General Assembly subscription user unboxing delivery of frozen pizzas. Photo: General Assembly Pizza
Toronto-based General Assembly Pizza has launched what it describes as the world’s first pizza subscription service as it also plans to aggressively expand its product offering in the near future by opening a new concept in the market.
“Since opening our doors in 2017, we have pushed for the best guest-experience possible — that’s why our dough is 100 percent naturally leavened, that’s why we have a purpose-built 400-square-foot pick-up and delivery area, and that’s why we’ve launched a direct-to-consumer subscription-based ecommerce platform,” said Founder & CEO Ali Khan Lalani.
“In 2020, providing the best guest experience means General Assembly Pizza has to be more than a restaurant. I’m proud to say that after almost six months of planning, many roadblocks, and countless pivots — all while maintaining our day-to-day restaurant operations amidst a pandemic — we have done it. Along the way, we’ve connected more than ever with our community, and we look forward to bringing a little of that original GA guest experience back into their day-to-day lives, at home.
“We’re very, very excited about the launch of the subscription business and we think that premium finish at home, premium cook at home, products are a path forward and a way forward for Canadians to enjoy dining out at home. Restaurant quality food. Restaurant driven food in a safe, sustainable way at home however they choose, on their time.”
GENERAL ASSEMBLY PIZZA SUBSCRIPTION SERVICE PLANS ONTARIO EXPANSION FOR 2021
The GA pizza subscription offers free home delivery for stacks of 4, 6, 8, or 10 pizzas, from as little as $39 per order and as low as $9 per pizza. The service is available in Toronto (i.e. all postal codes that start with the letter ‘M’), with plans to expand throughout Ontario in 2021. The service was launched at gapizza.com
The direct-to-consumer subscription model builds on the successful launch of GA’s premium frozen pizza line, developed by GA Executive Chef Curt Martin, which features six 100 percent naturally leavened pizzas that cook at home in five to seven minutes.
GENERAL ASSEMBLY SUBSCRIPTION BOX DELIVERY. PHOTO: GENERAL ASSEMBLY PIZZAGENERAL ASSEMBLY SUBSCRIPTION USER OPENING DELIVERY BOX OF PIZZA. PHOTO: GENERAL ASSEMBLY PIZZAGENERAL ASSEMBLY SUBSCRIPTION USER OPENING DELIVERY BOX OF PIZZA. PHOTO: GENERAL ASSEMBLY PIZZA
“Food quality and forward thinking is what drives our team. Whether it’s made-to-order or frozen, our pizza is entirely handmade, chef-prepped and fired in our hand-built, made-in-Italy brick ovens,” said Martin.
Subscribers to the subscription service can choose their monthly stack size and select their pizzas. Pizzas are delivered to a subscriber’s doorstep in a temperature controlled recyclable box that declares “pizza night, reinvented”. Contactless delivery and package tracking ensure customers know exactly when to expect their order.
GENERAL ASSEMBLY PIZZA BEING PREPARED AT HOME. PHOTO: GENERAL ASSEMBLY PIZZAGENERAL ASSEMBLY PIZZA BEING PREPARED AT HOME. PHOTO: GENERAL ASSEMBLY PIZZAGENERAL ASSEMBLY PIZZA BEING PREPARED AT HOME. PHOTO: GENERAL ASSEMBLY PIZZA
Lalani said the business took on a new mantra, a new wave, during the current pandemic. GA has one location in downtown Toronto on Adelaide Street West.
“Now that we’re in the middle of the pandemic we’ve all had the chance to assess our goals. We think that a very small 500-600-square-foot takeout, delivery type model is going to be the way, the path forward for us. No dining room seating. And we’d just focus on having our own CPG (Consumer Packaged Goods) freezer that sells all of our consumer package goods and our brand new frozen pizza line as well as pizza kit, dough, sauce, and cheese, and hot fresh pizzas which we’ve been well-known for for the last three years,” he said.
“Our new model is going to be one where it’s very different than our current. The new model will have a frozen section and a kit section so if people want to make pizza at home everything you need would be there . . . We’ll also be able to do pick up through an app and we’ll also be able to do delivery. So the current model of fill the restaurant with people, people pay, people leave, repeat has been flipped on its head and now we think that we’ll have four interesting ways for people to engage with our brand and four ways for our business to generate revenue.”
Lalani said the company is actively looking for locations in Toronto for that model. The company’s Consumer Packaged Goods, finish-at-home frozen pizzas are also in about 10 grocery stores in southern Ontario.
Retail is a sector with fine margins and business managers know that small changes can mean a great deal when it comes to the bottom line.
A perennial issue is the management of cashflow and this has been an area that has come under even greater scrutiny over the last few weeks.
The truth is though that if managers don’t know what is happening then they can’t manage their cashflow and if they can’t manage their cashflow then they can’t efficiently manage their business.
These twin areas of concern are central planks in the FreshBooks offering and retailers are finding that the accounting software can make a real difference to the way they do business.
One of the key features of FreshBooks is the ability to collect cash at the click of a button whether that be for in-person, over the phone or online sales.
Retail has evolved over the last few years and having the ability to receive payments online, through payment buttons on socials such as Facebook and through no-invoice checkout links all adds to the flexibility that the modern retailer needs.
Bricks and mortar retailers need access to a quick and simple method of accepting payments and FreshBooks offers an app-based virtual terminal which allows their teams to take payment wherever they are in the store.
We have also seen many retailers institute a phone sales & delivery service in response to the COVID-19 crisis and using the FreshBooks virtual terminal for called-in orders makes the channel more viable and easier for the customer.
For retailers who run credit accounts the availability of a simple payment method makes a big difference as anecdotal evidence suggests that providing people with an easy way to pay speeds up the process, meaning that retailers see the cash hit their account quicker.
This is especially important for retailers because having cash in their bank account means that many more options are available for short-notice wholesale deals and after all, we’d all prefer to have cash in our bank account than that of our customers.
Strategically it makes sense to ensure that you are holding as much cash as possible, especially during uncertain times and this is where FreshBooks comes in.
The Accounting Software Landscape has Changed
Unsurprisingly the COVID-19 crisis led to a huge change in the way that companies organised their workers with a jump from only 10 percent of the population working from home to over 40% during the lockdown.
Whilst retail staff have to be in place to serve their customers, this is not necessarily the case for back office workers which has resulted in more businesses looking towards cloud accounting products.
Where before employers were happy to have a desktop solution to manage their accounts, they now have to be more creative around online software to handle their sales and finance administration.
Having an accounting system in place that is available 24/7 and can be accessed from anywhere with internet or cell phone coverage is an incredibly valuable resilience factor in a time of uncertainty.
FreshBooks gives finance staff the ability to work from home, employees to add information using an app and managers the option of checking reports online and from this point of view it is certainly a winner.
In Retail, Knowledge is Power
Understanding what is going on in the business is incredibly powerful and having access to information that is as close to real-time as possible is the way to go.
FreshBooks is considered to be one of the best accounting software offers out there especially for freelancers and SMBs, and one of the reasons for this is their extensive reporting ability.
Being able to see what is selling well, which customers owe money and how much cash is in the bank are all pivotal to smart management.
Efficiency is really important when managing a retail business and there’s no point in making extra gross margin by buying well and then wasting it by paying someone to handle the accounting.
This is where integrations come in and with an impressively large roster of third-party apps, FreshBooks helps retailers to account for and report on everything from online sales to memberships and regular payments.
With online integrations to banks, merchant services such as Stripe, EPOS and CRM systems Freshbooks provides virtually instant reporting on sales and receipts and of course cash.
One of the most helpful features is the ability to automate many of the routine tasks using Zapier to link between apps meaning that the manager is left to get on with the business of retailing.
Having the information at your fingertips is clearly the way to go for Canadian retailers.
J.CREW STORE AT CF TORONTO EATON CENTRE. PHOTO: J.CREW
And then there was one: American fashion retailer J. Crew is shutting down two of its remaining three stores in Canada, possibly signalling the end of the brand’s full-priced physical stores in this country.
A sign on the door of the J. Crew store at 110 Bloor Street West in Toronto said that the store will be shutting down permanently on Saturday, September 26. However on Wednesday September 23, the store was already shut with its windows papered over.
In Vancouver, a sign at the J. Crew store at 1088 Robson Street said that the store will close on September 28. After both are closed, the only remaining full-priced J. Crew store in Canada will be located at Toronto’s Yorkdale Shopping Centre. A Yorkdale store employee says they’re not aware of any plans to close that unit as of yet.
Yorkdale is where J. Crew got started in Canada when the retailer opened a store there in 2011. For years, J. Crew operated a small network of stores in Canada in markets including Vancouver, Edmonton, Calgary, Toronto, and Ottawa. A store at West Edmonton Mall closed several years ago and more recently in 2018, units at CF Rideau Centre and CF Chinook Centre in Ottawa also shuttered. Other J. Crew units that closed included at CF Fairview and CF Markville in Toronto, CF Market Mall in Calgary and CF Sherway Gardens in Toronto. A store at CF Toronto Eaton Centre shut down in early 2019 after having opened seven years prior.
J. Crew continues to operate five* outlet stores in Canada including at McArthurGlen Designer Outlets in Vancouver, Vaughan Mills near Toronto, Toronto Premium Outlets in Halton Hills, Outlet Collection at Niagara near Niagara Falls, and at Tanger Outlets in Ottawa.
In the spring J. Crew filed for bankruptcy protection. We had expected the company to announce an exit from Canada, which in theory could still happen.
*We’ve been informed that the South Edmonton Common location has closed, and others may have as well.
Lululemon Expanding Robson Street Flagship in Vancouver
LULULEMON LOCATION ON VANCOUVER’S ROBSON STREET. PHOTO: LULULEMON
Canadian athleisure brand Lululemon is expanding its flagship store in downtown Vancouver by annexing a space vacated by Australian footwear brand UGG. Lululemon will grow its 4,400-square-foot store by an additional 2,500 square feet at 970 Robson Street with the expansion.
Lululemon opened the Vancouver flagship store, occupying the prominent corner of Robson and Burrard Streets, in 2014. Taking over the UGG space will give Lululemon more than 100 feet of linear frontage along Robson Street between Burrard Street and a laneway. Retailers across the street include Victoria’s Secret, Clearly, and Tesla. Luxury brand Salvatore Ferragamo occupies the same block at 918 Robson Street.
Lululemon is opening and expanding stores despite the pandemic. In places such as Richmond BC, Lululemon is relocating its store to a space once occupied by Victoria’s Secret, for example.
Nordstrom Shuts Main Floor Luxury Brand Boutiques in Downtown Toronto
SHUTTERED MAIN FLOOR LUXURY BRAND CONCESSIONS IN NORDSTROM. PHOTO: CRAIG PATTERSON
The 220,000-square-foot Nordstrom store at CF Toronto Eaton Centre opened four years ago this month. Until last week, the main floor featured boutique spaces for Gucci, Burberry, Loewe, Stella McCartney, and Miu Miu.
This week, the three adjacent spaces for Loewe, Stella McCartney, and Miu Miu were boarded over with the brands’ bags being moved to the open floor. Staff in the store said they’re not yet sure what will happen to the three spaces. One sales associate said that she suspected new brands could be brought into the space. A sales associate at Gucci speculated that the spaces could be dedicated to leased brands as with Gucci, which is a concession.
Upstairs in the downtown Toronto Nordstrom store, women’s boutiques for luxury brands Lanvin, Loewe and Stella McCartney have also closed since Nordstrom’s opening in 2016. Boutiques for Moncler and Burberry remain, and last year a Max Mara fashion boutique was also added.
Nordstrom’s Yorkdale store in Toronto as well as the retailer’s Vancouver flagship both feature at least six luxury brand accessory boutiques each.
We’ll report back when we learn more.
Balenciaga Opens Montreal Women’s Concession
EXTERIOR OF NEW BALENCIAGA WOMEN’S CONCESSION AT HOLT RENFREW OGILVY. PHOTO: MAXIME FRECHETTE
Luxury brand Balenciaga unveiled an impressive boutique space at Holt Renfrew Ogilvy in Montreal. The concession features the updated Balenciaga store design which includes carpeting with the word ‘Balenciaga’ printed throughout.
What’s interesting about the carpeting is an artisan actually hand-carved each logo — a labour intensive process. Hence the pattern on the carpets in Balenciaga stores aren’t completely uniform as they’re human-made.
The Balenciaga boutique is located on the third floor of Holt Renfrew Ogilvy, which houses some of the world’s leading luxury brands in a series of boutiques. Several of these are leased spaces operated by the brands. We recently profiled the completed Holt Renfrew Ogilvy store in an article.
PHOTOS OF NEW BALENCIAGA WOMEN’S CONCESSION AT HOLT RENFREW OGILVY. PHOTOS: MAXIME FRECHETTE
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Last year Balenciaga opened a men’s concession space on the fourth floor of Holt Renfrew Ogilvy in Montreal. We profiled the men’s floor last year in an article as well.
The ‘world of’ boutiques carry a full range of men’s and women’s ready-to-wear as well as bags, shoes, and accessories. Balenciaga is also carried at Saks Fifth Avenue in Toronto and at Nordstrom in Vancouver.
Pusateri’s at Saks Shut Until 2021
A SHUTTERED PUSATERI’S FINE FOODS AT SAKS FIFTH AVENUE IN DOWNTOWN TORONTO. PHOTO: CRAIG PATTERSON
The Pusateri’s Fine Foods food hall at Saks Fifth Avenue in downtown Toronto has delayed its reopening until January 2021. A lack of foot traffic in downtown Toronto is said to be one of the reasons for keeping the 18,000-square-foot food emporium shuttered.
PUSATERI’S FINE FOODS REOPENING JANUARY 2021 SIGNAGE. PHOTO: CRAIG PATTERSON
The Saks food hall by Pusateri’s opened in November of 2016 directly under the Saks Fifth Avenue flagship store located at the east end of the Hudson’s Bay Building on Queen Street, which is part of CF Toronto Eaton Centre. The Saks food hall includes groceries as well as restaurant and concession food vendors. The environment is beautiful with bright lights and pricey fixtures, creating an elevated experience.
Prior to COVID-19, more than 50,000 people would pass by the basement level Saks food hall daily. The location is strategic, being next to the Queen Street TTC subway station with underground access to several major office towers nearby. Given that only about 10% of office workers have returned downtown, the area is said to be quiet even during lunch hours. By November, Restaurants Canada predicts 60% of restaurants in Canada will have shut permanently due to the pandemic.
Family-Owned Zadel Jewellery Studio Plants Roots Amid COVID-19 Pandemic
Husband and wife team, Johan and Adele, have more than 70 years of combined experience in the jewellery industry, and now, what started 1o years ago as a modest at-home workshop, has turned into a beautiful jewellery studio on Vancouver’s Granville Island.
Zadel Jewellery Studio opened at 1808 Boatlift Lane on Granville Island on September 5 and curates Canadian jewellery designers to give them a platform to showcase their art. The studio is comprehensively kitted out, requiring no outside intervention, meaning all manufacturing, repairs, setting, and casting production are done on the premises. The couple — who are originally from Johannesburg, South Africa — have spent many years servicing the surrounding neighbourhood with their unique jewellery designs and vast expertise in the field.
“We strive to make each piece of jewellery as near as possible to perfection with the special attention to the finest detail. The quality of each manufactured piece of jewellery is guaranteed, and the total satisfaction of each and every client is of the utmost importance. Nothing is left to chance, and every step is carefully planned and fulfilled…Our design style has settled to a refined symmetrical style of jewellery, emphasis being on clean lines and highlighted stones.”
The recent COVID-19 pandemic didn’t hold Zadel back as the studio pushed forward with the expansion.
To learn more about Zadel Jewellery Studio go to zadeljewellerystudio.com or visit the new studio at 1808 Boatlift Lane on Granville Island in Vancouver.
Vancouver-Based ChopValue Launches SMĪLE
SMĪLE BY CHOPVALUE. PHOTO: CHOPVALUE
Four years after its official founding, Vancouver-based award-winning green startup, ChopValue, have announced the launch of SMĪLE — the only climate positive modular shelving system made of 4,276 recycled chopsticks.
“When launching ChopValue, our mission was to make a change with one chopstick at a time. Today, I am excited to announce our new achievement towards that goal — SMĪLE. We’ve designed SMĪLE to prove that minimalist, sustainable, and beautiful design can be 100% eco-friendly and can leave you smiling,” says Felix Bock, Founder, and CEO of ChopValue.
With its sleek lines, minimalist and space-saving design, the SMĪLE shelving system is timeless and designed to tastefully fit any interior. Each SMĪLE is proudly made from recycled chopsticks and construction steel, urban harvested from restaurants and construction sites near you. This not only minimizes the damage to the environment by reducing global shipping, but it also adds value directly back to the community.
This global network of carbon-negative microfactories means every SMĪLE has a positive impact on the environment. Each SMĪLE stores about 6,532g (14 lbs) of CO2 that otherwise would’ve been released into the atmosphere — more than it takes to gather the resources, make and deliver it! That’s the equivalent of charging your cell phone over 830 times!
“We work to create a unique experience and an impact that will inspire people. By reutilizing used chopsticks, we promote forests’ sustainable management and raise social awareness for environmental accountability,” points out Felix.
To date, ChopValue has urban-harvested, recycled, and transformed over 25,786,890 chopsticks that otherwise would have ended up in the landfills.
KitchenMate, a Toronto-based technology startup founded by ex-IBM, Amazon, and Google engineers, is promising Canadians a safer and more convenient way to enjoy a meal at the office without compromising their health or their wallet. CEO Yang Yu is calling the solution “a 24/7 Automated Restaurant for the modern office break room or cafeteria”.
KitchenMate’s solution is having self-serve kiosks installed throughout the facility. Each kiosk consists of a Smart Fridge, which holds up to 70 fresh meals in individually packaged tamper-proof and recyclable containers, in addition to 3 or 4 internet-connected Smart Cookers. These Smart Cookers scan unique barcodes to automatically steam-cook meals to precise temperature, creating restaurant-quality meals in around ten minutes.
The KitchenMate solution enables employees to minimize going in and out of the office while providing a healthy and safe on-site meal option. KitchenMate uses a white-glove service, bulk delivery once or twice a week, and a federally-inspected food production facility with safety standards far exceeding that of traditional food establishments. KitchenMate ensures that its product is safe, fully traceable, and of the highest possible quality.
KITCHENMATE SMART COOKERS. PHOTO: KITCHENMATE
“KitchenMate was started five years ago with a mission to provide access to high-quality meals to busy professionals, starting with where they work. While that mission hasn’t changed, our solution has turned from a great employee perk to an essential amenity.” said Yu. Today, their solution has been installed in some of the best places to work including Osler, Mazda, Staples, and many more.
In addition to safety and quality, KitchenMate also aims to lower customer costs and help the environment through reduced waste. Yang says they “recognize the challenge of food waste and heavy operating costs of traditional retailers in an unpredictable world” and “have developed proprietary AI technology to determine which recipes will sell and how to stock the fridge based on individuals’ consumption patterns at any particular location”.
Yang claims their food waste levels are three times below industry average, helping them keep costs low for customers while helping the environment through less waste in the supply chain.
KitchenMate has also developed an iOS and Android App which works as a remote control for both the Smart Fridge and Smart Cookers. Without so much as leaving their desks, workers can see what dishes are available in the fridge and view detailed ingredient information, complete nutrition facts and reviews from other colleagues. It also warns of allergies and intolerances based on customers’ unique dietary profiles. With over 50 different dishes and new ones added every few weeks, Yang says “there is definitely something for everyone”. Customers can grab a meal from the fridge whenever they want, and are billed automatically through the app.
Companies can also support staff by providing customized subsidies based on meal time or cuisine type to promote positive and healthy company culture. “Before KitchenMate and the pandemic, our associates would use the cafeteria for quick snacks and small meals, go out for breakfast or lunch and sometimes bring in shared treats for the team. Since COVID, all of this has slowed down quite a bit as we’ve shut down our cafeteria and implemented social distancing in our lunchroom. Having KitchenMate has been a really good subsidized option for all of our staff, including our overnight shift. The service is convenient with very good and healthy options,” according to the fulfillment centre manager of Staples Canada.
The average meal price is $10 without a subsidy, but most companies subsidize prices to $8, and some go as low as $5 per meal or even free after 6pm. This encourages employees to stay on site, and provides them with rewards for their hard work during these challenging times.
KITCHENMATE SMART FRIDGE AND SMART COOKERS IN OFFICE CAFETERIA. PHOTO: KITCHENMATE
JLL has recently partnered with the Toronto startup, and Sam Meer, JLL’s Integrated Portfolio Services Lead, said, “JLL and KitchenMate have partnered in an effort to support our customers’ evolving workplace and corporate strategies. JLL acts as an integrator for solutions that support the workplace, and our embrace of technology to solve problems in the real estate space has conditioned us to look for technology solutions that remove friction and improve the speed and quality of service to the workforce.”
Lee Jackson, JLL’s Vice President of Retail Business Development and a food and beverage industry veteran added, “KitchenMate has been installed in our offices at 22 Adelaide St. West and has been a welcome addition. Employees are able to order meals from the comfort of an individual workspace and enjoy a restaurant-quality meal without leaving the bubble of the office space. We firmly believe that KitchenMate can be part of a food ecosystem that employers and employees can rely on to deliver choice, safety, and quality to keep employees nourished and engaged.”
As schools and offices reopen, everyone is wondering about the new normal and whether their safety will be compromised when returning to shared spaces. According to the Equiem 2020 Global Office Tenant Report, 60% of offices won’t return until “it feels safe”.
Landlords are implementing better air ventilation and filtration systems, ramping up cleaning services, and installing automatic door openers, new seating plans and hand sanitizing stations. However, as more people come back to the office, it becomes increasingly difficult to maintain social distancing. Some of the main bottlenecks are lobby areas and elevators which are used by office staff, delivery drivers and clients, especially during rush hours like lunchtime.
Many employers are encouraging their employees to bring food from home, adding to their workload and to the fatigue of cooking every meal at home for the past few months. Workers used to quickly grabbing a bite from a cafeteria will now find their options limited as low foot traffic and safety concerns have shuttered many restaurants.
However, while public spaces continue to operate at reduced capacity and work-from-home policies hold strong, is it a bad time for a company like KitchenMate to look at expanding?
Sam Meer doesn’t think so, noting “KitchenMate offers a warm welcome back for employees who are gradually returning in a phased approach and need to make the most of their time in the office. KitchenMate provides a delicious, convenient, safe and cost-effective option to stay nourished. No elevators, no PATH line-ups and no wasted time. KitchenMate won’t be THE reason your employees elect to come back to the office, but once they come, it will be a big part of them staying longer and having something to look forward to. The tech interface, variety and food is amazing – you have to try it.”
For more information and to book a demo, they can be contacted at KitchenMate@am.jll.com.
One of the most beloved mainstays at SickKids Hospital received a major upgrade this summer with the launch of the 5Fifty5 shop online store.
The 5Fifty5 Shop is a key fundraising stream for SickKids, generating upwards of $1 million in annual sales revenue. Owned and operated by the Women’s Auxiliary Volunteers (WAV) — a registered charity and volunteer group that is celebrating its 70th anniversary this year — the women-only group consists of 260 members, some of whom have been members for decades.
Due to the COVID-19 pandemic, Public Health guidelines and infection control measures implemented at SickKids meant that many of the shops operating within the hospital had to be closed over the past six months.
Patients and families visiting SickKids had come to rely on the gift shop as somewhat of a distraction from medical procedures. Unfortunately, with the unavoidable COVID-19 closure, sales stalled and the shop’s future was in jeopardy. That was, however, until an innovative collaboration opportunity called ShopHERE by Digital Main Street was presented to members of the WAV.
To help Canadian small businesses with their economic recovery, Digital Main Street’s ShopHERE program powered by Google pledges to help get 50,000 Canadian small businesses online this year. Funded in part by the Government of Canada through the Federal Economic Development Agency for Southern Ontario, The ShopHERE program offers businesses and artists the opportunity to build a digital presence and minimize the economic impact of the COVID-19 pandemic.
Created by the Toronto Association of Business Improvement Areas (TABIA) with direct support from the City of Toronto, Digital Main Street is also supported by a group of strategic business partners, including Google, Intuit Quickbooks, Facebook, MasterCard, Microsoft, and Shopify.
“We needed a bit of a revitalization for the 5Fifty5 shop and the ShopHERE program has been a catalyst for change,” says Pamela Stevens, President, Women’s Auxiliary Volunteers at SickKids. “Going forward the shop will have in-store and online offerings of all our merchandise with greater variety and inventory potential because of the diversity the online shop offers.”
Since launching in early June, 5Fifty5 online has brought in more than $25,000 in phone and web orders. Pickup locations are offered for patient families at the specialty food shop in the hospital, with Canada Post being used to deliver all external orders.
“Supporting the 5Fifty5 Shop in their transition to online was really important for us. Bringing this to life with the Women’s Auxiliary Volunteer Group and SickKids has been an incredible experience. We look forward to seeing the expanded impact of the 5Fifty5 online store,” says Darryl Julott, Managing Lead at Digital Main Street.
The revenue generated by the 5Fifity5 shop supports a variety of programs in the hospital ranging from therapeutic clowns and the Bravery Beads program to neonatology research. WAV currently funds five research chairs, the most recent being WAV Chair in Image-Guided Care, and is a major donor towards operating suite renovations in the hospital. WAV also holds Grand Benefactor status with SickKids Foundation having raised over $18 million since 1993.
It wasn’t that long ago, perhaps only about three or so decades back, when the shopping centre served as the hub of activities and events for many communities across Canada. It was where young people went to hang out and talk with their peers, and was also the venue for many Saturday afternoon family outings. But things have changed since then. Due in equal parts to the rise of ecommerce, evolving consumer behaviour and habits, and the diversification of suburban land use and development, the shopping centre seems to have — save some unique examples — lost a bit of its identity and panache through the years, nearly rendering some mall locations in the country as outliers — teetering on the proverbial periphery of the areas they serve. Thanks to creative, forward-thinking strategy and execution exhibited by some of Canada’s leading property developers, however, the shopping centre has experienced a recent surge in popularity and interest and is poised for a return to its halcyon days, once more becoming the heart of civic connectivity and engagement.
The ways in which today’s developers are making this happen are multifaceted, often centralized in strategies that are anchored to the tenets of human need and desire. And supported by an acute understanding of today’s consumer experience, they’ve managed to elevate the very notion of the shopping centre to the next level, ushering in awe-inspiring mixed-use plans for the mall of tomorrow, resulting in the construction of cities unto themselves with a multitude of retail offering providing the epicentre of interactivity and fulfillment.
According to Deloitte’s ‘Future of the Mall’ report released earlier this year: “The mall of the future will be a destination that feeds the functional requirements of our lives as well as our need to be social. It will be a thriving community where people will live, work, play, and eat. It will not be your parents’ mall — so much so that we might no longer call it a “mall” anymore at all.”
RENDERINGS OF MIXED-USE DEVELOPMENTS PLANNED FOR CLOVERDALE MALL. RENDERINGS: QUADREAL
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The Continued Evolution of Mixed-Use
The mixed-use concept, in which commercial and residential properties are combined at a location to optimize space and enhance convenience for residents and visitors, is not an entirely new one. But it’s a concept that continues to grow and evolve, seemingly in synchronicity with today’s mobile, convenience-driven consumer. And it’s one that, through the type of work being done by property developers like QuadReal Property Group, seems on the precipice of completely changing the shopping centre and consumer experiences altogether.
“What we’re trying to do is create communities, places where people can come to live and enjoy life and to connect emotionally close to home,” says Andy Clydesdale, QuadReal’s Executive Vice-President of Retail. “When people visit a shopping centre, they aren’t just going there to buy something. They’re going there to connect, to a place of destination where their senses are enhanced, from touch to smell to what they see and hear. Through our strategy and execution, we want to help bring the joy back to the shopping centre visit for the customer and to keep presenting them with reasons to continue returning.”
QuadReal is a global real estate investment, operating and development company headquartered in Vancouver that manages retail properties across the country totalling more than 5 million square-feet. Their portfolio is vast and includes successful locations in British Columbia, Alberta, Ontario, and Quebec. It’s a forward-looking, forward-thinking company that has become known for its intelligent investments and willingness to challenge the contemporary way of doing things while remaining true to its commitment to “create sustainable environments that bring value to the people and communities it serves”. And there are perhaps no better examples of this vision and commitment than what’s being reflected in the work and planning that the company’s executing around three of its properties: Bayview Village in Toronto, Cloverdale Mall in Etobicoke, and Vancouver’s Oakridge Centre.
RENDERING OF RENOVATED BAYVIEW VILLAGE: QUADREAL
Adding and Enhancing Value
It’s all part of a strategy that was started by the company a little more than four years ago, Clydesdale explains, with focus on a starting point to develop properties in major cities that are located on or near mass transit lines, and which presented the opportunity to be enhanced or have value added. Plans for each property include the addition of purpose built rental, condos and affordable and inclusive housing, along with what Clydesdale calls “an appropriate level of retail” based on the mall and its location.
“We’re not trying to be everything to everybody,” he says. “We’re developing these properties with a certain level of curation that aligns with our brand. Each one of our properties is different, representing different things to the areas they serve. We approached our planning for our locations by looking at them each holistically to understand what each of them required in order to create an exceptional experience for the communities we operate in.”
Cloverdale Mall, for instance, provides QuadReal with the opportunity to completely transform the location and area immediately surrounding it. The developer plans to raze the aging, one-storey mall in phases and in its place will construct what Clydesdale describes as a “microcity”, consisting of a unique design that includes multiple residential towers totalling more than 4,000 rental units, parks and green spaces, a food-oriented market building, and an arts and culture community centre, along with all of the other amenities required by a community. The area is enveloped within a triangular plot of land by Highway 427, The East Mall and Dundas Street and will be accessible from each major road, connected by a network of streets designed to help residents and visitors easily and fluidly navigate the expansive space. A retail Main Street will serve to anchor the development, complementing ‘Cloverdale Square’ proper.
In addition, in an effort to make the area more pedestrian-friendly, several pedestrian-only routes and cycling connections will provide comfortable travel to the Square and other areas on the property. The massive 1,800 vehicle parking lot that currently surrounds Cloverdale will also be replaced by integrated above-grade and multi-level below-grade parking, conveniently located for visitors and residents to easily access retail and residential structures.
Bayview Village, located at Bayview and Sheppard in Toronto, on the other hand, presents QuadReal with a slightly different opportunity.
RENDERING OF RENOVATED BAYVIEW VILLAGE: QUADREAL
RENDERING OF RENOVATED BAYVIEW VILLAGE: QUADREAL
RENDERING OF RENOVATED BAYVIEW VILLAGE: QUADREAL
“Bayview Village is a very successful shopping centre,” Clydesdale asserts. “It’s very unique and very curated and has solidified its position in the marketplace. So, we knew that we needed to be sensitive not to disrupt the great retail that already exists at the mall, and instead enhance it by adding a little bit of lifestyle retail along with some new rental and condo buildings and improved access to transit.”
And that’s exactly what the developer has planned, with a vision to modernize the southwest portion of Bayview Village by extending a multi-level storefront out to Sheppard. The addition of new rental and condo residential units, a green space and urban park, and an outdoor retail promenade offering a luxuriously-spaced common area and gathering spot for visitors and residents help to create another community-like environment. And, not too dissimilar from QuadReal’s plans for Cloverdale, amenities and structures on the Bayview Village property will be made accessible by a series of interconnected walkways and bike lanes, allowing for another extremely pedestrian-friendly experience.
RENDERING OF RENOVATED OAKRIDGE CENTRE: QUADREAL
The Transformation of Oakridge Centre
Plans for the development and enhancement of each of these locations are impressive, speaking directly to QuadReal’s core principle of adding value to the communities it serves. And it’s also encapsulated well in the developer’s plan and strategy for its Oakridge Centre location in Vancouver. The Centre will undergo a near-complete overhaul and is set to close for construction, save Crate & Barrel and Hudson’s Bay Company locations and the Centre’s south medical building, at the end of the month.
According to Clydesdale, a unique multi-phased redevelopment project like Oakridge highlights the value of the developer’s internal multi-asset class expertise. It also presents it with the opportunity to work with a world class partner like Canada’s leading luxury residential and mixed-use real estate development company, Westbank Corp. Redevelopment of the Centre will result in the creation of more than a million square feet of new retail space, 750,000 square feet of which will be catered to the indoor shopping experience with 250,000 square feet of outdoor shopping that will be made accessible by pedestrian-only walkways. Rental and condo units housing approximately 6,000 residents will also be erected on the periphery of the site.
The Centre will also include the construction of The Kitchen – a nearly 65,000 square foot, two-level ‘foodie experience’ venue with the capacity to seat 1,600 guests. And with an offering that promises to include a plethora of diverse food and beverage purveyors and a robust array of freshly prepped, ready to eat or take-home food, cooking classes, culinary events, as well as the use of innovative concepts like ghost kitchens and the latest in food delivery technology, The Kitchen is sure to become an attraction unto itself. The mezzanine will be the location of a 32,000 square foot pub that will be spacious enough to seat another 1,000 guests. In addition, an outdoor patio, accommodating 800 more guests, will lead to an incredible nine-and-a-half-acre rooftop park that will feature a half dozen distinct areas that can be leveraged for unique uses of both recreational and leisure varieties.
RENDERINGS OF MIXED-USE DEVELOPMENT PLANS FOR THE OAKRIDGE CENTRE. RENDERINGS: WONDERWALL
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When construction is complete, Oakridge will also be the home to a brand new 100,000 square foot community centre consisting of a childcare facility, fitness centre, gymnasium, youth and senior activity centres, performance hall and a 21,000 square foot branch of the Vancouver Public Library. And, just like Cloverdale and Bayview Village, the development of Oakridge will be optimized for greater accessibility to transit, with an emphasis on pedestrian travel and comfort.
“The development and enhancement of each of these locations, from a planning and strategic perspective, have been designed with the guest and resident experience in mind first and foremost,” says Clydesdale. “And we’ve built flexibility into the designs as well that will allow us to evolve the use of certain spaces on these properties as consumer needs and behaviour change, with the goal to continuously improve access to them and the experience on site.”
More Than Just Retail
Some of these future improvements will include the exploration of autonomous modes of transportation to deliver and pick up guests from the shopping centres, the ability for residents to order meals, groceries, and other products from the comfort of their residence and have it delivered to their door and, of course, the ongoing research and development of mobile and digital technologies that will help support the experiences QuadReal’s properties provide for its patrons.
Combining QuadReal’s plans for these sites with its vision, focus on the fundamentals of the retail experience and desire to add value to the areas its properties serve, the developer is helping to raise the bar concerning tomorrow’s shopping experience.
“We’re helping to build communities and hubs of central activity and interaction for the people living in and visiting these communities. It’s how we envision sites like these operating going forward. The shopping centre experience today is about more than a simple retail offering. It’s about providing guests with a multipurpose destination that encourages them to live and shop, to engage with one another and to be entertained.”
EXTERIOR OF VANCOUVER’S MEC FLAGSHIP STORE. PHOTO: MEC
The sale of Vancouver-based retailer MEC (Mountain Equipment Co-op) to a U.S.-based private investment firm raises a number of questions about how Canadian consumers will respond to the change in ownership.
How will this acquisition affect consumers’ trust in MEC? How will it affect consumers’ trust in the retail industry? What’s to come? There are so many questions people are asking about the sale to Kingswood Capital Management while the well-known retailer remains under creditor protection in Canada.
A CANADIAN BRAND BEING ACQUIRED BY AN AMERICAN BRAND INEVITABLY ERODES CONSUMER TRUST
Dr. Saul Klein, Dean of the University of Victoria’s Gustavson School of Business, said his guess is that this will erode trust significantly for a few reasons.
“One is when we see a Canadian brand being acquired by an American one, that has a negative impact. We saw that quite sharply with Tim Hortons a few years ago. That was again one of the most trusted brands in Canada and then new ownership came in and started making changes. It really undermined a big part of the value proposition for Canadians,” said Klein.
“For MEC, I think it’s going to be even stronger because of the co-op structure. The customers are members and it’s hard to gauge how many, but a significant number of their members are quite unhappy with this. As members of a co-op they have a very different view on what the purpose of the organization is. And MEC on their home page would say they are about values not profits. That’s a big part of what kept people going to MEC. It’s those values about ethical sourcing, about playing a positive role in society, active on the climate front.
“The risk is that the new owners by necessity will have to cut costs and have to push some kind of a turnaround and the risk is they might get away from some of those value-based elements that are a big part of what makes MEC such a trusted brand in
For the past five years, the Gustavson Brand Trust Index has been tracking consumers’ trust in brands with MEC consistently holding the top spot as one of the most trusted brands in Canada.
There are a number of challenges taking place against the MEC sale. An online petition by members is opposing it as members are raising money for legal fees to challenge it.
“We’re living in very strange times,” said Klein. “In a normal year, I would have thought that MEC probably could have recovered. They had a financial problem in 2019. But to restructure and cut costs and get things going just when the pandemic hit made it impossible. We’ve seen so many retailers fail during the pandemic and MEC wasn’t in a good position to get through it. That certainly also undermines the trust.”
The overall trust of a company like MEC comes from its values, the quality of its products, and the quality of the service.“The people in the stores really had an in depth understanding of what they were doing, and they were similar to their customers in the sense that they shared the same enthusiasm for the outdoors,” said Klein.
“The big question is going to be what are the new owners going to do. As a private equity firm, they have to make money or find a way to make the organization profitable. They have said that they’re going to keep 17 out of the 22 stores in operation but are their stores going to look different? Are they going to be able to attract new customers in greater numbers than they’re going to lose existing customers? I think many of the current customers will not stay with MEC. And if they try and attract new customers, they risk diluting their core position which is what probably got them into a little bit of trouble to begin with. So they’re in a catch 22 here.”
MEC OWNERSHIP CHANGE JUST ANOTHER RIPPLE IN THE TIDAL WAVE OF CHANGE HAPPENING IN CANADIAN RETAIL
Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail, said the MEC situation represents the clash of two very different worlds.
“On the one side is the original co-op members, customers and grassroots origins of this storied green Canadian brand. On the other side is Kingswood, a private equity firm that personifies late stage capitalism. Sort of a battle between left and right. Not unlike a broader battle we face in modern society,” said Winder.
“So far, Kingswood has said all the right things to try and win over MEC stakeholders — sending an open letter to members that tried to calm the waters. Meanwhile, some co-op members have raised money to obtain legal representation and potentially block, if not re-shape the deal.
“This is not a great way to start a business relationship and probably sets the stage for several years of distrust and disagreement. I can’t help but think about the tumultuous 3G Capital/Tim Horton’s franchisee relationship that played out in the media over the last half decade or so. We all saw how tough that was and the impact it had on the business.”
Winder said trust is a critical part of any union and so far, at least on the MEC side, it is non-existent.
“But what happened to the MEC board? Did they not obtain the sign-off from members before the deal? It sounds like they may not have. If so, that may be a clue to a culture that was toxic to begin with – at least between members and the group that steered the broken retailer. Was this part of the underlying problem to begin with?,” added Winder.
“The irony is that both sides need each other. MEC needs funding and expertise to reconfigure its business model to make money and remain a going concern. Kingswood needs a strong, differentiated niche business that is in distress so that they can apply their financial wizardry to make strong returns for their investors.
“Will they be able to work together to accomplish their goals? Time will tell. One thing is for certain. If the two sides can’t find common ground the customer will suffer the most in the end.”
Michael Kehoe, a retail specialist with Fairfield Commercial Real Estate in Calgary, said the recent ownership change at MEC is another ripple in the tidal wave of change on the Canadian retail landscape.
“MEC has an established pattern of customer traffic and sales and that will be hard to disrupt even in these challenging times. The loyalty to the brand lies in the quality product offering and the customer service. I am expecting some MEC locations to close as the new ownership sets in. Now with the loss of the MEC Co-op status the playing field has been levelled in this retailing category.”
Popular US-based beauty retailer Ulta Beauty has halted plans to expand into Canada after announcing plans to open stores last year. The beauty behemoth would have competed with retailers such as Sephora and Shoppers Drug Mart as well as department stores and other retailers carrying beauty products.
Dozens of Ulta Beauty stores were expected to open across the country in major markets, including a mix of suburban units as well as some urban storefronts. In the United States, where Ulta Beauty operates more than 1,200 stores, some locations are in big-box centres to keep costs down.
Last year, Ulta Beauty retained broker Sam Winberg of Retail CND to find space for the retailer’s first Canadian locations. Inside sources informed us that the retailer was looking for space in Canada and was speaking to some prominent landlords about opening in malls and other high-traffic areas.
INTERIOR OF ULTA BEAUTY. PHOTO: ULTA BEAUTY
In an SEC filing on Wednesday September 23, Ulta Beauty said that its Canadian expansion was put on hold. “Ulta Beauty continues to believe international markets provide a long-term growth opportunity for the Company. However, given the current operating environment, the Company has decided at this time to prioritize growth of its U.S. operations and is suspending its planned expansion to Canada.”
As a result of breaking leases, Ulta Beauty will incur tens of millions of dollars in costs. The company said that it was in the process of a “limited to early-stage infrastructure buildout,” which included securing several smaller retail storefronts for the retailer. “In conjunction with this decision, the Company expects to incur costs in the range of $55 million to $65 million, the majority of which will be recognized in fiscal 2020,” according to the filing document.
COVID-19 affected sales at Ulta Beauty. For the quarter ended August 1 2020, the retailer’s net sales fell 26.3% to USD$1.2 billion, down from USD$1.7 billion in the year prior. Net income was USD$8.1 million, down from a whopping USD$161.3 million in the same quarter of last year.
The news will come as a shock to Canadians who were anticipating Ulta Beauty’s entry into the Canadian market. Prior Retail Insider reports about the retailer saw thousands of readers, indicating a strong brand awareness for Ulta Beauty in Canada.
There’s a possibility that Ulta Beauty will eventually expand into Canada. A representative at the company provided a statement to Retail Insider saying, “We continue to believe international growth is a longer-term opportunity for Ulta Beauty and we’ve learned a great deal throughout this process. When the time is right to reengage international opportunities within our growth strategy, we will certainly apply these learnings.”
INTERIOR OF ULTA BEAUTY. PHOTO: ULTA BEAUTY
Ulta Beauty has been referred to as the ‘Home Depot of beauty retailers’ with an expansive offering of brands in experiential stores. The retailer was founded in Bolingbrook, Illinois, in 1990 by Terry Hanson and Richard E. George, and it has become the largest beauty retailer in the United States. Ulta Beauty is said to be a one-stop shop that offers mass and prestige beauty, skincare, and haircare products in addition to unique services all under one roof; the company’s motto is “All Things Beauty, All in One Place”. Ulta Beauty’s loyalty program boasts more than 32 million members — that’s twice as many as Starbucks as a comparison.
Retailers with beauty products in Canada may breathe a sigh of relief, at least for now. LVMH-owned Sephora operates more than 100 stores in Canada and has seen remarkable success here by gaining a significant share of the market. Shoppers Drug Mart, which continues to expand its BeautyBoutique concepts both within its stores as well as with standalone beauty storefronts, will retain a market share that it was sure to lose with Ulta Beauty’s Canadian entry. Other retailers that would have been hit by Ulta Beauty’s Canadian entry include department stores such as Hudson’s Bay and Nordstrom and even discounters such as Walmart.
One beauty category that has been hit hard in particular is lipstick, as face masks have been mandated in public indoor spaces in many parts of Canada. The work-from-home trend as well as limited social gatherings has also resulted in reduced sales for other beauty products as well.
COVID-19 has hit retailers hard globally, including in Canada. Some international brands that planned to expand into Canada have put plans on hold and are waiting to see how the situation plays out. Travel restrictions have resulted in less international tourist dollars, which is hitting markets such as Vancouver and other destinations in a big way. A vaccine, which is not guaranteed to come to fruition, is a hoped for saviour to get things back on track. Given that we appear to be entering a second wave of the COVID-19 pandemic, the future of retail in Canada is again uncertain as we approach 2021.
Every month, Statistics Canada reminds us that life is getting more expensive. But for food, the situation has been unique over the last few decades. Based on numbers released recently, the price of a typical grocery basket has increased by about 240% since 2000. Some will think that such a percentage is expected, given the effects of inflation. Perhaps, but the overall cost for other products and services in the economy did not increase as much as food did – far from it.
TYPICAL CANADIAN GROCERY BASKET INCREASED BY 240% SINCE 2000
In fact, it is when we compare the consumer price index with the food price index over the last 20 years that we see a rather marked divide. Except for Iqaluit, all provinces and territories have seen their consumer price indices outstripped by the food price index. In most cases the food price index has gained at least 10 points more in 20 years. The differences are larger in Eastern Canada.
In Quebec, the difference between the two is 23.1 points and in Nova Scotia, 21.3 points. The place where the food price index exceeded the general price index the most is in New Brunswick, with 25.8 points. In other words, over the past 20 years, Canadian households, especially in Eastern Canada, have had to spend more of their budgets on food. It is especially in the last decade that the gap between the two indices has widened. For the Eastern provinces, the reasons vary between the lack of regionally based food processing and the higher logistical costs of serving some remote markets.
Some may say a sustained rise in food prices may be harmful to the poorest citizens. Well, yes and no.
North America has been the realm of discounted food for quite some time. We are just coming out of an era in which we have been bent on buying the cheapest food products. For a generation, food industrialization has led us to consume both good and questionable food and we accepted our fate without thinking much about it. But things are different now. As affordability remains a priority for the agri-food sector, quality, the provenance of food, and the ecological footprint that our choices represent bring their share of complexity and additional costs. The demanding consumers that we have now become have plenty of choice, all year round. With more innovation, quality is also much, much better, but there is certainly a price to pay for that. As a result, the industry has been catching up to our expectations by managing higher costs and passing some of the increases onto us. It will only get worse with COVID-19. Simple economics.
But the fact remains that some people are struggling to make ends meet. Poverty is invisible, but it is there, it surrounds us, and will become more of a challenge over the next several months. It is high time to evaluate the possibility of a guaranteed minimum income, for greater financial equity for all.
Despite higher food inflation, there is still some good news for bargain hunters. For several years now, we have focused on discussing the more expensive food products. It is just human nature, but did you know that there are a few products priced almost the same as they were 20 years ago? According to Statistics Canada, flour has increased by 38% since 2000. That’s not much. Even better, peanut butter is about 5% more expensive than in 2000. Of course, prices will vary depending on the region, the type of store, and the time of year. But peanut butter has been relatively cheap for 20 years. But apparently, sugar is dirt cheap in Canada.
According to Statistics Canada, white sugar is almost the same price as it was in 2000, at $2.40 per 2 kilograms. Although there are only three sugar producers in Canada that control the market, Redpath, Lantic, and Rogers in the West, the price of sugar has barely changed in the last two decades.
The sugar industry operates mostly behind the scenes, and everything is negotiated privately. Canadian prices are based on world sugar prices, which are significantly lower than prices supported by tariffs in the United States and Europe. Canada’s low import tariffs also mean that global competition for refined sugar keeps prices low here compared to the United States. In fact, sugar prices in Canada are on average about 35% lower than U.S. sugar prices.
So, there you have it. Food prices are going up, but at least sugar and peanut butter remain a bargain.
This week Craig & Lee talk about Gucci opening a standalone store in West Edmonton Mall and HBC’s The Room shifting strategy by adding menswear in the Vancouver location.
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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!
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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/
