Video Interview: Wrestling Legend Bret Hitman Hart Talks About Branding
Wrestling legend and icon Bret Hitman Hart discusses the importance of branding.
He talks about how his brand came about, what he stands for, who he aligns with from a business perspective and why, and how the moniker Hitman came to be.
Hart was at a media event for Romero Distilling Company in Calgary which set a Guinness world record for the largest Cuba Libre cocktail.
The Video Interview Series by Retail Insider is available on YouTube.
Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior National Business Journalist with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.
Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.
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.
Outdoor Summer Market - Robson Experience Package in partnership with Landmark on Robson (Image: Robson Street Business Association)
There have been some interesting periods throughout the storied history of retail – moments in time, from recessions and depressions to rebuilds and renaissances, that have challenged the resolve of merchants and sparked innovation and creativity. However, it’s not likely that people have bore previous witness to such a cacophony of social, political and market turmoil as the one that exists today. It’s presenting those operating within the industry with a host of challenges to address and overcome if they have any ambition to achieve revenue and growth over the coming months and years. And, according to industry expert and Founder of Inception Retail Group Inc., George Minakakis, in order to do so, retailers and brands are going to need to draw from a number of different disciplines.
“There’s a war happening in the Ukraine,” he recognizes. “Inflation has gone through the roof. The pandemic, which is not quite under control, continues to cause problems and issues around the world. Stagflation is a definite risk. Shrinkflation is catching on, forcing consumers to pay a lot more for a lot less. When you put all of these converging issues together, it’s incredibly problematic. And so, how do retailers respond to this amalgam of challenges and difficult circumstances? They have to be artists and scientists. And they also have to be financial gurus in order to pull everything together and make it work. In short, it’s going to require smarts and ingenuity in order for retailers to compete and succeed going forward.”
Smarter marketing
One of the ways in which Minakakis suggests that retailers can be smarter is with respect to the marketing and advertising that they develop. He says that one of the greatest mistakes that any brand can make during inflationary times is to pull back and reduce advertising. It’s a tactic employed by retailers amid slower economic climates in an effort to minimize and streamline costs for the business, with marketing and advertising often being evaluated as less of a priority investment. However, according to Minakakis, it’s a function that may in fact serve a greater strategic purpose during challenging economic times.
“It’s often a bit of a knee-jerk reaction by companies amid inflationary periods to cut back on their marketing and advertising,” he explains. “But in many cases, it’s one of the absolute worst things that they can do. In fact, what they should be doing instead is becoming smarter with their advertising and increasing their focus locally. During economic downturns, brands need to develop better, stronger offers and incentives that will bring traffic through their doors, whether that’s physical or digital, in order to attract more revenue. They need to rethink their offers and reengineer how they’re structured to compete at the highest level. Success going forward will require a lot of smarts and savvy and a real compelling reason for customers to visit their stores.”
Planning for the worst
Minakakis goes on to explain, however, that not even the smartest and savviest of retailers can know more than they know, meaning the industry can’t be completely sure of the nature of challenges that lie ahead. He believes that the inflationary issues and supply chain challenges that are being faced by retailers and brands all over the world will linger for some time longer, adding that prices are not likely to ever come back down again. It’s a set of circumstances that poses considerable challenges for retailers vying for a piece of the consumer’s spend and compete in such a turbulent and uncertain market. However, in order to effectively and efficiently comprehend today’s market dynamics and respond to them, the seasoned industry expert suggests that the development and maintenance of a scenario planning toolkit will become more valuable than ever to organizations that employ them.
“I learned very early on in my retail life that any great corporate and brand strategy is supported by solid scenario planning that can help the organization identify risks and plan appropriately for them. The idea is to protect the company’s assets and health, preventing negative happenings and events from impacting it too severely or avoiding them altogether. And, the very best, most effective scenario planning will help brands recognize the opportunities that almost always come along with risk and adverse situations. And it’s up to the brand then to seize the opportunities that they’ve dedicated planning and resources toward seizing. It’s perhaps going to serve as the most important and effective tool for retailers and brands going forward, allowing them to look at their businesses just a little differently, preparing and enabling their operations to withstand future disruptions in order to maintain success and growth despite the circumstances.”
KITS Announces over 31,000 pairs of Eyeglasses Manufactured and Delivered in May 2022 (CNW Group/KITS)
Vancouver-based eyewear manufacturer KITS recently hit a new monthly record producing more than 31,000 pairs of eyeglasses in May which was more than double the 15,000 pairs it manufactured and delivered in May 2021.
Since its launch, KITS has manufactured and delivered over 350,000 pairs of eyeglasses.
Joseph Thompson
“We are thrilled to achieve these results without requiring hundreds of brick-and-mortar retail locations,” said Joseph Thompson, KITS co-founder and COO. “The KITS online-focused business model allows us to pass on these savings to our customers.”
The company was founded in 2018 by Thompson, Roger Hardy and Sabrina Liak.
KITS is primarily an online business but it does have one retail location in Vancouver that is more of a community flagship store on Kits Beach in Kitsilano.
Thompson’s background was with Amazon.com in Seattle running a couple of the retail groups there. The company was always intrigued with optical because it felt that glasses and contact lenses were an underserved market. After some investigation, it found that what Roger Hardy had started previously with Coastal Contacts, which is known as Clearly in Canada, was really the most Amazon-like optical retailer in the world. It sold in 2014 to Essilor.
Kits at Yew and Cornwall in Vancouver, BC (Image: Kits.ca)
Kits at Yew and Cornwall in Vancouver, BC (Image: Kits.ca)
Kits at Yew and Cornwall in Vancouver, BC (Image: Kits.ca)
“And so Roger and I stayed in touch and thought it would be great to start up a business together. We continued to look at the optical industry and thought there was a lot of good that we could do in the industry, a lot of work to be done,” said Thompson.
“About eight out of 10 adults require glasses or contact lenses just to get through the day and that number is growing. But the price of glasses just keeps going up. So we set out to build an optical company with more selection, unbeatable value, and the best convenience in the industry. And to do that we built an optical lab right here in Vancouver. Whereas most retailers over the last 10 years have been offshoring the manufacturing, we knew that if we had our manufacturing lab right here in Vancouver we could control the quality, we could control the cost, vertically integrated all the way through and pass that savings and convenience on to customers. That’s how we got started.”
The company said about 30 per cent of revenue from frames delivered in May 2022 came from returning customers.
“We are excited to reach the 1,000 pairs of glasses per day milestone in May” said Hardy, KITS co-founder and CEO. “To reach this level while reducing marketing spend on eyeglasses month-over-month is a further testament to the power of word of mouth, and customer satisfaction with our offering. Net Promoter Scores in the optical category are consistently below 30. Achieving an NPS of over 80 on our KITS eyeglasses continues to validate that our direct channel delivers the most efficient and satisfying experience for customers and inspires them to rave about the experience to others. This is evident in the thousands of comments we see from customers online and through social sharing, a key driver of our success.”
Thompson said KITS makes a pair of single-vision, prescription glasses in about 10 to 15 minutes in its vertically-integrated lab.
Image: Kits.ca
Image: Kits.ca
“And we get that into the carrier network right away so it’s in the customer’s hands within a day or two,” he said.
The company has customers coast to coast in Canada as well as a business in the US.
“But we’re growing most rapidly in Canada for sure. We serve customers in every province or territory over the last year and they’re all growing. The benefit of a digital footprint is we can reach customers across the country whether it’s through their insurance or whether they find us on site. We can get a pair of custom-made prescription glasses to them anywhere within a few days – or contact lenses.”
Yesterday’s mall was a place that acted as a shopping destination for consumers.
But the mall concept has evolved over the years and the mall of tomorrow will become more of a hub of daily life consisting of a social gathering place, food and entertainment, fulfillment and logistics, discovery and recreation – and of course shopping.
John Crombie, Executive Managing Director, Retail Services, Canada, Cushman & Wakefield, who gave a presentation on the topic at the recent Land & Development Conference in Toronto, said in his report that In 2015, 72.7 per cent of a mall was retail. By 2020, that had shifted with retail decreasing to 65.8 per cent.
Rendering: Simons at Halifax Shopping Centre
John Crombie
“You’ve got to look at it historically where the mall originally was. The landlord owned it, rented the space to a tenant, a retailer, and then the retailer dealt with the customer. It was very linear in terms of its arrangement,” he said.
“I think now, and this is where technology has certainly come into play, and how landlords need to look at the business differently, the landlords now need to be and have been more involved with understanding the customer base in as much as the retailer understands the customer base. A lot of it has to do with marketing their properties. If you’re going to be attracting retailers, you have to understand who your demographics are, the customer profiles and then you want to ensure getting the right tenant mix. That there’s complementary retailers and there’s a lot of cross sales opportunities.
“Landlords need to get more engaged that they’re as much in the customer service as the retailers and it’s creating this environment that’s appealing to them. It’s as simple as having events which is obviously a great draw of business from Mother’s Day to Christmas events and Santa Claus, to having areas where people can enjoy times together and realizing that food is becoming a huge component of that.”
Lined with publicly accessible, diverse open space and a bosque of trees, the pedestrian promenade is a unique landscape feature which creates a connection between Etobicoke Creek and the new urban centre. (Image Courtesy of BDP Quadrangle / SvN Architects + Planners)
Crombie said landlords also have to pay more attention to the food mix in their properties.
Crombie’s presentation, What Lies Ahead For Retail Real Estate In Canada: A Look at the Current Market & Future Predictions, outlined the following predictions for the future of retail:
Tenant mix will shift to more non-retail uses and food;
Omni-Channel is the future for physical stores;
Upbeat on revenue growth for Canadian retailers in 2022;
Better efficiencies and technology in stores;
Long live the automobile in a post COVID world;
Shoppers will shift more spend to secondhand products;
More retailers will sell into the metaverse world; and
Revival of experiential retail.
Also, Crombie said that by default we’ve seen the shift in malls. While many retailers are all right sizing, they can be as productive in a smaller footprint. We’ve also had the demise in Canada and the United States of department stores with Hudson’s Bay being the sole remaining Canadian traditional retailer.
“And so as landlords, you have to look at that old dumbbell. A department store anchor on each side and shops in between. Well, without department stores what do you do? So you’re forced to look at smaller boxes or to eliminate that and move towards things that will drive people to your shopping malls to create that (foot traffic),” said Crombie.
“Unfortunately with e-commerce nipping at retailers’ and landlords’ sales, and that’s a big concern for them, how do they drive more traffic into the malls. They have to be much more understanding that they’ve got to be as much of a traffic driver as the retailers are a traffic driver.
“The best thing about retailers and landlords is that they have an ability to be innovative and try new things. Some things don’t work and some things do work. The pandemic as we all know has been the big accelerator for a lot of these changes. I still think the idea of a shopping mall to cater more to the last mile delivery, we need to do more of that in what’s happening in the malls. I think you’ll continue to see a huge growth in that area. The buzz word is omnichannel. From a landlord’s perspective, they also need to think more omnichannel.”
Crombie said the industry has missed out on the excitement of shopping in the last couple of years during the pandemic. That needs to be reinvented.
Marché Central (Rendering: QuadReal)
Also, one of the trends is mixed-use for shopping malls by adding multi-residential homes. And that will increase the asset value of those properties. The malls of the future could also have senior housing on their properties.
There will be more fitness centres as well as more drive-thru food and coffee establishments.
“About a year ago people weren’t talking about the metaverse and it was something that really wasn’t addressed and never really thought of. I can tell you that in the last six months everybody seems to be talking about it,” said Crombie. “In the metaverse world there’s people actually buying virtual real estate. There’s a lot of people in the gaming world and living virtual worlds in the metaverse and 2.7 billion playing it. This plays into the omnichannel. The metaverse is really just another extension of the omnichannel.
“It is hitting everybody’s radar screens.”
Crombie said experiential retail is very, very important.
Forever 21 Metaverse Shop City (Image: Forever 21)
“This is where back to being lifestyle architects as owners of retail properties we need draws to bring in (foot traffic) and there’s things you just can’t do online,” he said. “Experiential retail is the way to do it. It is definitely not going away and it’s nice to see.” He cited the Friends immersive exhibit at the Yorkdale Shopping Centre as an example of that.
Crombie also said short-term spaces will also be a trend. There were a record number of retail closures in 2020. That created vacant retail space, particularly in secondary and tertiary malls. Direct to consumer brands have been filling up the space as well as independents.
And Crombie said there’s a growing trend in high-end second-hand goods being sold through consignment.
“We see a huge growth area in that over the next couple of years,” he said. “There are issues that a lot of malls don’t allow second-hand products coming in there but I think retailers have got to realize that there’s an advantage to having some of these in there and the landlords are going to see some real growth in that,” he said.
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.
Video Interview: Summer A Critical Period For Canada's Restaurant Industry
Matt Davis, OpenTable Canada Country Director, discusses the importance of this summer for the well-being of Canada’s restaurant industry.
Davis talks about online reservations versus customer walk-in, the surge in international cuisine, how restaurants are expanding to be lifestyle brands, and the global guide Michelin coming to Canada.
The Video Interview Series by Retail Insider is available on YouTube.
Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior National Business Journalist with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.
Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.
While Canadians continue to feel the harsh pinch to their pocketbooks with rising costs across the board, that’s not impacting their appetite to spend money at retail stores, restaurants and bars in the country.
Recently, Statistics Canada reported that consumer inflation rose 7.7 per cent year over year in May, which was the largest yearly increase since January 1983. The federal agency also noted that the Labour Force Survey found that average hourly wages rose 3.9 per cent year over year in May, meaning that, on average, prices rose faster than wages in the previous 12 months.
Yet consumers are spending more today than before the pandemic.
StatsCan data indicates that retail sales in April 2019 were $51.429 billion, rising to $60.721 billion in April of this year. Sales at food and drinking establishments rose from $6.087 billion in April 2019 to $6.921 billion in April of this year.
So what gives?
CF Toronto Eaton Centre (Image: Dustin Fuhs)
Michael Kehoe, a commercial real estate broker with Fairfield Commercial Real Estate in Calgary and a spokesperson for Consumer Real Estate Canada, said retail sales and consumer footfall at Canadian shopping, dining and entertainment venues are robust across the country to date in 2022.
Michael Kehoe
“Many regional shopping centres are enjoying double-digit sales increases as consumers are back with a vengeance as things have normalized after the COVID-related restrictions over the past two years,” he said. “This past Spring was a period of optimism, and we are likely headed into a summer of continued free spending and indulgence for many Canadian consumers.
“Moderate levels of consumer confidence and optimism are likely to continue during 2022 as world events, high energy prices, inflation and other concerns may be top-of-mind in the media, but it seems that these factors appear to not be affecting consumer behaviour in a negative way at this time.
“It is the best of times in the worst of times and retailers, restaurateurs and other entrepreneurs have adapted their business models in these post-pandemic days to suit ever-changing market conditions and Canadian consumer preferences.”
“After being unable to enjoy life with the pandemic, going out it’s no surprise it was going to take some consumers longer to adjust to some normal routines. But these routines cost more today than they did a year ago and even before the pandemic,” he said. “I would like to see the data on the consumers that are out spending. I would not be surprised that credit card debt and especially fast credit granting and almost free money with buy now pay later are likely fueling spending as well. A number of people I know had their credit card limits increased without asking for more credit.
George Minakakis
“There is no question in my mind that most consumers under 40 are not thinking about the implications of high inflation, after all they were not born yet since the last inflationary period like this one. And they have no context on how this can hurt financially and psychologically. And when I hear higher revenue numbers versus a year ago, I want to know what their sales were last year and how much has inflation impacted that sales growth and their costs. I am not convinced that all growth is as profitable as it used to be. Growth in restaurants should be double-digit as many were restricted in their operations last year. If you back out inflation it could be single digits. That’s not healthy.
“Is there a day of reckoning coming? Absolutely! If you can’t make those credit card payments it will be a problem. I also believe that buy now pay later will come back to haunt retailers as that could shrink up as things get tougher in the coming months. One of the problems is that a younger generation of consumers and retailers are too optimistic. They may think that inflation is their grandparents’ or parents’ problem from a generation gone by. However, all it will take is two to three purchases with buy now pay later plans to break the most inexperienced and optimistic consumers from spending further. Couple that with 50-60 per cent of Canadians saying they are a couple of paychecks away from not being able to pay their bill. I expect plenty of pain to come.”
Yorkdale Shopping Centre in Toronto on July 3, 2022. (Image: Craig Patterson)
Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail, said we are at an unusual time from an economic and consumer behaviour standpoint. A period not seen for a few decades if ever.
Bruce Winder
“Inflation has roared through the world’s economies due to several factors including rising commodity and raw material costs – war in Ukraine, etc.- , rising freight costs – although I hear these are starting to level off- , wage increases and other input costs. At the same time economic growth has been muted and we find ourselves in a state of stagflation. Yet we are seeing consumer spending take flight in a few categories. Why?,” he said.
“I think a number of factors are contributing to this dynamic. After being restricted for two years, consumers can finally travel again, and they are making up for lost time. Also, with several white-collar workers being asked to return to the office, at least part of the time, they are spending on a refreshed wardrobe. Although one can argue that government stimulus supports have been spent, Canada’s unemployment rate is extremely low and supply and demand effects within the labour market have increased wages – but not enough to keep up with inflation as we are seeing more in the way of unionization and labour unrest. From a restaurant perspective, I think a number of people are sick of eating at home and want to get back out and socialize like they used too. Also, as interest rates rise, some consumers have given up on home ownership and are living it up in the short term.
“There are significant differences between customer segments within retail also. If you are a low-income consumer, you are limiting spending and buying more private label where possible. You are also deferring discretionary spending until things pick up again. If you are a more affluent customer, you are still able to enjoy many of the luxuries you had before the pandemic and although real estate and equity assets have lost some value, your disposable income remains high.’
When you take into consideration our current inflation rate nearing eight per cent, any sales increase numbers we are seeing need to be adjusted for rising prices and should be also viewed from a unit perspective, he added.
“From a retailer perspective I think we will see a contraction in retail unit sales but not necessarily a contraction from a retail dollar perspective. Most retailers have passed on input cost increases to retail prices, and then some in some cases, to protect margins/make up for lower unit volume. Value retailers within the dollar segment and the discount grocery segment will continue to thrive while middle retail will take a dive. Luxury retail will remain strong. Look for discounts on excess inventory within middle retail as chains mark down product overbought during the supply chain crisis felt during 2021. We will also see more retailers close doors as government commercial supports have stopped and small to medium sized retailers quietly shut down, with or without formal bankruptcy proceedings. New retailers will emerge to cater to the new post pandemic normal,” said Winder.
“E-commerce has taken a bit of a holiday from the growth enjoyed during the pandemic as customers rekindle their love affair with in-store shopping for a little while. This will reverse a little in 2023 when e-commerce begins to slowly start to grow again but not as fast as during the pandemic.”
New Balenciaga flagship at 92 Yorkville Avenue in Toronto on July 5, 2022. Photo: Craig Patterson
Kering-owned luxury brand Balenciaga has opened one of its its largest storefronts in North America at 92 Yorkville Avenue in Toronto. It’s also the first location for the brand in North America to feature a new distressed look that was recently unveiled with Balenciaga’s flagship store opening on New Bond Street in London.
The new Toronto store spans about 7,000 square feet over two levels in a prominent retail space once occupied by a Diesel store. The look of the Balenciaga store is “raw and dishevelled” with exposed concrete walls and flooring. Smooth floors in the former Diesel store were sandblasted to create a more industrial look, and even doors in the store’s dressing rooms were intentionally ‘scratched’ to create a distressed look.
The main floor of the store houses bags and accessories at the front with separated sections for women’s footwear and ready-to-wear at the back. An exposed concrete staircase leads to the second floor which houses men’s ready-to-wear as well as bags, accessories and a large footwear area. The south-facing retail space will be flooded with natural light on sunny days.
Front of the new Balenciaga flagship store at 92 Yorkville Avenue in Toronto on July 5, 2022. Photo: Craig Patterson Main floor of the new Balenciaga flagship store on Yorkville Avenue in Toronto on Tuesday, July 5, 2022. Photo: Craig Patterson Main floor women’s bags and accessories, photo: Craig Patterson Women’s ready-to-wear on the main floor. Photo: Craig Patterson
Being a global flagship store, Balenciaga’s latest designs are featured in the new Toronto store including a range of rare and hard-to-find items.
On Tuesday at noon the store quietly opened to the public. On Saturday July 9, a more formalized opening will take place which will include Champagne service and the store will be giving out red carnations, founder Cristobal Balenciaga’s favourite flower, which is something that Balenciaga did for the opening of its London New Bond Street store in London this spring.
For the time being, Balenciaga is keeping its roughly 2,000 square foot ‘world of’ concession at Holt Renfrew at 50 Bloor Street West, located a stone’s throw from the new Yorkville Avenue Balenciaga flagship. Balenciaga also currently operates a concession at Holt Renfrew in Vancouver housing men’s and women’s ready-to-wear as well as bags and footwear in a single ‘world of’ space.
Main floor looking towards the concrete stairway. Photo: Craig Patterson Close up showing exposed concrete on the stairwell. Photo: Craig Patterson Second floor area with elevator and seating. Photo: Craig Patterson Second floor dressing rooms with distressed doors. Photo: Craig Patterson
The Yorkville Avenue flagship is Balenciaga’s second standalone storefront in Canada. The first opened in December of 2019 at Toronto’s Yorkdale Shopping Centre in an impressive space spanning about 4,700 square feet with just over 3,300 square feet of retail space. The look of the Yorkdale store is very different than the new Yorkville Avenue flagship.
Balenciaga will continue with its Canadian expansion with two standalone stores set to open later this year in Vancouver and Edmonton.
Several other high-end retailers in Canada carry Balenciaga. Saks Fifth Avenue’s flagship at CF Toronto Eaton Centre in Toronto currently features an area for bags and accessories and womenswear and men’s collections are also available. Rumours are circulating that Balenciaga could pull out of the store following three other major luxury brands including Louis Vuitton, Dior, and Saint Laurent that exited the store months ago ahead of a store renovation.
Second floor men’s shoes and ready-to-wear. Photo: Craig Patterson Second floor men’s footwear overlooking Yorkville Avenue. Photo: Craig Patterson Second floor men’s ready-to-wear, photo: Craig Patterson Second floor men’s bags/accessories. Photo: Craig Patterson
Nordstrom’s Vancouver flagship features a Balenciaga accessory boutique on the main floor as well as a dedicated women’s Balenciaga boutique space on the women’s floor. Balenciaga footwear can also be found at Nordstrom’s stores in Toronto and Vancouver.
According to the Q1 2022 Lyst Index (the most recent at press time), Balenciaga was ranked once again as the world’s most popular brand while Gucci was ranked second. Balenciaga is also having an ongoing fashion moment — the brand returned to haute couture after 53 years last year, launched a Fortnite collaboration, and teamed up with Kanye West on the launch of his Donda album. Last year the brand also showcased its fashion collection in cartoon format at Paris Fashion Week via popular television program ‘The Simpsons’.
Yorkville Avenue is shaping up to become a significant luxury address for Toronto and more brands are on the way. Some names will be revealed at later dates and already there’s chatter that brands including Reformation and Zadig & Voltaire have already signed leases on the street.
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.
