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Retail in Montreal: Downtown Core, Royalmount and Neighbourhood Discussion [Podcast]

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Retail Insider
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Ste Catherine, Montreal (Image: Craig Patterson)

Retail Insider’s Craig Patterson talks about his recent trip to see retail in Montreal. The conversation with Lee includes a discussion on what’s being seen downtown including vacancies on Ste-Catherine Street as well as the city’s amazing food halls. Craig also visited the Royalmount project which is set to open next year, and toured other areas including the city’s Gay Village.

The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Interview Series podcast where Craig interviews guests from across the Canadian retail landscape as part of the The Retail Insider Podcast Network.

Retail Insider content discussed this episode:

Transcript

Announcer 0:00
This is a Retail Insider PodCast. You’re listening to “The Weekly”.

Lee Rivett 0:08
Welcome to this week’s episode of “The Weekly” by Retail Insider. I’m Lee Rivett and I’m joined with the owner and publisher of Retail Insider Media, Craig Patterson, to discuss this week’s most read articles on retail-insider.com. So thanks for joining me, Craig!

Craig Patterson 0:22
Hello, everyone.

Lee Rivett 0:23
Now Craig and I were both traveling over the last couple of weeks. I was in third world countries without a lot of retail – so that’s not as relevant for this conversation. But Craig sashayed off to Montreal and was able to visit a number of retail locations there that we wanted to cover during this podcast. So Craig, where would you like to start?

Craig Patterson 0:41
Yes, yes. So hello, everyone. I had a great little trip to Montreal. I was there. I was there for a few days. And it was definitely mixed. I was really impressed with some of the stuff that I saw, I got to tour Ste. Catherine Street, I got to take a tour with executives from Carbonleo of the Royalmount project. And I got to look at a few neighborhoods in the area as well. So we can do a quick little run through some of the observations in Montreal, which was a wonderful time because the weather was great as well.

Lee Rivett 1:06
Perfect. Well, let’s start out with Ste. Catherine Street. And just for our listeners information, we do have a couple of photo tours of Ste. Catherine Street in Montreal about a year ago. So if you want a little bit of like photo reference, or maps of the area that we’re going to be talking about, I’ll include it in the show notes. But, Craig, tell us about where you stayed and what you thought posting Catherine Street?

Craig Patterson 1:27
Yeah, yeah, I stayed actually at a really interesting residence just near Holt Renfrew Ogilvy, which is on the west side of the main commercial strip of Ste. Catherine Street. So I got to walk up and down Ste. Catherine Street a few times (this would be Ste. Catherine Street West technically), one of those things actually off the bat that was a little bit concerning, whereas the number of retail vacancies on the street. I was got to do a bit of a tour with Maxine for shad, who’s wonderful Montreal correspondent with Retail Insider, he was pointing out some of the retailers that had shut down quite recently, including I think, an Aldo store that had shut down the day before we were going for that walk. So kind of a little bit concerning. I mean, this is obviously an opportunity for new retailers to be able to come into Ste. Catherine Street. But at the same time, I were called Eva Freed actually formally at the Montreal Gazette on social media also pointing out that there was a particular block nearby near the Holt Renfrew Ogilvy, which I think only had one business on it and the rest had shut down. So yeah, definitely, there’s going to need to be some new tenants put into various parts of Ste. Catherine Street. Part of the reason for that could be construction as it continues to progress along, there is a multi year upgrading of the street, which will include a new public realm. What we’re seeing so far is quite good in terms of the plans and what’s already been finished. But this is going to be disruptive to the street.

Lee Rivett 2:43
And there’s quite a bit of construction going on there. Is it going as expected or is there issues with the construction as well?

Craig Patterson 2:50
Construction isn’t quite as what was expected initially where they were going to have heated sidewalks and they were going to have garbage that would be sucked down into the ground, it would be done through technology. I guess the city for budget reasons ended up not making that full investment, which is I think, really too bad because this is the future of Montreal we’re dealing with here. But unfortunately, economics have to come into play and money isn’t unlimited.

Lee Rivett 3:13
Fair enough. And what about Peel Street? You went there too, right?

Craig Patterson 3:16
Yeah, I got to meet with the team from the Marine group. Wonderful people there. We were looking at Peel Street and what’s happening there. So they’ve got a retail space for lease which was most recently occupied by an American Eagle store.

Lee Rivett 3:27
When isn’t other things happening as far as activities on Peel Street as well?

Craig Patterson 3:31
Peel Street, it’s going to be great. The Grand Prix is coming in a few weeks and that’s going to be shut down. They’re already starting to set up for things. So really, Peel Street becomes a place that sits quite vibrant jewelry store, Mejuri, recently opened on Peel Street, which is encouraging. It’s across from the Harry Rosen store. And I believe I was talking to Sheldon Mintzberg of Marine Group who was explaining how eventually the there’s some construction that’s going to be happening on Peel Street and a bit of a boulevard put in in terms of trees and upgraded landscaping. It sounds like it’s going to be quite lovely. So I’m excited for the public realm. I really do think Montreal does a better job than Toronto with its public realm. And same thing with Vancouver is does a better job overall. Peel Street is coming to its own as well.

Lee Rivett 4:15
Awesome. And I think you went to a couple of food halls as well if I’m not mistaken.

Craig Patterson 4:20
I had an opportunity with Maxime to check out some food halls. We went to the “Time Out” food hall which is located at the Montreal Eaton Center. It had techno music playing it was really busy and vibrant. Lots of people were there. We had some really great food. I had this Portuguese chicken caesar salad and he had some Portuguese chicken poutine anyways, it was terrific. I forget the name of the place we went to. But we also got to check out (I was full at that point. I couldn’t eat any more) the food experience at Place Ville Marie, which also had a like a big almost techno party happening because it was a Thursday night and this is something that happens weekly, I guess at least when the weather is better. So that was quite neat to see also the C2 conference was on so there’s lots of people in Montreal this week. And we checked out the food hall called Le Central which is a bit more authentic. The stalls are not quite as uniform I guess you would say is that the other two food halls but it’s restaurants from the city that have set up and anyways, I everything just looked fabulous. I really enjoyed the vibrancy of downtown Montreal in its food halls.

Lee Rivett 5:20
Sounds yummy. Is there any other updates from the luxury retailer perspective that you had as well?

Craig Patterson 5:26
So closer to Holt Renfrew Ogilvy. I checked out some of the retail there Rue de la Montagne has is become a bit of an upscale Street. It’s got a Chateau d’Ivoire jewelry store. Construction is almost finished it was as was a new build. It looks almost like an ivory house or palace wherever you want to call it which will be the translation into English. I didn’t go inside but it looks like a very lovely store. It’s the it’s one of the most prestigious jewelry retailers in Canada. I think I noticed some stores like All Saints had closed on the stretch. Montblanc, the expensive pens and jewelry is still there. Tiffany has a store at the Ritz hotel right at the corner of mountain and Sherbrooke Street. Now my understanding is that Tiffany will be closing right around the time into next year when the royal mount project opens because royal mount has confirmed about a 5000 square foot Tiffany store and I wrote about that a few months ago. So it’s looking like there won’t really have a will any luxury retail actually on Sherbrooke street eventually, when that Tiffany store closes and also in the Ritz. There was a pop up for Christian Louboutin shoe store, which is interesting because there’s also a Christian Louboutin down at Holt Renfrew Ogilvy. There separate shops for men and women on the respective men and men’s and women’s floors within that store, but nevertheless, the Ritz is is quite a prestigious address in Montreal and on Sherbrooke street. So you know, we’ve got some prestige there and then I took a little walk around Sherbrooke Street in the 1980s and even into the 1990s there were luxury retailers on the south side of that street. And most of them are gone. Unfortunately the the former Cartier store that was in Montreal in the 80s the stairs have been destroyed in front of it it was this bowed facade kind of curved facade with this marble, almost like a little jewel box but over the years there’s been really no retail tenants there and the building has fallen into disrepair and it was quite sad to see the stairs broken and chopped down into nothing because last time I’d had to look up there and 2019 the stairs were intact but I remember they were cracked and I have some photos of it as well. So you know wear and tear during the pandemic or whenever that situation took place.

Lee Rivett 7:46
So sorry to hear about like history disappearing there. But did you get into any of the department stores while you’re there as well?

Craig Patterson 7:53
Had a chance to go further down Ste. Catherine Street and check out Lamaze on Simon’s I bought lots of stuff there. I gotta tell you the selection of things like shorts, T shirts and tank tops and that are quite fashionable and underwear for men (I’m just speaking for menswear) is tremendous. At Simon’s the store itself could use a renovation, I would say it’s just not up to the standard – of in terms of the interior – of the newer stores that you would see such as you know, Park Royal and West Vancouver, downtown Calgary, Londonderry and Edmonton. You know, those stories are a little more architecturally interesting because they’re newer and they were designed by amazing architects and built by great builders. So at some point, I’m sure that downtown Montreal store hopefully we’ll be getting a few updates just to make it a bit more dramatic. Because, again, the store is actually great in terms of its product. It’s just, you know, it doesn’t quite look the same as the other ones, but I can’t fault Simon’s at the same time, it’s an expensive thing to do for renovation. The store is probably among the top three in the chain. If not maybe the top one in sales. I’m not sure I don’t have insight into that recently.

La Maison Simons
La Maison Simons, 977 Saint-Catherine St W, Montreal (Image: Dustin Fuhs)

Lee Rivett 8:53
It is great that Simon’s busy there. But for Ste. Catharines generally, is it busy or is it more of a ghost town like some of the other retail streets have turned into unfortunately after COVID?

Craig Patterson 9:05
Ste. Catherine Street generally was really busy. The weather was beautiful one day this there on I think Sunday it was 30 degrees but just packed with people It felt busier than Toronto actually. So that shocked me. I went to the Montreal Eaton center. Quite a few vacancies on the upper level there but at some point there’ll be built in as well. So it’s the center was redeveloped and emerged into one larger shopping center. And there’ll be a big Nike store opening there. Uniqlo opened a couple of years ago its biggest store in Canada and Browns has a B2 store in there which is absolutely gorgeous. To Decathalon is in there. There’s a Lululemon pop up store in there which I don’t think a sticking around for at least it’s probably closing next year but so yeah, very, very interesting tour of the Eaton center as well.

Lee Rivett 9:57
When I know that with Hudson Bay, it had downsize a little bit. Did you have a chance to go take a look at how the new right size downsized Hudson Bay looks at this point?

Craig Patterson 10:06
What is that 685 Just by my memory says Ste. Catherine Street West. It’s about a 655,000 square foot department store. Eventually, the plans are anyways to put an office tower at the back of it and redevelop and maintain the heritage facade but to build about a 300,000 square foot Hudson’s Bay store whether it’s currently 655,000 and adding in a big terrace on the roof anyways, it’s this big redevelopment that we’ve reported on Retail Insider. So I had an opportunity with Maxine, we snuck upstairs to some of the shuttered floors. So we were at level six and seven, we got to see an old restaurant and an old buffet and the kitchen and an old furniture floor. And it was neat just to wander around and check out these areas of Hudson’s Bay which had shut, it’s really kind of disheartening to see a big flagship store like this, which ones had a really big restaurant in it, I’d never been up there before. It must have been, I don’t know, 20,000 square feet or more like this huge food experience. And that was actually what we remember from those department stores back in the day when they were really a place for people to come into a draw. And clearly this Hudson’s Bay store, which had been a Morgans store before that until I think 1972 was an experiential store. So it was interesting to see some of the history and what the store looked like in the past, recognizing that department stores in North America have definitely lost their way including Hudson’s Bay, and are no longer those same experiences in terms of food and beverage that they were before. So I got to really enjoy seeing that if anyone wants to look at my Instagram, I’ve got a section of Instagram archive stories that includes one on Montreal, and I take a tour in there. So have a peek if you are so inclined, because the public is not allowed up there. So you’re not gonna be able to see it yourself unless you have a friend who is able to get up there for you. So check it out there.

Lee Rivett 11:56
Well, let’s hop into Royalmount because I know that was a very exciting project for you. We reported on it in the past, we can have that in our show notes as well. But to refresh my memory were in Montreal is Royalmont?

Craig Patterson 12:10
Kind of in the middle of Montreal Island, technically, the land is Town of Mount Royal, this is going to be a really exciting project, I think it’s scheduled to open around August of 2024. So a bit over a year from now, you know all things working out with construction. So cross fingers, because I really want to go to this opening. I’m so excited, I had to look at some of the more tenants that are becoming and I’m not going to announce them publicly out of respect for Carbonleo, the landlord or this building it. But there’s more confirmed tenants in there. But the ones we can talk about because it’s been reported and announced is the new Rinnai Beauty Hall. I think I pronounced that right, hopefully, really interesting beauty experience that’s going to be brought in there but about 36,000 square feet. I don’t think there’s anything like it in a shopping center in North America currently. So that I found to be quite interesting. They are bringing in an aquarium, the freeing in all kinds of restaurants, food and beverage where you’re big and small, there’s going to be a food hall. Lots of outdoor patio opportunities they’re going to have in this outdoor plaza. Then the indoor area of royal mount, say where the luxury retailers are and other retailers area is going to have these massively dramatic glass ceilings, which I think are really exciting. So it’s just going to look beautiful. I’m very, very excited. I cannot wait to see this project when it is done. It is one of the most exciting retail projects, I think in Canadian history. And yeah, he also Best of luck to everyone at Carbonleo. Anyone doing construction everyone there? People doing leasing? I cannot wait to see this to be done. And the impact on downtown, of course, could be a little bit profound. I mean, we’ve talked about this before, I don’t have to go into details. But in terms of the high end retailers we’re seeing at Royalmount, I think there could be a bit of an impact downtown Montreal. And specifically, I think Holt Renfrew Ogilvy, because some of the luxury tenants that I saw on the floor plan, and some that haven’t already been announced are also at Holt Renfrew Ogilvy. So there’ll be a bit of a battle of the downtown versus Royalmount, kind of like what we see with Bloor-Yorkville and Yorkdale in Toronto, so I’ll leave it at that. But I’m just so excited for this Royalmount project after my tour, I gotta say thank you to Michael and the team there for taking me around. And it was definitely one of the highlights of my trip, as well as the spring so far.

Lee Rivett 14:22
To round out the podcast here, can you talk a little bit about your neighborhood retail that you were able to kind of wander through and see? We talked about the mega projects and neighborhoods but what about the small neighborhood ones?

Craig Patterson 14:34
Montreal is such a wonderful city. It’s got these high density neighborhoods with these, you know, triplex or kind of apartment buildings, but they all have these entrances. Sometimes they have these winding stairs. I climbed up some of these staircases and Dear God, they can be precarious, so I’m surprised we don’t hear more deaths. Perhaps people falling down the stairs. I’m sure it happens. But the commercial around these neighborhoods is just terrific. There’s lots of local retailers. Again, Montreal just has this wonderful urban experience that you don’t really see in Western Canada, I find in the cities because because there are newer and see these older eastern cities, I think just have this amazing urban fabric that you don’t see in the West. And I just love it, I had a chance to I stayed with a friend for the last two days near the Gay Village in Montreal, and which is it’s probably maybe the best one in North America. Honestly, I can’t say I haven’t been to all of them. But I’ve traveled around over the years. But it’s got to be close to being the best. It’s quite long. Lots of interesting businesses and restaurants. But also there’s an issue with homelessness and drug use, which is quite unfortunate. And part of that is because social services have been moved to the neighborhood. I think that could include a safe injection site, I was speaking to some people, but my french isn’t the best and no accents. But definitely social services are partly being blamed for that. And I can even say I live in Bloor Yorkville in Toronto. And we’ve got a respite center and another things and that’s led to an increase in crime in the area. And, and I say that as someone quite knowledgeable with this, I used to work at Covenant House and I know Covenant House definitely had an impact on the crime rate in the areas in Vancouver where the shelters are. So it is what it is. And I’ll call it out and stand by what I say because that is the situation and that is unfortunate for the village there is that this this could pose a bit of a longer term problem for the area just given the vagrancy that we’re seeing in the area around drug use and you know, other issues that we have with mental illness which unfortunately is part of our society so but nevertheless it’s still an incredible place to visit for those that are so inclined check out the Montreal Gay Village and pride should be coming up I don’t actually know when it is but it’s it’s all in the summer as it is with every city pretty much so and that’s pretty much what I’ll do to wrap up my little tour of Montreal. I absolutely loved it. I can’t wait to go back.

Lee Rivett 16:43
Nice. Thank you for just going through your trip. It wasn’t necessarily an article that was very popular, but we wanted to highlight it for this podcast. So thanks Craig for chatting going through it with me and hopefully chat with you next week.

Craig Patterson 16:55
Thank you so much everyone for listening here today. And thank you Lee for chatting. Take care and bye for now.

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Canadian Retail News From Around The Web For June 5th, 2023

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past several days.

Aritzia doesn’t have private mirrors in its fitting rooms, and many people don’t like it (CBC)

Food inflation: How Canada’s grocery prices compares to other nations (CTV)

Canada sees the rise of mall cities (Globe & Mail feature)

How Instacart is using ChatGPT to enhance the search experience (Canadian Grocer)

‘I feel lucky to be around’: Saskatoon shoe store celebrates 40 years on Broadway (CTV)

Alberta entrepreneur’s crazy dream: A woman’s fashion giant run by a woman (Edmonton Journal)

WARMINGTON: New Toronto subway line pushing owner of Tibet Shoppe out of business (Toronto Sun)

Local Leon’s named company’s top store in Canada (Medicine Hat News)

Businesses targeted early Friday in brazen shooting in downtown Montreal: police (Global)

Saying goodbye to Dave Kuzenko’s X-Ray Records in Regina (CBC)

Kelowna, B.C.’s Bankhead Store destroyed by fire Sunday morning (Global)

Calgary father and adult son accused of assaulting, exploiting teen girls in their stores (Global)

Historic Hudson’s Bay Store in Banff for Sale, Bids Close Wednesday [Interview/Photos]

By
Mario Toneguzzi
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Former Hudson’s Bay Store Building 125 Banff Avenue, Banff (Image: Avison Young)

A deadline is being imposed for the submission of bids for the sale of the historic former Hudson’s Bay Store Building along the iconic Banff Avenue in Alberta’s world-famous tourist resort.

The deadline for bids, on the property listed by commercial real estate firm Avison Young, is 1:30 p.m. MDT on Wednesday June 7.

The property is described as “12,398 sf of prime street-front retail exposure along the coveted Banff Avenue entertainment corridor situated in one of Canada’s busiest tourist destinations.”

Former Hudson’s Bay Store Building 125 Banff Avenue, Banff (Image: Avison Young)

Investment highlights by Avison Young include:

  • Opportunity for global retail brands to establish a storefront retail presence along Banff Avenue side by side with other nationally and internationally recognized retailers;
  • Major barriers to entry, with a relatively small and finite inventory of retail space, in a town that is federally-prohibited from expanding its land base;
  • Arguably one of the most premiere retail storefront locations that exists in Banff.

Avison Young would not comment on the listing and HBC could not be reached for comment.

In February, HBC announced it was shutting its doors in August at the Banff location. The Bay opened in 1935 in Banff in a different location and moved to its current site in 1947.

National retail expert Michael Kehoe, Broker of Record at Fairfield Commercial Real Estate Inc. in Calgary, said the Hudson Bay Company store on Banff Avenue dates back to the reign of Queen Victoria and is the story of the main street itself. 

Michael Kehoe

“Banff Avenue grew up around The Bay store and many small market western Canadian Hudson’s Bay stores descended from fur trade outposts,” he said.

“Often, the small market western Canadian Bay stores were the most important commercial building in the market second only to the train station in railway towns. The Banff store was the only source of department store type merchandise in the Bow Valley for many years. The store fell into a sort of ‘retail purgatory’ of mediocrity and neglect as it seemed to be an afterthought at the big Company. The prime Banff Avenue display windows often featured a canoe and Hudson’s Bay blankets, a sort of homage to the firm’s colonial past that is out of step with current tastes and trends that drive contemporary all-season resort retailing.

Floor Plans for Former Hudson’s Bay Store Building 125 Banff Avenue, Banff (Image: Avison Young)

“The Banff economy is 90 per cent based on tourism according to the local authorities. The tourism sector, which includes retail, accommodation and food services, transportation and arts, entertainment and recreation are big business in the Bow Valley. The Banff economy is firing on all cylinders and 2023 is expected to be another banner year for tourism and retail and food and beverage sales.”

He said Banff National Park is a world-famous United Nations Heritage Site encompassing hundreds of square kilometres of mountains, glaciers, forests, alpine meadows, lakes and rivers – in a spectacular Rocky Mountain setting on the Alberta-British Columbia border. Banff is a major destination for the vast majority of the over four million tourists who enter the National Park gates each year.  A long-time magnet for foreign visitors, Banff is a big draw for Canadians who arrive with money to spend on everything from hotels, recreation activities, fine art to family and fine dining.

To refer to the Banff Hudson’s Bay store as a landmark is an understatement, added Kehoe.

“Situated mid-block on the sunny side of the street along the coveted 100 block of the main street, this location is a prime redevelopment site. Expectations are high for a new owner of this building to attract impactful Canadian, world-class experiential retail and food service tenants to Canada’s first National Park.”

Image: Avison Young
Photo: Can Pac Swire via Flickr

The first Hudson’s Bay department store in Banff opened at 202 Banff Avenue in 1935 according to the Crag & Canyon, and the building is still standing to this day and is named ‘Caribou Corner’. In 1947 Hudson’s Bay relocated to its current 125 Banff Avenue location which was expanded by annexing a restaurant space in 1979.

A previous Retail Insider story explained: “Over the years the 125 Banff Avenue Hudson’s Bay store has sold a wide variety of merchandise including fashions, handbags, accessories and cosmetics, as well as the iconic HBC stripe merchandise that has proven popular with tourists. Fur coats and accessories were also part of the mix in decades past as the Hudson’s Bay Company was a seller of fur garments, having begun in the fur trade in 1670. 

“The configuration of the current Banff Avenue Hudson’s Bay store is rather awkward, with each level spanning just under 10,000 square feet. That includes a street level and a basement level that features remarkably low ceiling heights. Given the low ceiling heights in the basement and the single-level above ground, the Banff Hudson’s Bay store could be ripe for redevelopment. That could include demising the street level into multiple retail units, or demolishing the building entirely for something new. The store boasts 75 feet of frontage on Banff Avenue and a lot depth of more than 130 feet. Hudson’s Bay owns half the building at 123-125 Banff Avenue, and another company owns the other side according to a report in RMO Today.”

With Lower Commodity Prices, Why Aren’t Food Prices Dropping in Canada? [Op-Ed]

By
Sylvain Charlebois
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Apples at Shoppers Drug Mart on King Street in Toronto (Image: Dustin Fuhs)

Many Canadians are wondering why food prices are not dropping at the same rate as agricultural commodity prices right now. Last year, the devastating invasion of Ukraine by Russia pushed prices to astronomical levels. One year later, the agricultural commodity landscape looks incredibly different.

Prices for such commodities have dropped significantly in the last 12 months. Wheat prices have dropped by a whopping 47% since last year. Corn is down 22%. Soy is close to corn, down 23%, while oats are down 31%. Other commodities are also down: coffee by 21%. canola by 42%, sunflower oil by 60%, and pork by 31%. Chicken, a very popular animal protein globally, is down 16% while eggs are down 56%. As for dairy, cheese is down by 30% from last year, along with milk by 36%. And the list goes on and on.

It is indeed tempting to think that these prices should in turn have a bearing on grocery prices. Input costs do impact prices, but not in the ways you might think.

Our research group, along with the University of Guelph, the University of Saskatchewan, and the University of British Columbia, concluded many years ago while working on Canada’s Food Price Report that commodity prices have little to do with retail prices in the industrial world, including in Canada. The reality is that the correlation between commodity prices and retail prices is, for the most part, weak. They can affect retail, given time, but the effects are still minimal.

The reason is simply this: a number of factors will increase prices at retail. These include labour challenges and wages, along with measures like carbon pricing and currency fluctuations. There is also the issue of food geopolitics, which includes trade restrictions and embargoes. Not to mention packaging costs and adjustments to changing regulations, food safety measures, and the list goes on. Supply chain economics are impacted by many factors, especially in advanced economies, where the effect of numerous transactional costs outweighs how inputs impact retail prices. 

We also need to remind ourselves that food companies will have contractual arrangements, which may or may not help them keep costs down. These contracts will commit companies to paying similar prices for several weeks, sometimes months, at a time. So it’s quite challenging to gauge how fluctuating commodity prices will impact food prices over time. But if they do impact prices, expect some lag, except with categories like fresh produce, since there is little or no processing involved. Produce is by far the most volatile food category out there, for that very reason. 

Policies also play a role. Canada has supply-managed commodities like chicken, eggs, and milk. Global price fluctuations don’t mean much to us, since the intent of the supply management regime is to stabilize prices and assure Canadians have a steady supply of such commodities. Comparing Canadian dairy, poultry, and egg prices to those in the rest of the world is like comparing, well, apples to oranges.

But the other culprit rarely talked about is public spending. Over the last few years, since the start of the pandemic, many governments including Canada’s have spent a significant amount on providing socioeconomic safety nets for those in need. Companies have also received funding to cope with economic uncertainties. The “grocery rebate” 11 million Canadians will receive on July 5 won’t help our inflation problem one bit. Coupled with many provinces sending more money to voters as they politicize food inflation, this extra $2.5 billion program could push food prices higher, hurting more people along the way.

That is mainly why governments don’t mind the attacks aimed at grocers and the food industry. They make for a convenient distraction, getting consumers to avoid focusing on how governments have really made food inflation an unmanageable problem for many. Call it policy pivoting, if you will. It’s much easier to point the finger at the likes of Galen Weston than explain to the populace how monetary policies actually work and how they can work against consumers over time.

At least Canada is not implementing measures like those in the U.K. British supermarkets are facing pressure to cap food prices on select foods, with a voluntary approach allowing retailers to pick which items to offer at lower rates. This type of measure can only lead to chaos, higher food prices, and more shortages over time.

In the end, supply chain economics are hard to understand, even for farmers. They have always been frustrated by how retail prices rarely reflect the prices they see on the farm. Their piece of the action seldom grows with food inflation. It’s not supposed to, unless farmers are vertically integrated, and few are. Price-taking entanglements are just different.

Montreal Startup ‘Cozey’ Disrupting the Furniture Industry with Expansion that Includes 1st Toronto Store [Interview]

By
Mario Toneguzzi
-
Cozey at Stackt Market (Image: Dustin Fuhs)

The idea for furniture brand Cozey came to Frédéric Aubé when he was a student at McGill University in Montreal studying finance and economics.

Frédéric Aubé

The idea began in 2019 and the brand was launched initially online in June 2020. 

“The idea for Cozey at first was just to create one simple sofa, elegant, easy to move, in boxes that could be assembled tool free, shipped to your door in a few days at a really attractive price point,” said Aubé.

“It was a test to see if other people had the same problem as me of moving sofas around in a move or assembling sofas that take four tools and 12 bolts. And if so, can I sell those sofas on the internet.

“It was one sofa, four colours, really simple. And that’s how it started.”

Cozey at Stackt Market (Image: Cozey)
Cozey at Stackt Market (Image: Cozey)

The concept was purely digital until recently when it opened a pop-up location at Stackt Market in Toronto. It is opening up its first store in Toronto on Queen St and Ossington Avenue in September in 3,600 square feet of space.

“It was the perfect timing to launch a sofa brand on the internet. We were in the midst of the pandemic where all the stores were closed. Everybody was looking for furniture and we had furniture in stock because of our model we hold the stock in and ship out directly to the customers’ homes. The business model was perfect because we had stocked and because we were able to serve customers,” said Aubé.

“So the reception was above and beyond all of my expectations and it’s been like that since the beginning.”

Image: Cozey

Aubé said Toronto is the company’s biggest market as the most populated city in Canada and one of the most populated cities in North America. 

“I always say win Toronto, win Canada and for us it was important to be close to our best customers, close to our biggest market and really offer the seven-star experience that we want to offer and close the loop with the store,” he said. “A lot of people are coming every day and saying is there a place where they can try out the sofas.

“So we decided we’re going to test that with one store and if we’re going to do it we’re going to do it in our biggest market. It’s a perfect sofa for a city like Toronto with tight spaces, smaller apartments, being fully modular, ship in boxes, it fits through any door, it’s delivered quick, it’s just an easy experience perfect for the Toronto market.

“Lots of companies have gone too quick in trying to open up new stores. And not really getting the recipe right. And that’s really what we want to do. Get the recipe right. Learn. And then once we figure out if the store and the retail locations make sense, then to scale across Canada and across the U.S. But we want to take it slowly until we find the right recipe.”

Cozey at Stackt Market (Image: Dustin Fuhs)
Future Cozey on Queen at Ossington (Image: Dustin Fuhs)

He said Cozey was never meant to be for students because of the price point.

“But I really wanted it to be the perfect sofa for any type of room whether it’s your first living room sofa, your basement sofa, and just trying to bring the best quality at the best price point possible. It started with my own experience of moving things around,” he said.

“I think the sofa is the toughest item in the house to ship. So once we figured that out let’s go onto other furniture.

“One thing startups have in common is that they try to make the world a better place, by simplifying our lives. That’s what I want. A faster, easier, and effortless experience.”

Canadian Retail News From Around The Web For June 2nd, 2023

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Lululemon lifts annual sales, profit forecasts on steady demand (Reuters)

Pet retailer Chewy plans Canadian expansion (BNN)

BMO completes US$160M deal to purchase Air Miles loyalty rewards program (Canadian Press)

Consumers defy recession forecasts and spend, spend, spend (Globe & Mail / subscribers)

Subsidy program to fill empty storefronts would distort competition, Montreal merchants say (Montreal Gazette)

T&T opens doors to second Coquitlam, B.C. store (Grocery Business)

Shoplifting on the rise in Manitoba (Global)

New shop, café, studio space in downtown St. John’s offers an environment to explore, share creativity (Saltwire) ********

‘A time to be true to ourselves’: Alberta mom and daughter selling beloved country store (CBC)

Quebec’s Bill 96 introduces new provisions affecting small to medium-sized businesses (CityNews)

Retailers Brace for Impact: Navigating the Rise of Remote Work in Canadian Downtown Cores [Expert Interviews]

By
Shelby Hautala
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Ste Catherine at Peel St in Montreal (Image: Craig Patterson)

As remote work increases in popularity, you might wonder how this new trend is affecting retailers – especially downtown cores in Canada. Retail experts Rocco Mateo, Tim Kocur, and Lisa Hutcheson discuss the impact remote work has on retailers and what can be done to minimize the hit.

“In the long-term I think a lot of retailers are going to suffer as more people work remotely, especially in the downtown cores and landlords will also find it very difficult to fill up their spaces. From a work-family balance, I think working at home has done a lot of good; however, there will be a retail impact coming out of this for sure and retailers need to reinvent themselves,” says Rocco Mateo, a Retail Executive in Montreal.

Rocco Matteo

As working remotely has become the new normal, companies have been trying to find a new work balance and it has become a difficult debate throughout the country. Although working remotely has its benefits, it could also impact retailers in cities. Recently in Halifax, Nova Scotia, the Halifax Chamber of Commerce announced it wants municipal employees to return to the office for at least four days a week to bring back traffic to the downtown core. The Chamber is hoping this will bring back vibrancy and increase spending downtown, but is this the right direction?

“I think Halifax is at the forefront of what a lot of organizations will do right now, but it is not viable for the long-term. I think a lot of retailers will suffer, especially in the downtown core and office spaces. So I would suspect that some announcements will be made from major employers to get people back into the office. Maybe not on a full-time basis, but definitely at a minimum of three days a week at the office for sure and I think it is very important for the viability of our economic situation,” says Mateo. 

Ste Catherine, Montreal (Image: Craig Patterson)

Mateo says in Montreal, more than half of people are working from home at least three to four days a week and has seen it impacting downtown. Before Covid, Mateo says most people worked five days a week in the office and went out for lunch but now, those lunch spots for example are suffering because they are not having the same amount of traffic and same goes for retail shops. 

To help with this transformation, Mateo suggests retailers need to be placing more effort into their e-commerce platforms as until people return back to office, more people are purchasing online. 

“We definitely have been seeing more retailers work a lot harder on their e-commerce platforms because their customers were no longer going into the store since they were working remotely. And retailers also need to create a wow factor and go above and beyond with customers and step up in the game and work hard to keep their customers loyal,” says Mateo. 

No Time for Shopping 

CF Toronto Eaton Centre on Wednesday, May 31st (Image: Dustin Fuhs)

People who do spend two to three days in the office already do not have the same amount of time they used to compared to full-time in office, shared Lisa Hutcheson, the Managing Partner of J.C. Williams Group. Hutcheson says the Toronto downtown core has “really seen the brunt of remote work on retail” and also has noticed employers are not socializing or shopping as much as before Covid as much as they used to. 

Lisa Hutcheson

“When employees come into the office today, they are staying focused because if they are commuting – they are not doing it for shopping, they are doing it to put their time in the office,” says Hutcheson. “Before, there would be some spillover and more socialization, but people have gotten out of the habit of that social element at work because they are only there for a shorter period of time. Now, employees want to make sure they are being productive and they are not going out shopping like they used to.”

To survive the new work lifestyle, Hutcheson suggests retailers need to start understanding what their customers want from a shopping experience while they are in the office and start looking at new ways they can pivot their business to meet what the new working consumer wants. 

“Although companies keep wanting to mandate people to come back full-time, I think we have created a workforce that has identified that people can work hybridly. And the retailers that are winning and the properties that are winning, are really working hard adjusting on how they serve the customers,” says Hutcheson. 

Adjusting to the new consumer base could be looking at extending or shortening retail hours, accessing consumers more through emails and social media platforms, having special events, or promotions. Understanding when people are working in the city is also important as Hutcheson says some people are not even in the office for the full day, but leave at around two “as they don’t stick around anymore after a meeting – they are gone, so how will retailers address this?” 

Union Station in Toronto at 145pm on Monday, May 29th, 2023 (Image: Dustin Fuhs)

Tim Kocur, the Executive Director of the Waterfront BIA, also says understanding the new work environment is crucial for retailers. Currently, Kocur says the city looks different depending on the day as mid-week has significantly more traffic compared to Mondays and Fridays. He has found that mid week is almost back to normal with sixty percent of people working in office; however, on Fridays the number goes down to twenty-seven percent. 

Tim Kocur

“If people are coming in fewer days they are more likely to miss Monday and Friday especially, so retailers need to adjust to that and in some cases, food courts in the office buildings on Tuesdays, Wednesdays, and Thursdays have been busier than ever before because people are excited to go to the nice coffee shop now that they are in the office two to three days a week, but Mondays and Fridays are where it is nowhere close to the percentage of pre pandemic average,” says Kocur. 

Due to the changes on different days, to adjust to the new remote culture, retailers should make changes to their hours of operation. For example, Hutcheson suggested on busier days to be open longer and maybe on Mondays and Fridays, to shorten them. Each city has different working vibes and retailers need to be aligned with what works best for their city. 

Kocur says the problem goes beyond retail experience, as even if people worked remotely full-time, the city and retailers should create experiences to attract consumers back to shopping downtown. Mateo in Montreal says that the city is creating more experiences to draw people downtown including a lot of festivals lined up for the summer, “which will push people to downtown Montreal,” says Mateo – and other cities should do the same. 

Queens Quay on the Waterfront (Image: Dustin Fuhs)

“A key concern over the next few years was to make sure that retail fills in with a vibrant and inviting retail experience. For example, coming down to see the new amenities, new restaurants along the waterfront, new patios for the summer, and creating events that encourage people to come downtown outside of work,” said Kocur. 

As the debate of remote work versus in office continues, Kocur, Hutcheson, and Mateo agree that there needs to be a balance between the two. However, either way retailers need to make changes because as employees get used to working at home, it is unlikely people will want to return to the office on a full-time basis and retailers are going to have to find new alternatives to reach consumers throughout Canada. 

CBRE’s Urban Retail Team Partners with Joey Restaurants to Expand Presence in Downtown Toronto [Interview]

By
Mario Toneguzzi
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JOEY Yorkdale (Image: Olson Kundig)

Real estate company CBRE’s Urban Retail Team is working with the Joey Restaurant Group as their exclusive broker to assist with site selection for expansion of the brand across downtown Toronto. JLL is representing the chain for its expansion in the rest of Ontario.

Teddy Taggart

Teddy Taggart, Associate Vice President of CBRE’s Urban Retail Team, is working with Arlin Markowitz, Executive Vice President of the Team, to find locations in urban Toronto on high streets, downtown street fronts only and not any malls.

Arlin Markowitz

He said expansion is planned for both the Joey brand and its sister brand Local.

The casual restaurant concept, based in Vancouver, currently has 23 locations in Canada and eight in the U.S.

Joey at CF Toronto Eaton Centre (Image: Joey Restaurants)

Canadian locations include four in Calgary, four in Edmonton, one in Kelowna, two in Ottawa, five in Toronto, five in Vancouver and two in Winnipeg. In the U.S., there are four in California, three in Seattle and one in Texas.

“Both concepts have been performing very well for them,” said Taggart. “And they’re just looking to expand. They have a couple of them in each market now but they’ve been performing quite well as of recently post-COVID. So they’re just looking for a greater presence across both markets for both concepts.”

Taggart said they are looking for spaces of more than 4,000 square feet but the sweet spot is closer to 6,000 to 8,000 square feet with a patio and parking.

JOEY Bentall One in Vancouver (Image: Joey Restaurants)

“In terms of locations, Joey would be more sort of front and centre flagship. Think the (CF) Eaton Centre (in Toronto). High footfall. High density areas. Whereas Local it targets more neighbourhood. It might skew slightly younger, a little more approachable as a brand, and they also look for patios as well. But the Locals would be more like a local public eatery in a traditional sense hence the name. Both do a great job blending a fun environment with high energy but also do a much better job with the food menu than maybe your traditional pub style operator.

“It’s a good sign of the status of the F&B (food and beverage) market. There’s a lot of concerns about how they were recovering post-COVID and these guys are saying we’re doing more of these and we’re seeing great sales. It’s a nice messaging from a retail perspective that restaurant operators are doing quite well these days.”

Lawrence Hildebrand

Lawrence Hildebrand, EVP at JLL Canada Retail, is handling the expansion of Joey and Local for the rest of Ontario outside of downtown Toronto, including potential locations in Ottawa which is a targeted city for the chain.

Hildebrand said, “For the Joey brand, prominent locations in the 7,000 to 7,500 square foot range are ideal.  Having a significant patio in the 2,000 to 2,500 square foot range is a vital feature.” 

“For Local, the search is for spaces in the 4,000 to 4,500 square foot range, with a patio in the 1,500 to 2,000 square foot range.  Locations with patios that can be used year round or during inclement weather are preferred.”

JOEY at CF Rideau Centre (Image: Joey Restaurants)
JOEY Chinook Centre (Image: Joey Restaurants)

The first Joey opened in 1992.

“Like most of JOEY management, CEO Jeff Fuller started his remarkable journey flipping burgers, washing dishes and sweeping floors. It’s called paying your dues, learning from the ground up and understanding what success takes. “If there’s a secret,” he says, “it’s hard work, unwavering commitment to the customer and assembling the very best people”,” says the company on its website.

“Jeff absorbed valuable lessons from his family’s successful businesses before striking out on his own with a brand new concept in upscale casual restaurants. The first JOEY opened in 1992 and, as word spread, plans for a second location were quickly in the works. Today there are 30 JOEY Restaurants across Vancouver, Kelowna, Calgary, Edmonton, Winnipeg, Toronto, Seattle, California and Texas. Our model isn’t to repeat formulas but create spaces perfectly suited to the locale and its clientele. Each JOEY restaurant is unique, but they all have plenty in common: great food, lively environments, exceptional dining experiences.”

Courtney Stewart, Coordinator, Real Estate for the Joey Restaurant Group, said the restaurant brand is looking at major urban downtown cores and very busy dense areas for expansion.

“We’re really looking for really unique offerings . . . unique prime real estate,” said Stewart.

What’s Canada’s Food Supply Looking Like These Days? Interview with Sylvain Charlebois

By
Mario Toneguzzi
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St Lawrence Market in Downtown Toronto (Image: Dustin Fuhs)

In 2022, some food industry sectors in Canada, such as fresh produce and poultry, experienced record production. However, some sectors exported more food internationally in 2022 than in 2021, according to Statistics Canada.

“In addition, the food industry was affected by supply chain issues related to the COVID-19 pandemic, such as shipping delays, product and labour shortages, and price increases,” said the report.

From 2021 to 2022, the amount of fresh fruit (including citrus) available declined by 5.1 per cent to 72.9 kilograms per person. A 12.7 per cent increase in production was not enough to keep pace with an increase in exports (+16.8 per cent) and manufacturing (+13.2 per cent) and a decrease in imports (-3.6 per cent). The total amount of processed fruit available per person in 2022 increased by 4.9 per cent from the previous year to 17.1 kilograms of fresh fruit equivalent, said Statistics Canada.

In this video interview, Dr. Sylvain Charlebois, Senior Director, Agri-Foods Analytics Lab, Dalhousie University, discusses the state of food production and availability in Canada as well as issues the industry is facing when it comes to supply chains, shipping, labour and prices.

Farm Boy Sugar Wharf (Image: Dustin Fuhs)

In 2022, the availability of fresh vegetables (excluding potatoes) was 64.7 kilograms per person, a decrease of 5.9 per cent from 2021. While fresh vegetable production increased 3.9 per cent in 2022, imports declined 7.5 per cent and exports rose 7.8 per cent. Similarly, the availability of processed vegetables (35.0 kilograms of fresh equivalent per person) decreased by 3.2 per cent from 2021, said Statistics Canada.

“From 2021 to 2022, total poultry availability increased by 1.5 per cent to 25.5 kilograms (boneless weight) per person. Poultry exports were down 11.0 per cent from 2021. Red meat availability increased by 4.3 per cent in 2022, compared with 2021, to 32.4 kilograms (boneless weight) per person. Beef availability led the way in 2022, at 15.5 kilograms (boneless weight) per person (+2.9 per cent from 2021), as cattle slaughter increased from 2021. Pork availability in 2022 was 14.7 kilograms (boneless weight) per person (+6.6 per cent from 2021), as exports declined by 5.1 per cent from 2021,” added the report.

“From 2021 to 2022, egg availability increased by 0.6 per cent to 21.5 dozens per person, as egg production increased for the 18th straight year.

The availability of total milk decreased by 3.9 per cent in 2022, compared with 2021, to 58.6 litres per person. This was primarily caused by a drop in production of one percent milk and two percent milk. Total cheese availability decreased 1.4 per cent to 14.2 kilograms per person from 2021 to 2022. The amount of total cheese available in Canada increased by 0.4 per cent from 2021 but was outpaced by Canadian population growth.

“Availability of wheat flour increased by 2.0 per cent to 59.2 kilograms per person in 2022, compared with 2021. This gain was driven by improved growing conditions across Western Canada, which yielded a 4.1 per cent increase in wheat flour production, compared with 2021.”

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 Retail News From Around The Web For June 1st, 2023

By
Retail Insider
-
Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 2 days.

Selwyn Crittendon named new chief executive at Ikea Canada (CTV)

11,000 workers poised to bargain with large Canadian grocery retailers (Grocery Business)

Freedom Mobile workers seeking union after acquisition: Teamsters Canada (BNN)

Laid off Shopify workers launch class action suit over misleading severance packages (CBC)

Walmart, Empire, Calgary Co-op winners of retailing excellence awards (Grocery Business)

Winners of the 30th annual Canadian Grand Prix awards (Grocery Business)

Vancouver’s celebrated Dayton Boots changing its name to Wohlford & Co. in forced rebranding (CBC)

After more than 90 years, it’s time to rebuild iconic Halfmoon Bay General Store (Vancouver Sun)

‘Our final farewell’: Vancouver’s first package-free grocery company shuttering for good (VIA)

Workspace of the Month: Inside SSENSE’s State-Of-The-Art Montreal HQ (Canadian Business)

Popular liquidation store finds new home in downtown Orillia (Orillia Matters)

RONA affiliate dealers open first urban store in the West (Hardlines)

Giant Tiger opens store in Huntsville ON (Newswire)

Kal Tire acquires Frisby Tire’s Ottawa-area stores (Jobber Nation)

Hidden camera found in Aritzia employee washroom, Halton police investigating (CityNews)

Opinion: Ford government should just go ahead and privatize Ontario liquor sales (Yahoo)

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