Selling swimwear in Canada was, at first glance, a bad business idea. Swimco’s closure was not because it was a bad idea. In fact, Swimco was an international leader within its sector. Swimco’s early passing is another sad reality of COVID-19 and the current economic challenges.
Lori Bacon
What the news story doesn’t tell is how Swimco was a champion for women in business. Started by a mother and entreprenuer, Corinne Forseth, and passed over to another mother – her daughter and business leader, Lori Bacon – the Swimco story started and ended with females at the helm. Additionally, over 90% of their workforce was female which meant women were leading the way in all company roles. Swimco created the right culture of professional dedication to the business that also supported women being promoted within the company. Additionally, the contractors and others that Swimco worked with were almost all female. It was a success story that supported women in our city and throughout Western Canada.
As well, the Swimco culture was based on family values that included working hard, being your best and respecting others. The owners, Lori and her brother Steve and her husband Dave, provided role-model business practices and did so by respecting each other without falter. The company received awards for this hard work including the Calgary Award for Commerce and The Alberta Business Family Institute Signature Family. Lori was also recognized for the Enterprising Women of the Year award. Swimco had sizable economic benefits especially within Calgary, Vancouver, and the greater community of Western Canada with recent expansion into Ontario.
Despite the headwinds being too strong, the Swimco success story is well respected in the Canadian retail industry. In fact, the president of a major surfwear brand once noted that he just had to understand it for himself, how a store located in a land of snow, could out-sell retailers located along the California coast. Known in the industry to outsell nearly all other swimwear stores in North America, Swimco had a reputation for being professional and positive. Recognized as a leader by significant swimwear brands, Swimco’s reputation was far bigger than its bricks and mortar stores. Swimwear manufacturers throughout the world, including Australia and America, held Lori Bacon and the Swimco team in high regard. They represented Calgary and Canada well for many decades.
Many customers came to know and trust the Swimco brand that was established for over 45 years as the one to support every type of body. Proponents of having a positive self-image, no matter your body shape or size, the fabric of the Swimco culture was built upon acceptance and positive self-image. Beyond selling bikinis, Swimco’s foundation was to empower people who worked for the company, who in turn empowered tens of thousands of customers to be their best.
Supporting aquatic athletes was an integral part of Swimco’s impact for many years. It was the beginning of Swimco’s history and in fact for many years, Swimco provided swimwear to hundreds of competitive and recreational swimmers including young children, lifeguards, swim teams, Olympic and Special Olympic athletes.
It’s important to pause and give thanks to Swimco’s CEO Lori Bacon and her family for providing the leadership and bravery that entrepreneurs take on. Thanks to their leadership, Swimco provided an excellent place of employment for thousands of young women over the past 45 years. For many of them, it was their first job and gave them a positive start.
Swimco, and all the people associated with it, will be missed. My name is Lisa Wise and I am honoured to say I was part of the Swimco team for years.
SECURITY SURVEILLANCE AT GROCERY STORE. PHOTO: AXIS
The world around us has changed significantly over the course of the past seven months or so, the impacts of COVID-19 endured by just about every person in every community on the planet. Consequences on society at large that resulted from the first pandemic wave were severe, creating scenes not too dissimilar from those imagined in some of the most chilling science fiction stories ever written. In efforts to curb the initial spike, mandatory health measures were instituted in most cities and countries, which often included the cordoning off of city parks and other spaces that had once served as common gathering areas, the cancellation of any and all public events, and the implementation of physical distancing rules which limited the number of people who could congregate in a public or private space at any one time. In short, the ways we had become so used to doing things were suddenly turned inside out, imposing on us a new kind of normal that we’re now collectively familiarizing ourselves with.
The repercussions felt by most segments and sectors of business around the globe as a result of these measures were also immediate and harsh, to say the least, the bottom lines of most companies taking an indefensible hit. And for retail, an industry so heavily reliant on human interaction and engagement, the effects were staggering, as brick-and-mortar storefronts and offices shuttered temporarily, reducing once bustling Main Streets to centres of relative inactivity, restricting the operations of retailers everywhere and inhibiting all possible growth.
Although precautionary restraints began to ease across Canada back in June of this year, populations in many provinces, as recognized by numerous health officials across the country, are now well and truly experiencing the impacts of a second wave of the life-threatening virus. And as the 2020 holiday shopping season quickly approaches, many experts in and around the industry, including Rick Snook, Business Development Manager for Retail and Banking at Axis Communications, contemplate just what our new normal looks like and the solutions that will be required to help retailers recover, sustain and grow in the short-term, as well as realize and capitalize on opportunities to flourish in the years ahead.
“The retail environment has been altered dramatically as a result of COVID-19,” says Snook. “And it seems very likely that many of the impacts of the pandemic will remain ongoing. It’s resulted in a big rethink for many within the industry as we all continue to learn the full extent of the effects caused by the virus and how subsequent changes to retail operations will impact the shopping journey for customers going forward. When you think of things like the implementation and increased use of curbside pick-up and delivery options, as well as other processes and aspects within the retail environment that have been impacted by the pandemic, an entirely new set of considerations and challenges are introduced to retailers. As part of these challenges, they’re tasked with the responsibility of continuously ensuring a shopping experience for their customers that’s as enjoyable, efficient and safe as possible.”
Altered Environments; Evolving Challenges
Now accountable for the responsible management of customer flow and occupancy levels within physical stores, as well as the safeguarding of their spaces by ensuring that visiting customers are abiding by physical distancing and facemask requirements, the burden on retailers related to the operation of their physical stores has perhaps never been greater. When these new demands are combined with traditional in-store complications like shoplifting and internal shrinkage, merchants’ need for retail technology solutions to help them meet these challenges and demands is just as great. And this, according to Snook, is where Axis Communications and its suite of services comes in.
The company, founded in 1984 by Mikael Karlsson, Martin Gren and Keith Bloodworth, has for decades been known as one of the global leaders in loss prevention and security network technology. However, a few years ago, recognizing a shift in the market and an evolution of the needs of the end user, Axis made the decision to expand its offering and services beyond video security surveillance to include a series of robust digital solutions. Through the combination of video analytics and network cameras, the company is today positioned to provide retailers with what Snook refers to as an “overall collateral” to help their businesses run as efficiently and safely as possible.
As part of Axis’ overall collateral, it offers retailers a means by which to meet these new challenges, providing technology that allows them to digitally monitor queues at the cash register and to count and track the number of visitors in their stores to accurately determine current occupancies. Snook explains that the latter of the applications can be used to assist greeters at store entrances or act as a standalone solution which electronically displays the number of customers in a building at any one time. Audio trip lines can also be integrated inside the store’s interior door to remind people to keep their physical distance of two metres or six feet and to make them aware of hand sanitizer stations located throughout the premises. In addition, Axis’ video technology is equipped to detect whether or not a person entering the store is wearing a facemask, and will alert the retailer with the information which they can then act on at their discretion.
AXIS SECURITY SURVEILLANCE. PHOTO: AXIS
Enhanced Business Intelligence
It’s all part of an offering that represents an added layer to Axis’ already dynamic levels of safety and security features and detection technology, providing protection for both visitors to retail locations as well as the in-store staff. However, what seems most compelling about the company’s offering today is the confluence of uses and applications of the technology, allowing retailers to not only ensure a safe and secure space, but to elevate their day-to-day and long-term strategies via the generation of data that enhances business intelligence, helping to inform everything from staff allocation and site performance to decisions concerning marketing, merchandising and operational efficiencies.
“What we’ve achieved by continuously building onto our solutions is make them multidimensional and multipurposed,” says Snook. “They’re built to help retailers tackle a number of different challenges that they face within their physical stores. Whether you’re talking about shoplifting, organized crime or slip-and-falls, or understanding the customer journey through your store, our solutions are equipped with the intelligence to help with all of these things, right across the board. In most cases, retailers have already got the cameras on site. It only makes sense for them to leverage the technology to help identify where customers are spending most of their time in the store, which products catch their interest and attention, and to analyze any and all other visitor trends that might help increase efficiencies and enhance the in-store experience, all while keeping their guests and employees safe and secure.”
Of course, there are a plethora of other uses for this kind of technology, their number limited only by the amount of in-store challenges. Store locations can be remotely monitored and audited for merchandising purposes, to identify required marketing signage updates, and to simply ensure that the premises is safe and secure. Axis’ video technology can even be used to alert retail staff of the need to clean their restrooms based on the number of visitors who have gone in to use them. And the list goes on. Snook describes this range of applications and uses as “video technology beyond security”, a range that leverages analytics and the Internet of Things to enable retailers to gain a much deeper understanding concerning the effectiveness of their operations.
“It’s all about being creative and innovative to find other purposes for video within the store, to figure out how to expand those applications and uses, and to share the intelligence with all stakeholders,” Snook says. “In this way, armed with all of the data and business intelligence that our technology and analytics produces, the retailer then has the wherewithal to dramatically improve the experience for their customer. And at the end of the day, it’s what retail is all about: selling product and making shoppers happy.”
Impacts on Holiday Shopping
Snook goes into some detail regarding the emphasis that Axis places on the work it carries out on behalf of retailers, recognizing the industry as one of the company’s main areas of focus. He speaks proudly of the engineering that’s taken place behind the scenes for years in efforts to continue supporting retail operations, helping to contribute toward their successes. And he admits that with the 2020 holiday shopping season approaching amid a confirmed second wave of COVID, the need for Axis’ intelligent analytics will be immense and widespread.
“The holiday shopping season is obviously going to look considerably different this year as opposed to previous years,” he says. “And, because COVID has triggered a bit of a dip in the economy, we’re likely to see an increase in theft and robberies. Malls, in particular, will be faced with unique challenges, including concerns around lineups and parking lot space and securing that mass amount of people that are going to descend on their properties. It creates a host of dilemmas that retailers in malls and their landlords are going to need to overcome. And our focus as a solutions provider is to help strengthen retailers during this time, equipping them with the tools to support a successful holiday shopping season by helping them ensure that the right product offering is on the shelf, and assisting them in preventing disruptions to their customers and staff by making sure that the policies, protocols and safety measures they have in place are adhered to. Because of these needs, I think video technology, for all of its uses, will be leveraged to significant importance over the next few months”
Beyond the Pandemic
Snook’s prediction, considering all of the factors that will be at play through to the end of the year, seems like an adept one. And, although video technology and analytics have been in use for some time, he believes that 2020 and the impacts of the COVID-19 pandemic may prove to be a bit of a watershed moment for these types of solutions as retailers reimagine what brick-and-mortar stores will look like beyond the holiday shopping season and pandemic restrictions. How will businesses operate differently post-COVID? How will the global health concerns that have been caused by the virus impact store design? How will the perceived need for office space and travel be impacted? These are only some of the questions that retailers will be asking themselves during the next 6 to 12 months. And Snook is confident that companies with solutions like Axis are well positioned to be able to help them navigate through them.
“We’re taking a three-dimensional view at how brick-and-mortar locations will operate in the future,” he says. “And through our solutions, we’ll be able to provide retailers with applications that can help lighten some of the financial burden that they feel associated to operational costs, increase their level of security onsite, and turn their cameras into smart technology to help enhance the customer experience. There are so many business benefits that will revolve around video technology, surveillance and artificial intelligence in the years to come. The combination of their uses is a real game-changer. And because of the obvious and tangible return on investment that can be achieved as a result of their use, we’re going to see an increase in the number of retailers leveraging these types of technologies – sustainable solutions – that will allow them to properly and effectively overcome the challenges they face today and prepare them for those that they’ll be faced with tomorrow and into the future.”
INTERIOR OR MR. SATURDAY STORE IN TORONTO. PHOTO: MR. SATURDAY
For Toronto-based fashion brand Mr. Saturday, international travel is usually a regular part of day-to-day business. With the global pandemic having halted non-essential travel, the brand decided to take advantage of its extended stay in Toronto to temporarily open a storefront with a twist—a portable pop-up that could be packed up and shipped elsewhere in the world once travel becomes safe again.
Mr. Saturday, founded by designer Joey Gollish, launched in 2017 as a luxury direct-to-consumer fashion label selling merchandise mainly through its website and occasional pop-ups. In the years since, the brand has begun participating in wholesale showrooms at major international fashion events such as Paris Fashion Week. “Since then, we’ve been stocking luxury boutiques worldwide, and continuing to sell direct online,” Gollish says.
This fall, Mr. Saturday opened its “ephemeral” flagship in the building where its headquarters are located, at 950 Queen St. West, between Shaw St. and Ossington Ave. Gollish describes the two-storey store as a “museum in progress”.
INTERIOR IMAGES OF MR. SATURDAY STORE IN TORONTO. PHOTOS: MR. SATURDAY
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INTERIOR IMAGES OF MR. SATURDAY STORE IN TORONTO. PHOTOS: MR. SATURDAY
“It’s really a mix between gallery and retail that takes on this museum aesthetic mixed with our headquarters,” he says. The large 3,300-square-foot store features large wooden crates typically used for delivering art. In fact, the change room itself is a massive wooden crate. The space also features various mid-century-inspired furniture and design elements.
The top floor, which contains the desks where Gollish and his team typically work, has been transformed into a hybrid working and retail space, showcasing the brand’s full luxury retail offering. The main floor contains a logistics centre and inventory, as well as a retail space showcasing the ‘Department of Research and Records’—the brand’s more affordable fashion collection.
Combining Mr. Saturday’s headquarters with the retail space creates an authentic experience for clients, Gollish says. “You get a glimpse into the process while you’re shopping.”
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The museum concept is fitting for Mr. Saturday’s retail approach since Gollish describes the brand itself as a ‘wearable museum’. The label’s collections tell stories inspired by ephemera, historical events and social movements. In particular, many of Mr. Saturday’s collections pay tribute to iconic nightclubs around the world, especially from the 1970s and 80s, and the contributions they’ve made to society.
“For me, it’s always been super clear that nightclubs are like safe havens for marginalized communities and they’re usually at the forefront of any socio-political movement,” Gollish says. Examples of nightclubs acknowledged through Mr. Saturday designs include Le Palace in Paris, Amnesia in Ibiza, and New York clubs The Ritz, Danceteria and Paradise Garage.
Social injustice is also a key theme in Mr. Saturday designs. In light of the massive racial justice movement that gained momentum earlier this year, Gollish decided to pay tribute in his Spring/Summer 2021 collection to black graffiti artist Michael Stewart, who tragically died following his arrest in New York in 1983. Gollish says the case reflects the long history behind the current discrimination and police brutality movement.
“This injustice isn’t new; it’s something we’ve been fighting for forever and something we need to keep pushing for,” Gollish says. “Many young artists have been taken from the community before they were able to reach their prime. This kind of theme comes through our work a lot.”
To support the black community, Mr. Saturday designed an ‘End Racism’ shirt earlier this year, with 100% of proceeds donated to the Black Solidarity Fund.
Adapting Mr. Saturday to a COVID landscape
Despite the challenges associated with opening and operating a retail store during the COVID-19 pandemic, Gollish says it’s been a very positive experience. In fact, he says the realities of 2020 are what inspired the idea to open the store.
“The world feels like a bit of a strange place at the moment, and now more than ever we feel the need for community,” he says. “The idea was to create a place where we find a new sense of community, and bring life back to the city that’s given us so much.”
The reception from customers has been extremely positive, according to Gollish. “The community here has been really receptive, and we’ve been getting a lot of new customers, which is really exciting.”
To ensure a safe shopping experience, store capacity is limited to 10 customers at a time. Mr. Saturday is also encouraging customers to book appointments before coming in. Educating customers has been important to help people understand that appointment-based shopping is a convenient option for everyone, and doesn’t mean customers need to spend a lot of money, Gollish says.
“Private shopping can seem unapproachable to a lot of people—some people might think it’s not within their realm,” he says. “But we’re saying that shopping should be appointment-based now. It’s just all about education.”
On the Move
The Toronto store is set to remain open until the end of 2020. In March 2021, Mr. Saturday plans to pack up the store and ship everything to L.A., where the store will reside temporarily. After that, Gollish says he hopes to bring the store to major global fashion destinations such as New York City, Tokyo, London, Paris and even Australia.
Although he loves the idea of a travelling store, Gollish says he’s also considering a permanent retail location in Toronto. “Because of the success in Toronto and the fact that we work here most of the time, I think a permanent location is definitely on the horizon for us,” he says. Mr. Saturday is also considering a permanent location in New York City.
Electronics retail giant Best Buy Canada continues to pivot, innovate and adapt to the challenges brought on by the COVID-19 pandemic to better reach consumers in the marketplace.
Mat Povse. Photo: LinkedIn
Mat Povse, Senior Vice President for Best Buy Retail, Geek Squad Services and Best Buy Canada for Business, said the pandemic created an immediate shift in terms of the retailer’s primary objective which was first and foremost providing customers with options to shop how and when they want.
The safety of customers and employees was paramount and it has driven every decision by the company all year long.
“We’re in constant consultation with our team members and our customers. We use surveys and consumer insights to make sure we’re on the ball and people are feeling good,” said Povse.
“The first thing we do is make the consumer aware that there are multiple ways to shop with us and get the things that they need. Specific to the store, all year long we’ve iterated our operating model from almost full closures in some provinces to what we’re calling a fully open store but we’re limiting the amount of customers who get to come in to make sure we have the social distancing. The stores are constantly cleaned and we’ve got the mask policies in place and the protocols you would expect around retail in general.
“We’ve done a few other things as well. For those that still want to come to the store, we’ve introduced ways to grab that product. So we were the first retailer in Canada to offer a reserve and pickup process which is way before COVID. We’ve iterated that way of shopping with us so that you can now come to the store but you don’t even have to get out of your car. We’re working on curbside pickup. We’ve iterated on the reserve and pickup process to make it faster so customers can get in and get out and we can let more customers in and do it in a safe way.”
BEST BUY CANADA RE-ENGINEERED STORES AMID COVID-19 PANDEMIC
Povse said the company has re-engineered and re-floored the Best Buy Canada store to make sure that where people stand in lines and how they are served are different than it used to be.
“We’re very clear on how customers walk into our stores. If you come in to pick up a product versus coming in to walk around and shop the store, we acknowledge that before you enter the store and we manage the lineups that way as well,” he said.
Some sectors of the retail industry have done well through the pandemic such as essential services around grocery stores and drug stores.
Even electronics. With more people working remotely and spending time in their homes, it has become natural that electronic products are more popular today to help people in their work and their leisure.
INTERIOR OF A BEST BUY STORE. PHOTO: BEST BUY
ECOMMERCE HAS BECOME MORE IMPORTANT THAN EVER FOR BEST BUY
Ecommerce has also become an important and critical process for any retailer today. And an area where innovation is constantly top of mind to meet a growing demand.
“We continue to innovate what we serve up in ecommerce,” said Povse. “Now you can go online pre-pay for your purchase, go to the store and pick it up. You can certainly have your products shipped to home.
“But you can do other things now you couldn’t do before such as go online, research products and then you click the chat with one of our employees virtually online and you can ask and have answered all the questions you would normally do inside a store.
“We started the early stages of online phone activations which is brand new for us as well and the list goes on. The traditional way of getting your phone is you generally have to go to a store. Bricks and mortar location. Talk to an associate. Provide your information. Start to pick your plan and your phone. We started the early stages where customers can actually go and front load that activation process online making it a lot easier and faster when they do get to the store to pick up their phone. That’s the early stages of what we’re calling online phone activations.”
SCREENSHOT OF BEST BUY WEBSITE
The busy selling time of the year is upon us with Black Friday just around the corner and Christmas and Boxing Day not far behind. It will be a different experience for retailers this year. One filled with anxiety to see how the consumer reacts during this pandemic.
“The best thing we can do is to create an ability for customers to shop how they want and when they want. So rather than congesting all of our hot offers and promotions and prices and inventory around one single day of the year we started earlier than ever and our offers are now released to the public,” said Povse.
“We’ve launched a ton of deals which have been released early (before Black Friday). There’s really no distinguishing offers you would get on a Black Friday versus deals available now.”
Over the past year, cities have become remarkably different places. The response to the ongoing coronavirus pandemic has resulted in less active public and shared spaces like parks, malls, streets and retail.
One thing that has become clear is that the retail landscape in downtown areas will look even more different in the coming years. This will include losing more department stores, which have struggled to remain relevant.
Retail in the North American downtown has been under threat for decades from changing urban development and consumer habits that have also been hard hit from the pandemic. The recent explosion of online shopping merely continued the previous impact of the 1950s suburban growth: massive malls and retail clusters serviced growing populations that lived further from the traditional core of the city. This shift, combined with the big box store revolution of the 1980s, ended the role of downtown as the primary retail destination for shoppers.
Discounted merchandise at the Bay in Winnipeg, which is the city’s last remaining downtown department store. (Jino Distasio), Author provided
Department stores first appeared in the mid-1800s. They disrupted the retail industry by pulling people off the streets and into multilevel wonderlands. And for more than 150 years, the department store’s reign in the downtown was second to none.
Department stores were so much more than shopping: they were destinations where people met, gathered and socialized. They were also exclusive spaces, with lavish displays and architectural designs that offered an escape from the ordinary.
The city of Winnipeg is a good example of the downtown department store’s rise and fall. For more than 100 years, the downtown department store was front and centre in Winnipeg’s retail landscape. In 1905, when the Eaton Company opened its flagship store, Winnipeg was one of Canada’s fastest growing cities.
At its height, Eaton’s had eight floors of shopping and a massive complex of buildings that included a nearby annex for mail orders that totalled over almost 14 thousand square metres of space. A trip to Eaton’s wasn’t just about making purchases, it was a day-long excursion.
Twenty years later, when the Hudson’s Bay store opened up further along Portage Avenue in 1926, Winnipeg had become Canada’s third-largest city. It had a thriving economy that was propelled by a 40-year boom that saw people and businesses flock to the city.
Downtown Winnipeg, like most North American cities, was the epicentre of retail and commerce. It attracted the majority of shoppers and workers, who travelled by streetcar from all over the city. The positioning of these two department stores along Portage Avenue created an important retail corridor that was linked by street level retail.
Downtown Winnipeg is a mix of historic and contemporary buildings that reflect the city’s changing retail landscape. (Shutterstock)
A Steady Decline
Starting in the 1930s, Winnipeg tumbled to a place of pronounced economic and social desperation by the 1960s. For the department stores, their massive statures began to represent a disappearing symbol of a bygone era. This came as suburban shopping malls began to spring up with dozens of American retail chain stores and a sea of free parking. Downtown simply became a less desirable destination.
Winnipeg was not unique in struggling to deal with decline in the downtown. Significant attempts to revive retail were made throughout the 1980s to halt urban decay. Malls were built and millions invested, but this did not work.
By the late 1990s, the first titan of Canadian retail fell as the Eaton’s empire crumbled. For many cities, the result was the closure of many anchor stores in malls and downtown. And since then, the retail sector has continued to face challenges, especially in downtown areas.
Post-Pandemic Hopes
Cities will remain the engines of the global economy with the downtown being the place to escape. In the words of British singer Petula Clark:
I think it is fair to say that after a run of 150 years, the department store as we know it is not going to survive the final blow issued by the coronavirus pandemic. But cities will rebound, and the department store will transform something else.
If the past is an indication of the future, cities will recover. People will return to the downtown as it transforms from retail into homes, places of work, museums, art stores and gathering places.
For those of us who remember the spirit of these old places, we will reminisce over coffee, as we’ve been doing for decades perhaps just in a smaller space.
This article was re-published from “The Conversation”. Read other articles from “The Conversation”:
CALGARY, AB – OCTOBER 25, 2020 – Danish home retailer JYSK is opening its Calgary flagship store, the first in a series of future investments in the Alberta market.
Located near Sunridge Mall in the city’s northeast quadrant, the global retailer’s new, 36,726 sq. ft. space will feature a large selection of JYSK’s accessible and stylish Scandinavian home décor and furnishings.
While retail expansion might seem like a bold move during the ongoing COVID-19 pandemic, the store opening comes at a time when more Canadians than ever are working and spending their leisure time at home.
Explains Eythor Tryggvason, JYSK’s Alberta District Manager: “Now, more than ever, Canadians are recognizing the importance of investing in the places where they live. Our new Sunridge location will provide Calgary residents with great offers for their homes and an in-store shopping experience that’s safe, clean, and distinctly Scandinavian.”
According to Tryggvason, the Sunridge location is just the tip of the iceberg when it comes to investing in Alberta. As part of JYSK’s expansion strategy, further investments in the province – and more store openings – are being planned.
“As a Calgarian, it’s a great feeling to be able to open a new store and provide jobs during difficult times,” says Tryggvason. “Growth is a key part of JYSK’s DNA globally, and we truly believe that the sky’s the limit for our company in Canada, especially in Alberta. This is just the first step in our growth plan for Alberta and we remain committed to investing in the province for years to come.”
The grand opening of the JYSK Sunridge location will take place on Tuesday, October 27th, 2020, with COVID-19 measures in place for the health and safety of customers.
Fashion Retailer Mendocino Shuts All Physical Stores
MENDOCINO STORE AT SQUARE ONE SHOPPING CENTRE IN MISSISSAUGA. PHOTO: MENDOCINO
Toronto-based women’s fashion retailer Mendocino has shut all of its Canadian stores as it shifted all operations online. The Mendocino website has been shut down though the retailer’s M Boutique website remains operational.
The retailer once operated more than 20 stores under the Mendocino and M Boutique banners in Southern Ontario. The majority of those were in the Greater Toronto Area.
Mendocino filed for creditor protection in July of this year after the company’s stores were shut down temporarily due to the COVID-19 pandemic. At the time the company said that it was not bankrupt and that it had been looking at keeping some of its physical stores open.
Mendocino was founded by husband-wife team Jan Kaplan and Norma Caron in 1987. The multi-brand retailer carries a range of popular brands focusing on a mid to upper-mid price-point. About a decade ago Mendocino launched the M Boutique concept which features a fast-fashion offering at a lower price point.
Retailers that have shut stores to pursue e-commerce only have been met with limited success. It remains to be seen how long M Boutique operates without physical locations.
Okaïdi Canada Files for Creditor Protection
OKAÏDI STORE. PHOTO: OKAÏDI
The Canadian division of French children’s fashion retailer Okaïdi has filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. In filing documents, the retailer says that it is insolvent and has outstanding debts exceeding $15 million. The situation was first reported in Insolvency Insider last week.
Okaïdi Canada’s debts include about $150,000 owed to employees and substantially more to mall landlords. Okaïdi Canada owes hundreds of thousands of dollars to Cadillac Fairview, Oxford Properties, Ivanhoe Cambridge, and Cominar, among others.
The retailer operates 15 stores in Quebec and Ontario and said in filings that COVID-19 has resulted in substantial losses requiring restructuring. Negotiations are ongoing with landlords and it’s unclear if any stores will be closing. Richter is the proposal trustee. BDG Law is acting as council for the retailer and Stikeman Elliott is acting on behalf of Richter.
Flexible Workspace Replaces Shinola Store on Toronto’s West Queen West
EXTERIOR OF SHINOLA ON QUEEN STREET WEST IN TORONTO. PHOTO: HULLMARK
An innovative flexible workspace called Workmode has moved into a corner retail space once occupied by a Shinola store at 1000 Queen Street West in Toronto. The prominent building at the corner of Ossington Avenue was originally built for a bank. Shinola vacated the Queen Street store in January of this year after opening to fanfare in July of 2016.
Workmode is described as an on-demand, pay-by-the-hour workspace catering to decentralized workers living in the area. It’s part of a “15-minute neighbourhood” according to the company. No membership is required and bookings can made directly through the company’s app.
Hullmark, which owns several buildings in the area, owns the 1000 Queen building and is said to be looking for new tenant options in the area. Recently Hullmark completed a unique renovation to buildings located at 46-54 Ossington Avenue.
The Gap to Exit Many Canadian Malls
PHOTO: THE GAP
The Gap is rethinking its real estate strategy and is looking to eventually operate about 80% of its stores in strip centres, downtowns, and outlet malls by 2023. It’s more bad news for Canadian shopping centre landlords that are already grappling with vacancies as retailers shut following COVID-19 closures in the spring.
At the same time, the Gap is looking to boost e-commerce to about 50% of sales, double what it is now in North America. The Old Navy brand stands out in terms of profitability and is expected to open a handful more stores in Canada over the next three years.
The Gap has been quietly closing stores across Canada. This month we reported that the Banana Republic flagship on Bloor Street West in Toronto had shut its doors after 25 years in operation, and the future of the 60 Bloor Gap store is also uncertain. Various other Gap-owned strorefronts have closed — BMO Capital Markets estimates that Gap Inc. has closed about 500 stores in North America over the past decade.
Things could turn around for the Gap in early 2021 as the retailer launches a Yeezy capsule collection with musician Kanye West. If the collection takes off, the Gap could be seen in a new light by consumers.
Star Bédard to become Beauté Star, as part of a retail and brand reinvention
BEAUTÉ STAR
Top Beauty Group (TBG) which comprises Star Bédard, as well as M2B, Professional by Fama, and Madame B2K, is rebranding its chain of retail stores, launching a new website, and unveiling a new prototype store in Drummondville, Quebec.
The company known for its hair and beauty products — which has been family owned and run since 1978 — operates 24 Star Bédard/M2B stores in the Province of Quebec, as well as Northern New Brunswick and Eastern Ontario. The stores will now operate under the Beauté Star moniker, kicking off a new direction for the Quebec-based company.
“We created a name change to support both brands,” says Andrew St-Charles, Directeur, E-commerce et Marketing for TBG. “The name change is also based on a change to our business model.”
The company is first launching a new direct-to-consumer website and, on November 30, plans to debut its new prototype store, which St-Charles calls “feminine and exciting”. Designed by famed architects Provencher-Roy, the new store is experiential with a strong digital focus — featuring an in-store shopping app and iPads throughout the space. The new store will not be open to consumers until 2021.
In time, all 24 Star Bédard locations will rebrand as Beauté Star, but for now, the initial focus in on building the direct-to-consumer brand online.
Nobis Launching Virtual Coat Drive
NOBIS ‘NO COLD SHOULDER’ PINS. IMAGE: NOBIS
Canadian premium outerwear brand Nobis has announced the launch of No Cold Shoulder, a global campaign starting November 1 which will upcycle gently worn winter jackets and get them on to the shoulders of the most vulnerable members in local communities. With 8.7% of the Canadian population living below the poverty line, an estimated 1 in 12 families are challenged to find the means to purchase appropriate winter gear to stay warm this winter.
“Nobis is Latin for ‘us,’ and since our early beginnings we have embraced the responsibility of community support within both our personal and corporate conduct. True to the ethos of our brand name, which aligns seamlessly with our personal values, the entire Nobis team is extremely excited to continue this commitment in launching the No Cold Shoulder global community campaign. With the help of our entire team including retail partners, ambassadors and brand supporters, we have targeted to keep upwards of 15,000 people around the globe warm this winter season,” said Robin Yates, Vice-President and Co-founder of Nobis. “Even during an exceptionally challenging year, people are looking for ways to help. We want to make it easier than ever for Canadians to participate and provide warmth to children, families, and individuals in need with the No Cold Shoulder program.”
NOBIS NO COLD SHOULDER UNISEX REVERSIBLE BEANIE. PHOTO: NOBISNOBIS NO COLD SHOULDER UNISEX REVERSIBLE BEANIE. PHOTO: NOBIS
Starting in November, consumers can participate in a variety of ways to help give the gift of warmth in their community. At the heart of the campaign is a resealable, biodegradable donation mailer bag with pre-paid postage to encourage the donation of a gently worn coat to a local charity in need. Consumers can pick up the mailer at Nobis stores or at any of the participating retailers listed on NoColdShoulder.com.
In Canada, Nobis will donate $50 from the purchase of every piece of outerwear sold during November to New Circles Community Services, a community-based charity operating Toronto’s largest free clothing program GLOW (Gently Loved Outfits to Wear), which annually helps 13,000 newcomers, refugees and economically vulnerable families in Toronto to meet their basic needs and live and work with dignity.
Nobis is available at upscale retailers across Canada, and the brand also operates two standalone stores in Toronto.
RW&CO Partners with HelloFresh for Prize
PHOTO: HELLO FRESH
A recent partnership between HelloFresh and RW&CO is giving Canadians the opportunity to win six months of delicious and high-quality HelloFresh meal kits and a $2,000 RW&CO gift card.
The contest is open for people to enter until November 15, 2020. The total prize value is $4,600. (7 prizes total – 1x Grand prize: HelloFresh meal kits value: $2,600 – RW&CO. gift cards value: $2,000 – Total grand prize: $4,600 + 6 additional prizes: RW&CO. gift card value: $100 each).
Major Canadian grocers in Canada are at it again. After Walmart and Metro, it was Loblaws’ turn to make changes to its vendor policies, implementing new fees to support a $6 billion plan to improve its in-store and digital operations. A letter written by Loblaws President, Sarah Davis, was leaked to the media. Over the summer, Walmart and Metro stated similar motivations. Sobeys, the only one left, if you exclude Costco, opted not to copy Loblaws, Walmart, and Metro. It was announced by Empire CEO, Michael Medline, this week.
This has been going on for years. Justifications have ranged from mitigating climate change to implementing new ERP systems to following new packaging rules. This time, it is mostly about e-commerce, given our appetite for more food deliveries. Digitizing food retailing will be a priority as we come out of COVID. Simply put, it’s supply chain bullying.
The tone of Loblaws’ letter was telling, as if the company knew the letter would be shared broadly. Loblaws, as did Walmart and Metro, argued that they were protecting consumers from higher food prices by implementing new fees. The message has been consistent over the years as grocers have always positioned themselves as consumers’ socio-economic guardians.
But the true cost of these measures is an increasingly weakened food manufacturing sector and the slow disappearance of the independent grocery retail landscape. Since 2012, the food manufacturing sector has lost more than 40,000 jobs due to plant closures and lack of investments. Margins have become razor-thin, making it ever more challenging to justify any further investments in Canada, whether it is a multinational company looking at increasing its footprint in Canada, or smaller, family-owned operations trying to grow their business. Maple Leaf Foods just built a $300m plant in the U.S. to support its newly established plant-based division. Maple Leaf Foods, of all companies, and many of the ingredients needed to support its U.S.-based plant come from Canada.
Food manufacturing is really the centrepiece of our entire agri-food sector and it is slowly eroding because of all these measures. Without a strong processing sector, farmers must look abroad for opportunities, which in turn increases the chances of seeing more imported products on our grocery shelves. Typically, manufacturing is where most of the innovation and growth come from in the food sector. Domestic research supported by the private sector to develop groundbreaking ideas has been gutted over the last few years. As a result, more food innovation is being imported into Canada in recent years when it should be the other way around.
Measures by the larger chains are also affecting the ability of independent grocers to offer unique and often locally produced products. Major grocers are off-loading costs on to suppliers while smaller, independent grocers must cover such costs themselves. Independents are typically more receptive and inclined to sell locally grown or locally designed food products. Many of our entrepreneurs in the food sector get their only chance by dealing with independents. The dominating oligopoly in Canada in food retail will only further its position and threaten the ability of independents to stay in the game. According to the Canadian Federation of Independent Grocers, the net profit for each store in Canada before taxes was 1.5% of sales. That percentage is close to what Loblaws is asking its suppliers to pay in addition to existing fees. As such, instead of seeing food prices drop, as some major grocers are claiming, we could see the opposite happening.
SOBEYS GROCERY STORE. PHOTO: SUPERMARKET NEWS
Before COVID-19, fewer than 40% of independent grocers were offering e-commerce. That percentage is likely to go up, but unlike Walmart, Metro, Loblaws, and potentially Sobeys, independents are on their own.
One solution being presented these days is the creation of a code of practice between suppliers and grocers.
Sobeys, our country’s no. 2 grocer, is supportive of such a code. Under such a code, a grocer would be required to deal with its suppliers fairly and lawfully. This is certainly subject to many interpretations, of course. But if such a code existed in Canada, Loblaws’ letter would not be compliant, at least in spirit. Both Quebec and British Columbia have shown some level of interest in implementing a type of code, as the United Kingdom and Australia have done, but discussions have been informal, at best. The federal government, on the other hand, which could certainly provide some leadership, could not be bothered to look at this complex issue.
But indeed, it is complicated and the risks in implementing such a code are real. An ill-designed code could entice grocers to go south and procure products from the U.S. or elsewhere, making the problem worse. But we have now reached a point where a solution is needed. Otherwise, we will eventually import many more products, hampering the agri-food sector’s ability to grow, moving forward.
Exterior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Iconic US-based retailer L.L.Bean has capped a year of expansion into the Canadian market with the recent opening of a location in CF Shops at Don Mills in Toronto.
It is the company’s fourth store in the country and third opening in 2020.
DON MILLS L.L. BEAN LOCATION MARKS FOURTH CANADIAN LOCATION FOR COMPANY
L.L.Bean says that it has had a long and meaningful relationship with Canadian customers for decades. The retailer launched its Canadian e-commerce site in the fall of 2018, followed by the introduction of a Canada-specific catalogue. Less than a year later, the first retail location opened its doors in Oakville Ontario in August 2019. L.L.Bean then opened stores in Ottawa (third week of August 2020) and Barrie (first week of July 2020). It also opened a small outlet store in Vaughan Mills this year.
“We are excited about the success of the three stores that have already opened in Ontario as well as the overall success L.L.Bean is having in Canada this year,” said Howie Kastner, President of Jaytex Group, L.L.Bean’s Canadian partner. “As L.L.Bean at the CF Shops at Don Mills opens its doors to our loyal Canadian customers, we are able to continue to expand this iconic brand and most importantly, encourage more people to get outside.
“This store is interesting because our typical square footage is between 13,000 and 15,000 square feet. This one is 8,500 square feet. It’s a little smaller than our normal footprint but we thought we really needed a store in Toronto. It’s the biggest market in Canada for the catalogue and online business. So we took this space which is a great location. We’re carrying everything we carry in the other stores, it’s just a smaller footprint.”
Kastner said, “We have been looking for more locations across the country. We’re looking in Vancouver, Victoria, Calgary, and in the Maritimes. We’ll probably open between three and five stores next year. We only open them if the deals are right and the centre is right and fits all our criteria. We’re really excited about our expansion in Canada and we’re going to keep growing and give the customer more options to be able to shop the brand.”
CANADIAN SALES HAVE GROWN FOR L.L. BEAN DESPITE COVID-19 PANDEMIC
Despite the pandemic, L.L.Bean sales in Canada have grown. E-commerce sales are up significantly compared to 2019 and the brand has seen a two-fold increase in first-time Canadian shoppers.
“Following the successful opening of the new Barrie and Ottawa locations in addition to the number of customers reconnecting with the outdoors this year, we are grateful to our Canadian customers for welcoming L.L. Bean to their communities. While we are opening our final store for the year, we look forward to what 2021 will bring for L.L.Bean in Canada,” said Greg Elder, vice president of retail and international of L.L.Bean.
INTERIOR IMAGES OF NEW DON MILLS L.L. BEAN STORE. PHOTOS: L.L. BEAN
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Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Interior of the new Don Mills L.L. Bean store. Photo: L.L. Bean
Kastner said the Canadian market has been great for L.L.Bean. The customers are loyal and thrilled to be able to shop in stores in Canada as opposed to having to go to the U.S. or having to shop online for outdoor gear, footwear, and apparel.
“The common message is thank you for coming to Canada. They’re just really happy.”
L.L.Bean, Inc. is a leading multi-channel merchant of quality outdoor gear and apparel. Founded in 1912 by Leon Leonwood Bean, the company began as a one-room operation selling a single product, the Maine Hunting Shoe. L.L.Bean is a family-owned Maine company, led by Executive Chairman, Shawn Gorman, the great grandson of Leon Leonwood Bean, and Stephen Smith, President and CEO. It currently operates 54 stores across the United States and 28 stores in Japan. The 220,000-square-foot L.L.Bean retail store campus in Freeport, ME, is open 24 hours a day, 365 days a year and welcomes more than three million visitors every year.
The Jaytex Group, founded in 1978 is a privately-owned company with a diverse portfolio of private label and lifestyle licensed brands in Canada. Partners include Kastner, Eric Grundy, and Leo Grunberger.
“The e-commerce business has actually been fantastic. Even with the addition of the retail stores here, the e-commerce business continues to grow. This year will probably be one of the best in Canada in the company’s history. Lots of new customers. It’s been great for the brand in Canada across all channels.” said Kastner.
ANDY (LEFT) AND SAM PROCHAZKA. PHOTO: GOODMORNING.COM
Andy and Sam Prochazka have been in business together since Grade 11 in Edmonton, selling candy out of their lockers when they saw the school had a monopoly on the snack market.
Today, the twin brothers, who are 40, are successful owners and operators of two very profitable online businesses in Canada that have been growing at a rapid pace.
Edmonton-based GoodMorning.com, where Sam is President and CEO, was started in 2009 as one of the first direct to consumer online mattress companies with about $40 million in sales in 2019.
Vancouver-based Article, where Andy is Co-founder and COO, was launched in 2013 and is a direct to consumer furniture brand grossing more than $100 million in annual revenue.
Both businesses have experienced further and significant growth since the pandemic hit in March. Both companies just made the Globe & Mail’s list of Canada’s Top Growing Companies, a ranking conducted by Report on Business magazine.
Canada’s Top Growing Companies ranks Canadian companies on three-year revenue growth. GoodMorning.com earned its spot with a three-year growth of 398 percent. Of the 400 companies selected, GoodMorning.com placed No. 123 and is one of only seven companies from Edmonton who made the list. Article earned its spot with a three-year growth of 460 percent. Of the 400 companies selected, Article placed No. 108.
“At GoodMorning.com it really started as what — I believed at that time — was soon to become an obsolete shopping experience. I walked into a mattress store, got a high-pressure commission-driven sales pitch justifying an extortionate price tag, was not provided any kind of risk-free experience, and walked away from that pretty sour. And I realized there had to be a better way — it was pretty obvious there was a better way — and so I put together this business model. Doing it online is a big part of a better way,” said Sam, who is also Co-Founder and Director at Article.
“We have a propensity to be slightly reclusive ourselves, I think. So this notion of being able to control your experience without the high-pressure sales environment, and the awkwardness of going into a shop and trying to imagine how those products would manifest in your own environment — without actually being in your own environment — is an uncomfortable experience,” added Andy, who is also Co-Founder and Director of GoodMorning.com. “The economics and the savings of not having to maintain those expensive showrooms, and the personnel, and all the inevitable complexities that a company does — we can take those costs and focus on the value chain, on better prices, better sourcing, more direct-from-factory to the customer’s house. We can just make that experience a lot better.”
The roots of their entrepreneurial spirit comes from their grandfather from Australia, but originally from the Czech Republic, who started an import business importing frozen fish from Europe. Frozen food at the time — right after the Second World War — was a new thing in Australia and it became successful. So the twins grew up with that impression left by their grandfather.
“In high school, Andy and I opened our first company, selling candy bars from our lockers. Pop and chips. That was surprisingly successful actually. I think after that we were a bit hooked to it. It just seemed like there was a lot of opportunity to contribute, offer value, and get into that value chain in society,” said Sam.
“There’s something about competition and finding these opportunities out there that exist everywhere. There’s always opportunity and there’s always areas that are being served sub-optimally in the market. It’s innate, I think, seeking those opportunities out and answering them. Kind of comforting actually, I think.”
The brothers went to Old Strathcona High School in Edmonton and then both received degrees in computer engineering from the University of Alberta.
These are indeed tough economic times for most entrepreneurs in the country as the COVID-19 pandemic continues to take an economic toll everywhere. How do they as entrepreneurs get through these times?
“As an entrepreneur, in my experience, you’re always pushing into uncertainty. We’re in a state of particularly high uncertainty presently because of the macro events. The real key here — and I wish I could tell my 20 years-ago-self more vehemently that if you focus on your customer — and you make sure you actually listen to your customer and do away with your own internal voices as to what you think the customer wants — and deliver the value that they’re asking for, that can be your North Star. Then you’ll make it through these kinds of times,” explained Andy.
“I have to agree with Andy,” said Sam. “The only other thing I will add to it is we find ourselves in these online businesses so we’re in many respects very fortunate. But there are a lot of businesses out there that are not as fortunate as we are. We are still able to sell during this time and supply our customers with what they need. That’s certainly working in our favour. And I think that this period of uncertainty has largely accelerated the adoption of the types of businesses that we’re in. In many respects, we will benefit to some degree out of this. But the good thing, I think, in these periods of adversity and with the way that the free market works, is that there will be opportunities that come out of this that we can’t imagine right now. And they will evolve over time. And so I’m excited to see what those are.”
