Mixed news: The growth of Canadian retail apparel sales slowed in June 2021, compared to those in each of the three previous months, however June marked the first month in 2021 that retail apparel sales for the month were greater than the same month both in 2020 (+12.4%) and 2019 (+12.1%). June’s increase also marked the only month in 2021 that the month’s sales did not decrease (y/y) compared to 2019 by double digits.
In spite of June’s good news for apparel retailers it has to be noted that while apparel sales increased 13.6% (y/y) during the first half of 2021 they were still down 26.4% when compared to the first half of 2019.
Three Canadian retailers reported strikingly different sales patterns during the six month period ending July 31, 2021.
lululemon Canada’sresults were outstanding, as its Q2 Canadian only sales increased 46.9%, while its sales (y/y) in the six month ending August 1 increased 55.4%. Even more impressive was the retailers sales increase of 42.7% when compared to the first half of 2019. Driving the retailer’s sales increase in Q2 2021 was the fact that almost all of its 62 Canadian owned stores were open vs. most of them being temporarily closed a year earlier. Additionally, during Q2 2021 men’s sales growth drove sales while e-commerce sale growth slowed.
Roots, like the majority of Canadian apparel retailers continued to struggle during Q2 2021 as a result of partial store closures. Nevertheless the retailers DTC sales increased 6.6% in the quarter ending August 1, 2021. More importantly the retailers DTC gross margin increased to 63.4% up 120 basis points from a year earlier. The retailer closed the quarter with 111 corporate stores. To its credit, Roots is emphasizing profitability over sales (by reducing promotional activity) and e-commerce over brick and mortar sales.
Zumiez Canada’s Q2 2021 results were disappointing as sales decreased 17.6% in the quarter. During the first half of 2021 the retailer, who is targeted to 15-24 year-olds, reported a 4.4% sales increase.
Import/Export News
Canada’s apparel exports increased by 30.1% in July 2021 after increasing 119.0% in June. During the first seven months of 2021 total apparel exports increased 39.4%, while apparel exports to the U.S. increased 32.1%, and exports to China increased 117%.
Canada’s apparel imports decreased by 18.6% in July 2021 and were up 4.9% during Jan/July. During the first seven months of 2021 imports from China (-10.7%) decreased while those from Vietnam (+18.1%), Bangladesh (+14.1%), and Cambodia (+13.2%) increased.
Basement Gang (@basementgang on TikTok), Shina Nova (@shinanova on TikTok), James Jones (@notoriouscree on TikTok) and Mykenna Dorn (@mykenna on TikTok). (CNW Group/Cadillac Fairview Corporation Limited)
Canadian shopping centre owner Cadillac Fairview has launched a marketing campaign to entice consumers to rediscover the retail experience in malls and it’s using the popular TikTok video-sharing app to reach a wide audience.
“Over the last year and a half, Canadians have craved a sense of community that has long been associated with CF shopping centres as vibrant spaces that foster connection and a sense of belonging. This campaign is all about how good it feels to reunite with the people we love, together in the communities we love. What better way to celebrate that than with a TikTok dance?” said Jason Anderson, Senior Vice President Brand, Marketing, Communications at Cadillac Fairview. “This year at CF, we redefined our position in the communities we serve as one that combats detachment and social isolation.
“It certainly has been a challenging 18 months and if we go back to March 2020 what we know is that millions of Canadians made going to the mall a regular habit and that’s been challenged since March 2020. At the end of the day, we’re a company that owns the best shopping centres in the country and for the better part of a year and a half people either haven’t been able to get into the mall or haven’t wanted to go to the mall. As we’ve been doing research every few months what we’ve realized is that Canadians are being pretty clear about the fact that they want to get back to what they love the most.
“And they’re telling us that the time they spend at the mall is one of those things they want to get back to.”
Anderson said the idea for Rediscover That Feeling came about while thinking about how the shopping centre owner could rebuild the habit of the shopping centre in people’s lives. It led to this idea of rediscovery – people can rediscover the things they miss the most and the shopping centre plays a role in that.
“We need to appeal to all Canadians and certainly with younger Canadians as we look at the Millennial generation and the Gen Z generation, we know that TikTok is probably their favourite platform right now. So we saw TikTok as a great way to connect with younger Canadians,” said Anderson.
Anderson said CF stumbled upon an old television commercial from the Toronto Eaton Centre dating back to the 1980s. It was a fun commercial of people dancing and having fun in the mall. That was the inspiration for the current campaign.
“All of a sudden TikTok just came to us as this amazing partnership opportunity because they have a great way to connect with young people and they’re so focused in music and dance and having fun that we gave TikTok a shout and they’ve been amazing partners and they’ve been incredible to work with,” said Anderson.
“It’s really been a match made in heaven.”
The song for the campaign is an original one created by TikTok.
The campaign includes specific content that has been directed by award-winning director-editor Sean Cartwright, featuring four popular creators serving “main character energy” and meme-worthy dance moves set to an original song. The lyrics “Rediscover That Feeling” aim to inspire excitement for the return to CF destinations of retail, entertainment, cuisine and human connection. Canadians across the country are encouraged to participate in the movement by sharing their own “happy dance” on TikTok using the hashtag #MeetYouThere and tagging @cadillacfairview, said the shopping centre owner.
Canadian TikTok dance trio Basement Gang leads the national campaign with their signature “drip” and comedic style that have attracted nearly four million followers to the @basementgang TikTok page.
“As a group that reps the Greater Toronto Area, CF Toronto Eaton Centre holds a special place in our hearts, so it has been awesome to represent the ‘six’ and bring our moves to a bigger dance floor,” said Kadeem Hemmings, a member of Basement Gang. “Our vibe is all about joy and positivity, and we can’t wait for our Canadian community to rediscover that same feeling at CF malls.”
Creative partnerships also include Shina Nova (@shinanova on TikTok), an Inuk throat singer in Montreal; James Jones (@notoriouscree on TikTok), a traditional Indigenous hoop dance artist in Alberta; and Mykenna Dorn (@mykenna on TikTok), a lifestyle influencer based in Vancouver.
Cadillac Fairview has also bought media with TikTok.
“Cadillac Fairview has committed to ‘Transforming Communities for a Vibrant Tomorrow,’ a purpose that puts positivity and human connection at the core of everything we do,” added Anderson. “In the age of TikTok, and everything we’ve gone through, dance has never felt more like a powerful medium of celebration and connection, and we’re proud to work with these emerging artists to reconnect our shoppers and communities.”
The campaign spans digital (in-mall signage, digital directories, newsletters) digital out of home, radio, video (YouTube, online news outlets and DirectTV), Google ads, as well as social media with paid support on Facebook, Instagram, Pinterest and TikTok.
Anderson said within the Rediscover That Feeling video content, people can click in the bottom right corner of the screen and they can actually have access to the song if they want to recreate the dance of the Basement Gang.
The TikTok portion of the campaign will run for about two weeks but it’s part of a broader campaign for about three months. The campaign is on hold temporarily in Alberta due to the recent spike in COVID-19 cases in the province.
“With foot traffic being down in our properties, it’s more important that we have a media presence so that Canadians can remember and rebuild the habit of revisiting the mall as we come out of this pandemic,” said Anderson.
“For us, this is really an extension of our purpose. We’re a purpose-driven organization. We believe deeply in the idea that people are being pulled apart and at our core we’re in the business of bringing people back together and so what we’re really focused on is how do we create these amazing moments that bring people together.”
In what has become an annual ritual for Apple iPhone enthusiasts around the globe, California-based Apple Inc. began taking pre-orders for their flagship iPhone products on Friday at 7:00 a.m. Pacific Standard Time. The tech behemoth took its website offline a couple hours in advance of the launch time in order to prepare its website for the onslaught of users vying to be one of the first to get the latest devices. We did not anticipate that the Apple website would restrict features after the launch point; hence, we are sharing the pre-order experience of our writers.
Apple “You’re … early” messaging on its website and “Apple Store” app leading up to the 2021 pre-order event. Photo: Apple website.
The overall process of pre-ordering the iPhone Pro Max 256GB in Gold took 7 minutes in totality from start to finish and we would have been tucked back into our beds at 5:15 a.m. PST if it wasn’t for some functionality restrictions or glitches observed during the process.
To be fair, the process to purchase the iPhone itself was smooth like butter and Apple likely had an army of testing routines to stress test the ‘customer purchase journey’ to an inch of its life to get as many pre-orders completed within the initial hours.
Veering off of Apple’s tested customer purchase journey
Whether it’s “Murphy’s Law” or excited fingers, the number of times a newly received iPhone tumbling to the floor within the first 72 hours has come to fruition more times that this writer can count.
With the main event of the iPhone purchase out of the way, we veered off to purchase a protective case. As this likely was not a common ‘purchase journey’ during Apple’s pre-order event testing, gaps in the Apple website functionality began to emerge in the early pre-order hours.
After adding a clear iPhone case to the shopping cart and completing the purchase, we received a generic error stating there was trouble completing the order. While we hadn’t taken a screenshot of the error, it was the first sign of trouble which caught us off-guard.
Apple Recent Order Functionality Offline
An attempt to access “Recent Orders” was unsuccessful through both the Apple website and “Apple Store” app.
“Recent Order” errors experienced by the Apple website and “Apple Store” app on September 17, 2021. Photo: Lee Rivett.
The error occurred around 5:10 a.m. PST at the height of the initial pre-orders, likely while Apple was experiencing a significant load on their servers. With no confirmation emails received for the iPhone pre-order or the iPhone case, we went ahead and tried purchasing the iPhone case again with a ‘success’ message.
Apple Suspends Order Cancellation Functionality
Secure with a pre-ordered iPhone and case for delivery on Monday, September 27, we checked the ‘Recent Order’ functionality once more. The ‘Recent Order’ functionality was working once again. Unfortunately, we now had two iPhone cases ordered.
Double iPhone case orders during September 2021 pre-order event. Photo: Lee Rivett.
Being a pre-order, we went into one of the ‘iPhone case’ orders to cancel it. We were greeted by a “Your order can’t be changed at this time. If you’d like to make changes to this order, please try again in a few hours”.
Apple ‘change order’ functionality suspended during September 2021 iPhone pre-order launch. Photo: Lee Rivett.
By 8:30 a.m. PST, the order change functionality had not been restored.
Apple Functionality Prioritized
In the end, Apple is prioritizing the website and app resources to allow pre-orders leaving plenty of time for customers to change orders (and/or their minds) before delivery by September 27, 2021. We will keep everyone updated if further troubles unfold for the cancellation process.
**Update: Order Update functionality was restored at 12:00pm PST on September 17, 2021.
This week, West Edmonton Mall is marking 40 years of operations. The massive shopping centre opened in September of 1981 and has expanded to four phases over the years. The entertainment-heavy shopping centre began adding luxury brand stores several years ago, rounding out the assortment with a wide range of retail price-points.
Shopping centre fan Matthew Dutczak of Best Edmonton Mall celebrated the milestone on Wednesday evening with a segment on Youtube which can be viewed below.
Video: Best Edmonton Mall via Youtube
West Edmonton Mall is either the largest shopping centre in North America or the second largest — Wikipedia indicates that the Mall of America in suburban Minneapolis is larger, and both shopping centres are owned by the Ghermezian family of Triple Five Group.
The entertainment-heavy shopping centres both see millions of visitors annually, with West Edmonton Mall having welcomed about 30 million visitors per year prior to the pandemic.
The first phase of West Edmonton Mall that opened in 1981 housed about 220 retailers and was anchored by department stores Hudson’s Bay, Eaton’s and Sears. The second phase opened in 1983 and added a skating rink and an amusement park called Fantasyland that would be rebranded Galaxyland several years later after a lawsuit with Disney over the name. A Safeway grocery store in the second phase became a location for an upscale Bretton’s department store for several years.
Phase three of the mall opened in 1985 with a substantial expansion including several attractions — the World Waterpark with an indoor wave pool, an indoor lake with a replica of the Santa Maria ship as well as three submarines and live dolphins, and a mini golf course. Hundreds of new retailers were also added including a Woodward’s department store (that was converted to Hudson’s Bay for a time after Woodward’s went bankrupt in 1992) and a European-styled street called Europa Boulevard was also unveiled. A hotel was also added to the mix and is called the Fantasyland Hotel — a name that Disney hasn’t touched unlike the former name of the amusement park.
Phase four of West Edmonton Mall was completed in 1998 including the addition of an IMAX theatre — a phase made possible after Hudson’s Bay vacated the former Woodward’s space. Interestingly, Hudson’s Bay operated two stores at West Edmonton Mall between 1993 and 1998.
Luxury retail became part of the mix in 2013 when New York City-based jeweller Tiffany & Co. opened a store in the mall. That was followed in 2019 by Louis Vuitton which relocated from a now shuttered downtown Holt Renfrew store. Most recently, Saint Laurent and Gucci have opened storefronts in the same area as Tiffany and Vuitton, creating something of a luxury wing.
Some of the retailers at West Edmonton Mall do exceptionally high sales, with some stores being among the top performers in their respective chains. The ‘resort feel’ of the centre creates a destination where many come to spend time and shop as well as participate in other activities. The mall also has a wide range of food and beverage options that draw in visitors as well as attractions such as a casino, the Rec Room, dinner theatre, shooting range, and even an 11,000 square foot cannabis ‘experience’ retail space by Aurora. A street dedicated to restaurants called Bourbon Street opened as part of the mall’s third phase and it was rebranded as BRBN ST. several years ago.
West Edmonton Mall now spans about 5.3 million square feet and has more than 800 stores and services, ten major attractions, two hotels (including one across the street from the mall) and about 100 dining venues.
Between 1985 and 2004, West Edmonton Mall was the world’s largest shopping centre. Since 2004 several shopping centres in Asia and the Middle East have surpassed West Edmonton Mall in size.
West Edmonton Mall is still home to the world’s tallest indoor roller coaster (the Mindbender), the world’s largest indoor lake (Deep Sea Adventure), the largest indoor waterpark in the Americas (World Waterpark) and its parking lot of 20,000 spaces, as well as over 10,000 overflow spaces, is the world’s largest.
West Edmonton Mall continues to see changes into the fall of this year — over the weekend North America’s largest virtual reality experience, Virtual Land, opened below the La Maison Simons store (which opened in October of 2012). This fall, Mayfield Toyota will open a massive facility in the first phase of the mall including part of the former Sears space. On Tuesday of next week, Australian eyewear retailer Oscar Wylee will open its first Canadian store in the mall. And later this month, Baltimore-based athletic brand Under Armour will open its second full-priced concept store in Canada at West Edmonton Mall — one thing consistent about West Edmonton Mall is constant change.
This article could go on and on as the history of West Edmonton Mall is extensive. For anyone interested in the history of the shopping centre and what’s happening, be sure to check out Matthew Dutczak’s Best Edmonton Mall Youtube channel and subscribe.
Toronto-based footwear brand Ron White is expanding further into the United States with his handbag line that is already selling well in Canada. Ron White’s bags recently launched at large-format luxury retailer Neiman Marcus as part of White’s continued expansion into the United States which has been critical to the brand’s survival over the past 18 months.
White said in an interview that business has shifted significantly to wholesale in multi-brand retailers in Canada and the United States. The US market now makes up over 75% of White’s customers with footwear distributed in Nordstrom stores across the country as well as selected Von Maur department stores and various independent retailers for Autumn/Winter 2021. Getting into Neiman Marcus was a coup for the brand with product now available on the retailer’s website.
Ron White
Sales for Ron White have also been bolstered with television network-shopping vertical Today’s Shopping Choice (TSC) and on Thursday September 16, White presented the Autumn/Winter 2021 handbag collection with Jeanne Beker, host of Style Matters. During the pandemic, White invested in a home studio and dedicated staff resources to managing the complexity of online television sales.
After seeing early success with handbag capsule collections over the past couple of years, White launched a full handbag collection for Autumn/Winter 2021 that is available in Canada through Ron White’s standalone stores in the Greater Toronto area as well as nationally on TSC and now in the United States at Neiman Marcus.
The journey for the brand has been interesting. Ron White, aka ‘The ShoeRu’, first opened a comfort-focused multi-brand store in Toronto called The Foot Shoppe in 1993. It grew to several locations and in 2006, White rebranded the stores to his own name, targeting a younger, more fashion forward shopper as a result. Soon after, White decided to create his own namesake footwear brand, merging his vision of chic style mixed with comfort. He is recognized for creating the world’s first “All Day Heels®” bringing together striking design, luxurious materials, and unique cutting-edge technology.
Image: Ron White Shoes
In an interview, White explained that he began designing bags as a capsule collection which were first shown on Beker’s Style Matters program on TSC in 2019. The bag collection sold out almost immediately and more were manufactured to address the television program’s monthly cycle.
Materials used in Ron White bags are of a ‘designer caliber’ utilizing the same tanneries and fabrics as brands such as Louis Vuitton and Prada. White said while creating the original designs for the bags, a stronger leather for the bottoms of the bags was required to ensure structure and quality when a bag is full of various items. White explained that he paid particular attention to the design, similar to how he does with his popular footwear for women and men — White began by selling orthopedic shoes and branched off into fashion footwear about 15 years ago.
Selling handbags is different than footwear — he noted that a big difference between footwear and bags is the element of sizing. While shoes come in a variety of sizes, a handbag is ‘one size fits all’, meaning less storage space and stock is required in comparison.
Image: Ron White Shoes
White’s handbag line will continue to see expansion in production and sales. The designer noted that the collection hasn’t yet been presented at handbag trade shows partly due to the pandemic. New designs will be rolled out in seasons to come.
The Ron White brand has made a few changes over the past couple of years, including streamlining its lines to include one collection for women’s footwear, one for men’s footwear and one for bags. In years past, White had a lower priced footwear line as well as a premium line.
Ron White stores are located in and near Toronto including at the Manulife Centre in Bloor-Yorkville, Bayview Village in North York, 1553 Bayview Avenue in Leaside, and at 189 Lakeshore Road East in Oakville.
Australian eyewear retailer Oscar Wylee is expanding into Canada this fall with six store locations and more to come over the next 12 months. The brand will be entering a market that is already crowded with value-priced eyewear retailers which have been opening in recent years.
The brand says that is it known for its high-quality, affordable eye glasses and eye test services. Oscar Wylee already has over 100 stores and over 800 team members across Australia, New Zealand and Singapore.
Oscar Wylee’s first Canadian store opens Tuesday September 21 at West Edmonton Mall in Edmonton. A second store will open at the Halifax Shopping Centre in October.
And in November, the retailer will open four more locations in the Calgary and Toronto markets with details to come. Over the course of 12 months, the company is expected to open many more locations across the country as part of an aggressive growth strategy.
Image: Oscar Wylee
In a statement, Oscar Wylee said that the retailer “has no plans of slowing down, with preparations for new store locations constantly underway. Be sure to keep an eye out for an Oscar Wylee arriving near you.”
The family-run company began as an e-commerce business and in 2015 after acquiring the company, brothers Jack and Bob Teoh opened the brand’s first physical stores in Australia. The stores are designed with a clean and modern aesthetic that aim to create a relaxing experience.
A joint-venture program allows the company to grow by partnering with optometrists to offer patients quality professional eye care and an exceptional retail experience. Designs are considered to be “modern, fresh and fashion-focused” and the brand is known for its “2 Pairs From $199” price point for both its optical and sunglass ranges.
Oscar Wylee in a release said that with a focus on employee benefits, the retailer will provide its Canadian optometrists with generous daily minimums, uncapped earning potential and qualified support staff. As well, each new store will be fitted with top-quality DRS and Visual Field equipment to provide staff and customers with a quality optical testing experience.
Image: Oscar Wylee
Image: Oscar Wylee
Broker Tony Flanz of Think Retail is working with Oscar Wylee in Canada. Oscar Wylee is said to be looking at retail spaces in the 700 to 1,000 square foot range in shopping centres and on busy high streets near noteworthy fashion and general merchandise retailers. Markets targeted include British Columbia, Alberta, Ontario and Quebec.
Oscar Wylee’s move into the Canadian market comes at a time when numerous other value-priced brands are also expanding in the market — both homegrown and international. Montreal-based BonLook for the past several years has been aggressively opening new store locations, while international entrants Warby Parker, Bailey Nelson, Ollie Quinn, Mujosh and others also seek to grow market share. UK-based SpecSavers also recently entered the Canadian market and we’ll be reporting on that next week with more details.
Arc'teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc'teryx)
Vancouver-based outdoor clothing and climbing gear brand Arc’teryx has unveiled a first-in-Canada store concept in the affluent Westmount area of Montreal. The 1,500 square foot location is smaller than other Arc’teryx stores and is branded as ‘Arc’type’, a concept which first launched in the United States a few months ago.
The Westmount Arc’type store is located at 4868 Sherbrooke Street West in a beautiful historic grey stone retail complex housing several businesses in a row. The Arc’type store carries a range of the brand’s most celebrated designs, including award-winners, that were specifically selected to help introduce visitors to the store to Arc’teryx. The store features a light assortment of men’s and women’s jackets, pants and accessories in select colours and sizes.
The Westmount store is the eighth for the Arc’type concept. Since June, Arc’teryx launched the new store concept in the United States where six stores operate in the San Francisco and New York City markets. That includes stores in San Francisco, Palo Alto and Walnut Creek in California as well as on Bleeker Street, the Flatiron District and the Upper West Side in New York City. An Arc’type store opened earlier this month in Covent Garden, London UK.
Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)Click image for interactive Google Map
The Arc’type stores are designed to be smaller in size than the other Arc’teryx brand stores to limit overhead costs, maximize retail space opportunities, test new markets efficiently, minimize carbon emissions, and expedite the store opening lead time.
Minimal furnishings and accents characterize most Arc’type stores which feature a modular bracket system called the Toja Grid system that allows for simple and fast set up. The modular bracket system can also be easily disassembled and repurposed for another store.
One unique feature of Arc’type stores is the fact that they are designed virtually using 3D imaging platform Matterport, which allowed the brand’s retail design and retail marketing teams to conceptualize, measure, and design the stores remotely.
Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)
The 3D imaging platform eliminated the need for travel which the company said minimized the environmental impact while coordinating the store design quickly and safely during the pandemic.
Arc’teryx hasn’t confirmed if any more Arc’type concept stores will be opening in the Canadian market. Given the flexibility of the small-format concept, it could be the case that more will open to test the waters in new markets by securing smaller spaces. Such a concept makes sense at this time.
Arc’teryx was founded in North Vancouver in 1989 and the company has a network of over 80 stores globally as well as over 3,000 wholesale accounts.
Additional Images from Arc’teryx in Westmount, Montreal
Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)Arc’teryx Arc’type Concept Store in Westmount, Montreal (Photo: Arc’teryx)
Vision and strategy. On their own, each has merits. Vision provides a prognostication of the future, informing the aim or direction in which to head, while strategy determines the approach to be taken in order to arrive at the desired destination or outcome. For many retailers and brands, these fundamentals of business are all too often sloganized, rendering them virtually meaningless and ineffective. However, when thoughtfully developed, they can be combined to significantly impact the trajectory of any operation, instilling clarity and purpose, and advising the creation of a tactical roadmap that leads to success and growth.
For a best-in-class case study of the positive results generated by a clear vision and adept strategy, one need not look any further than Sleep Country Canada. On the heels of a number of clever acquisitions and partnership developments, the country’s leading omnichannel specialty sleep retailer recently announced the expansion of its partnership with Walmart Canada and the launch of its innovative Sleep Country Express and Dormez-vous Express stores. It’s a decision that Stewart Schaefer, President and incoming CEO of Sleep Country and Dormez-vous, says ensures continued progress for the company and sustained evolution of the brand.
“From a business perspective, partnering with really relevant brands, both in terms of merchandising and product as well as the social and corporate values they stand for, is really important to us,” he says. “We’ve been very careful and deliberate with respect to the partnerships we develop. A company like Walmart Canada, which exemplifies a lot of fabulous things, is a great partner. And the launch of our Sleep Country Express and Dormez-vous Express stores will allow us to get our brand and product in front of even more Canadians on a daily basis. Philosophically, part of our job and commitment is to never become complacent, and to continuously challenge ourselves to make it easier for Canadians to access the Sleep Country brand. We recognize that the retailers that become complacent are the ones that don’t survive. And those that continue to innovate and understand the shopping journey from the consumer’s perspective are the ones that thrive. The expansion of our partnership with Walmart Canada is a great example of this innovation.”
Expanding partnership
Image: Walmart.ca
The partnership between two of the most well-known brands in the country began back in March 2019 when Sleep Country’s Bloom collection of mattresses was made available on Walmart Canada’s online marketplace. In the short time that’s followed, the partnership has blossomed with all of the specialty sleep retailer’s mattresses under $1,000, as well as a curated selection of sleep accessories, now accessible on Walmart.ca. Through the expanded partnership, highlighted by the opening of ten pilot stores – seven in Ontario and three in Quebec – the company has been able to broaden its customer reach and maintain its growth around channel innovation. With an average footprint of approximately 500 square feet, prominently situated inside Walmart Canada licensee locations at the front of the stores adjacent to the checkout lines, Sleep Country Express and Dormez-vous Express stores further increase the visibility of the brand. And, according to Schaefer, the introduction of the brand-new concept also represents an important addition to the ways by which the Sleep Country brand can be accessed by Canadians, offering them something new while still providing the expert customer service that Sleep Country has become known for.
“We’ve made sure to procure the most popular SKUs for these locations,” he asserts. “The look and feel of the Express stores will be very similar to the Sleep Country colours and branding with an experience centred around ease and convenience. The back wall of each store houses compartments containing bed-in-a-box products that can be pulled out and purchased via cash-and-carry right there. In addition, we also offer our white-glove delivery service if the customer wants to make the purchase in-store and have the product delivered to their home. There will also be three mattresses on the floor for customers to try and test. And, the stores also feature something we call the ‘crib’, which resembles a bookcase, that holds about five mattresses which can be pulled out to test as well. In addition to mattresses, our Express stores will feature a curated assortment of our most popular sleep accessories including pillows, sheets, mattress and pillow protectors, headboards and adjustable bases. Most importantly, however, the stores will be staffed by Sleep Country’s expert associates who will be there to assist customers and answer any questions that they might have.”
Crest of incredible growth
Schaefer describes the partnership with Walmart Canada as a mutually advantageous one in which both retailers reap rewards, benefitting from the other’s brand strength and appeal. However, it’s not the only development of the like that Sleep Country has orchestrated recently. In fact, the company’s been extremely active on the acquisition and partnership front. In 2018, it finalized a deal to acquire Endy – Canada’s largest online mattress brand – while also teaming up with Europe’s leading mattress-in-a-box provider, Simba. A little more than a year later, in October 2020, Sleep Country became the exclusive Canadian retailer of Purple – the leading mattress-in-a-box creator in the U.S. And, most recently, in June of this year, the specialty sleep retailer announced a new partnership with another renowned brand, Best Buy Canada, equipping the electronics retailers’ online marketplace with a curated selection of Sleep Country’s sleep solutions. Supporting much of these efforts has been the fully transactional SleepCountry.ca website (Dormezvous.com in the province of Quebec), which was launched back in November 2019. These partnerships, acquisitions and digital enhancements are emblematic of the retailer’s penchant to grow and the results, says Schaefer, of many years of hard work and determination.
“People are starting to observe a lot of innovative new ideas being generated by Sleep Country,” he admits. “But these things have been building behind the scenes for a long time now. During this time, the entire team has been incredibly focused and committed to remaining on course with respect to the Sleep Country brand and the values and innovative thinking that have served as the foundation of the company for so many years. We’ve been clear with our vision and have persevered through many recent challenges in order to start to reinvent the way retail is perceived by all stakeholders. All of our partners have been tremendous to work with and have been instrumental in our efforts to continue innovating and delivering our brand to more Canadians across the country.”
Filling customer needs
Given the success of Sleep Country’s current relationship with Walmart Canada, combined with the fact that the retail giant with the lowest everyday price operates 400 stores nationwide serving 1.5 million customers each day, there remain immense opportunities to grow the partnership further. Schaefer stresses that the Express pilot locations are meant to serve as a testing ground for Sleep Country in order for the brand to properly gauge the effectiveness and success of the new concept. Based on its track record and performance to date, however, it seems that Canada’s specialty sleep retailer, which currently operates 287 stores, 17 fulfillment centres and 2 storage hubs across Canada, may be on to something extraordinary.
“With respect to our Express stores, we’re going to test, test and test some more,” he says. “Over the next few months as we monitor and analyze results and performance of the concept, we’ll be able to hone in on what works and what doesn’t in order to determine the optimal experience for the customer. And, if results prove to be what I expect and all goes well, then I can foresee comfortably growing these locations by between 60 and 100 across the country. In fact, we may end up rolling out even more than that given the flexible, adaptive nature of the concept that we’ve created. The Express store doesn’t need to be exclusive to Walmart Canada locations. They can be anywhere, as long as the experience the stores offer fills a customer need and increases engagement with the Sleep Country brand.”
Shifting consumer preferences
With respect to the retail experience, it’s one that Schaefer says continues to change with ever-evolving consumer preferences that have been significantly influenced by impacts of the COVID-19 global pandemic. As consumer preferences shift, so do the ways in which retailers must engage with their audiences. And, considering all of the channels and devices available to today’s consumer to facilitate and support research, review and purchase of products and services, the task at hand for retailers seems as complex as it is nebulous. However, as Schaefer points out, Sleep Country’s endless curiosity and propensity to consistently improve its offering enables its ability, providing it with an impetus, to continuously broaden its understanding of the customer and their journey with the brand.
“The lid has been lifted on ecommerce,” he says. “There’s no question about that. The acceleration of online shopping is one of the biggest results of the pandemic on retail. However, what we’ve also come to realize through the pandemic is that the physical, experiential component to retail is perhaps more important now than it ever has been. People like to visit the stores of their favourite brands. They like to touch and feel product. They like to experience wonderful atmospheres. Only, today, it represents one piece of the omnichannel experience. In the end, people want choice. So, we need to be cognizant of the fact that the retail journey is evolving and including more touch points today than at any time previous. Fortunately for Sleep Country, the team is made up of curious souls who have embraced these shifts in consumer behaviour and changes to the landscape to continue pushing the brand forward, broadening our community of customers as we continue to grow our sleep ecosystem.”
Removal of borders and limitations
Recounting the work that’s been put in by Schaefer and his team over the course of the past five-plus years in order to support the success that Sleep Country is currently enjoying is no doubt impressive. Its collective vision and strategy have lent extremely well toward the creation of a roadmap that seems to be leading the brand to further expansion and enhancements. The digitization of the business, the clever acquisitions the brand has made and the innovative partnerships its developed with one-time competitors are all results of the team’s dedicated focus. And, as Schaefer reveals, there’s still plenty of road for the company to cover as it continues to make incredible gains and grow the Sleep Country brand even further.
“Our brand and business used to be defined by the landscape and geography of Canada. People looked at us as a brick-and-mortar retailer. But the world has changed and the digital transformation that’s been accelerated by the pandemic has just opened up borders. Does that mean borders outside of Canada? Maybe one day. But, most importantly, the digitization of the industry has removed limitations with respect to the ways by which we can reach our customers, beyond the geographical footprint that we’ve created from coast to coast. So, we’re going to continue exploring and talking to innovative and relevant brands that have the same vision of the future as we do and partnering with them to deliver excellent value. And we’re going to maintain our focus on our customer, the ways they want to engage with the Sleep Country brand and how we can continue to improve on the service we provide for them.”
