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H-Mart Grocery Store to Anchor Aoyuan’s M2M Project at Yonge and Finch in Toronto [Interview/Renderings]

By
Mario Toneguzzi
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M2M (Image: Aoyuan Canada)

International real estate company Aoyuan International has launched its first Toronto development – a master-planned community in the culturally-diverse neighbourhood of Newtonbrook which will be home to a new H Mart, a Korean-American supermarket.

The 8.6 acre Newtonbrook Plaza site at Yonge and Finch in Toronto will be transformed into Aoyuan’s largest master-planned community in Canada called M2M. Plans include five residential condo towers, 180,000 square feet of office and retail, a daycare and community centre.

Cherie Chan

Cherie Chan, Senior Manager, Branding and Marketing, with Aoyuan in Canada, said the supermarket will be 36,000 square feet, fronting at 5803 Yonge Street and the flagship store will include produce, seafood, meat departments, beauty and cosmetic, and a mini food hall with a bakery.

She said the first phase of the project is planned for completion by 2023. H Mart is expected to open Spring 2024.

H Mart at M2M (Image: Aoyuan Canada)

H Mart, which will be operated by Hanahreum Group, is recognized as one of the top 100 Progressive Grocers in 2020 and is recognized as one of the fastest growing retailers in the National Retail Federation’s HOT 100 RETAILERS (#13 HMart), added Chan.

“In the GTA, particularly North York area, represents the main proud feature of Canada, multi-ethnic, and multi-cultural communities – ever growing rapidly,” shared Do Jun Hwang, CEO, H Mart. “However, despite many attempts by various supermarkets, there has not been a high-end supermarket with satisfactory quality, diversity and service which would satisfy the community. H-MART and the M2M will become a landmark known for the supreme living.”

H Mart is the largest Asian American grocery store chain with 97 locations in the U.S., 17 locations in Canada, and three locations in the U.K. In Canada, H Mart has locations in British Columbia, Ontario, and Alberta. In the GTA, H mart currently has two locations in Downtown Toronto, one in Richmond Hill, and four locations in North York; with the plan to open two new stores in GTA including M2M, bringing its total count to 20 locations across Canada, added Chan.

M2M (Image: Aoyuan Canada)
Fan Yang

“Aoyuan develops homes that encourage active lifestyles and wellness for our residents, and the wider community; and that includes having access to healthy food and grocery options for everyone in the neighbourhood. We’re trilled to partner with H Mart and having them as the anchor tenant at M2M.” shared Fan Yang, General Manager, Aoyuan Canada.

Chan said H-Mart clearly understands Toronto has a fast-growing multicultural population, while providing a broad range of Asian foods, they also carry international and western groceries to better serve the local community. H Mart is also famous for its foodie-attracting food halls, which offer various restaurants serving up delicious cuisines.

“H Mart is quite familiar in this space . . . First of all, they are one of the largest Korean-American supermarket chains. They’re well-known not only in the Asian community but anywhere they operate. So we’re really happy to have them as the anchor tenant for M2M. We have been working very closely with them,” she said. “We’re inspired to create a welcome environment and a fulfilling shopping experience for our residents and for the surrounding neighbourhood. 

H Mart at M2M (Image: Aoyuan Canada)

Chan said the three-phased development of M2M will include about 1,750 residential units.

“It’s a very mixed neighbourhood that we have . . . It’s like a little bit of everything . . . For us, the development is not only about building buildings, it’s really about encouraging an active lifestyle and part of how we can make it accessible for our residents and our neighbourhood is a healthy food and grocery option which having H Mart as a partner really completes M2M.”

Chan said H Mart is part of the first phase of the development. In the second and third phases, another 30,000 square feet of retail will be created with possibilities including a pharmacy, a bank and food and entertainment. 

Michael Betel of Cushman Wakefield negotiated the deal on behalf of Aoyuan.

H Mart at M2M (Image: Aoyuan Canada)
H Mart at M2M (Image: Aoyuan Canada)
H Mart at M2M (Image: Aoyuan Canada)
H Mart at M2M (Image: Aoyuan Canada)
H Mart at M2M (Image: Aoyuan Canada)
H Mart at M2M (Image: Aoyuan Canada)

Thyme Maternity Relaunching in Canada this Fall in RW&CO. Stores [Interview]

By
Mario Toneguzzi
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PHOTO: RW&CO

Retailer RW&CO. is launching its Thyme Maternity label this Fall, effectively expanding its style offering and integrating Reitmans (Canada) Limited’s expertise in the maternity market segment. 

Michele Slepekis, Vice-president of Marketing and E-Commerce at RW&CO, said the collection within RW&CO. is comprised of stylish, versatile and functional pieces for consumers to feel confident during and after their pregnancy. 

“The collection is inspired by RW&CO.’s signature “polished cool” look and is there to complete the journey of our expectant customer. As a brand, we are always trying to equip our clients with fashions that suit their everyday lifestyle ranging from workwear, to everyday wear, loungewear and more,” she said. 

“We added the maternity segment this fall to continue our work of extending our offer and position RW&CO. as a prime destination to suit and uplift our community’s ever-evolving style. The Thyme Maternity collection is for our customer who’s looking for stylish, classic casual and workwear staples to feel confident and comfortable during her pregnancy without sacrificing style.”

She said 17 selected stores from coast to coast will carry the Thyme Maternity collection in September and the retailer created a dedicated area in the stores for it. 

Image: Thyme Maternity
RW&CO at CF Toronto Eaton Centre will be a future home to the Thyme Maternity collection (Image: Dustin Fuhs)

There are currently 77 RW&CO locations.

Patricia Robichaud

Patricia Robichaud, Senior Advisor, Corporate Communications for Reitmans (Canada) which operates RW&CO, said Reitmans (Canada) Limited entered the Companies’ Creditor Arrangement Act (CCAA) on May 19, 2020 in order to restructure the company and modify work methods and processes. 

“We were forced to close two beloved brands, Thyme Maternity and Addition Elle, and we made the painful decision to let go many dedicated and hard-working employees. The Thyme Maternity transactional website and all its stores closed in August 2020. On January 12, 2022, RCL exited CCAA, confident that our brands Reitmans, Penningtons and RW&CO. would flourish,” she said. 

Image: Thyme Maternity
PHOTO: FORMER THYME MATERNITY LOCATION

With approximately 350,000 babies born annually in Canada, RW&CO. is primed to become a leading shopping destination for expectant people, said the retailer.

The Thyme Maternity collection is available online at rw-co.com and in select RW&CO. stores across Canada in September.

Reitmans operates 404 stores consisting of 236 Reitmans, 91 Penningtons and 77 RW&CO. 

Local Consumer Base Supports Sales at Retailer ‘Jennifer’s of Nova Scotia’ as it Sees Rush of Tourists for 1st Time Since Pandemic [Interview]

By
Shelby Hautala
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Image: Jennifer's of Nova Scotia

Jennifer’s of Nova Scotia, a local gift shop, is celebrating 42 years in Halifax and because of locals, the retailer has survived the pandemic and continues to thrive. 

Located at 5635 Spring Garden Road, the gift shop products are all locally made and the retailer will continue to grow its maritime collection which currently includes 256 local suppliers. 

“We always have new local products coming in. The items we carry includes handmade pottery, knit wear, wools, glass, there is a lot of glass that we carry. There are also all kinds of edible products, like maple syrup, jams, saltwater toffee, and more,” says Kurt Bulger the owner of Jennifer’s of Nova Scotia. 

Originally the shop was located near Peggy’s Cove, but two years after opening it moved to Spring Garden Road in Halifax and has been there for 40 years now. In terms of popular products, they “get a lot of hits on their saltwater toffee,” says Bulger. Customers can find a selection of products including pottery, gift sets, candles, home décor, jewelry, books, food, apparel for the whole family, and maritime keepsakes. 

Roadblocks and Obstacles 

Image: Jennifer’s of Nova Scotia
Image: Jennifer’s of Nova Scotia
Kurt Bulger

Due to the travel restrictions during the pandemic, the business along with others lost their tourism income. However, Bulger learned the East Coast locals really had his back. Bulger said 70 percent of their customers are local buyers and 30 percent are tourist, so during the pandemic they were only seeing about 65 percent of that with no tourist in town. 

“That just proves the locals have been supporting us,” says Bulger 

On top of the struggles that already came with the pandemic, last summer the city decided to close the street for construction, making it an additional obstacle to bring in customers. And now, Jennifer’s of Nova Scotia is hoping to have a normal wave of both local and tourism customers; however, they will possibly be facing another issue down the road as the city is looking to make Spring Garden Road only accessible for transit, biking, and walking. 

“There is nothing we can do, there is no doubt we will survive but it is just how much we thrive. We have an online store to reach out but there is nothing we can do to get the customer here anymore than we can,” says Bulger. “It is 42 years of our reputation, we will see if the customer will continue to find a way to us even though the city is making it more and more difficult by taking out parking, putting in bike lanes, and restricting where you can drive.”

First Summer of Tourism 

  • Image: Jennifer’s of Nova Scotia
  • Image: Jennifer’s of Nova Scotia
Image: Jennifer’s of Nova Scotia

As this is the first summer of no restrictions for travel, Jennifer’s of Nova Scotia is trying to prepare by hiring more staff, a task that is becoming difficult. 

“We have been trying to hire staff now for the last six months and it has been hard,” says Bulger. “We usually function with about 13 employees, but now we are functioning with 7. It has been a lot of work and we are trying to get staffed up again, but it has been difficult.”  

Even with the obstacles this store has faced, they are excited to welcome in the wave of tourists and are hoping locals will continue to support them.

“The purchases from the locals kept us going through the pandemic. So, God bless the locals,” says Bulger.  “It is now a strategy of ours to try and become more of a Nova Scotia giftshop, not just a tourism shop. We will just continue what we have been doing happily for the last 42 years and continue to grow.”

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Making Retail Stores Accessible: Retail Council Canada Releases New Guidebook Accessibility Amid A Changing Retail Landscape and launches New Webinars on Mental Health in Retail Operations

By
Retail Insider
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Making Retail Stores Accessible: Retail Council Canada Releases New Guidebook Accessibility Amid A Changing Retail Landscape and launches New Webinars on Mental Health in Retail Operations

The increase in digitization of retail throughout the pandemic has made accessing retail harder for Canadians with disabilities, including the growing population of older Canadians who will increasingly face accessibility challenges. People living with disabilities can struggle to interact with mainstream retail infrastructures and are sometimes met with attitudes that are unknowingly insensitive to their situations.  

Retail Council Canada (RCC) is continuing to help make retail more accessible for all with the newly released RCC guidebook: Accessibility Amid a Changing Retail Landscape

This free 28-page guidebook, available for download on RCC’s website under its Accessibility section, serves as an invaluable resource to retailers by offering critical information and insights to support the creation and maintenance of accessible digital and physical stores. It is available in French and English.

The need for retailers to address their stores’ accessibility challenges, and to understand opportunities for improvements, is illustrated in the following statistics:  

  • 30% of Canadians consider accessibility when looking for a place to shop or do business. Source: Rick Hansen Foundation
  • 9.1 million people in Canada have a recognized disability. Source: The Global Economics of Disability
  • $82.2 billion is the cumulative annual disposable income among Canadians with disabilities Source: The Global Economics of Disability

“While retailers have done an amazing job throughout the pandemic of diversifying how the general population can shop, especially through the many new digital options available, there continue to be opportunities to improve accessibility for people with disabilities,” said Marcie Wenn, Manager, Education at Retail Council of Canada. “And, as the average age of Canada’s population increases, so too will the number of individuals who are living with disabilities. When retailers make enhancements to their digital and physical stores to create greater accessibility, they directly meet the needs of those with disabilities, and build stronger loyalties with the people who support those with disabilities. Retailers that make these accommodations positively differentiate their retail experiences for all customers. 

RCC, with generous support from the Government of Ontario’s Ministry of Seniors and Accessibility, has developed this free resource to help retailers better understand how accessibility barriers impacts their customers and business’ success. 

Featured sections of Accessibility Amid a Changing Retail Landscape guidebook include:

  • Accessible customer service: What retailers can do to ensure that all customers are served properly, including wording, and speaking with compassion;
  • People with vision and hearing disabilities: How retail can support and ensure comfortable spaces;
  • People with physical disabilities: What tools can aid customers;
  • Online store accessibility: Accessible website guidelines, assistive technology, accessible digital content images to ensure a comfortable online experience;
  • Guide dogs and other service animals: Protocols and assistance for retailers;
  • Accessibility and store design: How to make retail spaces more welcoming and usable;  
  • Overcoming building type restrictions: 10 simple things retailers can do to make their stores accessible, regardless of the type of building in which they operate. 

To complement the teachings within the Accessibility Amid a Changing Retail Landscape guidebook, RCC is hosting two webinars in September (simultaneous translation in French will be offered) that is open to everyone who wants to learn more about building mental health into retail operations.  

To register:

Basics of Psychological Health and Safety in the Workplace – Sept 14/22 1-2pm ET

Guide to Building Mental Health into Retail Operations – Sept 21/22 3-4 ET

These webinars are part of RCC’s EnAbling Change for Retailers series, an initiative aimed at making retail operations more accessible, adaptive, and inclusive.  A variety of topics are covered to help retailers maintain accessibility standards from every angle.  Recordings of the 2022 EnAbling Change webinar series can be found in the Accessibility section of the RCC website.

Questions on the new Accessibility Amid a Changing Retail Landscape guidebook or the EnAbling Change for Retailers webinars series can be directed to Marcie Wenn, Manager, Education Retail Council of Canada, mwenn@retailcouncil.org

Rapidly Expanding Automated Cashier-less Retail Concept ‘Aisle 24’ Partners with Axis for Surveillance and Security [Interviews]

By
Mario Toneguzzi
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Aisle 24 x Axis Communications

Aisle 24, a fully-automated, 24/7 cashier-less grocery chain based in Toronto, has opened its newest location in Toronto, featuring a sophisticated, integrated security solution to safeguard customers and enable franchise owners to manage their operations remotely. 

The new system includes surveillance coverage, custom access control, remote control, and analytics designed to assist staff in inventory management and other business operations and it will help power the company’s expansion plans in Canada.

John Douang

“These are hyper-urban grocery stores, and—given today’s busy lifestyle—people appreciate having this kind of safe and secure convenience in their neighbourhood or right in the building where they live,” said John Douang, co-founder and CEO of Aisle 24. “By emphasizing safety and security while accumulating business intelligence, we’re offering franchise owners the ability to monetize empty space and build a profitable business that places far fewer demands on their time than running a traditional grocery store.”

Currently, Aisle 24 has 16 locations in Ontario and Quebec, with plans to launch at least 40 more stores in Vancouver, Edmonton, Calgary, and Halifax by the end of the year. In the future, Aisle 24 plans to continue expanding its 24/7, cashier-less grocery stores across Canada, as well as the United States, South America, and parts of Europe and Asia.

Aisle 24 Market at Liberty Village (Image: Dustin Fuhs)

“We partnered with Axis in early 2021 for our first community stores. It was very important for us to look for a technology partner that had multiple solutions but also had an open platform for us to customize and integrate with our own systems. We worked with probably two or three other security system manufacturers in the past and found there was always limiting factors which is why we moved to Axis.

“They are the leaders in the industry and they were very helpful at the beginning to really spend a lot of time to understand our business so that they can help provide the best solutions for us.”

Aisle 24 began in 2016 with its first location at Centennial College in Toronto.

“We have several more opening in the next several weeks,” added Duoang. “We have a bunch that are in construction and likely to launch around the September timeframe. We’re pushing for September launches.

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

“One of the key things for our business is we want to bring the convenience to the customer. So we will always position our stores in a highly dense area that contains a lot of residential. So condos and apartment buildings make a lot of sense for us. We always look at vertical density rather than horizontal density like single-detached homes is not our forte. We like to be somewhere more dense.

“Demographic wise we definitely are targeting the Gen Z and the Millennials but we do see a very broad range of our customer base across all demographics.”

Aisle 24 has partnered with Smart Installs Inc., a Toronto-based customer security solutions provider and Axis Communications integrator partner, for their assistance. Axis provided video surveillance and audio technology, as well as 2N audio/video intercoms – all streaming to an AI-enabled video management system. Together, they created an integrated surveillance solution, customizable access control through a mobile app, and analytics designed to reduce shrink, streamline inventory management, analyze point-of-sale data, and optimize each store’s product mix for maximum sell-through.

Entering an Aisle 24 store is completely touchless. Customers can open the app on their smartphone as they approach the Bluetooth-enabled 2N intercom at the store door, which then displays an UNLOCK message and releases the door. Once inside, they can load their cart and then self-checkout at the register kiosk.

Aisle 24 Market in River City 4 (Photo by Dustin Fuhs)

Jason Chiu, Professional Services Group Manager for Canada for Axis, said Axis is a manufacturer of the Internet of Things devices. It began in the security world by making security cameras but it quickly branched out to many other related technologies. 

Jason Chiu

“Aisle 24 is one of those customers that is not only using our devices and our solutions for only security but also for other areas of their business,” said Chiu.

“So basically they’re employing several of our technologies into their stores to help them become unattended and unmanned. We’re protecting their stores from the perspective of security but also a little bit of retail intelligence and basically monitoring what goes on in these stores that are unmanned.”

Chiu said many large retailers use Axis technology.

Keith D’Sa

Keith D’sa, Country Manager, Axis Communications, said integrated solutions is key to providing dynamic levels of safety and security, while bolstering overall business intelligence, as we enter a new era of streamlined retail experiences, investing in state-of-the-art.

“With the confluence of applications and uses that today’s security technology provides, our goal is to keep customers and assets secure, while also allowing Aisle 24 to leverage data to inform day-to-day and long-term business strategies,” he said.

Ken Oki, Managing Director for Smart Installs, said it recommended Axis and 2N technology because they’re built on an open platform, which allows for deep third-party integration.

Ken Oki

“That was important for Aisle 24 since it gives them a wider range of options for current and future customization,” he said.

Axis was founded in 1984, and the headquarters are in Lund, Sweden​. 

“In retail we’re already a very large player when it comes to security but I think what’s exciting for us in the context of Aisle 24 our technology is not only serving up the security and sort of the forensic piece of security after something happens, but they’re actually employing our technology as a key feature in their store to allow it to be cashier less and unmanned,” said Chiu.

“For example, the intercoms that automatically let people in using the app on their phone, our monitoring the inside of the store, how we’re able to use our speakers in the store also to broadcast advertising or music or whatever the case may be. They’re leveraging a lot of the technologies that Axis offers and it’s beyond security.”

Canadian Retail News From Around The Web For August 22nd, 2022

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past several days.

Video Interview: Mastermind Toys CEO Discusses Launch of Private Brand

By
Mario Toneguzzi
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Video Interview: Mastermind Toys CEO Discusses Launch of Private Brand

Sarah Jordan, CEO, Mastermind Toys, discusses the retailer’s launch of its private brand.

Jordan talks about the company’s presence and expansion plans, the addition of an executive to head up the private brand, what to expect from the back to school shopping season, her background and lessons learned throughout the pandemic.

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.

Interviewed this episode:

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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.

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Foodservice Concept ‘Spirulina’ Opens Inside Downtown Montreal Michael Kors Flagship Store [Interview/Photos]

By
Shelby Hautala
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Spirulina at Michael Kors (Image: Spirulina)

Michael Kors is partnering with Spirulina, a health bar and café, at its flagship location at Ste. Catherine Street in Montreal. The partnership includes a new foodservice concept within the Michael Kors store that opened in downtown Montreal in late 2019.

Spirulina is a relatively new concept, having launched with its first location in Montreal’s affluent Westmount area in 2020. Its intention upon its founding was to provide quick healthy foods after finding a gap in the industry. 

“My goal was to help people find healthier options when they are away from home. No one should have to compromise or be forced to eat unhealthily when on the go, so our menu offers a wide variety of simple but healthy food items made with minimal ingredients,” says Jessica Power, the founder of Spirulina. 

Its menu offers a variety of choices such as salads, smoothies, juices, coffee, and more. Currently there is no exclusive menu to the new location; however, Power said they are excited to meet customers and will adapt the menu to suit their needs.

 “It Was a Perfect Fit” 

Spirulina at Michael Kors (Image: Spirulina)
Spirulina at Michael Kors (Image: Spirulina)

“The gorgeous Michael Kors Store on Sainte-Catherine Street is not only the Canadian flagship, but it was a perfect fit. We are confident that this will be the best partnership Michael Kors has had.”

Power said customers should expect “a fabulous one-stop shop location for all your fashion and healthy food needs.” 

Spirulina offers a large luxurious café which includes stylized seating, green textured walls, and also offers “light bites” such as green juice and avocado toast to “let customers unwind from the bustle of the commercial district outside.”  

Power said the goal of partnering with Michael Kors is to expand with her brand to bring quick healthy meal options to all Canadians. 

How Spirulina Started

Spirulina at Michael Kors (Image: Spirulina)
Spirulina at Michael Kors (Image: Spirulina)

After noticing a gap in the food industry with healthy to-go foods, Power decided to open Spirulina. She noticed the issue once she started having digestive health challenges, which uprooted her original career. Before becoming a Naturopath, Power graduated in Business and started a book-keeping and payroll business; however, after not getting any answers about her health challenge, she took it as an opportunity to turn it into something good – to start Spirulina, a healthy café. 

After less than a year of being open, Michael Kors approached Power with a partnership offer. 

“I realized quickly that there was a huge gap in the market when it came to healthy options. I knew that I could use my knowledge to help a wider audience, which is why I launched Spirulina. Less than a year after opening our first location in Westmount, we were approached by Michael Kors to begin a partnership. We knew this was an opportunity of a lifetime and could not wait to partner with a brand that truly understood our vision.” 

The Michael Kors flagship store at 1133 Ste-Catherine Street West spans 9,000 square feet over three floors boasting a vast assortment of accessories, jewellery, footwear, and fashions for men and women. Prior to opening the flagship, Michael Kors had a concession presence at Ogilvy in Montreal — that concession shut prior to a renovation and expansion that created the current 250,000 square foot Holt Renfrew Ogilvy store.

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Clint Mahlman of London Drugs kicks off “In Conversation with Retail Leaders in Canada” fall series with Diane J. Brisebois

By
Retail Insider
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Photo: London Drugs

Hearing directly from senior retail leaders is always the best way to understand their thinking and plans for their businesses.  But, it is often a challenge to get direct access to them.

This fall, Retail Council of Canada (RCC) is bringing back the highly popular, often sold-out, In Conversation with Retail Leaders in Canada series to help retail partners (and for one event only, other retailers), learn, from senior executives themselves, about their perspectives, company business strategies, and specific plans for the future.  

On September 22, 2022, Clint Mahlman, COO, London Drugs, convenes for an information-packed, in-person conversation with RCC’s President and CEO Diane J. Brisebois. (This is the only event in this series that is open not just to the vendor and supplier community, but also to retailers.)

In this session, Mr. Mahlman will speak to the state of vendor and retailer relationships in Canada post-pandemic, and the status of supply chain planning. Vendors and retailers require strong partnerships for mutual success and Clint will discuss the value of being “our vendor’s best retailer” in the London Drug’s business strategy. He will also discuss: the long-term outlook on supporting local governments in the development and production of “made in Canada” vaccinations and pharmaceuticals, how retailers can work to reduce criminal and violent behaviour in-store, the intersection of digital and privacy in retail, and the variety of impacts on sales including supply chain challenges, inflation and more.

Mr. Mahlman brings over 36 years of retail experience and success to London Drugs and has made a lasting impact on many aspects of the business.  From part-time stock person to President, Clint has served in a wide range of store and head office roles, enabling him to develop a 360-degree perspective of the business. He is known for his passion for understanding how customer and employee behaviour drives merchandising and operations.

The event will take place at the Toronto Congress Centre. Also, senior London Drugs team members will be present to ensure this is an unparalleled opportunity for business networking and question answering.  

Tickets: RCC Member $199.00 | Non-Member $349.00. Individual tickets are available, and a 10% discount applies when you register five or more team members.

Register here for the September 22, 2022 In Conversation with Clint Mahlman event.  Also visit https://www.retailcouncil.org/events/ to see more RCC events planned for Canada’s retail community.

Other In Conversation with Retail Leaders in Canada guests this fall include:

Consumers in Canada Less Loyal to Brands in Grocery Stores Amid Inflation [Study]

By
Mario Toneguzzi
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Costco in Burnaby, BC (Image: Field Agent Canada)

Grocery prices are hitting everyday shoppers where it hurts these days: right in the wallet.

And few things influence shopper habits like price, according to a report by Field Agent, a company that leverages crowdsourcing and mobile technology to collect retail audits and conduct mystery shops for retail operations.

“The takeaway for CPG (Consumer Packaged Goods) brands: shoppers are increasingly open to purchasing from competitors. And when loyalty is low, every sale counts,” said Jeff Doucette, General Manager, Field Agent Canada.

“But shoppers aren’t the only ones tightening their belts. As sales dip for many brands, the cost of boots on the ground to fix pricing errors and check out-of-stocks can feel overwhelming. But here’s the good news: low-cost, high-yield solutions for these challenges (and many more) exist to help every CPG brand weather inflation. Companies of all sizes, from Fortune 500 juggernauts to mom-and-pop brands, trust Field Agent to inspect prices, double-check out-of-stocks, and even boost e-commerce sales. All with just a few clicks.”

Image: Field Agent Canada

In Canada, the Consumer Price Index rose 7.6 per cent on a year-over-year basis in July, down from an 8.1 per cent gain in June. The deceleration was a result of slower year-over-year growth in gasoline prices, according to Statistics Canada.

The federal agency said prices for food purchased from stores increased more on a year-over-year basis in July (+9.9 per cent) than in June (+9.4 per cent). Prices for bakery products (+13.6 per cent) continued to rise at a faster pace as wheat prices remained elevated. Higher input costs and global supply uncertainty related to the Russian invasion of Ukraine continued to put upward pressure on global wheat prices amid an already constrained supply, explained StatsCan.

Other food items also exhibited faster price growth, including non-alcoholic beverages (+9.5 per cent), sugar and confectionery (+9.7 per cent), preserved fruit and fruit preparations (+10.4 per cent), eggs (+15.8 per cent), fresh fruit (+11.7 per cent), and coffee and tea (+13.8 per cent), it added.

Field Agent asked 2,739 shoppers about how inflation has influenced and altered their grocery shopping habits over the last three months. 

Shoppers Drug Mart, Winnipeg, Manitoba (Image: Field Agent Canada)

“From a retailer perspective, we’ve really got to think about having those alternate options for people that are on budgets,” said Doucette. 

“If you have $200 to spend on groceries, that’s all you have. So finding options of smaller pack sizes, formats that can help people save a little bit of money from an absolute price point basis. I think that’s the thing we’ve been missing in so many of the conversations about inflation. There’s so many Canadians that their budget for groceries is a fixed dollar amount. It’s not a flexible amount necessarily.

“So if they have smaller pack sizes they can still buy affordably. And private label brands I think are going to be important even though they’re also under pricing pressure and price increases as well. It’s a complicated story but consider that overall consumer budget as a dollar amount and try and help them drive value.”

The survey said 95 per cent of shoppers surveyed are well aware of higher prices, and over a quarter report paying “much higher” prices for their groceries. It’s a pain point many can’t afford to ignore.

Sobeys in St. John’s (Image: Field Agent Canada)

The survey found that 12 per cent of these shoppers report an increase in grocery stock, and about 31 per cent say they haven’t noticed any significant change at all. But a majority (57 per cent) continue to perceive a drop in grocery stock compared to three months ago.

“Why is this an important question for CPG brands? Simply put, customer loyalty drops with the purchasing power of their dollar. Translation: if your product isn’t on-shelf, penny-pinching shoppers are more than happy to swap for a competitor—especially if they’ll save a few bucks doing so,” added Doucette.

The report also found that 53 per cent of shoppers said they are less likely to grab an unplanned treat while grocery shopping and 19 per cent are much less likely to do so. 

“For shoppers, impulse purchases are an afterthought. But for many CPG brands, they’re the prize-winning bread and butter. When a dollar just doesn’t go as far as it used to, frivolous purchases are the first to be kicked to the curb,” explained Doucette.

Dollarama on King West (Image: Field Agent Canada)

“Inflation isn’t only affecting what goes into physical shopping carts—digital carts are also feeling the pressure. 58 per cent of our shopper sample said they buy groceries online at least occasionally, and seven per cent make such purchases at least once a week. It’s a dirty little secret, but what’s in-stock on grocery store shelves may not be available on retailer apps for pickup or delivery. 

“A majority of shoppers have noticed a downward trend in availability as they shop for groceries online or in-app. For CPG brands, that means more substitutions or missed sales.”

The report also found that 82 per cent of shoppers say they’ve adjusted their grocery-shopping habits due to inflation. It said 74 per cent of shoppers say they’re switching brands to save costs, and 75 per cent are buying different groceries altogether (less meat, for example). Also, 23 per cent say that inflation has even influenced them to pick up a membership at a warehouse club like Costco.

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