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Uniqlo Opens Massive Downtown Montreal Flagship as it Enters the Quebec Market [Photos]

EXTERIOR OF NEW UNIQLO STORE IN THE OVERHAULED MONTREAL EATON CENTRE. PHOTO: MAXIME FRECHETTE

Japanese fashion retailer Uniqlo has opened its first Montreal store, and it’s impressive. It is the largest Uniqlo store in Canada and features several firsts in this country. The store is hoped to give an injection into downtown Montreal’s retail which has struggled due to the COVID-19 pandemic as well as because of extensive construction to revitalize Ste-Catherine Street West.

Located at the recently overhauled Montreal Eaton Centre, the Uniqlo flagship spans more than 40,000 square feet over two levels with about 32,000 square feet dedicated to retail space. The store also features a children’s reading area with curated books from local Montreal bookstores and a collaborative pop-up space which will initially feature a flower shop display where customers can shop from Montreal floral design studio, Bell Jar Botanicals, until November 15th.

MONTREAL’S UNIQLO STORE IS FIRST CANADIAN STORE WITH STREET-FACING ENTRANCE

It is the first Uniqlo store in Canada to feature a street-facing entrance, with the store’s facade facing both onto Ste-Catherine Street as well as Boulevard Robert-Bourassa. In total, the store has five access points — two from the street, one from the main level of the Montreal Eaton Centre, one on the second, and an entrance from within the Time Out food hall.

The Montreal Uniqlo store features an expansive range of apparel for men, women, and children. The store also features a small selection of home goods including bedding which isn’t available at other Uniqlo stores in Canada. The Montreal store is the second in Canada to feature at UT department featuring graphic printed t-shirts that often sell-out quickly.

The store also has something of an eco-focus including RE.UNIQLO, an initiative to recycle used garments and redistribute to those in need.

“We are excited to welcome Montrealers to our new store, to not only enjoy our high quality and functional LifeWear apparel, but to also experience community collaborated areas that are exclusive to this UNIQLO store and not in any of our other stores in Canada,” said Yuichiro Kaneko, CEO of UNIQLO Canada. “With a continuous demand for UNIQLO from our customers, we are delighted to make LifeWear more accessible to Canadians as we continue adapting to new lifestyles.”

The LifeWear line is described as meeting “the needs of everyone’s daily lifestyles to make their everyday life better and more comfortable. Whether that is to protect you against a cold winter wind, keep you dry on a rainy day or to look smart for an important occasion, LifeWear is simple, high-quality, everyday clothing with a practical sense of beauty that is always evolving. LifeWear is available in a variety of colours and styles for people of all ages.”

Because of the COVID-19 pandemic Uniqlo has implemented health and safety protection measures including physical distancing while shopping, frequent cleaning of high-traffic areas in front and back of house, hand-sanitizing stations which are located at the entrance of the store and at cash registers, and acrylic barriers at checkout counters and fitting room counters. All staff have their temperatures taken daily and are required to wear personal protective equipment. All customers are also required to wear a face coverings and to have temperatures taken before entering the store as well — this now appears to be a practice at all Uniqlo stores in Canada.

NEW UNIQLO STORE SET TO INJECT SOME LIFE INTO DOWNTOWN MONTREAL AFTER COVID-19 PANDEMIC

It is hoped that Uniqlo will give a needed injection to downtown Montreal, which has seen retail sales plummet amid the pandemic as well as construction to Ste-Catherine Street. Driving downtown and parking is said to be challenging and some businesses are saying that business is down as much as 90%. A report by the Urban Development Institute of Quebec on Thursday of last week noted that 26% of downtown Montreal’s businesses have closed temporarily or permanently, and that number could grow. Montreal is planning on offering free weekend parking downtown for the rest of the year to bring shoppers back at a critical time, especially given that construction in downtown Montreal is expected to be ongoing for years.

EXTERIOR OF NEW UNIQLO STORE IN THE OVERHAULED MONTREAL EATON CENTRE. PHOTO: MAXIME FRECHETTE

The Montreal Eaton Centre has seen an overhaul that includes a new Time Out Market food hall as well as new Samsung, Sephora, Pandora, and Ernest storefronts among others. Browns Shoes will open a two-level B2 flagship at Montreal Eaton Centre next year. The first downtown Decathlon store in Canada opened at Montreal Eaton Centre in the fall of 2019.

Uniqlo has been expanding its Canadian operations since its first store opened almost four years ago in Toronto. Jeff Berkowitz of Aurora Realty Consultants represents Uniqlo as broker in Canada and he negotiated all of Uniqlo’s store leases in Canada.

In September of 2016, Uniqlo’s first store in Canada opened at CF Toronto Eaton Centre in Toronto. The store spans nearly 33,000 square feet over two floors. Last year the store added a 4,500-square-foot mezzanine space to house a first-in-Canada ’UT’ shop-in-store to showcase the retailer’s graphic t-shirt collection.

A second Uniqlo store opened in October of 2016 at Toronto’s Yorkdale Shopping Centre, also considered to be a flagship store in terms of size and presence with more than 30,000 square feet over two levels. Following that opening, Uniqlo began to expand further into the Greater Toronto Area as well as into the Vancouver market for the first time.

The Greater Toronto area is now home to Uniqlo stores in Oshawa Centre east of Toronto, Upper Canada Mall in Newmarket, CF Markville in Markham, Square One in Mississauga, Vaughan Mills near Toronto. Last fall a pop-up opened at First Canadian Place in Toronto’s Financial District which has been decimated due to the COVID-19 pandemic.

In British Columbia, Uniqlo’s first store  opened in October of 2017 at Metropolis at Metrotown in Burnaby, in a 20,630-square-foot, two-level space. That was followed by the opening of a 17,900-square-foot location at Guildford Town Centre in Surrey in March of 2018, and then stores at CF Richmond Centre in Richmond and Coquitlam Centre in Coquitlam.

Uniqlo is noticeably absent from downtown Vancouver and a location is expected to be announced when a lease is finalized. Some have speculated that Uniqlo could replace the Victoria’s Secret flagship store at the north-east corner of Robson and Burrard Streets.

Uniqlo expanded beyond the Toronto and Vancouver markets in the fall of 2019 when it opened its first store in Alberta at West Edmonton Mall in Edmonton. More stores in the Edmonton and Calgary markets are expected with Calgary’s CF Chinook Centre expected to be a prime target, among others.

The Montreal area is Uniqlo’s fourth major market to see Canadian stores which could eventually number in the dozens if all goes as planned. Sources say that the next location for Uniqlo in Quebec will be at the CF Carrefour Laval shopping centre near Montreal.

Quebec City’s 1st Suburban Mall Marks 60 Years with Plans for Mixed-Use Development

ENTRANCE TO LES GALERIES DE LA CANARDIERE. PHOTO: ECONO-MALLS

Les Galeries de la Canardière, considered to be Quebec City’s first shopping centre, celebrated its 60th anniversary on October 1, and it has big plans for the future.

Natacha Menard, Director of Leasing for the shopping centre, which is owned by a limited partnership and managed by Econo-Malls, said it has embarked on a mixed-use redevelopment with the first phase of the project being a 126-unit residential rental building with some commercial space on the first floor. That project will begin this coming spring.

LES GALERIES DE LA CANARDIERE IS LOCATED IN AN AREA CONDUCIVE FOR A MIXED-USE DEVELOPMENT

Menard said Econo-Malls has been working with a residential developer on the redevelopment project for Les Galeries de la Canardiere, adding that the shopping centre is located in an area conducive to mixed-use development as the area was rezoned to high density by the City.

“We now see all around the site, many office buildings and housing units that were constructed in recent years. These developments and the City’s vision for the area will result in significant pedestrian traffic to the centre. Mixed-use developments are the way of the future. It’s a place where people can live, work, and play, all in one location,” said Menard.

“That’s what the City wants. Lots of density in that area.”

CLICK FOR INTERACTIVE MAP OF LES GALERIES DE LA CANARDIÈRE

Les Galeries de la Canardiere located in the heart of the Ecoquartier D’Estimauville is home to many retailers, restaurants, recreational, and other services catering to the needs of its community. These include, A&W, Subway, Pizza Charest, Lunnetterie Visque, rock climbing centre Delire, Econofitness, Dollarama, Bijouterie Suisse, Pharmacy Lavoie, and many more. The shopping centre is 178,560 square feet.

Menard said the pharmacy is currently undergoing an interior and exterior renovation.

“Right now we’re trying to market for lease the spaces that are available. We’re trying to market it towards more services given that the area is very residentially dense. So we feel that services would be essential for this community,” she said.

“We’re hoping to attract some nationals here and we’re hoping to attract people that want to do services. All kinds of services — medical clinics would really be good here. We’re a community mall. We service the local community.”

According to the shopping centre’s website, the Galeries de la Canardière are historically the first shopping centre in Quebec City.

“The urban development of the years 1910-1920 led to the construction of houses in what would become the parish of Saint-Pascal Bylon and the constitution of Giffard as a municipality. However, the subdivision of the land located opposite the Saint-Michel-Archange hospital — planned as early as 1913 — is slow. In the 1950s, the growth of the surrounding neighbourhoods made this central site a favourable place for services and shops. It must be said that the site is vacant and located at the centre of a large and growing population basin,” it said.

“Also, when in 1956 the municipal administration changed the zoning of the place to allow businesses and the establishment of a “shopping centre”, the Association des merchants retailers of the district of Quebec saw a evil eye this new competition. Although the new zoning is adopted quickly, the project takes time to get started. Finally, in 1959, the building permit for a shopping centre worth $ 1.5 million was granted and work began in the winter of 1960.

“In May 1960, an important part of the structure of Des Galeries de la Canardière was erected. This is the first shopping centre in Quebec City and the second in the region, Place Sainte-Foy which opened in 1958. On September 29, 1960, the shops at the Canardière Shopping Centre , as it was then called, welcome their first customers. Inspired by what is done in the United States, its functional and open architecture allows quick and direct access to the businesses that are part of it.”

Le Chateau Shutting Operations After CCAA Filing

Le Chateau storefront at Square One Shopping Centre - Photo by Square One

Another Canadian retailer will be shutting down this year following the COVID-19 pandemic store closures in the spring. Montreal-based Le Chateau will shut its operations which includes 123 storefronts in Canada as well as an e-commerce site. 

The 60 year old retailer says that it spent much of the pandemic trying to refinance or sell the business which was ultimately unsuccessful. “Its already evident impact on consumer demand for Le Chateau’s holiday party and occasion wear, which represents the core of our offering, has diminished Le Chateau’s ability to pursue its activities,” the company said.

“Regrettably, these circumstances leave the company with no option other than to commence the liquidation process.” 

LE CHÂTEAU. SINCE 1959. PHOTO: LE CHÂTEAU (ABOUT US)

Le Chateau’s application for protection from its creditors under the Companies’ Creditors Arrangement Act (CCAA) was being heard by a Quebec court on Friday.

The retailer said in a statement that the pandemic has had an “evident impact on consumer demand for Le Château’s holiday party and occasion wear, which represents the core of our offering [and] has diminished Le Château’s ability to pursue its activities.”

While Le Chateau liquidates its 123 stores, the company will remain fully operational. The eventual closure will result in the loss of about 1400 jobs with 900 of those in the stores and an additional 500 positions at Le Chateau’s head office. 

LE CHÂTEAU TEAM MEMBERS. PHOTO: LE CHÂTEAU WEBSITE (LE CHÂTEAU CULTURE PAGE)

“We regret the impact this will have on our people and can assure you that we explored all options available to us prior to taking this difficult decision,” the company said.

Le Chateau was scheduled to have its annual general meeting on Thursday and it was cancelled two days prior without explanation beyond saying that the company “will provide further updates in due course”. Industry insiders this week immediately speculated that a filing would follow.

Over the three-month period up until July 25, Le Château only sold $14.7 million in its stores and online — down almost $50 million from the same time last year. As of July 2020, Le Chateau says it had about $118 million in assets and $201 million worth of liabilities.

Gordon Brothers and Merchant Retail Solutions are to be appointed as consultants to implement the liquidation. PricewaterhouseCooper Inc. will become its monitor in the CCAA proceedings. If the application is granted, Le Chateau will obtain interim financing from Wells Fargo Canada to maintain operations for the short-term during liquidation.

Le Chateau’s exit from malls will create further headaches for landlords who are already grappling with vacancies following other store closures. A research document provided to Retail Insider shows that Le Chateau had more than 700,000 square feet of retail space in Canada. The largest Le Chateau location is at the CrossIron Mills shopping centre near Calgary, spanning 8,842 square feet. The top selling unit was said to have been at West Edmonton Mall prior to the pandemic, with sales surpassing $1,000 per square foot for the 5,680 square foot space in the mall’s ‘Phase 3’.

This week we also reported that Calgary-based swimwear brand Swimco had shut its 25 Canadian stores after an attempted restructuring in the summer. About 30 other retail chains in Canada, as well as countless independent retailers have also filed for creditor protection and in some cases have shut down entirely. Experts expect more retailers to file for bankruptcy protection in the coming weeks and months as retail spending in some segments slow amid a second wave of the COVID-19 pandemic. In early 2021 it is expected that more stores and other businesses in Canada will close than at any time in history, including some household names looking to rightsize operations.

Le Chateau was founded in 1959 in Montreal by Herschel Segal as a menswear store. In 1962 womenswear was added including European fashions from places such as Carnaby Street in London. It was the first to introduce bell bottoms to Canada and in its early years was considered to be a trendsetter. The company’s IPO on the Toronto Stock Exchange was in 1983. The company had closed about half of its stores since 2015. Last quarter saw the company turn its first profit in about 13 years. Last year we reported that Le Chateau had planned to expand into the United States through a new e-commerce site. 

Herschel Segal’s cousin David Segal founded David’s Tea which this year filed for creditor protection and closed all but 18 stores. Herschel’s daughter Sarah Segal is the founder of Squish Candy which has also restructured with only a handful of locations remaining.

JLL Releases Mid-Year Report on Canadian Retail Highlighting Challenges

OMNICHANNEL RETAIL

The Canadian retail market has softened, with availability for space rising and rents trending down as the COVID-19 pandemic has driven a surge in food and home items, postponed consumption of non-essentials, and limited operations of restaurants, gyms, and movie theatres, according to the Mid-Year 2020 retail report by commercial real estate firm JLL.

Tim Sanderson, Executive Vice President & National Lead, Retail, JLL Canada, said 2020 has been a year like no other.

COVID HAS DRAMATICALLY DISRUPTED THE RETAIL INDUSTRY WHICH REPRESENTS 1/3 OF CANADIAN ECONOMY

“The retail industry, which represents almost a third of the Canadian economy and 11 percent of the labour force, has been disrupted dramatically. We’ve experienced sudden shutdowns at a scale that have never happened before, leaving the industry struggling to cope. As undesirable as this sounds, retail will be faced with severe challenges getting back to the growth seen in previous years. This calls for prompt action in a bid to aid redirection, restoration and positive advancement,” he said.

The pandemic had a devastating impact particularly on enclosed malls. Many stores never reopened and those that did are now struggling to drive traffic back under restricted hours. It begs the question of whether the situation will eventually fix itself or mall owners will be forced to make further concessions and investments in an attempt to get their assets back on track.

“Some may find it shocking that, as we publish this report, consumer spending is right back to where it was last year. However, where this money has been spent is vastly different. Shoppers have flocked to consumer staples and home goods, leaving apparel behind. As grocers and restaurants grapple with COVID-related costs, food has become more expensive and now encompasses a larger share of home spending. In this scenario, it shouldn’t come as a surprise that apparel retail chains across North America have announced thousands of store closings, ” said Sanderson.

RETAILS THAT HAVE INVESTED IN OMNICHANNEL STRATEGIES WERE BETTER PREPARED FOR COVID-19

Retailers who had taken the time to invest in omnichannel strategies have been better prepared for the pandemic and have continued to make investments over the past few months.

However, omnichannel has had its fair share of limitations as retailers scrambled to fulfill online orders, particularly when demand surged for certain products. In turn, many small retailers are now catching up and Shopify saw a spike in interest in e-commerce, thus becoming the most valuable company in Canada.

The JLL report states that Canada’s response to the pandemic has put its retail industry at a slight advantage. As events continue to unfold, both landlords and retailers have had time to come up with plans to deal with further headwinds. As the second wave of the pandemic descends upon us, the hope is not to see the same level of lockdown as in March and April. Undoubtedly, the holiday shopping season could drive agglomerations, and it’s likely that both retailers and shoppers will be looking to move up the season to dilute crowds.

“In times of change like this, it’s important to rethink and reposition businesses and offers to meet shopper’s new needs. It will take time and patience to get to where the retail industry needs to be, but we’re optimistic that retail will emerge out of the COVID-19 era with a bigger emphasis on omnichannel, convenience, and customer satisfaction”, added Sanderson.

This time of year is traditionally a make or break time for many retailers.

“Since April we’ve been working with many of our retailers to help them survive. Our mall group alone has looked at 1,200 leases to try and help those retailers with abatements and deferrals or early lease renewals at more favourable terms – anything to help them stay alive.

There’s going to be a lot of retailers that are hanging on for Christmas and afterwards, they’re not going to make it. It’s unfortunate.”

Sanderson suggests retailers change the way they do business. The increase in the amount of online purchases just in the last six months is incredible.

Bricks and mortar retailers should consider making the transaction experience inside a physical store as seamless and as painless for the customer as it is to shop online.

Sanderson said part of the problem in the retail industry is that a majority of the properties are being driven by the value of the asset. How much is the shopping centre worth? Rents have been driven up while tenants are over-extended. To be in a shopping centre and pay high rents, a retailer is there because they believe the shopping centre is going to attract significant traffic that will in turn benefit them.

“For the most part, the enclosed regional malls around the world, not just in Canada, foot traffic is down. To get traffic back, landlords need to introduce new concepts that are going to bring people to the shopping centre. They’ve got to attract these users whether they be entertainment, whether they be more food and beverage. They’ve got to increase dwell time and that will allow people to understand that there is a benefit to being in a mall,” said Sanderson.

“I think what’s going to happen over the next 12 months is there’s going to be a lot of cost-benefit analysis work done on behalf of the landlords to say okay, what is my highest and best use for an empty box? The one good thing is the Canadian retail real estate landscape is not overbuilt. We don’t have as many centres with a ton of vacancy. And we don’t build centres like they do in the United States. You can drive through Texas and there’s one gigantic mall at one interchange and three miles down the road at the next interchange there’s another one. You don’t see that here.”

For more information, consult JLL Canada’s Retail Mid-Year Outlook 2020

The Future Outlook of Canadian Retail E-Commerce

WOMAN ONLINE SHOPPING ON LAPTOP AND SMARTPHONE

By Devin Partida

Canadian retailers have faced a period of unprecedented change amid the COVID-19 pandemic. Most notably, retail e-commerce exploded in early 2020 as lockdowns limited the availability of brick-and-mortar stores. Now, as the year nears its end, Canadian e-commerce has slowed but isn’t stopping.

In the early days of the pandemic, e-commerce seemed like an unstoppable force. Between February and May alone, online sales almost doubled while in-person shopping continued to fall. Since then, the market has started to rebalance as lockdown restrictions have eased.

E-Commerce Won’t Replace In-Person Retail

E-commerce’s share of total retail sales more than doubled between 2019 and early 2020. To some, this unprecedented rise indicated the beginning of an inevitable shift — online stores surpassing brick-and-mortar alternatives. As the nation has continued to get a better handle on the pandemic, that hasn’t been the case.

Since May, Canadian retail trade has grown, recovering from its slump in April. Overall retail sales are nearing pre-pandemic levels, and e-commerce has played a diminishing role in that recovery. While retail e-commerce sales are still higher than 2019 levels, they’ve declined since their May peak.

Now that in-store shopping is more accessible, consumers have switched back to it. It seems that customers still prefer brick-and-mortar stores, even if e-commerce is more widely available than before. The early surge in online sales was a matter of necessity rather than consumer preference.

Retail E-Commerce Will Keep Growing, But Slower

While retail e-commerce hasn’t reached the dizzying heights some expected, it will continue to grow. Canadian retailers are now keenly aware of the advantage that online channels present, especially in an emergency. Retailers will sustain their e-commerce sites, and customers, now accustomed to online shopping, will keep using them.

Experts predict online sales to keep growing each year but at a diminished rate. According to one survey, Canadian e-commerce sales growth will fall to 7.7% in 2021 and keep declining through 2024. The astronomical e-commerce growth of mid-2020 isn’t indicative of the industry’s future.

While e-commerce’s growth rate will eventually decline, it’ll stay positive for the foreseeable future. The COVID-19 pandemic has proved how helpful a resource online shopping is for both retailers and consumers. As time goes on, e-commerce will play an increasingly prominent role in Canadian retail, but it won’t skyrocket.

E-Commerce Itself Will Continue Evolving

As e-commerce continues to grow, it’s changing along with retail itself. Now that online stores have become an industry standard, it’s no longer enough to merely have an e-commerce site. Retailers must optimize their online channels to stay competitive, just as they do with brick-and-mortar stores.

While generic packaging is the standard now, 52% of online shoppers who receive branded packaging will become return customers. Retailers will likely shift toward custom features like branded packaging or unique website design. Online channels will start reflecting their brick-and-mortar counterparts as it becomes harder to stand out.

Similarly, mobile retail sales are also growing, so more retailers will likely optimize for mobile devices. In the future, e-commerce sites could also feature more varied payment options, even accepting cryptocurrency. Flexibility has been the primary benefit of e-commerce amid COVID-19, so e-retailers will pursue it in their online channels.

Despite Its Decline, Online Shopping Is Here to Stay

Canadian retail e-commerce will not replace brick-and-mortar stores and won’t come close anytime soon. The meteoric rise of online shopping Canada saw earlier this year won’t continue, but e-commerce will keep growing. Online retail is more prominent than ever, and it’s not going away.

E-commerce will continue to become a more crucial part of retail over the next few years. The pandemic has favoured retailers with a strong online presence, and the industry has learned from that experience. As e-commerce continues to grow and evolve, it will help sustain retail for years to come.

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

Canadian Home Decor Retailer ‘Bouclair’ Expands New Concept Store Model Following Restructuring

EXTERIOR OF NEW BOUCLAIR CONCEPT STORE. PHOTO: BOUCLAIR

After a restructuring process that included the closure of about a third of its stores, Bouclair, a leading destination for home decor in Canada, has embarked on an ambitious initiative to launch new concept stores in the chain.

Cesar Morales, Marketing Operations Manager of Bouclair, said the new Bouclair concept was first launched last year with the openings of the Brossard, Boucherville, Boisbriand, Mascouche, and St-Jérôme stores. “Bouclair continues to grow and plans to open more new concept stores in 2021,” he added.

“When you arrive you feel at home,” he said. “We basically have a multi-sensorial environment where you feel cozy and welcome by the fragrance that we have. We have a curated playlist. All the products are placed in an easier way to shop for people and with our store advisors that will help you find the right solutions for you.”

“We have images by collection showing you how to decorate so you are also learning at the same time that you are shopping through the different images and the different setups that we have there.”

Sid Lee Architecture partnered with Bouclair to design the prototype and subsequent stores.

BOUCLAIR PLANS TO ADD MORE CONCEPT STORES IN 2021

The company currently has 55 stores open in Canada in Alberta, Manitoba, Quebec, Ontario, and New Brunswick. The first store opened in 1970 in Montreal.

“Bouclair is basically a home furnishing retailer that offers coordinated decor to customers. We are their interior designer for them with complete decor solutions they can apply to their home,” said Morales.

Chicoutimi and Barrie, as well Mega Centre Sainte Foy and Les Galeries de la Capitale, both located in Quebec City, will all undergo a transformation of their current brick-and-mortar concept to one that offers a multi-faceted experience where customers can easily imagine recreating the looks in their own home, making it more enjoyable to shop for home decor pieces.

Morales said customers will enjoy the new Bouclair atmosphere and be inspired by decor accents displayed in a way that showcases each collection’s style, furniture displays full of arrangement ideas, rich visual tools that express the vibe of each collection, and decor experts available to help with any decor project. Each store has been revamped with the black store logo and storefront, along with natural woods mixed with greenery, adding to the brand’s new, sleek and trendy image.

“We are also going to be renovating 10 more stores next year,” he said.

Morales said through its restructuring process Bouclair kept the company’s stronger and best locations.

“We have also been growing the ecommerce to support the markets where we don’t have stores. For us, it’s very important that our customers are still able to order our products. We have seen a tremendous increase in demand where people are still in many markets that we don’t have stores and are ordering now online,” he said.

“It’s actually basically working very well for us. The online business is something that we’re growing. We have every week a new decor to propose to our customers on our home page so we can inspire them. We have videos where we basically show them how to dress their windows, decorate and we are also trying to have new gadgets for people to visualize the decor on their houses.”

Calgary Teens Launch Unique Accessory Business with Charitable Component

TAZA BEADED BRACELETS. PHOTO: TAZA

It was the summer of 2017 when Taza Collections was created with a mission and goal to create a better world for those in need.

Through the art of jewelry, two young entrepreneurs Tahir and Zakiya Natha started in Calgary what would today be known as Taza Collections. Siblings Tahir was 12 and Zakiya was 10 when their online business began.

“I personally have always had an entrepreneurial mindset,” said Tahir. “My parents from a young age decided you know what why don’t you guys try starting something and they kind of knew someone in the wholesale bead industry. It was an easy way to start something, gain some experience, gain some knowledge around it.

“So we started this bracelet business. It was surrounded by the fact that maybe this was something we can create for ourselves. So we’ve been selling bracelets and recently we started selling clothes on there to support the Black Lives Matter movement.

“A lot of our focus is charitable based. We’ve partnered with the Aga Khan Foundation at one point. We’ve partnered with the Ronald McDonald House. We’ve partnered with the Calgary Women’s Emergency Shelter. And all in an effort to just give back to the community. That was one of the main points as to why we started this.”

ALL TAZA COLLECTIONS PRODUCTS ARE SOURCED IN CANADA

Tahir said all the products sold on the ecommerce site are sourced in Canada.

“It takes time to grow and I think slowly we’re seeing that growth pattern upwards a little bit. It was definitely a slow start but now I think we’ve built a little bit of a brand reputation within our own customer base and that’s where predominantly we see people coming from,” he said.

“But we’ve done a lot of efforts in terms of marketing and trying to get a large social media presence. So we’re seeing a slight upwards trend for sure. Just like anything it takes time.”

TAZA BEADED BRACELETS. PHOTO: TAZA

The retailer’s target audience is shoppers who focus on spending local. The company therefore has a big push for local and made in Canada products.

“We try to provide something that feels like it could be in the luxury market but we try to bring it at an affordable price. So it’s kind of more available to all. That’s the model. Luxury made affordable,” said Tahir.

“We have two large demographics which is the millennial age group and then you have the 65 plus age group.”

Going forward, the siblings would like to continue to expand the venture into different areas. Right now they are looking at ways to expand the concept and build its focus and perhaps look at a larger charitable component to it.

Would they consider a physical store location?

“Definitely a thought we’ve had and potentially in the future. I think right now the largest focus is growing the ecommerce side of things and seeing how far we can push that,” said Tahir. “And then maybe down the line in a couple of years, considering maybe not a permanent but even a pop-up shop in different places contributing to that.”

Tahir and his sister run the business but their parents are there to support them when needed.

They don’t have official titles but Tahir is like the CEO of the business while Zakiya supports on the design side of things.

Tahir is currently in Grade 11 and Zakiya is in Grade 9. They are doing online school this year through the Vista Virtual School. Tahir also works at a software development firm part-time.

Lightspeed Unlocks New Revenue Stream for North American Retailers with the Launch of Subscriptions

LIGHTSPEED SUBSCRIPTIONS

Global commerce platform Lightspeed has announced the initial availability of Lightspeed Subscriptions, a new module that allows local retailers using Lightspeed Payments in North America to collect recurring revenue seamlessly through their POS in time for the holidays. Gaining a foothold within the thriving health and wellness vertical, Lightspeed introduces the new feature to provide retailers with an innovative tactic to build customer loyalty and future-proof their business.

Nearly half of consumers will fundamentally change the way they shop as a result of COVID-19, with 34 percent indicating they would pay more for local products. Coupled with an increase in demand for subscription boxes and services driven by the global pandemic, Lightspeed Subscriptions equips independent businesses with a vital sales strategy as consumers use their holiday dollars to shop local and support their communities this gift-giving season.

Lightspeed Subscriptions supports a multitude of complex SMBs at the core of Lightspeed’s retail customer base. For example, retailers can sell subscriptions that will regularly replenish a buyer’s favourite products or surprise customers with new specialty items every month. Other businesses like gyms or spas can offer subscriptions that grant consumers access to regular services or exclusive rewards.

“The introduction of Lightspeed Subscriptions further adds to our comprehensive toolbox of solutions for complex retailers,” said Dax Dasilva, Founder and CEO of Lightspeed. “We’re approaching a fundamentally different 2020 holiday sales season, and local retailers need to gear up for a dramatic shift in shopping habits. With this in mind, we’re equipping merchants with an exciting new service that promises a source of uninterrupted revenue and will continue to fuel their businesses into the New Year.”

LIGHTSPEED SUBSCRIPTIONS

Key Advantages of Lightspeed Subscriptions for Local Retailers:

  • Provides Stable Revenue: Recurring payments guarantees income at regular intervals, which merchants can depend on during unpredictable times
  • Builds a Loyal Customer Base: Convenient and personalized product/service offerings boost brand loyalty and customer retention
  • Integrates Directly into POS: As an add-on to Lightspeed Retail, ensures simple and unified set-up within the existing POS platform
  • Ensures Secure, Automated Payments: Credit card information is securely stored for future automatic Subscription sales with customer consent (PCI Compliant). Failed payments are also automatically reprocessed and expired cards will continue to work, even as the bank replaces the physical card to ensure minimal interruption for the customer

This latest solution follows several other recent Lightspeed innovations for retailers such as Mobile Tap, Digital Wallet, and Analytics Core. Following this initial launch, Lightspeed also will be developing plans to roll out Lightspeed Subscriptions for eCommerce.

Partner content. To work with Retail Insider, email: craig@retail-insider.com

Canadian Retailers Lack Staff at Critical Time: Expert

PHOTO: CADILLAC FAIRVIEW

By Suzanne Sears

Retailers have been in a quandary for several months, not knowing if they should hire during the COVID-19 pandemic. The question many are asking is: what if everything shuts down again?

According to the RBC Consumer Spending Report published on October 5th, 2020 there seems to be far less to worry about than the headlines might indicate.

Overall, there has been next to no signs that consumers are worried about the second wave of COVID-19. FACT: Consumer spending was up at least 5% by mid-September. This figure is identical to how consumers were spending in January 2020. While spending certainly tanked in April of this year, that trend was gone by the end of June with no signs of abating so far.

CLOTHING SALES SHOWING STRONGEST REVIVAL AMID COVID-19 PANDEMIC

Surprisingly, of all the retail categories to return to former levels, clothing sales showed the strongest revival. Are we amazed? Yes clothing, jewellery, and gift sales are actually up 1.5% over last years results.

Yet at the same time, most retailers are reporting they have only returned to 40% of their previous staffing levels.

The question becomes: How can sales be up and staffing levels are drastically down? Were retailers really overstaffed by 60% last year? Or is something else going on?

Most retailers only brought back their highest performers from layoff. The old 20/80 rule might be rewritten as the 40/60 rule. Meaning, that a small percentage of your staff generate the most volume. The rest of the staff is “dragged along” because no one can be bothered to retrain or replace them.

Did retailers suddenly get that much more efficient? Did training levels increase this drastically during lockdown? Perhaps.

If this theory is true, that you only need the best staff and not the rest, what steps do retailers need to take to improve the entire talent pool?

An important question to ask: If sales continue to rise, do you really have enough staff to generate the maximum sales? (The principal being it takes 6 staff on the sales floor to generate $1 million in clothing sales).

Retailers, are you working your best players to death, loading them with so much work that they will likely leave you? Are you afraid to replace your furloughed weaker staff with higher talent for fear of looking like mean guys?

There are two sides to the story.

From the retail talent pool, they will tell you they feel like they are working in sweat shops, they are so understaffed. They are burning out quickly and don’t feel the holiday selling season will be maximized at all. Many are planning their exit from retail altogether. Working in retail is no longer “fun”. The drudgery of crowd control, infection control, high strung customers, and lack of inventory is wearing even seasoned retailers.

From the executive suite, which is completely baffled as to why sales are up at all, massive skepticism leads it to believe the bottom will fall out any day and so it’s best to keep staffing levels low. After all, isn’t online shopping the way retail is headed? Not exactly.

Nearly to the minute all physical stores reopened following COVID-19 shutdowns, online sales began to decline and physical brick and mortar stores began to rebound. The major problem is not the lack of shoppers so much when compared to the lack of seasonal inventory. Orders got cancelled. Nearly every store at September 1 had only 25% of their prime selling space stocked with current goods.

The daily headlines of retail chains filing for protection has most retailers terrified to do much “growth” planning.

However, if they followed their own sales reports and ignored the external drama, their decisions would be very different. They would be staffing up for a likely strong holiday shopping season. The evidence is clear. Consumers want to shop.

HIRE, AND HIRE FAST

This is the time retailers should be culling their weakest performers, retraining the salvageable, and actively seeking to hire new top performers.

Remember, retail was short 10% of optimum staffing levels before COVID-19 hit. Now it is worse as staff are moving away from retail careers.

Either retailers believe the evidence from their own data and accounting, which indicates sales are consistent and growing, or they follow disaster headlines and plan to shrink. Few-to-no retailers have ever shrunk their way to success.

Hire, and hire fast. Grab this spending surge while you can.

My firm, Best Retail Careers International, launched a recruit-by-membership program to help the industry retain the best talent. For luxury retailers, we also launched Luxury Careers Canada which is working with the top brands and retailers, and features a job board with available positions. We have access to over 50,000 potential candidates directly and even more through word-of-mouth.

Suzanne Sears is the President of Best Retail Careers International and Luxury Careers Canada.

Five Key Considerations for American Retailers Opening in Canada

PEDESTRIANS CROSSING DOWNTOWN TORONTO STREET

By Anthony Panacci and Emily La Mantia, Filion Wakely Thorup Angeletti LLP

A great deal of planning is required before opening a retail location in Canada. From an employment perspective, retailers need to consider not only the applicable laws, but also local best practices and workplace norms. This article provides American retailers with five key issues to consider when planning to expand into Canada.

Workplace Laws Vary Between Provinces

Each province in Canada has its own unique set of workplace laws. For example, each province has different laws regarding minimum wage, public holiday, work schedules, and overtime. While there are similarities from province to province, retailers need to be aware of the legal requirements in the specific province where they plan to operate. Retailers also need to tailor or redraft policies to comply with the laws in all of the provinces where stores will be located.

“Employment at-Will” Does not Exist in Canada

In the United States, many states permit “at-will” employment, meaning that both the employer and employee can end the employment relationship at any time without advanced notice.

“At-will” employment is not permitted in Canada. Absent exceptional circumstances, such as wilful misconduct, employees are generally entitled to notice (or pay in lieu), before their employment is terminated. The minimum amount of notice varies from province to province based on the laws of the particular jurisdiction.

However, employees can be entitled to much more than the minimum amount of notice if their employment agreement does not expressly restrict their entitlement to the statutory amount. Without an enforceable limiting contract, employees will generally be entitled to what is known as “common law reasonable notice”. Common law notice is often considerably greater than the minimum notice required under employment standards legislation.

For this reason, we strongly recommend that retailers use written employment agreements that limit employees’ termination entitlements. In our experience, retailers can save a significant amount in termination costs and legal fees by properly implementing employment agreements before employees begin work. In some cases, an enforceable employment agreement can mean the difference between owing an employee 8 weeks of notice or 24 months of notice!

Having clear, articulate, and consistently enforced workplace policies is generally seen as a best practice in most jurisdictions around the globe. However, in Canada, certain policies are required by law. Examples of workplace policies that are commonly required across Canadian provinces include:

  • occupational health and safety policies;
  • workplace violence and harassment policies;
  • anti-discrimination policies; and
  • accessibility policies.

Retailers should identify all of the provinces and territories where they plan to operate and determine which policies are required by law.

Training is Required by Law

Many Canadian jurisdictions require employers to provide training to their staff on various labour and employment issues. An example of training that is commonly required is occupational health and safety training, which includes training on workplace violence and harassment. Some jurisdictions also require employers to train employees on how to interact with, and accommodate, people with disabilities.

Retail Managers are Often Entitled to Overtime Pay

In contrast with many jurisdictions in the United States, managers at retail locations are often entitled to overtime pay. In Canada, overtime pay exemptions depend on the duties that are actually performed by an employee, as opposed to how that employee’s job is characterized by the employer or the employment contract. In addition, the exemptions vary from province to province. For example, retailer managers in Ontario will only be exempt from overtime pay if they: (1) perform managerial or supervisory duties; and (2) refrain from performing non-managerial or non-supervisory work, except on an irregular or exceptional basis. If a manager regularly performs non-managerial tasks, such as serving customers, stocking shelves, or working cash, the manager will likely be entitled to overtime pay, regardless of whether the manager is compensated on an hourly basis or by salary.

While the above suggestions are not complicated, they do require some planning in advance of a decision to open a retail location in Canada. In addition to the above, it is also important to recognize the requirements of French language laws in existence in the province of Quebec.

Anthony Panacci and Emily La Mantia are lawyers with Filion Wakely Thorup Angeletti LLP, one of Canada’s leading management-side labour and employment law firms. Anthony and Emily provide advice to both unionized and non-unionized organizations on all aspects of the employment relationship. This includes assisting employers with hiring, terminations, health and safety matters, and employment policies. They regularly provide employers with day-to-day advice and also defend employers in legal proceedings. For further information, Anthony can be reached at apanacci@filion.on.ca, and Emily can be reached at elamantia@filion.on.ca