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 several days.
Podcast [Interview] Michael Binetti Discusses Toronto's Retail History
Craig has an animated conversation discussing the history of retail in Toronto with Michael Binetti, who hosts Jane’s Walks. Binetti begins by discussing the first store in Toronto, followed by how a department store row developed on King Street East that gave way to Simpsons and Eaton’s opening further up on Queen.
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.
Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!
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/
Pitchfork Market + Kitchen at The Meadows (Image: Pitchfork)
Pitchfork Market + Kitchen was born out of an idea of creating a more wholesome and inspiring food shopping experience for people in Saskatoon.
After opening its first location in The Meadows neighbourhood in southeast Saskatoon, the company is expanding to a downtown location at the Midtown shopping centre – with plans to eventually expand the brand throughout Western Canada.
“Pitchfork is a combination grocery store and restaurant,” said Chris Brychun, Director of Retail Operations. “With that, our grocery side of the business has a full selection that your traditional grocery store would have in a smaller, more intimate, community size store and we also lean pretty heavily into local content. We have local content represented in almost every category in the store as well.
Pitchfork Market + Kitchen at Midtown (Rendering: Pitchfork Market + Kitchen and Smart_)Pitchfork Market + Kitchen at Midtown (Rendering: Pitchfork Market + Kitchen and Smart_)
“And the restaurant part of the business, the kitchen part, we have chefs on staff that work with us and they create all of the products that are made in store. All the prepared meal products that are sold in stores is done by them. Essentially anything that would need to be prepared in any way. It’s got that actual flavour to it. It’s not taken out of a box and put on display. It’s actually created in the building and our restaurant also offers sit-down service. There’s 45 seats in our original location plus a patio for the summer months. We have breakfast, lunch and dinner menus available. All of this is also available for delivery.”
Chris Brychun
The first location opened in June 2021 in about 7,500 square feet.
The Midtown location is expected to open near the end of this year or the first quarter of 2023. Square footage is between 15,000 and 18,000.
“It will be essentially the look, feel and representation of our current store with obviously some changes. Our restaurant is going to be about twice the size. It’s going to be more of a true restaurant experience versus the cafe comparison that we use in the Meadows. Obviously with the square footage being significantly larger, we’re also going to have a larger representation of all of the grocery products and expanded assortment in that location,” said Brychun.
Pitchfork Market + Kitchen at The Meadows (Image: Pitchfork)
Pitchfork Market + Kitchen at The Meadows (Image: Pitchfork)
Pitchfork Market + Kitchen at The Meadows (Image: Pitchfork)
“We also are planning a show and production kitchen. The show kitchen will service the actual restaurant. The production kitchen we are designing to be able to produce centrally in the city for up to three or four locations. Then we can actually centralize some of our production. Make it a little bit more efficient and make sure that it is a bit of a standard offering across locations that we open.”
Brychun said the downtown core is an interesting one in the city and the goal as a business is to fill a niche market.
“Downtown has had grocery stores in the past but over time, it’s been over two decades since there’s been a functional grocery store in the downtown,” he said. “We thought it was a prime opportunity to fill a distinct need for residents of the downtown core, the massive population of people that work in the downtown core, who enter and leave that area on a daily basis, but also its proximity to the inner city.”
In the future, Brychun said the company believes grocery stores are a pivotal part of community building. It’s looking at opening three or four locations in Saskatoon but the grand vision is to create a new chain to go across Western Canada.
Pitchfork Market + Kitchen Delivery at The Meadows (Image: Pitchfork)
Tara Faris, General Manager, Midtown, said Pitchfork will be accessible from both an exterior entrance, as well as from within the mall.
“The exterior entrance will be accessed from the West Parking Lot off Idylwyld Drive and Auditorium Avenue and the interior entrance will be in the southwest corridor, adjacent to Boathouse, Coles Bookstore and Tim Horton’s,” she said.
“In looking at potential options for the development of the space, our focus was on securing an anchor that would drive foot traffic to the mall and increase repeat visitation to benefit all retailers and service providers.
“The addition of a full-service grocery store downtown fills a decades-old gap in the amenities available for those that live and work downtown.”
Video Interview: Steve Sadove Discusses Consumer Spending Habits
Steve Sadove, Senior Advisor, Mastercard, former CEO/Chairman, Saks, and former Chairman, National Retail Federation, discusses a new report on consumer spending habits.
Sadove talks about how total retail sales have increased from a year ago and from pre-pandemic, trends in the industry, how in-store sales are rising, what sectors of the industry are doing well and which ones have fallen.
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.
Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.
RCC STORE 22, the biggest retail event of the year in Canada, is just a week away! May 31 and June 1, 2022 at the Toronto Congress Centre, North building.
Back in person for the first time in three years, the two-day event, featuring 75+ speakers, also has an impressive group of exhibitors who will showcase some of today’s most innovative retail solutions.
For conference delegates, the exhibitor floor is an exceptional opportunity to experience first hand how these new products and solutions can positively impact on their businesses. It is an ideal environment to meet new people and re-engage with networks. And there will be plenty of snacks and giveaways to keep everyone energized and make conversations and networking easy.
Here are some of this years’ exhibitors that are especially exciting:
In just a few short years, TikTok has gone from a budding social media network to an important economic driver in an ever-connected economy. It’s a platform uniquely positioned to help marketers deliver both cultural and business impacts.
Come by the TikTok (booth #147) to learn more about how to activate your brand and how to create your own #TikTokMadeMeBuyIt moments. Oh – and for a chance to win exclusive TikTok swag!
DedON: Booth #245
DedON is at RCC STORE 22 to show you how to shape your retail’s physical space with a bit of virtual help!
DedON has worked with some of Canada’s biggest brands – Loblaws to Tim Hortons and everything in between – in over two decades of experience in retail design and renovation. They will be showcasing their work in virtual reality at RCC STORE 22 – CAD drawings, models, 3D animation, drone imagery and various other assets. How will you spark a new idea for your retail space in the virtual world?
Canada-Ukraine Chamber of Commerce: Booth #312
The Canada-Ukraine Chamber of Commerce will be in attendance next week to showcase Ukrainian companies that provide innovative solutions for the retail industry in marketing, security and IT. These companies are looking for new partnerships and clients in Canada in to operate and to support the Ukrainian economy in the wake of the Russian invasion.
If you’re looking to assist Ukanians or a Ukrainian company coming to Canada o visit RCC’s Ukraine Resource page, which includes actions from the CUCC and contact information.
Salesforce: Booth #348
Image: RCC
A comprehensive view of your customer base with a cup of joe. Sounds pretty good, right?
Salesforce’s hands-on booth will be offering demos of their software and showcasing how their products can produce a 360-degree view of each shopper. With their platform spanning across commerce, marketing, service and analytics, it promises to empower your associates with tools and insights to stay connected and inspired and deliver personalized shopping experiences to build lifetime loyalty. Oh, yeah – and there’s an espresso bar if you’re looking for a kick of caffeine, too.
If you haven’t already, pick up your tickets for STORE 22 by clicking here. Travel and accommodation options are still available.
Scandit: Booth #238
What goes best with the latest smartphone? A flashy pair of headphones and smartwatch, of course!
Scandit turns any smart device into a comprehensive data capture tool — from barcodes to text and real-life objects. Learn how their product can bring efficiencies to elements like AR-driven shelf management to scan-and-go technologies.
Come to their booth, learn a bit about the technology, and you might have a chance to win a pair of Apple AirPods Pro or an Apple Watch Series 7 through their smart data capture trivia game!
The Mode Show: Booth #236
MODE Show is Canada’s leading B2B fashion, jewelry, accessories, and lifestyle tradeshow for retailers to source from wholesalers, artisans, importers, and more.
To adapt to the ever-changing retail landscape, MODE is collaborating with Show T.O. to diversify its offerings making it a one-stop-shop for retailers of all sizes. Canadian retailers looking to stock and replenish their stores need to look no further, with MODE offering a curated mix of product categories from apparel and accessories, to luggage and handbags, to beauty and wellness, to design and lifestyle products, and more.
SAP: Booth #300
Retail is transforming beyond omnichannel to a single, adaptive focus on the customer.
SAP helps small and multi-billion-dollar retailers build, launch, and scale personalized campaigns that are seamlessly integrated with back-office functions. Stop by booth #300 to see some of those campaigns in action as well as The Customer Channel.
Retail Insider had the opportunity to tour the new downtown Toronto IKEA store that will open to the public next week on Wednesday, May 25. The store is unlike any other IKEA location in Canada, featuring natural light through ample windows and a product assortment catering to residents in nearby high-density neighbourhoods. Also on offer is an impressive food and beverage offering that will no doubt become popular with locals.
IKEA Downtown Toronto – AURA, photo taken from Yonge and Gerrard Streets (Image: Dustin Fuhs)Yonge/Gerrard entrance to IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
The 66,000 square foot store at the north-west corner of Yonge and Gerrard Streets was announced in March of 2021. The ‘IKEAToronto Downtown – Aura’ store as it is called will be cashless (credit and debit cards can be used) and shoppers will be able to scan and pay for products using the IKEA app and bring them home or have them shipped, or consumers may use self-service points to purchase products. Smaller items can be taken home or ordered online for delivery, while larger items can be ordered online with an employee in the store. A representative said that one of the goals of IKEA was to bring “retail of the future” to the Toronto store.
Second level looking down to the main floor at IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)Penguin Pickup instructions at IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Food and beverage will play an important role in the store. A ‘Swedish Deli’ has a mix of sit-down and grab-and-go options including frozen foods that can be brought home. Screens in the store provide an opportunity to order various dishes including meatballs, both real meat and vegan (the vegan option is only $5.49 for six veggie balls served with green lentils, curry sauce, shaved parmesan and arugula). Other items include hot dogs ($1), wraps (including egg salad, veggie and salmon), salads, cinnamon buns ($1.50 each), muffins ($1.50 each), vegan chocolate tortes, frozen yogurt, ice cream cones and sundaes among other items.
Menu at Swedish Deli at IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Prices are lower than other foodservice businesses in the area with coffee priced at $1 and premium espressos are $1.50 for small and $2 for a large size — the Deli area has its own entrance doors onto Gerrard Street and crowds are expected. The Swedish Deli will have its own business hours, being open earlier and later than the main store depending on business needs.
The store features multiple showrooms developed with locals in mind, including small model ‘apartments’ with items catering to condo dwellers. Various items are available to buy in the store and larger items can be ordered for delivery.
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Craig Patterson)
The two level store features a street level with tableware, a cook shop, kitchen items, a planning area for kitchen, checkouts and the Swedish Deli. Upstairs is a customer service area, items for the living room, storage, lighting, dining items, workspace items, home organization, kids items, and planning areas for bedroom and bathroom. Washrooms are also located upstairs. In the basement is an area for customers to pick up orders to bring home either by subway or car.
IKEA Downtown Toronto – AURA. The arrow on the floor is via a light fixture overhead (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Included as well on the second floor are live plants (as well as a variety of artificial ones) at prices considerably lower than what one might pay at downtown retailers. IKEA will compete against a range of retailers in the downtown core on price as well as service.
Live (and artifical) plants at IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
IKEA partnered with Penguin Pickup which has 16 points in the downtown core. Customers can order items from the store to be picked up at one of Penguin Pickup’s locations. Larger items and those out of stock come from a warehouse in Mississauga.
IKEA’s own logistics had to be modified for the new store given the density of the downtown core compared to the suburbs.
IKEA Downtown Toronto – AURA (Image: Craig Patterson)
During the tour we learned of IKEA’s Small Business Program which works to outfit offices and remote work stations. The downtown store features displays and showrooms showcasing work environments.
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
About half of the 160 employees in the new downtown store came from other IKEA locations in the area. Some of the employees who transferred to the new store already lived in downtown Toronto and said that they were happy to have the opportunity to walk to work.
Other urban concept IKEA stores are located in Paris, London, Queens NY and a location in San Francisco opens next year.
Interestingly, IKEA’s real estate arm Ingka owns much of the podium at Aura at College Park now, including the space above the store occupied by a Marshalls store as well as main floor space occupied by two financial institutions. Those tenants will remain according to an executive with Ingka.
IKEA Downtown Toronto – AURA (Image: Craig Patterson)
Toronto’s newest IKEA is an impactful opening for the city’s downtown core which saw lower foot traffic and retail sales over the course of the pandemic. Locals will have reason to celebrate with a new store with affordable price-points and a compelling retail and food experience.
IKEA Toronto Downtown – Aura will be open from 10-9pm Monday-Sunday once fully operational next week.
See below for many more photos.
Yonge Dundas Square Sign for IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Second floor entrance to IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
The IKEA Downtown Toronto – Aura is an impressive store with many classic “IKEA” features along with additional “Urban Concept” designs. During our tour, we were able to explore the entire sales floor.
Our goal during this part of the article is to share the views that the customers would be able to see when they visit the store when it opens on May 25th, 2022.
Check-Outs
The new IKEA will employ a number of check-out options, including the app “fast track” lines and team members with mobile check-out on tablets. The “cashless” environment will still allow for debit/credit transactions.
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Loyalty
IKEA Family is the loyalty program within the IKEA community. This allows for customers to gain access to exclusive discounts, free workshops and events. The brand has invested in the program in preparation for an influx of new members within the downtown core.
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Business and Office
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Toronto Community
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Swedish Deli & Dining Area
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Inspiration Rooms and Zones
IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
Extra Images from the Tour
IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Craig Patterson)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)IKEA Downtown Toronto – AURA (Image: Dustin Fuhs)
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.
An Allbirds store in London. Photo: David M. Benett/Dave Benett/Getty Images
San Francisco-based sustainability-focused footwear and fashion brand Allbirds is entering the Canadian market this year with at least two permanent stores as the company launches in new markets globally. Co-Founder and Co-CEO Joey Zwillinger says that the first two stores will open in Vancouver and Toronto and that more will open as part of the expansion.
The first store will open this summer at 2262 West 4th Avenue in Vancouver’s Kitsilano neighbourhood — the street has become home to several international direct-to-consumer brands. The space will span more than 2,150 square feet on the main floor plus an additional 970 square foot mezzanine. Trevor Thomas of JLL Canada negotiated the deal on behalf of Allbirds. The landlord in the lease deal was represented by Mario Negris and Martin Moriarty of Marcus & Millichap.
Vancouver location: Click image for interactive Google Map
A second Allbirds location will open this fall at Toronto’s Yorkdale Shopping Centre. The 2,430 square foot store will replace an Innisfree location — Korean skincare brand Innisfree shut its Canadian stores and exited Canada last year because of the pandemic. Broker David Steuer negotiated the lease on behalf of the retailer with landlord Oxford Properties.
The new permanent stores will “bring community into stores” according to Zwillinger, who explained how the retail spaces will act as a home-base for “like minded people”. Experiential elements such as a run club, artists, food and ambassadors will be part of the mix.
Zwillinger said that more locations will follow as part of larger expansion for the company which filed for an IPO last year. Allbirds has seen tremendous growth from its stores which in the US saw growth “well in excess of 150%” in the first quarter. The company says that it plans to eventually operate hundreds of stores globally. There are currently less than 30 stores in the US.
Former Allbirds storefront on Queen St. W. in Toronto. Image: Allbirds
Wholesale could also be part of the mix for Canada according to Zwillinger, though retail partners have yet to be secured. In the US Allbirds announced its first wholesales deals this month with Zalando and Public Lands.
Allbirds was founded by Zwillinger and Tim Brown in 2014. Prior to founding the company, Zwillinger was a biotech engineer and renewable materials expert and Brown was a professional soccer player from New Zealand (he also has a degree from the London School of Economics).
A Kickstarter crowdfunding campaign in 2014 kicked-off the brand with the campaign reaching over $100,000 in sales in just four days. Zwillinger’s background helped design the construction of the rapidly growing brand while introducing additional sustainable materials such as a vegetable oil-based polyurethane insole.
In 2016, Zwillinger and Brown renamed the footwear brand as ‘Allbirds’ and launched products for the public. The Allibirds name is a historical reference to New Zealand having been so remote at one time that its only inhabitants were ‘all birds’.
Tree Flyer shoe launched this week. Image supplied
This week, Allbirds launched a new running shoe called Tree Flyer. The neutral, cushioned, lightweight running shoe was designed to tackle any running terrain and for longer distances. SwiftFoam technology is used for a tighter hold on one’s foot. A flared external heel counter provides support and helps ensure one is secure.
With a carbon footprint of just 9.92 kg CO2e, all of which is offset to zero, the shoe retails for $210 CAD and is available in the colours Lux Beige, Buoyant Yellow, Natural Black, Blizzard, and Buoyant Orange.
This month as well, Allbirds will launch its Sugar Series of flip-flops made with sustainable sugarcane, giving consumers a simply designed shoe that Allbirds says is “a perfect blend of bounce, cushion, and comfort; all while having a light carbon footprint.”
We’ll report more on Allbirds Canadian expansion as we learn of new store openings in the works.
Gateway Newstand at Brookfield Place (Image: Dustin Fuhs)
Is a spike of insolvency cases in Canada a sign that more is to come in the coming months?
Business insolvency filings in Canada rose 33.8 per cent in the first quarter of this year compared to the same quarter last year, the highest year-over-year increase in 31 years, according to records from the Office of the Superintendent of Bankruptcy.
Jean-Daniel Breton
In the first quarter of this year, 807 business insolvency proceedings were filed under the Bankruptcy and Insolvency Act, up 10.1 per cent compared to the previous quarter and catching up to levels seen at the onset of the pandemic in the first quarter of 2020. For the 12-month period ending March 31, 2022, business insolvencies are up 7.1 per cent compared with the 12-month period ending March 31, 2021.
“The number of businesses becoming bankrupt or filing proposals is growing, and likely to worsen under the stress of inflation and as the cracks begin to show following the withdrawal of pandemic-related government support,” said Jean-Daniel Breton, Chair of the Canadian Association of Insolvency and Restructuring Professionals, the national voice on insolvency matters in Canada.
McEwan Yonge & Bloor Closed (Image: Dustin Fuhs)
“The support measures, together with a heightened level of creditor patience, prevented an initial spike in business insolvencies. However, the reversal in the recent trend of decreasing insolvency filings, seen over the last two years, puts in evidence the economic damage caused by the pandemic.
“With inflation now at a 30-year high and the Bank of Canada looking to correct with several interest rate increases this year, it stands to reason that we could see even further surges in the rate of business insolvencies.”
“We should not ignore the human struggle that comes with it. Those that lost their investments as business owners, the workers who lost their jobs, and the suppliers. This is unfortunately not over. Lower revenue, debt, inflation, higher interest rates and supply chains are just some of the issues that will perpetuate more bankruptcies. Are these a hangover caused by the pandemic? Perhaps. What we don’t know is how many businesses shuttered in silence. Nevertheless, the current issues today will accelerate challenging times and if revenue cannot meet operating expenses and the ability to service debt, it will not be good news,” he said.
“We are about to see a resetting of what success looks like for consumer-facing businesses. As a result I expect, as consumers pull back to pay for necessities, larger retailers will dial up their digital warfare tactics poised to address everything from a short recession to deep recession or even worse stagflation. All of these scenarios pave a path for more business closures and job losses, not to forget the suppliers who fail because their customers can’t pay. It’s happened in other economic downturns and it will happen again.
“After 20 years of leading retail chains, my advice to businesses is don’t buy into the farfetched rhetoric that there are shortcuts to protecting your business from failure. Focus on the fundamentals. Start with great marketing, that sells the right products at the right price with service, that comes with an experience that becomes a customer expectation that can be repeated and improve on it continuously. That’s how you build traffic and loyalty. It’s the only way to stay in the game in this environment.”
Bruce Winder
Bruce Winder, author of RETAIL Before, During & After COVID-19 and President, Bruce Winder Retail, said the rise in business insolvency filings is not surprising.
“Weary from two years of pandemic driven shutdowns, businesses now face the reality of massive cost and price inflation, in some cases higher wage rates, and issues regarding labour availability. In addition, some businesses face a mountain of debt taken on during the pandemic while government subsidy programs have ended. Higher interest rates make this debt harder to pay back from operations,” he said.
“Also, consumer buying habits have changed since early 2020 because of the pandemic, and the new normal may not match with a retailer’s value proposition anymore. Many customers are trying to save money through reduced spending to compensate for inflation. Finally, some businesses may have already closed and not bothered to complete the documents that would register them as insolvent so the problem may be understated. I expect insolvency reports to increase as more businesses try to make a go of it in the summer but wrap up operations this fall.
“The good news is that we should see a number of new businesses start as entrepreneurs try and capitalize on life after the pandemic.”
Closed ALDO Shoes (Image: Dustin Fuhs)
Breton said budgeting for Canadian businesses has never been more challenging. Many fixed costs, such as rent and interest payments, remain due while the cash flow intended to meet these obligations has dwindled.
He said business owners should seek professional expertise for guidance on how to implement new strategies or restructure their debts.
“One thing that might alleviate those factors is how they perceive the future to be. If they think the business will improve over time, well then the insolvency rates might actually become lower even though there is prevailing inflation or interest rates are high. If on the other hand, the numbers start going down but the business owners think that everything is doom and gloom then the insolvency rates might actually increase because of that,” added Breton.
“It’s not something that you can pinpoint with precision and forecast with certainty what will happen. All of these factors come into play and will influence the behaviours of the businesses.
“What we do know is that some level of insolvency filing is normal. It’s actually healthy. There’s like a cycle in the economy where some businesses start and some businesses fail. That is just a sign of a healthy economy. It means that people are taking risks and are starting businesses. Some of them will not work out but a lot of them will. So the insolvency system is a way to in some cases remove the businesses that shouldn’t be in the economy because they’re not viable or they’re not productive or improve the businesses that are there through a restructuring to make them viable.”
Tao Tea Leaf - Union Station (Image: Spring Morris / Tao Tea Leaf)
Tao Tea Leaf has opened its latest location in Toronto at Union Station in a high visibility area of the concourse, directly under the Great Hall.
And the brand, a retailer and wholesaler of loose leaf teas which was founded in 2009 with two other Toronto and area locations, expects to continue to grow its presence in the market.
The first company location was on Yonge Street followed by a presence in Mississauga’s Square One Shopping Centre.
Tao Wu, founder and owner, said he found the Union Station because one of his friends was looking for a location for their business.
Tao Tea Leaf – Union Station (Image: Spring Morris / Tao Tea Leaf)
“I noticed there was a space. It was ready,” he said. “When we opened our Square One location we did our marketing research. I saw Union and the Financial District. I was impressed with the traffic inside the Union.
“There was a thought in my head that maybe one day this location will be a good idea for my business. We believed that once COVID passed the location would be a good one. So we decided to take it.
Tao Wu
“We do have a plan to open more stores but we also have other plans for what we want to do. For example, we like to keep our shop size small and also we only want interesting, high traffic areas. Probably outside Toronto, but for now I will focus on Toronto.”
Tao Tea Leaf also features blended teas and herbs.
“Tao is a Chinese word signifying the “way”, “path”. In the context of East Asian philosophy and East Asian religions, Tao is the natural order of the universe whose character one’s human intuition must discern in order to realize the potential for individual wisdom. This intuitive knowing of “life” cannot be grasped as a concept; it is known through actual living experience of one’s everyday being,” says the company on its website.
Tao Tea Leaf – Union Station (Image: Spring Morris / Tao Tea Leaf)Tao Tea Leaf – Union Station (Image: Spring Morris / Tao Tea Leaf)
“Mingzhu Gao (a certificated Tea Sommelier who graduated from Carleton University and worked as an accountant) and I began this specialty tea company out of love and passion for high quality tea. Our tea has gained a lot of attention including a First Place Award in the annual North American Tea Championship. Our retail tea shop has been featured as one of the best tea shops in Toronto by blogto.com, and was also featured in the Toronto Star.”
Tao Tea Leaf also founded the first Toronto Tea Festival in 2013, and this tea festival has become an annual event but was put on hold this year and last year due to the pandemic. It is the largest festival of its kind in Canada, as every year more than 45 local tea-related vendors participate and more than 2,500 tea lovers attend.
“Right now, the last Tea Festival was 2020 because usually the Festival happens by the end of January and the beginning of February,” said Wu. “We were lucky. We organized for 2020 and then COVID hit. Maybe we are thinking to plan for 2023 but we’re not 100 per cent sure yet.”
Wu said tea is becoming increasingly more popular for consumers.
Tao Tea Leaf – Union Station (Image: Spring Morris / Tao Tea Leaf)
Tao Tea Leaf – Union Station (Image: Spring Morris / Tao Tea Leaf)
“There’s a few things. One is for the taste. Lots of people probably haven’t experienced tea before. But in the past few years, the whole tea market is booming and they may have a different chance to taste different types of tea. It may be blended tea or traditional, authentic tea. They may have milk tea, bubble tea,” he said.
“There’s also a good health benefit for drinking tea. People like to use tea, it’s not really a medicine, but it has lots of health benefits to help people for some health purpose.”
Tao Tea Leaf says it is committed to transparency in the tea industry.
“We source traditional, handmade teas directly from the growers and tea masters who craft them around the world. We hand blend and custom craft the finest teas and botanicals. Our collection has grown to 180 unique teas and blends; this includes our 53 certified organic selections,” says the company.
Tao Tea Leaf – Union Station (Image: Spring Morris / Tao Tea Leaf)
“We bring small groups of tea lovers to China for tea tours every year. We share who they are, what we see, how we feel not only best teas. All our tea information is honest and accurate, as are the stories behind each tea, and our customers have come to expect a real, fully genuine experience with us.
“Tea is all about sharing; Tao Tea Leaf offers in-store tea tasting events and workshops which help novice tea drinkers learn more about tea and culture. We also offer tea tasting events and workshops which, in the past, have been presented in cooperation with the Toronto Library, Harry Rosen and Park Hyatt Hotel, etc.”
The retailer, which was among the finalists for the 2014 Canada Post Ecommerce Innovation Awards – Most Creative Marketing Campaign (Small), believes ecommerce is the future.
“We are connecting Tea Gardens to Tea Cups across the world by the click of a mouse. Today, we’ve built a company that connects tea masters across China to tea lovers in more than 15 countries, from the United States to Thailand, Germany to Greece, Turkey to the United Kingdom, Norway to Spain, Australia to the United Arab Emirates, Ireland to Indonesia, and Russia to France. Tea lovers across Canada and around the world are finding the teas they want and the information they need at Tao Tea Leaf’s website. Our teas are also selling at Staples.ca, Shop.ca, Amazon.ca and will be launched at theShoppingChannel.com soon,” it says.
