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Ghost Kitchen Concept ‘Kitchen Hub’ Plans Significant 50 Location Cross-Canada Expansion: Interview

By
Mario Toneguzzi
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Image: Kitchen Hub (Parliament Street)

The idea for the unique Toronto-based Kitchen Hub food hall concept, basically a ghost kitchen housing multiple foodservice partners, was born in Adam Armeland’s mind one day while on paternity leave and recognizing the number of people buying food to go at a certain establishment.

Adam Armeland
Adam Armeland

Today, Kitchen Hub has plans to roll out eventually across the country with more than 50 locations.

While on parental leave, Armeland would always go to a place called Pazza Pazza on Eglington to pick up food for the family. It was his way of ‘cooking’ for his family when he was busy taking care of his daughter.

“What I kept on noticing time and time again, and it was like an anvil hitting me over the head a bunch of times and eventually I perked up and noticed it, was a bunch of parents and drivers constantly flowing through. It was people picking up, people driving, people picking up, people driving. A couple of people sitting in the seats. You couldn’t help but notice the steady flow of traffic that was happening,” said Armeland.

“That was the aha moment. I realized that people were busy and they were looking for quality food provided conveniently. Toronto’s known for incredible food and we’ve been written up globally . . . and at the time off-premise was on the rise. DoorDash was just coming to Canada. Uber Eats had set down their footing. And you saw all that stuff increasing.”

Image: Kitchen Hub (Parliament Street)

The thought came to Armeland. Can you drive down real estate costs by using more than one brand in a location? Can you sell only through digital channels? And can you drive down the cost of operations by co-locating the foodservice brands?

The first Kitchen Hub began January 2020 with a location in Etobicoke on The Queensway. A second location then opened up in Toronto’s east end at Parliament and Shuter Streets and now a third is opening up at Castlefield Avenue and Dufferin Street with 13 kitchens on one site in 10,000 square feet of space. The third location will be ready for the end of October/early November.

“At the end of the day what we’re trying to do is bring amazing food and restaurants to new neighbourhoods and we do that by providing them with the infrastructure and services for them to be successful in the on-demand food economy,” said Armeland.

“So we have multiple restaurants in one facility and we focus on the restaurants and their success. We equate internally their success to our success. The restaurants trust us and they’re able to grow with us because they’ve been moving from site to site with us. We have the same brands showing up a bunch of times, time and time again.”

Beyond the infrastructure provided, Kitchen Hub also provides restaurants with other services which makes it easier to operate such as front of house, facility management.

“What that allows a restaurant to do is focus on what they do best, which is cook,” said Armeland. “So we’re getting rid of all that up front headache and all the ongoing headaches and really letting them focus down on chefs, food and execution.”

The concept also creates new channels for restaurants to sell through which gives them access to new revenues they wouldn’t be able to get on their own. All restaurants can be accessed through one delivery channel.

Armeland said some of the company’s competitors in the U.S. go up to 40 different brands from one location.

“That’s not our strategy. What we’re trying to do is we’re trying to curate a food hall for an area and become the amenity to an area and when they think about food they come to us. We think the best way to do that is to make sure we’re bringing in quality brands for that area to cater to the tastes of that area,” he added.

“We don’t want to have overlapping cuisines necessarily because we want to have the best of each category available to a given area. Our goal is 10 to 20 probably per location and if you get beyond that then you’re really starting to get into overlapping categories and really not relying on everybody coming together and promoting themselves up.

“The goal is to show up in an MLS listing and be seen by the consumer as an amenity to the area.”

Armeland said takeout and delivery of food has grown exponentially recently across Canada.

“The opportunities are really available everywhere where the delivery apps are which is really every city in Canada. For us, we look at it as an opportunity to grow in Toronto because Toronto is the biggest market for food in Canada and if we can conquer that market that’s where we’re focused at first,” he said.

“And then we’re looking to expand in all the other markets that food delivery and takeout is prevalent. The road map of 50 (locations) brings us right across Canada and allows us to provide that food to really every densely populated neighbourhood in Canada.”

Canadian BIAs Representing Main Streets Across the Country Set To Take on Greater Role in Post-Pandemic World: Feature

By
Sean Tarry
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Supporting Local Businesses in the Beaches BIA - Photo by Dustin Fuhs

There has been so much change that’s occurred throughout the retail industry as a result of the pandemic that it’s boggling for most to comprehend, even among those who have experienced the impact firsthand. The disruptive and unsettling nature of the effects of COVID-19 have forced pivots and shifts, accelerated numerous trends and consumer behaviours and has elicited a reaction from the industry, a response to the ways the consumer wants to shop and engage with their favourite brands. To do so during such tumultuous and uncertain times is proving to be a monumental task for most operating within the industry, let alone for small businesses across the country that are without the human and capital resources of the bigger players. And, according to John Kiru, Founder of Digital Main Street and Executive Director at Toronto Association of Business Improvement Areas, the heightened challenges and needs of Canada’s small business community presents an opportunity for municipal legislation to change and for BIAs to play an even more important role in the communities and neighbourhoods that they serve.

“We’re currently working with legislation that’s fundamentally 50 years old,” he says. “It was nearly a half century ago when the Municipal Act allowed municipalities to established Business Improvement Areas, and it hasn’t changed much in that time. And when you match that against the way things have developed around us in just about every single way, there’s definitely an opportunity for BIAs to become more involved – involvement that will be supported by a proper review of the legislation that governs what BIAs can and can’t do. It’ll hopefully prompt a wholesome discussion concerning the ways BIAs feel they can contribute to the health and wellbeing of their communities and lead to amendments to legislation to allow for more progressive thinking.”

Significance of the collective

Traditionally, since the world’s very first BIA was formed in Toronto’s Bloor West Village in 1970, the most significant aspect of their existence, explains Kiru, is the fact that they represent a collective effort within a given geographic area to which everyone contributes towards the economic and social wellbeing of that area.

“As an independent retailer, without this type of organization, your marketing dollars only go so far,” he says. “But when you can collect fees through a BIA, it allows the merchants in that area to hire someone to execute on marketing or advocacy and develop a plan that might be out of the reach of most small businesses. If the BIA does its job, then it becomes a bit of a self-help mechanism for independent merchants who contribute above and beyond their taxes to the collective with the knowledge that all of that money is going to go back into that community and be spent in that community. Essentially, with rising tides, all boats are lifted.”

Opportunities for BIAs

Without such a collective, Kiru suggests that many small businesses would, removed from their own doing and effort, fall by the retail wayside. But, as important as their introduction was 50 years ago, a lot has changed within the country since the inception of the idea of the BIA. And, combined with the unfortunate and challenging circumstances surrounding the COVID-19 global pandemic, the ways in which a BIA could help support the efforts of their local business community are numerous and immense.

“There will be a lot of real estate vacancies in a post-pandemic world,” Kiru points out. “And so, how do BIAs become engaged to ensure that those vacancies are filled? Perhaps its through a retail mix strategy, which shopping centre landlords are really good at formulating, where they place a number of shoes stores, apparel stores, jewellery stores and the like in an area because they know that it causes a natural flow. BIAs and main streets traditionally don’t apply that wisdom. If a neighbourhood were to follow a similar kind of retail mix strategy, they have the opportunity to turn their community of shops into a destination that draws people in from the outside, generating traffic for every retailer within that area.”

Reimagination and reinvention

He goes on to explain that these types of pointed retail strategies go a long way toward strengthening and enhancing the retail experience that an area offers to customers, resulting in footfall that retailers will be desperate to command over the course of the next 6 to 12 months and beyond. He says that, moving forward, perhaps the biggest challenge and opportunity for retailers on main streets across the country is going to be not only getting people to visit their neighbourhoods, but to bring them back multiple times through the week and month, presenting BIAs everywhere with a chance to meaningfully shape the future of their local economies.

“These are obviously extremely unique times that retailers are experiencing,” he recognizes. “It presents all merchants with huge challenges to overcome. But it also provides opportunities for BIAs representing main streets across Canada to reimagine what they do, the services they provide and the overall benefit that they deliver for their members. They need to be creative in attracting visitors from further afield than they’re used to and to leverage the tourism sector to entice people to come in and experience the local community, highlighting the uniqueness of that community and the diversity of voices and offerings. I’ve always said that in Toronto, you can experience the world in a culinary sense in seven days without a passport. It’s in this kind of way that the efforts of BIAs can be really significant in supporting local and regional economies as well as helping to boost tourism.”

Reinvigorating community

With or without the help and bolstering of BIAs, however, Kiru admits that it’s going to be a tough road ahead for many small and independent merchants across the country. He emphasizes the need to remain resilient and urges Canadian entrepreneurs to continue with their efforts as we approach what is hopefully the end of a very long pandemic period. And, with respect to the things that small business owners can do for themselves to further their endeavours, he says that now is a better time than ever to rethink, retool and reimagine in order to reinvigorate their communities and local economies.

“Going forward, recovery and merchants’ efforts to achieve it will be a significant focus. And they’ve got to take time to reimagine their business. Prior to COVID, there was a need to digitize and to transition brick-and-mortar to brick-and-clicks. Less than ten years ago, in fact, Amazon started to really move in and make an impact, and consumer habits and behaviours were changing. in response, small businesses needed to adjust and enhance their online and ecommerce presence and offering. However, brick-and-mortar is such a strong component of any neighbourhood, and its importance to those areas they serve will not diminish any time soon. And anything that BIAs can do to bring forward the value of main street businesses and attract interest in their offering will be critical in ensuring a recovery for the Canadian small business community and continued success in the future.”

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Consumers in Canada Walking Away from the Meat Counter as Prices Rise: Op-Ed

By
Sylvain Charlebois
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Image: Victory Meat Market

Unsurprisingly, the cost of living has been one of this election’s top issues. Most major parties have included measures to help Canadians, especially those with less means. However, according to some recent data, consumers are taking matters into their own hands to save a few bucks.

Meat represents a big portion of anyone’s food budget, roughly 20% on average. If saving money at the grocery store is a priority for someone, cutting meat is an easy target. Recent retail sales data suggest that Canadian consumers are already hedging against food inflation at the grocery store. According to some sources, meat sales have dropped significantly this year, especially in the last 12 weeks. Barbecue season is the most lucrative period of the year for the meat trifecta, which includes beef, chicken and pork.

Across the nation, beef sales in volume at the grocery store have dropped by more than 6% since May. Even in Alberta, cattle country, beef sales have dropped by more than 6% since May. It’s even worse for chicken and pork. Sales in volume for chicken have dropped by more than 12%, and pork 17%. In Ontario alone, pork sales dropped 20% this summer. Even if consumers were going out more this summer compared to this last spring, these drops are quite significant as many Canadians are clearly spending less time at the meat counter.

Meanwhile, retail prices are not shifting. While beef prices are up almost 10% on average since January, according to Statistics Canada, pork and chicken are also more expensive, despite sluggish sales. That’s why the “supply and demand” theory many mention when prices go up rarely makes sense at the grocery store. It’s more complicated than that. For grocers, the art of fixing prices in food retail is a blend between protecting margins and set price points based on what grocers believe what the market can bare. Despite lower retail sales, don’t expect prices to drop anytime soon. Higher grain prices, lower inventories and supply chain disruptions are making meat an increasingly expensive choice. 

Historically speaking, beef and pork are highly price-elastic, while poultry is relatively inelastic. In other words, consumers tend to react to higher beef and pork prices and tend to settle for chicken. Chicken is like the tide in meat counter economics. If chicken goes up in price, so will pork and beef because of its demand elasticity. And since grocers know that it is much harder to increase prices when offering discounts for an extended period, playing around with prices at the meat counter is not common practice.

This summer, all three components of the meat trifecta were severely affected by how consumers reacted to higher meat prices. In most stores, even if the “Enjoy tonight” deals, offering some products at 25% to 50% off at times can still be found, the perception that a trip to the meat counter will cost you dearly is now ingrained in many consumers’ minds. Many have been spooked now, and that’s never good business, especially for meat.

In 2014 beef prices indeed startled consumers with a 25% hike in just one month. Many consumers boycotted the meat counter, but only for a while. Sales came back while prices barely dropped. But 2014 was a different protein market. It was before the “Beyond Meat” craze of a few years ago. Most Canadians were heavily committed to animal proteins, mainly because they were not aware of other options. Today it’s different. As most Canadians remain committed to eating animal proteins, they are also game to venture beyond the meat trifecta and settle for other more affordable sources of proteins.

The hard reality for Canadians is this: Eating meat is a luxury in most places around the world and it is slowly becoming one in Canada as well. A harsh lesson of meatonomics for us all.  

Unlike regular meat, sales for meat alternatives have been slightly higher this Summer compared to this Spring, about 4%. Unlike a few years ago, Canadians are more aware of their options beyond the meat counter. An average Canadian family of four can spend anywhere between $2600 to $3000 on meat products in a year now. Reducing a meat budget can make a difference. Canadians won’t give up meat anytime soon, but other options are within grasp.

According to some reports, Canadians are more food literate than before the pandemic. Most of us know more recipes and are willing to get more creative in the kitchen, which in turn may empower many to consider other protein ingredients. If meat is pricing itself out of the market, so be it. Canadians can handle it, at least more so than they used to.

Retail Insider Articles

‘No-Shows’ Impacting Restaurants During Pandemic in Canada: Interview

By
Mario Toneguzzi
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OpenTable, the world’s leading provider of online restaurant reservations, has launched a campaign to let diners know the impact no-shows is having on the restaurant industry during this crucial period of economic recovery.

Matthew Davis

“When a diner doesn’t fulfill a reservation, it significantly impacts the restaurant’s revenue,” said Matt Davis, Country Director, OpenTable Canada, which has been available in this country for about 15 years. “At OpenTable, we have a responsibility to help build awareness of this issue and leverage our technology in every way possible to reduce no-show rates.

“To be honest, it’s always been somewhat of a problem. It’s just become exacerbated over the course of the pandemic given the fact that restaurants have less inventory or tables because of capacity restrictions. Whenever a diner doesn’t show up for a reservation, it makes more impact now than ever before because they could essentially wipe out that restaurant’s profit margin for the evening just by not showing up.”

To support restaurants through this period of recovery, OpenTable has launched ‘Show-Up for Restaurants’ to spotlight the impact of no-shows and to encourage diners to modify or cancel their reservation when plans change. OpenTable has added new tools and features to help restaurants prevent no-shows:

  • A New Way to Tag Diners: This new tool allows restaurants to label a diner as a potential no-show based on previous reservation activity. The tool allows restaurateurs to tag the diner with a new label, so they can be proactive about confirming attendance with the diner as their reservation approaches;
  • “Four Strikes and You’re Out”: OpenTable’s policy suspends diners who don’t show up for a reservation four times per calendar year. This policy is in addition to a number of features that OpenTable offers to mitigate no-shows, such as email and SMS reminders, prepaid experiences, availability alerts, customizable cancellation policies, credit-card required reservations holds and more;
  • Communicate Directly with Restaurants In-App: OpenTable’s new Direct Messaging feature allows diners to communicate with restaurants before and after making a reservation, without ever having to make a phone call. Direct messaging empowers restaurants to serve up better hospitality by reducing cancellations and no-shows and building stronger connections that keep guests coming back.

A recent survey from OpenTable revealed that 27 per cent of Canadians intend on eating out more frequently than before the pandemic.

Davis said no-shows impact restaurant revenues in a number of different ways.

First, when people make reservations the restaurants are planning for what business they’re going to get. When they are holding tables for reservations, they turn away walk-in customers. Potential revenue is lost.

Also, restaurants staff their restaurants accordingly depending on the expected business for certain days. With no-shows, restaurants are doubly hit. Not only are they not making the revenue but they’re paying out of pocket for being over-staffed.

And they might also have stock and inventory that might expire and go to waste.

“It’s a knock on effect all the way along,” said Davis.

OpenTable said almost one in 10 Canadians say they haven’t shown up for a reservation in the past year.

“We’re trying to spread the word in our Show-Up for Restaurants campaign. Really, at OpenTable we have a responsibility to help raise awareness of the issue and leverage our technology in every way possible to reduce no-shows for restaurants,” added Davis.

“It’s interesting because we’re seeing enormous demand for people to go out and dine in restaurants. That’s fantastic. So Canadians are really already showing up for restaurants and supporting them. During the lockdown they were doing take out and delivery and now that there’s reopenings they’re going out in droves to sit in patios or indoor. I’m really cautiously optimistic that we’re going to see that continue now that vaccinations are ramping up and different governments are mandating different policies. The news is good and the outlook looks positive.

“Restaurants have been supported really well by the Government of Canada and of course by the community of diners themselves. And oftentimes diners don’t realize that all they need to do is call to let the restaurant know that you’re not coming. That is so much better than not showing up for a reservation.”

Retail Profile: CF Rideau Centre in Ottawa, Ontario (Summer 2021)

By
Lee Rivett
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CF Rideau Centre. Photo: Dustin Fuhs.
CF Rideau Centre. Photo: Dustin Fuhs.

Retail Insider continues its Photo Tour series of Canadian malls which began as a result of COVID-19 closures. We have been providing insights into shopping centres coast-to-coast which may otherwise be overlooked. This edition takes us to the CF Rideau Centre in Ottawa, Ontario.

The three-level shopping centre contains approximately 160 retailers and businesses spread across 1,545,113 sq ft of retail space. Cadillac Fairview owns and manages the property.

Exterior of CF Rideau Centre (Aug 2021)
Exterior of CF Rideau Centre (Aug 2021). Photo: Dustin Fuhs.

The main anchors for the shopping center include:

  • Nordstrom (153,725 square feet)
  • La Maison Simons (103,874 square feet)
  • Zara (29,517 square feet)
  • H&M (28,336 square feet)

Junior anchor stores for the shopping centre include Old Navy (16,680 square feet), Urban Planet (15,922 square feet), Harry Rosen (15,483 square feet) and Shoppers Drug Mart (12,122 square feet).

Nordstrom in North End of Level 3 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

History of CF Rideau Shopping Centre

The shopping centre opened in March 1983 after two years of construction and a chorus of opposition from local residents. Eaton’s, which was a development partner, cancelled its plans to rename the mall to “Rideau Eaton Centre” due to negative community sentiment.

Rideau Centre construction on September 14, 1981. Lynne Ball/Ottawa Citizen 81-5172
Rideau Centre construction on September 14, 1981. Lynne Ball/Ottawa Citizen 81-5172

Cadillac Fairview spent $360 million to redevelop CF Rideau Centre in 2013 after 30 years of operation which was completed in three phases:

  • The first phase was completed in August of 2014 with the opening of the mall’s new enhanced ‘food hall’, in a lower-level space formerly part of a 240,000 square foot Sears store.
  • Phase two involved the opening of a 157,000 square foot Nordstrom store above the food hall in March of 2014, which was Nordstrom’s second Canadian location, following the opening of Nordstrom’s Calgary CF Chinook Centre store in September of 2014. The Ottawa centre has since seen new interior improvements, as well as the addition of new upscale retailers such as Tiffany & Co., Kate Spade, Stuart Weitzman, Ted Baker, and an impressive replacement store for luxury menswear retailer Harry Rosen.
  • The third phase occupies the northeast corner of the property, once occupied by an Ogilvy department store. For years the site remained under-utilized until Cadillac Fairview initiated an ambitious expansion to grow the centre to nearly a million square feet of retail space. CF Rideau Centre is considered to be one of Cadillac Fairview’s flagship properties, being located in downtown Ottawa on busy Rideau Street. The centre sees traffic from tourists, university students and locals, and is strategically located adjacent to the city’s popular ByWard Market.
Interior CF Rideau Centre (August 2021)
Interior CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

Aside from the retail and interior space additions and renovations, the redesigned centre included significant façade enhancements along Rideau Street including a refurbished Charles Ogilvy heritage façade. The interior renovation included new quartz flooring, enhanced lighting, glass guardrails and improved amenities. 

Breaking up CF Rideau Centre

CF Rideau Centre has three retail levels which we will follow from top to bottom for this tour.

Level 3 of CF Rideau Centre in Ottawa.
Level 3 of CF Rideau Centre in Ottawa. Photo: Cadillac Fairview with overlay by Retail Insider.
Level 2 of CF Rideau Centre in Ottawa
Level 2 of CF Rideau Centre in Ottawa. Photo: Cadillac Fairview with overlay by Retail Insider.
Level 1 of CF Rideau Centre in Ottawa
Level 1 of CF Rideau Centre in Ottawa. Photo: Cadillac Fairview with overlay by Retail Insider.
  • Level 3 (South/Left and North/Right): Main anchors include Nordstrom, Simons and Harry Rosen.
  • Level 2 (South/Left and North/Right): Main anchors include H&M and Zara which continue up to the lower level.
  • Level 1: Main anchors include H&M and Zara which continue up to the upper level.

Level 3 (South End) at CF Rideau Centre

South end of CF Rideau Centre on Level 3
South end of CF Rideau Centre on Level 3. Photo: Cadillac Fairview Map with overlay by Retail Insider.
South End of Level 3 at CF Rideau Centre (August 2021)
la Vie en Rose at South End of Level 3 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

The top-most retail level at CF Rideau Centre is the level with the highest retail density and major anchor tenants. Due to the volume, we split the level in half. Starting on the south side, a number of retailers were featured in Retail Insider including:

Additional select retailers include LensCrafters, Soft Moc, Fernandino, Mobile Klinik, Bluenotes, La Vie En Rose, Aveda, Marciano, Lululemon Athletica, FYE, Coach, Fancy Sox, Banana Republic Men, Swarovski, Nespresso, Kiehl’s Since 1851 and Femme de Carriere.

Nespresso and Marc Cain in South End of Level 3 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

Level 3 (North End) at CF Rideau Centre

North end of CF Rideau Centre on Level 3
North end of CF Rideau Centre on Level 3. Photo: Cadillac Fairview Map with overlay by Retail Insider.
North End of Level 3 at CF Rideau Centre (August 2021).

Continuing to the north side of the top-most retail level at CF Rideau Centre reveals another group of retailers featured in Retail Insider including:

Other select retailers include L’Occitane En Provence, Tumi, Talbots, Stitch It, A Buck or Two, Bikini Village, Frank & Oak, Rudsak, and Michael Kors.

Exterior of Nordstrom within CF Rideau Centre (August 2021). Photo: Dustin Fuhs.
Tiffany & Co, Ted Baker and Michael Kors in North End of Level 3 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

Level 2 (South End) at CF Rideau Centre

South end of CF Rideau Centre on Level 2
South end of CF Rideau Centre on Level 2. Photo: Cadillac Fairview Map with overlay by Retail Insider.
Level 2 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

Moving down a level, the second floor is home to a number of internationally recognized retail tenants featured in Retail Insider, including:

Other select retailers in the area include American Eagle Outfitters, Judith & Charles, Pandora, Banana Republic Women, L’Intervalle, Urban Planet, Michael Hill, Sunglass Hut, Sephora, Little Burgundy, The Body Shop, Key West, Lucky Brand Jeans, Lush Cosmetics, Nike, Fossil, New Balance, GAP, and Swatch.

Michael Hill in South End of Level 2 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

Level 2 (North End) at CF Rideau Centre

North end of CF Rideau Centre on Level 2
North end of CF Rideau Centre on Level 2. Photo: Cadillac Fairview Map with overlay by Retail Insider.
Peoples Jewelers in North End of Level 2 at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

Moving northward, the other half of the second floor is home to a number of internationally recognized retail tenants featured in Retail Insider, including:

Other tenants include Old Navy, Anthropologie, H&M, Zara, Spence Diamonds, Steve Madden, Zulu + Wolfe, Browns Shoes, Aritzia, MAC Cosmetics, Apple, Dynamite, People’s Jewellers, Aldo, Bath & Body Works, Eddie Bauer, DAVIDsTEA and Purdy’s Chocolate.

Level 1 at CF Rideau Centre

Level 1 of CF Rideau Centre in Ottawa
Level 1 of CF Rideau Centre in Ottawa. Photo: Cadillac Fairview with overlay by Retail Insider.
Joey Rideau Restaurant at CF Rideau Centre (August 2021). Photo: Dustin Fuhs.

The lowest retail level includes access to the LRT as well as a couple retailers featured in Retail Insider, including:

Other retailers in the area include Shoppers Drug Mart, Nutrition House, Bentley, Foot Locker, Call it Spring, Garage, Hot Topic, Lids, Nature Collection, Miniso, The Source, Urban Planet, EBX, Sirens, Sketchers, Roots, Disney Store, Vans.

We had a very interesting photo walk around CF Rideau Centre in Ottawa and we hope you enjoyed coming along with us. Don’t forget to check out our other retail photo tours over the past few months. Thank you for taking this tour with us.

In-Store Digital Technology Enhancements to Help Drive New Kind of Retail Engagement in Canada [Feature]

By
Sean Tarry
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Image: Snap Inc.

Throughout the past year-and-a-half, magazines, newsletters and websites everywhere have been presenting readers with scores of daily articles and news pieces highlighting the many shifts and pivots that have occurred within the industry since the onset of the pandemic. Much of the emphasis has been on the digitization of the retail business. And, rightly so, given the fact that the digital efforts of most merchants have been accelerated by at least three to five years. It’s an acceleration that’s been brought about by COVID-induced restrictions on in-store activity and the consumers’ need to explore and discover alternate ways of shopping. And, according to a recent report produced by Snap Inc. in partnership with global consumer trends agency, Foresight Factory, the continuation of retailers’ digital innovation and adoption will be critical in engaging and attracting the interest of today’s tech-savvy consumer.

The rise of digital in the physical environment

The report, titled Future of Shopping: Canada Market Report 2021, analyzes the current shift in consumer shopping behaviour and how it might impact new and elevated digital expectations with respect to the post-pandemic retail experience. And, within its findings, it’s evident that retailers everywhere are being presented with a big opportunity to leverage the latest in digital innovation in order to enhance the physical in-store experience and drive a new kind of retail engagement. According to the report, 19 percent of Canadian consumers would go out of their way to visit a store that provided a service which offered instant access to stock information, a number that rises to 28 percent for millennials. Further, 47 percent of consumers say that they would use such a service if it was available in a store they already planned to visit. It’s engagement that’s centred around convenience and personalization and is a movement that Matt McGowan, GM of Snap Inc. Canada, doesn’t see slowing any time soon.

“The disruption to life over the past 18 months has underscored the growing importance of digital in the shopping experience,” he says. “We have seen brands step up to offer enhanced shopping experiences through things like virtual try-on and more seamless ecommerce capabilities. Consumers in turn have shown themselves to be more than willing to embrace digital shopping experiences, such as augmented reality, which many shoppers have come to expect. For example, our study with Foresight Factory found that more than 1 in 3 global shoppers already expect augmented reality to be available now when they’re shopping for items such as clothes, beauty, furniture, luxury and cars.”

Digital driving footfall

Image: Clearly

Beyond the expectations of today’s consumer, however, digital technologies used to create a more engaging and convenient experience for the consumer are set to reap dividends for the physical retail space. The report indicates that one in three (31%) of Canadian shoppers are willing to go out of their way to visit a store that offers interactive virtual services such as a smart mirror that allows them to try on clothes or makeup. In fact, McGowan explains that since Snap Inc., which owns social networking platform Snapchat, introduced augmented reality try-on experiences through its app in May 2020, engagement with the technology, and the rewards that retailers receive as a result, have been impressive.

“Since we introduced augmented reality try-on experiences just over a year ago, it has been inspiring to see the number of engaging campaigns from brands that have allowed shoppers to virtually try-on and shop products like shoes, makeup, eyewear, and more,” he says. “For example, Canadian eyewear retailer Clearly used Snapchat to drive a 3.6 percent purchase lift with their augmented reality try-on Lens.”

Mobile phones connecting the online and offline worlds

Despite enhancements that might be made to the in-store experience, however, the pandemic has influenced a shift toward online channels for purchases that is seemingly going to remain consistent going forward. The report finds that 1 in 4 Canadian shoppers intend to shop online even more in the year ahead compared to the last 12 months, compared to just 14 percent who say they will shop online less in a post-pandemic environment. Though increasing online activity may seem counterintuitive to the success of physical retail, the subsequent rise in mobile commerce has the potential to connect the online and offline retail worlds in a really profound way. According to the report, 1 in 2 Canadian shoppers say that they use their phone in-store to compare prices and look for product reviews and other information, while 45 percent admit that they would never go shopping without it, a number that rises to more than 60 percent among the Gen Z and millennial cohorts.

In fact, according to the report, the mobile phone has become more of a connector over the course of the past year-and-a-half, serving as a social conduit of sorts and means by which to shop, with 37 percent of shoppers sharing screenshots of products they’re interested in with their friends. Further, 31 percent of respondents say they have been sharing screenshots more frequently since the start of the pandemic. And the penchant to do so is even stronger among younger consumers, with 50 percent of Gen Z shoppers claiming that their screenshot sharing has increased over the past year-and-a-half. This behaviour presents big opportunities for retailers to engage willing shoppers. While much of this kind of activity takes place in private social channels and direct messaging, the report suggests that “branded social experiences can help consumers create easily sharable content beyond the simple screenshot”, enabling retailers to cultivate new relationships and continue developing those that have already been formed.

Ensuring a connected shopping experience

A lot has changed over the course of the past 18 months or so, changes that have gone a long way toward shaping a consumer that’s even more connected now than they were prior to the pandemic and influencing a further blurring of the lines between the physical and digital worlds. These changes have resulted in the formation of a single retail marketplace where consumers can leverage a confluence of channels and experiences to fulfill their desires. They’ve also precipitated a need for retailers to develop a clear understanding of their behaviours in order to satisfy their increasing appetite for digital experiences and support the enhancement of the offering they provide. And, according to the report, as consumers seek to build renewed connections with the physical world, but also retain the convenience of online, “Canadian retailers will need to test and evaluate the technological solutions -from virtual try-on to smart mirrors – which will achieve this and further accelerate connected shopping today.”

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Saks Fifth Avenue Flagship in Downtown Toronto Unveils New Birks Jewellery Boutique

By
Craig Patterson
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Birks at Saks Fifth Avenue in downtown Toronto on August 28, 2021. Photo: Craig Patterson

Saks Fifth Avenue in downtown Toronto at the CF Toronto Eaton Centre recently unveiled a boutique space for Montreal-based luxury jeweller Maison Birks. The Birks boutique replaces De Grisogono which shut down several months ago. 

Prior to Birks moving into the new boutique space, the brand had a counter on the main floor of Saks featuring various Birks designs. And this isn’t the first time that Birks has had a boutique space within the Hudson’s Bay building on Queen Street in Toronto — in 2015 when Kleinfeld Bridal opened on the seventh floor of Hudson’s Bay, a Birks shop-in-store featuring engagement rings was featured on site for a time. 

In May of this year, Saks announced that it had partnered with Birks with jewellery now being carried in 12 US Saks storefronts. The expansion followed the introduction of Birks products to Saks’ three Canadian stores at CF Toronto Eaton Centre, CF Sherway Gardens in Toronto, and at CF Chinook Centre in Calgary. Birks jewellery is also found on the Saks Fifth Avenue website. 

Other nearby jewellery boutiques at Saks in downtown Toronto include Piaget and Chopard boutiques.

Birks at Saks Fifth Avenue in downtown Toronto on August 28, 2021. Photo: Craig Patterson

TKEES Launches at Holt Renfrew Stores for September in a Global Exclusive 

By
Craig Patterson
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TKEES pop-up at Holt Renfrew Ogilvy in Montreal. Photo: Supplied

Toronto-based women’s footwear and apparel brand TKEES has partnered with Holt Renfrew to open apparel pop-up stores and areas at Holts locations across the country. As of this month Holt Renfrew is the only store in the world to feature the brand’s cotton terry apparel collection in stores and online. 

The TKEES brand was founded in 2009 by husband-wife team Jesse and Carly Burnett — Carly was seeking a sandal that would “disappear” on one’s foot and developed a line of sandals in a range of nude colours. The brand has since expanded to more colours (including white and black) with prices from $68 to $100 on Holt Renfrew’s website. 

The privately-held company with a head office in Yorkville recently expanded into apparel with a range of hoodies and joggers for women. The line is made from a plush cotton terry cloth that will be attractive to those working from home in the fall.  Hoodies on Holt Renfrew’s website are priced at $175 and joggers are priced at $160 a pair. Colours include black, mocha, latte and nutmeg. 

The collections are available at all Holt Renfrew stores in Canada (excluding the standalone Toronto men’s store) in Vancouver, Calgary, Toronto (50 Bloor St. W. and Yorkdale), Mississauga and Montreal (Holt Renfrew Ogilvy).

Holt Renfrew in Vancouver. Photo: TKEES
Square One in Mississauga. Photo: TKEES

Calgary’s Southcentre Mall Launches Indigenous Art Exhibit Ahead of September 30 National Day for Truth and Reconciliation

By
Craig Patterson
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Photo: Supplied

Southcentre Mall in Calgary and Colouring It Forward Reconciliation Society have partnered to launch a month-long art exhibit featuring 17 Indigenous artists from across Western Canada. The artwork is on display in Southcentre’s Art Corner space (near Hudson’s Bay on the second level) until September 30th. 

Artist bios are also displayed as well as messaging about the significance of National Day of Truth and Reconciliation and thoughtful suggestions about how people can respectfully participate in the process of reconciliation within their own communities.

Attendees will also have access to a dedicated resource centre where they will be able to ask questions and engage with members of Calgary’s Indigenous community in a safe space.

The exhibit will culminate in a special event that will pay tribute to National Day for Truth and Reconciliation (and Orange Shirt Day) on September 30th by inviting the Calgarians to gather for a day of community building that will help to deepen understanding of the experience of Indigenous peoples through traditional performances, family-friendly crafts and an invitation for open dialogue about Indigenous culture and the ongoing process of reconciliation. The opening ceremony, including traditional performances, will begin at 1:00pm on the 30th to be followed by all-day family activities (which are taking place 10:00am-8:00pm).

Photo: Supplied
Photo: Supplied

“We are honoured to have this opportunity to provide a platform that will allow for the amplification of the voices and stories of Indigenous peoples as they share their experiences, culture and heritage with the community at large,” says Alexandra Velosa, Marketing Manager at Southcentre Mall.

“We hope that this event will inspire others to take action to support Indigenous communities as we both acknowledge the past and work together towards building a better future where the traditions and culture of Canada’s Indigenous peoples are shared, celebrated and understood. We remain dedicated to working closely with the Indigenous community to further support and honour them as we increase our understanding of how they continue to shape our diverse country.”

Photo: Supplied

Canadian Retail News From Around The Web For September 7th, 2021

By
Retail Insider
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Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

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