The grocery store has been a staple in consumer lifestyle since the inception of the first supermarket. In that time, a lot has changed, including product offerings and the way people shop, and while the grocery store still remains a core destination for shoppers, customer shopping habits have changed drastically.
Today’s consumers look for transparency, authenticity and connection. Increasingly selective of the items they put in their shopping cart and hyper-aware of the ingredients their products contain, shoppers want to be assured the brands they’re using are just as committed as they are to being and doing better. According to a recent McKinsey survey, customers intend to keep spending more on products that improve their health, fitness, nutrition, appearance, sleep, and mindfulness.
For retailers, this means putting a strong focus on natural and organic products and offering a diverse selection of brands that will continue to draw customers, whether in-store or online. For brands, this means putting heavy emphasis on their unique product offering and driving emotional connections with consumers that will help set them apart and ultimately translate to increased shelf space.
The wellness market is saturated and fast-growing. Successful brands must be innovative, but also remain consistently reliable. Staying nimble and on the pulse of upcoming trends is important to meet changing consumer demands. In today’s tumultuous market, where supply chain issues are creating massive product delays and shortages, brands that are able to replenish products quickly have the advantage. Vertically integrated companies like Flow Beverage Corp can weather such vicissitudes in the market and avoid capacity issues.
According to a recent GlobalSustainability Study by Simon-Kucher & Partners, more than a third of global consumers are willing to pay more for sustainability as demand grows for more environmentally friendly alternatives. Successful brands will have a comprehensive strategy to address their carbon footprint, develop products that are safe for people and the environment, and support initiatives that help achieve net-zero goals.
While retailers have seen major changes to consumer shopping habits, especially in the past few years, there is more change to come. Retailers and brands must be ready, not only to meet changing customer demands, but to evolve along with their shoppers and provide optimal consumer experiences – and for grocery stores – to remain a core nexus of consumer lifestyles.
Maurizio joined Flow after an impressive 27+ year career working for Nestlé. During his tenure he assumed various positions of increasing responsibility around the world, including throughout western and eastern Europe, Asia, and the Middle East. In 2017 he was appointed CEO and Chairman of Nestlé Waters, a role that he occupied through the end of 2019.
He has dedicated the large majority of his career to the bottled water business, in which he significantly contributed to Nestlé Waters’ growth of iconic multibillion dollar brands such as Nestle Pure Life, Perrier, San Pellegrino, Acqua Panna and Poland Spring. He is also a pioneer in the global consumer health movement from carbonated soft drinks to bottled water.
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.
Canadian payment service provider Clik2pay has announced its new Clik2pay mobile app for small businesses. The first-of-its-kind product facilitates consumers being able to pay easily and securely directly from their bank accounts when making a purchase.
Mike Bradley
Businesses can download the Clik2pay app for free. It’s easy to use — a business can simply enter a customer’s name, mobile phone number, and amount owed into the Clik2pay app. Clik2pay then texts the customer a link, or the business can present a QR code for the customer to scan. The customer completes the transaction directly and securely from their bank account.
“The high costs of credit card payments, on top of the economic slowdown caused by the pandemic, is really hurting small business,” said Mike Bradley, Founder and CEO of Clik2pay. “Card-based mobile apps can cost 3-4% of the sale, require a separate device to read the card and may result in chargebacks to the business. The Clik2pay app helps businesses contain card costs and manage cash flow by providing guaranteed payments in near real-time.”
Bradley founded Clik2pay as an online payments service that facilitates bill, invoice and online payments directly and securely from customer bank accounts. Users can request payments easily by text message, e-mail, checkout button or QR code and are processed at a fraction of the cost of other payment types.
Image: Clik2pay
Remarkably, Clik2pay leverages multiple layers of bank-grade security and the highest standards for risk management by using one of the most secure money transfer services globally.
To get set up and to use the Clik2pay app, businesses register and link their bank account directly in the app and are ready to receive payment in a matter of minutes.
Transaction fees are 1% + $1 per transaction, with no hidden charges or extra fees. The Clik2pay app is available for all major mobile phones – at the App Store (Apple) and Google Play Stores. More information can be found by visiting clik2pay.com/small-business/.
Upscale Los Angeles-based fashion brand FRAME is looking at making moves into the Canadian market by opening stores. FRAME has retained a brokerage in Canada to lead the expansion.
Privately-held FRAME was founded in 2012 by Swedish entrepreneurs Erik Torstensson and Jens Grede following careers at creative agency. FRAME is known for its denim as well as cashmere and leathers used in fashions for women and men. The retailer also sells bags and footwear.
Celebrity endorsements have been part of the rise of the brand over the past decade. FRAME’s first product called Le Skinny de Jeanne,” was first worn by actors and supermodels including Miranda Kerr, Poppy Delevingne, Lily Aldridge, Kate Bosworth, and Karlie Kloss.
Image: FRAME GreenwichImage: FRAME Los Angeles, The Grove
The company’s first bag, a leather tote called “Les Second,” was modeled by Sienna Miller, Katie Holmes, Alessandra Ambrosio, and Doutzen Kroes.
In 2014 and 2018, FRAME’s founders were named to Business of Fashion’s BoF 500 list of people shaping the global fashion industry.
FRAME’S 15 current stores are located in upscale shopping areas. Markets where stores are located include New York City area (5 stores), Los Angeles (3 stores), San Francisco Boston, Dallas, Houston, Austin, Palm Beach FL. and Aspen CO. Next month, FRAME will open its first international store in central London. FRAME can also be found in upscale multi-brand retailers.
Aurora Realty Consultants recently announced that it is working with FRAME in Canada to secure potential retail spaces under the direction of Jeff Berkowitz. According to the Aurora Realty Consultants website, FRAME stores will ideally be in the 1,800-2,000 square foot range and will be located on either street fronts or in shopping centres.
Given the relatively low number of US stores FRAME has at the moment, Retail Insider would predict a modest Canadian expansion that could include storefronts in a trendy area in or near downtown Toronto (such as Queen Street West or Yorkville), Yorkdale Shopping Centre, and possibly a Vancouver store downtown or nearby and possibly a storefront in an upscale location in Montreal. We’ll follow FRAME further as it becomes established in the Canadian market.
The Yard at 12 Richardson Street (Image: Dustin Fuhs)
Being a franchise owner of a brand has become an increasingly popular option for many Canadians these days despite the ongoing challenges of the COVID-19 pandemic.
Sherry McNeil
Sherry McNeil, President and CEO of the Canadian Franchise Association, said franchises are a crucial part of the Canadian economy, contributing more than $100 billion per year and creating jobs for more than 1.9 million Canadians.
“What many don’t realize is that this sector also accounts for a substantial, if not most, of the small-businesses in the country. The pandemic has been devastating, but it has also shown us that having the support of a franchise model can help make businesses more resilient,” said McNeil.
Gary Prenevost
Gary Prenevost, a franchise matchmaking consultant with FranNet and a member of the Canadian Franchise Association board, said many people look around to become franchise owners but they only look at one business.
“And they miss so many opportunities when they only look at one,” said Prenevost. “So we introduce three or four and we coach them all the way through the research. It’s a free service. I get paid by the franchisor. So essentially executive recruiting applied to franchising.
“We’re seeing with the pandemic that people are re-evaluating their priorities. What are their whys? They’re looking at their employment scenario differently. They’re looking at a longer term picture. Do I want to keep doing this? How many times do I want to do this career transition?
“I call a job a one to three-year strategy. If you can go longer than three years, you’re fortunate. And I call a business a three to 10-year strategy. Three years is a very short time in business ownership. Most people are looking for a longer term. So more control, more flexibility. Money is number four or five for our clients right now. It’s more about the quality of life and being purpose driven – being more aligned with purpose.”
The following are top trends in franchising for 2022 compiled by the Canadian Franchise Association:
Home Sweet Home: With more people working from home due to the pandemic and a shift in workplace culture, there is expected to be a huge demand for franchises connected to the home, in particular in the home improvement and beautification space, as homeowners continue to look for ways to make their existing home, or a new space, more functional;
Aging in Place: Canada’s population is aging and people are living longer. With more and more people looking to age in place in the comfort of their own home, the need for franchises specializing in making seniors more comfortable has skyrocketed;
Education Concepts and Business Coaching: As many children these past two years have gone to online learning due to the pandemic, it has created a high demand for tutoring and supplemental education facilities. Business coaching has also become important in providing education and support to individuals who are interested in exploring self-employment as a career option through franchised business ownership;
Food Focus: Many food franchise models have thrived over the past few years. Healthy eating and dietary alternatives have become popular choices for consumers. Technological advancements and the need for social distancing have also played a role in what the future of food franchising will look like, with companies providing automated self-service shopping and the next evolution of grocery markets with their state-of-the-art retail experiences; and
Pets and Pet Supplies: With people spending more time at home and the need to support mental health, there has been a huge surge in pet adoption in the last few years. With this spike in pet ownership comes a necessity for pet-friendly franchises as well as dog daycare and grooming services.
Prenevost said it’s important for potential franchise owners to look at need-based businesses as opposed to want-based businesses.
“Things that no matter what the economy does, no matter what the pandemic does, these are services that are in demand. So we think about home improvement as an example. One of the strongest areas. Just because there’s a lot of demand,” he said. “I love the pet industry.
“If you can’t execute the brand promise, it doesn’t matter how strong a brand is, you’re not going to make it work. Hence, the importance of modeling. People look at themselves and what do I bring to the table? What are my primary resources? Finances, time and transferable skills are the big ones. The trend category once you’ve got that then which of the trends can I leverage that these skills can serve that industry.”
There have been some interesting trends in demographics for franchise owners, he added. Years ago, the vast majority of FranNet’s clients were middle-aged men in transition. Now, women are about 35 per cent of the company’s clients. Also, in the past two years, he’s seen a pattern of more husbands and wives working together. Another trend is people in their late 20s where the bank of mom and dad help them get up and running as franchise owners. And there are those people who don’t want a lifetime of careers but want to create their own stability.
Moose Knuckles store at CF Toronto Eaton Centre (Photo: Moose Knuckles)
Growth and expansion. They are the objectives of many who enter into the world of retail and represent the end goal of just about every strategy that’s developed within the industry. However, the difficulties involved in achieving these objectives can prove to be a lot more daunting than most realize. And, attempting to do so while maintaining the integrity of a brand’s original vision and its philosophies around retailing can seem next to futile. But despite the challenges inherent in growth, as well as those that have been brought about by the COVID-19 global pandemic, it’s exactly what Moose Knuckles – Canada’s exceptional luxury outerwear brand – is currently undertaking with aggressive plans to expand its current network. And, according to Co-Founder and current Chief Marketing Officer, Ayal Twik, they are plans that are supported by the company’s recent announcement of a new bold corporate strategy, and its penchant to preserve the creative edge that Moose Knuckles has become known for amongst its loyal community of customers.
“Noah and I founded Moose Knuckles and brought it from near zero to where it is today,” says Twik, referring to his Co-Founding partner and the company’s Chief Product Officer, Noah Stern. “It’s an achievement that we’re really proud of. However, in order to help the brand grow further, taking it to the next level, we’re really pleased and excited to have recently brought in some amazing talent that we’ve been able to learn and benefit from. And as we continue to scale, we’re going to need people within the company who understand through their experience what it means to grow. And, we need people who understand the value of maintaining creativity and are not afraid to take calculated risks. It’s been an incredibly exciting journey and process to this point. And we’re really looking forward to continuing with our growth plans, expanding both here at home as well as internationally.”
Corporate appointments
Left-to-right: Noah Stern, Victor Luis, Ayal Twik (Image: Moose Knuckles)
As Twik explains, in order to help Moose Knuckles achieve its goals, he and Stern brought in some talent. And, it’s some amazing talent, indeed. Terence Bogan joins the brand as its Chief Merchant, having already excelled in similar roles with Barneys New York, Holt Renfrew and Urban Outfitters. Named to the position of Vice President of Women’s Design is former Tom Ford and Burberry designer, Joseph McGee. And, partnered with as CEO, and charged with leading the brand’s global vision, is the former CEO of Coach and Tapestry, Victor Luis, who has also invested in the company to become a significant partner. It’s a bold move that’s been made by the company. But, as Twik explains, it’s a move that, given the individuals who were appointed to these positions, makes perfect sense for the brand. And, he adds, they are appointments that represent a real signal of intent on the part of Moose Knuckles to take the next step as a company.
“Victor, Terence, Joseph and others bring so much talent, experience and knowledge to the company,” he asserts. “They’ve all worked at massively successful brands and have seen growth and expansion firsthand. It’s something they all have in common. But, each of them also possesses a deep appreciation for creativity, which is what the Moose Knuckles brand is anchored to. Their expertise is going to be critical in allowing us to create and innovate while scaling. Noah and I are just two modest Canadians trying to make it on the world stage. And it’s so beneficial to have great leaders around us who have been there before and know how to do it. I have learned so much just being around our amazing team.”
Incredible growth
With offices in Montreal, New York, Milan and Shanghai, and currently operating a network of 34 stores comprised of permanent and pop-up locations throughout North America, Europe and Asia, Moose Knuckles has enjoyed tremendous success to this point. Having not even celebrated 15 years in business, the brand has risen to the upper echelon of the luxury outerwear category. And having just opened new stores at Toronto’s Eaton Centre and a pop-up at the Rideau Centre in Ottawa, as well as Main Street locations in Montreal, Chicago and Boston, it seems the brand’s growth strategy is rolling out quite smoothly. Moose Knuckles’ wholesale business is also substantial, with product distributed in over 30 countries within premium retailers, including Selfridges, Holt Renfrew, Saks Fifth Avenue, Isetan, and Lane Crawford, to name a few. However, with a still burgeoning legion of fans and flourishing customer-base around the world, Twik’s confident that there remains a lot of untapped potential for the brand to further increase its presence in even more markets. And, he says, the company’s approach to growth, behind the leadership of Luis, will continue to be driven by consumers of the brand.
“We continue to grow really quickly,” he says. “And, much of our growth through the years has been pretty organic. We tend to grow where we see demand, allowing our consumers to dictate to us where we should be opening stores, leveraging data and information concerning sentiment based on our wholesale business, hits on our website and visitors to our Instagram account. And when we see that our consumers are reaching out to us, we tend to grow in those markets. The U.K. is a growing market for us and we plan to open a flagship over there within the next 12 to 24 months. China is obviously another huge market for luxury brands where we already operate six stores with a focus on growing that number rapidly. South Korea, too, represents a big opportunity for us where we also want to continue expanding. But, as I mentioned, we like to keep this process extremely organic. We’re not often going to open a store in a market that doesn’t know who we are. It’s all about building a community for us and allowing that community to guide and direct our strategies with respect to growth.”
Genuine differentiation
Moose Knuckles Montreal (Image: Moose Knuckles)
Twik goes on to explain that approaching the company’s growth in this way, by maintaining an entrepreneurial spirit, ensures that the journey for he and Stern, and the entire team around them, remains fun and exciting. Afterall, they are characteristics of the brand that have helped propel it to the status it enjoys today as one of the fastest growing luxury brands worldwide. They are also traits, according to the brand’s Chief Marketing Officer, that are borne of an honest and genuine approach to fashion, one that differentiates Moose Knuckles from most of its competitors, serving as a catalyst for its ever-increasing appeal both in Canada as well as internationally.
“Moose Knuckles has really resonated with a number of consumers, particularly among a younger demographic,” he points out. “We decided from the start to take a bit of a different approach when it comes to marketing the brand. We’re very real and authentic and don’t tend to take ourselves too seriously. Afterall, we’re creating and producing fashion which we perceive as an artform. But it doesn’t have to be pretentious. That message, that kind of irreverence and cultural provocation, has really appealed to a certain group of consumers. And, the fact that we make amazing garments that are super-functional with a creative edge really serves us well. It’s a combination of our quality and our approach to marketing that’s set us apart from other outerwear companies and has helped us grow internationally.”
Driving brand excitement
The trajectory that the brand has enjoyed of late is nothing short of meteoric, posting significant double-digit year-over-year growth for the past five years. In fact, the company’s rise has been so swift of late that it experienced nearly triple-digit growth in direct-to-consumer sales, in addition to extraordinary growth of more than 75 percent in China in 2021 alone. These numbers are representative of incredible success, despite the time they are generated. However, when considering the fact that they were achieved during a global pandemic, the results become that much more impressive. Though the company faced a number of serious challenges related to the supply chain over the past couple of years, spending significantly more on ensuring product was able to be distributed throughout the world, Twik points to the accelerated digitization that’s occurred during this time and today’s digital-savvy consumer as positive forces of its growth.
“It was pretty scary at the start of the pandemic,” he admits. “But I’m super-proud of the entire team for the way we handled everything, allowing us to continue growing. We were able to do this, withstanding much of the impacts of the pandemic, because of our younger audience who are extremely adept digitally. As a result, our digital business really picked up, allowing us to reach more customers in more markets where we don’t currently operate. There’s so much runway left for us as a brand with respect to the growth of our community, which is really built primarily around lifestyle, and reflecting that lifestyle through fashionable apparel. Building the brand in this way has allowed us to sell just as many non-outerwear pieces, like ballcaps, t-shirts, sweatshirts and hoodies, as we do outerwear pieces. In fact, our Moose logo baseball cap is one of the best-selling skus in the company. And, we’ve also executed a lot of fun collaborations with different creatives and artists recently, including Telfar, Eckhaus Latta and Jenn Meyer, and we have a lot more planned for the year ahead. Driving that kind of excitement around the brand and providing our audience with an incredible experience, both in-store and digitally, is going to be key going forward.”
Remaining true amid expansion
Moose Knuckles store at CF Toronto Eaton Centre (Photo: Moose Knuckles)
When discussing Moose Knuckles’ global growth strategy, Twik is sure to underscore just how exhilarating the journey has been for he and Stern to this point. And he emphasizes their desire to remain true to the brand’s original vision, retailing philosophies and approach toward fashion. It’s something of a noble path that the company continues to navigate, along with the challenges inherent in a fast-transforming retail landscape. And, as Twik recognizes, it’s a journey that Moose Knuckles has only now begun to embark upon in full.
“Although our rate of growth over the last number of years has been quite rapid, Moose Knuckles is still a relatively small company. Essentially, we want to take everything that’s great about the brand – our creativity, honesty, irreverence and innovation – and expand on it to a larger audience in markets where there’s room for us to continue growing. And, what’s perhaps most exciting about our expansion and what we’re doing at the company is the fact that we already have a foothold in Canada, the United States, Europe and Asia. Now it’s just about unleashing the brand throughout those markets. And it’s about being true to our creativity, the functionality of our garments and the Canadian craftsmanship that has always helped to grow the brand. Despite the fact that we may not take ourselves too seriously, these are things that we are very serious about and elements of the brand that we’re extremely proud of. And they are principles that will continue to drive Moose Knuckles forward well into the future.”
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.
Montreal-based Dispatch Coffee has opened a new cafe in Downtown Toronto, making it the first expansion outside of Quebec for the brand known for its sustainable coffee served in three Montreal locations.
Chrissy Durcak
The new Toronto location is at 390 Bay Street replacing a storefront for JJ Bean.
“We are growing the brand over time,” shared Chrissy Durcak, Founder of Dispatch Coffee. “Our current focus is on the Quebec and Ontario markets, continuing with both physical and digital retail and a strong integration for the customer experience across the two channels.”
The initial Toronto location will be taking on a Financial District market which has seen significant change throughout the pandemic, having lost a significant percentage of its office workers and tourists. With a larger number of local customers, the brand has adapted a 7-day a week strategy, which will appeal to the 9-5 Bay Street crowd in addition to the customers who would visit on weekends.
Partnerships have been created to establish a well-rounded offering, which includes Greenhouse Juice and Daydream, Canada’s first Sparkling Water infused with hemp extracts and adaptogens. The brand will also be partnering with local suppliers for sandwiches and salads in the future.
Dispatch Toronto (Image: Dispatch)
Dispatch Toronto (Image: Dispatch)
Dispatch Toronto (Image: Dispatch)
The brand started as an iced coffee delivery service in 2012 and transitioned into Montreal’s first coffee truck. The current lineup for the brand includes the Bay Street cafe and three Montreal locations, with Saint-Laurent Boulevard, Saint-Zotique Street and McGill University.
Dispatch also has an ecommerce business that sells whole beans, instant coffee, brew kits, equipment and merchandise.
Dispatch Toronto (Image: Dustin Fuhs)Dispatch Toronto (Image: Dustin Fuhs)Dispatch Toronto (Image: Dustin Fuhs)Dispatch Toronto (Image: Dustin Fuhs)Dispatch Toronto (Image: Dustin Fuhs)
Upscale Toronto-based women’s fashion brand SMYTHE has opened its first standalone storefront in Toronto’s affluent Rosedale shopping area. The beautiful boutique space is an embodiment of the brand and more locations could open according to SMYTH’s co-founders.
The new 1,250 square foot store is located at 1116 Yonge Street, replacing previous tenant Aesop. The new SMYTHE store features a front area housing fashions and a back area that acts as a private gathering place and flex area. The aesthetic for the store was developed in collaboration with interior designers, Ashley Botten (Ashley Botten Designs) and Tommy Smythe (TOM).
Andrea Lenczner and Christie Smythe founded the SMYTHE brand in 2004 with a goal of creating the perfect women’s tailored blazer. The brand now carries a range of women’s ready-to-wear items and the brand now also has a new fragrance in partnership with perfume brand Fueguia 1833.
Click image for interactive Google mapSMYTHE Toronto (Image: Patrick Biller)
SMYTHE Toronto (Image: Patrick Biller)
SMYTHE Toronto (Image: Patrick Biller)
The Toronto store is the only physical space to carry the brand’s capsule collection SMYTHEHOUSE, which is described as being a “collection of archetypal SMYTHE silhouettes reimagined in seasonless fabrics and colours.” The collection is also available online.
For years SMYTHE has had wholesale distribution in Canada as well as globally. According to co-founder Andrea Lenczner, opening a Toronto store allows SMYTHE to showcase its wares in its “purest” form while embodying the brand and getting face-to-face feedback from consumers. The store design and curated fashions within reflect SMYTHE’s brand DNA she said.
The store is located in a “community” rather than a busy shopping centre. The community feel is something that the duo decided was important for the launch of SMYTHE’s brick-and-mortar expansion.
SMYTHE Toronto (Image: Patrick Biller)
SMYTHE Toronto (Image: Patrick Biller)
SMYTHE Toronto (Image: Patrick Biller)
SMYTHE Toronto (Image: Patrick Biller)
The goal is to augment SMYTHE’s existing distribution which includes prestigious multi-brand retailers including Nordstrom, Holt Renfrew, Saks Fifth Avenue and Neiman Marcus.
More SMYTHE storefronts could open in Canada and beyond. Co-founder Christie Smythe noted that in Canada, the Calgary and Montreal markets sell well while in the United States, the New York City, Los Angeles and Nashville markets are showing significant promise and in the future, SMYTHE could look at opening standalone stores.
Aurora Realty Consultants represents SMYTHE under the direction of brokers Jeri Brodie and Jeff Berkowitz who are helping lead the store expansion with strategy and lease negotiations. According to Aurora’s website, the ideal SMYTHE storefront would be between 1,000-1,500 square feet and be located in upscale shopping areas near home furnishing retailers, fitness and cafés.
