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How the Craft Revolution Helped Develop the Market for Specialty Coffee in Canada and Beyond [Op-Ed]

By Pierre-Yann Dolbec, Assistant professor in marketing and Research Chair in Complexity and Markets, Concordia University

The craft revolution is everywhere: Craft beers, specialty coffee, handmade soaps and artisanal ice cream. While some may think this is foolish snobbery, others revel in the esthetics of craft experiences.

The craft revolution is often seen as a reaction against excessive industrialization or as a way to keep traditions and culture alive in the face of a homogenized, corporatized world. Instead of privileging the pursuit of profit, craft businesses and professionals are part of the rise of creative professions. They are driven by esthetic engagement, creative expression and an aspiration for quality.

Craft work gives professionals the opportunity to create unique products that align with their personal visions. This helps the makers distinguish themselves and express their identity through their work.

Craft brings forth the growing desire of producers and professionals for esthetic engagement, creative expression and aspiration for quality. The coffee market offers us an array of cultural resources and expressions, such as “handcrafted,” “connoisseur,” “artisanal” and “coffee snob.”

Making a market

The values and beliefs behind craft work and esthetic engagement, creativity and quality have seeped into many markets, including those for barbering, beer, butchering, chocolate, cocktails, tattoos, cuisine, denim, fashion, motorcycles and coffee.

Between 1991 and 1998, the number of specialty coffee shops in the United States grew to about 10,000 from 1,650. By 2015, there were 31,490 specialty shops. Specialty coffee is now more than half of the $48 billion retail value of the U.S. market.

This rise in demand and popularity of a craft-oriented approach to a consumer good has shifted a large part of the market towards craft values and beliefs.

Values and beliefs

Businesses conduct their activities based on key values and beliefs. Craft firms undertake theirs striving for esthetic engagement, creative expression and an aspiration to quality. In contrast, commercial firms such as McDonald’s McCafé and Tim Horton’s privilege the maximization of profits.

Consequently, each type of business — commercial or craft — innovates in different ways. In coffee, craft business have pushed toward ways of farming, processing, roasting and brewing coffee to bring out the distinctive flavors of specific coffee beans associated with their origin, terroir (how the circumstances of its growth affects its taste) and varieties.

Innovative products, such as the Kruve coffee sifter, the Decent DE1+ espresso machine or the Weber EG-1 coffee grinder, all share the same key characteristic: to offer baristas and consumers more control over coffee-making variables so that they can perfect the coffee’s esthetic experience.

Commercial firms introduce products that have profit potential. The infamous Starbucks’ Pumpkin Spice Latte, the Nespresso Vertuo and Tim Horton’s recently launched line of espresso-based drinks are not concerned with the coffee experience or bringing out the distinctive flavors of a bean. Rather, they offer consumers fun, affordable or convenient products and services that help increase firms’ profit margins.

Crafting language

Whatever the values and beliefs of craft or commercial businesses, it is the interactions between them that push markets such as the one for coffee to become more craft-like. Commercial firms take inspiration from craft businesses’ desire for esthetic engagement and creativity.

They borrow from the vocabulary that craft firms brought to the coffee market, such as Dunkin’ Donuts’ “Handcrafted” coffee drinks or Nespresso’s coffee pods “inspired by” Brooklyn’s and Melbourne’s baristas.

They automate the complicated and ritualistic coffee-making processes of craft baristas, increasing profitability but also introducing everyday consumers to some aspects of craft coffee-making.

Craft companies esthetically engage with commercial innovation. They transform the Pumpkin Spice Latte by using artisan syrup and curated spices that ideally match the taste characteristics of a specific coffee bean. Some craft companies have also leveraged the convenience offered by pod machines and developed their own versions to provide consumers with the opportunity to experience high-end coffee at home.

Over time, these interactions evolve the market as a whole, bringing in craft values and transforming the experience of all consumers.

Engagement, expression and authenticity

The complexities associated with craft products have also allowed people to develop and distinguish themselves through their tastes. Cultural resources and expertise are key in how we express ourselves and define who we are.

The craft revolution has supported the professionalization of many fields. Professions such as barber, butcher, barista and mixologist are now infused with elevated cultural cachet. It has also supported the emergence of new identities, from coffee connoisseurs to bearded villains to cocktail nerds.

Some have argued that craft offers more authentic products, perhaps because craft work creates a kind of one-to-one relationship between the producer and consumer that is different from the standardized mass market production that dominates so much of our economy. But while craftspeople’s creative expression might be found in their products and presentation, commercial firms have become skilled at mimicking the artistry of craft professionals, making it difficult to identify which is which.

Authenticity is an ambiguous concept — what one might find authentic might be seen as elitist by others. Perhaps the success of craft might lie in its capacity to tap into our nostalgic ideals of work and our increasing desires for connection with the origins of products and the stories and people behind them.

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

Ardene Marks 40 Years with 33 Planned Store Openings for 2022 [Interview]

Ardene St Hyacinthe (Image: Ardene)

Montreal-based fashion brand Ardene is launching a new campaign called “That Ardene Energy” celebrating 40 years in Canada and its retail success story over those decades.

The brand currently has a total store footprint of over two million square feet which is more square footage than it has ever operated with 33 new stores either opened or to be opened in Canada this year. Today, it has more than 300 stores in Canada as well as 35 in the US and a dozen in the Middle East.

Kelly Solti

“We’re very excited about it and really proud of everything we’ve accomplished over the past few years and That Ardene Energy is really a celebration. We just celebrated our 40th anniversary, being 40 years in business in the Canadian market,” said Kelly Solti, Ardene’s Head of Marketing.

“As a company we sat around and said hey what has made us who we are today? And we’re a bunch of creative people around here and we really have to thank our customers and we have to thank our employees for everything we have accomplished and it comes from the Ardene energy from all the energies within, externally and internally, so we created a campaign around it.”

Ardene St Hyacinthe (Image: Ardene)
Image: Ardene

So what are some of the key factors behind the retailer’s four decades of success?

“The key question that everybody wants answered,” said Solti. “Really it stems from the fact that we are a very agile company. We’re very open minded. I tell the team here that any idea is a good idea if it’s within budget, brand aligned and we’re able to do it. So as a company I think we’ve really pushed forward on thinking differently and really looking to our customers.

“There’s no secret recipe. It comes down to the people and listening to them.”

Solti said the company has plans to continue to grow its footprint. Part of the plan is to expand the space in some of its existing stores.

“Our strategy has been store consolidation. It’s been our strategy over the past few years and even pre-pandemic of closing smaller square footages and opening up larger stores. Same mall, different location, bigger spaces,” she said.

Image: Ardene

“We started just as accessories and then expanded to footwear, handbags, apparel. So really we’ve become a head to toe destination for Gen Z customers and really because of the breadth of our offering we just realized that we need bigger stores in order to have a better customer experience, brighter stores and just create that head to toe offering for our customers. And with that is bigger stores.”

Also, the retailer opened a new concept store in February in Carrefour Laval.

“We test and try a lot of things at Ardene. It’s probably one of the successes,” said Solti. “At Carrefour Laval, it’s actually a smaller square footage store just because of availability at the time and we actually curate the merchandise. So we’re finding with our customers these days, they want specific outfits, they want to know what top goes with the bottom, so our stylist here at the head office actually handpicks each of the items to put in the store.

“A little bit of a merchandising strategy but really telling the customer this is exactly what you should buy.”

Ardene St Hyacinthe (Image: Ardene)
Image: Ardene

The concept may also find its way to some other locations but Ardene’s goal right now is to move into more bigger square footage stores.

“I’m proud of the company. I’m proud of what we’ve accomplished. It’s never a moment of not doing anything. We’re constantly moving, grooving, shifting and it’s been a really proud moment,” said Solti, adding the retailer will adapt to the changing customer needs and wants.

The latest campaign geared for the back-to-school season has a clear message: bring authentic energy to everything you do. 

The retailer said the campaign positions itself as an uplifting celebration of friendship, inclusivity, self-expression, and individuality. The bold, bright pink accents and social feel of the campaign are a nod to Ardene’s own brand identity, and the energy stems from its evolution as a company over the years, it said.

@ardene

“The timely campaign comes on the heels of the pandemic as customers re-emerge for in-person shopping and shares a message of positivity and optimism that many are eager to hear. Despite challenges brought on by COVID-19 for close to two and a half years, Ardene has continued to bolster its retail footprint and store design with total store square footage up by 25 per cent from just a few years ago,” said Ardene. 

“And with new investments in ardene.com, the Ardene app, and a refreshed customer rewards program coming soon, the company has continued to develop its omnichannel offering. Today, Ardene reaches over two million people across its social channels, including a 55 per cent jump in followers on TikTok in 2022, where it has caught the attention of its core Gen Z demographic.”

As an engaging layer to the campaign, Ardene said it will launch a custom Instagram filter for followers to use on the social platform. Followers can post a video showcasing their Ardene Energy on Instagram using the “What’s Your Energy” filter and #ThatArdeneEnergy for the chance to win a $1000 shopping spree starting July 27.

Canadian Retailer ‘Groupe Marie-Claire’ Launching Lifestyle Brand LIVOM with Multiple Store Locations [Feature Interview/Renderings]

Rendering: LIVOM

Canadian-renowned retailer Groupe Marie-Claire is launching its latest lifestyle brand LIVOM, which is an omni-channel shopping experience featuring durable and sustainable furniture, clothing and decor.

The launch is expected in August and will consist of a cross-Canada online store as well as brick and mortar locations in Quebec initially with expansion plans into Ontario. 

“With LIVOM, we want to offer a sensory experience to our customers: a moment for them to relax and dream. To imagine their ideal space, wardrobe, or decor. In a time where shopping has become almost more of a task than an activity, we are looking to offer a completely new universe with a timeless lifestyle that allows us to marry fashion, furniture and decor,” said Paule Lafrance, the company’s Director of Creative & Marketing and grandchild of its founders.

“We hope to make the act of shopping for home decor easier and more enjoyable in an environment that is conscious, meaningful, and impactful to our customers. We believe in offering options that are made of recycled, organic or eco-friendly materials and being as transparent as we can be with our offerings.

Rendering: LIVOM

“We look forward to introducing LIVOM and our slow-living lifestyle to Canadians and welcoming them to our concept, online marketplace and, first retail store, in late 2022. This first opening marks a very important moment in our history, of which we hope to spread throughout the rest of our beautiful province.”

Based in Montreal, Groupe Marie-Claire is a Quebec family business specializing in the retail sale of women’s ready-to-wear and skin care.

Groupe Marie-Claire was above all born from the common passion of Réal and Marie Claire Lafrance for clothing. In 1965, Réal Lafrance, a representative for an oil company and his wife Marie Claire, a teacher, decided to go into business by opening a tiny women’s clothing store in Saint-Hyacinthe.

Today the Group has about 300 stores under the brands Grenier, Marie Claire, Claire France, San Francisco and Dans un Jardin boutiques throughout Quebec as well as in Ontario and New Brunswick. It also has a brand that is only online geared for private companies and their uniforms. 

Rendering: LIVOM

The company said LIVOM will be a one-stop shop for all things decor, furniture, and clothing that are eco-conscious, sustainable, minimalist, and timeless. LIVOM’s online marketplace and stores will allow customers to discover new products and explore the endless possibilities to expand their homes or wardrobe essentials with eco-conscious choices, all the while ensuring they are encompassing a responsible shopping lifestyle, and a “slow living” mentality, it said.

In addition to their online store which is expected to launch in mid-August, LIVOM is set to launch five brick-and-mortar stores across Québec by the end 2022, and aims to expand their brick-and-mortar retail experience to Ontario in 2023. Their first four retail stores will launch in August and September in Repentigny (August), Saint-Hyacinthe (August), Chicoutimi (September) and Sherbrooke (September).

“Next  year we’ll increase to 10. We’re planning on eventually opening in Ontario and also trying to see how logistically it would be possible to also expand to the rest of Canada. It’s a totally new concept for us so we’re taking a step at a time. We’re going to see how the launch goes and how this half of the year is going to go for us with the store openings and then obviously the expansion is going to depend on that. That’s our plans for the moment. One step at a time,” said Lafrance.

“Whatever fashion and accessories is going to be open to the whole of Canada and anything that is big furniture will be more for Quebec and Ontario.”

Rendering: LIVOM

Lafrance said LIVOM’s online marketplace and stores will allow customers to discover new products and explore the endless possibilities to expand their homes or wardrobe essentials with eco-conscious choices. At the forefront of LIVOM’’s values is a commitment to sustainable and eco-conscious practices, transparency, and only using eco-responsible materials, said the company. Many of Livom’s apparel selections will be made from recycled plastic bottles and natural fibers, as well as designed locally in Canada. In addition to their apparel, LIVOM’’s furniture and home decor will also be made with recycled materials, such as recycled wood or hand-woven furniture. All fibers, materials, and fabrics will be carefully chosen to ensure that the brand’s products are made to last over time and to become a staple of their customers’ homes, it said.

“We started the idea during the pandemic. Obviously a lot of people were spending time at home and I think a lot of people realized that comfort is a very important thing and a very important part of everybody’s lives,” said Lafrance. 

“There’s not that many concepts that include furniture, decor and fashion in one space. And we wanted to be one of those people who would offer that. 

And we were also very influenced by the Nordic mentality where they have more green initiatives and we wanted to offer that as well. So have tables made out of recycled wood or clothes made out of recycled plastic bottles and have natural fibers and components and also work with artisans all around the world. Some parts of our clothing collections are made locally in Canada. That’s one of the parts we’re very proud of.

Rendering: LIVOM

“We tried and take green initiatives and also to encourage local production but we also want to be very transparent about it and that’s our mentality. Transparency. Because I think that it’s easy to promote. We want to be transparent so people can make a conscious choice. We wanted to offer something that is timeless, that is ageless, that is comfortable, and that is transparent.”

Lafrance said it was a long process to come up with the new brand’s name. It’s a combination of the word live and the yoga mantra ‘om’ which people recite for serenity. 

“Also when you hear LIVOM it sounds like live at home. And om in one of the Nordic languages also means home,” said Lafrance. “Everything made sense (with the name).”

Additional Renderings Below

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Rendering: LIVOM
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Rendering: LIVOM
Rendering: LIVOM
Rendering: LIVOM

Size Matters – The Complexity of Retail Signs in Québec Under Bill 96 [Expert Op-Ed]

Foot Locker (505 Saint-Catherine St W, Montreal)

By Éric Blais

If mass merchant Zellers was still operating today, it would be one of the few retailers in Québec with an English trademark complying with the language law. The retailer’s famous slogan “Because the lowest price is the law” (Le plus bas prix est la loi) set in large type next to the English trademark would likely meet the requirement for the “predominance of French”, which is at the core of Bill 96’s provisions for public signs and posters visible from outside premises.

Image: Zellers

Why? It’s complicated. And it’s still unclear how this will be enforced after the June 1, 2025 deadline.

For those who like reading legal texts, here is a link to the Bill (in English).

For those who find these things TLTR, here is an overview of the law’s implications for retailers operating in Québec.

The spirit of the law

The purpose of this bill is to affirm that the only official language of Québec is French. It also affirms that French is the common language of the Québec nation. To that end, the bill makes several amendments to the Charter of the French language.

Importantly for retailers and marketers, the bill strengthens provisions relating to the use of French as the language of commerce and business, in particular as it concerns signs and posters.

Retailers’ trademarks

Bill 96 introduces a new section 58.1 regarding the exception for public signs, posters and commercial advertising. A trademark may be displayed only in a language other than French in public signs, posters and commercial advertising, without a French version, as long as (1) the trademark is registered under the Trademarks Act; and (2) there is no corresponding French version in the Trademark Register.

Simply put, Canadian Tire can use this trademark on its signs as long as it doesn’t trademark a French version like Pneu canadien. But it will need to do so with conditions that might make this impractical from a branding standpoint.

On the other hand, furniture retailer Leon’s must use its French trademark Léon on its signs, which it already does. Just like Shoppers Drug Mart will continue to use its Pharmaprix trademark, Staples its Bureau en gros name, and so on.

Image: Leon’s

If the trademark does not meet these two conditions, it must contain a French version that appears in the public sign, poster and/or commercial advertising in a “markedly predominant” manner.

From the sufficient presence of French to the predominance of French

This is a small wording change with massive and potentially very confusing implications for retailers. The requirement used to be that there should be “sufficient presence of French”. That is why many national and international retailers operating in Québec added a French descriptor to their signs. Walk on Montreal’s Ste-Catherine Street or visit a shopping mall in Québec and you will see Winners Mode, Boutique Lululemon, Victoria’s Secret Lingerie, Newlook lunetterie, Moores Vêtements pour hommes, and many others before heading to Café Starbucks for a café au lait or lunch at Les restaurant Burger King or Five Guys Hamburgers et Frites.

It is important to note that this rule applies to any “public signs and posters visible from outside premises” as well as any signage placed inside a premise if its installation or characteristics are intended to be seen from the outside. This applies to registered trademarks that are only in a language other than French – not just English. I suspect there will be many gray zones about what defines a trademark in a language other than French. Take Japanese apparel retailer Uniqlo. It’s a contraction of Unique Clothing Warehouse. Or Spanish retailer Zara, which was initially called Zorba after the classic 1964 film Zorba the Greek.

Would these retailers be required to ensure the “predominance of French” on their signs? That’s unlikely. The Charter’s paragraph 67, which isn’t amended by Bill 96, states that “Family names, place names, expressions formed by the artificial combination of letters, syllables or figures, and expressions taken from other languages may appear in the names of enterprises to specify them.”

Who knows for sure? After all, we’ve had the so-called Pastagate in 2013.

You may recall how an inspector of the Office québécois de la langue française (OQLF) sent a letter of warning to an upscale restaurant, Buonanotte, for using Italian words such as pasta, antipasti and calamari on its menu instead of their French equivalents. The incident occurred as the National Assembly was debating Bill 14, a bill to toughen the province’s Charter of the French Language. Instead of complying with instructions on the letter he received from the OQLF, the owner of Buonanotte went public, and it generated a widespread public outcry across the province, even among francophones, about the OQLF abusing its powers. The incident led to the resignation of Louise Marchand, head of the OQLF.

Once the law is in effect, here’s how Café Starbucks might look like in Québec.

Image: Starbucks

It makes no sense from a branding standpoint. And that’s likely the government’s point. Bill 96 is meant to strengthen the Charter. And one way to do so is to make it impractical to keep using an English trademark on signs. The law is effectively forcing retailers to trademark a French version of their name. So, the idea that electronics retailer Best Buy could become Meilleur Achat in Québec is no longer far-fetched.

Failure to comply will be costly

Bill 96 gives the OQLF new power.

The court may, on an application by the OQLF, order the removal or destruction of any poster, sign, advertisement, billboard or illuminated sign that contravenes the Charter, at the expense of the offender. The minister of the French Language will have the power to suspend or revoke a permit delivered by another authority in Québec. The fines for contravening the Charter can be as high as $30,000. Amounts are doubled for a second offence and tripled for any additional offence.

While this is no laughing matter, I suspect we will see some very creative interpretations of the law and adaptations in order to comply. Since ”marked predominance” of French is satisfied if the text written in French “has a much greater visual impact than the text written in the other language”, what’s to prevent a retailer like Winners to keep using its name, keep its current illuminated sign and add markedly larger sign next to it with its French slogan? Or Lululemon adding a large backlit sign with one of its mottos like “Do one thing a day that scares you” in French in large font?

This story is definitely one to be continued, or À SUIVRE.

Éric Blais is the President of Headspace Marketing in Toronto, a consultancy helping marketers build their brands in Québec since 2004.

——

Sources consulted:

Bill 96 – http://www2.publicationsduquebec.gouv.qc.ca/dynamicSearch/telecharge.php?type=5&file=2022C14A.PDF

Borden Ladner Gervais LLP Charter Of The French Language: Changes Affecting Trademarks In Québec, 21 July 2022 by Clara Chow and Genevieve Bergeron

Inside Canada’s 1st Pret a Manger Location in Vancouver [Photos]

A&W/Pret a Manger at Marine Gateway in Vancouver, July 25 2022. Photo: Lee Rivett

Popular UK-based foodservice chain Pret a Manger has officially entered the Canadian market with its first storefront within an A&W location in suburban Vancouver. More partner locations will follow and A&W is also expected to open standalone Pret a Manger locations in Canada at some point as part of the franchise agreement. 

The Vancouver A&W at 468 SW Marine Drive now features a Pret a Manger shop-in-store component featuring Pret’s freshly made food including sandwiches, pastries, soups, salads, wraps, mac and cheese, fresh fruit, oatmeal, and organic coffee including bagged coffee beans for sale. The same till is used to pay both for Pret items as well as the A&W restaurant on site.

It’s part of a two-year pilot where the Pret brand will open within A&W restaurants in select Canadian markets. A&W signed a master franchiser agreement with Pret a Manger to expand the Pret concept and if the trial phase proves to be successful, A&W Food Services has the exclusive rights to expand the Pret brand across Canada based on an agreed-to development schedule. That could include standalone Pret a Manger storefronts in Canada though a source familiar with the situation says details haven’t been totally ironed out just yet. 

Pret a Manger display cases at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Till at the combined Pret a Manger/A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Drinks menu at Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett

The Vancouver location on SW Marine Drive is part of the Marine Gateway project in South Vancouver off of Cambie Street. A busy Skytrain transit station is adjacent which means foot traffic will be heavy at times. 

London-based Pret A Manger was founded in 1986 and has more than 550 shops in the UK, US and several other countries.

See below for more photos from the new combined Pret a Manger/A&W location at Marine Gateway in Vancouver. 

Signage at Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Exterior terrace area branded Pret a Manger, at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Salads at Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Baguette sandwiches and drinks at Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Sandwiches at Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett
Pret a Manger at A&W Marine Gateway in Vancouver on July 25, 2022. Photo: Lee Rivett

Retail Council of Canada Partners with KPMG to Launch One-Stop Tool for Industry Data [Interview]

Retail Pulse Dashboard (Image: Retail Council of Canada)

The Retail Council of Canada has launched what it describes as an essential one-stop tool for retailers to access up-to-date data for the retail industry.

The Retail Pulse Dashboard is a new interactive platform that delivers pertinent, relevant and important statistics on Canadian retail sales, retail job numbers, economic data, and consumer spending.

“The last couple of years have been a time of profound change for the retail industry and it’s more important than ever for retailers to leverage the power of data and seize opportunities to yield long-term success. Retail Council of Canada understands this better than anyone. We are therefore thrilled to introduce the Retail Pulse Dashboard, that can be found on our RCC website, which will make it easier for businesses to find key retail data points in one place,” said Diane J. Brisebois, President and CEO, Retail Council of Canada, in a news release.

“Regularly updated overview information on the retail industry is available to everyone. RCC members, however, have access to much richer data, enhanced filtering, comparisons, and customization. It’s pretty amazing.”

RCC worked with KPMG and Lighthouse to develop the platform to help retailers and their business partners access data that includes retail sales by province, data on retail’s economic impact, updates on employment in retail, mobility, consumer, and credit and debit card spending.

“Today, retailers need to make informed decisions faster than ever. So, KPMG developed a smart, new platform that collects and delivers near-real time and real-time industry intelligence, across the metrics that matter to retailers so they can make better, more informed business decisions,” said Kostya Polyakov, National Industry Leader for Consumer and Retail, KPMG in Canada, in a statement.

The Council is a not-for-profit industry-funded association that represents small, medium, and large retail businesses in every community across the country. It represents more than 45,000 storefronts in all retail formats, including department, grocery, specialty, discount, independent retailers, and online merchants. 

The Council says retail is Canada’s largest private-sector employer with over two million Canadians working in the industry. The sector annually generates over $78 billion in total compensation. Core retail sales (excluding vehicles and gasoline) were over $433 billion in 2021. Council members represent more than two-thirds of core retail sales in the country. 

Retail Pulse Dashboard (Image: Retail Council of Canada)

The new dashboard is hosted on the RCC website. An introductory video can be seen here: https://youtu.be/wWu-FS_CWQQ

Sarah Jordan

“It is a game changer for our industry and teams to have a singular resource that gives companies access to the most relevant retail data,” said Sarah Jordan, CEO, Mastermind Toys, a member of RCC, in a statement. “To stay competitive and growth orientated, it is critical for us to have several channels to get the insights we need so we can continuously refine and innovate our brand storytelling and customer experiences.

“Spending less time gathering rich data from different sources and allowing more time to react quickly to trends is such a welcomed advantage, especially given the pace of the retail environment.”

Youtube Being Utilized by Retailers and Small Businesses in Canada with Success in Creating Audiences [Interview]

A report by Oxford Economics indicates YouTube’s creative ecosystem contributed $1.1 billion to Canada’s GDP in 2021 while supporting 34,600 full-time equivalent jobs in the country.

In Canada, the number of YouTube channels making $100,000 or more in annual revenue is up 35 per cent year over year and over 550 channels have over one million subscribers, which represents growth of more than 20 per cent year over year.

Hamilton Galloway

In its report, From Opportunity to Impact, Hamilton Galloway, Head of Consultancy, Americas, Oxford Economics, said Canada has found in YouTube a valuable way for its creators, artists and entrepreneurs to gain visibility and contribute to the nation’s distinct cultural identity and economy. 

“YouTube helps businesses connect with more customers at home and abroad—increasing reach, driving revenues and supporting jobs. YouTube also supports businesses in other ways. For example, YouTube provides a cost-effective source of staff training and helps businesses adapt to the challenges posed by COVID-19,” said the report.

From opportunity to impact – Assessing the economic, societal and cultural benefits of YouTube in Canada in 2021

“When business owners of all sizes share content that informs, educates and entertains, it helps them build an organic audience that they can then convert into customers. And rather than just read product and service reviews, YouTube users can seek out specific content, watch tutorials and hear directly from the business owner.

“In addition to helping existing businesses grow, YouTube is enabling creators to launch entirely new businesses.”

Andrew Peterson, Head of Canada at YouTube, said the platform’s mission is to give everyone a voice and show them the world as an open platform.

Andrew Peterson

“And what that means is anyone with a story to tell can take their smartphone, create a video and upload it to the platform. But what starts as a hobby we have seen over the years can fast develop into a thriving business,” said Peterson. “And so for us we really wanted to understand what was the cumulative impact of all these creators starting these businesses. 

“And that’s what we refer to as the creator economy because it’s not just someone on their own creating videos, it’s someone who’s telling stories and generating revenue and potentially having employees and building bigger businesses around that.”

He said the results of the research were “quite astounding” with an unprecedented number of Canadian creators telling stories and building businesses on the platform.

Peterson said there are more than 4,500 channels with more than 100,000 subscribers. 

He said it’s not just YouTube creators who are building new enterprises but small and medium businesses are also joining in on the action as well.

“For SMBs specifically, YouTube’s really a place that helps them connect with more customers at home and abroad as well as driving new sales . . . 80 per cent of small and medium businesses with a YouTube channel agree that YouTube plays a role in helping them grow their customer base by reaching new audiences,” said Peterson. “But going one step further, 69 per cent of SMBs with a YouTube channel agree that YouTube played a role in helping them grow their revenue.

“What I’m not saying is YouTube is the right solution for every business but there are a substantial number of businesses where it does make sense, that are driving really meaningful results from the platform.

“The other side of that is in addition to the SMBs coming onto YouTube is the SMBs that are basically being created on YouTube.”

Here are some interesting numbers from the report:

  • In Canada, the number of YouTube channels making $10,000 or more in annual revenue is up 25 per cent, year over year;
  • 78 per cent of creative entrepreneurs agree that YouTube helps them export their content to international audiences they wouldn’t otherwise have access to;
  • 76 per cent of SMBs who use YouTube agree that YouTube has helped them sustain their business during the COVID-19 pandemic;
  • 67 per cent of SMBs who advertise on YouTube agree that YouTube ads have helped them grow sales;
  • 76 per cent of SMBs who use YouTube agree that their use of YouTube during the COVID-19 pandemic has helped their organization adapt;
  • 71 per cent of SMBs who use YouTube agree that YouTube is a cost-effective way of providing staff training; and
  • 65 per cent of SMBs who use YouTube agree that YouTube is essential to their business growth.

Peterson said there are many different mediums where people can tell stories. The thing about video is the connection someone can make with their audience.

“So you will often see YouTube creators not refer to their fans, they will talk about their community,” he said. “This is the incredible thing about YouTube. Niche has become the new mainstream.

“If you’ve got a great story to tell with very little cost beyond the phone you have in your pocket and a great idea and the tenacity to create something out of thin air, you can upload that to YouTube and it’s so common in terms of so many of the biggest and most successful YouTube creators in Canada all have a similar origin story. They never intended to become superstars with audiences of millions or tens of millions of people. They just had a story to tell, uploaded a video.”  And discovered there were people out there that wanted to engage with those stories. 

YouTube has also launched a new partnership with Shopify giving all eligible creators access to live shopping tools. It enables creators and merchants to easily feature their products across their YouTube channels and content. Eligible creators can link their Shopify store to their YouTube channel in a few steps.

“There are actually 10 ways to monetize on YouTube and everyone is pretty familiar with the advertising element of the platform and the creators with the YouTube partner program receiving the majority share of that revenue,” said Peterson. “But one of the other 10 ways for creators to monetize their content and their channels is actually shopping. This has been an area on the platform that has existed for a little while but it really feels like we’re still only just getting started.

“We’ve built some great products that allow live commerce. So for creators in a live stream to talk about products, announce a new merchandise range and right there from a live stream purchase those goods. We’ve also been making videos shoppable on YouTube . . . We’ve also done some experimentation with shopping using short-form video and product on the platform.”

Now, it has an integration with Shopify where any Canadian creator who has a Shopify store can now integrate that store into the YouTube channel and seamlessly display and sell those products from their store whether that be in a live stream, video on demand, or within short-form video.

“We think this really unlocks an incredible opportunity with a large number of creators to further drive awareness of their merchandise or any other products that they are creating and sell them seamlessly within YouTube, removing a lot of the friction of e-commerce and making it seamless for their community to purchase from them right within the YouTube environment,” said Peterson.

Indigo Closing Chapters Book Store on Rideau Street in Downtown Ottawa to Relocate to CF Rideau Centre [Renderings]

Indigo at CF Rideau Centre (Rendering: Indigo)

Indigo Books & Music is closing its Chapters store on Rideau Street in Ottawa to open a new Indigo banner store in the city’s CF Rideau Centre and it will be the retailer’s newest large-format store.

Peter Ruis

The store is scheduled to open by the fall of this year.

“We are thrilled to offer our Ottawa customers an exceptional new destination store, which will include the curated assortment of books our customers trust us for, but also more lifestyle products and inspiring displays,” said Peter Ruis, President, Indigo, in a news release.

“This store will debut our most innovative design concept, and allow our ‘Life, on Purpose’ proposition to truly come alive.”

Indigo at CF Rideau Centre (Rendering: Indigo)

Melanie Sanderson, the creative lead for the store’s design, worked with a design agency to create a store that the company described as “inviting, inspiring and curated.”

Mel Sanderson

“I was born and raised in Ottawa and quickly became a regular of the Chapters on Rideau from a young age,” said Sanderson in a news release. “This was a labour of love because I know the staff, customers and community, so it was important that we designed this store with them in mind.”

The Rideau Street location has been around since 1996.

Regarding hiring, Indigo is offering positions to its existing staff, and people can always visit the careers page on indigo.ca to stay updated on hiring opportunities

Chapters Rideau in Ottawa – Image: Dustin Fuhs

The first Indigo location opened in Burlington Ontario in 1997, created with the desire to bring a unique cultural destination to the Canadian retail marketplace. Indigo Books & Music Inc., as it exists today, was created in August 2001 with the merger with Chapters Inc. Headquartered in Toronto, Ontario, it employs approximately 5,000 people across Canada.

As of April 2, it operated 88 superstores under the banners Chapters and Indigo and 85 small format stores, under the banners Coles and Indigospirit. It also operates www.indigo.ca, a popular online destination offering millions of products including books, eBooks, toys, stationery, home décor, gourmet confections, electronics, and more.

“Averaging over 22,000 square feet, Indigo’s large format stores are designed to be destinations for culture-seekers, offering an inspiring environment conducive to browsing and community-building. Small format stores are typically located in retail shopping centres, street-front retail areas, major airports and central business districts,” says the company on its website.

In June, Indigo reported financial results for the 52-week period ended April 2, 2022 compared to the 53-week period ended April 3, 2021. Revenue increased $157.6 million or 17.4 per cent to $1.06 billion from $904.7 million last year. 

Indigo at CF Rideau Centre (Rendering: Indigo)

“These top-line results also outperformed the preceding three fiscal years including the pre-COVID year. These results were achieved amidst challenging operational and market conditions that included rolling store closures in the Company’s first quarter and the re-emergence of severe pandemic conditions from the Omicron wave during its seasonally important third quarter,” it said in a news release.

“The success of the Company’s product strategy and strong revenue performance drove the Company’s return to profitability, with adjusted EBITDA of $32.5 million and net earnings of $3.3 million, an improvement of $60.8 million and $61.2 million, respectively. Revenue growth was driven by the success of Indigo’s omnichannel business, with the first good push of recovery delivered by the Company’s retail channel and an ecommerce business that nearly doubled since the onset of the pandemic. Specifically, the online channel sustained incremental growth of 98 per cent to fiscal 2020 sales levels. 

“Demonstrating evolving omnichannel behaviours, Indigo’s digital platforms are also increasingly where customers begin product discovery, bolstering in-store conversion. Demand in the Company’s core book business notably lifted by eight per cent, fueled by the popularity of reading on TikTok. Customers’ strong reception to the Company’s expanding general merchandise offering further buoyed results, with assortment expansion driving sales growth at or above 30 per cent for its lifestyle and baby categories.” 

Commenting on the results, CEO Heather Reisman stated: “As a business, we were relentlessly focused on evolving and driving performance – which together with Canadians’ affinity for the Indigo brand – yielded the beginning of improved results. This COVID period though challenging, has spurred creative thinking and we are energized by the opportunities ahead of us.”