CF Chinook Centre in Calgary Undergoes Major Revamp with 35 New, Relocated, or Renovated Tenants in One Year [Interview]

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September 13, 2023

CF Chinook Centre in Calgary is one of the country’s busiest and most productive malls and it continues to evolve and change to meet the growing needs and desires of local and regional consumers.

Darren Milne, General Manager of Chinook, said there’s been quite a number of new tenants along with renovations and relocations in the past year.

“For some context, we have 240 tenants right now so to have 35 new, relocated or renovated tenants in a year is quite significant,” he said.

Here’s what’s happened since November 1, 2022:

12 new tenants: Athleta, Token, Stuffies, Herschel, Mejuri, Jo Malone, Glambar Bazaar, RW&Co, Nike, Alo Yoga, Crepe Delicious, and Uniqlo;
13 relocations with a new store build out: Bentley, Call it Spring, Peloton, Chatters, Birks, Pandora, Jack & Jones, Stitch It, Torrid, Victoria’s Secret, Maxime’s, Zumiez, Bell; and
7 renovations: Kiehls, Footlocker, L’Occitaine, Le Creuset, Michael Hill, Call it Spring, Burberry.

Still to come by the end of this year is Swatch as a new tenant, the opening of the new Zara expansion and renovation and a renovation at Ben Moss.

Uniqlo Signage at CF Chinook Centre (Image: Mario Toneguzzi)

Recently the big buzz at Chinook has been the frenzy around the opening of the Uniqlo store on August 25.

“The response to Uniqlo has been huge. The day they opened as Uniqlo reported, they had 2,000 people in line. They had a lineup pretty much the entire day and so it was about a 90-minute wait to get into the store the entire day,” said Milne.

“That was the Friday and then even on the Saturday they still had a line for people to get in and their sales and traffic have been consistent ever since. It was really clear that Uniqlo was a tenant that Calgarians wanted to have and they obviously have been supporting them that well.”

Milne said there are a couple of reasons why so many new tenants are coming to Chinook.

“If you think about it in the context of COVID the industry as a whole saw a lot of bankruptcies. That was probably good in the sense that a lot of companies were able to clean up their balance sheets and then come out of bankruptcy in a stronger position,” he said. “We’ve been a beneficiary of them being the first choice for tenants when they want to come to Calgary.

“The second piece of that is not only are we the first choice but we’re having more national and international retailers who are expanding into Canada. So if you think about that, Alo Yoga making a move out of the U.S. into Canada. We were one of their first stores that they wanted to get open as well. And sometimes because we have such high occupancy we can’t always get the tenants in on the same timeline they want to be in. But we still generally find a way to have them here as a tenant.

“Uniqlo was the same. They wanted to be here earlier and we just needed to do a whole bunch of movement in order to create space for them. I think we’re just seeing a lot of demand for the Centre as a result of both the performance of the shopping centre and the fact that more retail companies are looking to do stores and either grow within Canada or come into Canada.”

Jeff Berkowitz of Aurora Realty Consultants represents Uniqlo in Canada and negotiated the Canadian store leases, including the new Calgary location. SAJO design-built the Calgary Uniqlo store store.

Nike at CF Chinook Centre (Image: Mario Toneguzzi)

Milne said sales productivity at Chinook over the past year has grown exponentially.

“It’s been really, really strong. In part I think because we’ve had all these new tenants and they are tenants who are in demand. In part because Calgarians specifically still have a good level of disposable income and are looking to come and do their shopping here. Traffic continues to move up and continues to be really strong as well,” he said. “Sales are outpacing traffic growth.

“We’re always thinking about what the future looks like in terms of sales and traffic but we still feel really positive about the Calgary market.”

Milne said the shopping centre expects, probably in the new year, to announce a couple of new tenants. Also in 2024, there will be more “right-sizing” of tenants with more relocations.

“When you start to look at just the economic impact of that construction, you think about the 35 stores that have been touched here in the last 12 months between new stores, renovations or relocations, the construction value is significant and the number of jobs that creates is significant. It’s really positive,” he said.

“I would say in the near term the next big launch at Chinook will be when Zara reopens. They’re expanding in place and almost doubling in size. So that’s going to be a big store that will be open here before the end of the year.”

Future Swatch at CF Chinook Centre (Image: Mario Toneguzzi)

With the departure of American retailer Nordstrom from the Canadian market, Chinook Centre like other major malls in the country suddenly had some huge vacant real estate space.

“Nordstrom just disclaimed the lease in late in July. So it’s only been a few months that we’ve actually known we were going to get the real estate back. So we’re actively planning for it. There’s nothing to announce on it yet but we’ll continue to push that forward and plan to have a tenant there that Calgarians are going to want,” said Milne.

“I don’t mean to sound like it’s one tenant or two but I think we’ve got some thoughts on what that could be. We just haven’t settled on a direction yet.”

Additional Photos from CF Chinook Centre

Uniqlo at CF Chinook Centre (Image: Mario Toneguzzi)

Athleta at CF Chinook Centre (Image: Mario Toneguzzi)

Pink at CF Chinook Centre (Image: Mario Toneguzzi)

Victoria’s Secret at CF Chinook Centre (Image: Mario Toneguzzi)

Rolex at CF Chinook Centre (Image: Mario Toneguzzi)

Le Creuset at CF Chinook Centre (Image: Mario Toneguzzi)

Peloton at CF Chinook Centre (Image: Mario Toneguzzi)

The Latest Scoop at CF Chinook Centre (Image: Mario Toneguzzi)

CF Chinook Centre (Image: Mario Toneguzzi)

Rocky Mountain Soap Co. at CF Chinook Centre (Image: Mario Toneguzzi)

The Price of Love: Why Millennials and Gen Zs are Running Up Major Dating Debt [Op-Ed]

By

Retail Insider

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September 13, 2023

Are you looking for love in all the wrong places? (Shutterstock)

The average American invests US$120,000 throughout their lifetime in pursuit of love, spending significant money on romantic dinners, movie outings and thoughtful gifts, not to mention personal grooming and cosmetic products.

As a result, according to a survey by LendingTree, 22 per cent of millennials and 19 per cent of Gen Z have begun to incur “dating debt.”

Another study by Credit Karma found that 29 per cent of people aged 18–34 have accrued debt for a date, with 21 per cent exceeding $500 in dating debt in a year. Reasons include accidental overspending (29 per cent), an attempt to impress dates (28 per cent) and seeking intimacy (19 per cent).

But another survey by Finder also reveals that 44 per cent of Gen Zs consider debt a romantic deal-breaker when considering a partner.

This highlights potential ties between accumulating dating-related debt and barriers to the chances of success in forming meaningful romantic connections.

Luxury dates are leading to debt for millennials and Gen Zs. (Jelleke Vanooteghem/Unsplash)

This conundrum is a problem for younger generations, where the pursuit of love and connection is intricately tied to an appetite for luxury, ultimately leading to debt accumulation.

The trend has implications for financial stability, emotional well-being and the very essence of modern relationships.

There are a few issues fuelling it, including the desire to signal status and the persuasive retail marketing of luxury as being synonymous with love, creating that false sense of connection between luxury and love.

‘Costly signalling’

Accumulating debt for romantic engagements has its roots in an innate human desire — namely, the urge to signal status. In a digital age where social media and online dating platforms are the norm, standing out in a crowd has never been more challenging, yet it’s also crucial.

The “costly signalling” theory may explain why such habits develop. It argues that humans and animals use resource-intensive or risky behaviours as genuine, hard-to-fake signals indicating their desirable traits and availability.

This is related to conspicuous consumption, which is driven by a desire for status and the clear signalling of this status to onlookers.

Signalling status in relationships or social circles isn’t uncommon, but it’s found a financial expression in younger generations. Young adults are increasingly associating luxury experiences and goods with a unique form of personal expression.

Whether it’s a lavish dinner at a high-end restaurant or gifting a designer handbag, these actions become markers of distinction and status. While these acts add a layer of individuality to a relationship, they come with the risk of potential financial instability.

Luxury brands like Gucci and Tiffany try to entice millennials and Gen Zs to spend big bucks on their love interests. (Dima Pechurin/Unsplash)

Retail marketing

Retailers often employ strategic marketing tactics to link luxury with love, capitalizing on the emotional connection between these two powerful concepts to entice consumers into purchasing high-end goods.

For instance, luxury brands often release limited-edition Valentine’s Day collections, adorned with romantic motifs and themes, ranging from heart-shaped jewellery to high-end designer fragrances.

Additionally, retailers leverage the allure of love in their advertisements. They often showcase couples exchanging luxury gifts in opulent settings, fostering an aspirational connection between luxury products and romantic ideals.

For example, Tiffany & Co. released a “Believe in Love” campaign featuring stories of seven couples at different stages of their relationships, and how Tiffany has played a part in their love journey.

Retailers create an ambience of indulgence and luxury, presenting their offerings as tokens of affection and devotion.

Personalized engraving services on luxury items, such as monogrammed initials or special dates, further enhance the sentimentality and connection between the product and the act of gifting, convincing consumers to spend money on these high-end, emotionally charged offerings.

For example, Gucci’s “apple of my eye” limited-edition collection shows two interlocking red letter Gs that are meant to signify romantic love.

These strategic marketing tactics linking luxury with love contribute to more debt by enticing consumers to overspend on high-end goods with premium price tags. They promote impulse buying through limited-edition collections, foster unrealistic desires through aspirational advertising, encourage additional spending on personalized services and compel people to prioritize romantic gestures over financial responsibility.

This ultimately leads to the accumulation of debt as consumers strive to express their love through emotionally charged purchases.

Marketing campaigns by high-end retailers entice people to spend money they don’t have. (Melanie Pongratz, Unsplash)

False sense of connection

But there seems to be an intriguing paradox when it comes to luxury goods and their ties to social relationships.

While luxury items can enhance someone’s social image and boost self-perception, people also tend to view themselves more positively when they possess or experience luxury — even though they often hold a less favourable view of others who do the same.

This sheds light on a fascinating discrepancy in self-versus-other evaluations when it comes to luxury consumption.

In a dating context, a person boasting about the purchase of an expensive wine on a dinner date, for example, may over-estimate whether it will actually impress their date.

Ordering an expensive bottle of wine on a date isn’t necessarily impressive. (JP Valery/Unsplash)

Gift-givers often believe that more expensive gifts are more appreciated, assuming they convey greater thoughtfulness. But gift recipients don’t necessarily share this belief because they don’t consistently link gift price to their level of appreciation.

This suggests that gift-givers may not accurately predict what gifts will be meaningful to others. And because they personally may connect expensive gifts with something meaningful, it may lead them to spend more, ultimately contributing to greater dating debt.

Interestingly, while it’s known that people use luxury items to signal their social status and earning capacity, the reactions to such gifts may be complex. Indeed, many people prioritize their independence and question the giver’s motives behind such gifts, fearing power imbalances and expectations.

Instead, they may value personal connections over materialistic displays and be cautious in the early stages of a relationship.

Ultimately, open and honest communication about expectations is crucial for navigating these complexities, ensuring that gift-giving aligns with the relationship’s goals and mutual desires.

The concept of luxury often gets mixed up with our quest for love, creating a captivating but misleading link between the two. In the realm of romantic relationships, luxury goods or indulging in extravagant experiences can sometimes make us feel closer to our partners than we really are.

But the ties between luxury and love can be deceiving. While luxury can certainly add to the romance, it’s important for younger generations to see the difference between flashy things and the deep, lasting connections that bring us closer to love.

By Omar H. Fares, Lecturer in the Ted Rogers School of Retail Management, Toronto Metropolitan University and Seung Hwan (Mark) Lee, Professor and Associate Dean of Engagement & Inclusion, Ted Rogers School of Management, Toronto Metropolitan University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Pet Valu Unveils Canada’s Largest Pet Specialty Distribution Centre in Brampton as Part of $110 Million Supply Chain Transformation [Interview]

By

Mario Toneguzzi

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September 13, 2023

Pet Valu Brampton Distribution Centre (Image: Pet Valu)

Pet Valu, a leading specialty retailer of pet food and pet-related supplies in Canada, has opened what it describes as the largest pet specialty distribution centre in Canada – a 670,000-square-foot state-of-the-art facility in Brampton, Ontario.

Richard Maltsbarger, President and Chief Executive Officer of Pet Valu, said the centre represents a key milestone in the company’s nationwide $110-million supply chain transformation and the GTA DC will bring unprecedented scale and automation to Canada’s pet sector as the largest distribution centre and robotics automation installation dedicated to serving the pet specialty industry.

“Today marks a significant accomplishment for our teams, whose meticulous planning and tireless efforts have enabled Pet Valu to take a big step towards building Canada’s strongest pet specialty distribution network,” he said.

Pet Valu Brampton Distribution Centre (Image: Pet Valu)

“As the largest pet specialty facility in Canada, our GTA DC will benefit multiple aspects of our business through capacity to support future growth, efficiencies to accelerate speed to customers, tailored facilities to support employees, and job creation to support the communities we serve. We look forward to enhancing distribution services to our corporate and franchised stores in Central and Eastern Canada, including into our Chico banner in Quebec.

“As we grew significantly both through units and the overall growth in the pet population over the past three-plus years, we quickly exceeded the supply chain capacity that we had within our existing network. So, we had been bringing on board additional third-party managed storage over each of the past three years in order to keep up with the great growth that we’ve achieved. And we knew we needed to make the right types of investments to be able to keep up with this growth and continue to grow over the long term. During late 2021, early part of 2022 we undertook a remapping of our entire nationwide supply chain network and identified the opportunity to really build three core distribution centres. One in the Greater Toronto Area, one in Calgary and one in Vancouver to service our growing set of stores and franchisees across the nation.”

Pet Valu is Canada’s leading retailer of pet food and pet-related supplies with over 750 corporate-owned or franchised locations across the country.

Maltsbarger said the company started with the GTA first because it’s the largest serviced area, servicing all of Ontario, Quebec, New Brunswick, Prince Edward Island, Newfoundland and Nova Scotia.

“Secondly, we acquired our Chico chain in Quebec in February of 2022 and planned right away from the beginning that longer term we would become the wholesale distributor to our Chico franchisees, much as we are to our Pet Valu franchisees today because on the Pet Valu franchise part of the business we provide 90 per cent of the products to our Pet Valu franchisees. They are also a distribution network. Today, at Chico that’s less than 10 per cent,” he said.

“Opening up this new facility now gives us the opportunity to continue to serve our Pet Valu franchisee and corporate stores but now also over time expand our ability to service our new Chico franchisees.”

The facility, which was built by Orlando Corporation, is about the size of 11 football fields, employing about 500 jobs. Highlights include a café, nursing room, prayer rooms, training room, driver’s lounge and open concept office space. The facility also employs advanced health and safety features, such as ergonomically-designed workstations and equipment.

Starting in the first half of 2024, Pet Valu plans to introduce automation capabilities into the GTA DC, with the installation of Canada’s largest goods-to-person robotics installation dedicated to pet specialty products. The design will have the capability to process orders same day, while improving pick productivity by more than 50 per cent and reducing the overall footprint compared to a traditional manual picking solution. The facility’s warehouse processes, systems and automation is expected to reduce costs per case and drive productivity improvements as well as provide improved product availability, faster order processing, and overall customer service levels for stores and ecommerce customers.

“Our GTA DC establishes a new benchmark for pet specialty distribution capabilities in Canada. In addition to providing a modern supply chain network that can supply our stores with flexible, reliable and accurate service, and world-class on-shelf availability in store and online, the facility supports the individual needs of our diverse workforce,” said Nico Weidel, Chief Supply Chain Officer at Pet Valu.

Pet Valu said it expects the GTA DC to be fully operational by the first half of 2024, following a phased transition period. The facility is commencing receipt and shipment of bulk items such as dry pet food and litter. Once installation and setup of automation equipment is complete in early 2024, receipt and shipment of piece-pick items such as toys and collars will transition over to the GTA DC. It said it will scale down use of its legacy distribution facilities and third-party storage space in the Greater Toronto Area throughout these phases.

Pet Valu said it plans to invest $110 million over four years to modernize its distribution networks in the Greater Toronto Area, Vancouver and Calgary.

Progress has already begun in Vancouver, where Pet Valu has signed a lease for a new, near-complete facility, targeting start-up in mid-2024.

Maltsbarger said Pet Valu continues to see really strong fundamentals helping to support the long term growth in the pet industry.

“For 30-plus years now, we’ve continued to see growth in the pet population alongside overall Canadian population growth,” he said. “So as the Canadian population grows, we continue to see a similar percentage usually in the 65 per cent (range) of Canadian household levels generally own pets and that’ll continue to be at or slightly higher than that over the long-term.

“We’ve also continued to see the long term trend of premiumization and humanization. As we continue to see our devoted pet lovers make their pets even more a part of their life, we see them buying better ingredient foods, often human grade quality food. We see them upgrading the beds and the crates and the toys that they purchase for their pets. And just overall really beginning to see the pet even more and more as part of the family. All of that helps to contribute to what’s been a long-run, 30-plus year growth streak within the pet industry and we continue to see that in place for the long term.”

Pet Valu Ottawa (Image: Fox Contracting)

He said the long-term opportunity is for more than 1,200 locations in the country – that’s an additional 500 stores over the next 10 to 15 years. The company targets between 40 and 50 new store openings per year.

“In total we do about 100 real estate projects per year. About 40 to 50 are focused on new stores and about another 50 to 60 are focused on renovations, expansions or otherwise going in and doing significant touch up and maintenance to our existing stores to make sure that our entire network stays fresh.”

In early August, the company reported its second quarter financial results, indicating system-wide sales of $343.9 million, which was an increase of 10.1 per cent versus the prior year. Same-store sales growth was 6.0 per cent, with both basket and traffic growth contributing. Revenue was $256.4 million, up 12.6 per cent versus last year. Adjusted EBITDA was $53.8 million, up 3.9 per cent versus the prior year, representing 21.0 per cent of revenue. Operating income was $40.2 million, up 2.3% versus the prior year. Net income was $24.1 million, down from $25.3 million in the prior year. Adjusted Net Income was $26.3 million or $0.36 per diluted share, compared to $27.9 million or $0.39 per diluted share, respectively, in the prior year.

Pet Valu Companions for Change Adoption & Wellness Center (Image: Pet Valu)

SPCA Mobile Animal Wellness Services unit (Image: Pet Valu)

In the quarter, the company opened seven new stores and ended the quarter with 758 stores across the network.

The company said it expects 2023 revenue between $1.05 and $1.075 billion, driven by same-store sales growth between seven per cent and 10 per cent and 40-50 new store openings.

Pet Valu Seeing Significant Growth in Canadian Market with New Store Openings: Interview

Ferragamo Opens Largest Canadian Storefront on Toronto’s Bloor Street Luxury Run [Interview]

By

Craig Patterson

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September 12, 2023

Italian luxury brand Salvatore Ferragamo has opened its newest Canadian storefront on Toronto’s Bloor Street luxury run. The flagship joins other luxury brands on the rapidly transforming street which will see several more store openings before the end of the year.

The Ferragamo store is located at The Colonnade at 131 Bloor Street West, in two combined retail spaces that once housed retail locations for brands Coach and Mulberry. The new Ferragamo spans 5,628 square feet on one level with 3,312 square feet of that being selling space, according to the brand.

Products in the new store include Ferragamo’s range of apparel, leather goods, footwear, silk items and other accessories for both men and women, as well as a range of licensed eyewear, watches, and fragrances. Also included are some exclusive products not available in other Ferragamo locations in Canada.

The store’s beige facade contrasts with black metal frames and an illuminated logo — Ferragamo recently changed the font of its branding from a handwritten version of ‘Salvatore Ferragamo’ (that had been iconic for decades) to a type-written upper-case serif font. Materials used inside the new store include travertine, walnut, and bronze, with design elements including walnut, precious wallpapers, boucle fabrics, and espresso and ivory silk hand tufted rugs. Construction firm Amachris Corporation built out the space.

Jordan Karp of Savills Canada negotiated the lease deal for the Ferragamo Bloor Street store on behalf of the retailer. Morguard owns and manages The Colonnade.

The Bloor Street store design is reflective of Ferragamo Creative Director Maximilian Davis’ vision for the brand — Davis was appointed to the position in March of 2022 and he’s taken the brand in a more contemporary direction in terms of product design.

Retail Insider had the opportunity to speak to Daniella Vitale, CEO of Ferragamo Americas. She said that Bloor Street was chosen for a store because of the importance of the street, and that Ferragamo had been looking for the ‘right’ space in the area for years. Toronto’s growing affluence and increasing tourism are expected to bolster sales in the new store, located alongside various other luxury brands on Bloor Street.

Younger consumers with money are among Ferragamo’s target market, with the brand bringing in more modern designs in footwear, handbags, accessories and ready-to-wear. At the same time, Ferragamo is embracing some of its iconic product designs while looking to expand its base of luxury customers. Men’s categories have also been strong in Canada, particularly accessories and footwear.

Bloor Street is the fourth Ferragamo store to open in Canada — Vancouver has had a Ferragamo store at 918 Robson Street since the spring of 1981. The Vancouver store was the only standalone location in the country until Ferragamo opened at Toronto’s Yorkdale Shopping Centre in 2013. In the summer of 2016, Ferragamo opened a store in a new wing at Square One in Mississauga.

Vitale said that Ferragamo is doing well in Canada, with Yorkdale in particular being a strong point in terms of sales. The Vancouver store also does well, and will be eventually relocating — the building where it is located is slated for redevelopment. The Square One Ferragamo store is more of a ‘work in progress’ in terms of sales, according to Vitale.

Ferragamo could eventually open a store in the Montreal market, said Vitale, and other cities such as Edmonton could be a possibility in the future as well. Ferragamo has partnered with Montreal-based SSENSE to carry the brand wholesale, and an expanded wholesale partnership with Holt Renfrew is also in development. A concession presence for Ferragamo at Holts is currently not in the works, however, according to Vitale.

The Bloor Street store is Ferragamo’s 41st full-priced retail location in North America — the brand also operates 15 outlet stores in the US. Full-priced locations in the United States include a mix of street-front stores and locations in upscale shopping malls.

Future Van Cleef & Arpels on Bloor (Image: Dustin Fuhs)

Ferragamo is the latest luxury brand to open on Bloor Street’s luxury run. Across the street, luxury jeweller Van Cleef & Arpels is preparing to open a store at 100 Bloor Street West, with a Rolex store under construction across the way. The overhauled retail podium at 110 Bloor Street West will soon see storefronts for Saint Laurent, Anne Fontaine, Paris Baguette and Alexander Wang. Luxury French children’s brand Bonpoint recently opened a store at 151 Bloor Street West, and other big names are said to be coming to the street as well with announcements forthcoming.

Ferragamo was founded in Florence, Italy, by Salvatore Ferragamo in 1927. The brand now has stores, concessions and wholesale accounts globally as well as a digital presence. The brand is renowned for the creation, production and distribution of luxury collections of shoes, leather goods, apparel, silk products and other accessories for men and women, including also eyewear, watches and fragrances under license.

Salvatore Ferragamo to Open 1st-in-the-World Concept Store on Bloor Street in Toronto

adidas Originals Opens Unique ‘The Collection’ Storefront at The Well in Toronto [Photos]

By

Dustin Fuhs

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September 12, 2023

Sportswear retailer adidas is set to debut its latest flagship store at The Well in Downtown Toronto.

Retail Insider first reported on the new store back in October 2022 and after a soft launch in August, the brand’s official opening is this weekend, marking a major milestone at The Well.

The Collection: An Elevated Boutique Experience

“The Collection,” as dubbed by the brand, is more than just a retail space—it’s a curated experience. “Our team of managers and sales associates are looking to create an elevated boutique environment and experience for our consumer,” says Lesley Hawkins, VP of Retail for adidas. “From an assortment perspective, The Collection will have all our hype drops, along with an elevated assortment of premium collections.”

The boutique aims to enhance the customer journey through specialized services and personalized experiences. adidas has focused on offering consumers an unparalleled array of products, from exclusive collaborations to premium collections.

Showcasing a Rich Heritage

At the heart of this flagship store is storytelling. “adidas is the original sport brand and as such, has the largest footwear archives. The Collection concept is our opportunity to showcase our history, culture, and innovation,” says Hawkins.

The adidas Originals line will be heavily featured, including artifacts and exclusive collaborations that weave the brand’s extensive heritage into the store’s fabric.

The Well: The Community

As The Well continues to see progress and its retailers start to open, the brands will need to create a destination of events and attractions to bring tourists and local customers to the property. adidas is joining BMO and De Mello as the first retail spaces that are currently open at the Front & Spadina destination, which gives added opportunity to grow the community from the ground up.

“We will be featuring the work of local photographers as they bring Toronto neighbourhoods to life through their lens,” adds Hawkins. This initiative will kick off during the grand opening weekend, with exclusive workshops and personal shopping sessions available for adiClub members.

Retail leasing for The Well is handled by Josh Katz, Assistant Vice President of Leasing, RioCan Real Estate Investment Trust and Alex Edmison, Senior Vice President, CBRE.

A Nod to Sustainable Design

adidas at The Well in Toronto (Image: Dustin Fuhs)

Apart from offering a customer-first shopping experience, the new store location is full of sustainable design elements. An 18-foot panoramic window overlooks the rapidly growing skyline, supplemented by smart lighting with daylight sensors to automatically adjust interior lighting.

The store even sports a green footwear wall with live plants and reclaimed school gym wood flooring in its change rooms.

Soft-Opening Success

Since its quiet opening last month, the flagship store has already garnered a warm reception. “Consumers from the surrounding towers have been watching this project come to life for the past two years, so it’s exciting to finally have an opportunity to showcase our vision,” concludes Hawkins.

The grand opening of adidas’ flagship store in downtown Toronto is more than just a retail opening—it’s an opportunity for the community to come together and see the years of ideas, planning and development that went into The Well.

Additional Photos from adidas at The Well

Commerce in the Age of Generative AI [Video]

By

Mario Toneguzzi

-

September 12, 2023

Mastercard’s Commerce in the age of generative AI, which is its latest Signals report explores how the democratization of generative AI will advance the Next Economy.

In the retail sector over the next two to three years, Mastercard predicts a rise in AI-powered personal shoppers to redefine consumer convenience.

The opportunities include:

Virtual shopping experts can scan multiple channels to weed out products with bad reviews and pinpoint the most cost-effective options;
It can also harness customer data to provide personalized product recommendations; and
As consumers increasingly share biometric data like body measurements, AI assistants can curate apparel with flawless fits, reducing the volume of returns processed by retailers.

But of course there will be challenges. Virtual assistants will be increasingly privy to a wealth of sensitive data, which poses significant privacy and security risks as it invites misuse and exploitation, prompting regulatory scrutiny.

Mastercard says Klarna and Instacart are already harnessing synergies with AI-plugins and chatbots.

Some of these seismic shifts will define generative AI’s development in commerce over the next five to seven years with the convergence of five key trends: widespread integration, bespoke AI, data differentiators, AI-to-AI interactions, and its staying power.

In this video interview, Darrell MacMullin, SVP, Product & Platform, at Mastercard in Canada, talks about the trend and its implications for the future.

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 News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.

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Canadian Consumers Changing Priorities Amid Shift with Retail Impacted: BDC Report

By

Mario Toneguzzi

-

September 12, 2023

Geopolitical tensions, environmental concerns, rising prices and reduced spending power are motivating Canadians to cut back and entrepreneurs can respond, according to the latest edition of BDC’s 2023 Consumer Trends report.

“These trends have become part of our daily lives and we realize that they are associated with the larger trend of consuming and owning less, whether it’s a conscious choice or to save costs,” said Pierre Cléroux, vice-president Research and Chief Economist at BDC (Business Development Bank of Canada). “Today’s prudent consumers have different expectations; it’s important to keep these in mind when adjusting to shifts in their behaviour.

“This is our third study once we realized trends have changed quite a bit. The last study was 2016. And the trends are quite different this time.”

Williams Sonoma at CF Toronto Eaton Centre (Image: Dustin Fuhs)

The study found three emerging trends with important implications for all businesses, regardless of size or industry:

The client is always right. 34 per cent of Canadian businesses have redesigned the customer experience even though most consumers (90 per cent+) strongly agree that a simple and satisfying experience is fundamental to the consumer-business relationship. Proactively managing online reviews can help entrepreneurs who have a strong presence with younger generations keep track of what’s being said online and correct points of misinformation. Technology can help for many aspects of the clients’ journey, from marketing automation to e-commerce websites to identifying the right channels to effectively deliver customer service;
Less is more. Only one in 10 businesses offer a way for consumers to purchase used, refurbished, or returned merchandise. Entrepreneurs are not honing in on a trend that appeals highly to Millenials, Gen X and Baby boomers alike. In fact, almost two-thirds (61 per cent) of consumers prefer to live simply. Entrepreneurs can help their clients consume less, by rethinking their product design to improve their environmental footprint. Another prime example of appealing to different generations is to segment messages to personalize communications based on past purchasing behaviour;
It’s not me, it’s you. Consumers want businesses to inspire trust and just over half of them (56 per cent) have stopped buying from companies whose business practices they don’t agree with. To be a better corporate citizen, entrepreneurs can consider third-party certification to acknowledge they live up to the highest standards. Knowing what makes their customers tick shows that they care and helps differentiate from competitors.

Cléroux said the first trend about consumer experience is new.

“Over the last year, people have been using online much more. The expectation is really now that you should get the same experience online or in the store,” he said. “The expectation is much higher than it was.

“There’s an expectation that businesses should be a good corporate citizen. It’s the first time we’ve seen this trend. This is really new in terms of what we have been seeing over the last three reports . . . The importance of being a good citizen it’s more important for the younger generation and that’s important because that’s the next consumer. So that’s something to keep in mind.”

Amazon Pick Up at Staples Corktown (Image: Dustin Fuhs)

Cléroux said the research has indicated that consumers are slowing down in consumption.

“There’s two reasons. First is the financial pressure. And the second is about 40 per cent were saying they want to reduce their consumption because they worry about the environment. If we go back to the financial pressure, there’s no doubt that the last year has been hard on consumers. Inflation has been high. Interest rates have been increasing. People pay more. A lot of Canadians are paying more every month for their mortgage so they don’t have the same amount of money to spend,” he said.

“This is very related to the current situation. The pressure on people’s wallets is really there and that’s what we see in the result of this third report.”

Cléroux said that in this environment businesses have to give more options to the consumer who are looking to reduce their spending.

The BDC said that back in 2016 when it conducted a similar study, Millennials were driving the hyper-connected consumer revolution, sharing platforms were only emerging and there was a need to better target consumers with personalized messages and experiences.

This report said few businesses (29 per cent) are taking a generational approach to the products and services they offer, although behaviour, values and beliefs vary by age. For instance, environmental considerations are more important for Millennial consumers. Taking a generational approach to understanding purchase behaviour can be valuable to businesses looking to better target their customers, as not all trends are expressed the same way, it said.

Montréal’s Retail Sector Thrives with Decreased Vacancies, Increased Foot Traffic and Exciting Developments [JLL Report]

By

Mario Toneguzzi

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September 11, 2023

Overall, there have been many improvements in Montréal’s retail sector as vacancies have decreased with foot traffic and sales continuing to climb, says a new retail report by commercial real estate firm JLL.

It said consumers are starting to feel the effects of the Bank of Canada’s interest rate hike campaign. However, notable retail-friendly developments are currently underway, which will serve to facilitate and encourage commercial activity on the island and beyond.

Jesse Provost, Associate Vice President of the Retail Advisory Group for JLL, said the retail scene is exciting in Montreal these days with new projects such as Royalmount with new to market retailers coming to the city.

There’s also quite a bit of activity on the iconic Sainte-Catherine Street with many retailers looking to locate on that busy retail area.

“By and large, I would say it’s pretty exciting and a good time for retailers generally in Montreal. That being said, obviously the economy is what it is. We’re seeing interest rates continuing to increase. So people are being more cautious with their spending. Retailers are very well aware of this,” said Provost. “They’re trying to navigate those choppy waters for the next couple of quarters until we really see results of all of this at the end of it all.”

Sunglass Hut and Adidas on Saint-Catherine St W, Montreal (Image: Maxime Frechette)

Retailers continue to be attracted to Montréal.

“Montréal is culturally a very attractive city. For some brands they do want to bank on that reputation that Montréal has of being a city of culture, a city of fashion. The prominence of Sainte-Catherine Street. If you’re going to open in Montréal you’re going to want to be on Sainte-Catherine Street eventually. It might not be your first stop, but obviously it’s something you’ve got to keep in mind,” said Provost.

“I think in the past Sainte-Catherine Street has had notable vacancy. With the way the retail market is today and how some retailers have been quite successful coming out of the pandemic, I think it’s a great opportunity for them to start looking and settling in our beautiful city. Definitely something all retailers should be doing.”

The JLL report said air travel in Montréal has seen a remarkable uptick, reaching levels rivaling pre-pandemic times. Hospitality data in Montréal paints a similar picture. According to AHGM and Tourisme Montréal, hotel occupancy in Q4 2022 stood at 68.4 per cent, a mere 1.5 per cent lower than in Q4 2019. It’s worth noting that the current cost of renting a room in Montréal is 22 per cent higher than in 2019, indicating a robust comeback for tourism, as well as sightseers’ willingness to spend money in search of experiences in the city, said the report.

“Thanks to a renewed interest in experiences, Montréal restaurants enjoyed a marked surge in visits in 2023. OpenTable data reveals that Montréal has outperformed both Toronto and Vancouver in terms of restaurant reservations, with a notable 12 per cent increase between Q2 2022 and Q2 2023. In contrast, Toronto and Vancouver only experienced modest growth, each showing a mere one per cent increase during the same period,” said JLL.

“The growth in downtown foot traffic can also be attributed to the increased frequency of college and university students attending school onsite. Between Winter 2022 and Fall 2022, the proportion of in-person learning vs virtual learning increased by nine per cent, reaching 96 per cent. The positive momentum spans multiple semesters and has enabled students to physically attend school at a pre-pandemic pace.”

While downtown Montréal has witnessed the return of tourists and students to levels comparable to pre-pandemic times, the reintegration of office workers into their workplaces has been notably slower, indicating a lasting presence of hybrid work models, explained the report.

“According to Altus, the adoption of fully onsite working policies among employers has experienced significant growth between Q1 2022 and Q1 2023, almost tripling from five per cent to 13 per cent. While the YoY increase is noteworthy, there is still vast progress needed to reach pre-pandemic workplace attendance levels. Unless office workers revert to their pre-2020 levels of workplace attendance, substantial growth in future foot traffic in downtown Montréal remains unlikely,” it said.

The increase in foot traffic has meant improved retail leasing activity in the market. The vacancy rate is still above pre- pandemic levels, however, progress has been made in recent quarters.

Citing Statistics Canada data, JLL said net effective rents have rebounded and are now 3.8 per cent higher than they were in 2019. Compared to Toronto and Vancouver, rental rate growth in Montréal has been tamer, with these cities seeing increases of 5.5 per cent and 8.8 per cent respectively over the same period.

“It’s expected that rents will increase in the coming quarters, however, the Bank of Canada’s fiscal tightening campaign may limit growth potential,” added the report.

JLL said that recently the developers of Royalmount – Montréal’s upcoming shopping and dining destination unveiled new updates about its tenants and development. Several luxury brands including Yves Saint Laurent, Jimmy Choo, and David Yurman will be establishing their first-ever stand-alone stores in Quebec. Furthermore, Michael Kors and TAG Heuer will also join Montréal’s next luxury hub in 2024, which will include over 170 stores and 60 restaurants once complete.

Seeking to boost its connectivity to Montréal’s transit system, Carbonleo has begun construction on a footbridge spanning over 200 metres that will connect the shopping district to the De la Savane metro station. Once complete, the pedestrian bridge is expected to accommodate nearly 10 million pedestrians annually and encourage car-free foot traffic, added the report.

“In late July, Montréal saw the long-awaited arrival of its most anticipated transit endeavor since 1966 – the REM LRT network. This significant milestone brought forth a portion of the network, linking the South Shore section via five stations to downtown Montréal. As a result, South Shore suburbanites can now access the heart of the city within 18 minutes,” said the report.

“Next year, the REM project will add more than a dozen new stations, significantly improving connectivity between the suburbs and Montréal’s downtown core. Among these stations, the McGill REM station is projected to be the network’s second busiest, accommodating around 25,000 commuters daily. The future station is expected to provide a boost to foot traffic and sales to both the Eaton Centre and retailers along Sainte-Catherine Street.”

According to JLL’s Sainte-Catherine Street Retail Analysis, the street has adapted to changing spending habits. The street has seen an increase in its share of clothing and footwear operators on a 900-metre span between 2019 and 2023, which bodes well as these categories have been trending well in the GMA for the past few years.

“Between Q2 2022 and Q1 2023, Montréal Centre Ville reported a two per cent decrease in the street’s vacancy rate, while the urban mall vacancy rate experienced a more substantial drop of seven per cent, reaching 12 per cent. Furthermore, pedestrian activity surged by an impressive 115 per cent along three prominent intersections between Q1 2022 and Q1 2023, indicating a positive recovery in foot traffic,” said the report.

“These positive trends are expected to continue, supported by recent and upcoming developments. The opening of the new Nike store, the introduction of future REM stations, and an ongoing redevelopment project aimed at widening sidewalks and adding street furniture between Mansfield Street and Atwater Avenue will likely contribute to the continued growth and attractiveness of the area.”

Home Société and MUST Home Decor Expands with Downtown Toronto Storefronts Amid Rising Condo Developments

By

Dustin Fuhs

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September 11, 2023

Future MUST and Home Société at Home on Power in Toronto (Image: Dustin Fuhs)

Downtown Toronto’s retail landscape is about to get a trendy update.

Quebec-based home furnishing retailers MUST and Home Société will be opening in a condo development in the Corktown neighbourhood of Toronto in 2024. Construction hoarding has been installed at the ‘Home on Power’ development at the corner of Parliament and Adelaide St E.

Both brands will have their own separate entrances.

Future MUST and Home Société at Home on Power in Toronto (Image: Dustin Fuhs)

The move from the brand comes as downtown Toronto is experiencing a surge in condo developments that are completing or near-completion, which gives the G2MC-brands a ready-made customer base for its interior home decor solutions.

G2MC is a furniture retailer operating under the Maison Corbeil, Jardin de Ville, Galerie du Meuble, MUST, and Home Société banners.

In addition to the new location, the brand has confirmed that there will be another opening in Ontario. A standalone MUST store will join the retail offerings at Heartland Town Centre in Mississauga, opening at the end of 2023, making it the first standalone MUST store in Ontario.

Retailers Adapt to Urban Living Trends

MUST and Home Société aren’t the only brands targeting the condo dwellers. The company is setting up urban storefronts as a way to directly appeal to the downtown residents who live in compact spaces but still have disposable income to outfit with quality and style.

The brand aims to fill the niche by opening up a store in an area of the core that’s seeing densification and long-term development.

Sister concept Jardin de Ville has seven locations in Quebec and Ontario, including a store in the St. Lawrence Market neighbourhood.

A Retail Ecosystem Grows in Home on Power

‘Home on Power’ has started to see residents move in over the past few months, giving retailers in the area a long-term view of the potential customer base – including Staples. The office retailer underwent a facelift in 2022, shifting from its former King Street East location to a new format store on Richmond Street, which was caused by the Ontario Line subway construction.

The new Staples storefront focuses on serving small businesses and entrepreneurs, even including a podcast recording studio and a Mos Mos coffee bar.

Aisle 24 Set to Join the Retail Lineup

Home on Power will also be home to Aisle 24, a rapidly expanding Canadian cashier-less convenience store concept. Known for its innovative technology, Aisle 24 has been on an growth plan, opening locations in trendy Toronto neighbourhoods like Liberty Village, Entertainment District, and The Distillery District. The brand recently made its Alberta debut with two new stores in Edmonton.

Aisle 24’s inclusion in the ‘Home on Power’ complex adds to the project’s image as a destination for urban retail innovation.

The Backstory on Parent Company, G2MC

MUST and Home Société are a part of the G2MC portfolio, a heavyweight in the Canadian furniture and decor market. Formed through the merging of several Quebec-based brands—Galerie du Meuble in 2012, Maison Corbeil in 2013, and Jardin de Ville in 2015—G2MC has expanded its footprint to 17 stores across Quebec and Ontario. The company also operates three e-commerce platforms and boasts a diversified portfolio of brands, signalling its strong position in both mid and high-end markets.

Maison Corbeil will be celebrating its 50th anniversary this year. The brand was founded in 1973 by Colette Corbeil and her husband Raymond and continues today with her sons Éric and Stéphane. Retail Insider will be profiling the retailer as more details become available for the celebration.

As G2MC gears up to open its new downtown Toronto location, it’s clear that the city’s retail landscape is in the midst of a transformation. Businesses are increasingly focusing on urban-centric strategies to appeal to a new generation of city dwellers, and MUST has the opportunity to position itself at the forefront of this trend with the right investment at the right time.

Canadian Retail News From Around The Web For September 11th, 2023

By

Retail Insider

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September 10, 2023

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.

Metro strike gains raise the bar for Canada’s grocery store workforce, unions say (Financial Post)

Some Loblaws prices are double Dollarama’s – here’s why (CTV)

Mock robberies are part of the training for pharmacy assistants at Fanshawe College (CBC)

Former fashion executive Peter Nygard set to face his first trial in Toronto next week (Globe & Mail/subscribers only)

From a simple stall to two dozen retail stores, Kin’s Farm Market celebrates 40 years in B.C. (Vancouver Sun)

B.C. grocery store workers could benefit from gains made by Unifor with Metro strike (Vancouver Sun)

New Winners & HomeSense Store Opening Soon in Collingwood (Collingowood Today)

Barrie-area Indigenous art retail platform receives $500,000 federal funding boost (Simcoe.com)

Fredericton’s Westminster Books begins a fresh chapter under new ownership (CBC)

Wine in Vancouver grocery stores: Council to review report (CTV)

What do you think of corner stores? The City of Vancouver wants to hear from you (CBC)