operational in British Columbia, Alberta, Ontario, Quebec and Nova Scotia by the end of the year. It’s growth that Douang’s obviously excited about. But, the real excitement and opportunity, he admits, is around a brand-new concept store that the brand will be launching soon.

“We’re working on a really exciting project right now that involves a concept store in Goose Bay, Labrador,” he says. “It’s going to be about two-and-a-half to three times the size of our average store at around four or five thousand square feet. And, what’s unique about this concept is that we’re going to be operating it as a hybrid model with hours during which the store is staffed and available to the public and hours when the store is only accessible to members. This allows us to sell age-restricted product, including alcohol, tobacco and lottery, and to address markets that are more rural, outside of the urban cores. It’s something that we’ve been trying to figure out for some time. And I believe that we’ve built an offering that will prove that these types of hybrid models can work for large format stores, allowing us to ultimately operate everywhere within the country, including more remote places that may not have the same kind of access to the conveniences and product as larger urban centres.”

Continued growth and expansion

It’s success and growth that have caught the attention of some of Aisle 24’s competitors as they watch on with curiosity at the evolution of this potentially revolutionary concept. In fact, Douang and his team have already been involved in several conversations with Sobeys at the national level, including meetings with the grocer’s innovations team. And, Aisle 24 have developed a mutually beneficial relationship with Sobeys Wholesale which includes a pricing agreement that allows the company to see out its commitment to enter rural markets, offering residents increased conveniences at prices that are competitive with other grocery entities in their areas. If all goes well over the course of the next six months or so, Douang believes that the opportunities available to the company and its franchisee operators are nearly limitless.

“Toronto and the surrounding GTA is obviously our primary market. However, over the next little while, you’re going to see Aisle 24 locations popping up in multiple markets right across the country. It’s going to translate into a ton of growth and opportunity for us and our franchisees. And, as we continue to densify these markets, it’s going to result in increased convenience and offering for our customer-base. In the meantime, we have some exciting prime locations opening soon, including Liberty Village in Toronto and inclusion within the community master plans for The Prestige at 1 Yonge Street which is the old Toronto Star building. We’re looking forward to the near-term as we, together with our franchisee operators, continue to evolve and enhance the Aisle 24 experience with the goal of opening several hundred stores over the next several years.”

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Podcast [Interview] Suzanne Sears Discusses Record-Low Unemployment and What it Means for Retailers in Canada

Podcast [Interview] Suzanne Sears Discusses Record-Low Unemployment and What it Means for Retailers in Canada

Craig sits down with Suzanne Sears, founder and President of Best Retail Careers International, Retail Staffing Canada and Luxury Careers Canada, to discuss the most recent jobs report showing record-low unemployment. Retailers continue to struggle to find employees and an emergency situation could take place and stores may not be able to remain open if things don’t improve.

The Interview Series 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 Weekly podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The 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/

Walmart Canada Launches ‘Blue Labs’ Innovation Incubator to Create Retail of Tomorrow [Interview]

Image: Walmart Canada Blue Labs at Collision 2022

Walmart Canada recently launched its Blue Labs initiative which is the retailer’s new incubator and innovation team tasked with creating the retail experience of tomorrow.

“It’s an extremely exciting time to be in retail,” said Lee Jeyes, Head of Innovation, Blue Labs. “We are making investments in tools, technology, and our people to enable them to better serve our customers every day. We are excited to partner with the tech ecosystem on helping us shape the future of retail.

Lee Jeyes

“What Blue Labs is is Walmart Canada’s first ever innovation incubator. So if you think about the role of an incubator, typically it’s a safe, secure environment where you try to nurture some things that ultimately at some point will go on and grow into something bigger.

“So for us, that could be potential opportunity from an innovation perspective. It could be a large organizational customer problem where we just want to bring it into the lab and spend a lot more time on it and break it down. Or it could be future talent. So you think about, 75 per cent of the roles that I’ve just hired for Blue Labs are brand new to the organization. They’re bringing fresh perspectives, capabilities, that frankly we never really had in the organization and that’s enabling us to use that talent to build future capabilities and scale. We also hired design thinking specialists to come in and help inside of the lab and they did bring a fresh and different perspective and capabilities that typically wouldn’t exist in certain parts of the business.”

Image: Walmart Canada Blue Labs at Collision 2022

Jeyes said the goal is to incubate the organization and the biggest challenges for customers and to develop innovation for the future of retail and also build the future talent and capabilities for the organization. 

Walmart announced Blue Labs recently at the Collision Conference in Toronto.

“Technology has changed the retail landscape forever. Whether through e-commerce, automation or customer customization, the future of retail will rely heavily on digital innovation and we want to be at the forefront,” said Nicolai Salcedo, Chief Technology and Data Officer, Walmart Canada, in a news release. “We envision a shopping experience that is people led and tech empowered and we’re creating teams that are bringing the best solutions for our customers.”

Walmart Canada operates a chain of more than 400 stores nationwide, serving 1.5 million customers each day. Walmart Canada’s flagship online store, Walmart.ca, is visited by more than 1.5 million customers daily. With more than 100,000 associates, Walmart Canada is one of Canada’s largest employers and is ranked one of the country’s top 10 most influential brands. 

Image: Walmart Canada Blue Labs at Collision 2022

The company said Blue Labs sits at the edge of Walmart Canada to transform the future of retail. It actively collaborates with Canadian and global innovation ecosystems to incubate disruptive and radical innovation, transforming the future of how, why and where people shop.

“I think it’s an exciting time for us and an important time for us to play a much more proactive and active role in the Canadian technology and innovation ecosystem. It’s one of the best in the world and we would definitely want to play a role, especially over the next few years as it becomes more challenging in that space,” said Jeyes. “The potential opportunity is to partner and co-create and co-develop with the lab.”

Blue Labs is based in downtown Toronto.

“Retail has always been a team sport and the rules are decided by the customer. And as the customer’s expectations change, we need to stay relevant and remove friction from that experience,” he said. “Walmart’s always been on the forefront of innovation whether it’s from its early days, Supercentre concept . . . online grocery, expansion to different markets.

“Innovation has always been important and enabled us to thrive over the last 60 years. But if you think about the next year of Walmart it’s going to continue to play a role to think about how we serve customers. The role of Blue Labs is to make sure that we’re innovating truly on behalf of the customer and thinking about how we solve a lot of customer friction points and reinvent retail for the future.

“But actually our role is to innovate with much more of a longer time horizon. So right now a lot of the innovation teams across the business are working on nearer term innovation and that’s very, very important. You see a lot of innovation happening in our stores, in our distribution centres and e-commerce. The horizon to that innovation is typically on a zero to three, zero to five year time scale. The role of Blue Labs is to think a bit longer tail and how do we focus on what I would call disruptive or radical innovation.”