Retailer Lucky Brand continued to re-launch in Canada with the introduction of more physical retail stores and a new online shopping platform.
After exiting Canada a couple of years ago, within the last year the company’s Canadian rights were acquired by Thriftys Family of Brands (Bluenotes, Aéropostale Canada, Lucky Brand Canada).
Two new stores will also be opening over the next month at Polo Park in Winnipeg and CF Shops at Don Mills in Toronto. The partnership with Thriftys Family of Brands also means a selection of Lucky Brand merchandise will be carried in select Bluenotes and Thriftys by Bluenotes stores this fall.
Photo: Lucky Brand
“This new partnership is a perfect fit for our customers as our Jeans are the heart of both the Bluenotes and Lucky Brand product offering. This collaboration has been in the works for some time now and thanks to the hard work of everyone on the Lucky Brand team, it’s exciting timing to be able to reveal this in time for the summer season,” said Michael Roden, CEO of Thriftys Family of Brands, in a statement.
Sean Goodall, Director of Marketing and Brand, said the company is very excited about bringing Lucky Brand back to the Canadian market.
“Lucky Brand is truly I think one of those iconic North American brands. They were founded in Los Angeles. Very focused on denim. And they have a really deep-rooted history in music which is fantastic as well and you’ll see that through a lot of the graphic T’s that we’re re-introducing to the market,” said Goodall.
Sean Goodall
“The brand itself really is about laid back lives and vintage-inspired looks but with great quality. That’s what we’re really excited to bring back to the market. High quality jeans, high quality product that the Canadian consumer is really going to love and has loved. It’s also one of those brands where we have a dedicated consumer base. Every year they shop their Lucky Brand jeans and that’s kind of their stake hold in their wardrobe each year.
“So we’re really excited to be able to offer them the product again and also re-introduce a new and kind of re-invigorated and inspired collection as we re-launch.”
Goodall said the company has no firm numbers regarding Canadian expansion of future store locations. Brokerage Oberfeld Snowcap represents Lucky Brand in Canada under the direction of Andrew Laudenbach.
“As we see how the market reacts, we’ll certainly look to expand. We’re really excited by the brand. It fits perfectly within the Thriftys Family of Brands which is all about denim. So I think wherever we can expand we will as long as the consumer sentiment is there for it,” said Goodall.
“Also in the fall we do have plans within our Bluenotes and Thriftys by Bluenotes locations to include some of the new product within there as well, offering a bit of a shop-in-store model where it makes sense.
“We’re really excited to bring the brand back. We’re going to do some great stuff with it and we have a lot of exclusive Canadian looks as well, obviously inspired by the American brand itself, that will be exclusive to Canada that will also join the assortment we have in stores. It’s going to be a really exciting time over the next year.”
Photo: Lucky Brand
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Photo: Lucky Brand
Photo: Lucky Brand
Interior image of Lucky Brand store. Photo: Lucky Brand
Interior image of Lucky Brand store. Photo: Lucky Brand
Interior image of Lucky Brand store. Photo: Lucky Brand
Goodall said the retailer also has a Pride line of clothing which includes everything from denim jackets to shorts to jeans to graphic tees.
The online platform can be found at www.LuckyBrand.ca and to celebrate the company’s re-launch the entire site will be 40 percent off (limited time only). Online shopping has launched with a wide assortment of the brand’s iconic graphic tees, ranging from pop culture favourites to band tees that celebrate the brand’s heritage in music.
“There is a reason Canada is known for the Canadian Tuxedo, we love jeans! With a 79-year legacy in denim, it is only fitting that Lucky Brand, one of North America’s most respected denim retailers joins the Thriftys Family of Brands in Canada. With a rich history in pop culture and an even stronger reputation in quality, we look forward to reminding Canadians why there is nothing like a new pair of Lucky Brand jeans. Our current campaign, ‘Denim for Days’, further reinforces this message,” said Goodall.
The Thriftys Family of Brands was founded in 1941 as Thriftys (at the corner of Queen & Church St in Toronto). The company today has more than 125 stores across the country.
The jury is out on how successful Gap-owned Athleta, an athletic brand for women, will be as it enters the Canadian market and competes against long-standing retail giant lululemon for market share in this retail category.
Recently, Gap announced it will enter Canada later this year with Athleta, marking the performance lifestyle brand’s first company-owned expansion outside the United States. Athleta plans to launch e-commerce late this summer followed by opening retail stores at Yorkdale Shopping Centre in Toronto and Park Royal Shopping Centre in West Vancouver in the fall of 2021.
The brand plans to open between 20 and 30 stores a year, adding to its existing profitable fleet of over 200 stores across the United States. In 2020, Athleta surpassed $1 billion in net sales and had 16 percent annual sales growth.
Bruce Winder
“I think Athleta has a limited chance of success in Canada. Although they are smart enough to start small with e-commerce and only two stores, they face stiff competition,” said Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail.
“I do like their cause positioning as this has become a table stake for many categories including apparel — but it may lack the differentiating effect they are looking for. Obviously, the athleisure category has been strong during the pandemic as more people work from home and this trend will probably carry over to some degree through 2022 and 2023 when white collar workers split time between the office and home.
“Will they be the next lululemon? No, I don’t think so. lululemon has such a strong brand and has enjoyed numerous first mover advantages in Canada and globally. How will Athleta really differentiate themselves? I feel like there are many similar brands out there — albeit not with the backing of a large company like Gap. There could be room for another brand in the premium segment, but they may be relegated to niche status.”
Winder said Amazon and other discounters are tough to compete against in the value segment of the market with their low price points, wide assortment, and convenience.
Exterior of Athleta store in Somerset Collection in Troy, Michigan. Photo: Somerset Collection
“A final consideration involves the Gap. If Gap can survive then Athleta may survive in Canada but if Gap falls on hard times Athleta could be sold off or closed down in Canada,” he said.
Mary Beth Laughton
Mary Beth Laughton, President and CEO, Athleta, said in a news release that international expansion is a key component of the retailer’s growth strategy to reach $2 billion in net sales by 2023.
“As a purpose-driven brand, we are excited to expand our community of empowered and confident women and girls to Canada and bring them a differentiated and inclusive offering in the performance lifestyle category,” she said.
Christine Cowan, a retail expert based in Portland, Oregon, who has worked with global brands such as Nike and Adidas, said the Athleta brand could find success in Canada because it also reaches out to perhaps a different customer than lululemon. And while the two brands are playing in a similar field, that could definitely be the way the new player makes some inroads on the veteran retailer’s home turf.
Cowan, who runs a consultancy called Innovate Strategies, said the Athleta brand has done very well in the United States.
“They have sort of found a success model where they’ve had the Gap, they’ve had Old Navy, and Banana Republic, and I feel like Athleta and Old Navy have sort of risen to the top and Banana and Gap have fallen off. And I think the reason Athleta has been successful at least in the U.S., is yes, they have a bit of a lululemon model, but I think they have gone a little broader base. They’re broader base in terms of swim. They’re broader in that they do this trekkie outdoor product and then they do some office wear type stuff. It’s more fringe on the office side,” she said.
Interior of Athleta store. Photo: Gap Inc.
Interior of Athleta store. Photo: Gap Inc
“I think they’ve positioned themselves as a bit more broader based. Lulu obviously has got the mainstay in Canada and I would say lulu’s quality is a little bit more superior to the Athleta brand. I’ve got a number of their products and while they’re good quality, they’re not as high a quality as lulu. Their pricing structure is a little lower than lulu in some areas. From a pricing perspective, consumers will appreciate that.
“The other thing that differentiates them is that lulu’s got their community and they’re really entrenched in their sort of yoga mentality. I think Athleta tries to have a community and they position themselves like that but I don’t feel like they’ve done a deep dive like lulu has done. The one thing I also think is interesting about Athleta versus lulu is I think Athleta has really embraced the diversity piece in terms of sizing. They go up to like a triple XL. I think lulu is trying to get more body inclusive but I really feel Athleta has.”
Cowan made her mark at Nike Canada, opening the first Nike banded store. She then moved on to lead several global categories at the Nike HQ in Portland. She said Athleta has many girls’ products where in the past this area hasn’t been successful for lululemon.
Athleta is a certified B Corp. Over 70 percent of Athleta product is made from sustainable materials.
“The other new thing they’ve got is they’re doing a sleep line. With Athleta, they’ve got their base through Gap and Banana already so to come into the market they’ve got their structure in place, they don’t have to worry about that, and they have a bit of a consumer understanding from that point,” added Cowan.
Interior of Athleta store. Photo: Gap Inc
Interior of Athleta store. Photo: Gap Inc
“I do think they have similarities in their demographic (to lululemon) but then I think Athleta’s demographic is just a little more differentiated than lulu. It’s a little more broad based. They’re trying to appeal to the masses. The consumer you see going in there is not necessarily the same consumer I don’t think you’ll see at lulu.
“And the other thing they do a lot of is they put a lot of product on sale. They’ve got a huge section in their stores of sale items and product. Lulu just has a little section of it. But they’re driving consumers in with a lot of their sale price products as well.”
Cowan said the women’s activewear sector of retail has received a lot of attention recently with leggings and yoga wear becoming a popular clothing of choice for people.
“This market is here to stay. Athleta wants to grow the business and Canada’s a great opportunity to test the waters internationally for them. While it’s got similarities, obviously the Canadian market is a little different but I think as they look to expand beyond the U.S. Canada is a great litmus test for them,” she said. “The Canadian lifestyle is very active. People are out doing things. They’re willing to pay for a quality piece that’s going to survive for a long time. That type of product has the ability to be worn for multiple situations.”
Exterior of Vancouver’s new MEC flagship store. Photo: MEC
There is a short list of retailers in Canada that hold a special sort of place in the hearts and consciousness of consumers across the country. It’s not a list that’s been physically recorded, yet it’s one that is understood by most. It’s comprised of companies and organizations that have made significant contributions to their communities, supported the needs and lifestyles of their patrons and woven themselves, in one way or another, into the overall fabric of Canadian society. It’s a list that denotes an iconic status as leaders of the industry in the country, and of brands that reflect the values and beliefs of its citizens. Among this list, surely, is Vancouver-based MEC. And, to help celebrate an incredible 50 years of operation, the leading Canadian outdoor retailer is doubling down, refocussing on its commitment toward creating positive social and environmental impact and to continue leading into another half-century of business.
Eric Claus
“The brand has always meant so much to Canadians,” says Eric Claus, CEO and Chairman of MEC. “It’s experienced such a beautiful trajectory of growth throughout its history with respect to the value and trust that it’s engendered in people across the country. To many, MEC is more than a business. It means something more to Canadians, reflecting and representing the needs and desires of the outdoor community. Today, we feel really lucky to be the stewards of this incredible brand and to build on the legacy of the first 50 years. We have a lot of exciting plans to take MEC to the next level and to continue enhancing the experience and rewards that we offer customers.”
The MEC Philosophy
Though plans for the future may be exciting, Claus reflects on the year 2020 as a very difficult one for the brand, referring to it as “the most challenging in the company’s history”. He says that financial problems which were compounded by impacts of the COVID-19 global pandemic were too much to withstand, problems that culminated in the co-operative with an estimated 5 million members becoming a privately-owned company via its sale to Los Angeles-based investment group Kingswood Capital Management in October of last year. Claus, a former grocery executive, was appointed to his current position in the same month, representing one of the first orders of business of the company’s new owners. He says that, although the ownership structure of the company has changed, the philosophy by which the company operates has not.
“The ethos of the company and the way we conduct ourselves as a brand remains the same,” he asserts. “We’re committed to continuing the legacy that MEC has built through the years, giving back to the community and supporting and highlighting the benefits of the outdoors. We’re pleased to be able to do that, solidifying the foundations of the brand further and our dedication to everything we believe in.”
Significant Community Support
To that end, the outdoor retailer recently announced the development of its Outdoor Impact program through which, during the course of the next year, MEC will donate $1 million to benefit and support non-profit organizations across the country that are responsible for critical work in the outdoors. Partnering with national organizations, which include Avalanche Canada, Spirit North, Parks Canada, Association of Canadian Mountain Guides, Park Bus, Alpine Club of Canada, Canadian Parks and Wilderness Society, Protect Our Winters, Leave No Trace Canada, The Royal Canadian Geographical Society and Take Me Outside, the company will provide funding and gear to help build capacity in areas that support shared priorities.
“This type of community support is not something new to MEC,” Claus says proudly. “We’ve now invested more than $45 million into non-profit organizations that share the same vision as us and passion to support outdoor recreation and conservation. The brand has always backed these kind of community initiatives. And, through our Outdoor Impact program, we’ve also made sure to partner with organizations that prioritize diversity, equity, inclusion, responsible outdoor recreation and accessible skill building. These are things that are really important to the brand and very much a part of who we are.”
MEC store on Toronto’s Queen Street. Photo: MEC
Sustainably-Focused
In addition, as one of the industry’s leaders in sustainability, the company will also be concerting efforts to support the advancement of its goals and commitments toward improving its social and environmental impact. As such, MEC has dedicated to producing 30 percent of its clothing in a Fair-Trade Certified factory by 2023, and 50 percent by 2025; ensuring that 50 percent of the polyester in MEC Label products is made from recycled content by 2023, and 100 percent by 2030; and by partnering with producers that abide by ethical employment standards and responsible practices with respect to the end-of-life of their products. They are lofty goals set by the company. But, as Claus points out, it’s all about continuing to do the right thing.
“This is another area in which MEC has always been known for,” he says. “We’ve set some really aggressive sustainability goals which requires us to work really hard with our supplier-base and push the limits in order to ensure that our product is ethically-sourced. We’ve agreed as the leadership team at MEC that responsible and sustainable practices will continue to be a cornerstone of the brand and one of the critical components of our business that will continue to drive us forward. It’s about doing what’s right for our customers, the planet and the people who help produce our products.”
People Power
It’s an approach that the company has never strayed from in its previous 50 years. And through intensified goals and targets, it’s already setting the tone for the future of MEC. Much of the direction and execution of these ambitions through the years have been supported not only by the foundations that the company was built on, but by the people that it has employed. And, according to Claus, it’s another aspect of the outdoor retailer that has never changed. In fact, he credits the strong relationship between the brand and the employees it attracts as the most important contributor toward ensuring MEC’s continued success during challenging circumstances.
“The team of people at MEC are absolutely amazing and have really shown their qualities over the course of the past 14 months or so to help the company get through a very difficult time,” he says. “They’ve been instrumental in making sure that our valued MEC customers receive safe and efficient service throughout the COVID period. As a result of these unique circumstances, many of those working in the stores have been dealing with a great deal of stress. And, as a business, we’re very cognizant of that and are supporting those frontline workers in whatever ways we can to ensure their physical and mental health. They’ve been incredible though in supporting shifts that we’ve needed to make as a result of store closures. We’ve taken almost the entirety of our online business in the east of the country and are shipping from stores, temporarily leveraging them as mini fulfillment centres. The level of commitment and dedication from everyone involved has been tremendous and critical in allowing us to make these necessary shifts.”
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Interior image of Toronto's Queen Street MEC store. Photo: MEC
Interior image of Toronto's Queen Street MEC store. Photo: MEC
Interior image of Toronto's Queen Street MEC store. Photo: MEC
Interior image of Toronto's Queen Street MEC store. Photo: MEC
Interior image of Toronto's Queen Street MEC store. Photo: MEC
Increased Outdoor Activity
Claus’ praise of the MEC team seems endless, emphasizing the importance of their response to the current situation. And, in conjunction, he’s also recognized a similar response from the Canadian consumer who, according to recent studies, is showing an increased interest in self-care practices and habits as well as outdoor activities. In fact, MEC is already experiencing record increases in camping and hiking sales for spring 2021. And, according to the company’s CEO, it’s helped affirm yet again the values and qualities that define the brand and the direction of its focus going forward with respect to the product it carries.
“There has been a massive shift in the categories that are selling during the pandemic,” he says. “Anything that is directly related to an outdoor activity like cycling, camping, and climbing is doing very well. People have decided to get outdoors over the course of the past year, to take advantage of the time they have to improve themselves. The increase in these categories has been incredible and have actually helped direct us and refocus on tailoring our assortment around the products and gear that have made MEC what it is today and providing our customers with the most relevant items possible. And, going forward, we’re going to continue to put a lot of emphasis on the MEC label to improve the fit of the garments and to strike the right balance between the functional, technical and stylistic aspects of the pieces.”
New Member Benefits Program
As part of the recent increase in outdoor activities undertaken by Canadians across the country, Claus says that the company has been very fortunate in helping to introduce many first-time MEC customers to their offering and the value of outdoor recreation. It’s allowed the company to continue extending its reach to and broaden its awareness among a whole new set of customers. And, to reward its growing base of customers further, the company recently introduced its new no-fee MEC Membership. Developed to provide more meaningful benefits, the program offers MEC members online expert appointments, exclusive bike and ski service promotions, access to outdoor skill building workshops and seasonal events, exclusive offers and promotions on new product, as well as a 30-day price match guarantee. They are, indeed, attractive benefits. However, Claus, who has been a MEC member himself since 1984, believes that the true value of shopping and engaging with MEC remains its commitment toward best-in-class customer service.
“I’ve always known that when I visit a MEC location that I’m going to receive the best advice from experts who actually know what they’re talking about,” he says proudly. “This continues to be a massive focus for us, to maintain that consistently high level of customer service and to continue to be the leader in outdoor gear and advice. The combination of the exceptional experience that we provide for customers and our new member benefits is really helping to position us well as we continue to build out our programs and services further.”
Opportunities for Further Growth
Beyond the moves that the company has made to strengthen its proposition to customers, its also downsized its head office and retail footprint and introduced a new hybrid work-from-home structure for office employees in efforts to streamline the operation and reduce overhead costs. Claus is confident that all of these tweaks to the business, while adhering to the aspects of the brand that have made MEC what it is today, have positioned the company well to not only deal with current challenges in a COVID-ravaged society, but to grow exponentially post-pandemic as well.
“We’re working diligently to continuously increase our brand relevance and to reconnect to our roots as the leader at the forefront of the outdoors in Canada and the place people go for the best product and advice. We’re also looking at certain markets where we can potentially include additional store locations in order to reach even more prospective MEC customers. There are still opportunities for the brand to improve and grow on its achievements to date. It’s a really exciting time to be involved at MEC and to have the opportunity to be a part of the continued success and evolution of this iconic Canadian brand.”
There has been a dramatic shift in consumer loyalty and purchase considerations in the latest 2021 Gustavson Brand Trust Index (GBTI) following a “tumultuous” year with the on-going COVID-19 pandemic.
The Index found that previously trusted brands such as Amazon, Whole Foods, Air Canada, and Tesla Inc. dropped in the rankings as consumers felt that the companies’ values no longer aligned with their own.
Saul Klein
Saul Klein, dean of the Gustavson School of Business at the University of Victoria, said more than ever CEOs are being viewed as societal leaders entrusted to take a stand on social issues from climate change to addressing racial injustice.
“As the world climbs out of the pandemic, brand awareness is no longer the currency of business — consumer trust is the priority. There is a need for companies to rethink how they are driving positive societal change,” he said.
“Amazon may be past its peak in terms of brand trust. While more Canadians have used Amazon services than ever before, concerns about the company’s broader impact have resulted in Amazon dropping sharply in this year’s study. Whole Foods had always prided itself on its employee culture, but the company’s brand trust and advocacy scores plummeted in 2021, and employee relations may have played a part in that.”
This is the seventh year of the Index.
According to the study, Amazon lost 17 points in overall brand trust in 2020. The report attributed this sharp decrease in its brand trust score to the numerous controversies Amazon had faced, including accusations of monopolistic behaviour and allegations of poor employee treatment/working conditions, which culminated in employee rallies and concerns over privacy.
“This year it’s all about how brands behave responsibly during the pandemic. We’ve been looking at the three dimensions of how consumers look at brands. Ability, which is a product functionally-based dimension. Affinity, which is really relationship and service-based. And thirdly is the value-based, authenticity dimension, and it’s this one that we’re seeing start to take strong shape this year — more strongly connected with overall brand trust, it’s a stronger indicator of part of the word-of-mouth sentiment than it has in the past,” explained Klein.
“The brands who have responded in ways that were perceived by consumers to be acting in the best interests of society have enjoyed increased levels of trust, while brands that were seen as acting more in their own self interest, and trying to protect themselves during the pandemic, saw a fall.
Exterior of Dyson Store. Photo: Dyson
“And it’s not necessarily correlating with usage. To me one of the most interesting findings this year was around Amazon and we have seen trust in Amazon dropping before the pandemic but during the pandemic it continued to drop quite sharply even though people were using Amazon more and more. The key weakness in Amazon that we saw coming out was on that authenticity, value-base dimension where consumers just don’t trust Amazon to be acting in the broader societal interest.”
Klein said trust in key institutions, in society, and in business, has been eroding over the past few years.
“I think our societies have become much more polarized. There’s much more concern about truth and who you believe, what you believe, and in some cases, certainly spilling over from the United States, a very deliberate undermining of truth and that certainly erodes trust,” he said.
“But overall trust in brands has actually been pretty constant. At the brand level it’s a little bit different because consumers are really basing the trust more on their experience and what they’re seeing about a particular brand rather than the social media context.”
Lego at CF Richmond Centre. Photo: Geetanjali Sharma
Other key findings from this year’s Index include:
Younger consumers are less trusting than older consumers. The GBTI study found that millennials are less trusting compared to older generations. This appears to be due to the younger generation’s inclination to assign their loyalties to proactive organizations who they perceive to be helping solve long-standing societal issues and contributing to making the world a better place;
Trust in media is at an all-time low. In the Spring of 2020, the media category saw a spike in trust as people tuned in at the beginning of the pandemic. Since then, the trust bubble has burst, with all traditional and new media brands (except for Maclean’s Magazine) giving up most (if not all) of the gains they saw early on. Social media brands such as Facebook remained among the least trusted in the Index;
Trust in Canadian telecom companies is on the rise, but it is still the second least trusted category. Past year-on-year results had telecom companies showing signs of trouble, with nearly all of the companies seeing a decline in their brand trust scores. Three of the big four telecom companies, however, saw significant improvement after COVID-19 struck as they provided critical infrastructure for both work and social interaction.
The report highlighted four brands to watch in 2021:
Amazon’s trust scores plummeted last year. Will Amazon continue to fall out of favour with Canadians in 2021?
After coming under fire for hiring influencers to promote travelling, will Air Canada see brand trust fall?
In the first four months of 2020, Google saw a 14-point jump in its brand trust score. Will Google sustain its recovery in 2021?
How will the sale of MEC to a U.S.- based private investment firm affect consumers’ trust?
South Korean ‘naturalism-oriented’ cosmetic brand Innisfree is closing all of its Canadian stores and the company is blaming the COVID-19 pandemic. Innisfree opened its first Canadian store almost two years ago and plans were in place for a cross-Canada expansion.
“Circumstances have changed over the past year and we anticipate that the health and safety risks of COVID-19 will be impacting our ability to deliver the right experience for the remainder of 2021 and beyond,” said Innisfree in a statement on social media. “In that challenging context, we unfortunately had to make the difficult decision to close all Innisfree retail stores in Canada.”
Innisfree said its stores at the Yorkdale Shopping Centre and the Scarborough Town Centre in Toronto will both shut forever on May 8. The same statement noted that the CF Toronto Eaton Centre and CF Markville stores had already been shut. Ontario is currently in an extended retail lockdown until at least May 20.
Instagram Story: Posted May 3rd, 2021 via instagram.com/innisfreecanada/
In 2020, Innisfree had planned to expand its Canadian operations by adding more stores to the Greater Toronto Area as well as markets including Vancouver. Brokers in CBRE’s Vancouver office had said that they were working with the brand on a multi-location expansion including at the Metropolis at Metrotown, and industry chatter noted that West Edmonton Mall was in line to possibly get a store as well. The mall-based expansion could have seen Innisfree open stores in most of Canada’s leading shopping centres coast-to-coast over the course of several years.
The pandemic took the wind out of the sails for many brands expanding in the Canadian market, and Innisfree is a surprising one to announce its Canadian exit. The beautiful bright Innisfree stores were often busy with customers seeking out the brand’s popular beauty products that quickly became highly coveted as they gained consumer awareness.
Innisfree announced in February that the brand would be available at Sephora stores in Canada as well as online. It hasn’t been confirmed if the announcement was made in anticipation of Innisfree shutting its own standalone stores. The standalone direct-to-consumer brand store model was a trend that picking up speed across the country prior to the pandemic.
Photo: Innisfree Yorkdale (via Facebook)
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Photo: Innisfree Yorkdale (via Facebook)
Photo: Innisfree Yorkdale (via Facebook)
Innisfree, which operates hundreds of stores globally, is part of the Seoul-based AmorePacific Corporation, which features 33 health, beauty and personal brands under its corporate umbrella. AmorePacific launched the Innisfree brand in 2002. The brand had several stores in the United States and had shut all of them by late 2020. The brand is carried at Sephora in the US according to Innisfree’s website.
Innisfree’s slogan is “Clean Island, where clean nature and healthy beauty coexist happily,” and the brand is known to be eco-friendly — something sought by many consumers lately. Particularly targeting women aged in their 20’s and 30’s, Innisfree is said to be South Korea’s first all-natural brand with many of its ingredients being sourced from Jeju Island. Its products include a wide range of products for both women and men including skin care, makeup, hair and body products, fragrances, beauty tools, and sun care.
About 80% of Innisfree’s ingredients are natural and the company says that its products are “plant-to-bottle”. The company also promotes its “green life” with activities such as reforestation efforts, recycling programs, and even an ‘eco-hankie’ to replace disposable paper products. The company donates 1% of its profits to eco-initiatives.
Photo: Innisfree Yorkdale (via Facebook)
Prices are considered to be affordable with many products ranging in the $20 to $30 range.
Innisfree is the latest international retailer to pull out of the Canadian market, and the second beauty brand to shut since the start of the pandemic last year. We reported in November of 2020 that L’Oréal-owned NYX Cosmetics was also in the process of shutting its Canadian stores after entering the market in 2015. At the same time, we’re getting word from industry insiders that several new international brands will be entering the Canadian market by opening stores this year, and we’ll be reporting on several of these in the coming days.
Exterior of CF Market Mall. Photo: Cadillac Fairview
Some Canadian shopping centres are turning unused outdoor parking space into patios to help support their food court tenants who have been devastated during the COVID-19 pandemic with business being impacted by public health measures restricting indoor dining.
Darren Milne, General Manager of CF Market Mall in Calgary, said the popular shopping centre in the northwest part of the city will have 25 picnic tables with about half of them covered by a huge tent.
Darren Milne
“We’ve done this in response to the government order for no in-person dining and as a way to support sales for our food court tenants. But, given the positive initial response, I suspect we’ll keep this patio in place until at least September,” he said.
“Deciding to move forward with the patio was really in response to the government closing indoor dining most recently. While I think COVID has been difficult on retailers, for our food court retailers this is the third time since April of 2020 that we’ve had to remove seating out of the food court. Generally speaking, when people eat at the mall it’s because they’re already here. People don’t generally drive to the mall to go to a food court outlet to get takeout.
“And so we just felt we had to do something to provide some kind of seating as a way to support food court vendors. So the patio was twofold. It was done in a way to support our food court vendors but we also wanted to do some placemaking and really just make sure if we were going to do a patio that it had a comfortable feel and atmosphere to it. It’s not just picnic tables thrown onto the sidewalk just to try and create space. We’ve not only made sure that the picnic tables are spaced appropriately per the guidelines. We’ve got some planters and flowers out there. We’ve done it in an area that actually has some trees in the parking lot. So while you’re on concrete it certainly actually feels a little bit like being in a really nice patio atmosphere.”
In Alberta, the guidelines stipulate that up to six people from the same household can partake in outdoor dining. So the seating capacity for Market Mall’s outdoor patio for food court tenants is anywhere from 25 to 150 people.
Photos of the CF Market Mall outdoor food court. Photos: Cadillac Fairview
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Cadillac Fairview said it can confirm that the company is also extending patios at CF Pacific Centre and CF Richmond Centre in BC as well as CF Chinook Centre in Calgary.
Milne said CF Richmond Centre last year was probably the first to do the outdoor patio.
“There’s at least four of us at CF that are doing this. I suspect that you’ll see a couple of more centres add patios as well as we have some further learnings on how this is working,” he said.
In a statement, Oxford Properties said: “Oxford Properties has introduced outdoor seating and dining at its shopping centres to support our Food & Beverage brands. Currently, Kingsway Mall in Edmonton and Southcentre in Calgary have placed exterior seating in proximity to the food court and restaurants. Supporting our shoppers, employees, and our retailers through this period of indoor dining restrictions gives us the opportunity to try new concepts. Outdoor dining areas will be introduced at our properties in Ontario and Quebec as government restrictions are lifted and patio dining is permitted. Outdoor dining areas provide shoppers and employees an opportunity to relax and recharge while supporting the restaurants and food and beverage brands in our centres. We also introduced designated parking spaces near food court entrances and restaurants to expedite and streamline pick up of take-out and delivery orders.”
CF Market Mall’s outdoor patio to facilitate the food court tenants. Photo: Cadillac Fairview
CF Market Mall’s outdoor patio to facilitate the food court tenants. Photo: Cadillac Fairview
Milne said the shopping centre doesn’t have an end date firmed up yet for the outdoor patio area.
“But the feeling is this. Even if indoor dining restrictions were lifted in the beginning of June, we still think that there will be people who might not be comfortable eating inside,” he said. “So we’re going to continue to have the patio until some time in September. The other piece of that is we’re going to give some consideration if this is something we want to do every summer. The reality is that now we’ve purchased the tent and the picnic tables, there might be an opportunity to make this as part of the experience of coming to the shopping centre. And I think even outside of COVID, on a nice day, if people have the option of eating outside, they’ll want to do that.
“COVID has kind of pushed us to do something we might not have normally done but in creating this patio we’re going to continue to think of ways if it can become permanent in the summertime and how that would look and what else we would need to do. There’s some good things that have come out of that.”
Adversity, disruption, and uncertainty. They are likely the three descriptors that will be most often employed in future to help identify the tenor of our current times, both here at home and around the world. They will be helpful in framing many of the difficulties that people in communities everywhere have struggled with for more than a year now, difficulties that are set to persist at least through to the foreseeable future. And, they’ll also most accurately describe the turbulence that’s been experienced by most retailers within the industry to this point. Despite the reality of these times, however, there are organizations that have managed to withstand the impacts of the pandemic to varying extents. And there are even some, like Peavey Industries LP, that have continued to grow.
Boasting a storied history within the industry that spans more than a half century, the company is not unfamiliar with the effects of adversity, disruptions, and uncertainty. Originally founded in Winnipeg, Manitoba in 1967 as part of National Grain, the company opened its first National Farmway Stores location in Dawson Creek, British Columbia. After early success that saw the retailer open 20 stores within its first couple years of operation, it underwent a couple of acquisitions, a change to the brand name, and a lingering unpredictability concerning its future. However, in 1984, on the back of two years’ worth of hard work and creative efforts, the company was bought by management, establishing it for the first time as a wholly-owned Canadian company. The nature of Peavey’s first 17 years of business, and the resilience that was required from everyone who was involved, helped to lay a foundation for the brand and cultivate a culture of perseverance and innovation within the organization that remains very much intact today.
Growth Amid Uncertainty
The foundation and culture that it’s developed has also lent toward the development of qualities and characteristics that include agility, nimbleness, adaptability, and courage, enabling it to cope with impositions on its business and the industry at large, positioning it well to meet the tumult of the current situation. Operating three brands — Peavey Mart, Ace Canada, and MainStreet Hardware — the company also possesses an intimate understanding of and relationships with its loyal rural customers, supplying them with an impressive array of products and services that cater to their down-to-earth lifestyles, including agriculture, farm and ranch, pet, workwear, lawn and garden, hardware and homesteading supplies. It’s this combination of strong organizational foundation and dedication to its customers, along with its fortune of being deemed an essential retailer, that allowed Peavey Industries LP to assume a leadership role during these past 13 or so months. And, according to Dave Simmonds, Chief Operating Officer at Peavey Industries LP, it also helped to inform the company of its responsibilities and direction.
Dave Simmonds
“COVID has obviously been a real game-changer for many within the retail industry,” he recognizes. “Very early on, we realized the seriousness of the situation and got to work immediately on creating a safe and comfortable environment and experience for our employees and customers. It’s remained our first and foremost concern throughout the pandemic. And what we’ve learned is that execution really matters in a situation of this magnitude. And it’s through effective execution that you build further trust with customers. Unlike a lot of other retailers, we were considered essential. Because of this, we didn’t have time to go off in a closed environment to figure out how we’d do this. We did this quickly as an organization, collaborating daily in real-time with our store operators across the country, allowing us to remain nimble, receiving and acting on constant feedback in order to continuously improve our operations throughout the pandemic.”
Digital Enhancement
In addition to ensuring the safest, most comfortable environment possible for its employees and patrons in its stores, the company has also been incredibly busy throughout the pandemic, finishing work that it had started prior to the global spread of COVID-19 while breaking ground on new projects as well. The company completed the acquisition of TSC Stores at the end of 2017, converting 51 locations in Manitoba and Ontario into Peavey Mart stores, adding to its 34 existing locations in British Columbia, Alberta, Saskatchewan, and Manitoba. It recently wrapped up the conversion in full on March 20 of this year, followed closely by the launch of the company’s new peaveymart.com website on April 1, which merged both tscstores.com and peaveymart.com to create an entirely new digital experience for the brand and its virtual customers. It’s a feat that Jest Sidloski, Vice President Marketing, Customer Experience and eCommerce at Peavey Industries LP, recognizes as a massive achievement and the final piece of the company’s national brand alignment.
Jest Sidloski
“The entire team has put so much work into the store conversion,” he explains. “It was a monstrous task and an accomplishment that we’re really proud of. It’s the reason we’re celebrating with our National Grand Opening Month at all Peavey Mart locations in Canada throughout the month of April. Our brand conversion finalized, and our celebrations started with the soft launch of our website, which has been introduced as a starting point from which features and benefits can rapidly grow. There are a lot of enhancements coming to the website, including personalization and a more intuitive search. PayPal will also be added into the system very soon. But, initial traffic on the site at the moment is incredible. Site and checkout speed improvements have been made and sales are off to a good start as well. In fact, our conversion rate today is about three-times higher than it was on our old platform. Consumer feedback has been amazing. We really couldn’t have asked for a better launch.”
Expanding Store Network
Sidloski also points out that peaveymart.com e-commerce sales in 2020 were twice that of the previous year, but says that the best is yet to come with an improved experience supported by a more robust infrastructure. However, digital is not the only area that the company is investing in. It also recently completed impressive expansions of its Camrose and Vegreville Peavey Mart stores in Alberta, and announced three new locations in Airdrie, Alberta, Brooks, Alberta and Prince Albert, Saskatchewan. What’s more, a new flagship location for the brand will be erected in Red Deer, with ground breaking in May of this year and an opening scheduled one year later. The addition of new locations to the Peavey Mart store network is clearly a signal of intent from Canada’s national farm and ranch retailer. But Simmonds believes that it’s also a testament to the character of the company and the path it had long ago set.
“We’ve been very much a growth company for quite some time,” he asserts. “In fact, many of our most recent initiatives, including our acquisition of Ace Canada, new locations, the development and launch of our new website, were all part of our strategy long before COVID. We had already identified them as opportunities for growth. Staying on track with the company’s vision and delivering on these critical pieces has been key to much of our success. And, of course, maintaining an unwavering focus on our customer helps to drive everything that we do. Our customer-base had been growing year after year prior to the pandemic. But COVID has in a big way highlighted Peavey Mart and got the brand recognized by people outside of our traditional markets. As a result, there are a lot of customers that have recently discovered the Peavey Mart brand and the fact that we have the items that they’re looking for. Because of this, we were presented with a massive opportunity to be there for Canadians during a difficult time.”
Exterior of Ace Canada store. Photo: Hardware Retailing
People Power
When speaking of the tremendous growth that the company has experienced in recent years, as well as the opportunities that it has managed to seize, Simmonds directs much of the credit toward the people at Peavey Industries LP. He describes the company’s employees as its greatest asset, saying that they have been instrumental in executing on all of the initiatives that have been undertaken over the course of the past five years or so. And he says that the role they play in helping the company continue to move forward amid further growth will be just as critical.
“The biggest reason for our success, both prior to COVID and during the pandemic, is our people,” he states. “They’ve helped to support our growth strategy and are so important in helping to collectively achieve our goals and targets. Without them and their level of commitment to the company, we wouldn’t be able to deliver on anything that we’re currently doing. And, as a group, the company continues to learn as we grow. It’s very much a part of our culture and history. The Red Deer flagship is exciting because it gives us the opportunity to take all of the things that we’ve learned over the last several years and leverage them to create an incredible experience for our customers. And that learning and evolution helps us consistently look toward the future as well. For instance, there’s tremendous opportunity for us to really grow the Ace brand in Canada and further develop what it means to Canadians.”
Continuous Improvement
Complementing the growth of its store network and investment into enhancing the digital Peavey Mart experience, the company also offers its highly successful private label products, including OxGear, Harvest Gear, Harvest Grade, Harvest Goodness. And, it just recently launched its online seed store, onlineseeds.ca, a service that delivers garden and vegetable seeds right to the customer’s front door. It’s all representative of the company’s relentless pursuit of growth and commitment to the communities it serves. But, according to Simmonds, it’s also indicative of Peavey Industries LP’s dedication to constantly improve its offering and the experience it provides for its customers.
“Internally, we’re working through a number of different projects that are aimed at improving our efficiency and effectiveness operationally. We’re adapting some of our systems to enhance the work we do and how we do it. It’s going to enable our current and future growth. We’re also having a lot of great conversations around further store growth for both Peavey Mart and Ace. There’s a lot of white space across Canada. And as a national retailer, we’re going to be looking to introduce our brands to new markets. We’re also always looking very closely at product lines and assortment that will complement what we do, presenting us with lots of opportunity for organic growth. And, enabling a lot of our growth is our new digital omnichannel strategy. It’s allowing us to extend our reach even further into communities right across the country. It all adds up to very exciting things for the company, its brands and our customers.”
