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Canada’s Baby Formula Problem is for Different Reasons: Sylvain Charlebois

Real Canadian Superstore in Mississauga (Image: Field Agent Canada)

Parents of toddlers are concerned these days about baby formula shortages due to a combination of factors. A major recall in the United States affecting the top manufacturer of baby formula, coupled with supply chain challenges, has made things difficult for parents. In the U.S., some parents are driving hours just to get the right product for their baby. In more than six states, over 50% of retail stores are out of stock. Breast milk banks are getting organized, and many organizations are helping desperate parents. If someone is looking for a product for their child, they will find it, but it may not be the product their baby is accustomed to, and that of course can be a problem for nervous parents.

But the big problem is the recall which occurred on February 17. Abbott, the largest baby formula manufacturer in the U.S., voluntarily recalled its Sturgis-manufactured products and closed the facility following reports that four infants had fallen ill from bacterial infections. Two toddlers allegedly died after having consumed formula produced in the plant. Even a whistle-blower report was submitted last year to the FDA about what was going on at the plant. Abbott denies everything, based on evidence the company collected itself. Still, the plant in Michigan could be shut down for another two months, if not more. Regulators would typically expedite the opening of such an important plant. We saw this during COVID with major meat plants, but the relationship with the FDA and Abbott is clearly fractured and messy.

When only three companies manufacture about 98% of what is consumed in the country, things will escalate when a recall occurs. The baby formula market is not that profitable since birth rates have been dropping in the U.S. When a market is shrinking, getting new players is challenging. 

It’s not the first time baby formula has made international headlines. In 2008, China had its own baby formula scandal when thousands of toddlers were hospitalized, and few actually died. A top manufacturer had opted to add melamine to their baby formula. For months, everything was hidden from the public since Beijing did not want any bad publicity as it was hosting the Summer Olympics that year. This became one of the most significant food safety scandals in history. It’s interesting that the U.S. is now dealing with its own baby formula headaches.  

But in Canada, the situation might be a little different. First off, demand for baby formula in the United States is typically higher in most states. According to the CDC, in the U.S., about 56% of infants are breastfed up to the age of 6 months. In Canada, that rate is above 80%, according to the International Journal for Equity in Health. Reliance on baby formula in the United Sates is more acute. Also, Health Canada has temporarily allowed other infant formula and dutch baby formula brands from the U.S., the U.K., Ireland, and Germany to be imported into Canada. This measure will help put many parents at ease. Still, most of the baby formula consumed in Canada is imported from companies, so any hiccups outside of Canada can impact our supplies, at any given time.

Shoppers Drug Mart in Vaughan, Ontario (Image: Field Agent Canada)

But most Canadians don’t know that Canada is indeed home to a large baby formula plant. In Kingston, Ontario, Canada Royal Milk, owned by China’s Feihe International, built a plant back in 2017. It is the largest baby formula plant in Canada by far. However, all its products are shipped back to China – all of them. The plant itself uses Canadian cow and goat milk. For any experts who understand how the Canadian dairy sector works, this is troubling.

Not only that cow milk is partially subsidized by Canadian taxpayers, but dairy farmers also have expensive government-sanctioned quotas intended to serve Canadians only. Supply management is about feeding ourselves, and nobody else. Supply management is considered one of the most protectionist policies we have in Canadian agriculture. But for baby formula, we produce for China, almost exclusively. Something is not right.

Selling to China is not really the problem. After all, China’s melamine scare in 2008 made Canadian dairy products all the more attractive. It’s hard to blame an industry for capitalizing on an opportunity. But this dairy is Canadian dairy. To get Canadians to buy into our supply management regime, and to produce what we need in Canada, Canadian dairy farmers have long argued we can’t ship milk abroad and grow the Asian market. Since dairy farmers have no incentive to grow any markets at all, we have allowed a Chinese-owned company to invest in Canada, only to ship our own food back to China.

Subsidizing and protecting our own milk production to serve other markets is not what supply management was designed to do when it was implemented more than 50 years ago. The milk sold to Canada Royal Milk should not only be off quota, but the facility should also be Canadian owned and operated so some of the focus would be on the Canadian market itself. Most ironic, due to trade barriers on both sides, the Kingston-based plant is only 30 kilometers away from the American border and can’t ship products to the United States. As such, Canadians are still reliant on imports, despite the existence of Canada Royal Milk. 

For Canadian consumers, having access to Canadian made baby formula would also be reassuring, but dairy farmers just don’t think about the market that way. Money is money, and who is being fed is totally secondary.

For Canada, this is truly our own baby formula problem. 

Video Interview: April Sabral Discusses Retail Leadership During a Crisis

Video Interview: April Sabral Discusses Retail Leadership During a Crisis
Video Interview: April Sabral Discusses Retail Leadership During a Crisis

April Sabral, Founder/President, retailu, discusses the importance of retail leadership during a crisis.

Sabral talks about how retailers responded during the pandemic with leadership and training programs, key lessons learned through this crisis, biggest challenges in the industry, and current trends in retail.

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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IKEA Announces Toronto Downtown Store Opening Date

IKEA Canada announces Toronto Downtown store will open on May 25
IKEA Canada announces Toronto Downtown store will open on May 25 (Image: Dustin Fuhs / Retail Insider)

Swedish home furnishing retailer IKEA has announced the opening of its first urban format store in downtown Toronto will be on May 25, 2022.

Update: Retail Insider has published a pre-opening walk-through of the new store.

The two-story 66,000 sq. ft. ‘IKEA Toronto Downtown – Aura’ is the first of its kind in Canada, which will see a smaller format store enter a downtown area. The store will be a cashless experience, which will see shoppers scan and pay for products using the IKEA app. It will also have multiple checkout lanes available on both levels.

Michael Ward

“Opening our first store in the heart of Toronto’s vibrant downtown core is an important milestone in our retail transformation to bring IKEA closer to where customers live, work, shop and socialize,” said IKEA Canada CEO and Chief Sustainability Officer Michael Ward.

“IKEA Toronto Downtown – Aura combines our home furnishing inspiration and expertise with omnichannel retail solutions in a small store format to uniquely meet the needs of downtown residents. We’re excited to welcome the local community to experience this new IKEA when we open on May 25.”

IKEA Downtown Toronto – AURA is almost ready to open: Photo: May 17, 2022 by Dustin Fuhs
IKEA Toronto Downtown – AURA (Image: Dustin Fuhs / Retail Insider)

The IKEA Toronto -Downtown Aura store will also feature a new food concept called “Swedish Deli”, offering grab & go food with the cook-at-home options available.

“People are at the heart of our business and we’re excited to welcome 150 co-workers to IKEA Toronto Downtown – Aura where they will have endless opportunities for professional growth and development,” said IKEA Toronto Downtown Market Manager Patrice Dreano. “Together, we look forward to helping create a better everyday life at home for Torontonians and providing long-term positive impacts to the local community.”

Almost ready to open: Photo: May 17, 2022 by Dustin Fuhs

This is the 15th IKEA store in Canada and will be adding to the GTA IKEA network, which includes four full-size IKEA stores, 15 Penguin Pick-up locations and eight Design Studios.

IKEA Toronto Downtown – Aura will be open from 10-9pm Monday-Sunday.

See below for more photos from the morning of Tuesday May 17th

Almost ready to open: Photo: May 17, 2022 by Dustin Fuhs
Almost ready to open: Photo: May 17, 2022 by Dustin Fuhs
Almost ready to open: Photo: May 17, 2022 by Dustin Fuhs
Almost ready to open: Photo: May 17, 2022 by Dustin Fuhs
Almost ready to open: Photo: May 17, 2022 by Dustin Fuhs

Menswear Brand ‘Psycho Bunny’ to Enter Canadian Market with 4 Stores: Exclusive Interview

Psycho Bunny CF Toronto Eaton Centre Rendering (Provided)

Menswear disruptor Psycho Bunny is accelerating its North American expansion with the opening of four locations in Canada this year as well as the launch of a localized Canadian website.

The brand’s Canadian website will launch in June and its first Canadian retail store will open in the CF Toronto Eaton Centre in Toronto on July 16. A location in Toronto Premium Outlets will also open in July with additional Canadian brick and mortar stores to follow later in the year with locations in the Yorkdale Shopping Centre in Toronto and CF Carrefour Laval in the Montreal area.

“We see our ecommerce sales in Canada growing in a meaningful way. As we continue to have this incredible rise in the US in awareness and growth through penetration in the US of true bricks and mortar, we’re seeing the awareness trickle over in Canada,” said Justin Cohen, Psycho Bunny’s Chief Commercial Officer.

Psycho Bunny CF Toronto Eaton Centre Rendering (Provided)

“A lot of us have done retail in Canada in the past. Our headquarters is in Canada and it’s probably for us the easiest, next market to penetrate just because of that. A lot of people within the organization have expertise here, and we think our product and where we’re taking our product is going to resonate really well with the Canadian market.”

The brand, which started in 2005, is a privately held company with offices in its founding city of New York and headquarters in Montreal. Amidst, and despite, the global pandemic’s impact on the retail industry, Psycho Bunny tripled its business and opened 20 stores across the US, it said. The brand now has 29 more US locations in its pipeline for 2022 for a total of 62 stores by the end of 2022.

Justin Cohen

In addition to its booming brick and mortar business, Psycho Bunny’s ecommerce more than doubled in 2021 compared to 2020.

Known for its reimagined classic menswear, including its trademark 4,000 stitch bunny-embroidered polos, the retailer said it “stands out in its commitment to marrying impeccable craftsmanship with saturated personality.”

Cohen said the brand will likely look to other Canadian markets in the future.

Psycho Bunny Construction at CF Toronto Eaton Centre
Psycho Bunny Construction at CF Toronto Eaton Centre (Image: Dustin Fuhs / StepstoMagic)

“Right now, we are looking at pockets where the brand is showing signs of interest and through that we are going to evaluate where we open and how we open,” he said. “In Canada, we might open multiple stores in a market before we end up expanding geographically.

“That has been our approach in the US outside of Florida. We are looking at one store per market for now. And we’ve really only sought to go after top locations – the top 30 malls in the US is basically what we’ve done.

“We may look at Calgary and Edmonton, and we may look at Vancouver in the medium term. We like to use indicators of markets that are similar, and obviously tracking our ecommerce and our wholesale business as well in all these markets.”

Cohen said the breadth of consumers in Canada is appealing for the retailer. The brand also has quite broad appeal amongst most demographics in the US. 

Psycho Bunny CF Toronto Eaton Centre Rendering (Provided)

When asked what motivated the brand to select CF Toronto Eaton Centre as the first Canadian store, Cohen said: “Like a lot of our stores, it’s about timing meets opportunity. We are very discerning about the locations that we choose. This location in CF Toronto Eaton Centre is exactly where we want to be – the centre is an elevated commercial concept. So it’s not the exact same concept our current stores have right now. It’s very connected to them but slightly tweaked. Our Yorkdale concept is going to be a flagship concept which is going to be somewhat disconnected from the CF Toronto Eaton Centre concept.”

The brand said that when searching for space within shopping centres, Psycho Bunny typically looks at the tenant mix including nearby complimentary full-priced premium co-tenants while avoiding being located nearby discounters. Foot traffic is also important.

Jeff Berkowitz of Aurora Realty Consultants represents the brand in Canada and negotiated the four store leases on Psycho Bunny’s behalf.

Since its founding in 2005, Psycho Bunny has experienced a full-scale brand evolution. Thirty-year apparel industry veteran Alen Brandman of Thread Collective Inc., an originating brand licensee, identified the brand’s potential growth early in its life cycle and purchased 100 percent of the operating rights and 50 per cent of the intellectual property rights in 2017. In 2021, Brandman acquired full ownership of Psycho Bunny, then in 2022, formed a leadership group along private investment firm BBRC, led by retail executive Brett Blundy, and Bertrand Cesvet, the former CEO and chairman of Sid Lee, explained the retailer.

Psycho Bunny CF Toronto Eaton Centre Rendering (Provided)

“The strategy from the onset has been quite clear for us – profitable growth through physical availability, anchored by a strong ecommerce experience and premium wholesale presence,” said Cohen. “We aim to do retail differently than it has been done before, and we are uniquely positioned to bring that vision to life. 

“The beauty about scaling in 2022 is that we aren’t encumbered by legacy systems or thinking – we get to build from scratch. Iterative improvements and quick decision making are core to how we operate. The brand will continue to evolve as we broaden our presence in North America and continue to deliver incredible quality products to our consumers in a way that makes them want to shop again and again.”

Consumers in Canada Changing Spending Patterns Due to Inflation: Study/Interview

A growing number of Canadians are saying rising prices are affecting their ability to purchase goods, according to a new survey by EY.

The EY Future Consumer Index Survey says 53 per cent of consumers feel that way and 61 per cent of them plan to save money for their future instead of splurging on non-essentials.

Other key findings from the survey include:

  • Over half of shoppers are pivoting to private label brands for fresh and packaged food;
  • 37 per cent of Canadians are prioritizing experiences over buying physical goods;
  • The rising cost of goods and services is impacting Canadians’ ability to purchase goods –  lower-income earners (81 per cent), middle-income earners (50 per cent) and high-income earners (35 per cent);
  • Canadians are spending less on key items including clothing (40 per cent), beauty and cosmetics (37 per cent), and big-ticket items (34 per cent); 
  • 61 per cent of consumers plan to save money for their future instead of splurging on non-essentials and are also seeking private label alternatives for fresh food (58 per cent) and packaged food (63 per cent); and 
  • 37 per cent of Canadians are prioritizing experiences over buying physical goods, pushing retailers to explore new and innovative ways to directly reach their target consumers.

“COVID plus inflation has driven a move toward people looking for simplicity and flexibility both in terms of how they want to use their time, the services they want to pursue, and in terms of the products they want to buy,” said Elliot Morris, EY Canada Consulting Partner. 

Elliot Morris

“As a retailer, being able to get access to the consumer has been very challenging over the last two years and it’s not going to get any easier because the consumer is going to continue to economize how they take in information, how they make purchases, how they experience brands and both inflation and their experience through COVID I think is going to make them continue to want to pursue this view of simplicity and it’s going to make it harder for brands and for retailers to access customers.”

One of the trends the retail sector is seeing is a shift toward more discount stores and stores with lower prices as well as thrift stores.

“One of the final shifts that consumers will make will be meaningfully switching banners. I think that what we already observe, people being willing to trade brands in terms of products, people being willing to trade down into home brands or private label brands, and people are now willing to travel further, and take on some inconvenience, to be able to shop for price or for different experiences,” said Morris.

“And of course that leads to a shift towards discount. But I think that in a more meaningful way, even outside of discount, you see big shifts in terms of where people are buying within categories and that I think is the shift that retailers need to pay attention to in addition to a move from more traditional into discount.”

Image: EY Canada

Morris said trust has never been more important. While the consumer is becoming more discerning, they are still buying. The way in which consumers are buying allowed retailers to become much more intimate with them because that consumer is buying either fewer things or being more choiceful about what it is that they purchase.

“And so the tightness of relationship is becoming more important. As we think about price alone, obviously that would push us going from traditional to discount. But if you think about it in terms of a more fulsome view of value, you look at programs like loyalty programs or you look at different channels to be able to reach consumers with, I think the intimacy is what retailers need to worry about and to think hard about and how to increase the intimacy with their consumer in addition to obviously how to make sure you’re delivering competitive prices,” he said.

In this environment with more discerning customers, customer service and the customer experience become even more important.

“Ensuring that you’re valuing the customer’s time, that you’re able to address the customer’s need, all plays into the customer’s view of both trust and the value that they perceive in the interactions with your brand and with your banner,” added Morris.

Lokesh Chaudhry, EY Canada Consumer Co-Leader, said the fabric of daily life for Canadians has shifted in many ways from where people travel and seek entertainment, to how they work and meet their needs. 

“These significant shifts, coupled with inflation, are driving consumers at all income levels to change their shopping behaviours and rethink purchase decisions,” he said. “To be relevant in the future and drive customer loyalty, companies need to better understand the growing range of consumer needs, eliminate pain points and quickly respond with the right offering at the right price.

“In line with the growing desire for simplicity and flexibility, the most appealing experiences will be those that are easy to access and take minimal time investment — that means more digital touchpoints, frictionless brand experiences and personalized consultations in the metaverse.”

Ryan Beck

Ryan Beck, EY Canada Consumer Co-Leader, said people are beginning to focus on the parts of their life where they feel they have more control, including how they use their time and money and how they can improve their health and mental well-being.

“The modest post-pandemic lifestyle that many consumers plan to live is one that puts a higher value on experiences, with over a quarter of Canadians pivoting to spend more on this category rather than physical goods,” he said.

Square Helping Retailers take the Complexity out of Cash Flow and Realize Opportunities

When it comes to running a successful retail business, there are a multitude of moving parts to consider, from the nuances involved in the buying of product and merchandise, to the importance of marketing and customer attraction and engagement. It’s a complex pursuit, requiring merchants, particularly those operating small- and medium-sized operations, to pay close and ongoing attention to a number of different components of the business. As a result of limited resources, this necessity often means that business owners are overburdened by the tasks at hand and left unable to run their businesses as effectively and efficiently as they could. However, by ensuring healthy cash flow, says Christina Riechers, Head of Product, Business banking at Square Banking, merchants can free up their time and redirect it toward the areas of the business that need it most.

“Cash flow is critically important,” she says. “When cash flow is not managed well, it can cause a lot of stress and anxiety for business owners which then permeates through the entire operation. Conversely, when cash flow is healthy and not a cause for concern or stress, business owners can make better business decisions, including better financial decisions, like purchasing inventory in bulk at a discount. Without the stress and burden of worrying about cash flow and whether or not there will be enough money in the bank to pay employees, merchants are also able to make better strategic decisions and focus more of their time and effort on other areas of the business, making enhancements that will lead to continued growth and success.”

Impediments to healthy cash flow

Though ensuring healthy cash flow within the business is easy enough to suggest to merchants, Riechers goes on to explain that there are a number of factors that often impede their ability to do so. However, she adds that there are also ways by which these impediments can be overcome, or at least alleviated, relieving some of the undue pressures that often result. The first impediment is the association between a slow or decrease in consumer demand and sales and the fixed costs that any business incurs as a direct result of their operation.

“Sales might slow unexpectedly from time to time,” she says. “Hopefully they never do. But fluctuations in demand and sales are a fact of doing business. What don’t fluctuate, however, are a business’ fixed costs. In light of this, I always encourage sellers to take a hard look at their fixed costs. Do you have contracts for things like payment processing or POS hardware that saddle you with fixed costs even in your slow season? Square started because we were adamant that sellers should only pay for what they used, which is why sellers who take payments with Square only pay a variable rate when they make a sale – no contracts, no fixed costs, no monthly fees.”

Closing the payment gap

Another way in which merchants are challenged in their efforts to maintain healthy cash flow, says Riechers, is the discrepancy in time between the moment that goods are paid for and when merchants receive payment for those products. It’s natural within a business, and to be expected, that there will be a gap separating these two pieces of the process. However, Riechers explains that leveraging relationships with suppliers and asking them to negotiate on payment may serve to close the gap significantly.

“Most often, a seller pays for inventory long before they’ve even had an opportunity to sell it to consumers,” she says. “This can often cause sellers headaches and confusion, resulting in cash flow mismanagement. To help solve for this, it might be a good idea for sellers to benefit from some of the stronger relationships that they’ve built with suppliers and ask them if they’d be amenable to negotiate a later payment date for goods. You might be surprised – some suppliers view their relationship with merchants as partnerships and are open to discuss more agreeable terms if it means moving more product, faster.”

Access to funds

Riechers goes on to explain that another obstacle in the way of merchants properly managing their cash flow is the lag that occurs after an item sells and when the seller has access to the funds. The reason for the lag, she says, are in limitations inherent in traditional payment processors. There can be few things worse for a merchant than waiting to be able to access funds that have already been earned, which is why Square has decided to do something about it in order to ensure that sellers receive funds in a timely manner.

“At Square, we noticed this as one of the major challenges faced by merchants when it comes to managing their cash flow,” she acknowledges. “To address the issue, we introduced two new products in Canada. With the free Square Card, a seller processes a sale and can instantly access that money using their Square Card. Or, if a seller prefers to have their sales proceeds go to their traditional bank account, they can use Instant Transfers to instantly send their funds to their bank account for an additional fee.”

Supporting the industry

It’s yet another way in which Square, whose suite of solutions and hardware make sure that payments accepted by a merchant are immediately synced with the rest of the business, seems to have the best interest of Canadian merchants at heart and serves as an example of the innovation that the company continues to develop and introduce for its merchants. And, according to Riechers, it’s an approach to payments that will continue unabated and qualities that have helped position the company as one of the industry’s most trusted providers of technology and payments processing solutions.

“One of our goals at Square is to enable sellers to achieve their targets and objectives by providing them with the very best tools and solutions available, ensuring greater flexibility for their businesses. We want to see merchants within the industry succeed and to continue growing. And we want to be one of their trusted partners helping to support that growth and success.”

For information concerning the ways Square and its suite of commerce solutions can help your business optimize opportunities for success and growth in an increasingly digitized world, visit https://squareup.com/ca/en

*Retail Insider partnered with Square for this content.

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In Photos: The Last Days of Hudson’s Bay at Yonge & Bloor in Downtown Toronto

Hudson's Bay Toronto 44 Bloor Street, May 15, 2022 (Image: Craig Patterson)

The Hudson’s Bay store at the northeast corner of Yonge and Bloor Streets in downtown Toronto shut permanently last week, and a bit earlier than expected. The store opened in 1974 as the retailer’s flagship until 1991 when a former Simpsons store at Yonge and Queen Streets was converted to the Hudson’s Bay banner. 

In an exclusive report in February, we announced that the store would be closing after almost 50 years at the iconic corner. The store closure was supposed to happen on Monday but one shopper we spoke with said that as of Friday, the store was almost empty so it was closed to the public earlier than planned. 

Hudson’s Bay had been advertising up to 90% off of merchandise in the store which drew crowds of customers. That included radio and other advertising. On Sunday afternoon we visited the building and potential customers were still trying to get into the store. Some indicated disappointment when they saw signage showing that the store is now permanently shut. 

Store Closing Signage at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Dustin Fuhs)

Last week Retail Insider spoke with a former HBC exec who said that years ago the retailer had been looking at potentially making the Bloor Street store into something of a ‘contemporary’ space like what Bloomingdale’s did with a store in New York City’s Soho area. Dual ownership of the Hudson’s Bay Centre where the store was located led to the decision not to renovate according to the source.  

In February we provided an overview of the Bloor Street store and its importance to the Hudson’s Bay Company over the years, and earlier this month we were the first to publish renderings of what landlord Brookfield has proposed to the City of Toronto in terms of creating a mix of retail and office space in the former Hudson’s Bay store. We’ll report back when we learn more.

See below for more photos of the former Hudson’s Bay store at 44 Bloor Street West in Toronto. Included are photos of the former restaurant that once operated upstairs and shut years ago.

Sunday May 15th, 2022

Closed Bloor Street Entrance of Hudson’s Bay Toronto 44 Bloor Street, May 15, 2022 (Image: Craig Patterson)
Hudson’s Bay Toronto at 44 Bloor Street is Closed, May 15, 2022 (Image: Craig Patterson)
Former cosmetics department on the main floor of Hudson’s Bay Toronto at 44 Bloor Street is Closed, May 15, 2022 (Image: Craig Patterson)
Former menswear department on the main floor of Hudson’s Bay Toronto at 44 Bloor Street is Closed, May 15, 2022 (Image: Craig Patterson)

May 13th, 2022

Retail Insider was privileged to have been provided the following selection of images from Michael Binetti, which included a number of sections of the store that were less visible to the public during the liquidation.

Former handbags and beauty area on the main floor of Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former 4th floor home/China department at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former home furnishings floor at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former home furnishings floor with 1970s floor tiles at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former furniture floor at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former furniture level on 5 at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former restaurant at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former restaurant at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former restaurant at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former restaurant at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former furniture floor at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former home/China department on the 4th floor at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former beauty hall and ‘Stripes’ merchandise area on the main floor of Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Former accessories area on the main floor of Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
The PATH Entrance for Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
The PATH Entrance for Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Another PATH Entrance for Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)
Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Michael Binetti)

Sunday May 8th, 2022

Bloor Street Exterior Entrance at Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Dustin Fuhs)
Store Closing Signage at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Store Fixtures For Sale at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Store Closing / Liquidation Signage at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Menswear during Liquidation at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
The vintage escalators were turned off as the bottom floor was already clear (Men’s department at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 Image: Dustin Fuhs)
Former Menswear at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Closing signage at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Menswear Vacated at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs). This was once the upscale ‘Hudson Room’ department for suiting from prestigious designers.
Menswear Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Menswear Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
The POS at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Main Floor at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Main Floor Jewellery at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Bloor-Yonge Street Entrance at Hudson’s Bay Toronto 44 Bloor Street, May 8, 2022 (Image: Dustin Fuhs)
Hudson’s Bay Toronto 44 Bloor Street, May 2022 (Image: Dustin Fuhs)

Retail Executive Roundtable Sparks Lively Discussion Concerning the Transforming Retail Experience

Retail Insider the magazine • Issue One

Amid all of the uncertainty and disruption that’s blighted the past couple of years, interrupting the way in which we do things, there is one undeniability: the fact that the retail experience is transforming. Driven by a confluence of impacts of the pandemic, the digitization of the world around us and evolving consumer preferences and behaviour, it’s a transformation that’s requiring retailers everywhere to re-examine, reassess and, in some cases, rebuild the experience they offer consumers. But who is today’s Canadian consumer? Where are they choosing to engage with brands? And what are they seeking to receive through that engagement? To answer these questions, and more, Retail Insider the magazine, in partnership with Snap Inc. Canada, gathered some of the brightest industry leaders together for the first of a series of ‘Retail Executive Roundtable’ discussions appearing within the publication.

Moderated by Snap Inc. Canada’s Retail Lead, Matt Bolivar, the dynamic conversation focused on the ever-evolving needs of the Canadian consumer and the strategies and initiatives that brands are developing in order to satisfy and exceed them. And, sharing forward-thinking and thought-provoking insights was a stellar list of participants which included Scott Arsenault, CEO, Ren’s Pets; Drew Green, CEO and President, Indochino; Meghan Roach, Chief Operating Officer, Roots; Rohit Thosar, Senior Manager, Digital Performance Marketing, Walmart Canada; Michael Ward, CEO and Chief Sustainability Officer, IKEA Canada, and Livia Zufferli, Consulting partner, Customer & Marketing, Deloitte Canada. What resulted was a conversation that Craig Patterson, Founder of Retail Insider Media Ltd., referred to as “highly engaging” and “incredibly informative”.

“This was an unbelievably impressive list of participants to involve in the first roundtable of its kind,” he says. “It’s a conversation that we initiated in order to create some amazing content for the first issue of Retail Insider the magazine. We partnered with Snap Inc. Canada in order to help us make this a worthwhile and meaningful endeavour. And, I couldn’t be more pleased with the way everything turned out. Matt, our moderator, was engaging and led the discussion extremely well. And the brands that we were able to involve are some of the leading, most innovative brands, in the country. It’s turned out to be one of many must-read articles within this issue.”

The Canadian consumer

The conversation began with the spotlight cast on today’s consumer, the ways in which they’ve been impacted by the COVID-19 global pandemic and how those impacts have influenced changes in their tastes and shopping behaviour. They are changes that are recognized by Drew Green, CEO and President of leading custom apparel retailer Indochino.

“The last couple of years have been incredibly tough for a lot of Canadians, presenting them with quite a bit of change to work through,” he admits. “As a result, we’ve noticed a significant change in the ways the consumer is interacting with our brand. There’s been a massive shift toward online. But the Canadian consumer still loves retail. They’re looking for an experience and want to have fun again. And they’re willing to pay for excellent experiences.”

Rohit Thosar agrees with Green’s sentiments, expressing excitement concerning opportunities around meeting the evolving needs of an experience-seeking Canadian consumer. However, he admits that availability of product has become a critical consideration of many consumers when shopping in the physical store environment.

“Along with a massive uptick in online consumer activity, shopping behaviour in-store has also been impacted by factors like supply chain disruptions,” he points out. “Today, it seems that there are three cohorts of Canadian consumers: the loyalist who will shop with their favourite brand no matter what; those who will explore substitute brands if products they are looking for are not available; and consumers who don’t want to spend time exploring substitutions and will leave for a competitor if they don’t find what they’re looking for.”

Expanding retail ecosystem

The focus of the conversation then shifted to the expanding retail ecosystem and the pivots that the digitization of the world around us has precipitated by businesses everywhere. Naturally, insights around growing ecommerce sales were shared and the required considerations that needed to be made in order to effectively respond to the sudden spike in online activity. Michael Ward, CEO and Chief Sustainability Officer at IKEA Canada, describes the transition and the opportunity that’s been presented to the brand.

“We went from having single-digit online sales to 30 per cent overnight as a result of the pandemic,” he says. “The fundamental work for us initially was in designing and executing a fulfillment network that would allow us to serve that increased volume and to continue growing in all the different channels. We also needed to build the digital infrastructure that would enable this shift. In addition, we wanted to make sure that we focused more on making the IKEA brand more accessible and our experience more convenient to meet the evolving needs of the consumer.”

Though the increase in sales may not have been as dramatic for Ren’s Pets, the company’s CEO, Scott Arsenault, acknowledges the shift, suggesting that it helped the brand sharpen its focus on its core customer.

“Ecommerce was not new to Ren’s Pets,” he points out. “But, when you’re looking at servicing the customer online, continuous improvement is a must in order to satisfy their evolving needs. With respect to email communication with consumers, we’ve put a lot of focus into providing something of greater substance and relevance to the consumer through increased personalization. In addition, we’ve spent time throughout the pandemic identifying our VIP customers and treating them as such with special rewards and offers.”

Omnichannel engagement

The group also spent some time examining the growing multitude of channels through which consumers can interact and engage with brands and where and how they are most effectively reached. Despite the number of channels available, however, Livia Zufferli, Consulting partner, Customer & Marketing at Deloitte Canada, says that any engagement with consumers should be driven by an understanding of them.

“Over the last few years in particular, there’s been a shift in Canadian media dollars toward digital channels,” she says. “However, it’s critical for Canadian retailers to consider their brands and leverage the insights of their current and desired customers in order to understand where to place their media and how to position their messages and content. A channel mix and plan should be developed based on knowing the audience and possessing an awareness of their lifestyle needs.”

Rise of augmented reality

After dissecting the Canadian consumer and the vast retail ecosystem that they can traverse while on their shopping journey, the panel of leaders offered insights concerning the technologies that are being leveraged in order to support their experience. Meghan Roach, Roots’ Chief Operating Officer, says that while there are, of course, numerous technologies being used and explored to enhance customer service and engagement, she believes that augmented reality is one that presents brands with seemingly boundless opportunity.

“Augmented reality will soon start to play an important role in helping certain brands enhance the service and experience that they provide for consumers,” she asserts. “Importantly, however, its use has to link seamlessly with our physical stores as well as our ecommerce platform and digital channels. It can help brands offer an experiential layer and aid consumers in virtually trying on products. There are a lot of potential applications that will continue to become more relevant as we move forward.”

These insights are but a taste of the full breadth of discussion enjoyed by these retail leaders during this dynamic roundtable. Retail Insider the magazine would like to thank its sponsor partner, Snap Inc. Canada for its support and contribution, Matt Bolivar for moderating the event and all of the participants for their tremendous insights. 

For the full Retail Executive Roundtable conversation, we urge readers to visit Retail Insider the magazine.