Home Blog Page 881

Ontario Premier Doug Ford Urged to Open Ontario Retail and Restaurants Immediately as Covid Cases Come Down at a Critical Time: Interviews

By
Mario Toneguzzi
-
Indigo at Manulife Centre in Toronto - Photo by Dustin Fuhs

In an open letter to Ontario Premier Doug Ford, the Canadian Federation of Independent Business is urging the provincial government to immediately begin reopening the economy to save thousands of businesses from being forced to shutter their doors permanently.

“Tomorrow is supposed to be the day that our retailers, our restaurant patios, our gyms and our hair salons finally reopen their doors after two long months of province-wide lockdown. Instead, Ontario’s reopening plan has them remaining closed for at least another two weeks, and many for much longer,” said the national organization representing 95,000 small and medium sized businesses, including 38,000 in Ontario. 

“Meanwhile, COVID cases continue a strong downward trend, and estimates show vaccinations have already hit the first-dose threshold for Step 2. Only 42 per cent of Ontario’s small businesses are fully open and only 37 per cent are fully staffed. A mere 27 per cent are at normal revenue levels. All these indicators lag CFIB’s national average and are among the worst in the country, ahead of only Nova Scotia. The situation is dire, and the cost of not moving sooner will be immense.”

James Rilett (Photo Restaurants Canada)

The organization said restaurants in Toronto have been closed to indoor dining for 367 days across the various provincial lockdowns, shutdowns, and emergency breaks. An entire year’s worth of business has been lost and the industry is looking – at minimum – at another 67 days of being closed to indoor dining under the current plan. 

James Rilett, Vice-President, Central Canada, for Restaurants Canada, said the organization remains very frustrated because the province has been shut down for so long. 

“This lockdown is the longest in the world and we don’t think it needs to continue on any longer,” he said. “The government needs to open us as soon as possible.

“The consequences have yet to be seen. I think there are a lot of people who don’t know whether they’ll even be able to continue in this industry and not until they’re open will we see all the consequences. But they’re dire in this industry and it really needs all the help it can get.”

Photo: Julie Kwiecinski

Julie Kwiecinski, director of provincial affairs for Ontario with the CFIB, said while vaccinations are ahead of schedule and COVID cases are trending rapidly downward, businesses are hanging on by a thread.

“And every extra week of closure is an extra week without much-needed sales to help keep businesses afloat. And if you look at other jurisdictions, for example BC non-essential retail was never closed and even under Manitoba’s latest restrictions, retail can stay open at 10 per cent capacity. I mean you look at businesses around Ontario, they are struggling,” she said. “They are struggling to stay afloat.

“This lockdown has continued . . . This is the highest point of desperation for an Ontario business owner. You’re almost at a point where you have nowhere else to go except to slap a closed forever sign on your door.”

Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail, said it is time to open up Ontario’s economy in a measured way. 

Bruce Winder

“Based on the current case counts and the percentage of the population that have received the first dose of a vaccine, we should be able to allow retailers, restaurants and other sellers to conduct business to a greater degree at once,” he said. 

“For many, June is the most important month from a sales perspective and could help recover some of their year – already brutal based on lockdowns. We must balance the containment of the virus with the economic and mental health of our citizens. A delay would only deepen the damage done to merchants and customers. Unfortunately, the pandemic has become a political football at the expense of everyday business people.”

Karl Littler, Senior Vice President, Public Affairs with the Retail Council of Canada, said the organization has been urging the Ontario government to reopen all retail prior to the currently announced date of June 15, since additional delays are not warranted and are not based on scientific evidence. 

Linkedin: Karl Littler

“If retailers have to wait until June 15, those in Toronto and Peel specifically will have been closed for 144 consecutive days – or a staggering 230 days since the start of the pandemic. It will be even worse for retailers within malls as we remain concerned to hear that they cannot reopen on June 15 unless they have an externally facing door. Opening all businesses with capacity limits can work for health and the economy.  Evidence shows that we are not part of the problem, but we are on board to be part of the solution and to implement reopening measures safely,” he said.

The CFIB said event spaces, concert halls, wedding venues and conference centres haven’t been at full capacity since the pandemic broke out over 400 days ago. Florists, caterers and décor businesses are telling the CFIB that the 2021 wedding season is already a lost cause. If current trends continue, Alberta is expected to be fully open around the same time Ontario allows haircuts, added the organization. 

“Yes, other provinces have used business lockdowns at various points during the pandemic. But no jurisdiction in North America – and very few in the world – have locked down businesses for the length of time businesses have been closed in Ontario. From decisions like closing ski hills and golf courses, to completely shutting down non-essential retailers and hair salons, the phrase “only in Ontario” has been far too common throughout the pandemic. In British Columbia, retailers were never closed to in-store customers,” said the CFIB’s letter to Premier Ford.

The CFIB urged the Ontario government to immediately reopen:

  • All retailers at minimum 20 per cent capacity;  
  • Restaurant patios and limited indoor service;  
  • Hair salons and barbers by appointment; and  
  • Gyms and recreational activities by appointment. 

It is also urging Ontario to go back to the drawing board on the reopening plan to:  

  • Announce significantly earlier reopening dates in line with other provinces;  
  • Provide a detailed timeline for the full economy to reopen, including events and entertainment; 
  • Allow regions with low case numbers and hospitalization rates to reopen much faster; and  
  • Announce a third round of Ontario Small Business Support Grant funding and expand coverage to all businesses that have been locked down or significantly affected by a shutdown or stay-at-home order. 

Canada’s Food Retail Industry Disrupted Amid Pandemic: Brookfield Institute

By
Mario Toneguzzi
-
Illustration by: Dorothy Leung

A new report from the Brookfield Institute for Innovation + Entrepreneurship (BII+E), at Ryerson University, identified four key trends in Canada’s food retail industry and their implications for grocery employers and essential workers in Ontario.

The report, Shake-up in Aisle 21: Disruption, Change and Opportunity in Ontario’s Grocery Sector, said the following trends are impacting the industry now and going forward – the accelerated rise of e-commerce; driving loyalty with data; growth of market power plus consolidation; and moving beyond hyper-efficient supply chains.

Sean Mullin

“The COVID-19 pandemic has prompted or accelerated change across the economy, and the food retail industry is transforming more rapidly than it has in a generation,” said Sean Mullin, Executive Director, The Brookfield Institute for Innovation + Entrepreneurship.

“Retailers are diving deeper into e-commerce, shoppers are shifting the way they shop, and jobs and working conditions of essential food retail workers are in the spotlight. While some aspects of these changes may be short-term, others will have lasting implications for the sector as well as for Canada’s consumers. 

“This report captures our effort to better understand these shifts and their effects, their potential impact on food retail work, and the challenges and opportunities that lie in change.”

The food retail industry is an essential part of the Canadian economy with the average Canadian household spend per year on food at $10,311 with 27 per cent of that in restaurants and 73 per cent in food and grocery retail.

“We’re a policy institute that is interested in really understanding some of the most critical issues facing Canada today. We want to understand bold ideas but we want to actually transform them into international real world solutions. Our mission talks about Canada navigating complex forces and the amazing possibilities of the innovation economy,” said Kimberly Bowman, Senior Projects Manager.

Kimberly Bowman

The report said the pandemic has driven significant change in Canada’s $95.5 billion food retail sector, accelerating tech adoption and prompting major shifts in customer behaviour. It has also put a spotlight on aspects of food retail that many shoppers may have previously taken for granted. Empty store shelves have prompted a newfound appreciation for the everyday heroes who have kept our local grocery stores stocked and operating, it said.

The report also examines the implications of these and other changes for Ontario’s grocery employers and workers. Shake-up in Aisle 21 is part of an ongoing Brookfield Institute project to identify job pathways for Canadian workers in industries being disrupted by new technologies. The Job Pathways in Food Retail project, in partnership with the United Food and Commercial Workers (UFCW), is funded by the Government of Ontario and JPMorgan Chase & Co.

Bowman said there is incredible power in skilled algorithms. There’s also huge potential in labour market information. But all this has to be taken from a human-centered perspective.

“You’ve got to think about the people and that includes both the employers who are looking for skilled workers and the workers who are looking for jobs where they can apply what they already know how to do well,” said Bowman.

“That’s what we put into practice in this project. If there’s going to be disruption in grocery in the automated cashiers coming in and there’s suddenly demands for cashiers, what do those tens or hundreds of thousands of people do? Where could they pivot to? How can we use (data) and labour market information and combine it with good on the ground research to understand who these workers are, what they’re interested in, what are some of the in-demand jobs they could transition to without a lot of additional training or school . . .  And how do we tap that list that comes out of the skilled algorithm?

“As a researcher, it became very apparent very quickly how many smart people work in retail and have built their careers working in an industry that is complex, sophisticated and ever-evolving. What we’re not trying to do in this report is suggest any of that is not true. You very quickly understand just how many changes people are juggling around supply, around omnichannel, around e-commerce. It’s breathtaking.

“Just to acknowledge how important and critical and sophisticated this sector is while at the same time asking people who have the opportunity to influence to sit back and think about where they could be deploying that strategic insight, those capabilities. We see a tremendous amount of investment in e-commerce and in the infrastructure for that which is entirely appropriate – certainly in food retail.”

The report said disruption in Ontario’s food retail landscape is resulting in investments and decisions that can shape the sector for decades. 

“Canadian food retailers employ hundreds of thousands of Canadians in communities across the country, in customer-facing jobs that are likely here to stay,” said the report. “As these retailers adapt to changes—including the growth of e-commerce, data-driven strategies, market consolidation, supply chain adaptation, shifts in consumer habits, and the pandemic— they are making decisions that can transform food retail, and jobs within the sector.”

It said the research suggests a number of areas where the sector could continue to evolve into the future:

  • The food retail industry—by virtue of its scale and conditions—can be a powerhouse for innovation, said the report.  “While grocery may not be top-of-mind when Canadians think of the innovation economy, recent investments show that Canadian food retailers are rapidly innovating—alongside evolving consumer expectations and demand. At the same time, the industry faces calls for restraint to ensure its power does not result in an environment that constrains innovation or healthy competition, or that fails to deliver fairly for key stakeholders including suppliers and staff.”;
  • The food retail industry employs hundreds of thousands of essential workers in Canada, yet many food retail jobs offer poor conditions— low pay, insufficient hours or precarious employment, and tend to see high turnover, said the report. “The COVID-19 pandemic has underscored the important role of food retail and food retail workers. There is a disconnect between the value of these roles, the risk associated with front-line work and the relatively low wages and job quality experienced by many workers. The industry is being challenged by many to find a better balance between profitability, price, and their responsibility to essential workers.”;
  • The report said companies tend to be behind the times when it comes to managing the skills, talent, and expertise of people already on their payroll. “Already sophisticated digital businesses, large food retailers tend to lag on adopting digital internal talent tools. Some, however, are starting to modernize talent strategies and adopt technologies to better map and leverage talent they already have in their labour force.”;
  • Customer service skills are critically important and highly sought after by employers, added the report. “In line with past research, these same skills remain poorly codified and not economically valued. Employers rate the ability to deliver an excellent customer experience as a desirable skill, but also one of the most difficult for them to identify, train, and recognize.”; and
  • As the sector changes, some workers may face disruption, said the report. “Workers in this sector may consider transitions, either for new opportunities or as a result of job-related disruption. Customer service remains in high demand. Given challenges associated with pay and job quality, some of these workers may wish to investigate pathways into other occupations. Identifying job transition pathways requires an understanding of how jobs are changing, local employer demand, and worker preferences. We investigate these opportunities in our upcoming report.”

Report Illustration by Dorothy Leung

How the RCC Shifted its Stance on a Grocery Code of Conduct and why Government Intervention is Needed to Make it Work: Sylvain Charlebois

By
Sylvain Charlebois
-
Image: Grocery

A new coalition led by the Retail Council of Canada (RCC) has presented a new roadmap to peace within the food industry. For years, grocers were unilaterally imposing fees on their suppliers, with questionable excuses. While grocers were maintaining a hardline to protect margins, food manufacturers and farmers, operations which are often family owned and operated, were squeezed financially. The RCC, which represents Canada’s major grocers had always been against any form of intervention, and felt no changes were required. That all changed this week.

What is suggested by the RCC and its alliance of stakeholders is an industry-led code of conduct, without public regulations. The model mirrors the Canadian Code of Practice for the Credit and Debit Card Industry, and the Fruit and Vegetable Dispute Resolution Corporation. These bodies operate without any government intervention. The alliance includes several other interest groups in the food supply chain, including farmers, processors, and independent retailers. Almost 40 trade groups are reportedly supporting this model, including 19 farming groups and 15 food processing groups. The approach is incredibly inclusive – a valiant effort indeed. The federal working group charged with the task of submitting a final report in July has now received the proposal.

Another code of practice was also presented to the working group by Food, Health & Consumer Products of Canada, with the support of Sobeys, the number two grocer in the country, only a few weeks ago. The principles were very much the same, except for one thing. This proposal did suggest the involvement of public authorities. Both the United Kingdom and Australia implemented similar codes years ago. It was argued at the time that compliance to a code in the industry can only be assured by getting governments involved. Since only provinces can provide oversight on these matters, a buy-in from all provinces is critical.

Two different views are now being presented to achieve the same goal: to increase our country’s food autonomy by recognizing food manufacturing as the anchor to the entire food supply chain. Since many farmers produce a finished product, in a way, food manufacturing includes them as well. With the RCC’s move now, the question is no longer whether Canada will have a code of conduct to support farmers, food manufacturers, and independent grocers, it is more a matter of what it will look like, and who will be responsible for oversight.

This supply-chain issue could be seen as irrelevant to Canadians, but it is not. Au contraire. This is very much about realigning a power imbalance that has been prevalent in the industry for years, favoring grocers of course. More discipline and predictability with market conditions brought forward by different practices will give more authority to food manufacturers and farmers – all of them. Such measures will likely give space to more diversity, excitement, and innovation in food retailing. Loblaw or Walmart may very well think they know what consumers want and need, but with consumers seeking value, and ever-changing product attributes, an efficient code will ultimately give more power to consumers. Independent grocers could also get some needed oxygen and be given a chance to compete against the larger grocers.

For Canadians though, setting up the right model will not be easy. Many will agree that the system needs to be both transparent and effective at the same time. As much as the industry would want to self-regulate and provide some oversight on itself, the industry does have some embarrassing baggage it needs to consider.

Given what has happened in recent years with the bread pricing scheme scandal, it is unclear whether Canadians have any appetite for more self-regulatory arrangements. While industry needs an effective code, Canadians also need to trust it, so they do not feel cheated as they visit their favourite grocery store. Moving forward, we should not forget that the code of conduct is not just about helping the industry, but it is mostly about creating a moral contract between the public and the food industry. A new code should be about serving Canadians and our economy, not just the latter. The support of provinces, with some federal-level coordination, to a certain degree, would be needed. And given their sizeable markets and strong track-records for appreciating our food supply chain’s integrity, in addition to Ontario, both Quebec and British Columbia should be considered as influential voices.

But more government involvement could come with some unwarranted headaches. With governance, we all need to move with extreme caution. Once we create more governance, the industry will need to live with it. Changes, if necessary and however small, will always be challenging. If governments are involved, implementing changes could be a nightmare if the model is ill-designed.

Regardless of the outcome, the fact that a federal working group is looking at this issue and that many stakeholders are providing solutions is already a win for everyone.

3 Conversion Rate Optimization Tips for Retailers Adopting Digital Sales Channels for the First Time

By
Retail Insider
-

The COVID-19 pandemic has changed the way consumers shop. In this sense, the retail sector has sustained more change than any other industry. In many areas, local shops that once managed pure brick-and-mortar outlets suddenly found themselves forced by regulators to close their doors to foot traffic, while in other areas, people voluntarily chose to shop online, forcing merchants’ hands.

In this climate, only those who transformed to offer omnichannel experiences – with ecommerce shopping cart-enabled websites or social commerce sales channels, along with fulfillment via delivery services or curbside pickup – have been able to thrive.

Once they started to offer pickups and deliveries Toronto-based Great Lakes Brewery was able to rehire much of its laid-off staff. “We were shocked at how quickly it started gaining momentum. It was unbelievable,” owner Peter Bulut told the press. “When life gets back to whatever normal is, we’ll keep going with it.”

Research conducted by Ottawa-based platform Shopify shows that 52% of buyers shifted the majority of their spending online compared to before the pandemic, with 51% indicating they were uncomfortable shopping in a physical store. These findings don’t mean that brick-and-mortar retail is dead, however, with 40% of consumers surveyed by Shopify indicating that they’ve opted for curbside or “buy online, pickup in store” (BOPIS).

First-time online sellers often discover that digital sales channels bring a whole host of conversion rate optimization (CRO) issues. Especially if you’re used to helping customers with their purchase decisions face-to-face, it can be tough to figure out where to begin with CRO.

Here are three tips that will help you increase your online shop’s conversion rates.

Get to know your customer

Your physical store offers you the opportunity to get to know your customer better. The previously mentioned Shopify survey indicates that 61% of consumers still plan on buying from local and independently owned shops in a bid to support small businesses.

Create surveys and reach out to your existing customers to get to know their reasons for shopping with you. Which products do people love the most, and why do they have these preferences?

Also, structure your questionnaires and interviews so that you receive clear answers. For instance, when asking consumers about a product preference, most interviewers provide them a scale from 1 to 10. The numbers in this range will be interpreted differently by everyone. Therefore, stick to 2 or 3 choices when providing customers response options. It reduces the variance in their responses, and you’ll receive a clearer picture of their motivations.

Once you’ve gathered data, you’ll start to see ways that you can segment your customer base according to a few broad categories. Note the common characteristics of these categories and design your online sales channels to appeal to their motivations.

For instance, one category might be consumers aged between 25 and 34 who prefer in-store pickup for certain electronic products. Prioritize these items for in-store or curbside pickup and make sure your website communicates this fact. Older consumers might prefer a certain payment method, so make sure you offer them that convenience. The aim is to optimize your website to appeal to the needs and values of your customer segments.

Analyze available purchase habit data

Smaller retailers have traditionally resorted to doing everything manually, but in a data-driven world, this approach won’t deliver results. At the very least, retailers need Customer Relationship Management (CRM) software that helps them map all data related to individual prospects.

For instance, your CRM software will inform you how often a customer shops at your store, their preferred delivery options, their preferred payment methods, the number of times they abandoned their online shopping cart, and so on. You can then compare your metrics to your competitors’ and evaluate where your ecommerce conversion rate stands.

Digital sales channels are numbers-driven, and it’s possible to scientifically plot your way to the top. By evaluating your metrics against industry-wide benchmarks and competitor results, you’ll know exactly where you stand. Once you make changes to your website, your metrics will reveal how effective those changes were.

Competitor analysis also comes in handy when evaluating traffic sources. All online sellers rely on keyword searches. By examining your competition, you’ll know which keywords are the most profitable for them, which social media channels work the best, and even which ad copy is the most effective.

By emulating the best aspects of your top performing competitors’ strategies, you’ll drive more relevant traffic to your website and automatically increase your conversion rates.

Offer more personalization

Personalization is the key to a great shopping experience. It’s easy to personalize an in-person sales process. However, doing this online requires you to prepare ahead of time. It all begins with data collection and analytics.

Tools like Google Analytics are indispensable these days. These software allow you to view your average customer’s journey. Notice which pages they land on the most and how quickly they click to another page. Which are the most common pages they visit after the first landing page, and how long do they spend on those pages?

An analytics software package can give you a visual representation of how your customer proceeds through your website. Note the places where the largest drop-offs occur and analyze why this happens. The copy on that page might be turning people off, or perhaps the images you’re displaying there might not be attractive enough.

The design elements might also lack the standards that your customers expect. Upon checkout, make sure to offer your customers complimentary products or the chance to unlock loyalty discounts. Connect your CRM to your email marketing software to tailor individual campaigns and offer something to everyone.

Over time, your customers will recognize your personalization efforts and will reward you with their spending. A lot of this process is about testing options. Don’t expect your first design or copy change to instantly yield major conversion lift. Test different versions and run with the versions that give you the best results.

Constant improvement

Optimizing your conversion rate isn’t a one-time deal. It’s a constantly evolving challenge that requires you to test and optimize for your customers. Keeping track of your metrics and measuring conversion rates will give you all the insight you need. Use the right tools, and you’ll position yourself to thrive in the new normal.

Canadian Retail News From Around The Web For June 1st, 2021

By
Retail Insider
-
Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

Western Canada News

Podcast [Interview]: Outgoing Downtown Vancouver BIA Head Charles Gauthier Talks Retail

By
Retail Insider
-
The Weekly

Craig and Charles discuss how he landed the position at the Downtown Vancouver Business Improvement Association 29 years ago, retail in the downtown core and what he has planned next.

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

Discussed this episode:

Subscribe, Rate, and Review our Retail Insider Podcast!

Follow Craig:

Follow Retail Insider:

Listen & Subscribe:

Share your thoughts!

Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/

Canadian Brand Rudsak Shifting Retail Strategy Amid Pandemic: Founder interview

By
Craig Patterson
-
Image: Rudsak

Canadian fashion and outerwear brand Rudsak is shifting gears amid the pandemic by re-evaluating its operations while innovating to meet consumer demand. With that, the company is reducing its physical store count while shifting sales online with an eye to the future guided by analytics and technology. The company is moving further to a direct-to-consumer model with a heavy focus on outerwear with sustainability being an important component. 

Founder Evik Asatoorian told Retail Insider that his company is making significant changes to its operations based on learnings over the course of the pandemic. Online sales have already grown by 300% and by the fall, about 50% of the company’s sales will be online. That’s a significant jump from 2019 when the brand had 34 stores across Canada with sales primarily being in physical locations. 

That store count will eventually be reduced to between 15 and 20 stores across Canada, according to Asatoorian, who explained that many brands no longer need an expansive store count to meet consumer demand. Many of Rudsak’s leases have been coming due recently and the company is working with landlords on what makes the most sense for the brand’s physical footprint. Asatoorian said that markets such as Montreal and Toronto should ideally have three or four physical storefronts. 

Image: Rudsak at CF Toronto Eaton Centre

“Consumers will always need a retail space to discover and experience the product as well as to be served,” said Asatoorian. The company ultimately grew to have too many stores he said. “We opened stores in places that we shouldn’t have.” Moving forward, Rudsak’s concept stores will aim to be experiential with attractive interiors and exceptional customer service including in-store private styling appointments. “We’ve seen a change in how consumers purchase and what they look for, so we have optimized our e-commerce and in-store experience to cater to those needs”, he went on to say.

Rudsak is also expanding internationally after opening a store at the Hudson Yards in New York City in the spring of 2019. A pop-up strategy is being implemented which included a storefront in New York’s Soho area. An expansion into Asia is ongoing with China as a focus. 

Analytics are a key component to learning about the consumer in new markets according to Asatoorian. He explained how data from pop-up stores can be used to gage where new stores might open, including markets such as Chicago if demand is determined. 

Rudsak at CF Market Mall
Rudsak at CF Market Mall. Photo: Jessica Finch

Rudsak’s operations are also shifting primarily to a direct-to-consumer model according to Asatoorian, as consumers are drawn both to the brand’s stores and online channels. As a result, some wholesale accounts at multi-brand retailers have been dropped while strategic partnerships are maintained. The standalone Rudsak stores allow it to control merchandising, staffing and overall brand presentation which is strategic as Rudsak launches new product lines as part of a shift for the brand. 

That includes gender neutral coats and puffers that launched in the fall of 2020 under Rudsak’s Unified Capsule Collection. Neutral silhouettes “challenge fashion’s once-rigid gender norms” according to the company. For this spring, Rudsak said that it is unveiling “a fresh new palette of bold hues to usher in the warmer months. This vibrant collection embodies all the hallmarks consumers have come to expect from Rudsak including streamlined tailoring and technical construction infused with luxe fabrics.” Details, like four-way stretch and durable ripstop deliver the movement.

Outerwear will become the primary focus for Rudsak moving forward according to Asatoorian, with about 95% of the brand’s offerings dedicated to coats for the seasons. Currently 10-20% of Rudsak’s offerings include other fashion items such as accessories, footwear and clothing. 

  • Image: Rudsak
  • Image: Rudsak

A partnership with Uber is seeing Rudsak become the first outerwear brand to offer home delivery in less than an hour. Asatoorian said that Rudsak is continuing to look at how the consumer shops and what other innovations might drive loyalty. One in the works is virtual stylists who will be able to assist customers online. 

One innovation involves a partnership with Montreal-based Heyday which facilitated a chatbot function on Rudsak’s website which is able to answer about 60% of common customer queries without the need for a human answer. It allows Rudsak’s employees to focus on better serving the customer through online channels with a more curated service.

Rudsak’s shift-to-virtual also includes its staff, with about 75% currently working from home. Asatoorian said that the company is seeing success with employees working from home, including efficiencies. One example is product knowledge meetings which were time consuming and involved travel — the brand is now able to do them online which saves both time and money.  

Sustainability is also a focus for Rudsak according to Asatoorian, with 99% of garments having something recycled — that’s up from 80% of garments last year. Recycled leather is one innovation being introduced as part of Rudsak’s aim to be more eco-friendly. Recycled fabrics are also being used as well as its signature lightweight down. 

Evik Asatoorian designed a black leather jacket as “a symbol of non-conformity” in 1993 and a year later he founded the Rudsak brand. In the early 2000s he opened the brand’s first store in downtown Montreal. The brand’s aesthetic aimed to be urban, modern and with an edge which has carried it to this day. Rudsak describes its design ethos as being “cool rebellious spirit, traveling seamlessly between art, music and design”. Prices are generally in the hundreds of dollars for a man or woman’s coat with some styles surpassing $1,000.

Competition is fierce in the outerwear space in Canada as brands continue to fight to gain market share. Toronto-based Canada Goose has been opening stores globally as part of its brand building, as is Montreal-based Moose Knuckles which is also opening stores in major markets with a mix of permanent and pop-up spaces. Montreal-based Mackage and Quartz Co. are opening stores to attract consumers, while Toronto-based Nobis recently downsized to one Canadian storefront on Queen Street West after shutting a location in Yorkville. Other brands such as Wuxly Movement are also looking to gain market share while offering vegan-friendly options not using any animal products. One notable trend seen among many outerwear brands is a shift to direct-to-consumer models as brands see the benefit of selling to customers through non-wholesale channels. 

Rudsak Hudson Yards images courtesy KCG Architects

How Canadian Grocers are Innovating Operations to Keep Up With Growing Online Consumer Demand

By
Sean Tarry
-
COVID-19 has precipitated a need among grocers to find new and innovative solutions that will enable them to keep up with growing online demand while continuing to meet increasing consumer expectations. One option is to move online order fulfillment out of the stores and into fulfillment centers, such as in this one operated by SPUD.ca

Impacts of the COVID-19 global pandemic have changed just about everything we do and the ways in which we do them. For grocers, the effects have been significant. Highlighted by greatly reduced brick-and-mortar traffic and a reciprocal acceleration of online consumer activity and sales, the sector is currently undergoing a seismic shift toward digital operations. It has precipitated a need among grocers to find new and innovative solutions that will enable them to keep up with growing online demand while continuing to meet increasing consumer expectations. It’s all part of a massive disruption to the industry says Corbin Bourree, SVP eCommerce at SPUD.ca, and is one that he believes will only intensify going forward.

“Everything changed overnight last March,” he asserts. “Our website traffic immediately spiked to 600 percent year-over-year. It was absolutely incredible to see how quickly consumers became aware of online grocery, which amounted to less than one percent of total Canadian grocery sales prior to COVID. It’s on pace to be somewhere in the four to six percent range by the end of 2021 and will likely move into double-digit market penetration.”

Bourree says the expectations of the quality of service and produce, the timeliness and visibility of the delivery, as well as tertiary considerations like sustainability and reduced packaging, have all been raised. “The rate at which online grocery in Canada has evolved over the course of the past 13 months is staggering, accelerating adoption by five to ten years,” he says.

eGrocery revolution

“The rate at which online grocery in Canada has evolved over the course of the past 13 months is staggering, accelerating adoption by five to ten years,” says Corbin Bourree, SVP eCommerce at SPUD.ca.

Founded in 1997 with a mission to improve the health of Canadian communities by connecting them to local and organic food, SPUD.ca (a subsidiary of Freshlocal Solutions, Inc TSX-LOCL) has since rapidly developed into one of the country’s largest online grocers. Servicing parts of British Columbia and Alberta, the company’s logistics platform is built on Microsoft Dynamics 365 and is hosted on Microsoft’s Azure Cloud to prepare and deliver grocery orders faster and better. Although some of its recent successes may be rooted in the escalation of online trends, most of it can be attributed to the integrated food business ecosystem that it began to form long before the onset of the pandemic. It’s comprised of its online retail, commissary/food preparation services and distribution, as well as community retail locations, including two Be Fresh Local Market stores in Vancouver – the first of which opened in 2015 – and five Blush Lane Organic Markets in Alberta.

It’s an ecosystem that has allowed the company to scale and build awareness among consumers, infusing its operations with a level of agility that’s also contributing to its ability to seize the opportunities of the day. However, its greatest asset is the innovative thinking. It’s a mindset that’s resulted in a number of achievements for the company through the years, culminating recently in the formalization of FoodX Technologies – a scalable end-to-end eGrocery Management Solution (eGMS) built on Microsoft Dynamics 365 for brick-and-mortar grocers looking to build a profitable online business. The state-of-the-art grocery fulfillment platform allows multiple banners from each retailer to access industry-leading technology, warehousing, food preparation and delivery services, as well as a front-end ecommerce platform, reporting and analytics, and inventory management. It’s the holistic solution that’s helping SPUD.ca support the evolving needs of online grocery fulfillment, and one that Jef King, CTO at FoodX, says could help revolutionize any online grocery efforts.

“We’ve got the advantage of being in business in this space for more than 20 years,” says King. “For grocers leveraging the FoodX platform, it provides them with a truly end-to-end solution that will support their operation and help them implement and utilize warehousing to maximum efficiency. We leverage a mixture of the best human input and high-tech systems. We believe it’s a combination that provides any retailer with the flexibility to offer their customers exactly what they want.”

King reinforces that to be competitive in this market, online has to be a component of a retail business. “FoodX is poised extremely well in the technology space to provide that flexibility for retailers and to help open doors to possibilities that they didn’t even realize existed,” he says.

Digital transformation

Founded in 1997 with a mission to improve the health of Canadian communities by connecting them to local and organic food, SPUD.ca has since rapidly developed into one of the country’s largest online grocers.

Bourree agrees, citing the platform and its supporting technology as an “absolute game-changer” for any retailer looking to not only enhance their service and offering, but to take it to a whole new level. One retailer that’s taken FoodX up on its potential is Carrefour Group, a global leader in the grocery industry, with the commencement of operations of Carrefour’s new eCommerce fulfillment center in Belgium. According to Bourree, the platform’s potential is still very much untapped, adding that much of its continuously expanding capabilities and uses are being fueled by the data that it generates.

“Traditionally, Canadian grocery retailers rely on loyalty programs to gain data insights that are purely tied to point-of-sale transactions,” Bourree explains. “If you look at any unique order powered by the FoodX platform, you’re generating north of 200 data points per order when considering things like delivery preferences, substitution preferences, allergen concerns and more. The ability to take this data, leverage Microsoft Azure cloud capabilities and apply the human intelligence and capital that we’ve built up over two decades, along with machine learning and expertise that we’ve recently acquired, it totally transforms a grocer’s ability to serve the customer.” 

Bourree notes that ecommerce allows for a forward look that can gain purchases in advance of shipping them. “It’s why our food waste is less than 0.5 percent of sales,” he says. “It also allows us to maximize fill rates for customers, often trending above 99.5 percent as opposed to the 97-98 percent in-store fill rate that many grocers target. Combining FoodX’s knowledge and know-how with the advanced technology that it leverages makes for an incredible customer experience.”

Attention to detail

“For grocers leveraging the FoodX platform, it provides them with a truly end-to-end solution that will support their operation and help them implement and utilize warehousing to maximum efficiency. We leverage a mixture of the best human input and high-tech systems” says Jef King, Chief Technical Officer of FoodX.

King recognizes the importance of the customer experience, stressing that every decision to modify the FoodX technology is made with the consumer in mind. He points to the FoodX team and the attention and considerations that they pay toward improving every step of the online grocery journey as the real strength of the operation. He also suggests that the power of the warehouse and the underlying software that supports it cannot be underestimated.

“Inventory is the most critical piece of data within the warehouse,” he says. “Most of our successes are based on our depth of knowledge of the inventory in our systems. We run our warehouse on the Microsoft Dynamics 365 cloud offering. It allows us to optimize our inventory management and provides us with the flexibility to do a lot of innovative things and build a number of systems around it. It’s a vital layer of our business that enables a significant amount of creativity, agility and accuracy when it comes to our warehouse operations.”

Retail industry leaders are constantly looking for new ways to optimize operations, transform products, empower employees and engage customers. This is an era when connecting customers, products, people and data wins. Microsoft Dynamics 365 offers a modern and familiar experience with built in insights, intelligence and workflow.

Blurring the lines

FoodX Technologies offers a scalable end-to-end eGrocery Management Solution built on Microsoft Dynamics 365 for brick-and-mortar grocers looking to build a profitable online business. 

As consumer preferences and habits continue to shift toward the ease and convenience of the online experience, grocers across the country are advancing their digital strategies and enhancing their ecommerce capabilities. Online offerings that consistently provide best-in-class service and delivery performance will be critical going forward, not only with respect to the success of grocery operations, but to their continued evolution as well. And, according to Bourree, these expectations of the consumer aren’t going to subside any time soon.

“The big term around 2010 was omnichannel. We’re only now truly seeing and understanding what that can mean. We’re going to start to see a real blend between online and in-store shopping visits, more so than we ever experienced prior to the pandemic. Consumers will continue to adopt ecommerce and services like click-and-collect and use them more frequently. It’s going to continue blurring the lines of the marketplace. And, there will also be an increase in the consumer’s demand for a more seamless and personal mobile offering. It’s going to allow grocers with the right platforms and systems to leverage even more data to become more predictive and create a level of personalization throughout the consumer’s journey, entrenching their trust in and desire for online offerings further.”

For more information, please visit dynamics.microsoft.com

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

Canadian Retail News From Around The Web For May 31, 2021

By
Retail Insider
-
Canadian Retail News From Around The Web

Top Stories: National

Central/Eastern Canada News

Western Canada News

Retail Profile: CF Market Mall in Calgary (Spring 2021)

By
Lee Rivett
-
Exterior Signage for CF Market Mall
Exterior Signage for CF Market Mall. Photo: Jessica Finch.

Retail Insider continues its Photo Tour series of Canadian malls to provide a glimpse into shopping centres which may be less frequented lately due to the COVID-19 pandemic. This edition takes us to CF Market Mall in Calgary. The shopping centre contains approximately 229 stores over one floor. While it is managed by Cadillac Fairview, ownership is split 50/50 between Cadillac Fairview and Ivanhoé Cambridge.

CF Market Mall from Google Maps
CF Market Mall from Google Maps. Photo: Google Maps with overlays by Retail Insider.
Satellite view of CF Market Mall from Google Maps. Photo: Google.

Market Mall spans more than 918,000 square feet. A Hudson’s Bay store is the main anchor tenant, and five junior anchors include Sport Chek, Sporting Life, Toys ‘R’ Us, Safeway and Old Navy.

History of CF Market Mall

The shopping centre opened in October 1971 and included a Woodward’s department store as a main anchor tenant. As with most malls, CF Market Mall has had several renovations over the years and two notable expansions occurred in 1988 and 2004. The 1988 expansion expanded the food court (and removed a Famous Players theatre which had been operating since 1977) and the 2004 expansion added the south wing plus expanded the food court.

Breaking up Market Mall

CF Market Mall is roughly laid out in an oval (or ‘race track’) like CrossIron Mills (see also Retail Profile: CrossIron Mills in Calgary). As a result, the simplistic, one level layout was divided into four quarters for the purpose of this retail tour.

Tour Zones for CF Market Mall
Tour Zones for CF Market Mall. Photo: Cadillac Fairview
  • Upper Left (highlighted in Green): Main anchors of Sport Chek, Sporting Life and Safeway as well as two exterior retailers being Saks OFF 5TH and Landmark Theatres.
  • Upper Right (highlighted in Yellow): Main anchors Hudson’s Bay and Toys “R” Us.
  • Lower Right (highlighted in Blue): Main anchor Old Navy as well as the food court.
  • Lower Left (highlighted in Red): Notable brands like Lululemon and Rudsak.

Upper Left section of CF Market Mall

The ‘upper left’ quadrant in the southwest corner of CF Market Mall is the first tour zone of the shopping centre. Most of the action at the shopping centre in terms of retail news has taken place in this section.

Exterior retailers in Upper Left (South West Corner) Map of CF Market Mall
Exterior retailers in Upper Left (South West Corner) Map of CF Market Mall. Photo: Cadillac Fairview

This section has two retailers outside of the main shopping centre building which is home to Saks OFF 5th and Landmark Cinemas. The “outparcel site” was redeveloped at a cost of $17.3 million.

Old HomeSense and Staples location at CF Market Mall prior to redevelopment into Saks OFF 5fth and Landmark Cinemas
Old HomeSense and Staples location at CF Market Mall prior to redevelopment into Saks OFF 5fth and Landmark Cinemas. Photo: Google Streetview.
Upper Left (South West Corner) Map of CF Market Mall
Upper Left (South West Corner) Map of CF Market Mall. Photo: Cadillac Fairview

Turning our attention to the main shopping centre building, the main anchor retail tenants for the zone include Sport Chek and Sporting Life as well as grocery retailer Safeway.

Sport Check at CF Market Mall. Photo: Jessica Finch
Sporting Life at CF Market Mall
Sporting Life at CF Market Mall. Photo: Jessica Finch

A number of retailers in this zone had their location in CF Market Mall featured in Retail Insider over the years, including:

General corridor in south west section at CF Market Mall
General corridor in south west section at CF Market Mall. Photo: Jessica Finch

Other retailers in this section of CF Market Mall include Bootlegger/Ricki’s, Caposhie, DavidsTea, Pandora, Eddie Bauer, The Children’s Place, Cleo, Little Burgundy, Twisted Goods, Adesso Man, Jersey City, Call It Spring, EB Games, Soft Moc, Journeys, Mountain Warehouse, Indigo Spirit, Zara, GNC General Nutrition Centre, Sublime, Vans, Jack & Jones, Bath & Body Works, Peoples Jewellers and Saneal Cameras.

Upper Right section of CF Market Mall

The “upper right” quadrant in the northwest corner of CF Market Mall is home to the long-standing anchor tenant, Hudson’s Bay.

Hudson's Bay at CF Market Mall
Hudson’s Bay at CF Market Mall. Photo: Jessica Finch
Upper Right (North West Corner) Map of CF Market Mall
Upper Right (North West Corner) Map of CF Market Mall. Photo: Cadillac Fairview

In addition to Hudson’s Bay, other key tenants include Toys “R” Us and Shoppers Drug Mart.

A number of retailers in this zone had their location in CF Market Mall featured in Retail Insider over the years, including:

Other retailers in this section of CF Market Mall include Boutique of Leathers, La Senza, Urban Planet, Le Chateau, Candy Heaven, The Source, Paper Root Studios, Hakim Optical, Showcase, Zumiez, QE Home, Sephora, Laura, Sleep Country Canada, The Gap, Charm Diamond Centers, House of Knives, Claire’s Boutique and Ardene.

Lower Right section of CF Market Mall

The shopping centre’s food court resides in the northeast section of CF Market Mall forming the ‘lower right’ zone of the retail profile.

Lower Right (North East Corner) Map of CF Market Mall.
Lower Right (North East Corner) Map of CF Market Mall. Photo: Cadillac Fairview

The main anchor in this section is Old Navy spanning 20,000 square feet of retail space.

The food court seating area at CF Market Mall has been shuttered due to the COVID-19 pandemic but a number of food vendors remained open for takeout service.

Various retailers in this section of CF Market Mall include Atmosphere, Guitarworks, Paws Discovery, Paris Jewellers, Pearle Vision, Northern Reflections, Stokes, The Body Shop, American Eagle, Bentley, Melanie Lyne, Aldo, Talbots, Carat Jewellers, Ann-Louise Jewellers, and Purdys Chocolatier.

Mall corridor in North West section of CF Market Mall
Mall corridor in North West section of CF Market Mall. Photo: Jessica Finch
Children's play area closed due to COVID-19 at CF Market Mall
Children’s play area closed due to COVID-19 at CF Market Mall. Photo: Jessica Finch

Lower left section of CF Market Mall

The final tour section is the southeast portion of CF Market Mall and, while it does not have any large-format retailers, there are a number of recognizable brands residing in this section like Apple, Lush Cosmetics and Lululemon.

Lower Left (South East Corner) Map of CF Market Mall
Lower Left (South East Corner) Map of CF Market Mall. Photo: Cadillac Fairview

A number of retailers in this zone had their location in CF Market Mall featured in Retail Insider over the years, including:

Other retailers in this section of CF Market Mall include Michael Hill, RW&Co., Rudsak, Aveda, Browns, Guess?, Banana Republic, Groovy Handbag, Roots, Bellissima, Sketchers, Steve Madden, Aritzia, La Vie en Rose, Dynamite, Joydrop, Sunrise Records, Saje Natural Wellness, Nespresso, Jewels by Maximes, Swarovski, UNTUCKit, L’Occitane, Birks, Evolution, Oak + Tonic, Lids, MAC, Sunglass Hut, and Kiehl’s.

We had a very interesting photo walk around CF Market Mall in Calgary and we hope you enjoyed coming along with us. Don’t forget to check out our other retail photo tours over the past few months. Thank you for taking this tour with us.

1...880881882...1,336Page 881 of 1,336