Advertisement
Advertisement
Home Blog Page 874

Retailers in Canada See Costs Rise by 25% Due to Pandemic Precautions: Study

By
Mario Toneguzzi
-
Waiter wearing protective face mask while cleaning tables in restaurant
Waiter wearing protective face mask while cleaning tables in restaurant

A new report by commercial real estate firm Colliers suggests retail tenants are facing rising operating costs of about 25 percent compared to their costs prior to the COVID-19 pandemic.

PPE & Cleaning Responsible for 24% of Increased Costs

The report, Retail Recovery: Sales, Traffic, and Changes to Retail Space, said tenants indicated cleaning costs and Personal Protective Equipment (PPE) are responsible for about 24 percent of the increases.

“This increase varied across different retailers as QSR restaurants and personal care saw their costs increase the most at 35 percent, while professional services experienced an increase of 21 percent. Interestingly, it appears operating costs are remaining steady, even as more consumers return to in-store shopping,” said the report.

“This pattern is consistent across different industries, with the exception of sit-down restaurants and clothing and apparel. Sit-down restaurants have seen a significant cost hike, with inventory costs behind 22 percent of the increases, likely due to the cost of expired goods that were never used. Wage increases are another driving factor, as employers top-up wages to compete with the Canadian Emergency Response Benefit (CERB) program, add “hazard pay” or hire additional staff. Extra security and changes to store layouts are behind the 11 percent increase in costs for clothing and apparel.”

Jane Domenico

Jane Domenico, SVP & National Lead, Retail Services | Canada for Colliers, said a line item increase has to be managed in some way either through revenue or managing other costs.

The report, she said, highlights the difference in increased costs based on the different industries involved.

“We truly hope that this will be helpful to both our retailer community and our landlord community,” she said.

The report by Colliers found that 44 percent of tenants surveyed plan to apply for the federal government’s new Canada Emergency Rent Subsidy while 28 percent won’t apply, 21 percent are not sure if they will, and seven percent were not aware of the program.

“The 44 percent of respondents who indicated they would apply for the program are primarily the same tenants who received landlord or government aid from March to September. During this time, 81 percent of this 44 percent received relief through landlord-initiated programs, 39 percent received relief through the Canada Emergency Commercial Rent Assistance (CECRA) program, 25 percent received abatements, and 17 percent received deferrals,” it said.

Colliers Report 20% Increase in Customer Spending From May to September

Colliers said retailers have seen a 20 percent increase in consumer spending from May to September, although overall spending is still down 49 percent compared to the same time last year.

“I’ve been saying since the beginning of this that consumer confidence is the key,” said Domenico. “We came off this great high in August and we did see an improvement by the end of October.”

But this is something to monitor as the COVID situation is changing by the day in the country and in various regions of the country.

The report asked tenants whether they would like to change the retail space they currently lease and 62 percent indicated their space needs are roughly the same, 26 percent said they need less space, and 12 percent said they need more space than what they currently lease.

“The respondents who indicated they would like to decrease their space want to do so by about 35 percent on average, while those who are looking to increase their space want to do so by 40 percent on average. Tenant size was not a predictor of whether tenants’ space needs are changing, with small and large tenants as likely to indicate that their space requirements are evolving,” said Colliers.

“The pandemic has impacted the various categories of tenants differently, which can be seen in the changing space requirements of different retailers. 60 percent of sit-down restaurants and 50 percent of QSR indicated they need less space. The opposite is true of supermarkets, 50 percent of which want more space.

“For those who indicated they are looking to downsize, 44 percent indicated they would like to do so because of increasing operating costs, 40 percent because of lack of consumer traffic, and 16 percent because of online sales. This is an indicator that while online sales could be set to take a larger portion of total retail sales, only 16 percent of tenants feel that e-commerce can replace their physical stores.”

Colliers Report Indicated 9% of Participants Planning to Permanently Close Businesses

The report said nine percent of respondents indicated they are working on plans to permanently close their businesses.

Here are some of the key takeaways for owners from the Colliers report:

  1. Retail shopping trends are likely to be very regionalized and local strategies are needed: COVID-19 is impacting regions across the country differently. Some provinces and cities are experiencing a second wave and are facing the threat of another lockdown, while others have managed to contain the virus. We expect discretionary shopping to be stronger in places with fewer new cases, while essential shopping will dominate in regions that impose more stringent COVID-19 restrictions.
  2. Retailers will try to cut costs wherever they can: A 25 percent increase in operating costs is not sustainable for most retailers. This could mean hiring freezes, an increased need to alter supplier contracts, and potential downward pressure on rents.
  3. Governing bodies need to find a way to keep consumer confidence positive: Our analysis indicates that public policy has a greater impact on consumer confidence than the number of new COVID-19 cases and consumer confidence has a direct effect on spending and traffic.
  4. Retailers and landlords need to cooperate to deliver omnichannel solutions ahead of the holiday season: The holiday shopping season will be very different this year. Retailers won’t be able to accommodate the same volume of customers in their stores as they normally would. As a result, parking lot pick-up programs, extended sales and promotions, delivery services, and robust e-commerce platforms could be the defining factor in making or breaking the holidays for many retailers.
  5. Retailers and landlords need to work together to create the best customer experience possible: Cleaning protocols, social distancing, and masks are of paramount importance. Customers will be cautious about where they shop and all efforts that make customers feel at ease will help increase stay time, traffic and ultimately sales.

April Sabral, retail guru and entrepreneur, launches her new book The Positive Effect and web subscription site www.aprilsabral.com

By
Retail Insider
-

Toronto, November 2020 – Retail expert Ms. Sabral is a coach and entrepreneur with nearly three decades of excellence in global retail leadership among brands such as Starbucks, Apple, Gap Banana republic and DavidsTea. With her extensive experience as an executive operational strategist and leader – Sabral is now passing along her value and launching a leadership and mentorship portal to inspire leaders of companies to achieve great leadership success. “I think the book and the portal are even more relevant in this COVID time. It has forced us to expand the way we think about leadership and communication and finding relevant ways to train store teams is necessary. Resilience is the new superpower for leaders to be successful. April also founded retailu.ca, an online leadership development portal for store managers in 2018 but recognized the need to do more.

In the last year, the process of writing the positive effect inspired Sabral to launch www.aprilsabral.com, which supports the book with live coaching sessions to inspire senior leaders. The book is an overview of her journey through the ranks of retail while sharing her leadership philosophy, which is proven in her success. This is a must read for retail leaders as she shares in depth her personal journey and lessons learned that are relevant now more than ever.

On her portal, Sabral answers questions on how to build a strong team – how to create open communication with employees, empower leaders, create inclusive cultures…How to overcome obstacles, and build resilience …These speaking engagements target professionals looking for coaching advice …. And seminars to stimulate and inspire thought process on their business and their teams. The enrollment cost is very affordable, “At launch, I am giving lifetime subscription for only $12, this sounds too good to be true, however, as the membership and content grows so will the price, but for now, I feel it’s necessary to support leaders through this trying time.” says Sabral.

Her main goal is to be a positive thought leader and influencer in the retail business and assist leaders navigate these challenging new times.

ABOUT aprisabral.com

April’s latest portal is for mid to senior women business leaders. Women can sign up for an annual membership, be inspired and focus on personal development. It focuses on building a simple concept that leaders must be chief inspiration officers before anything else. Sabral teaches and coaches live sessions and online resources and builds a global community of women business leaders. Sharing her knowledge is relevant.

ABOUT APRIL SABRAL

An acclaimed speaker, Sabral has shared her leadership message in many settings, including universities, conferences, and corporate training, …. Ms. Sabral holds credentials from the John C. Maxwell Team and a member of the World Association of Business Coaches. She strives to create value and positivity for the people and organizations in every space she enters. Ms. Sabral is the author of “The Positive Effect: A Retail Leader’s Guide to Changing the World” and aspires in the future to continue changing lives through professional training in the retail and non-profit sectors.

ABOUT retailu.ca

retailu was founded by Sabral in 2018 when she couldn’t find affordable, relevant leadership training for her team. retailu provides off the shelf quality leadership training for field leaders at a fraction of the cost of other training programs. After developing leaders for nearly three decades, she thought there had to be a better way. retailu is a subscription licence model with over 25 retail core competencies courses geared to improve managers’ skills to drive their business.

New Look Vision Announces Innovative First-in-Canada Precision Eyewear App

By
Mario Toneguzzi
-
New Look Vision location on Montreal's Rue Sainte Catherine. Photo: New Look Vision
New Look Vision location on Montreal's Rue Sainte Catherine. Photo: New Look Vision

Quebec-based New Look Vision Group Inc. has been offering its expertise in high quality eyewear since 1986, and it has now embarked on a new innovative and unique service for customers.

Eyewear App Most Accurate on the Market

The company has launched what it calls a first of its kind in Canada – a precision-enabled eyewear app giving the customer the same level of quality and precise measurement for glasses as they would get in store. It’s the most accurate on the market, and the only retailer in Canada to use it as it was co-developed with Topology in an exclusive partnership to launch to retail, explained New Look.

Antoine Amiel, President and CEO of New Look, said the company has “invested quite a bit in the past two years in our customer journey – customer’s experience”.

“We have a very strong customer journey model to deploy,” he said.

Antoine Amiel

New Look has about 400 locations across Canada coast to coast and in January this year it expanded to the United States where it has 12 stores in Florida currently.

“We have worldwide expansion ambition,” said Amiel.

“Our expansion is essentially by acquisition and therefore it’s more the seller’s timing than the buyer’s timing. It will be when we come across a good opportunity. We’ve been looking at opportunities in Europe for the past five years. Maybe one or two a year.”

The company said the new app makes it easy to try on single-vision glasses with an optician via video appointment, safely from the comfort of their homes. The touchless optical solution is designed with the optician at the centre of the experience and focuses on providing each customer with tailored eyewear that achieves the same quality vision as when bought in a store.

The latest 3D technology is used to scan 20,000 data points on a person’s face, taking ultra-precise measurements and making it the most accurate technology on the market, said New Look, adding that this level of precision helps ensure better fitting frames and optimal comfort, regardless of the size or shape of a person’s face.

People can try on hundreds of frames virtually with the assistance of an optician via live video chat to choose the perfect pair. The glasses are manufactured in the company’s laboratory in Montreal, then shipped straight to the customer’s home.

The service is currently available only in Quebec but there are plans to roll it out elsewhere in the near future.

“It’s basically a very deep scan of the face ear to ear,” said Amiel, adding the detail is unmatched in the market today.

“It enables us to take optical quality measurements – something we’ve never seen. Today, nobody can do that. It’s the same precision as we achieve in our stores.

“We have actually replicated the store experience online. To be noted, the same app, on a bigger screen, on an iPad, is what we use in-store. So it’s really the same experience, the same tool with the same result at the same price.”

Amiel said that in today’s world a feature like this is what customers are looking for in their retail experience.

App Helps with COVID-19 Social Distancing Measures

Especially now with the COVID environment, taking measurements from a distance is ideal for customers concerned about safety. Consumers also are continuing to shift to the online world for their retail experiences. For the company, it allows it to free store capacity.

“Safety, convenience and capacity are the main reasons for us to do that,” added Amiel.

Jean-Michel Maltais, Senior Vice-President, Omni-Channel for New Look, said it’s important to note that the new app the company has launched allows people to buy glasses online to have the same level of quality as when they are bought in stores.

“It’s important to note that until today this has not been possible. The eyewear market is very small online . . . and most of it is contact lense renewals and some glasses without prescriptions . . . The reason it had stayed so small was that the quality was not there,” said Maltais.

Jean-Michel Maltais

“What we do with our application is we provide our optician with instructions to pre-adjust the frame. So when you receive the frame at home it is truly the same quality as you would have got at the store and it’s pre-adjusted so it will be comfortable as well.”

A Digital Shift and Strong Communication Required for Small Business Survival Amid Second Lockdowns

By
Sean Tarry
-
Row of small businesses on King Street West in Toronto. Photo: Dustin Fuhs
Row of small businesses on King Street West in Toronto. Photo: Dustin Fuhs

For many of Ontario’s small businesses that were fortunate enough to survive the first wave of the COVID-19 pandemic and subsequent government-imposed shutdown of non-essential services, the days, weeks, and months since have been nothing short of arduous. The character and resilience of every small business owner in the province have been tested during this time. And now, just 242 days removed from that bleak announcement made on March 23, the Government of Ontario have announced yet another shutdown, the impacts of which, according to John Kiru, Executive Director at Toronto Association of Business Improvement Areas (TABIA), could prove to be insurmountable.

“It’s no secret that Main Street has been under duress for a number of years now,” he says. “The combination of changing shopping patterns and behaviours and an increasing migration of consumers toward online platforms have been posing challenges to small businesses for quite some time. But the pandemic has served to amplify these challenges and the pressures that are on merchants, resulting in significant changes to the way small business owners operate. Main Street is not going to be the way we remember it by the time this is over. And, unfortunately, it will be reflected most negatively in the number of those that don’t survive the impacts of a second shutdown.”

A Matter of Survival

John Kiru

It was estimated in a report developed by the Canadian Federation of Independent Business (CFIB) back in July that one in seven small businesses in Canada were at risk of insolvency as a result of the impacts of COVID-19. This was a projection above and beyond the number of businesses that had already gone under up to that point, reflecting a startling consequence within the grim reality of the situation. Based on this statistic, the federation estimates that somewhere in the region of 158,000 small businesses will be forced to close due to circumstances surrounding the pandemic, a number that it suggests could rise to as many as 218,000 in a worst-case scenario – a scenario that could well be upon us. It all offers a relatively blunt assessment of the struggles faced by entrepreneurial merchants across the country, and a strong indication of the pivots or shifts that are required by them if they are to sustain the second wave of shutdowns.

“There have been a number of small businesses over the past several years that have recognized a need to move from brick-and-mortar operations to a brick-and-click offering,” says Kiru. “They are the ones that identified a shift that was already happening, positioning themselves in the best possible way to continue to succeed through this difficult time. But, for those who have not made the shift online, COVID has perhaps forced them to do things and make decisions that they weren’t comfortable with. The bottom line is that the need for small businesses to develop an online presence has become critical over the past nine months or so and will only become more important to the health of their operations as we move forward.”

The Shift to E-Commerce

Kiru, in addition to serving as TABIA’s Executive Director, is also Founder of Digital Main Street – an initiative which began back in 2014 with the objective of helping Toronto’s small business owners adapt to the demands and changes resulting from an increasingly digital age. He recognizes the hardships that small business owners have recently fought through, hardships that continue to linger, admitting that the timing of this current shutdown could be devastating for many with the holiday shopping season quickly approaching. He stresses his concerns about the balance sheets of small merchants come January and February of next year, but offers hope to them in the way of the services offered by Digital Main Street and its dedicated team.

“If a small business owner is committed and nimble enough to make the move to online, Digital Main Street can help get them and their products set up for e-commerce sales in two weeks,” he asserts. “It’s a shift that we’ve been encouraging small business owners to make, and supporting them in their efforts to do so, for several years now. Collectively, we recognize the value of traditional Main Streets as the lifeblood of the social and economic wellbeing of our neighbourhoods. The health and success of any neighbourhood is directly linked to the vitality of its Main Street and the vibrant merchants that make up its offering. Because we have an acute understanding of this connection, Digital Main Street is invested in improving the operations of small businesses everywhere and helping them make the shifts and pivots necessary in order to succeed.”

Social and Economic Lifeblood

Given the highly meaningful role that small businesses serve within the communities they operate, Kiru urges the participation of consumers right across the country to shop local this holiday season. And, amid all of the gloom of the pandemic and its negative impacts on small businesses in Canada, he sees an opportunity for them to develop meaningful communication with shoppers, to engage and connect with them, during a time when it’s perhaps needed most.

“Merchants need to focus on serving their own immediate communities right now,” he states. “They need to increase their presence within their neighbourhoods and market to the local customer and provide them with exemplary service, reminding them of the value of their business to the community in order to continue to enjoy their support. And, going forward, once merchants in the affected areas are able to reopen, it’s going to be about developing communication around building confidence in the consumer concerning the safety and cleanliness of their stores, by conveying the message that they’re doing everything that they can to take care of their visitors.”

More to Be Done

In the meantime, Toronto BIA’s and those servicing other provinces across the country are currently leveraging every channel possible to get the message out to consumers, encouraging them to shop online and to shop local this holiday season. But, according to Kiru, more needs to be done by everyone involved in order to give small business owners a fighting chance to emerge from these restrictions, and succeed beyond them.

“There is still so much that we can all do to help support the health of small businesses. For instance, there are considerations that the city can make with respect to easing up on parking bylaws and permits required to put products on display out on the street. If we can find some lenience that would make it easier for retailers to showcase their product outside of their stores and to execute on convenient and seamless curbside pickup options, then we can help them move some of their inventory during these challenging times in order for them to pay some bills, put some food on their tables and possibly build some savings.”

Canadian Retailer ‘Modern Golf’ Sees Explosive Growth During Pandemic with Plans for More Stores

By
Mario Toneguzzi
-
Photo: Modern Golf
Photo: Modern Golf

Overall, the retail industry has been hit hard by the COVID-19 pandemic, however certain segments of it have thrived.

One of those segments is golf. With more people encouraged to spend time outdoors, golf experienced a boom in 2020 and is poised to grow even more in 2021 as the pandemic continues.

Retailer, Modern Golf, has reaped those benefits this year.

The company has four locations currently with three more under construction geared to open in early January 2021.

Paul Fisher, Managing Partner of Modern Golf, said golf traditionally has been a difficult retail business as pro shops have the advantage of not having to pay rent and operating costs are relatively low.

“They’ve been able to exist because of that. Off course retailers, the Golf Towns of the world, the little ma and pa operations, it’s been a really, really tough run for those businesses over the last 10 years,” said Fisher.

“But COVID changed everything for everyone in golf retail. From Modern Golf’s perspective, we’re running 150 to 200 percent revenue growth month over month. I think everyone in the industry is experiencing growth that they never would have imagined. Obviously there’s a huge, huge amount of new golfers coming in because of COVID but also a huge influx of golfers that left the game.

“We’ve seen a tremendous influx of golfers that really haven’t played much in the last seven or eight years and they’re all coming back into the game and they’re all spending a tremendous amount of money. So whether this is a cyclical boom or not, for the golf industry this is a once in a lifetime opportunity for all the people in it who have kind of grinded away over the last 10-15 years where it’s been tough.”

Both Calgary Modern Golf Locations Opened During COVID-19 Pandemic

The company’s four current locations are two in Calgary, one in Vancouver, and one in Mississauga. In 2020, the company opened its two Calgary locations.

The three new locations will be in Vaughan in a commercial pad near the Vaughan Mills shopping centre; in Oakville at Dundas and Trafalgar; and one in Heartland in the outlet area of Mississauga. The Heartland store will be a new store format for Modern Golf as an outlet store.

Fisher said COVID has forced people outside and golf was one of the safest activities people could partake in from a social distancing standpoint.

“I think the mental health benefits of golf are incredible. It’s a peaceful sport. For the people who have come back to the game they’re realizing wow it really is nice to be outside, go for a walk and be with my friends and be able to feel safe while all this COVID stuff is going on,” said Fisher.

“I think work from home has really changed things and it will probably be what changes things the most in the industry going forward . . . If work from home is real and there’s a restructuring in work/life balance and maybe people are not in the office as much, golf is going to continue to surge if people have the flexibility to be able to work around their own schedules and that means they can sneak off to the course and play.

“That’s going to have a huge impact on the industry and the sport probably the largest. I think people are going to go back to the office at some point but it’s going to be different. But some businesses have realized that not everyone needs to be there chained to their desk. Whatever that means going forward, we’re going to see golf at minimum 30 to 40 per cent bigger than 2019. The industry is re-setting. Rounds played, retail sales figures, if you take your 2019 numbers and multiply it by 1.3 or 1.4 that’s probably the new size of the golf industry.”

Six More Modern Golf Locations Are Planned for 2021

Fisher said the company has plans for an additional three locations in the fall of 2021 beyond the three that will open in January.

“We’re choosing between what markets we like,” he said. “Our model works. It’s very successful with the combination of the fact we’re selling equipment during our core season, we’ve got an incredible staff of PGA professionals that not only can fit golf equipment in the summer but they can also teach lessons and run our practice memberships in the winter. So there’s no market that we’re scared of.”

Locations are about 5,000 to 6,000 square feet.

“I think the perfect size business in Canada is probably about 20 locations maximum. So we’ll grow up to about that size. And from there I would say we would then start to look at international opportunities with the US in that. Probably Europe would be our next frontier.”

Brief: Naturalizer Shoes Shutting Stores, HBC Struggles With Leases

By
Retail Insider
-
Retail Insider brief collage
Retail Insider brief collage

By Retail Insider

Naturalizer Shoes to Close All Canadian Stores

Footwear brand Naturalizer, a division of St. Louis-based Caleres Inc., will shut its Canadian stores early next year after the US company announced a restructuring last week. In total, 133 of Naturalizer’s stores will shutter in North America with more than 60 of those locations being in Canada. Two US stores will remain open including a flagship on 34th Street in New York City as well as a store at Dadeland Mall in Miami.

In Canada, Naturalizer operates stores in shopping centres and outlet centres in major markets spanning from British Columbia to Newfoundland. The Greater Toronto Area and Montreal area have the greatest concentration of Naturalizer stores in Canada. Mall landlords will again have to grapple with filling vacated space after a wave of permanent store closures following a challenging retail environment that included store shutdowns in the spring due to the COVID-19 pandemic.

Naturalizer store in Nisku, Alberta. Photo: Canada247
Naturalizer store in Alberta. Photo: Canada247

In its third-quarter earnings conference call, Caleres Inc. announced that it would shutter 133 of the brand’s “legacy” stores in the United States and Canada by the end of the fiscal year. The plan is to grow Naturalizer’s e-commerce business through its online platform and via its retail partners’ websites.

“Make no mistake, we continue to view the Naturalizer brand as a strong and value-driving component of our portfolio,” said Chairman, President, and CEO Diane Sullivan.

Hudson’s Bay in a Challenging Situation as Stores Shutter

Hudson'sBay Company signage outside CF Toronto Eaton Centre. Photo: Dustin Fuhs
Hudson’s Bay Company signage outside CF Toronto Eaton Centre. Photo: Dustin Fuhs

We reported last month that the Hudson’s Bay Company was being sued by landlords for not paying rent, while HBC alleges that mall landlords are not meeting contractual obligations to keep properties top-notch during the pandemic. It appears that HBC hasn’t paid rent since April for at least 20 of its 89 stores in Canada and that it is paying rent for some locations “under duress”.

The situation has taken an interesting turn. Over the weekend at least two Hudson’s Bay stores in Canada were shut due to landlord lockouts. In the Vancouver suburb of Coquitlam, landlord Morguard locked Hudson’s Bay out of its premises at Coquitlam Centre and a Bay store at Centrepoint Mall in Toronto was also shut briefly and the store is now open for curbside pickup.

A Hudson’s Bay spokesperson said, “Hudson’s Bay is grateful that the Ontario Superior Court of Justice has recognized the extraordinary challenges of the global pandemic and how the burden can be shared fairly and lawfully. HBC believes the courts will continue to provide a common sense approach that is fair to landlords and retailers. The majority of Canada’s leading landlords share this view and have reached mutually acceptable agreements with us. When Morguard tried to evict us, without regard for the impact on our employees, vendors and other retailers, we had no choice but to defend ourselves. We accept the Court’s Order and will continue to ask for a fair sharing of the burden of the pandemic with respect to this lease and each of our other leases across the country.” 

On Hudson’s Bay’s website, the retailer notes that it is no longer accepting returns or exchanges at its Les Jardins Dorval location in suburban Montreal. The same notice states that returns are no longer being accepted at Hudson’s Bay’s downtown Winnipeg and downtown Edmonton stores — both of which are confirmed to be closing. One analyst said they expect a store closing announcement for the Dorval store, which opened in 1954 as an upscale Morgan’s department store.

The city of Toronto was put in a second lockdown on Monday for 28 days. Hudson’s Bay’s Queen Street store remained open Monday because the building includes a Saks Fifth Avenue foot hall operated by Pusateri’s Fine Foods. That store had been closed since March however — even last week, signs in the shuttered Pusateri’s said that the store would reopen again in January of 2021. On Monday, the grocery store unexpectedly partially reopened featuring areas of the store with specialty items such as pasta. Areas in the store for fresh produce, dairy and eggs were empty and the store’s prepared foods section was cordoned off.

After publishing this Brief Monday evening, Hudson’s Bay provided a statement to Retail Insider about the closures and the fact that the Queen Street flagship store won’t be open Tuesday.

“On Sunday evening, the order issued by the province changed the guidelines regulating the operation of retail stores. We reviewed closely to ensure compliance and, as such, closed all our stores in Toronto and Peel but one, which contained a grocery store. We understood this to be in line with the province’s direction, however we have now made the decision to close our Queen Street store tomorrow. All Hudson’s Bay stores in Toronto and Peel will offer shoppers curbside pickup.”  

Landlords across the country are suing HBC for unpaid rent which has been reported extensively in the press. Hudson’s Bay paid about $20 million a month in rent for its stores prior to the pandemic.

The Hudson’s Bay Company’s focus is increasingly on real estate assets. Hudson’s Bay’s overall footprint will be reduced as some of the retail space in its stores is downsized, while a more vast assortment of product will be made available online. Integration will also be paramount. A proposed residential tower on the side of a Hudson’s Bay store in Montreal, for example, could become a built-in community that would also shop at the adjacent Bay store. It will be interesting to see what happens to downtown Bay flagships downtown in Vancouver, Calgary and Montreal which HBC own and may look to at least partially redevelop.

Hudson’s Bay will grow its e-commerce substantially by launching a third-party ‘marketplace’ on its website next year. That move is expected to double the product assortment and give HBC a boost. Thebay.com is already Canada’s fifth largest e-commerce business with more than 220 millions website visits per year. This month marks the 20th anniversary of thebay.com.

We’ll continue to follow Hudson’s Bay as we are sometimes provided information that others may not have.

Peloton Opening 2 Permanent Vancouver Storefronts Including a Downtown Flagship

New Peloton store on the corner of Robson Street and Hornby Street in downtown Vancouver. Photo: Martin Moriarty
New Peloton store on the corner of Robson Street and Hornby Street in downtown Vancouver. Photo: Martin Moriarty

New York City-based fitness company Peloton, known particularly for its luxury stationary bicycles that live-stream spin classes, is building permanent retail spaces across Canada amid a workout-from home movement. In the Vancouver area, Peloton will have two storefronts — one opened recently at Park Royal in West Vancouver, and a second is now under construction at the prominent northwest corner of Robson Street and Hornby Street.

The 919 Robson Street Peloton will replace a Foot Locker store which relocated up the street. The retail space includes a 3,500 square foot main floor and a 1,500-square-foot basement space. The store will face Robson Square that includes the Vancouver Art Gallery. In years past, 919 Robson Street was home to iconic retailer Duthie Books which went bankrupt in 1999.

The Park Royal Peloton location spans 3,451 square feet, replacing a J. Crew store that exited the mall last year.

Peloton will also open a pop-up store early next year in Vancouver’s Kitsilano area, replacing a pop-up on South Granville Street. Located at 2123 west 4th Avenue (formerly occupied by Iviva), the Peloton pop-up will span 1,981 square feet.

The three lease deals were coordinated/negotiated by Martin Moriarty and Mario Negris of CBRE Vancouver. We’ll be reporting on more Peloton locations in Canada which are currently under construction.

Simons Sees Success With Second-Hand Goods

Simons store. Photo: Simons
Simons store. Photo: Simons

In September we reported that Quebec City-based large format retailer La Maison Simons had introduced second-hand luxury goods to three of its stores. A French language report from La Presse notes that the product has sold out quickly amid remarkable success.

About 40 vintage luxury items on Simons’ website sold out completely in a day, including timeless pieces by Louis Vuitton and Chanel. Within the first two days 60% of all of the second-hand product in the Edito departments had been sold. Despite being second-hand, prices for many of the bags offered are in excess of $1,000.

Simons struck a partnership with luxury resellers LXRandCO and VSP Consignment on the initiative, which saw vintage collections rolled out at Simons’ stores at Place Ste-Foy in Quebec City, downtown Montreal, Square One in Mississauga, and at CF Rideau Centre in Ottawa. Bag and accessory brands carried at those Simons stores as well as online include Louis Vuitton, Chanel, Prada, Hermès, and others. Women’s apparel brands include names such as Versace, Sonia Rykiel, John Galliano, Miu Miu, Saint Laurent, and Jean Paul Gaultier, among others.

At the same time, less new designer goods are carried at Simons stores for the time being after much of it had been pulled in the spring of 2020 due to challenges with credit insurance.

Call it Spring Shutting All US Stores

Call it Spring store. Photo: Aldo Group
Call it Spring store. Photo: Aldo Group

Aldo-owned footwear retailer Call it Spring will exit its US physical storefronts as it takes its business online. We reported in the spring that Aldo had filed for creditor protection with plans to close many of its stores globally amid financial struggles.

The 49 US mall-based Spring stores will shut over the next few weeks with all locations set to be shut before January. A liquidation sale is being held to clear out the merchandise.

“Because the retail industry has experienced rapid and significant change over the last several years, Call It Spring already had plans to transition towards a more robust digital presence in the U.S.; however, that timeline was accelerated due to the pandemic,” he said. “Shifting to an online experience allows us to better serve our customers by being where they are — online at Callitspring.com,” said Emmanuel Amzallag, SVP of Call It Spring.

We reported last year that Call it Spring had announced that its entire line of footwear and bags/accessories would become fully vegan.

Toys R Us Opens Larger Store in Guelph

Photo: Toys R Us
Photo: Toys R Us

Toy retailer Toys R Us has opened a new 17,000-square-foot store at Stone Road Mall in Guelf, Ontario. The store features a range of product including baby products in a separate space. In 2018, Toys R Us launched its ‘Toybox’ concept at Stone Road Mall and the new store replaces it. The opening is just in time for the busy December holiday season, with toys expected to be a big seller partly due to the uniqueness of this year because of the pandemic.

Toys R Us also recently partnered with Doordash to ensure shoppers are getting same-day delivery on their holiday wishlists and avoid crowds and delayed shipments. Orders must be placed by 2PM to receive their items on the same day.

Purolator Partners With Michaels

GIF image of Purolator and Michaels collaboration
GIF image of Purolator and Michaels collaboration

Purolator has partnered with crafts retailer Michaels by offering package pick-up and drop-off services at 135 Michaels retail stores across Canada. That includes the launch of 13 Canadian limited-edition parcel box designs. Independent artists from across the country were commissioned to interpret what winter and the holidays mean to them, and what sharing with loved ones means especially across distances. Beginning in early December, Canadians can get these specially designed boxes from Purolator locations and Michaels stores and use them to send gifts and packages using Purolator Express.

Michaels is also inviting Canadians to get creative and share their own interpretation of the holidays. Canadians are invited to visit michaels.ca to download a box template and enter to win prizes including a grand prize of $1,000 worth of Michaels supplies, plus free shipping with Purolator (up to $1,200). Canadians can visit michaels.ca/en/boxdesignsweeps for contest details and to learn more about the artists.

Purolator expects to process 46 million packages in Canada in November and December of this year, a 20% increase over last year. The company expects to process 1.3 million packages on Black Friday (25% higher than last year) and an additional 6.7 million pieces the week of Cyber Monday — an 18% increase over last year. November 30 is expected to be the busiest day with 1.4 million parcels processed, about 20% higher than last year.

Read More Retail Insider Briefs:

Many Neighbourhood Gyms and Boutique Studios to Shutter Amid Second Wave

By
Mario Toneguzzi
-
Image by Queven from Pixabay

The fitness sector in Canada is a $4-billion industry annually but Canadians are in real danger of losing many of their neighbourhood gyms and boutique studios as the country struggles through a second wave of the COVID-19 pandemic and the growing restrictions being placed on businesses.

The Fitness Industry Council of Canada, which represents more than 6,000 fitness clubs, gyms, and studios from coast-to-coast, is worried about the future of many of its members as governments continue to look at ways to stop the spread of the coronavirus in communities.

Scott Wildeman, President of the Council, said restrictions are having a huge impact on the industry.

“If you look at what’s happened in Quebec for example, they’ve totally closed fitness facilities for ongoing six weeks now. And it’s perplexing to us because we have a very good track record. We’ve had north of 20 million check-ins across the country and less than 0.001 percent of transmission of COVID in our facilities,” said Wildeman, who is also a partner with GYMVMT in Calgary and Edmonton. “So what that means is obviously everybody’s had staff or members who’ve tested positive but our cleanliness and our spacing and our systems are containing it and it’s not spreading in our facilities.

“But what we have learned is the push to close gyms and bars and restaurants really is because there’s so many people where they don’t know where they caught COVID and the largest source of COVID transmission is actually unknown so there’s jumping to conclusions. So what’s happening in Quebec is they’ve closed these facilities now for six weeks yet they still have record cases. And there’s rent support applications. The rent support is theoretically available as of September 27 but we have facilities that just don’t even know how they’re going to pay anything. It’s a lot of stress.”

Wildeman said it’s not known how many businesses in the industry have already shut down. There have been some but most are still hanging in there.

Exercise Proven to Help Those with COVID-19

“We’re down to about 50 to 60 percent of pre-COVID revenues and attendance. We are going to be in a full rebuild once this is over and that’s something we’re trying to make our case to the government is how can we be part of a national solution because we do believe our product, exercise, really helps mental health, anxiety, and depression. But it also helps, if you look at the literature, people that are impacted by COVID more so are those who have chronic conditions. Let’s try to get as many Canadians without chronic conditions as possible. We know the benefits of exercise.”

January has traditionally been a month where the industry gets a big boost with people flocking to fitness facilities to burn off the excess calories they gained during the holiday season and committing to some New Year’s resolutions.

Continued restrictions will have a huge impact on the industry then.

“January typically is a real boon in terms of new customer generation acquisition. So if we don’t have that, then next year 2021 will be even harder. The government supports will be theoretically in place and that will be helpful but it will be impactful for the industry and we will be in a rebuild for quite awhile post-COVID,” added Wildeman.

Data Estimates Roughly 25% of Gyms Could Close in First Half of 2021

Nick Rizzo, Fitness Research Director at RunRepeat, a website that reviews running shoes, said some of the data he’s seen estimates that 20 to 25 percent of gyms could close in the first six months of 2021.

“These next three to six months are going to be telling. They’re going to be incredibly important because not only has the pandemic gotten worse, people are going to feel less comfortable about returning, and they are still looking at other options when it comes to gyms and working out. They’re having to go to other options as restrictions come back into place,” said Rizzo.

“And to be away from something for an extended period of time, you’re looking more and more likely to find a solution you’re okay with, you’re happy with and you get results from. I think that’s happening simultaneously while the digital and at home fitness industry is getting funded. They know they can capitalize on this moment and take a large share of the market.”

Rizzo said he’s seen a statistic where 12 percent of most gym members sign up in January. If people don’t come this year and sign up, and cancellation of memberships continue, it will be very difficult for the industry.

“If that happens, we’re going to see lots and lots of gyms struggle. Even big corporate gyms have struggled and gone bankrupt. It’s not just local gyms going under. I think we might see a major loss of some local gyms just because it’s hard to stay afloat. But at the same time the one thing that people do want during all this is a sense of community, a sense of belonging, interaction and engagement with people.

“Gyms that have cultivated that or are able to provide a more one to one solution in a safer environment, less people, more comfortable setting, higher price tags, the ones able to do that and adapt to this will be able to survive, endure longer and hopefully be able to make it out the other end.”

The question as well for the future is what is going to happen to gyms as the digital and at-home solutions become better and better and better.

Second Lockdowns Will Have Impact on Food Retail in Canada: Sylvain Charlebois

By
Sylvain Charlebois
-
Stock Image - Anna Shvets (Pexels)

Many markets in Canada will likely go through a second lockdown. With potentially 60,000 cases a day within weeks, more regional lockdowns seems inevitable. The virus knows no borders, and the virus is now spreading like a wildfire.

Toronto and Peel region are now experiencing a second lockdown in 9 months as of Monday. As news of a vaccine in reach are giving hope, public health officials will naturally want to buy precious time and save as many lives as possible. Questions about the resiliency of our food supply chain are now emerging again. Rest assured though, this new cycle of lockdowns will be different.

In March, the virus caused an abrupt standstill to our daily lives. Most of the food industry were not anticipating such a shock. Two things happened which likely made the spring a once in a lifetime event. First, we saw the complete collapse of one major sector: restaurants. According to StatsCan, monthly food retail sales in Canada were approximately $7.7b, versus $5.3b for food service. By May 2020, the last month before restaurants started to re-open, food retail generated $7.8b in sales in May 2020 versus $891m in food service. Since many food service outlets have changed their business models, sales will never reach such lows again.

The other noteworthy factor is us, the consumer. Back in March, lets face it, many of us went to the grocery store without knowing when we would be allowed to go back again. That is one main reason why panic-buying occurred. The virus was still quite foreign to us and most did not know how public health was going to deal with the pandemic. The pace of how new regulations are implemented is more manageable now. Decisions from governments now are also much more predictable.

Our behaviour has also changed. Before the pandemic, Canadians went to the grocery store slightly more than twice a week and spent just under 25 minutes per visit. Today, for the first time in more than 20 years, the average Canadian visits the grocery once a week and spends about the same amount of time per visit. Shoppers are more disciplined, focused and tend to stick to a predetermined plan without buying more than they need. As we have all become better food inventory managers at home, better cooks, better gardeners, the Canadian average household is wasting less food now than during the first few months of the pandemic, according to some reports. We are much more methodological as shoppers now. We just needed a pandemic to make that happened.

Food e-tailing in Canada is also much more developed. In fact, since March, the experience of buying food online has changed dramatically. Initially food orders took days to be delivered, whereas now orders are processed within hours. Many processors, farmers’ markets, restaurants and of course, grocers have pivoted, consumers have more options. Kraft-Heinz is now operating a restaurant. Loblaw, our country’s number one grocer, now sells meal kits from restaurants. Loblaw went from a grocer to a food broker. According to a recent survey by Dalhousie University, 63.8% of Canadians have ordered food online in some capacity over the last 6 months. The same survey estimated that 4.2 million more Canadians are ordering food online at least once a week, which is more than before the pandemic. In other words, COVID-19 has already helped to create new habits. And when asked if Canadians intend to order food online at least once a week after the pandemic, 49.4% intend to do so. That is almost half of Canadians surveyed.

Going into a second phase of lockdowns, the food industry is in a much better position, but some risks remain. The border has remained fluid throughout the pandemic. With a new tenant in the White House, we know the Biden/Harris administration will have a different approach to the virus. Let us hope it does not involve compromising the operability of food supply chains on both sides of the border.

EMPTY SHELVES AT A GROCERY STORE IN NORTH VANCOUVER. PHOTO: CTV NEWS

Analytics are another issue. Food supplies are primarily determined by historical sales order data and not by actual consumption and market data. The disconnect between the two caused the dichotomy of shortages in some food products and surpluses in others. The need to digitize the food supply chain is greater than ever. As the industry adopts different analytical methods and embraces the use of new technologies, this will certainly help.

Food processing remains our food supply chain’s greatest weakness. The need for more nearshoring, local sourcing, and domestic food manufacturing is much more acute. Costs of distribution in Canada and access for food manufacturers to domestic production of raw materials and packaging are major headwinds. This needs to change. More investments in logical infrastructure cannot be underscored enough. Any trucking company will tell you that Canada needs work in this area, urgently.

And finally, human capital. Several incidences made the sector look bad. First, the “hero pay” affair was mismanaged by our grocers and was a complete public relations disaster. Also, with many closures in food processing and farming, particularly foreign workers succumbing to COVID-19 this summer, recruitment has become much more challenging. Food manufacturing in Canada has over 28,000 vacancies now, the highest it has ever been. We can invest and re-skill all we want, but overly generous publicly funded financial aid programs for Canadians will only make our food supply chain more fragile and less resilient. The last thing the food industry needs are governments incentivizing people to stay home. It can be overdone, despite public health concerns. The food industry needs workers, desperately.

As for all of us, we should continue to trust our food supply chain. Our food industry has delivered and will continue to do so.

Read More Retail Insider Articles About Grocery Businesses in Canada During the Pandemic:

CF Toronto Eaton Centre [Mall Tour Series – October 2020]

By
Lee Rivett
-

Retail Insider’s series of Mall Tours heads to Cadillac Fairview’s CF Toronto Eaton Centre in downtown Toronto during the month of October 2020. Craig and Lee provide commentary on what’s happening at the mall in a tour showcasing what’s open, a bit of history on the centre and what has closed recently prior to the Christmas season.

CF Toronto Eaton Centre is located in downtown Toronto and prior to COVID-19, it was the busiest shopping centre in North America with almost 54 million annual visitors. The four-level shopping centre is anchored by a Nordstrom store at its north end as well as Hudson’s Bay and Saks Fifth Avenue at its south end. CF Toronto Eaton Centre has more than 235 retailers spanning more than 2-million square feet.

CF Toronto Eaton Centre Video Tour:

CF Toronto Eaton Centre Tour Details: 

CF Toronto Eaton Centre Retailers Mentioned in Tour

Level 3 retailers with select opening RI Articles

Level 2 retailers with select opening RI Articles

Level 1 retailers with select opening RI Articles

Other Malls in the Retail Insider “Mall Tour” Series:

Second Lockdown a Threat to Small Businesses in Canada with Innovation Being a Solution

By
Sean Tarry
-
Outer Layer on Queen Street West. Photo: Dustin Fuhs

Impacts resulting from the COVID-19 global pandemic and the subsequent public health protocols and restrictions concerning public gatherings imposed by government have already left an indelible mark on the retail industry and the year 2020.

Current circumstances have caused significant and ongoing disruptions to most businesses across the country, disruptions that are most noticeable in the operations of small ‘Main Street’ retailers that serve local communities and depend on footfall and physical interaction to survive and thrive. And while many small businesses are still working through recovery from the effects of the first wave of the virus and resulting lockdown, the warning of impending announcements from Premiers across the country regarding further restrictions and another possible lockdown present them with some serious challenges to consider over the days and weeks to come.

The effects of the first wave of the virus’ spread were catastrophic for some small businesses. A study conducted by CIBC in May of this year found 54 per cent of business owners in Canada citing that their sales had dropped as an initial implication of the pandemic, while an additional 28 per cent said that they were forced to temporarily close their storefronts and halt operations altogether. Even more dramatic than those numbers, according to Statistics Canada data, businesses with less than 100 employees were more likely to report that their revenues from Q1-2020 were down by 20 per cent or more from Q1-2019 (60 per cent of those with 1 to 4 employees and nearly 56 per cent of those with 5 to 19 employees). Small businesses were also more likely to have laid off more than 80 per cent of their workforce (47 per cent of small businesses with 5 to 19 employees), more likely to have requested credit from financial institutions to cover operating costs (40 per cent of small businesses with 5 to 19 employees) and were more likely to have their rent deferred (22% of businesses with 5 to 19 employees).

Those that survived the initial lockdown have continued to struggle in its wake. And now, nearly nine months on, small businesses across the country are bracing themselves and their operations for another potential shutdown, which could result in potentially debilitating ramifications for Main Street purveyors in areas of restriction across the country. However, in their quest to endure the impacts of the pandemic, there are some critical questions that require answering as well as the need for small businesses to look outside of traditional parameters to truly pivot their thinking and operations and support growth during this difficult time.

E-Commerce Small Business. Photo: Bench Accounting

Is Your Business Online with E-Commerce Capabilities and Functionality?

Making your product available online is no longer a ‘nice-to-have’. In light of store closures related to government restrictions on business, whatever product you specialize in providing for your valued customer has got to be made accessible to them in order to continue selling during any potential imposed lockdown.

CIBC research shows that of the 26 per cent of responding business owners who conduct online operations, 30 per cent of them have seen an increase in sales since impacts of the pandemic began as compared to pre-COVID-19 levels.

Services including those offered by Shopify and others can help your business set up online so you can keep selling.

How are Your Services and Products Being Delivered to Your Customer?

Relying on product to be purchased off shelves is obviously out of the question when operating during a lockdown. Small business owners have got to assess the means and ways by which products and services are delivered to their customers.

Making sure your product is available to purchase online is one thing. But by ensuring that your customer can receive their purchase in as many ways as possible will provide them with the convenience and security that they’re looking for. Does your store have the ability to offer curbside pickup? Are you able to offer customers contactless home delivery?

Reviewing your current methods of product delivery and thinking creatively about the ways in which you can leverage local courier services and other alternate modes of delivery could not only help your businesses withstand the impacts of reintroduced restrictions, it could also differentiate you and your offering in the long-term.

Google Search Results. Photo: Pixabay

Do You Have the Tools Required to Increase Your Google Traffic?

With an online presence and e-commerce capabilities, small businesses should ensure that they are effectively being found by their customers. There’s a lot of clutter online.

Taking advantage of the latest services and offerings from Google’s search engine team and the resources it offers will allow you to stick out from the crowd and be seen by customers who are looking for you.

Optimizing search engine terms and keywords to capitalize on local digital traffic, and ensuring that your online offering is optimized for mobile, will pay dividends for you and your business, opening up your offering to a whole new audience and host of opportunities.

What Are the Modes of Customer Engagement That You Currently Employ?

Again, resting on the laurels of footfall to your store will not suffice during a period of further restrictions on your business. Social media channels, including Instagram, Twitter, Facebook, YouTube and others, offer a great means by which to connect with your customers, both existing and prospective, and to tell them the story of your brand and the product you offer.

These channels can be used to livestream, provide customer testimonials and promote your business in ways you may not have thought of until now.

There is no doubt that these are trying times for many small business owners across the country. However, within these challenges are opportunities for Canadian entrepreneurs to show their resilience and spirit of innovation to continue to succeed and thrive.

For more information concerning the tactics that small business owners can deploy in the days, weeks and months ahead, continue visiting Retail-Insider.com as we unpack the ramifications of the pandemic and restrictions on businesses, offering resources and expert advice to help you navigate through the challenges at hand.

Read More Retail Insider Articles About Small Businesses in Canada During the Pandemic:

1...873874875...1,283Page 874 of 1,283

FEATURES ON RETAIL INSIDER

spot_img
spot_img

About

Contact

Media

Follow

© 2025 Retail Insider Media Ltd. All Rights Reserved. The content on this website is protected by the copyrights of Retail Insider Media Ltd. or the copyrights of third parties and used by agreement. No part of any of the content of this website may be reproduced, distributed, modified, framed, cached, adapted or linked to, or made available in any form by any photographic, electronic, digital, mechanical, photostat, microfilm, xerography or other means, or incorporated into or used in any information storage and retrieval system, electronic or mechanical, without the prior written permission of Retail Insider Media Ltd. or the applicable third party copyright owner.