“Imagine Together” will transform nine billboards along the outside of CF Toronto Eaton Centre that typically saw advertising into a collection of designs that focuses on the power of collaboration and interconnectedness.
The COVID-19 pandemic accelerated online shopping trends in Canada and a new survey by PayPal Canada indicates just how much consumers shifted their spending patterns.
The survey, titled Trends & Spends: PayPal Canada’s 2021 Consumer Shopping Study, found that Canadians overall increased their monthly online shopping spend by more than $2 billion compared to pre-pandemic.
Survey respondents said they are spending $178 per month shopping online, an increase of $69 compared to pre-pandemic. Across the country, this translates to almost $5.5B in current monthly online spending, said PayPal.
The survey found that 59 per cent of Canadians have boosted their online shopping habits compared to before the pandemic and the grocery sector in particular has seen a significant increase.
“An initial survey of Canadian consumers in March 2020 found that only 19 per cent engaged in online grocery shopping. In a second survey conducted in April 2020, only 30 per cent of Canadians purchased groceries online. Today, our most recent survey shows that number has jumped to 49 per cent,” said PayPal.
Image: PayPal
Jill Cress, PayPal Vice-President, Consumer Marketing, said only 44 per cent of consumers last year said they anticipated shopping online more than they were already. That has now jumped to 59 per cent.
Jill Cress
“Looking back at how overwhelmed we were at the challenges of finding toilet paper and hand sanitizers in store last year it’s great to see that just one year later, we are turning to e-commerce for all of our needs and the data shows this shift is here to stay,” said Cress.
“I think what happened during COVID was accelerating the relationship that consumers had with online commerce and the relationship with convenience, and being able to secure the goods in particular that they needed became so prevalent during COVID and now what’s playing out is the reality of just how convenient it is to shop online. If we look at that from a vertical standpoint, something like grocery shopping. We see that consumers still expect to shop online.
“While they may want to go into a grocery store to experience the produce department they don’t want to go into a grocery store and have to lug home heavy things like water or laundry detergent. So there’s the convenience that online delivery will continue to play as consumers emerge out of COVID.”
Some key findings from the PayPal survey:
Canadian women surveyed are more likely than men to have increased how often they’re shopping online groceries (36 per cent versus men at 26 per cent);
Ontarians are the ones who are more likely than others to have increased how often they’re shopping for groceries online (36 per cent compared to 24-30 per cent in other provinces.);
Home office furnishings and equipment (56 per cent), up from 42 per cent in April 2020;
Fitness equipment, apps, or programs (41 per cent), up from 25 per cent in April 2020;
School supplies (38 per cent), up from 23 per cent in April 2020;
Three in five Canadians (61 per cent) surveyed say they believe that cashless transactions will be part of their typical shopping experience and one in four (28 per cent) say they don’t expect to use cash five years from now at all;
Canadian consumers expect retailers to be innovative in their approach to keeping up with digital demand including offering drone deliveries (29 per cent), facial recognition for payment (25 per cent), virtual reality fitting rooms (17 per cent) and holographic representation of products (11 per cent);
For half of Canadians, the main deterrents to online shopping are the shipping cost (53 per cent) and the delivery time (51 per cent), as well as a preference to pick out their own products in person (50 per cent); and
One in five Canadians (19 per cent) say they are held back from online shopping because they are worried about safely transacting online.
Cress said Canadians spent more time at home and the desire to make their homes more comfortable for both the way they work and live was a key driver of the massive growth in home office furnishings and equipment.
“We were at home and we were looking for new hobbies, new ways to keep ourselves healthy, new ways to keep ourselves motivated. I think it was both the need for functional comfort as well as for ways to keep ourselves motivated and embracing some of those new hobbies and new ways of using that time at home in ways that felt rewarding to us as consumers,” she said.
Cress said consumers are going to raise the level of expectations around the retailers that they engage with to be innovative and to provide them with new offerings and new solutions that meet that consumer demand for convenience and for safety.
“We see that more Canadian consumers expect to use less cash in the future . . . What does that mean in the way that retailers show up with digital payment solutions? How do we provide those solutions in a way that are seamless for the consumer? Things like facial recognition coming into play to facilitate commerce. What does it mean to be able to see products in virtual ways and holographic ways? Meeting that consumer demand for convenience across different touch points is an opportunity that retailers will have to continue to build a stronger relationship with that consumer,” she added.
Canadians have started to notice that grocers are starting to sell plants in miniature greenhouses. Gardens on rooftops, vertical farms close to stores, some are even selling gardening equipment to gardeners shopping for food. The farm is essentially merging with the food retail spaces we roam as consumers. Quite interesting.
We are slowly witnessing the rise of the “grow”cer if you will. For years, customers just believed in the myth that food just magically shows up at the grocery store. COVID got many to think differently about supply chains. Food is grown, produced, transported, packaged, and retailed. With the addition of new “farmgate” features, for city dwellers, grocery stores are slowly becoming the gateway to an entire world most of us rarely see: farming.
Sobeys is just one recent example of what is going on. The no.2 grocer in Canada recently signed a partnership agreement with German-based Infarm to get greenhouses into many outlets across the country. Infarm units were installed last year in BC but can now be found in many locations across the country. Infarm units enable Sobeys to offer fresh herbs and produce which is grown hydroponically which requires 95% less water, 90% less transportation and 75% less fertilizer than industrial agriculture. No pesticides are used either.
Available produce grown inside the store includes leafy greens, lettuce, kale and herbs such as basil, cilantro, mint and parsley. Expansion plans include chillies, mushrooms, and tomatoes. The growing cycle for most of these averages five weeks.
Image: Sobeys
While Sobeys does not have to worry about infrastructure and extra capital to change the allure of a store, it can get rid of these miniature vertical farms if proven unpopular or unnecessary. Works well for both Sobeys and the consumer. But it is not just Sobeys. Other grocers now have decent-sized vertical farms inside the store or close to them.
The gardening rate in Canada has gone up by more than 20% since the start of the pandemic last year. For consumers, growing their own food was about pride and taking control of their supply chain in some way. For many others though, gardening remains a luxury due to the lack of space or time. Since a trip to the grocery story is inevitable for most of us, grocers are bringing the farm to the store so consumers can have both the farming and the retail experience all at once.
Before COVID, farmers desperately tried to get closer to city dwellers, so their work can be appreciated. Campaigns over the years brought mixed results. Farming is still largely misunderstood by most. Debates on GMOs and the use of chemicals have also divided both urban and rural communities. City dwellers have always respected farmers and the hard work they do. But many consumers who are/were looking for natural and organically produced goods have grown leery of farming in general. This has attracted the attention of environmental groups opposed to many farming practices.
Grocers are starting to realize that bridging two worlds under one roof can help elevate their roles as ambassadors to an entire supply chain. Farmers cannot be replaced, of course, but they cannot be in stores either. Seeing pictures of farmers on packages and posters is what we saw for years. It was nice, but it was not real. The hard work, and everything else which comes with farming, can only be properly conveyed when visiting a farm or working on one for a while. Pictures likely will not disappear in grocery stores, but it does not really tell the whole story.
But the new “grow”cer brings the imagery of farming in retail to an all-new level. Grabbing a living plant, or produce off a living plant is certainly real and increasingly valuable for Canadians longing for local and for freshness. It just cannot get more local than when you grow it inside the grocery store.
For grocers, COVID eliminated many rules. Every business played a part. While grocers sold food, processors manufactured the food, and restaurants provided us with ready-to-eat solutions. Lines between sectors were already becoming blurred before COVID as crossing concepts and eliminating lines between different sectors was happening. Some of us have heard of the “grocerant” concept, for example, embedding food service into a grocery store. Consumers can relax, enjoy food before, during or after their grocery shopping. But COVID just blew “blurring lines” completely up.
Grocers are now becoming brokers, connecting different functions of the supply chain. Farming now connects with retail by way of new initiatives being present which is what we are seeing everywhere now. Restaurants are selling meal kits through grocers’ apps. Few saw that coming. Food brokering for grocers is the next frontier for growth. No doubt about it.
Whether it will last is unknown, but grocers are embracing the fact that they have the privilege to interact with consumers every single day. That privilege, now more than ever, comes with the responsibility of showing them the true value of food by becoming knowledge brokers. If it means growing more food in stores, so be it.
Craig and Lee talk about Vancouver’s Alberni Street and provide commentary about its current state and history on the recently published retail tour by Retail Insider.
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Gap-owned Banana Republic is liquidating its stunning flagship store in downtown Montreal at 777 Ste-Catherine Street west. The store closes on July 24th.
The building, owned by Thor Equities, spans 26,463 square feet with a ground floor of 5,453 square feet, a mezzanine of 3,946 square feet, a third floor spanning 6,014 square feet, a lower level of 5,206 square feet and a basement level spanning 5,844 square feet. Ceiling heights on the ground floor soar 30 feet. Savills and Aurora Realty Consultants are listing the space for lease [see leasing website]
The closure follows Banana Republic’s shuttering a flagship store at 80 Bloor Street West in Toronto last year. The Gap has said that it will be shutting many stores in Canada and the United States including many Gap stores in enclosed shopping centres.
“Imagine Together” will transform nine billboards along the outside of CF Toronto Eaton Centre that typically saw advertising into a collection of designs that focuses on the power of collaboration and interconnectedness.
The 18-month long exhibition will feature three diverse and emerging OCAD U artists Raquel Da Silva, Jason Zante and Daria Joyce. The artists were tasked with reflection on their own experiences from the shopping centre, which guided their designs.
The three artists participating in the CF Toronto Eaton Centre Art Corridor are Faculty of Design students from OCAD U. Aligned with CF’s purpose, the Faculty encourages students to create designs that nurture community and empower individuals.
Raquel Da Silva – Raquel is a Toronto-based artist and designer, working primarily in painting and sculptural objects. Her work is focused on creating abstract environments with two and three-dimensional forms and shapes. Raquel’s pieces created for ‘Imagine Together’ are meant to evoke the cultural vibrancy of the city and reflect the energy that it creates to inform, inspire and regenerate.
Jason Zante – Jason is a Filipino Canadian multidisciplinary artist. He infuses vibrant colours in his compositions that depict stillness in time, Philippine culture, and ethereal landscapes. Jason’s pieces created for ‘Imagine Together’ emphasize how art and design influence social change and have the potential to create conversations that matter through captivating visuals.
Daria Joyce – Daria is an illustration artist, creating work that is inclusive, playful, and vibrant, as she aspires to create art that connects and illuminates. Her pieces created for ‘Imagine Together’ reflect the power of CF Toronto Eaton Centre as the heart of Toronto, a destination that brings people together in a visually inspiring environment, creating an emotionally enriching and communal experience.
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Sheila Jennings
“CF is committed to creating dynamic, inviting spaces and we recognize the important role art plays in enabling expressive and meaningful places in our buildings and the neighbourhoods we are proud to be a part of,” said Sheila Jennings, General Manager, CF Toronto Eaton Centre. “Our centre is located in the heart of downtown Toronto, serving as a regular meeting place for our engaged student community. It was only natural that we collaborate with young emerging talent to transcend a message of hope, positivity and togetherness through art.”
Ana Serrano
“OCAD University is dedicated to fostering communities that integrate multiple perspectives and we are inspired by the creativity and passion our students showed in bringing this mission to life,” said Ana Serrano, President and Vice-Chancellor at OCAD University. “We are grateful to partners like Cadillac Fairview for their strong community support and providing a tremendous platform, especially at one of their landmark properties, to serve as a showcase for our students.”
Mark Garner
“This exhibit is a great addition to Downtown Yonge, highlighting the cultural significance of this neighbourhood with a positive and inspiring message. It is also important economically: arts and culture are crucial to bringing people back to this area as we re-open, and we are excited to see this art activation showcasing the talent of emerging artists,” says Mark Garner, Chief Operating Office of the Downtown Yonge BIA.
Future Sungiven location under construction in North Vancouver (July 2021). Photo: Lee Rivett.
In the fall of 2019, Chinese grocery chain Sungiven Foods opened its first Canadian store at City Square in Vancouver. The store was the first of about 15 locations planned for the BC Lower Mainland over the next several years.
Former Pier 1 Import at 1595 Marine Drive in North Vancouver (January 2017). Photo: Google Maps/Reza Hamedi
Map of Former Pier 1 Imports location in North Vancouver. Photo: Google Maps
Future Sungiven location under construction in North Vancouver (March 2021)
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Future Sungiven location under construction in North Vancouver (March 2021). Photo: Lee Rivett
Future Sungiven location under construction in North Vancouver (March 2021). Photo: Lee Rivett
Future Sungiven location under construction in North Vancouver (March 2021). Photo: Lee Rivett
Since March 2021, the Sungiven Foods construction has progressed and ‘now hiring’ signage has been added to the construction blackout film obstructing views into the construction unfolding inside. Retail Insider will continue to monitor for its opening and provide updates as they unfold.
Future Sungiven location under construction in North Vancouver (July 2021)
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Future Sungiven location under construction in North Vancouver (July 2021). Photo: Lee Rivett.
Future Sungiven location under construction in North Vancouver (July 2021). Photo: Lee Rivett
Future Sungiven location under construction in North Vancouver (July 2021). Photo: Lee Rivett.
Sungiven Foods Canada Inc. is a subsidiary of Xiamen Sungiven Foods Holdings Ltd., based in Xiamen, China. The company operates more than 90 stores in China, most being in Xiamen. The company’s Canadian head office was opened earlier this year in Burnaby.
A cross-Canada store expansion is expected, which could heat up competition amongst grocery retailers and particularly with Asian grocers as well as chains such as T&T. Sungiven Foods operates more than 100 stores in China and will also expand into the US. [Read the Full Article Here]
Future "Dank Mart" location on Thurlow Street off of Robson Street in downtown Vancouver (July 2021). Photo: Lee Rivett.
Dank Mart, the self-proclaimed “dankest bodega in the world”, will be opening its second convenience store location just off Robson Street on Thurlow Street in the same city block as Drake’s October’s Very Own (OVO) boutique and Vancouver-based Aritzia on the corner of Thurlow and Robson. The first Vancouver location for Dank Mart opened at 6418 Main Street in May 2020 offering rare snacks and exotic drinks in-store and online. Its success allowed for its expansion to a new location near Robson Street.
Former RYU location on Thurlow Street (off Robson Street) in May 2021 in Vancouver. Photo: Lee Rivett
Former RYU location from Robson Street in April 2020 during COVID-19 Pandemic lockdowns. Photo: Lee Rivett
