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BRIEF: Pür & Simple Restaurant Chain Launches Significant Expansion, Lowe’s Hiring 7,000 in Canada

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Retail Insider
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Retail Insider Brief collage
Retail Insider Brief collage

Pür & Simple Breakfast and Lunch Chain Launches Significant Expansion

Quebec-based restaurant chain Pür & Simple Breakfast and Lunch has an impressive nine locations under construction amid an expansion. The company’s first location opened in Laval near Montreal in 2016, growing to 14 locations across Canada.

The two newest locations are set to open in February and will be located at 9100 Jane St (at Rutherford Rd) in Vaughan and at Billy Bishop airport in Toronto, bringing the total count to 16.

Pür & Simple offers authentic all-day breakfast classics packed with fresh ingredients and a wide variety of breakfast and brunch items that offer a fresh take on the most important meal of the day. The restaurant also offers a kids menu. Open seven days a week from 7 am to 3 pm.

Exterior of Pür & Simple store. Photo: Pür & Simple
Exterior of Pür & Simple store. Photo: Pür & Simple

The restaurants’ footprint ranges from 2800 to 4000 square feet and includes a dining room that seats between 90 to 125 guests. Most of the restaurants are situated in high-traffic sectors.

The expansion will continue under the direction of Paracom Realty — there is an immediate need for locations in the GTA according to the brokerage. End caps are preferred along with patios where possible in densely populated high-volume locations with strong exposure in dominant street front, retail or power centres. Todd Feinstein with Paracom Realty Corporation (Ontario) handles the site selection in Ontario and Sean Sarrami, the Chief Development Officer of parent company, Eat It Brands, is handling all the development & real estate of new Franchise Partners. Sean notes that the chains growth plans are currently focused on the Ontario market.

To learn more contact Todd Feinstein at todd@paracom.ca.

Exterior of Lee Valley Tools in Waterloo. Photo: Lee Valley Tools
Exterior of Lee Valley Tools in Waterloo. Photo: Lee Valley Tools

Lee Valley Tools Appoints Jason Tasse as President

Ottawa-based retailer Lee Valley Tools has appointed long-term leader Jason Tasse to the position of President. He will also maintain his previous title of Chief Operating Officer. He has been with the company for 25 years.

“Jason has the complete confidence of the Lee Family and he plays an integral part of the management team on both an operational and strategic level. This appointment renews and strengthens our management structure, and will enable us to drive the business forward,” shared Robin Lee, Chief Executive Officer of Lee Valley.

Jason Tasse
Jason Tasse

Mr. Lee also confirmed he will continue as Chairman of the Lee Valley Group of Companies, and President and CEO of Veritas Tools, working closely with Tasse on both operating companies.

Tasse has achieved impressive accomplishments during his career with Lee Valley, leading key systems implementations, long term strategic planning, digital transformation, leading the site selection and design of their 150,000-square-foot distribution centre, leadership succession management and brand marketing direction, most recently shown in Lee Valley’s “Let’s Do Something” campaign.

“Successful retail is rooted in two core business foundations, soul, and mechanics. The soul is the intangible things like brand identity, practiced values, and culture. The mechanics are the nuts and bolts along with the tangible processes, buildings, equipment, and of course, products,” declared Tasse. “From day one, the focus of Lee Valley is steadfast on getting the soul right. We work each day to improve the mechanics, but never at the expense of the soul. That’s why we’ve been fortunate to connect emotionally with our customers.”

As part of its major spring hiring campaign, Lowe’s Canada hopes to fill over 7,000 full-time and part-time positions throughout its network of Lowe’s, RONA, and Reno-Depot corporate stores across the country in preparation for the home improvement industry’s busiest season. Photo: Lowe's
As part of its major spring hiring campaign, Lowe’s Canada hopes to fill over 7,000 full-time and part-time positions throughout its network of Lowe’s, RONA, and Reno-Depot corporate stores across the country in preparation for the home improvement industry’s busiest season. Photo: Lowe’s

Lowe’s Canada Launches Major Spring Hiring Campaign

Lowe’s Canada, one of Canada’s leading home improvement retailers operating or servicing some 470 corporate and affiliated stores, is launching an extensive spring hiring campaign this week in preparation for the home improvement industry’s busiest season. Ultimately, the company hopes to fill over 7,000 full-time and part-time positions throughout its network of Lowe’s, RONA, and Reno-Depot corporate stores across the country.

Positions available range from Receiving Clerk and Sales Associate roles, to Sales Specialist, Administrative Support, and Merchandising roles.

To achieve its hiring goal, Lowe’s Canada will hold a series of national and regional hiring events over the next two months. National events will take place exclusively online, while regional events will offer candidates a hybrid formula that allows them to complete their first interview online or in person, based on their preference.

The first national event will take place virtually on February 3rd and 4th. Those interested in a position in a Lowe’s, RONA, or Reno-Depot corporate store can now visit https://lowescanadahiring.ca/ to book a time slot for a live video interview during a hiring event, or submit their application today by opting for a pre-recorded video interview.

To learn more visit lowescanada.ca/careers.

Screenshot of Whittaker's homepage on its new Canadian bespoke website.
Screenshot of Whittaker’s homepage on its new Canadian bespoke website.

New Zealand’s Whittaker’s Chocolate Launching Canadian Ecommerce Site

New Zealand-based chocolate retailer Whittaker’s is launching a Canadian website as part of an expansion for the brand. The site will take Canadian consumers on a journey that explores Whittaker’s signature bean to bar chocolate-making process, as well as the brand’s rich history dating back to 1896.

Whittaker’s first began distributing a limited number of its products at select Canadian retailers in 2015 and has since expanded that distribution throughout the country. To service its new bespoke Canadian website, Whittaker’s sends monthly containers of freshly-made product to Canada in anticipation of incoming orders. They are shipped from New Zealand to Vancouver and then distributed directly to retail customers across the country.

Whittaker's chocolate. Photo: Whittaker's
Whittaker’s chocolate. Photo: Whittaker’s

It could signal an interesting trend where international brands enter Canada without opening physical stores — a situation that could eat market share of homegrown retailers at a very challenging time. Given the ease of entering a market through an online portal, brands such as Whittaker’s could continue to grow by securing dedicated warehouse space to continue ecommerce fulfillment.

Whittaker’s is a family-owned company founded more than 120 years ago, producing high quality chocolate products. The brand also does its best to support its communities and suppliers, diligently developing sustainable packaging, and seeking ingredients that are ethically and fairly produced. London Drugs stores and other selected specialty retailers also carry the brand in Canada wholesale.

Competition is about to get fiercer in the retail chocolate market with Whittaker’s Canadian expansion, at a time when retailers such as Godiva Chocolates shut all North American storefronts.

(L-R) Arelene Dickinson, Craig Hanna, Mary Berg
(L-R) Arelene Dickinson, Craig Hanna, Mary Berg

District Ventures Accelerator and Kitchen Announces Formation of New Board in Support of Canadian Entrepreneurs

District Ventures has announced the formation of a new board in support of Canadian entrepreneurs. Tasked with guiding the District Ventures Accelerator and District Ventures Kitchen programming through the next phase of development, the new board members bring unique industry experience, and a passion for innovation and entrepreneurship to the organization.

The newly-formed board will oversee programming for District Ventures Accelerator, a five-month, intensive mentorship and learning experience designed to support entrepreneurs with business advice and growth strategy, and District Ventures Kitchen, a shared-use, 20,000-square-foot facility of food safe production, complete with manufacturing equipment including commercial bakery production spaces, hot and cold fill lines, and a full suite of packaging equipment.

“Over the past five years, we’ve had the opportunity to work with hundreds of Canadian entrepreneurs through District Ventures – with many celebrated successes along the way,” said Arlene Dickinson, CEO, District Ventures. “We couldn’t be more pleased to announce the new board, as we remain committed to providing Canadian entrepreneurs with the tools and resources needed to grow their business.”

The newly appointed board members include:

Arlene Dickinson — CEO, District Ventures

Mary Berg — Best-selling Cookbook Author, Host of Mary’s Kitchen Crush and Season 3 Winner of CTV’s MasterChef Canada

Craig Hanna — Founder and Managing Director of Clearview Advisory

Canada Plastic Pact
Canada Plastic Pact

Canada Plastics Pact Launches to Tackle Plastic Pollution with Innovative Solutions

The Canada Plastics Pact (CPP) has launched and it is determined to fundamentally change the way Canadians use and reuse plastic. The Pact brings together key players to collectively work towards ambitious 2025 goals that they could never achieve on their own.

More than 40 Partners have joined the Canada Plastics Pact, representing diverse parts of the plastics value chain, from leading brands to waste management companies, government institutions, and NGOs. Because plastic packaging accounts for 47% of all plastic waste, it is the immediate focus of the CPP’s collective efforts.

An ambitious pre-competitive, multi-stakeholder platform, the CPP will enable companies across the Canadian plastics value chain to collaborate and innovate. It will build on significant work that has already been underway to reduce plastics waste, and will grow over time. Together, Partners will rethink the way they design, use, and reuse plastics, thereby charting a path toward a circular economy for plastic by 2025.

The CPP is working towards four clear, actionable targets by 2025:

• Define a list of plastic packaging that is to be designated as problematic or unnecessary and take measures to eliminate them

• Support efforts towards 100% of plastic packaging being designed to be reusable, recyclable or compostable

• Undertake ambitious actions to ensure that at least 50% of plastic packaging is effectively recycled or composted

• Ensure an average of at least 30% recycled content across all plastic packaging (by weight)

To be fully transparent and ensure measurable action, a CPP progress report will be made publicly available each year.

Read More Briefs From Retail Insider:

How to Prioritize Digital Investments That Yield a High ROI: Interview with Johnny Russo, VP of Marketing and Ecommerce at The Kersheh Group

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Retail Insider
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Spotlight interview with Johnny Russo
Spotlight interview with Johnny Russo

By Avenue Code

COVID-19 created a unique opportunity for accelerated executive buy-in on digital investments supporting e-commerce. Avenue Code chatted with Johnny Russo, VP of Marketing and Ecommerce at The Kersheh Group, to get practical tips on how to prioritize digital investments that yield a high ROI.   

Avenue Code: Tell us about your career path. How did you get to where you are today?

Johnny Russo: I studied journalism and wanted to be a TV sports broadcaster but ended up channeling my writing expertise into marketing. After only two weeks, I fell in love with marketing, advertising, and branding, and I knew it was where I wanted to be. I immersed myself in research and reading to learn all that I could. Digital was emerging at the time, which made it easy for me to get ahead of the curve in learning about SEO, email marketing, social media, etc.

I should note that I’m still very passionate about writing. I run my own blog, and I’m in the process of writing a book that presents tangible, bite-sized tips for leaders. These tips are a combination of my research and my own learnings as I transitioned from management to executive-level leadership, and they cover both what to do and what not to do.

AC: What drew you to joining the Kersheh Group?

JR: The people. I wasn’t looking for a new job at the time, but when I met with the leadership team, I knew they were special, and I resonated with their business passion. When I walked into the role, the challenge was to take a 40-year-old wholesale company and scale a direct-to-consumer division with brands that needed to be developed.

AC: What challenges and opportunities have arisen for the Kersheh Group post COVID-19?

JR: In April, I presented a three-year plan, but COVID-19 accelerated executive buy-in so significantly that we’ve scaled two to three years in the last nine months. Prior to COVID-19,

e-commerce was a middle-of-the-list agenda item for most companies, but now, nearly every company has made online shopping a number one priority.

Buy-in is key because e-commerce development requires monetary investment, as well as changes related to technology and people. A successful plan requires proper prioritization of projects, pushes the boundaries while staying realistic, and, most importantly, is profitable.

AC: What are the keys to creating a successful digital transformation strategy?

JR: My framework for successful digital transformation is supported by five essential pillars: partners, people, education, culture, and data/change management. If you get these five pillars correct, you’ll be in a solid position to scale.

A lot of companies love planning their digital strategy, but when it comes to execution, they back away from investing money in platforms and people. If you look at the numbers, however, some of the most aggressive e-commerce companies are the most successful because they made the up-front investment to achieve a profitable outcome.

AC: What digital initiatives are you prioritizing in 2021?

JR: In June, we’re launching a brand new sleepwear experience. We have multiple brands catering to different target audiences, and currently, these are all on separate sites and different advertising channels. Our goal is to centralize these into a single sleepwear marketplace, enabling us to realize economies of scale, SEO benefits, funneling all advertising dollars through one channel, and enabling our customers to shop for multiple needs on one platform. At first we’ll focus on our own brands, but nothing is stopping us from expanding. We want to be the largest sleepwear site in North America.

AC: How will data analytics play into your 2021 plans?

JR: We’re focusing on two areas. The first is related to fulfilment operations. When an e-commerce site isn’t as profitable as it should be, it’s usually because there are a couple of levers that need fixing. Usually, it can be because the organization is overspending on advertising relative to its return on ad spend (ROAS) or because the fulfillment process is broken, whether that’s due to internal operations or third party logistics. To boost our profitability, we’re working to maximize shipments with more items since sleepwear doesn’t add significantly to weight/shipping costs.

Secondly, we want to grow our ownership of the customer experience. On our direct to consumer channel, we currently sell a lot of our products through Amazon, which means we don’t have enough first-party data to build a customer lifetime model and strategize deeply on ad spending.

AC: How can executives ensure their tech investments yield a high ROI?

JR: I was stunned to read a 2017 study that said 44% of Chief Marketing Officers can’t measure their ROI. If you approach marketing from a digital perspective, you’re often held accountable for profit and loss, so you know how to measure initiatives and how to shift resources to be

more profitable, whether that’s increasing email campaigns, implementing personalization software, investing in search, gaining more social followers, etc. This is another reason that hiring the right people is critical – people dictate both the investment strategy and partnerships.

AC: What trends do you see within DTC and e-commerce as a whole?

JR: Influencer marketing became immensely popular, and I don’t see it going away. For brands, however, it’s important to be careful about which influencers you partner with: you need to examine their followers to ensure they align with your target audience, because follower numbers alone can be deceiving.

Beyond this, frictionless e-commerce experience and fast delivery always win; and it’s still true that service is the real differentiator, especially when it comes to prompt communication and accurate tracking information for packages.

Analyzing operations logistics should also be a priority, because so much can go wrong here. You need to process orders the same day you receive them, and if you can’t, you need to know why you can’t and adjust your set up accordingly.

The other trend I see is an increasing number of B2B players opening the market to DTC. Manufacturers are now opening their own e-commerce channels, which has created an entirely new marketplace ecosystem where the customer ultimately wins.

AC: What is the key to successful strategic partnerships?

JR: COVID-19 emphasized what we’ve all known – trust is a prerequisite. Successful partnerships have to be win-win, and partners have to be thought of as an extension of your own team. It isn’t about negotiating down as far as possible; it’s about strong relationships.

AC: What do you do to stay abreast of innovations in tools and technologies?

JR: I rely on my network. That used to mean attending conferences, but now I utilize LinkedIn to stay in regular contact with my business connections and industry leaders. I also read a lot, especially content by Scott Galloway, an innovator and skilled communicator who has predicted several industry trends.

AC: How has your leadership style adapted since COVID-19?

JR: George Santayana says that “Even the wisest mind has something yet to learn.” I certainly have room to grow as a leader, but I think my priorities of inspiring, mentoring, and coaching have remained consistent both before and after COVID-19. If anything, I have more time to invest in development sessions to help my team members achieve their career goals.

AC: What are you personally most passionate about in your career?

JR: In life, I’m most passionate about being a dad, which also influences what I’m passionate about in my career. My goal is to be the best leader and mentor possible. In other words, helping people is my primary passion. On a personal level, that translates to a passion for continuous learning and growth.

AC: Thanks for your time today, Johnny! It’s been great to hear your perspective on analytics-based spending for digital transformation.

Alfredo Moro

Alfredo Moro is a Business Development Specialist at Avenue Code who is passionate about sales and loves to connect with clients all over the world! In his spare time, he enjoys watching the soccer games of his favourite team and cooking Brazilian BBQ in his backyard.   

How Canadian Retailers Can Take Curbside Pickup Systems to the Next Level

By
Retail Insider
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Sign advertising contactless curbside pickup at retail store parking lot
Sign advertising contactless curbside pickup at retail store parking lot

By Devin Partida

As the pandemic continues to change the way you interact with the world, curbside pickup remains a reliable way to shop for everything.

Social distancing, lockdowns, and strict guidelines are necessary, but they can be hindrances to business. With the right updates to your curbside pickup system, you can operate smoothly throughout the entire pandemic.

Streamline the Process

Ease-of-use and easy access must be the primary forces that create the curbside pickup process. If it’s not simple and easy to carry out, it may turn customers away. Most commonly, websites will be the landing page for orders.

Customers can see exactly what they want and follow the instructions on how they can get it. You can provide them with updates and notifications on the status of their order. Overall, it should be a clear and concise process.

Michael’s craft stores, for example, make it easy for customers to order online then drive up to a designated spot where staff bring their prepaid order right to their trunk.

Consumers should have options for payment, too. Allow them to pay online to maintain the contact-free dynamic during pickup. Depending on personal preferences and local guidelines, cash may not be a safe option.

Personalize the Experience

The pandemic has been present for a while now, and people are still uncertain about the future. At a time when human contact is being actively limited, it helps to go the extra distance and add a personal touch to each customer’s experience.

You can address them by name when ensuring the order is correct and offering contact should they need it. If you want, you can add a note thanking the customer and provide them with your social media, helping you build your following.

These gestures build a connection and solidify your relationships, creating a loyal consumer base.

Offer Incentives

Curbside pickup has become a common feature for businesses. In fact, usage of curbside pickup increased by 208% in 2020. With this kind of surge, it’s critical to take advantage of the trend. You can do so by keeping the momentum going.

When a customer does business with you, you can offer an incentive to keep them coming back. It could be a discount, or it could be another incentive for them to buy from you again. You could also provide them with an incentive to follow you on social media or leave a review.

Create a Designated Area

Organization is one of the keys to success. When it comes to curbside pickup, a disorganized system is inefficient and will cause delays and issues that lead to decreased customer satisfaction.

Having a designated process and area for curbside orders will create a much better work dynamic. First, you’ll want to have a process for when an order comes in. Gather the materials and prepare them for safe transport. Then, notify the customer that they can come pick up their order.

A specific parking or pickup area for these kinds of orders will be convenient as well. Customers can follow signs and wait while a staff member brings the order to them in a contact-free way. For instance, Target enabled a drive-up option with specific parking spaces where customers can wait for their orders safely.

Get the Word Out

In Canada, online shopping surged in May of 2020, reaching record highs of $3.9 billion in total sales. These numbers are now continuing as the pandemic fluctuates, with both spikes and lulls.

Among all the competition, it’s essential to stand out. Ensure that, amid this surge, your customers know that you offer curbside pickup. And that you do it well.

You can advertise on your website, your social media accounts, and through signs outside your store. Spreading the word will draw people in. Customers want the easiest method when it comes to picking up supplies and doing their shopping. During the pandemic, curbside pickup is that method. Of course, if you want to stand out more, you can always offer delivery.

Navigating the Pandemic

Devin Partida

Though business looks different now than it did a year ago, you can still navigate the pandemic in profitable ways. Curbside pickup is here to stay. It’s time to amp up the game, provide a better customer experience, and bring in more profits.

Devin Partida is a writer and blogger, as well as the Editor-in-Chief of ReHack.com

Canadian Retail News From Around The Web For January 28, 2021

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Retail Insider
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Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

Western Canada News

Kiehl’s to Shut 1/3 of its Canadian Stores as it Focuses on Ecommerce and Multi-Brand Retail Distribution

By
Craig Patterson
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Kiehl's store at CF Carrefour Laval. Photo: Kiehl's

L’Oréal-owned, New York City-based beauty and skin care brand Kiehl’s will be shutting eight of its 24 Canadian stores this year as part of a shift for the company to its online channel, while also beefing up retail partnerships.

As part of the shift, Kiehl’s will increase its focus on its direct-to-consumer online channel at kiehls.ca as well as its retail partnerships that includes distribution at Sephora, Hudson’s Bay, Nordstrom, Holt Renfrew, and Saks Fifth Avenue stores in Canada. We reported in August of 2018 that Kiehl’s had struck a multi-year partnership with multi-brand beauty retailer Sephora, for the first time, greatly expanding Kiehl’s distribution in Canada.

The announcement of the coast-to-coast Kiehl’s store closures come at a time when many other retailers are also evaluating store locations, all with the aim of reducing costs by exiting costly leases. The geographic regions where Kiehl’s stores will close include the Greater Toronto Area, Montreal, Vancouver, Edmonton, London, and Halifax.

Two standalone Kiehl’s stores in the Greater Toronto Area will close permanently this year. That includes a street front store at 2518 Yonge Street, north of Eglinton Avenue in an affluent part of the city, as well as a Kiehl’s location at the Upper Canada Mall in Newmarket.

The two soon-to-close Montreal stores are located at the CF Carrefour Laval and at Quartier DIX30. In the Vancouver area, the Kiehl’s store at Coquitlam Centre, which opened in August of 2017, will be the only location to close in British Columbia as part of the announcement.

The only standalone Kiehl’s store in London, Ontario, will shutter at CF Masonville. In Edmonton, the West Edmonton Mall Kiehl’s store will close, leaving only one location in the city at Southgate Centre.

Publication Halifax ReTailes, which was first to report on the eight store closures, reported last week that the Kiehl’s location at the Halifax Shopping Centre will be closing permanently.

Kiehl’s will continue to operate 16 locations in Canada. In southern Ontario, Kiehl’s will operate at CF Toronto Eaton Centre, 407 Queen Street West (the first in Canada which opened in 2004), Yorkdale, CF Sherway Gardens, Square One, and Mapleview Centre. In Quebec, Kiehl’s will continue operating one store in downtown Montreal at 760 Ste-Catherine Street West. In the Vancouver area, Kiehl’s stores staying open include a street front store at 1021 Robson Street, Metropolis at Metrotown, CF Richmond Centre, Guildford Centre and at Vancouver International Airport. In Calgary, Kiehl’s has stores at CF Chinook Centre and CF Market Mall, and the Edmonton market will be served by a single unit at the Southgate Centre. Stores at CF Rideau Centre in Ottawa as well as CF Polo Park in Winnipeg will also remain open for the time being.

During the pandemic, Kiehl’s has innovated with the launch of its Kiehl’s Koncierge, which offers personal virtual consultations including real-time live chat and video chat functions. The technology was developed in partnership with Kinetic Commerce, a retail technology and design firm that aims to help retailers unify their digital and physical experience.

In February of 2017, Retail Insider wrote a feature story on Kiehl’s, which at the time, was looking to expand further into Canada. Already, the company had 23 stores and was preparing to announce the Coquitlam Centre location. Interestingly, brand awareness for Kiehl’s was strongest in Western Canada back then, according to the company’s Canadian General Manager, Alexandre Ratté. The Vancouver market in particular was considered to be strong.

In November of last year we reported that L’Oreal was also shutting all of its NYX Cosmetics stores in Canada — the brand entered Canada with a splash in 2015 and was expected to be a huge success with its expansive assortment of colour palettes.

L’Oreal opened the first standalone location for its upscale perfume label Atelier Cologne at Toronto’s Yorkdale Shopping Centre in the spring of 2018, and it remains the only storefront in this country. Plans were in place to open more than one location in Canada with Vancouver being targeted for a store, as well as downtown Toronto.

Federal Government Announces Business Loans to Help Retail and Other Hard-Hit Businesses

By
Mario Toneguzzi
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Businessman calculating business balance
Businessman calculating business balance

The recently-announced, new federal business loan will provide a lifeline for many retailers and small business owners across Canada who are on the brink of collapse as a result of the punishing economic blow the COVID-19 pandemic has dealt them for nearly a year.

The Highly Affected Sectors Credit Availability Program (HASCAP), with the Business Development Bank of Canada, will work with Canadian financial institutions to offer government-guaranteed, low-interest loans of up to $1 million. Hard-hit businesses, like a chain of hotels or restaurants with multiple locations under one related entity, could be eligible for up to $6.25 million.

“The pandemic has affected employers across sectors and had a tremendous impact on the jobs and lives of Canadians and Canadian families. Our COVID-19 support programs have worked to protect millions of jobs, but we know that the second wave of this virus continues to weigh on many workers and businesses,” said Chrystia Freeland, Deputy Prime Minister and Minister of Finance, in a statement.

Bruce Winder
Bruce Winder

“HASCAP gives those in highly affected sectors — like tourism, hospitality, arts and culture — new support so they can weather this storm and be ready for a robust recovery that will create jobs and strengthen the middle class.”

Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail, said the new program will help some retailers but one can argue that distressed retailers may have already tapped into initial loan programs and this is too late to save them.

“Also, many businesses don’t have the margins and will not have the margins to pay back this new loan so it does little to help them long term. It may keep them alive as ‘zombie’ businesses but will just postpone the inevitable,” he said.

“For those who can use (government support) and make it work it is critical as we are in for some tough times for several more months and this may be the lifeline they need to get them to safer ground during holiday 2021.”

Alla Drigola
Alla Drigola

Asked if there is anything else government needs to do for businesses, Winder said: “Some will argue for business grants versus loans but then society must ask if it is government’s job to do so. Governments bailed out business after the Great Recession and received significant backlash from voters.”

Alla Drigola, Director of Parliamentary Affairs and SME Policy at the Canadian Chamber of Commerce, said overall the program is good for businesses particularly in the hard hit sectors like tourism, travel, accommodation and food services.

Many businesses have had trouble accessing the government’s original loan program due to a number of factors and this new HASCAP program really allows these businesses to participate and allows them to bridge to the end of the pandemic, she said.

Drigola said a number of government support programs in the past year have been “critical in helping businesses of all sizes, but particularly small businesses, survive through the pandemic”.

“And this loan program is going to be another tool in that arsenal of the options available. But at the same time businesses can’t operate on debt forever and a program like the HASCAP program can only be made stronger by having a forgivable portion or even expanding that top $6.25 million ceiling to allow some of those medium to larger size businesses to take advantage,” said Drigola.

Jasmin Guenette
Jasmin Guenette

“But overall I think the supports that have been provided have been critical in ensuring that businesses can survive. But at the end of the day these are just band aid solutions and the best thing the government could do is to manage COVID in a coherent and consistent way across Canada to allow businesses to be able to reopen and get back to business and serve customers of course in a safe manner.”

Jasmin Guenette, VP of National Affairs with the Canadian Federation of Independent Business, said the national organization welcomes the news of the HASCAP program.

“We are 11 months now into the pandemic and so it’s important for businesses to have access to funds to make sure that they can remain open,” said Guenette. “We’re happy with the program. Many of the principles are solid so it will be helpful for many firms, especially for those that are mostly affected by the pandemic.

“But we do have some concerns. One is that most of small businesses cannot just take on more debt related to the pandemic at this time. So we’re calling on the government to make a portion of the loan forgivable as part of this program. A little bit like they are doing with the CEBA (Canada Emergency Business Account) program. This would be an important change to be made to the program to make sure that a portion of the loan is forgivable.

Olivier Bourbeau
Olivier Bourbeau

“And also the program is leaving out new businesses that started after March 2020. So it’s another federal program after the wage subsidy, after the rent subsidy program, after the CEBA loan program, now this new program also leaves out new business from applying to the program. We’re asking the federal government to either change some of the eligibility criteria for that specific program or put in place a new program for new businesses that were launched after March 2020 who don’t have access to COVID relief federal programs.”

Olivier Bourbeau, VP, Federal and Quebec, for Restaurants Canada, said the organization appreciates the federal government stepping up by bringing a program like this forward.

“This will be helpful. We would like for the program to be forgivable, to be a forgivable loan. That would help more . . . The current programs are helpful indeed. The thing is that they need to be extended. They need to continue after June. We need continuous support from the federal government until the end of the crisis, not until summer. The majority of our restaurants will take at least one year just to come back to profitability,” said Bourbeau.

“It is something that we bring to our discussions with the government on a daily basis.”

To be eligible for HASCAP, the federal government said businesses need to show a year-over-year revenue decline of at least 50 per cent in three months, within the eight months prior to their application. They must also be able to show their financial institutions that they have previously applied for either the Canada Emergency Wage Subsidy or the Canada Emergency Rent Subsidy. Eligible businesses can start applying as early as February 1 at principal financial institutions and more widely by February 15.

Dan Kelly, President of the CFIB, said the national organization’s latest data finds that one in six businesses is currently considering permanent closure after months of restrictions and low revenues. Canada could lose as many as a quarter of its small businesses by the time the pandemic ends, he added.

Dan Kelly
Dan Kelly

“The government must work to open the application process at all financial institutions as soon as possible and get the loans flowing out quickly after that to ensure businesses can cover any urgent and outstanding costs,” said Kelly.

“The program also leaves out new businesses that started in 2020. CFIB has pointed out that none of the federal support measures are currently available to new firms and has asked the government to create pathways for them to access HASCAP and all other government support programs.

“CFIB thanks the government for its continued willingness to listen and respond to the needs of small businesses. With the right changes, the federal COVID-19 support programs can help prevent thousands of business closures in the coming months, ensuring a faster economic recovery once the crisis is over.”

Pharmacy Retailer Rexall Partners with Uber Eats for Home Delivery

By
Mario Toneguzzi
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Rexall's offerings displayed on the Uber Eats app. Photo: Uber Eats
Rexall's offerings displayed on the Uber Eats app. Photo: Uber Eats

Canadian pharmacy chain Rexall has teamed up with Uber Eats to give customers access to more than 800 healthcare products, for in-store pick-up or delivery, available at 200 locations across Canada.

Through the Uber Eats mobile or desktop app, customers can place orders for delivery or in-store pick up in locations in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario.

“As Canadians across the country do their best to stay home, Rexall is excited to increase convenience and expand our service offering to customers,” said Nicolas Caprio, President of Rexall. “Uber is a perfect partner for us, as we continue with our goal of bringing much-needed health and personal care products to our customers safely and quickly.

Nicolas Caprio

“Since the pandemic, what we’ve been trying to do is really understand the consumer and the consumer behaviour shift that has occurred during this pandemic. One of the realities is for us to be able to cater to that ever-evolving consumer need. And especially right now if you think of the state of home orders here in Ontario and even across the country, the consumer is thinking how do I conveniently shop and do it in a safe way. And so this is another one of those partners and we came together thinking of that consumer need and we feel that the Uber Eats is a great partner that responds exactly to that need.”

Items as part of the program range from health, personal care, household, cleaning, beauty, cosmetics, baby supplies, and more.

“If you need non-prescription or personal care items delivered to your door, Uber Eats and Rexall have you covered,” said Lola Kassim, General Manager of Uber Eats Canada. “We’re excited to launch this new partnership, providing Canadians in 63 cities with a convenient ordering and delivery option with Rexall.”

Lola Kassim

Caprio said the products are picked in the store by employees from the consumer order.

Rexall has just over 400 locations in Canada. The locations chosen for this new program are the ones that fit in best to what the pharmacy chain can logistically handle.

The products that are part of the program are from what the company has seen as the greatest consumer requests. It does not include prescription medication. Those services are offered through the Rexall Direct program.

Gary Newbury, retail supply chain and last mile interim executive, said Canadian retailers continue to find creative ways to connect with their consumers during the pandemic.

“This is an exciting new partnership between Rexall and Uber Eats, using the latter’s already established local network for delivering meals to Canadians at home. Unlike Instacart, the “shopping” will be performed by a Rexall member of staff, knowledgeable in the product, keen to serve the consumer well and help the banner preserve sales during this period. They will also be able to call the customer for any queries and help cement the relationship this way, especially in the area of personal care consumption and “shelf available” alternatives.

Gary Newbury
Gary Newbury

“Rexall is embracing “lockdown resilience” by using their own people to pick and pack for both “click and collect” as well as home delivery which makes a lot of sense. As volumes increase, they will learn how to manage both these online services, improve space utilization and integrate their shelf filling and order picking into the role of the store associates. The lessons learnt will be invaluable if they are shared across their chain to quickly improve efficiencies. This is the big benefit of using your own people, rather than outsourcing the personal shopping to a third party.”

Newbury said that increasingly other retailers will be looking to bring the “shopping” into the store associate’s responsibilities.

“Whilst each retailer continues on their online/digital fulfillment journey, it is one that may take several twists and turns as they attempt to scale. They may find, quickly, capacity will be a big deciding factor in whether to move from in-store picking to a micro fulfilment (MFC) solution, and whether this will be store based, or a dark store,” he said.

Canadian Retail – Sales Up, Prospects Down: Ed Strapagiel

By
Ed Strapagiel
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Women choosing products in supermarket.
Women choosing products in supermarket.

The latest numbers from Statistics Canada for November 2020 show that total retail sales have recently hit the highest growth rates in 3 years. Nevertheless, due to declines earlier in the year, 2020 overall retail sales will likely end up at about 1% down. Furthermore, things don’t look good going into December and January due to reinstated COVID lockdowns and even curfews. The collapse of retail sales in Q2 2020 shows what could happen.

There is a school of thought that all the money consumers are not spending on restaurants, theatres, travel, and other entertainment is getting saved and will eventually work its way back to the retail market, perhaps in late 2021 after the COVID pandemic substantially dissipates. There is no precedent for this however, so it still remains to be seen. Once it’s safe to go shopping again, there will likely be an uptick in retail sales, but no one knows how much that will be nor how long it might last.

Total Canadian retail sales were up 7.0% year-over-year for the 3 months ending November 2020, a 3 year high. Due to the deep declines earlier in the year however, year-to-date retail sales are still down 1.9%, and are unlikely to finish in the black with only one month left to go. This will make 2020 the worst year for retail sales growth since 2009 and the “Great Recession”.

Food & Drug

For the 3 months ending November 2020, Food & Drug retail sales were up a whopping 10.0% year-over-year, which could be an all time high. Year-to-date sales are up 8.2%, and the sector is poised for record breaking growth in 2020.

Supermarkets and other grocery stores are the main driver of sales growth in Food & Drug, with retail sales up 11.0% year-to-date. Convenience stores, specialty food stores, and beer, wine & liquor stores are also having a strong year.

After only modest growth in the first half of the year, retail sales at health & personal care stores are now also showing strong gains. Their sales were up 10.9% for the 3 months ending November.

Store Merchandise

Recent sales increases in the Store Merchandise sector are even more impressive. Their sales were up 11.6% for the 3 months ending November. Due to significant declines in Q2 however, year-to-date sales are up only a modest 1.0%.

The 3 month sales trend (orange line in the chart) is now at record high levels, and the underlying 12 month trend (green line) is following suit. But it may not last. New COVID lockdowns and shutdowns started to come into effect in December, which will likely result in slower sales and even declines as occurred in Q2. Retailers however should now have a better handle on and more tools to deal with the situation.

Many retailer types have been experiencing strong sales growth in recent months, often by double digits. One glaring exception however is clothing and accessories stores, whose sales were down 12.5% for the 3 months ending November. These retailers are more likely to be small chains and independents with fewer resources and located in shopping malls they depend on for foot traffic. Live by the mall, die by the mall.

Retail sales in the Automotive & Related sector have improved from the collapse in Q2 2020, although the 3 month trend is now hovering at around the 0% growth level. The underlying 12 month trend (green line in the chart) has gone flat at about the minus 11% level. In the short term at least, there appears to be little relief on the horizon.

Automobile dealers’ sales however have partially recovered from the disastrous results earlier in the year. Their sales were up 5.4% for the 3 months ending November, although still down 10.9% year-to-date for 2020.

Gasoline stations continue to be the main drag on overall Canadian retail sales. Their sales were down 16.0% for the 3 months ending November. While overall retail sales were up 7.0% over this period, the result would be plus 9.7% if gasoline stations are excluded.

By The Numbers

Note that the data and analysis in this report are always based on not seasonally adjusted (or unadjusted) retail sales statistics.

For definitions of store types, see Statistics Canada NAICS.

Canadian E-Commerce Sales

The chart above shows that the pace of Canadian e-commerce retail sales doubled year-over-year in Q2 2020 with the onset of the COVID pandemic. That has since cooled off somewhat, but to “only” a 74.5% increase for the 3 months ending November. By any measure, this is still phenomenal growth.

Overall, e-commerce represented about 5.7% of Canadian retail sales for the 12 months ending November 2020, including both pure play as well as bricks & clicks stores. Note that Canadian consumers may also buy online from foreign websites which is not captured in these numbers.

Location based retail is the same as that in the preceding “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. For the 12 months ending November 2020, electronic shopping and mail-order houses had an estimated $21.8 billion in e-commerce sales.

But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the 12 months ending November, this group had an estimated $13.7 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $35.6 billion in e-commerce sales by Canadian operators. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian operations.

For electronic shopping and mail-order houses, an estimated 93.6% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that 2.3% of their total sales are attributable to e-commerce.

In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 61.4% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce was 38.6%.

For more explanation on the e-commerce numbers, see Statistics Canada: Retail E-commerce in Canada.

Canadian Retail News From Around The Web For January 27, 2021

By
Retail Insider
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Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

Western Canada News

Special Edition 23: Retail Lockdown Effects on Canadian Retailers: Daniel Carman of Over the Rainbow Jeans

By
Retail Insider
-

An off-schedule podcast discussion with Daniel Carman, VP at Over the Rainbow Ltd. Craig and Daniel discuss the COVID lockdown measure impacts on Canadian retailers and how provincial legislation is harming small retailers while allowing big-box stores to remain open.

Interview Details: 

The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, or through our dedicated RSS feed for Overcast and other podcast players.

Subscribe, Rate, and Review our Retail Insider Podcast!

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