We’re hearing a lot about the use of drones lately in the retail landscape and the prospect is good that the trend will continue in the future as they become more popular for both retailers and consumers.
Gary Newbury, a retail supply chain strategist and serial transformation executive, said the use of drones in retail distribution is a very rarefied field right now but it is a positive trend due to its potential efficiency and cost-effectiveness.
Drone Delivery Efficient & Cost-Effective
Gary Newbury
The challenge in the future is to have people accept the possibility of drones flying around in populated areas as their application moves eventually to dropping off packages at people’s homes.
“The city folk might go no, I don’t like this. So retailers, the aviation industry, drone manufacturers, etc., have to do a big charm offensive to actually get drones into ways that we think of the world going forward. Maybe the pandemic and the surge to ecommerce may be just the trigger that people become more acceptable to seeing things flying around in the sky. We’re talking about maybe 50 to 70 feet up.”
But in the meantime, the use of drones to more remote locations seems to be a natural.
“And it will be primarily based on trend to access typically for ecomm sales – trying to access remote and rural communities with perhaps a more cost effective or frequent service than a truck doing the thing and an old transportation system,” said Newbury.
“Everybody gets that picture in their head and the question is how do you get the drone to that place in the most effective way.
“In terms of urban, suburban, high-density, downtown Toronto or downtown Calgary, I would like to see that happen but I don’t think I’m going to see it in my lifetime unless something big changes. It’s people’s perception of having these little ants flying around in the sky delivering lots of small packages. I’ve seen some very interesting videos on how maneuverable these drones are using guided vision cameras.”
Susceptibility to Weather Means Potential Challenges for Drone Delivery
The big issue for Newbury in the use of drones is weather related and the impact for example of adverse weather conditions on the transportation of the cargo and package.
Michael Zahra, President and CEO of Toronto-based Drone Delivery Canada, said drones can be used in a variety of ways and for various industries including ecommerce companies and even groceries.
Michael Zahra
“Literally it could be anything,” he said.
In terms of retail, “we’re having lots of discussions and we have a number of opportunities fairly far along in our sales funnel for a number of retail opportunities. I can’t mention any names of course. But there’s some very large well-known retailers. In the pharmacy business. In the grocery business. General ecommerce.”
Zahra said currently there isn’t anyone doing home deliveries on a large scale. Most of the applications where home delivery is involved are pilot projects or demonstrations.
The retail market can be broken down into two categories – business to business and business to consumer. Today it’s mostly B2B in rural, remote or suburban applications.
“We’re going from warehouse to warehouse. Maybe warehouse to store. Floor replenishment. These sort of applications that would benefit the consumer but it’s still B2B. In the future, and the technology can do it today, it’s more regulatory restriction. There really isn’t a lot of retail store to consumer going on.”
Once restrictions relax over time to allow for a greater range of opportunity to fly in denser areas that will open the door for using drones to deliver packages from retailers to consumers’ residential addresses.
Philip Reece
“It’s easily a good year away,” said Zahra.
Philip Reece, CEO and founder of InDro Robotics which is based in Saltspring, Island, said the company uses drones in a number of different industries including retail.
The company was founded in 2014. Reece was the former owner of a small airline flying in and out of Vancouver 16 times a day with four aircraft.
“I recognized that drones were on the rise. So I sold my airline to Harbour Air, which is still going. The largest seaplane company in the world and launched into the drones,” said Reece.
“We purposely did something a little different. We became an airline that flew through drones rather than a drone company.”
The company has worked with London Drugs delivering prescription medications directly to homes.
Among the murk of the current global health crisis, there are few bright spots to be found. The reporting of new COVID infections continues daily, at an alarming rate, with the number of confirmed cases reported worldwide since the start of the pandemic recently surpassing 60 million. Impacts of the virus’ spread have affected everyone from all walks of life, severely altering the ways in which we do just about everything.
To a large extent, it’s served to restrain, restrict, and even halt our progress. For those operating within the retail industry, the impediments have resulted in devastation reflected in a recent surge of bankruptcies and business closures. And, with many more merchants across the country and the world teetering on the brink of survival, the year 2020 will almost certainly be summed up by most as a very dark time for retailers. But penetrating the darkness, lending light and support to those within the industry wherever possible, is one Montrealer with a big heart and a deep passion for the continued health and success of the fashion and retail industries.
A Compulsion to Help
In response to the immediate and negative repercussions that began resulting from the pandemic back in March, bearing witness to the struggles and hardships of so many of his retail compatriots, Maurice Benisti, CEO and Co-Founder of Quebec luxury giant Benisti Group, stepped up in an effort to relieve some of the pressures felt by the businesses that carry his company’s iconic Point Zero brand, aiding many of them financially while also offering them operational support where he and his company could provide it. It’s an extraordinary philanthropic gesture that comes at a time when many of its benefactors require it most. But, according to Benisti, in light of the gravity of the situation at hand, the company felt compelled to take such actions.
“The past eight or nine months have been incredibly difficult for many retailers,” Benisti reflects. “The impacts on most businesses have been harsh and have resulted in an incredible amount of store closures. And for those that have managed to survive, the impacts of COVID-19 continue to attack their balance sheets. We knew as a company when this first started that we had to do something, to reach out and offer our help in as many ways as we could to as many of our retail partners as possible to help them not only survive, but to succeed during this time.”
Caring Outreach
With this goal in mind, Benisti Group, which operates over 20 Point Zero stores in Quebec, Ontario, Mexico, and the Middle East, and runs its prestigious Nicole Benisti luxury brand – a line worn by a host of celebrities including Celine Dion, Jennifer Lopez, Hailey Bieber, and others – didn’t waste any time in responding, rushing to the aid of retailers as soon as the first wave of government-imposed restrictions and lockdowns on businesses were announced. Benisti describes the days and weeks that followed as a “frenzy of phone calls”, during which time he and others within the company contacted the CEOs and CFOs of as many of its retail partners as possible in an effort to find out the extent of the challenges that each business was facing.
“We wanted to speak to all of the amazing people that have supported us through the years, the large banners and the small boutiques, to better understand their situations,” he says. “We wanted to hear from them what their challenges and pain-points were, and the ways by which we could offer them our help, to assist them in getting through this crisis.”
Photo: Nicole Benisti
Investing in its Partners
In the cases of those who had been most negatively impacted, the retailer, which just recently celebrated 40 years of business, helped finance their operations to alleviate the pressure and burden of rent and other costs that were biting into their results.
For others, Benisti and his team contacted building landlords to renegotiate more favourable lease terms and contracts for the merchants. In addition, the company did what it could to ensure that the supply chains for many of its partners continued to operate in order to keep merchandise flowing into their stores and onto shelves. In some instances, it even offered to hold containers of goods in its warehouses, some of which consisted of the brands and products of competitors. But competition, explains Benisti, was never a consideration for the company when making these decisions. Nor was the amount of its financial outlay.
“We never viewed the impacts of the pandemic as a way to gain competitive advantage within the space. And we don’t consider the financial assistance we provided as a cost to our business, either. In fact, all of the work and support that we provided is really a long-term investment that will help our partners remain successful and strengthen our relationships with them. We strongly believe that the future of the world depends on humanitarian acts, people caring about the health and success of other people. We’re all in this crisis together. It’s no longer about one community, one city, one country, one continent or one business. The entire world is struggling to cope with the impacts of this virus. And we all have to work together in order to get out of this mess and continue moving forward.”
With social distancing and isolation becoming the norm these days because of the COVID-19 pandemic, people have a desire and craving to connect in a more meaningful way.
And Hallmark Canada has found in the past year that people are enjoying that connection even more so today through personal cards.
The company opened a new corporate Gold Crown store in Halifax in November as well as one at the Seaway Mall in Welland earlier this year. Also in February, it plans to open a new store, a relocation, in Regina. Another store in Mississauga will be relocated as well to a much larger space.
Michelle Smye, Vice President, Product Solutions & Independent Retail for Hallmark, said the company has had several new distribution points this year.
Today, the retailer has 106 stores across the country that carry Gold Crown product and 73 of those are traditional stores where it has Hallmark on the bulkhead – 33 are what the company calls Gold Crown departments within a store which is a new concept it launched a few years ago where it looks at other retailers who may be interested in having a portion of their store devoted to this.
Screenshot of Hallmark Canada Instagram
“We’ve had a really good success rate with that,” said Smye.
One of the key partnerships has been with Rx Drug Mart stores in Canada.
“They’ve been a really terrific partner for us. They were just named the number one top growing company in Canada by the Globe and Mail’s Report on Business and we’re thrilled because they’ve positioned Hallmark as their partner of choice in differentiating their stores in the marketplace. So they have several stores now with a full Gold Crown department which might be a 600/700-square-foot space in their stores,” explained Smye.
“We’re really, really excited about that.”
2021 Will See Continued Growth for Hallmark
Smye said the company definitely has plans for growth in 2021.
“We’ve got two existing franchisees that have already been working with us and looking to expand their portfolio in the new year. We’re feeling really good about that unless there’s some major change. Obviously they are aware of the challenges that COVID continues to present but they’re very keen to continue and they think the locations that we’re looking at will be very profitable for them,” she said. “So we’re excited about that.
Shelves of cards inside a Hallmark store. Photo: Hallmark
“And we have several new prospects that have approached us and have expressed interest in opening a new Gold Crown location in 2021. They weren’t too keen in opening in 2020 but are feeling pretty good about 2021. We have yet to confirm those and properly vet them through our process but we’re feeling pretty good about our model and the opportunities that it’s presenting.”
Smye said there have been significant challenges for the overall retail market during the pandemic.
“But we think there’s more of an appetite now than ever for our products because we’re completely centred on helping people connect and make a difference in other people’s lives. Right now we all certainly need a lot of that. As people are hibernating in their homes they’re also looking at ways that they can reach out and touch somebody else. That’s been really significant,” she said.
“Holidays are our most important season. We’ve seen a terrific response from consumers. It was really unanticipated given the situation out there but we introduced the season with a really successful ornament keepsake premiere event in July and then followed up with an ornament debut event in October. That latter weekend event saw significant double digit increases in sales volume year over year. We see that particularly now in this time frame consumers really feel a need for our products.”
This time of year, Hallmark movies are also on television screens across the country and have been an extremely effective marketing tool. The Hallmark Channel’s ‘Countdown to Christmas’, which airs exclusively on the W Network in Canada, reached over 15 million Canadians last year and Hallmark is anticipating that number to continue to climb.
“That definitely translates to an elevated awareness around our brand, and most specifically for authentic Hallmark Channel merchandise that is only available at our Gold Crown stores. Canadians are highly engaged and looking to share with other ‘superfans’. Our movie watching essentials includes everything from barware and dishware, to comfy sweaters, blankets and socks – we’ve even added entertainment options to our collection with games and puzzles,” said Smye.
Retail Insider recently did a photo tour of Toronto’s Yorkville area which is almost entirely shut down until later this month due to the COVID-19 pandemic. There are a lot of changes happening in the area and the following is an update on what’s happening and what’s to come.
When stores reopened in the spring after the first shutdown, The Bloor-Yorkville area was remarkably busy with lineups outside of some stores. Part of the attraction of Yorkville is the restaurants, not to mention beauty services for some of Toronto’s wealthiest residents.
Fast forward to December, and the neighbourhood is much quieter. The Ontario government mandated that as of November 23, retailers deemed ‘non-essential’ would have to shut for 28 days as part of an effort to reduce daily infection rates. There’s been a huge push by retailers large and small to reopen things sooner given the lack of proof that retail is a significant spreader of the coronavirus.
Back to the tour – we start at the corner of Avenue Road and Cumberland Street, which is seeing significant construction as per the photo below.
Cumberland Street. Photo: Dustin Fuhs
On the left in this photo is the new re-imagining of the Park Hyatt hotel, which has delayed opening until 2021. Included will bea new two-level retail component as well as a large Japanese restaurant, a pricey rental apartment building, and a newly rebuilt hotel with a Morton’s steak house facing Prince Arthur Avenue. Directly in front of us is Cumberland at Yorkville Plaza, a 40-storey condominium tower which has been under construction since 2012. The 8,000-square-foot penthouse was asking $25 million several years ago.
Yorkville Lane. Photo by Dustin Fuhs
Yorkville Lane, formerly known as Renaissance Court, recently re-opened after a renovation that saw new shops such as DICE Fruit Bar & Cafe and Zaza join classic staples of the neighbourhood like Alobar and B Hemmings & Co. which we featured in 2018.
Nearby at 154 Cumberland Street, two-level Kibo Secret Garden opened in October of this year. One reader said that the food is excellent at the restaurant that features an omakase menu.
Immediately east of Nespresso is a row of stores on Cumberland Street including Canada’s first SEE eyewear store, luxury fashion retailer Nicolas, Aveda, and Lululemon. When stores were open, the Lululemon store often had lineups of customers waiting to get in. Aveda, owned by Estée Lauder, recently converted Canada’s Aveda stores to a corporately-owned model after parting ways with a licensee that ran the operations for about 25 years.
Cumberland Street. Photo by Dustin Fuhs
Fortunately some retailers survived the first lockdown and a challenging retail environment that has ensued. Kate Spade operates a two-level store on Cumberland Street and women’s retailer Avec Paisir maintains its presence next to it.
More Storefronts on Cumberland Street: There have been some vacancies recently on Cumberland Street, and some movements. Upscale second-hand watch retailer Watchfinder, which was operating in a lower-level retail space at 128E Cumberland Street, is moving to a street level space recently vacated by upscale women’s fashion retailer Corbo Studio.
Sassafraz. Photo by Dustin Fuhs
Sassafraz, one of the go-to restaurants in Yorkville, has taken steps to rebrand as a curbside pick-up dining location.
The Minto Yorkville. Photo by Dustin Fuhs
The Minto Yorkville Park Condos, which by the way has a “walk-score” of 100, is a condo development that is 25-storeys and has a surprise for a new tenant on retail level. Cannabis retailer Tokyo Smoke is said to have leased the corner space and two other retailers were recently in negotiation to open next to it. The 94 Cumberland Street retail podium spans just over 5,000 square feet in total and it was originally leased to a single.
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Pink Tartan store in Yorkville. Photo: Dustin Fuhs
Kumari’s Bloor-Yorkville is an upscale women’s clothing store specializing in elegant cashmere shawls, scarves, and jewelry. On this day, we spotted an impressive display of face-coverings as a window display.
Yorkville Avenue. Photo by Dustin Fuhs
Yorkville Avenue will be seeing significant changes in the years to come. A fire in 2014 destroyed a 150 year old building at 84 Yorkville Avenue that housed optical retailer Cutler & Gross. First Capital Realty owns the site and is looking to redevelop it, possibly for luxury retail as has been the trend on the street.
The Mr Brainwash Pop Up was to be co-hosted by Taglialatella Galleries and Ink Entertainment from October 1 to December 31 and can be visited at 87 Yorkville Avenue, but with the latest lockdown restrictions it will be up in the air if it will ever reopen.
The back end of the Nobis store that faces onto Hazelton Avenue – the photo was taken from the stairway leading into Yorkville Village. The store opened in December of 2017.
The Yorkville Avenue entrance to Yorkville Village, formerly Hazelton Lanes. First Capital Realty invested over $100 million to overhaul the shopping centre which has struggled to maintain foot traffic in recent years.
Yorkville Village Interior Holiday Display. Photo by Dustin Fuhs
The above photo is the ‘Oval’ at the Yorkville Village shopping centre. A Volvo-owned Polstar showroom will open inside later this month and Couple Diamonds recently opened its first permanent store in the world at the centre as well.
We had a very interesting photo walk around Yorkville, and we hope you enjoyed coming along with us. Remember to stop by the area to check out the new Urban Campfire benches. Next week we’ll feature Toronto’s Bloor Street West, aka the ‘Mink Mile’ in a separate tour.
The three-level Victorinox store in Toronto at 95A Bloor Street West has shuttered permanently after operating for more than eight years. The store featured an expansive assortment of Victorinox-branded apparel, travel gear, watches, and Swiss Army knives that the brand is best known for. Victorinox opened the Bloor Street store, located in a corner space at St. Thomas Street, in June of 2012.
The 5,357-square-foot building is being offered for sublease by JLL Canada. The main floor and second floors span 1,787 square feet each, with the third floor spanning 1,783 square feet. The basement level adds an additional 1,783 square feet and the previous tenant used it for back-of-house activities.
Exterior of Victorinox store on Bloor Street. Photo: Craig Patterson
The 95A Bloor building has housed various retailers over the years. In 1956 the building was renovated to house a Georg Jensen storefront – Georg Jensen is a highly respected silversmith from Denmark that once had several stores in Canada. In 2005 Sporting Life moved into the space for a time, followed by tenants including Far Coast Café and eyewear retailer ILORI.
Victorinox was founded in 1884 in Switzerland as a knife manufacturer. In 1909 founder Karl Elsenser named the company ‘Victoria’ in honour of his late mother. In 1921 the company adopted the Swiss coat of arms for its logo and changed its name to ‘Victorinox’, a combination of “Victoria” and “inox”, an abbreviation for acier inoxydable, the French term for stainless steel. In 2014, Victorinox acquired the TRG Group from Centric Group. For several years, TRG Group was the Victorinox licensee for the manufacturing of luggage and travel oriented products. Victorinox integrated TRG Group in the company as the Victorinox Travel Gear division. In 2017 Victorinox decided to close the apparel division with the purpose of focusing in other core product lines.
Hoarding around new Club Monaco store at CF Carrefour Laval. Photo: Maxime Frechette
Club Monaco Opening Store at CF Carrefour Laval
Iconic Canadian-founded fashion brand Club Monaco will open a store this month at CF Carrefour Laval near Montreal. It’s the first new Club Monaco store to open in recent memory in Canada.
The store will replace Vero Moda in a 3,177-square-foot space near La Maison Simons. We’ll report back when the store opens, as we’re not yet aware what Club Monaco’s new store concept will look like. Club Monaco is marking 35 years in 2020.
Map of CF Carrefour Laval showing location of new Club Monaco store
CF Carrefour Laval is considered to be the leading suburban shopping centre in Montreal in terms of brands and per square foot productivity.
Club Monaco was founded in 1985 by Joe Mimran, Saul Mimran, and designer Alfred Sung. The company was bought by Ralph Lauren in 1999. Club Monaco is known for its well designed casual clothing. Club Monaco operates stores throughout Canada primarily in shopping malls and the retailer also has several street front and outlet stores. Club Monaco also has stores in the United States, UK, China, Taiwan, Hong Kong, Macau, Singapore, South Korea, and Sweden.
Exterior of Läderach store in the CF Toronto Eaton Centre. Photo: Läderach
World Chocolate Master Elias Läderach Fills Winter Holiday Party Void With Exclusive Virtual Swiss Chocolate Factory Experience
Elias Läderach
Chocolate lovers looking for new ways to celebrate and connect safely this winter holiday season can virtually bring the World Chocolate Master, Elias Läderach, into their homes for an exclusive Swiss Chocolate Factory tour and tasting.
For the first time, the leading premium Swiss Chocolate retailer, Läderach, will virtually transport viewers to their chocolate factory in the Swiss alps for a behind-the-scenes look at how their hand-crafted holiday chocolate creations are made from the bean-to-the chocolate shop. At the end of the tour, Elias will guide a holiday chocolate tasting. The virtual event, available in English and German, will kick off on November 28th and be accessible to view until December 31st at www.laderach.live.
“This holiday season, we could all use some extra sweetness to indulge ourselves with deliciously fresh chocolate,“ said Elias Läderach, World Chocolate Master. “My brother and I are excited to host chocolate lovers from around the globe to our chocolate factory in Switzerland for a fun, immersive way to help kick-off their holiday celebration and change the way they taste chocolate.”
IKEA Canada Launches New Collection Locker Initiative in GTA
IKEA Canada has launched the company’s first-ever IKEA Collection Lockers in North America at its four Greater Toronto Area (GTA) stores in Burlington, Etobicoke, North York, and Vaughan.
The new $5 flat rate Collection Locker service enables customers to select and buy purchases online and pick up their goods 24/7, without having to enter the store.
IKEA Collection Lockers. Photo: IKEA
Located in store parking lots, the new service is one of the many ways IKEA is transforming to create an easier and more convenient shopping experience. The new service features barrier-free access with a low-mount screen and lockers to fit orders of any size
The home furnishing retailer is moving with speed to meet the rapidly changing needs and expectations of customers, always striving to offer a seamless retail experience wherever and whenever customers choose to shop. In addition to the launch of Collection Lockers, this year IKEA introduced new services including contactless Curbside Click & Collect and remote planning for Kitchens, Bathrooms, Wardrobes, and Offices.
Health and safety continue to be a top priority for IKEA Canada. Collection Lockers provide an additional, contactless way to shop and remain open outside IKEA Etobicoke and North York stores, which have temporarily closed to customers. Curbside Click & Collect also remains available for customers to pick-up orders placed online at these stores.
Interior of new Gosselin store. Photo: Gosselin
Gosselin Announces the Opening of a New Store and a More Than $2 million Investment in Downtown Montreal
Gosselin, the largest photo and video equipment retailer in Quebec and one of the largest in Canada, has opened a new store in downtown Montreal. This new sales outlet will sit at the corner of Ste-Catherine and Bleury Streets, at the former location of Musique Plus. With a team of 15 employees, the store will offer a wide selection of photo and video products, a classroom, equipment rentals, used equipment purchasing and sales, and a dedicated photo printing area.
Interior of new Gosselin store. Photo: Gosselin
The 5,000-square-foot space will be Gosselin’s fifth store in Quebec. This opening marks a milestone in Gosselin’s growth strategy. The investment of more than $2 million is expected to boost Gosselin Photo’s revenue by more than 25%.
New Luminaire Authentik showroom in Toronto. Photo: Luminaire Authentik
Custom Lighting Brand Luminaire Authentik Opens in Toronto
Innovative custom lighting company Luminaire Authentik has opened a new showroom in Toronto’s Leslieville neighbourhood at 1027 Queen St. E. – the first for the company outside of Quebec.
Founded in 2015 by Québécoise entrepreneur Maude Rondeau, Luminaire Authentik has become known for its Scandinavian aesthetic, made-in-Canada craftsmanship, and its’ limitless customization options. Luminaire Authentik puts creativity and personalization in the hands of clients by providing a 360-degree design experience —from initial hand-drawn designs to the manufacturing and production of the final product in their Eastern Townships, QC facility. Within each category (pendant, wall-mount, free-standing, and outdoor) there are infinite customizable options, including shape, finish, colour and more. The company even offers a 3D mix & match concept tool to help bring each combination to life.
Luminaire Authentik’s Toronto showroom opened last month and is now available for private appointments, limited to one client at a time for a completely personalized experience. In the wake of the pandemic, the company has also introduced fully virtual consultations for those who aren’t able to visit the showroom in person. Retail stores in Toronto are expected to open December 2020.
Exterior of new Moncton Planet Fitness location. Photo: Planet Fitness
First Planet Fitness in Atlantic Canada Coming to Moncton
In celebration of its fifth anniversary in the Canadian market Planet Fitness, one of the largest and fastest-growing global franchisors and operators of fitness clubs, with more members than any other fitness brand, announced the opening of a new club at 80 Mapleton Rd.in Moncton. This will be the first Planet Fitness club to enter the city of Moncton, and the first-ever club in the Atlantic region.
The new Moncton location is approximately 21,000 square feet, and will offer brand new cardio machines, new fully-equipped locker rooms with day lockers and showers, many full-size flat-screen televisions, a 30-minute express circuit, two massage chairs, two hydro lounges, two hydro beds, stand up and lay down tanning beds, and one Total Body Enhancement booth. The club will be open and staffed 24 hours, seven days a week. The new location is due to officially open its doors in late December 2020
Planet Fitness is currently accepting memberships during its presale for just $1 down online at planetfitness.ca and on-site at the presale office located next door to the club. Members can join through December 16, 2020 for just $1 down and then as little as $15 a month, plus a $39 annual fee.
Exterior of Eataly in the Manulife Centre on Toronto’s Bloor Street. Photo: Craig Patterson
The Embassy of Italy in Canada, the Italian Trade Commission in Toronto, and Eataly Partner to Promote Eat, Shop, Learn Italian-Style
The Embassy of Italy in Canada, the Italian Trade Commission in Toronto, and Eataly Toronto have announced a joint project as part of a worldwide initiative of the Italian Ministry for Foreign Affairs and International Cooperation. The campaign’s focus is to highlight the unique characteristics of “Made In Italy” products and, above all, their authenticity and the distinctive traits that make them stand out in the minds of Canadian consumers.
The partnership was announced to coincide with the Fifth Annual Week of Italian Cuisine in the World (November 23-29, 2020) which was dedicated this year to the memory of Italian food writer Pellegrino Artusi, also known as a father of Italian Cuisine and author of ‘Science in the Kitchen and the Art of Eating Well’.
Eataly will highlight both the products available in-store and new entries that will complement the richness, diversity, and quality that Eataly has been synonymous with for many years. Consumers will learn about Italian products through seminars and tastings held at the Eataly Toronto location. The promotion will kick off in January and span all of 2021. Information on the campaign, products, and activities will be forthcoming on Eataly’s website, digital channels, and in-store.
Retail restructurings have drawn a lot of attention in recent months, with insolvency filings by big-name retailers such as Aldo, Reitmans, Laura, DAVIDSTea, and Mountain Equipment Co-op. Many more are hanging on by just a thread and will need to obtain creditor protection imminently.
Join Insolvency Insider for the informative half-hour discussion in which an expert panel looks at how retail restructurings have changed in 2020 and what the new retail restructuring playbook is shaping up to be. Covered, among other things, include the following:
Financing structures retailers are turning to in order to increase liquidity and avoid the need to file for creditor protection for as long as possible.
New measures of relief that are being requested and granted by the courts, including forms of rent relief, landlord charges and reverse claims processes.
Canadian landlords’ current appetite to work with retailers, the concessions they have been making in restructurings and the panel’s expectation that landlords will start taking a more activist role in retail insolvencies in order to, among other things, protect their co-tenancy provisions.
The latest strategies for liquidating inventory, including changing sales guidelines and liquidation services agreements.
The biggest obstacles that need to be overcome in retail restructurings in the current environment, including:
challenges with moving to an online strategy; and
planning for and dealing with a potential second wave and other pandemic-related uncertainties.
The panel’s predictions on what the next 6 to 12 months will hold for retailers.
Insolvency Insider logo
Panelists include:
• Martin Rosenthal, Eastern Canada region Managing Partner – Strategy and Transactions, Ernst & Young Inc.
• Sandra Abitan, Montreal Office Managing Partner and Insolvency & Restructuring Partner, Osler, Hoskin & Harcourt LLP
• Bradley Snyder, Executive Managing Director, Tiger Capital Group, LLC
Register now to be involved in the timely discussion which will be invaluable to anyone that works in, or has clients in, the retail industry. Insolvency Insider will continue to run webinars during this challenging time, as trends and legal updates continue to change.
In the wake of COVID-19, retailers have had to navigate a tidal wave of logistical and operational challenges. While Statistics Canada reported that Canadian retail sales increased 23.7% in June ($53 billion) to pre-pandemic levels—a hopeful turn for the industry—reduced in-store traffic (for some brands) and a jump in online shopping further underscores the need for stronger ecommerce operations moving forward. In fact, a COVID-19-focused Deloitte study found that more than half (52%) of the Canadian consumers surveyed said they’re more likely to buy online, and Statista has previously forecasted that Canadian consumers will increasingly rely on the internet to place orders, with nearly 24 million users expected to shop online by 2021.
Alex Sampera
Successful brands today are investing in either pure online or holistic omnichannel strategies. Without a vaccine in place and therefore no definitive “end” to the pandemic, retailers that have yet to adapt will face greater issues in the year ahead and even further down the line. For those focused on omnichannel success, reimagining sustainable business models that grow revenue and keep costs down requires a blend of traditional retail and ecommerce strategies, tactics and technologies, including in the supply chain where major roadblocks can prove detrimental and costly.
One way to address the supply chain challenge is through a simple, yet often complex resource: data.
Siloed Supply Chain Data is a Barrier to Success
Since retail and ecommerce teams often function independently from each other, the data these teams use to measure and optimize business success is also inherently compartmentalized. Take, for instance, data on transportation performance across modes. The rise in ecommerce fulfillment volumes has left some retailers spending drastically more on transportation as a percentage of sales. Ecommerce shipping modes are significantly more expensive than their brick and mortar equivalents, which leaves retailers absorbing much more cost to maintain revenues. As a result, understanding this cost is an obvious imperative for retailers. Layer in omnichannel transportation modes to replenish stores, store fulfillment, BOPIS, etc., and this becomes a difficult task. With disparate sources of transportation data that typically require significant manual manipulation to generate a meaningful level of supply chain visibility and insight, it’s almost impossible to calculate the actual cost to serve customers in different channels.
As retailers continue to adapt, they need to be much more strategic in leveraging technology to support multimodal transportation strategies and evaluate mode choices. For example, to create more agile, low-cost store distribution operations, retailers must rely more heavily on transportation and 3PL-centric services to move inventory from distribution center (DC) to store. Now, parcel and pool distribution might be better options for cost and service. Pool distribution technology leverages economies of scale through multiple retailers using the same transportation services to make deliveries to the same location. Some retailers even leverage their pool providers for ecommerce fulfillment to again improve capacity and responsiveness, but also to minimize store inventory and transportation costs. With one platform to track the movement of goods over both parcel and pool networks, retailers have real-time supply chain visibility into any store replenishment shipment (down to the item level) from the moment inventory leaves the DC all the way through to receipt at the store.
Connecting Teams and Their Supply Chain Data
By managing transportation holistically and driving visibility across sales channels and transportation costs, retailers are better positioned to increase overall omnichannel profitability. This requires much stronger collaboration between traditional retail and ecommerce disciplines and working with one source of data that aggregates carrier data across different supply chain operations. In doing this, brands can better track end-to-end transportation performance and gain valuable insights.
To support these efforts, some retailers are implementing automated notifications in their supply chain operations. While customers are often notified of delivery delays during the last mile, these types of alerts can extend further back in the supply chain to identify issues earlier and increase visibility into all stages of the distribution cycle. Insights based on the ability to track specific transportation metrics such as origins, cartons, and touches per order, as well as performance-based metrics tied directly to distribution channel (i.e., DC to consumer vs. ship from store to consumer) also help retailers make more data-driven decisions. With more detailed and granular data that is easily accessible, including SKU-level transportation cost information, retailers can more accurately account for product markup or shipping fees for various service levels, understand loss or profit by product category, and determine cost and revenue across areas like sales channel, carrier, geography, and service level.
The stress exerted on the retail industry by COVID-19 requires companies to have supply chain operations that are even more agile than before. While the rise of ecommerce has undoubtedly opened new opportunities for brands, the pressure is on for retailers to set their logistics operations up for success. By unifying data sources for greater supply chain visibility, companies will be able to streamline omnichannel execution while lowering costs during these unprecedented times.
Danish Jeweller ‘Pilgrim’ Unveils 1st Permanent Canadian Store in Montreal
Danish jewellery brand Pilgrim has opened its first permanent storefront in Canada in downtown Montreal. It follows last year’s openings of two Pilgrim pop-up stores in the Montreal area that proved successful.
The new Montreal Pilgrim boutique is located at Place Montreal Trust located on Ste-Caterine Street. The boutique is 504 square feet in a prime corner retail space next to a Swarovski jewellery store. Place Montreal Trust is part of what would normally be a high-traffic area amongst office buildings, hotels, and department stores. An initial five-year lease was signed as part of the lease deal for the Pilgrim space, spelling confidence in the longer-term outlook for the brand in the Quebec market.
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Exterior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Interior of Pilgrim store in Place Montreal Trust. Photo: Maxime Frechette
Annemette Markvad and Thomas Adamsen founded Pilgrim in 1983. The product was initially sold at music festivals and music is still an inspiration with many designs. The “Scandi-cool approach to design” is found in a range of jewellery, watches, and sunglasses. Prices are very reasonable with many items priced under $100.
Last year Pilgrim opened two pop-up stores in the Montreal area. One was at Place Montreal Trust in a different space near the current store. The other opened at the Quartier DIX30 commercial centre in Brossard with a one year lease.
Pink Tartan Closes Yorkville Flagship
Pink Tartan store in Yorkville. Photo: Dustin Fuhs
Toronto-based fashion brand Pink Tartan is clearing out its Toronto flagship store at 77 Yorkville Avenue. The store had operated in the converted heritage building since 2010 in a space formerly occupied by the Paisley Shop.
The 3,500-square-foot store contained a mix of Pink Tartan fashions and some vintage luxury designer products from brands such as Chanel. The Yorkville Avenue building includes a heritage home built in 1867 as well as a contemporary addition facing onto Bellair Street. We’ll soon announce the replacement tenant for the retail property which was put on the market earlier this year.
Pink Tartan was founded by Kimberley Newport-Mimran and her husband Joe Mimran in 2002. The upscale women’s ready-to-wear collection has been carried in stores such as Hudson’s Bay. Pink Tartan also had a store at Bayview Village which closed several months ago.
The remaining brick-and-mortar Pink Tartan location is an outlet store at the Outlet Collection at Niagara near Niagara Falls. Pink Tartan also has an e-commerce site.
Uniqlo Opening 2nd Montreal-Area Store at CF Carrefour Laval
Rendering of Uniqlo store at the Montreal Eaton Centre. Rendering: Uniqlo
Japanese fashion retailer Uniqlo announced on Wednesday that it will open its second Montreal-area store at CF Carrefour Laval. It is expected to open in a retail space vacated by Renaud Bray books which is about 20,000 square feet.
It follows the opening of Canada’s largest Uniqlo store in downtown Montreal this fall. The two-level flagship at Montreal Eaton Centre spans more than 40,000 square feet.
Photo: Maxime Frechette
The CF Carrefour Laval Uniqlo store will be the 15th location in Canada. Uniqlo opened its first store in Canada at CF Toronto Eaton Centre in Toronto, followed by Yorkdale. Uniqlo now operates eight stores in the Greater Toronto area, four in the Vancouver area, one at West Edmonton Mall that opened last year as well as the downtown Montreal flagship.
Two Coffee Concepts Announced for The Post in Vancouver
Exterior of ‘The Post’ in Vancouver. Rendering: QuadReal
QuadReal is redeveloping the former Canada Post hub in downtown Vancouver. Called ‘The Post’, the massive development will include 185,000 square feet of retail space which will include a 45,000-square-foot Loblaws City Market store and a 25,000-square-foot food hall, among other tenants. QuadReal has announced that two new coffee shops will open at The Post when it is finished in summer/fall 2023.
Calgary-based Deville Coffee will occupy 1,100 square feet located in The Post’s Atrium. Deville is a popular coffee chain with eight locations in Calgary. The Post location marks the first for the B.C. market. Jason Cunningham, Cofounder of Deville Coffee said, “We are extremely excited to be part of The Post, and we felt it was the perfect showcase to introduce Deville Coffee to Vancouver. It is the first lease we have signed in the province, and it represents a great first step for us, positioning our brand in the market”. Besides beverages such as coffee, the café will feature pastries delivered fresh daily from Vancouver’s finest bakeries, and a menu of sandwiches and other goods.
Buro The Espresso Bar beverages. Photo: Buro The Espresso Bar
Deville Coffee shop. Photo: Deville Coffee
Vancouver-based Buro The Espresso Bar will also open at The Post in the Atrium, leading into the food hall. It was founded in Vancouver’s Gastown area and has been featured in historic buildings that revived and energized their neighboruhoods. For The Post, Buro will design finishes engineered and tailored to match The Post architectural features and feature exclusive sustainably grown coffees.
The Post’s largest tenant will be Amazon, which will employ several thousand people in over 1.1 million square feet of space.
Noize Opens 2 Montreal-Area Pop-Ups as it Looks to Toronto
Exterior of Noize store at the Rockland Centre in Montreal. Photo: Noize
Montreal-based vegan outerwear brand Noize has opened two pop-up stores near Montreal. One is at Centre Rockland in Montreal spanning 1,427 square feet and the other is at Quartier DIX30 in Brossard spanning 1,752 square feet. Both will remain open until March 2021 and the leases could be extended into next summer.
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Interior of Noize store at the Rockland Centre in Montreal. Photo: Noize
Interior of Noize store at the Rockland Centre in Montreal. Photo: Noize
Interior of Noize store at the Rockland Centre in Montreal. Photo: Noize
The pop-ups are being used to test the market and showcase the brand’s FW 2021 collections, and the Toronto area is next in line for Noize pop-up stores. The company said that a tangible experience is important while also offering a robust online offering.
Noiz uses PETA approved vegan furs, vegan wool and leather alternatives while using recycled fill and recycled plastic in designs. Jackets are water and wind resistant. Prices are very reasonable compared to competitors. Most jacket styles on Noize’s website are under $300, and many are currently on sale.
Brokerage Oberfeld Snowcap represented Noize in the lease deals.
Competition is fierce in the outerwear space in Canada. Wuxly Movement and Norden Project both make vegan outerwear at a higher price point when compared to Noize. Canada Goose, Moose Knuckles, Mackage, True Outliers, and others, with jackets more in the $1,000 range, use real fur and down.
Circle Craft Christmas Market Encourages British Columbian’s to Shop Local
Circle Craft Christmas Market
With craft fairs across the British Columbia being cancelled or going virtual, including the popular Circle Craft Christmas Market, Granville Island’s own Circle Craft is supporting struggling local artists who have lost income due to the lack of in-person markets with their new #ShopYourCircle campaign. Challenging holiday shoppers to do all their gifting from local artists and businesses within 50km of their homes, the campaign features local artists, including:
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Original ceramics by Yookyoung Yong
Original pottery by Mary Fox
Original jewellery by Chi Cheng Lee
Original jewellery by Minori Takagi
Yookyoung Yong: A Korean ceramics artist based in Vancouver, Yookyoung creates handcrafted clay pieces set to inspire. Several of her cups and bowls are currently used in local Marriott restaurants.
Chi Cheng Lee: Working with sterling silver, gold, and semi-precious stone, Chi designs and crafts her unique jewellery pieces in her West Vancouver studio while combining traditional Eastern themes with Western modernism.
Minori Takagi: Born in Shizuoka, Japan, glass artist Minori Takagi uses Tombodama (glass beads created through ancient lampworking techniques) to create one-of-a-kind pieces, including her fan-favourite lilly earrings and necklace set.
Mary Fox: As a world-renowned self-taught potter, Ladysmith’s Mary Fox creates both functional and purely decorative works that focus on expressing the beauty and strength of pure form. She has recently released a new book entitled “My Life As a Potter” and is currently working on a legacy project for young ceramics artists.
Supporting local has never been so important. By shopping handcrafted and one-of-a-kind gifts made from local artisans, you can feel good knowing you are directly supporting people in your own community during this difficult time. Find a wide variety of gifts ranging from $20 and up in the Circle Craft Gallery, including handcrafted jewellery, homegoods, ceramics, and much more.
An American business executive says Canadian mall owners are well-positioned to acquire key retail tenants in their portfolios in the months ahead to keep them operating rather than face the prospect of closure.
Bradley Snyder, Executive Managing Director of Tiger Capital Group, who is based in Boston, said large Canadian landlords are a very finite group.
“I deal with them day in and day out with things like signage and going out of business sales and we know them well. And they’re also backed on the one hand by Ontario teachers, OMERS and Caisse de dépôt and RioCan public. You’ve got landlords, a finite group, with significant backing behind them notwithstanding that there’s been layoffs with those landlords,” said Snyder.
Bradley Snyder
“They’ve got large resources behind them. And what we’re seeing in the States is Simon Property Group is coming in and acquiring various of their significant tenants and the reason they’re doing that is to protect their co-tenancy provisions. So things like Aeropostale, Brooks Brothers and there was interest in JC Penney. I think Brookfield and Simon were involved in that.
“But even on the Canadian landscape we’ve seen it. Years ago, maybe five years ago, we saw Cadillac come in and they did a DIP (debtor in possession) facility to Laura Shoppes and that was unusual back then. But I just see more interest in that now and the reason Cadillac did it then was that Laura Shoppes wanted to close a good number of stores and the quid pro quo was that we will give you the DIP financing but you will not close any stores in Cadillac properties. You’ll close other stores. There was a reason they did it and there are strategic reasons on the Canadian retail landscape now as all of these landlords are looking at their retail properties and figuring out the best way to basically salvage them. And one of the tactics we’re seeing in the States, and it makes a lot of sense in Canada, is for these landlords to come in and take more aggressive positions vis a vis the retailers.”
Snyder said that if a landlord comes in and protects a significant player they’ve got to look at the leases, at the co-tenancy provisions. Let’s say there are two players in a mall that if they go out of the mall then all the specialty stores have the right to terminate their leases. If that’s the case, landlords want to do what they can to protect those two major players so they don’t leave the mall and trigger the co-tenancy provisions in all the other leases.
“It’s really a defensive play and that’s the major advantage. I’m not suggesting that somebody like RioCan is in the business of running retailers. They’re not. But on the other hand if they can co-invest with a group that consists of an operating company to run the retailer and somebody to buy the intellectual property, and exploit the intellectual property, and they can help salvage by changing the terms of the lease or investing in that retailer, they can help salvage that lease so that others aren’t triggered, that’s a huge advantage for them,” he said.
Snyder said he has been involved in Canada since 1998 and did the final Eaton’s financing and the final Eaton’s liquidation. Over the years, he’s been involved in many retail acquisitions in Canada.
Eaton’s Closing in Burlington. Photo: Eaton’s
“We know the underlying value of assets and it’s not just retail assets. It’s also industrial . . . With that we do multiple things. We provide all the asset based lenders valuations off of which they lend. We have a liquidation business off of which we write guarantees and we write cheques. Not just retail but also commercial, industrial, oil and gas, etc.,” said Snyder.
“We have a finance business where we generally do the more aggressive last out financing. So an ABL provider may come in and put 50 cents down and we may do eight cents behind them but it provides additional liquidity to the borrowers.
“All these things are inter-related. It’s knowing the value of the assets and we buy and we sell and we finance.”
As more retailers face insolvency and possibly bankruptcy, Snyder said Canadian landlords are going to become more interested and involved in the process.
During that webinar, Snyder said Canada is going into a stage of uncertainty with many wondering if businesses are going to shut down or stay open.
He said landlords are taking a more activist role in the bankruptcies and insolvencies. He cited the fact that Brooks Brothers was acquired by Simon and a brand company.
“I expect that will happen a lot more in Canada because the landlords, few in numbers, are backed of course by OMERS and the large pension funds and have the cash to do it versus in the States there have been several bankruptcies of REITs in the past week. So Simon is certainly flush with cash, but not all of the landlords are.”
Snyder noted that there’s “no one in the towers downtown in Montreal or Toronto. Those stores are hurting. There’s just no traffic.”
Hudson's Bay store in Les Jardins Dorval. Photo: Henry MacNeil
The Hudson’s Bay store at Les Jardins Dorval in suburban Montreal will be closing in September of 2021. It’s the third confirmed closure for a Hudson’s Bay store in Canada this year, following the announcements that the downtown Edmonton and downtown Winnipeg Bay stores would also shut forever.
The 103,576 square foot two-level Les Jardins Dorval Bay department store location has been operational for about 66 years. On April 29, 1954, the space opened as an upscale Morgan’s department store. In 1969 the store was destroyed by a fire and it was rebuilt in 1970 under Hudson’s Bay Co. ownership — HBC acquired the Morgan’s chain in 1960 and converted Morgan’s to the Bay in 1972.
Closed sign on The Hudon’s Bay at Les Jardins Dorval. Photo: Henry MacNeil
When Jardins Dorval opened in 1954, the strip mall had 35 stores and was anchored by Morgan’s and a Steinberg’s supermarket. Ivanhoé Cambridge was the developer of Jardins Dorval which is now managed by CentreCorp Management and houses about 60 retail spaces, many lacking tenants. Anchors include an 80,808 square foot Walmart store and a 53,032 square foot Maxi store.
Future of Jardins Dorval in Question With Hudson’s Bay Shuttering
The future of Jardins Dorval is in question with the shuttering of its Bay department store. Lease plans indicate numerous vacancies. Les Jardins Dorval is the oldest shopping centre on Montreal’s West Island and spans about 365,000 square feet. The southern portion of the Jardins Dorval property will be redeveloped with multi-family residential buildings and there’s a possibly that the existing shopping centre could eventually be demolished for further site intensification.
Hudson’s Bay has been in the news recently for a variety of reasons. The company hasnt’ been paying rent for many of its stores in Canada since April, claiming that shopping centre landlords are not maintaining “first class properties”. Litigation is ongoing, with HBC and landlords both suing. Some landlords have attempted to evict Hudson’s Bay from some properties and some judges have granted injunctions which include Hudson’s Bay having to pay some outstanding rents in order to continue with the litigation.
In October we reported that Les Jardins Dorval’s owner, Toronto-based Dorval Property Corporation, was suing the Hudson’s Bay Company for about $660,000 for unpaid rents. The monthly rent that HBC was paying for the Dorval building was about $60,000 per month. A judge in Quebec recently ordered HBC to pay $120,000 for October and November 2020 rents, and that rent be paid moving forward — it would appear that won’t be for long, however.
Last week, Hudson’s Bay’s president Iain Nairn said in a webinar with Retail Council of Canada that Hudson’s Bay is looking to downsize its physical retail footprint while expanding its online offerings while looking to redevelop some store properties. Some existing Hudson’s Bay stores will be downsized to become something of a ‘showroom’ concept with some retail space being converted for online order fulfillment. Hudson’s Bay also recently announced that it launched a real estate development arm, and the company is looking at some properties with an eye to making money from non-retail uses. In downtown Montreal, the flagship Baie store could see the addition of a residential tower, for example, which would create a built-in customer base for the adjacent Hudson’s Bay store.
We’ll continue to follow this story.
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