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Inequality Still Present in Corporate Canada as Retailers Mark Black History Month: Op-Ed

By
Sean Tarry
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For those who, for some reason, don’t already know it, February is Black History Month. Recognized in the United States, Canada and Germany, it’s a time set aside each year in order to observe and pay honour to the contributions and achievements made by the Black community within each of these countries, and toward the improvement and progression of the world in general. It’s a time that provides us all with the opportunity to salute some of the well-known names of the fight for equality and civil rights, including Dr. Martin Luther King, Harriet Tubman, Malcolm X and Rosa Parks, as well as some of the lesser-known figures, like Bayard Rustin, Dorothy Height and Claudette Colvin. Though Black history differs somewhat between the United States and Canada with respect to the turbulence and injustice that’s occurred within the two countries, it nonetheless serves as a necessary platform to celebrate the evolution of Canadian society with respect to racial equality, while also representing a reminder of sorts concerning the distance that we have left to travel. 

A business imperative

For the Canadian business community, it’s a month that’s come to signify a similar importance. However, it also tends to cast a focus on the broader context of diversity, equity and inclusion (DEI) within the world of corporate Canada. It serves to prompt retailers and other businesses within the country to take a critical look at their own DEI initiatives and efforts, identifying where they may be making positive gains, as well as the areas in which more concerted work might be required. They are initiatives and efforts that are applauded by many astute industry observers and analysts who recognize the necessity in undergoing these endeavours in order to not only do the right thing, but to elevate their brands through the expansion of creativity, development of perspectives and attraction of the very best talent. And, if recent statistics around the issue are any indication, there seems to be quite a bit of runway ahead of Canadian businesses to create a more diverse, equitable and inclusive workplace for employees.

According to a recent Osler report entitled 2021 Diversity Disclosure Practices: Diversity and leadership at Canadian public companies, there have been some gains made with respect to DEI within Canadian businesses. For instance, women now hold approximately 23.4 percent of board seats among Canadian companies and account for the filling of 39.1 percent of newly created or vacated board seats. In addition, members of visible minorities also made slight progress, making up approximately 6.8 percent of positions on Canadian boards. These are significant improvements that are being made as a result of the development and maintenance of policies within companies across the country. In fact, the report suggests that more than two-thirds (67.3%) of Canadian businesses have adopted such policies and guidelines, a number that increased from 64.7 percent in 2020. 

Eliminating inequities

Though this progress should certainly be acknowledged, there remain inequities within the walls of Canadian businesses. The report shows that, despite progress made by women, very little of it can be identified in the executive suite. In 2021, the proportion of women holding executive level positions increased by the barest of margins to 18.2 percent, up from 17 percent over the previous year. And, when analyzing the progress made by Aboriginal peoples and persons with disabilities, the uptick in results is just as meagre. Among over 2,200 board positions within the 316 CBCA companies that provided disclosure for the report, only 8 positions are held by Indigenous peoples, while the number of director positions held by persons with disabilities is just 9.

The ethical catalyst for Canadian companies to develop, nurture and evolve DEI initiatives and policies, and adhere to them, is clear: it’s simply a fundamental right for all humans, despite their race, creed, colour, gender, sexual orientation or identification, to enjoy equal opportunity to advance and progress within their jobs and careers. However, when viewing the issue through a business lens, the impetus to build a culture of inclusion is much more interesting and represents a means to build and strengthen brands and improve the quality of the work they do. When opening up the organization to the input and influence of many different perspectives and experiences, creating a tapestry of insights and innovation, barriers to thinking and creativity are removed, leading to a more holistic view of the market and the community of customers the brand serves.

Continuing our progress

Diversifying the talent that gains representation within the organization will also more accurately reflect the society in which it operates, attracting the attention of an increasing number of consumers who shop with brands based on their values and the things they stand for. And, it’s not just the attention of prospective customers that will yield impressive dividends for brands. Creating and promoting a strong DEI culture within the organization will also serve as a conduit for the best and brightest young talent out there. It may seem trite to even suggest, but when an employee feels welcome and comfortable within their workspace, and appreciated and valued by their coworkers and associates, it will be evident in the work they produce and dedication they show toward their employer.

It’s been suggested by a growing number of industry pundits that, in order for there to be any meaningful movement in the area of DEI within Canadian business, something of a change or shift in mindset must be made at the very top of organizations. There seems to linger an antiquated view concerning the issue. However, with a groundswell of importance building around DEI, one that continues to grow every day, and the recognition by more professionals of its criticality, it may not be long before the barriers to entry and progression are removed completely, and the idea of diversity, equity and inclusion in society and the Canadian business community becomes a given fact. Until then, however, thank goodness for Black History Month and the enduring contributions of the Black community toward ensuring that we continue fighting for equality and the rights of every Canadian.

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Canadian Retail News From Around The Web For February 16th, 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 24 hours.

Accessibility consultant ‘disappointed’ Calgary Lululemon store inaccessible despite Paralympic partnership (CTV)

‘The Grocery People’ Launches New Concept Flagship ‘Wholesale Market’ Store in Edmonton with Plans for Expansion

By
Mario Toneguzzi
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Image: Wholesale Market (The Grocery People)

The Grocery People have launched a new concept flagship Wholesale Market in Edmonton that could be the model for other similar store openings in Western Canada.

Adele Kostura, Director of Independent Business with Federated Co-operatives Limited which is the umbrella company for TGP, said the 56,000-square-foot store serves both foodservice operators and consumers.

“We’ve been in business of course in Edmonton for a number of years. The first thing that prompted us to look at a move was the ongoing expansion of the Yellowhead Trail, making access into our previous location really quite challenging. When we saw that, we knew we needed to make some sort of change and we thought it was a great opportunity to really expand our business and deliver a better experience for our customers,” she said. 

Image: Wholesale Market (The Grocery People)

The new store is located at 11628 142 Street NW. The previous location was at Yellowhead Trail and 149th Street. The company took over an existing building for its new store and underwent extensive renovations. 

“What you’ll see in Edmonton is a really interesting mix of standard retail product that you might see at any grocery store but then also some foodservice products. Bulk items, that sort of thing, that a chef or restaurants would use in food preps. So you kind of get both of those worlds coming together which is kind of unique,” said Kostura.

“Also in the new location we were able to include a really state-of-the-art culinary centre with industrial prep equipment, commercial kitchen. We’ve done some consumer chef demonstrations to help consumers understand products and how to utilize products and we’ll also use it for business reviews with our commercial clients to help them look at different options for their business and different products they might be able to use or different ways to use products in their business.”

The brand also operates the High Prairie Wholesale Market, TGP Cash & Carry Lloydminster, TGP Wholesale Kamloops, TGP Your Jasper Grocer, and TGP Your High Level Grocer.

Image: (L-R) Chef Chris McMaster, Kevin Hollinger, Sales Manager Foodservice, Paul Osterhaus, Fresh Supervisor, Alisa Yeoman, Sales Consultant Foodservice, Craig Lalonde, Sales Consultant Foodservice, Rob Farrell, Store Manager, Doug Robertson, Culinary Specialist

“We’re in here and we do think there’s absolutely an opportunity for these to be in other centres as well,” said Kostura of the new flagship model. “In Alberta, across Western Canada really. We don’t have any firm plans right now for next locations but we’ll be watching here to see what we can learn. But we do think there will be that opportunity.”

According to the TGP website in the late 1950s, two of Alberta’s independent grocers, Wilson Lee and Bob Cherot, recognized the need to develop an independent wholesale that put independent grocers in control of where they were going. Lee and Cherot brought 39 of them together in January of 1960, and formed Alberta Grocer Wholesale Ltd.

In 1967, Alberta Grocers acquired Sun Fruit Company, a fruit wholesale, and began operating it as a subsidiary. Then, in 1983, Alberta Grocers amalgamated with the foodservice company, The Grocery People, and adopted the name, realizing it was a better fit for a company that no longer operated solely in Alberta, it says.

In 1992, TGP became a wholly-owned subsidiary of Federated Co-operatives Limited, and the produce supplier to all Co-op stores across Western Canada. TGP began expanding its retail and foodservice base into Southern Alberta, Saskatchewan, Manitoba and Northern Ontario using FCL’s distribution centres in Calgary, Saskatoon and Winnipeg, according to the company.

Today, TGP operates a head office and state of the art, 437,000-square-foot distribution facility in Edmonton, a produce wholesale operation based in Calgary, and regional branch offices and warehouse facilities in Kamloops, Saskatoon, and Winnipeg – all of which support community based, family owned and operated retail stores and foodservice establishments.

“Consumers are always looking for value and this concept is really based on every day great pricing rather than the high/low of flyer advertising that you’ll see in a lot of retail grocery stores. Really making sure that you get that fair price every day,” said Kostura.

“The mix of product is quite unique and provides another value opportunity for consumers to be able to try some of those products they might otherwise not have access to.

“For smaller commercial operators, sometimes they don’t want the giant size of a certain product and they would have an option to then use a retail product that might better meet their needs and reduce the waste that they might see in their business.”

Upscale Menswear Retailer ‘The Helm’ Announces New Downtown Edmonton Flagship Store [Exclusive/Renderings]

By
Mario Toneguzzi
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Image: Helm

Despite some recent and current challenges for retailers in downtown Edmonton, entrepreneur Chad Helm is bullish about the future and in the process of building a new flagship store for The Helm menswear store.

The new store currently under construction, which will likely open in April, will more than double the size of its original existing store to 8,200 square feet on three levels in the newly-developed ICE District on 102nd Avenue and 103rd Street.

The move shows confidence in the heart of the capital city that has seen high-profile retailers such as Hudson’s Bay and Holt Renfrew exit the core in recent years.

“The deal with us is we’ve invested in the downtown core now for a decade. This was a serious conversation I was having with staff and family. Do we continue to pursue the downtown image, the downtown store, everything we’ve sort of worked towards? Or do we shift a little and move the store to a handful of other places that are still central and easily accessible to your customer and not downtown?,” said Helm.

Rendering: Helm

That was a conversation that went on for a while. Ultimately it chose to remain downtown because it’s where they built their clientele. There’s no doubt that times have been bad for Edmonton’s downtown core even before COVID with the decline in oil prices. That has shuttered a bit the vibrancy of the core. The path for the future became clear. Will we continue to see the downtown core suffer or is it going to rebound?

“I do believe it’s going to rebound and the investment in the downtown core for us was important because it’s people like us that facilitate that rebound. If we all turn our backs and say we’re never going to occupy an office tower again or no retail doesn’t work downtown, that creates a pretty negative environment. I don’t believe that is dead.”

The former Hudson’s Bay site is going to be redeveloped and it’s located kitty corner to The Helm’s new store. 

“I think long-term the outlook is actually quite positive the way that the city is shaping up downtown. Yes, at the current moment it does feel a little bit like we’re taking a risk but as I zoom out on the lens I don’t have the same jitters. I feel the downtown core should come around. It’s just gone through a moment. This has happened many times in the past.”

Helm opened his first store in the summer of 2012 on 104th Street in downtown Edmonton. 

“There was a lot of enthusiasm from the city but it was a steep learning curve for the first three years or so. But we’re proud to say that we’re closing in on 10 years in business,” he said. 

“It was and still is a cool street, multiple street front shops. Good vibe anywhere from bars to retail to coffee shops down here. We felt it was important to be part of a greater community versus just being in an area surrounded by similar types of retail.”

The initial store is 3,000 square feet. Everything was run out of that space. The website, social media, all the goods sold out of the space, some back office use. 

“It was sort of a mom and pop setup for the first five, six years. But since then we’ve grown. Not only our sales team and assortment has grown but also our marketing and communications team and our need for just more space overall. Our tailor shop. Hence the move into a new bright, shiny location.

“At the time, the store was I guess you could say traditional. We had 40 to 50 per cent of our inventory in tailored clothing and sportcoats and suits and dress shoes. Shirts and ties. We’ve adjusted our perspective into something that’s a little bit more progressive and more lifestyle focused versus just business.

“As a business we’ve been focused on, I hate the word luxury but it’s kind of the easiest word to use because it easily identifies us to the consumer. We are a luxury men’s clothing retailer and we’ve been chipping away at this slowly and it’s evolved into quite a thing at this point.”

Helm said the new store will be a very open and contemporary design, adding that it’s very similar to places a shopper would see in Midtown New York or Milan, Italy.

The main floor has a 2,600-square-foot open floor plan, another 1,400-square-foot mezzanine and then another 3,300 square feet on the top floor. 

“It’s got a massive opening that spans the entire front of the store. As you walk in, you’ll look up and you’ll see nothing but 35-foot ceilings and tons of windows,” said Helm. 

Invoking the Emergencies Act to Stop Blockades will Help Canadian Retailers Amid Supply Chain Woes: Charlebois

By
Sylvain Charlebois
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Ambassador Bridge (Image: Google)

In recent days, many Canadians watched in disbelief when protesters easily blocked many access points between the United States and Canada. For six painful days, this included the Ambassador Bridge, a key trade conduit between the two countries, forcing trucks to be rerouted towards Sarnia. Other border crossings were disrupted in Manitoba and Alberta. Many shipments were delayed, and some cargo had to be scrapped. Blueberries, greens – more waste and more costs to the industry and to consumers. And now, the Trudeau government is invoking the Emergencies Act.

Given how far things have gone, the Trudeau government has had to consider all options. Disrupting cities like Ottawa, Toronto, Montreal, Halifax, and other urban centers can be troubling for their citizens. But the risks are significantly different when trade between two countries stops. If supply chains are the backbone of our economy, the border is its spinal cord. The impact was immediate. Manufacturing plants were closing, and it took barely a few hours before the White House gave a call to Prime Minister Trudeau to share its concerns. Our food supply chain is messy these days, and the last thing it needed was more human induced logistical predicaments, created by the very disruptive truckers’ convoy.

If some didn’t know that the international border between Canada and United States was the focus for both economies over the years, now they know. Maintaining the longest border in the world open, peaceful, and disruption-free is no easy feat. It has taken decades to foster a spirit of interdependence between the two countries, especially for the agri-food sector. In the last year, Canada was the second largest export market for U.S. agricultural exports, totaling over $26 billion and accounting for 15% of total U.S. agricultural exports. At the same time, the United States imported over $30 billion worth of agricultural products from Canada. That border is busy and without it, the food security landscape in Canada would look quite different.

Economically, the impact of blockades will be inconsequential. Companies have a way of dealing with anything we throw at them, especially in food distribution. Empty shelves are bad for business and both importers and exporters will do anything not to see us leave grocery stores empty-handed. The damage, though, is beyond numbers. What may be impacted by blockades is reputation and trust. To be summoned, in a way, by Washington was nothing short of embarrassing. This is Canada, one of the most peaceful countries in the world.

As the smaller and less economically influential of the two trading countries, Canada has a lot more to lose. America, logistically, has more options. Blocking a border will have potentially long-term consequences. This may persuade the United States to reconsider strategic alternatives or change its stance on certain more sensitive trade issues, like softwood lumber and dairy. Canada may just have made a stronger case for “America First” advocates.

But consumers will be hurt the most. It is much too soon to know how Canada’s food affordability will be impacted by the unlawful blockades. But with many shipments being destroyed or delayed, and adding the increasing pressures related to fuel costs, we are expecting some food prices to potentially rise beyond what was predicted just a few months ago. Canadians are facing enough financial pressures right now. This added a layer which is simply not necessary.

Logistically, the concept of using driverless vehicles using autonomous technology for micro and large-scale highway freight transport has merit, more than ever perhaps. Some companies have had to cut production due to procurement issues caused by blockades. It has made some companies think differently about transportation across North America and getting rid of humans behind the wheel may be an option with more appeal now than before.

In the end though, blockades did happen for a reason. But for our trading partner the United States, it doesn’t matter what the reason is. Some damage was done. For our food supply chain’s sake, there’s nothing more disruptive than civil unrest. Nothing. Worse than climate change. Reputation and trust are damaged, permanently in some cases. No matter how we look at what is happening, Ottawa now has some serious diplomatic issues to address. So invoking the Emergencies Act is also about Canada’s reputation abroad.

Specialty Beer Retailer Tite Frette Announces Plans for Aggressive Location Expansion in Canada

By
Mario Toneguzzi
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Image: Tite Frette

Tite Frette is tapping into Quebec’s burgeoning microbrewing industry with an aggressive plan to establish numerous retail locations across the province.

Founded in 2018, the unique retail shop that specializes in selling only Quebec-made craft beers, wine and cider has grown to 40 locations with a target of adding about 15 more stores this year.

The company’s explosive growth has been facilitated and will be buoyed by its partnership with Square, the global software, payments and hardware solution for businesses of all types and sizes.

“The big difference with our stores is we focus on the artisanal beers – really the craft beer instead of the commercial beer,” said Karl Magnone, Tite Frette’s President and co-founder with Jérémie Poupart. “It’s 100 per cent Quebec and we have all the beers organized by style.

“So instead of coming in and having to try and find what you like, let’s say you like Blondes, they’re all in the same section. Then all of our staff are professionally trained. Kind of like a sommelier of wine but for the beer.”

The company’s name means ‘a cold one.’

“We currently have 26 stores and we’re opening up 30 stores this year and so we’re going to end at approximately 60,” said Magnone. “Within five years we want to reach 150 stores.”

Image: Tite Frette

All the stores will be within Quebec but the company is analyzing the retail alcohol laws right now in other provinces to see what possibilities may exist outside La Belle Province.

“I was head of sales for a real estate company and I also was a manager for a coffee franchise company in Quebec. So I had really nice positions that brought me to have a lot of experience within sales, management, crisis management but I really wanted to do something that was unique and that was my project. 

“One day I tasted a really unique beer  from a craft brewery and I really fell in love with the concept of having beers that were completely different. I started to do research to buy more of these beers and there wasn’t any store that was really specialized across Quebec . . . And when I did some homework I realized there were over 200 microbreweries in Quebec. There’s a huge market but no businesses capitalizing on the retail side.”

Also, the major commercial beer brands monopolized the key areas in a grocery store so no room is left for display of craft beers.

Tite Frette was launched in 2018 and three stores opened that year. The first store was in Magnone’s hometown of Granby. 

“We’re in small villages but we’re also in major cities. We’re pretty much everywhere. I’m looking at opening one in the Metro Station. We’re in every possible area that we can reach as many customers as possible. Our core mission is to increase market shares for the breweries and if we want to do that we need to go where the people are. We need to be beside the SAQ. So a lot of our stores are located right beside the government SAQ. People can go get their wine and then their beer,” said Magnone.

Magnone said the increasing popularity of craft beers in recent years is due to a number of factors. The first is pride. Consumers feel a sense of pride in buying a product that is locally made, hand-crafted by passionate individuals.

“I feel like, compared to wine, which is very limited to the grapes that you’re growing, you’re not going to start putting nuts or whipped cream or chocolate inside your wine, but beer you can literally put whatever you want in it. You’re going to ferment the sugars and the sugars and the yeast are going to create a very unique taste profile and you can really have fun with it. Compared to other alcohol, you’re not limited,” he said.

Image: Tite Frette

Also, taking our time tasting and savouring craft beer is more popular today. People prefer quality over quantity. 

The company started its franchise model last year when it had four stores and all the stores today are franchise owned.

Magnone said the company has been using Square’s tools and  services since its inception and that it helped Tite Frette pivot to online sales and home deliveries during the COVID-19 pandemic.

“When the pandemic crisis hit, we had to react quickly. We were very glad to have the all-in-one Square system because it allowed us, in a matter of only one week, to go online and to start offering home delivery to our customers. It’s literally what saved us, because if we didn’t have delivery, sales would have plummeted. Customers were able to go directly to the ordering website, and the inventory was directly tied to the inventory of each store, which made payment processing extremely quick and efficient,” he said.

“What really grabbed my attention at first was the Square aesthetic. It was really the most attractive system that suited our store, which has a slightly more luxurious feel than other similar stores.” 

Image: Tite Frette

Magone went on to say, “We needed a turnkey system that was all-in-one, where we didn’t need to buy different software or equipment. We wanted something that would be simple for both the customer and the guide, as well as for business administration purposes. We really wanted an easy system, and Square was perfect.” 

“One of the conditions for choosing our point of sale system was the ability to have a large number of stores, and Square offers us this ability. They have a record with other franchises throughout North America. Square allows us not only to have multiple stores connected to one parent company platform, but it also allows us to control inventory management, sales reports throughout the entire network, and to have a clear view of our stores’ performance in real time.”

“We use practically all the tools Square offers because they’re so efficient. We love the point of sale, the payment system for customers, and Square Register. We also use inventory management to make sure everything is perfect, and we also use Square Team Management for managing employees’ schedules. On top of that, we use the online sales platform and delivery service, and we use the Loyalty app for points to reward our customers. 

Magone concluded by saying, “It’s very important for us to reward loyal customers — we want to see how often the customer returns and the number of purchases. Having access to the real-time consumer habits of our customers helps us decide what type of products to offer in the store, what type of products to promote, and what type of product to recommend. It’s beneficial to have all this information, and Square provides it for us.”

To learn more about Square and Tite Frette, visit the Town Square featuring Tite Frette here.

*Retail Insider partnered with Square for this sponsored article.

Canadian Retail News From Around The Web For February 15th, 2022

By
Retail Insider
-
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 three days.

Saks OFF 5TH to Shut 2 More Canadian Stores in Calgary and Suburban Toronto

By
Craig Patterson
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Saks Off 5th at CF Market Mall, photo: Michael Horvath via Google Images

Retail Insider has been informed that Hudson’s Bay Company-owned off-price chain Saks OFF 5TH is shutting two more Canadian stores after we reported last month that one of the retailer’s Edmonton stores would be closing. Saks OFF 5TH will continue to run 15 stores in Canada for the time being according to the retailer. 

In Calgary, Saks OFF 5TH will close its 26,600 square foot store at CF Market Mall where it has operated since August of 2018. The store sits on a standalone pad on the property owned by landlord Cadillac Fairview. Saks OFF 5TH will continue to operate a store in the Calgary market at CrossIron Mills.

In Markham north of Toronto, Saks OFF 5TH will close its 26,275 square foot CF Markville store that opened in March of 2018. The store will be replaced by a location for French sporting goods behemoth Decathlon according to sources. Saks OFF 5TH will continue to operate several other stores in the Toronto market.

Saks OFF 5TH CF Markville. Photo: Chuan Chee via Google Images
Inside Saks OFF 5TH at CF Markville. Photo: Joey Ho via Google Images

Saks OFF 5TH confirmed to Retail Insider that staff at both stores set to close were informed of the closures prior to Retail Insider releasing this report. 

We reported last month that Saks OFF 5TH is in the process of holding a sale prior to the closure of its store at South Edmonton Common in Edmonton. Product not sold prior to the store’s closure will be moved to the Saks OFF 5TH location at CrossIron Mills near Calgary according to a source at the store. 

A statement provided by the retailer following our report last month said, “After careful consideration, Saks OFF 5TH has decided to close its South Edmonton location. Through the regular course of business we continually evaluate store performance and other factors, and, from time to time, may determine it necessary to close a store. We expect this store to close to the public in April 2022. Customers can continue to shop with us at Saksoff5th.com and at our other locations.”

“We are committed to offering support and assistance to our team impacted by the closings. Eligible associates will receive appropriate employment separation packages and transfer opportunities will be explored where feasible,” the statement went on to say. 

CF MARKET MALL, PHOTOS: DONNA MCTAGGART
Inside Saks OFF 5TH CF Market Mall. Photo: Kab Kbass via Google Images

Saks OFF 5TH entered the Canadian market in 2016 with plans for about 25 stores. Between 2016 and 2018 the retailer opened 18 stores in Canada and then halted the expansion. Some landlords said that the retailer had been struggling in terms of sales with some locations selling less than $100 per square foot annually. 

In Canada, Saks OFF 5TH currently has stores in the Vancouver, Calgary, Edmonton, Winnipeg, Ottawa, Toronto/Southern Ontario, Montreal and Quebec City markets. 

The retailer competes with other off-price retailers operating in Canada including TJX banners Winners and Marshalls as well as Nordstrom Rack which entered Canada with its first stores in 2016. 

Concerns Over Data Privacy Compliance as Retail Industry in Canada Accelerates Shift to Digital Channels [Feature]

By
Sean Tarry
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There have not been too many influences throughout the course of human history that have posed impacts as significant as those that have resulted from the advancement of technology. They are impacts that have only increased of late as we continue to ride a crest of digital acceleration that spans the world, touching every community, changing the way we live our daily lives. The most notable adaptations that have resulted can be seen in the ways in which we communicate and the modes we leverage to gather and share information. Supported by digital technologies and systems, the transformation that we continue to undergo is nothing short of revolutionary. For retailers and other businesses, the impacts have been felt throughout the entire organization, from supply chain and merchandising to human resources and customer service. However, the area of the business that is perhaps exposed to more implications than any other, says Ritchie Po, Privacy Practice Lead at Kobalt.io, is the processes by which data and information is collected and governed.

“The retail industry, and the world in general, has been shifting toward more of a reliance on digital technologies to help us do just about everything,” he asserts. “And this includes shopping. This shift has obviously accelerated as a result of the pandemic and the associated lockdowns that have occurred and social restrictions that have been put in place. The less that retailers and consumers have interacted face-to-face, the more orders have gone online, increasing the volume exponentially. And, although much of the industry has responded positively to these shifts, moving more of their business toward online channels, there were a number of retailers that were not fully prepared to go online, in particular small and medium-sized businesses. The big problem is that when implementing digital systems and components to help support the surge in online business, many weren’t diligent enough to review and understand all of the privacy aspects of the implementation. This results in an unawareness of how much information the organization is collecting from the customer and the safeguards that are necessary in order to ensure compliance to all of the legal requirements.”

Multiple jurisdictional regulations

Image: Kobalt Security Inc.

It’s an issue that, if not properly addressed and dealt with now, poses serious consequences to retailers and other businesses that are collecting data through their ecommerce systems and other digital tools. It’s an area of the business that Po says deserves as much attention from merchants as possible in order to navigate through what he refers to as a “new digitized world” and position themselves well to enjoy success going forward. However, there are many layers of complexity involved in the collection of data and the legal framework around governing the information. And, according to Po, they are layers of complexity that pose even greater risks to retailers that sell to consumers in multiple jurisdictions and regions around the world.

“The challenges and risks related to the collection of data when selling internationally are highlighted by the differing data subject rights and privacy rights between jurisdictions,” he says. “There’s sometimes a presumption among Canadians that because a store is operating within Canada that they only need to comply with Canadian privacy laws. However, it couldn’t be further from the truth. Despite the jurisdiction or country that a retailer or business is operating in, they must ensure that they comply with the data privacy laws of the countries and regions that their consumers live in. For instance, Europe has its own standards and legal requirements that need to be abided by when selling to consumers in those countries. And, California recently introduced another layer of privacy rights to its existing laws and regulations. These laws in different countries and jurisdictions might overlap in many cases. However, the challenge is in complying with all of the differences in regulations throughout the world.”

Evolution of legislation

Canadian laws and regulations around data privacy and rights are developed and enforced by the Office of the Privacy Commissioner of Canada which offers its Personal Information Protection and Electronic Documents Act (PIPEDA) as a national standard for privacy practices in the private sector. However, as Po points out, the European Union introduced its General Data Protection Regulation (GDPR) in 2018 – a set of digital laws that govern the data and privacy of citizens living in each of its countries. It replaces the previous Data Protection Directive which was introduced in 1995 during the infancy of the Internet. In addition, California, too, recently instituted laws under the state’s California Consumer Privacy Act (CCPA). These are but a couple of examples of the multitude of jurisdictional standards and regulations that are being developed by governments all around the world. And, as Po points out, laws and regulations within this new digital world are quickly evolving, forcing businesses to actively and consistently review and update the safeguards that they have in place to protect the data of their customers.

“Lawmakers and those involved in the development of regulations in Canada are always trying to modernize Canadian privacy legislation,” he asserts. “And retailers and other businesses are also constantly attempting to keep up with the pace of digitization, one that’s recently been accelerated, and the evolution of the related laws around data. Quebec’s Bill 64, which came into effect in the province a little more than a year ago, is a great example of this modernization of laws. It represents the biggest step so far in complying with laws and regulations under the GDPR, which is the gold standard internationally, and will likely serve as a benchmark for any future developments concerning Canadian data privacy laws.”

What retailers can do

Bill 64 requires all businesses dealing with customers who live in Quebec to come into compliance with its laws and regulations by September 2024. Po believes that it has the potential to propel Canadian legislation forward, recognizing a number of areas within the country’s data laws that still require strengthening. In fact, he refers to a memo recently written by Canada’s Privacy Commissioner, Daniel Therrien, which highlighted some of these lingering concerns. They include the inclusion of the right to erasure which ensures the removal of unnecessary information from a company’s records; the inclusion of stricter fines and penalties that result from a business’ inability to comply with laws and legislation, as well as the inclusion of greater detail around data sovereignty and its requirements. It’s an evolution and modernization of the laws that are challenging retailers from a compliance perspective. However, Po suggests that there are some things merchants can do to ensure they are in-line with the laws.

“There are some fundamental things that retailers can do in order to give themselves the best opportunity to keep up with the accelerated digitization of the industry as it relates to the collection and governance of data,” he says. “Conducting a privacy gap assessment is a really great exercise to undergo. Even if a retailer is only collecting a small amount of personal information, they often won’t know where the data resides. This is especially true of small and medium-sized businesses who are usually operating without processes by which permissions for the collection of data are locked down. So, it’s not just about the information that’s collected online, but the information that’s collected in the store as well at the point-of-sale. As part of this process, there has to be some top-down direction so that frontline staff understand their role and responsibilities in the appropriate collection of data and in obtaining the consumer’s consent. A gap assessment will allow a retailer to understand, from end-to-end, how the data is collected and how it’s used within the organization. This is a bare minimum as a place for retailers to start.”

Collaboration and comprehension

In addition, Po suggests that any retailer looking to really get a handle on data privacy legislation and layers of protections that are in place within their organization should appoint a Data Privacy Officer, on a consultancy basis in the least. Doing so provides an invaluable resource that the company can leverage to conduct a privacy impact assessment in order to better understand whether or not they’re collecting the most meaningful data or over-collecting information via their technology systems. And they can also guide with respect to the processes that are necessary in order to create efficiencies and comply with laws and regulations. He adds that seeking advice from legal counsel will also be incredibly useful in helping the business recognize where the risks are and ways to mitigate or deal with them. In fact, Po says that, in many ways, a great deal of collaboration is required within an organization to access the knowledge and understanding that’s needed for retailers to address the increasingly complex challenges around data privacy and maintain the necessary compliance.

“Data privacy can become a very complicated issue to address for any retailer. There are so many moving parts and differing regulations across provinces and countries. Tackling these challenges requires a lot of cooperation within the organization and with outside sources in order to accurately understand how to keep track of the data that’s being collected and ways to properly delineate it and strengthen their comprehension of the rights that consumers have in Ontario as opposed to Quebec or France or America or Singapore. Maintaining compliance with all of these different sets of laws and regulations at once, while ensuring that workflow and processes reflect that comprehension, can be a massive challenge for most small and medium-sized retailers to overcome. And, the further we move into this new digitized world, the greater the necessity will become for retailers and other businesses to make data privacy and compliance a top priority.”

Related Retail Insider Articles

Zara to Shutter Bloor Street Store in Toronto After 22 Years 

By
Craig Patterson
-
Zara at 50 Bloor Street West (Image: Craig Patterson)

Spanish fast-fashion retailer Zara will shut its downtown Toronto store at 50 Bloor Street West at the end of this month. The store has been open for almost 22 years and recently shifted its merchandise mix to a women’s-only store. 

The two-level store was the first in the Toronto market when it opened on April 11, 2000. The store includes a street level of 5,910 square feet and a lower level of 4,472 square feet. Until a few months ago, the lower level of the store was a dedicated menswear department before the entire store was converted to a women’s fashions  location only. 

Prior to being leased by Zara, a Marks & Spencer store operated in the space for several years. 

Zara at 50 Bloor Street West on February 14, 2022 (Image: Craig Patterson)
Basement level of Zara at 50 Bloor Street West on February 14, 2022 (Image: Craig Patterson)

The Zara store is located adjacent to Holt Renfrew which operates a 190,000 square foot store spanning four levels. The closure of Zara could provide Holt Renfrew the opportunity to expand its street level luxury boutique hall if the retailer so desired — about 15 years ago Holts annexed a former Eddie Bauer retail space in a similar fashion. Next to the former Zara store is an empty 2,650 square foot retail space that was formerly occupied by Fossil. 

There are currently several vacancies on the lower level of the Holt Renfrew Centre. Next to the Zara space, which was being cleared out over the weekend is a 3,480 square foot retail space formerly occupied by a Rexall drug store, and serval other small tenants have shut over the course of the pandemic. 

Zara continues to operate several stores in the Toronto market, including two downtown at CF Toronto Eaton Centre and on Queen Street West. Zara also operates stores across the country in major markets. The retailer’s first Canadian store opened in 1998 at Place Montreal Trust in downtown Montreal.

Main floor of Zara at 50 Bloor Street West on February 14, 2022 (Image: Craig Patterson)
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