We’re in the midst of a two-to-three year period in human history that has no doubt already been marked indelibly by the pandemic and its impacts. In future, textbooks within the halls of academia will denote these years with an asterisk as a time unlike most others when our traditional ways of doing things were usurped by a new normal and when uncertainty was the only absolute. For the retail industry, by and large, these years will be remembered for the turbulence and disruption caused by a global virus that forced an overturn of the industry’s status quo. However, increasingly, it seems that the early twenties may also be noted in the years and decades to come as a moment of pivot and shift that ushered in the true age of digitization.
Represented most predominantly by the abrupt and intense escalation of online spending by Canadian consumers and the simultaneous escalation of retailer e-commerce efforts, the past twelve or so months have yielded significantly altered shopping behaviour and preferences that have resulted in a revised retail landscape. And, as many pundits within and around the industry ponder whether or not these alterations will be sustained through to a post-pandemic world, their significance continues to grow, opening up new opportunities for retailers to expand their services in order to deliver and support the choice and options that today’s digital consumer is seeking. One of those opportunities for expansion is in the leveraging of social media as an influential and potentially powerful tool for commerce. It’s an area of growth that’s recognized by David Nagy, Co-Founder of eCommerce Canada, but one that he says is simply reflective of the progression of e-commerce and the continued development of retailers’ omnichannel strategies.
“Traditionally, social media has been an incredibly effective platform to build awareness for brands,” he says. “It’s most typically been used to reach and intercept users to make them aware of something that they may not have ever heard of before. It has for years now served a very important function in helping to fill the marketing funnel. However, this is a function that’s slowly been changing over the past few years. We’ve experienced the recent evolution of commerce in social media with more and more retailers employing a click-to-buy philosophy and the increasing inheritance and use of product data feeds to make product shoppable on social media. Social channels are becoming more attune to the data that they possess and the power and potential of that data. And, as people become more comfortable using these channels, and a trust is developed in them, it stands to reason that they’ll also become more comfortable with direct conversions through social media.”
Rise of Social Commerce
According to ReportLinker.com, the global social commerce market is projected to grow in excess of $762 billion by 2027, an increase of nearly 700 percent from it’s currently estimated $113 billion. And, it’s no wonder given the popularity of social media networks and the ever-expanding activity among their users. A report published by the Ryerson Social Media Lab in July of last year titled The State of Social Media in Canada 2020 indicates overwhelming use by Canadians, suggesting that 94 percent of adults in the country are active on at least one social media account. PayPal Canada revealed similar findings in its inaugural Social Commerce Trend Study. Conducted and released pre-pandemic, the study reflects the growing movement, stating that an estimated 47 percent of social media users in the country had already completed purchases via the various platforms, spending an average of $924 via social channels each year.
As a result of this undeniable activity, according to Canada Post’s 2020 Canadian E-Commerce Report, retailers in the country are responding. The report shows that 55 percent of retailers with e-commerce capabilities are actively selling product through the channel, with the majority leveraging Facebook (95%) to do so, followed by Instagram (69%), Twitter (14%), Pinterest (11%) and Snapchat (3%). The combination of these statistics goes a long way toward highlighting the momentum the trend is gaining. And, according to Nagy, the results of increased adoption of social media by retailers as a channel of commerce are likely inevitable, broadening the opportunities available to merchants online and the e-commerce ecosystem as a whole.
“E-commerce continues to become infinitely more complex than it once was,” he explains. “What’s so interesting about it is the diversity of the channel. Retailers are beginning to recognize that e-commerce is not just the checkout on their store. It’s not simply their deployment of Shopify or Magento or LemonStand. Today, it is any and all channels where revenue can be generated. So, e-commerce now becomes that checkout on Instagram, the product data feed that’s going to Google Shopping and activity on Amazon. Most good businesses today, if they have the opportunity, are promoting and selling product through their customer’s channel of choice. And at the moment, that could be five, six or even seven selling channels. Selling online is quite complex from that perspective, and I believe that social media is here to grab a larger piece of that pie. My expectation is that the platforms will continue to evolve and drive more sales, resulting in a larger percentage of overall retail revenue generated through the social channels.”
Accelerating the Trend
The rise in social commerce has been represented by a slow and somewhat steady curve in recent years. However, impacts of the COVID-19 global pandemic have resulted in a spike in activity, serving to accelerate consumer recognition of the channel and retailers’ leveraging of it. Driven primarily by lockdowns and social distancing protocols across the country and world, social media platforms have over the past number of months helped retailers everywhere bolster their e-commerce initiatives and offering and compensate significantly for the lack of physical retail footfall and decrease in overall revenue. In short, social media has quickly become an extremely viable channel for retail growth. And, according to Garrick Tiplady, VP & Country Director, Facebook & Instagram Canada, the need for retailers to intensify their online efforts has never been greater.
“There is and should be a strong correlation between retail businesses and social media tools,” he asserts. “People are spending more and more time online, so businesses need to be online, too. This was true before the COVID-19 pandemic, but it’s become even more important now. We’ve jumped forward by a decade. People all over the world are shopping online more than ever. And it seems as though this rapid rate of e-commerce adoption will likely be sustained even after the pandemic. Now, every business needs to be an e-commerce business. With the right tools, adopting a digital-first approach can open up a world of opportunity.”
Facebook Shop
To help retailers realize the opportunities available to them, Facebook recently launched Facebook Shop — a new tab on the Facebook app for daily shopping inspiration from sellers with shops on the platform, providing every merchant, from global brands to small independent businesses, the ability to set up a virtual storefront for free. The Shop browse feed helps surface multiple products, content and shops from a multitude of merchants. And, through its Commerce Manager, businesses can curate their own collections of featured products, allowing Facebook and Instagram users to discover their wares within a new, more engaging experience.
“We want to make shopping seamless and empower anyone, from a small business owner to a global company, to use our apps to connect with customers and establish their brand,” says Tiplady. “With Facebook Shop, for example, we’ve accelerated our work in commerce to build new solutions given the challenges businesses of all sizes are facing with the pandemic. We launched Facebook Shops to make it easy to set up a single online store for customers to access on Facebook and Instagram. It’s free and simple to create a Facebook Shop. Businesses choose the products they want to feature from their catalogue and brand the shop with customized colours and fonts. Shop makes it easier for businesses to set up their storefront to sell things online and creates a seamless experience from discovery to purchase, across Facebook and Instagram, and even through incorporating Messenger and WhatsApp. Many of our existing and new commerce products will now be part of Facebook Shop to help with the discovery, consideration, and purchase experience.”
Tiplady says that the speed at which retailers adapted their offering over the past year to move more of their product and services online was impressive, citing numerous examples of Canadian businesses that have started to sell, to great effect, through Facebook’s social media platforms. Bollywood Body, a Brampton-based semi-private gym, pivoted to offer virtual workouts to their online community and expanded their reach by providing online coaching to their clients globally. Vancouver-based and Indigenous-owned, Sisters Sage, relied heavily on in-person sales prior to the pandemic to sell their hand-crafted wellness products. Shifting their business online through the development of an online storefront and utilizing personalized ads to target new customers, its sales increased by more than two-and-a-half times. Based on examples like these, there seems to be little doubt as to the size of the commerce pie that social media is carving out. And its growth is rooted to a consumer shopping trend that’s only now beginning to burgeon.
Putting a Pin in it
In addition, Pinterest, one of the fastest growing social media platforms, is also concentrating much of its focus toward consistently enhancing and improving its commerce offering and capabilities and the experience for retailers and consumers alike. The site, which gained an additional 100 million users in 2020, now boasts more than 450 million monthly active users. And, according to ComScore, 13 million of those monthly visitors are Canadians. The platform allows retailers to create Product Pins that are enriched with metadata and formatted to let people on Pinterest know that they’re shoppable, providing pricing info, availability, product title and description, enabling merchants to effectively get their products in front of people who are already looking for ideas and things to buy. And, according to Dan Lurie, Head of Growth and Shopping Product at Pinterest, the social media platform continuously strives to create a unique experience for users in order to elevate brands and the products they sell.
“We are living through unprecedented times,” he exclaims. “Retailers have experienced a lot of change in their businesses over the course of the past year. As a result, e-commerce has become more important than ever to their omnichannel strategies. It’s a critical part of the reason why Pinterest is working hard to replicate the offline shopping experience for our online users. Some of the most significant pieces of the customer journey are found within moments of inspiration. Right now, online shopping seems very transactional. We want to help retailers create those same moments of inspiration on our platform, providing them with the opportunity to increase their exposure and interest in their products and services.”
Considering those moments of inspiration, more than 4.5 million ideas in the form of Pins are saved on Pinterest every day by Canadian users. And, through its unique combined use of machine learning and computer vision, the platform supports those inspirations and the shopping experience for its users while providing retailers with the opportunity to capture their attention through organic search as well as prominently placed advertisements. In addition, the social platform is also busy innovating, developing tools like its augmented reality technology which allows users to try on makeup through its app, as well as others that are currently in development, in order to enhance Shoppable Pins even further. The innovations are impressive and, as Lurie points out, are all part of Pinterest’s intention to continue developing and improving its commerce experience.
“People are generally coming to Pinterest with the same or similar mindset,” he explains. “They’re visiting to be inspired or to help inspire. And, they aren’t often visiting with branded intentions. In fact, 97 percent of searches on Pinterest are unbranded, providing incredible opportunities for businesses to acquire customers that they didn’t currently have. To help support their social commerce efforts, we have a set of features that make it really easy to set up shop on Pinterest. We recently launched our integration with Shopify, a new merchant storefront to help merchants create their social commerce presence, as well as a number of tools to help scale sales. It’s becoming increasingly imperative for retailers to make sure that their omnichannel offering is as robust as their customer’s preferences. And Pinterest’s goal is to provide a seamless way for them to incorporate social media into their e-commerce strategies.”
Another Omnichannel Option
The growth of social media over the past twelve months as a channel of commerce for retailers has been remarkable. And, although it may not reach the loftiness of predictions and projections, it seems likely at some point to transcend its traditional role as the builder of awareness at the top of the retail marketing funnel to serve a greater purpose with respect to the generation of revenue and growth. It’s also serving to an extent to shorten the online customer journey in some cases and could potentially aid in increasing notoriously low e-commerce conversion rates. In some ways, it seems as though the true value of social commerce has yet to be tapped, presenting multitudes of opportunities for brands to realize going forward. However, when it comes to the social commerce payoff for retailers and the effectiveness of their efforts, E-commerce Canada’s Nagy suggests that it will be about aligning perspectives with that of the Canadian consumer.
“Industry types come up with nomenclature for everything in order to differentiate them from one another. Digital. E-commerce. Social media. They try to parcel and package in order to design customer journeys and experiences around all of these things. And the customer is unaware of any of it. They’re agnostic to it and really couldn’t care any less. They have a need, a point of pain, a desire. And they hope to have those things fulfilled. The process of discovery can come in a lot of different ways. And depending on the day, the conversion can also come in a lot of different ways. Consumers can choose to order online from their favourite local retailer. Or, they can hop on their bike or get in their car and pick it up. So, what it comes down to for retailers is the fact that they are obligated to provide their customers with as much choice as possible in order to service them wherever they are. Social media is increasingly becoming one of those destinations for consumers, and could start to provide a more substantial stream of revenue and growth for retailers going forward. As a result, merchants will need to be active on those platforms, combining that activity with strong content and messaging to realize the full potential of the channel.”
Interior of new Lemonwood Luxury boutique in Unionville, Ontario. Photo: Lemonwood Luxury Instagram
Lemonwood Luxury, a unique apparel and accessories boutique store based in southern Ontario, continues to expand with the opening of its fifth location and plans to continue to grow the brand with more retail stores.
The latest store opening was in historic Unionville, Ontario.
“Lemonwood is primarily a retailer and wholesaler of women’s luxury apparel and accessories. We cater to a more mature market. So we have sort of a very focused view of our customer and who she is,” said Christine Peters, founder and owner of Lemonwood.
“She’s very educated and well travelled and already owns five pairs of black pants so we don’t really want to sell black pants. We want to sell something that will delight her. We source from all over the world to find the items that will delight her.”
The new store at 193 Main Street in Unionville is in the restored Hunter-Dukes House and Store c. 1850 and directly beside the renowned Unionville Arms.
The other retail locations are in Oakville (the retailer’s first one), Rosedale/Summerhill in Toronto, Collingwood, and Port Carling. It serves customers in the rest of Canada, the USA and internationally through its e-commerce offerings. Additional retail locations are currently in the planning stages, added Peters.
“We started on a side street in Oakville and quickly found out that it was a side street that people don’t usually go on. My thought was to do wholesale and to have a little retail front. And then we had the opportunity to sort of top up on a main street in Oakville and we stayed there as our flagship store. That was in 2017,” she said.
A vacant 193 Union Street before Lemonwood Luxury moved in. Photo: Sylvia Morris
“We have three more in the works that we’re looking at with the same sort of DNA structure of being in small villages and having a community presence in each of those locations. Each location has a really unique presence whether it’s in a little village or on the main street. Picturesque. That kind of destination spot. That’s what Collingwood is. That’s what Port Carling is. That’s what Unionville is. And the ones going forward. That’s where we look. We don’t want to be in malls.”
Currently, the focus is on the southern Ontario market but Peters said the company has plans to expand that in the future.
Peters has worked with smaller factories that employ and empower women. She started with a small factory in Nepal and today the company has factories it uses in India, Europe and other countries.
“These are smaller businesses that are either owned by women or run by women and employ underprivileged women in their workforce. That’s a really important part of the DNA of Lemonwood,” added Peters. “We’re trying to have sustainable fabrics, natural fabrics, and have this other narrative running through, who qualify to be one of our suppliers.”
Peters said the retailer’s philosophy is “elegance & simplicity” on all levels with Scandinavian-inspired boutiques that are bright and airy, with clean lines and uncluttered, at their core Modern Day fashion salons that emphasize personal service, that are built around all fibres wonderfully natural, including cashmere (over 100 different styles and 80 different colours of poncho wraps, scarves, shawls, sweaters and more), Italian linens, silks and bamboo and rounded out by beautiful clothing accessories (including designer masks), all curated from around the world, affordable luxuries presented by welcoming and knowledgeable personnel.
Peters said the company focused on its online business, like many other retailers, when the COVID-19 pandemic first hit.
“We gathered email addresses for a number of years and that’s really what helped us communicate to our existing clientele. That really helped. We had a loyal, loyal customer following. That really was how we got through this. The internet and communicating with our existing customers on a regular basis in a way that was meaningful and they could identify with the brand and not feel like we were hounding them for orders,” explained Peters.
“Opening up a little bit and then having to close again, it wasn’t easy. But we were getting through it. And every day it’s just trying to be creative in what we communicate and how we run our promotions and things like that to keep our customers interested in what we’re doing.”
Back in 2018, I wrote an article on the state of retail in North America after having spent more 30 years abroad. At the time, I was struck by the common narrative on the state of retail: retail is dying, long live Amazon.
Since the beginning of COVID-19, a similar narrative has spread. There is not a day that goes by when you don’t see or read about shuttered storefronts, retailers laying off employees, and retailers filing for bankruptcy or creditor protection as evidence of the economic impact of the pandemic. And once again, Amazon emerges as the leading player, albeit not quite as dominant.
However, despite real hardships for a number of retailers, looking in more detail at what has and is actually happening shows a more complex story and one where overall retail is healthy, resilient, and innovative.
Retail Remains Healthy, Growing Sector of the Economy
Prior to the pandemic, North American omnichannel retail average annual growth rates were over 4% in both Canada and the US.
2020 was no different. In the US, retail grew 3.4% with an economy that shrank by 3.5%. In Canada, overall retail sales dropped by 1.3% while the economy shrank by 5.4%. However, if we exclude the automotive part of retail (car dealerships, gas stations, etc.), retail sales in US grew by 4.1% and by 4.6% in Canada. Surprisingly healthy statistics by any measure, not those of doom and gloom.
Strong Shifts in What Consumers Buy and How They Shop
Over the last few years, consumers have changed what they buy and how they shop. Prior to COVID-19, consumers were better informed and price sensitive. They were looking for convenience, personalization, and a seamless omni-channel experience. Consumers were at the same time more focused on protecting their privacy and environmentally conscious. The pandemic accelerated these trends and new ones also emerged. Consumers have become more focused on safety, health and well-being, and community with lives revolving strongly around at-home activities.
The K shaped impact of the pandemic meant that some hard-hit households focusd on affordability — buying private labels and putting off most non-essential spending. For the other half who maintained their jobs and increased their savings in part due to strong stock and housing prices, they ended up making significant investments on house and garden improvements and hard goods purchases, such as furniture, cars, bicycles, and jewellery.
Unparalleled Innovations in Technologies
At the same time, we have been witnessing unparalleled technological innovations through AI, robotics, and big data, to name a few. These new technologies are allowing customers to experience frictionless retail and enhanced services, while allowing retailers to digitize and implement effective omni-channel operations.
Unprecedented Impact on Retailers
Prior to pandemic, two extremes were emerging among successful retailers: 1) those who focused on convenience and efficiency, such as Amazon, Alibaba, Wal-Mart, and Dollarama; and 2) at the other extreme, experiential-oriented retailers such as Starbucks, lululemon, Nike, Warby Parker, and a number of proximity retailers.
The initial phase of the pandemic strongly favored the convenience and efficiency-driven extreme, selling principally essential goods. At the same time, it adversely penalized the experience driven retailers who were mostly selling non-essential goods, and therefore saw their stores close during the different lockdowns. Those retailers finding themselves stuck in the middle and with weak balance sheets (high debt and poor cashflow), e.g. J Crew and Neiman Marcus, saw their demise strongly accelerate.
The pandemic also brought about an unprecedented increase in digital commerce, with its share of overall sales close to doubling in most countries and expected to stick post pandemic.
Despite being challenged by the impacts of the pandemic, physical retail proved more resilient than expected. Consumers flocked back to stores when they reopened, highlighting the importance of human interaction and the pleasure of physical shopping. Retailers rationalized their networks and reimagined the role of stores, with some like Walmart, Target, and Lowe’s making their stores the centrepiece of their omni-channel operations. We, therefore, saw a blurring of the lines with a strong increase in delivery from stores for online ordering, click and collect, curbside pick-ups, and new concepts like dark kitchens.
Big Winners and Losers
From the beginning, retailers focusing on convenience and efficiency have been able to take full advantage of the pandemic. As the pandemic progressed, and the -shaped impact became more apparent, retailers focused on at-home activities, health and wellness, home improvements, and big purchases of hard goods — with building material and garden supplies becoming the fastest growing segment in retail.
Other segments of retail suffered dramatically throughout the pandemic. Most newsworthy is the fashion industry, with drops of over 25% in their annual sales. Many proximity retailers were adversely affected, mainly with tight cashflow. And lastly, gas stations have had a horrible last 12 months as petrol prices tumbled and road travel slowed down with restrictions, work-from-home orders, and “staycations”.
Retail – One of the Most Innovative Sectors
These transformative years, including the pandemic, have led retail to become one of the most innovative sectors. In the last three to four years, 20%-30% of the most innovative companies, according to Fast Company’s rankings, are in the retail sector. This isn’t just due to the rise of Amazon, Alibaba, and other digital native players, but also due to more mainstream retailers like Walmart, Nike, lululemon, and tech-focused players such as Shopify and Lightspeed.
Nevertheless, the stories that touch me the most are those of small businesses that have completely pivoted their businesses to stay alive. Last summer, we, at the Bensadoun School of Retail Management (BSRM), held a Retail Innovation Competition to help local SMEs rethink and transform their businesses during and post pandemic. Student teams from all over Canada worked with four live cases. Here are three of those stories:
Café Barista – a BtoB coffee player that had to aggressively shift their focus to their online BtoC business and eventually launch a line of products in Metro supermarkets.
Food Chain – The pandemic forced them to practically close their restaurant locations focused on fast food gourmet salads. Instead of focusing on food delivery like many of their peers, they used their partnerships with local food personalities to focus on the wholesale channel with players such as Lufa farms to sell their expertise – small, but significant batches of new gourmet products at relatively affordable prices.
Can Am Fruits and Vegetables – Prior to the pandemic, they sold principally fruits and vegetables to restaurants and hotels. Within a week of the first lockdown, they launched an online offering of 500 products across all categories (e.g. meats, dairy, hygiene products, etc.). They did this on a shoe string, but focused on big orders of fresh, quality products with no frills packaging and used their existing fleet of trucks to deliver. One could think of a Costco-like online offering. This new line of business took off and exceeded their expectations.
Conclusion
Retail competition will continue to be healthy and fierce. There will be losers, for sure. But those who have worked hard to transform their operations in an omni-channel world, took risks to launch innovative businesses, and have worked hard to pamper new and growing loyal customers are emerging as winners and will have tremendous opportunities in the future. One thought provoking quote comes from McKinsey and Co. “rather than asking what benefits online can offer offline channels, players should ask how their brick-and-mortar presence can support e-commerce sales”.
In all cases, these retailers are continuously transforming their organizations to compete in the new world of omnichannel retail and to right size their organizations with the right talent. On this last point, they are all looking for new talent in areas such as performance marketing, social media, omni-channel operations, and supply chain. These are key areas of focus in all our programs at the Bensadoun School, especially the Master of Management in Retailing that we are launching in August 2021.
Charles De Brabant
Charles De Brabant joined McGill University in August 2017 to co-lead the creation of the Bensadoun School of Retail Management (BSRM). He has over 20 years experience in retail in Europe and most recently in China and South East Asia. Born and raised in Montreal, Charles holds a B. Com. from McGill, an M. Litt. in History from Oxford University and an MBA from Stanford Business School. Charles’ focus at BSRM will be on collaboration with local and international industry partners and the administration of the school.
Distillery District -March 2021 (Photo by Dustin Fuhs)
Retail Insider continues its Photo Tour series of Canadian retail centres to provide a window into shopping centres and retail districts across the country that are continuing to grow and expand while dealing with the effects of the COVID-19 pandemic. This edition takes us to The Distillery District in Toronto.
The Distillery Historic District is a commercial and residential neighbourhood, encompassing more than 40 boutiques and one-of-a-kind shops within a 13-acre plot of land in Downtown Toronto.
We connected with the team at The Distillery District in order to create a memorable and informative article for our readers. It’s important to acknowledge and thank Elena Price, General Manager of The Distillery Historic District, and the entire team at The Distillery District. We also want to acknowledge Laurie Weir from NextPR.
The Distillery Historic District. Photo: Dustin Fuhs
These images were taken over a period between March 10th and March 21st, 2021 during which Toronto was in the “Grey Zone” of a stay-at-home order and into a modified lockdown.
The History of The Distillery District
Distillery District National Heritage Site. Photo: Dustin Fuhs
The Distillery District stands on land that was originally the traditional territory of the Anishanabek First Nations (including the Mississauga of the Credit), the Haudenosaunee, and the Wendat. When the British began colonizing and subdividing the land, the space now known as The Distillery District was designated as a park. In the early 1830’s the park was divided into lots and sold in order to raise funds for a Hospital.
The Distillery Historic District History
One of the first to purchase this land was James Worts, a British immigrant who had been a miller for years. His intention was to partner with his brother-in-law William Gooderham to build a windmill and make flour and use some of the grains to make beer. The windmill was completed in 1832, but Worts suddenly passed away in 1834 leaving Gooderham to manage the business and take care of both men’s families. In 1837 Gooderham decided to add a distillery to the mill to make whiskey, ultimately changing the direction of the company. After a time the sale of whiskey became more than their sales of flour and the windmill was torn down.
As the Gooderham & Worts Distillery expanded they built more buildings that could specialize in different aspects of production. This was especially helpful during the First World War when many of those additional buildings were converted to making chemicals necessary for the war effort. When Prohibition struck Canada in 1916 Gooderham & Worts were able to keep producing alcohol as the Ontario Temperance Act did not prohibit alcohol production. By 1923 the Gooderham heirs sold Gooderham & Worts Distillery to Harry C Hatch who began bootlegging and rum-running his newly-purchased whiskey all over prohibition North America. He also took the time to change the name of the company to Hiram Walker – Gooderham & Worts.
A 1939-47 Dodge delivery truck parked in the trendy Toronto Distillery District neighbourhood
G&W maintained pumps and firefighting equipment at the ready, including the giant 1895 1200-gpm steam pump on display.
Art on the side of the Grain Mills
Grain Grinding Mill Stone at The Distillery District
Eventually the alcohol production at the Toronto branch of the Hiram Walker – Gooderham & Worts company stopped and the site focused on industrial alcohols, but even that was coming to an end and by 1990 all production at the old Gooderham & Worts Distillery had ceased. After it was closed it was used periodically for movie and television shows (hits include Tommy Boy, Cinderella Man, Chicago, X-Men, Murdoch Mysteries, and many more). But the future of the area remained uncertain — many of the buildings desperately needed expensive renovations and the entire Distillery had been designated a national historic site in 1988 which limited the potential for development.
Finally in 2001, Cityscape Holdings purchased the site, and by 2003, and after extensive restoration, it reopened as a hub for arts and culture. Today it is owned by both Cityscape Holdings and Dream Office REIT and is recognized as the largest collection of Victorian-era industrial architecture in North America.
The Distillery District in 2021
The Distillery District Entrance from Parliament Street
The Distillery District Entrance from Parliament Street
The Distillery District Entrance from Parliament Street
If you look at the directory below, there are three main streets (Tank House Lane, Trinity Street, and Gristmill Lane) with additional streets that are home to hidden gems. We’ll be focusing on the retail side of the location, but it’s important to share that the restaurants and tourism offerings bring the personality of the district to life.
The Distillery Historic District – Directory March 2021The Distillery Historic District Leasing Plan – March 2021
Distillery Retail News for 2021
Incubator Pop-Up Retail Spaces
The Distillery Historic District Incubator' pop-up retail space location
1 of 2
The Distillery Historic District Incubator Location. Photo: Dustin Fuhs
Looking up Trinity Street from the South Parking Lot. Photo: Dustin Fuhs
This is an exclusive announcement from Retail Insider on the area, and we are excited to share it with our readers.
In 2021, The Distillery Historic District will be launching 6 ‘incubator’ pop-up retail spaces in a high-visibility location at the end of Trinity Street. These pre-built storage containers will allow for new tenants to join the Distillery community starting in early summer.
The rental opportunity is unique, as the district is offering flexible leasing terms for varying durations and allow exposure to the current customer base. The spaces will be semi-permanent, which could be interesting for future tenants to join the lineup. It’s a way for brands and entrepreneurs to try a cost-effective solution for a physical location while testing the market and developing their proof of concept.
The containers are described as having elegantly styled, front glass doors and window panels. In addition to finished ceilings, wall and flooring the units will have a full HVAC system, Hydro, and Wifi.
Former Gallery Indigena Location in Distillery District - Photos by Dustin Fuhs
1 of 2
Former Gallery Indigena Location in Distillery District. Photo: Dustin Fuhs
Former Gallery Indigena Location in Distillery District. Photo: Dustin Fuhs
Although we are unable to publicly confirm the brands at this time, The Distillery District has provided us with the locations and will circle back when they are able to share with our readers.
Potential Tenant Locations
1 of 7
9D on the Distillery District directory
4E on the Distillery District directory
9G on the Distillery District directory
9G on the Distillery District directory
4E on the Distillery District directory
9D on the Distillery District directory
The Distillery District. Photo: Dustin Fuhs
Retail Space for Lease
Former Mini Mioche Location. Photo: Dustin Fuhs
Space in The Distillery District is incredibly difficult to get, so when a unit becomes available, it is definitely newsworthy.
There is currently one retail vacancy. A unit, sitting at 1,558 square feet, with 200-year-old brick interior and an exposed wood beam in the ceiling. The original doors and windows bring character into a high-traffic spot on Case Good Lanes.
Sniffany & Co. at Distillery District. Photo: Dustin Fuhs
Pet-focused retailer “Sniffany & Co” has expanded its Distillery store by taking over the space next to their current location, essentially doubling the square footage. The brand started in Zurich Switzerland in 2009 and opened its Distillery location in 2019.
By growing its online business and creating a social media platform, the brand has been able to grow its business offerings to include a doggy spa service. The brand has also helped to bring more products to the ever-expanding pet market, especially in the growing communities that surround The Distillery District as new residential buildings are completed.
Sniffany & Co. at Distillery District
1 of 2
Sniffany & Co. at Distillery District. Photo: Dustin Fuhs
Sniffany & Co. at Distillery District. Photo: Dustin Fuhs
Retailer Spotlight
With an abundance of unique retailers and incredible interiors that make the Distillery a one-of-a-kind location, Retail Insider will be focusing on a number of spaces in particular.
Gotstyle
Gotstyle at Distillery District – March 2021. Photo: Dustin Fuhs
In 2020 and into 2021, GotStyle was forced to evolve its brand in the midst of various lockdowns and COVID requirements. In addition to closing its Bathurst location, Melissa Austria (co-owner and founder of GotStyle) documented the experience of being a business owner during the pandemic and what was going on behind the scenes.
The store carries a variety of brands in-store and online, including:
Gotstyle at Distillery District -March 2021 (Photo by Dustin Fuhs)
1 of 12
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Gotstyle at Distillery District -March 2021 (Photo by Dustin Fuhs)
1 of 7
Gotstyle at Distillery District -March 2021
Gotstyle at Distillery District -March 2021
Gotstyle at Distillery District -March 2021
Gotstyle at Distillery District -March 2021
Gotstyle at Distillery District -March 2021
Gotstyle at The Distillery District -March 2021
Gotstyle at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe
Red Canoe at Distillery District – March 2021. Photo: Dustin Fuhs
Started by Dax Wilkinson, Red Canoe is home to heritage brands that we all can identify with. The current lineup includes designs from the CBC, Bushplane (Cessna & De Havilland), RCAF, Boeing, NASA, and more.
Red Canoe has another location in the Junction at 2989 Dundas Street West.
Red Canoe at Distillery District -March 2021 (Photo by Dustin Fuhs)
1 of 11
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Red Canoe at Distillery District - March 2021. Photo: Dustin Fuhs
Corktown Designs
Corktown Designs at Distillery District – March 2021. Photo: Dustin Fuhs
One of The Distillery District’s hidden gems, Corktown Designs, is located at 5 Trinity Street and sells artwork from over 75 international and local designers and artists.
Corktown Designs at Distillery District
1 of 3
Corktown Designs at Distillery District - March 2021. Photo: Dustin Fuhs
Corktown Designs at Distillery District - March 2021. Photo: Dustin Fuhs
Corktown Designs at Distillery District - March 2021. Photo: Dustin FuhsCorktown Designs at Distillery District -March 2021 (Photo by Dustin Fuhs)
Wildly Delicious
Wildly Delicious at Distillery District – March 2021. Photo: Dustin Fuhs
Wildly Delicious has been one of Canada’s specialty food companies since 1995. The flagship retail location is located at 11 Tank House Lane and provides a huge variety of food options, including quick service take-out and local retail partnerships.
Wildly Delicious at Distillery District -March 2021 (Photo by Dustin Fuhs)
1 of 5
Wildly Delicious at Distillery District - March 2021. Photo: Dustin Fuhs
Wildly Delicious at Distillery District - March 2021. Photo: Dustin Fuhs
Wildly Delicious at Distillery District - March 2021. Photo: Dustin Fuhs
Wildly Delicious at Distillery District - March 2021. Photo: Dustin Fuhs
Wildly Delicious at Distillery District - March 2021. Photo: Dustin Fuhs
The SPORT Gallery
The SPORT Gallery at Distillery District – March 2021. Photo: Dustin Fuhs
The SPORT Gallery opened in the Distillery in 2006. After an expansion in 2009, the brand found it’s current home in 2016 in a 2500-square-foot location beside Wildly Delicious and within a 3-pointer of the LOVE Locks art display. It’s also the home to Arena Coffee Bar.
On top of vintage-inspired sports apparel, the store is a must-see for folks who love to talk hockey or splurge on a piece of memorabilia. In 2020, the store made the decision to close its Granville Island store in Vancouver.
The SPORT Gallery at Distillery District -March 2021 (Photo by Dustin Fuhs)
1 of 7
The SPORT Gallery at Distillery District -March 2021
The SPORT Gallery at Distillery District -March 2021
The SPORT Gallery at Distillery District -March 2021
The SPORT Gallery at Distillery District -March 2021
The SPORT Gallery at Distillery District -March 2021
The SPORT Gallery at Distillery District -March 2021
The SPORT Gallery at Distillery District -March 2021
John Fluevog
John Fluevog at Distillery District – March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District -March 2021 (Photo by Dustin Fuhs)
1 of 10
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
John Fluevog at Distillery District - March 2021. Photo: Dustin Fuhs
Blackbird Vintage Finds
Blackbird Vintage Finds – Photo by Dustin Fuhs
Blackbird Vintage Finds is celebrating their decade in the Distillery District. Opened in 2011, this retail gem is stocked with vintage and unique gifts.
The store is the second retail store that owner Paula DiRenzo started, with the first being “Fleur de Terre” at Avenue and St Germain. That location ran from 2001 to 2011, just before Blackbird opened in the Distillery at 11 Trinity Street.
Blackbird Vintage Finds - Photo by Dustin Fuhs
1 of 6
Blackbird Vintage Finds
Blackbird Vintage Finds
Blackbird Vintage Finds
Blackbird Vintage Finds
Blackbird Vintage Finds
Blackbird Vintage Finds
Yummi Candles
Yummi Candles in the Distillery District – Photo by Dustin Fuhs
Yummi Candles moved to its current flagship location on the main stretch of Trinity Street from a retail space at the Cherry Street entrance, and it was a great decision. The opportunity to expand the retail business along with candle-making classes brings the space to life.
Yummi Candles in the Distillery District - Photos by Dustin Fuhs
1 of 7
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Yummi Candles in the Distillery District. Photo: Dustin Fuhs
Gentil Uomo
Gentil Uomo in the Distillery District- Photo by Dustin Fuhs
Owner Antonio Gentilucci opened Gentil Uomo in the Distillery District back in 2012. With Chase Architecture looking after the design, the space came to life with a distinct style and loyal client base. This is the only retail location for Gentil Uomo.
Gentil Uomo in the Distillery District - Photos by Dustin Fuhs
1 of 2
Gentil Uomo in the Distillery District
Gentil Uomo in the Distillery District
GW General by Biltmore Furniture
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
GW General by Biltmore Furniture at The Distillery District - Photos by Dustin Fuhs
1 of 6
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
GW General by Biltmore Furniture at the Distillery District. Photo: Dustin Fuhs
The Distillery Historic District Outdoor Environment During COVID
Signage
1 of 3
The Distillery District Entrance Signage during COVID-19. Photo: Dustin Fuhs
GotStyle Signage. Photo: Dustin Fuhs
The Distillery District Entrance Signage during COVID-19. Photo: Dustin Fuhs
2021 is all about keeping guests and retailers safe during the ever-evolving pandemic situation. On top of creating online and curb-side pick-up and delivery options, retailers are adhering to a number of safety requirements. The current information for the Distillery can be found at their dedicated page: https://www.thedistillerydistrict.com/covid19/.
With the situation changing almost daily in Toronto, the communication has to be constant. Staff have been able to discuss support options for tenants through virtual meetings and weekly memos.
Spring & Summer Programming
Distillery District - Photo by Dustin Fuhs
1 of 3
Distillery District. Photo: Dustin Fuhs
Distillery District. Photo: Dustin Fuhs
Distillery District. Photo: Dustin Fuhs
In previous years The Distillery District has been known for its large outdoor events like music festivals and, in particular, its annual Christmas Market. These large outdoor events were cancelled in 2020 and look to be on hold for the majority of 2021, but the Distillery hopes to offer creative and socially-distanced ways to have fun outdoors.
With the addition of The Distillery District summer patios throughout the site, over 1,000 patio seats will be available. Guests can enjoy the open air in a pedestrian-only environment, while also supporting local food establishments.
The relaunch of The Distillery Flower Market is planned for the spring, and will run throughout the summer on weekends. All information on this will be posted on the website, as things can change at a moments notice with the pandemic safety protocols.
Goals of 2021 are to provide guests a variety of unique and experiential offerings in the historic open-air environment so that everyone can feel safe. The event calendar is on hold until the clearance from Public Health Ontario can be secured to host large events, which we are all looking forward to experiencing soon.
Looking Ahead
The Love Locks at the Distillery Historic District. Photo: Dustin Fuhs
We had a very interesting photo walk around The Distillery Historic District in Toronto and we hope you enjoyed coming along with us. Don’t forget to check out our other retail photo tours over the past few months. Thank you for taking this tour with us.
All Photos in this article were taken by Dustin Fuhs
Discover More Related Retail Photo Tours From Retail Insider:
Trinity StreetTrinity Street SignBalzac’s at The Distillery District – March 2021 Balzac’s at The Distillery District – March 2021The Queen’s TrunkSpirit of YorkTrinity Street Storefronts, including Blackbird Vintage Finds, Skin Treats, Hoi Bo, Red Canoe and Gentil UomoThe Distillery District – March 2021 Trinity Street, including Blackbird Vintage Finds and Corktown Jewellery. Madrina Bar y Tapas and John Fluevog
Boathouse at CrossIron Mills. Photo: Jessica Finch
St. Catharines, Ontario-based Boathouse, a retailer of men’s and women’s clothing, footwear, and accessories, is expanding its footprint across Canada seeking out retail spaces recently vacated by Le Chateau.
Janet Weatherhead, Director of Sales and Operations for Boathouse/Blackwell Supply Company, said the company is picking up a selection of Le Chateau locations in Canada.
“They’re going to do well for us because they’re large. Most of the locations are over 6,000 square feet with the biggest one being at the Kingsway Mall in Edmonton which is close to 8,000 square feet,” said Weatherhead.
“So we can really showcase our brands well in that space and we do carry an extensive shoe selection. The more square footage we have, the more we can showcase our shoes as well.”
1 of 3
Previous Le Chateau store in Kingsway Mall in Edmonton. Photo: Kingsway Mall
Previous Le Chateau store in Mayfair, Victoria. Photo: Victoria Buzz
Previous Le Chateau store at the Scarborourgh Town Centre. Photo: Scarborourgh Town Centre
Boathouse has committed to the following former Le Chateau locations: Mayfair, Victoria; Scarborough Town Centre, Toronto; CF Fairview Park Mall, Kitchener; Kingsway Mall, Edmonton; Gatineau; CF Fairview Point Claire, Montreal Island; CF Promenades St Bruno near Montreal; Southgate Mall, Edmonton; CF Carrefour Laval near Montreal, and CF Galeries d’Anjou, Montreal.
In the midst of this expansion, the company is also opening three more Blackwell Supply Co. shoe stores in Kelowna, Limeridge, and Halifax. A couple of the Blackwell locations were formerly Naturalizer locations and the one in Kelowna was a former Aldo store.
Boathouse, which began in 1973 as a small business, today has about 90 stores. There are also about 20 Blackwell stores, which are operated as a separate business.
Boathouse carries a massive selection of Carhartt, Champion, Calvin Klein, Kolby, Herschel Supply Co., Volcom, Adidas, Obey, Billabong, Vans, Crooks & Castles, Nike, SAXX, Timberland, Tentree, and more.
Exterior of Blackwell Supply Co. store. Photo: GL Smith
“We consider ourselves a lifestyle retailer which means we cater to brand conscious consumers of all ages, of absolutely all ages,” said Weatherhead. “We believe in giving our consumers the trendiest and hottest brands in the market right now. But we also believe in catering to the customer who’s been with us for the past 20 years.
“Some of our customers have worn Billabong when they were young and continue to wear Billabong.”
Known locally as Arlies, when the retailer began, the shop specialized in active lifestyle apparel, hard goods and footwear, catering to outdoor thrill-seekers and sports enthusiasts alike. Since that time, it expanded its presence in Canada and became known as Boathouse. It continues to sell active lifestyle brands, offering what it says is the best in clothing, footwear, accessories and more. In 2008 it launched Boathousestores.com.
“We’re still family owned and our office is still in St. Catharines,” said Weatherhead.
Interior of Boathouse store. Photo: GL Smith
1 of 3
Boathouse has been reaching out to former Le Chateau employees for possible employment in the retail spaces it is taking on after Le Chateau’s departure.
“I believe that Canadian retail is one big family. I’ve always believed that,” said Weatherhead. “When we network, we all network together. When we go to Retail Networks Solutions meetings, it’s all retailers together. I think when a Canadian retailer closes it affects all of us.
“There’s enough room in the marketplace for every single retailer out there. So when one retailer leaves, it’s really devastating. It puts a lot of people out of work. It creates emptiness in malls. In Le Chateau’s case, at one time they were at the forefront of retail. There’s so much to learn from that company. In my opinion, they started Canadian retail women’s fashion. I think a lot of the practices and processes that they championed were put into place by many other companies.”
“Going forward we decided that we had to give them the first shot at any positions that were open.”
Exterior of 1000 Queen Street West set to house the new Size? store. Photo: Hullmark
UK-based JD Group is expanding its ’Size?’ sneaker and apparel-focused retail banner into Canada this year with plans for several locations in major markets. The first storefront will open this summer in Toronto and plans are already in place for Vancouver and possibly other cities.
Canada’s first location for Size? will be in a former bank building at 1000 Queen Street West and Ossington Avenue, representing the first location for the brand outside of the European market. Size? is known to do collaborations and release limited-edition product ‘drops’ which means that one may expect to see lineups periodically, something Toronto has become known for.
Size? was founded in 2000 and is known for stocking limited-edition sneakers, fashions, and accessories that are primarily classified as ‘streetwear’, with some product launches classed as global exclusives. The retail concept was initially launched by JD Group to trial edgier product collections before introducing them to the mass market through the JD fascia. Size? currently has stores in the UK, Ireland, Belgium, Denmark, France, Germany, Italy, the Netherlands, and Spain.
Window of 1000 Queen Street West building with Size? advertisement. Photo: Hullmark Instagram
Photo of Ossington Ave street sign at the corner of Ossignton and Queen Street West where the new Size? store is located. Photo: Hullmark Instagram
Exterior of Size? store in Oxford, UK. Photo: Size?
Jordan Karp of brokerage Savills Canada represents the brand in Canada and he negotiated the Queen Street Size? lease deal on behalf of the retailer. Arlin Markowitz and the CBRE Toronto team acted on behalf of landlord Hullmark which owns 1000 Queen Street West as well as numerous other commercial buildings nearby on Queen Street as well as on Ossington Avenue.
The 1000 Queen building was most recently leased out to a co-working company which was there temporarily. Prior to that, upscale Detroit-based fashion brand Shinola occupied the space and before that, US-based Stussy operated its Canadian flagship store there. The building is located in an area considered to be one of the trendiest addresses in Toronto.
The building features a ground floor of 2,204 square feet as well as a mezzanine level of 324 square feet. A lower level space spans 2,221 square feet.
Size? will continue its Canadian store expansion in 2021 with a Vancouver storefront in a location that has yet to be announced. Size? is generally seeking street-front retail spaces in the 3,000 to 4,000 square foot range where at least 2,000 square feet of space can be dedicated to retail.
1 of 3
Exterior of 1000 Queen Street West ready for Size? to move in this summer. Photo: Dustin Fuhs
Exterior of 1000 Queen Street West ready for Size? to move in this summer. Photo: Dustin Fuhs
Exterior of 1000 Queen Street West ready for Size? to move in this summer. Photo: Dustin Fuhs
A second Toronto location is expected as soon as next year and its location is being strategized. A second Vancouver location is also anticipated, and Size? may consider stores in other markets such as Montreal for at least one location.
The entry of Size? into the Canadian market speaks to the confidence brands have in brick-and-mortar retail. The brand is expected to drive important foot traffic to the West Queen West area in Toronto which has seen vacancies due to the COVID-19 pandemic. Size? also has robust social media and has launched a Canadian website at size.ca.
Despite beliefs that the COVID-19 vaccine would bring us back to normalcy and save the gym industry, it is becoming clear that that is not the case, says a new survey released recently by RunRepeat, a website that reviews running shoes.
“While countries work on vaccine manufacturing, distribution, and administration, gyms continue to struggle. Our previous report showed that a fifth of gyms were still closed as of September of 2020, which aligned with the IHRSA’s report (International Health, Racquet & Sportsclub Association) predicting that 25 percent of gyms may be permanently closed by the end of last year,” said the report.
“As we continue into Q2 of 2021, the struggle to remain open, keep members engaged, and retain members will continue. Even as vaccines are distributed, it is clear that just the individual being vaccinated will not be enough for all members to return, seeing how nearly a quarter of members are waiting for their friends, family, and loved ones to also be vaccinated.
“The longer the vaccination process takes, the more likely we are to continue seeing people move away from gyms, gyms shutting their doors, and a new normal in the fitness industry to arise.”
The report surveyed 11,193 members from 142 countries to learn how many gym members plan to return to working out at the gym when vaccinated, how their membership status has changed, and how many are currently going to the gym.
In Canada, it found that 84.68 percent of Canadians are still not exercising at their gyms while only 15.32 percent are actively using their gyms.
The survey found that 32.22 percent of Canadians have cancelled their gym memberships while 33.33 percent have paused them.
When asked if they would return to their gyms after being vaccinated against COVID-19, 28.72 percent of Canadians said they would not; 43.62 percent said they would; and 27.66 percent said they would only when family and friends have also been vaccinated.
Nick Rizzo
When those that cancelled were asked if they planned to return to the gym after being vaccinated, 42.47 percent in Canada said no; 28.77 percent said yes; and 28.77 percent said yes when family and friends were also vaccinated.
Canada had the highest membership cancellation rate and was second to the U.S. in people’s intentions of returning after their cancellation.
Nick Rizzo, Fitness Research Director at RunRepeat, said he has been involved in many conversations over the past year about the plight of the gym industry, taking note about what gym owners and members are saying.
“There’s still a very large group of people who are very excited to be back in the gym. That’s still a given,” said Rizzo.
“There’s a large group of people who are very, very passionate about the gym. They want to be there.”
But there’s no doubt there is a trend out there with more people continuing their exercises and fitness workouts in different ways today — perhaps virtually or at home or outdoors. They are liking the convenience of it and the safety. They may also be saving money by not buying gym memberships.
“It’s really important to note that a lot of gyms rely heavily on a vast majority of their membership not using the gym. That’s a massive stream of revenue,” said Rizzo.
“In the past year, moving in this direction of home fitness has exploded.”
Companies are taking advantage of that and making accessible fitness equipment, previously only available in gyms, for people who want to work out in the comfort of their homes.
“There’s a major shift happening there. There’s a lot of money in advertising and marketing going in that direction to take away the market share from gyms. Right now it’s really dependent on are gyms going to realize that it’s not going back to normal,” said Rizzo. “There has to be some change. You have to listen to your customer base and identify what it is they’re looking for, what is it I’m not delivering on, how do I need to change.
“Gyms are going to have to operate a digital component to stay relevant. They’re going to have to offer some other solution that doesn’t require people to come into the gym because they can get that elsewhere.
“There’s too much momentum. There’s too much money. There’s too much already happening. There’s too much out there that the gym can’t stay the same way and expect to maintain the same level of domination of the health and fitness industry.”
