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Upscale Vancouver-Based ‘Provide Home’ Launches Design Gallery Concept Focused on Elevating Furniture ‘Creators’: Interview

By
Mario Toneguzzi
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Provide Design Gallery (Image: Ema Peters)

Vancouver-based Provide Home has launched a new home furnishings concept called Provide Design Gallery with a dedicated focus on elevating and celebrating the very best of local, high-end furniture creators.

Provide Home says that it is Vancouver’s premier design destination for understated luxury homewares since 2007. The new gallery is just down the street from that location.

“A natural extension of the Provide brand, Provide Design Gallery champions local design for big-scale furnishing with artful expressions in an evocative environment. And as one who is passionate about curating the very best for my clients, I’m very pleased to share this new home furnishing concept with Vancouver and the rest of the world,” said David Keeler, owner and visionary behind the Provide Design Gallery. “Provide has always been about understated luxury, and the new Provide Design Gallery will further that point of view.

Provide Design Gallery (Image: Ema Peters)
David Keeler

“A couple of years ago we collaborated with a local wood furniture maker called Lock & Mortice on an exclusive furniture line that featured a dining table, bench, some side tables and from that success I could see an opportunity for expanding that collection and also working with more local furniture makers here in Vancouver and in BC. 

“The current Provide is a great location. I’ve always been very happy with that. So the idea of moving to a bigger space wasn’t an option in my mind. I wanted to create another space in the same area because I think this area, the Armoury District, is great for design. There’s a lot of other retailers around here. That’s where the idea came from to open up a secondary space that could feature more furniture, lighting and art in a more realistic living environment – a living area, a dining area, a bedroom area, etc.”

Spanning 1,700 square feet, the new space will showcase 15 to 20 designers and several artists as part of its curated and ever-evolving offering. Specifically, top-tier local furniture collections from the likes of Studio Sturdy, Matthew McCormick, and Brent Comber will be enhanced by accents from internationally renowned designers like Ben and Aja Blanc, Arno Declercq, and Caroline Blackburn. 

Provide Design Gallery (Image: Ema Peters)

But it’s the Provide Series, Provide’s in-house furniture line designed in collaboration with Lock and Mortice that will take centre stage, with four new additions to the line unveiled in time for the gallery’s recent opening. These include a sofa, a day bed, a shelving unit, and a bed. All elements from the Provide Series are made from solid wood and come in dark black or white oak and are characterized by clean lines, soft curves, and asymmetrical elements. 

“I always wanted to have another location and we did think about other areas like for instance Whistler but this is what I decided to go forward with for the current expansion,” said Keeler.

“Our typical clientele is probably in their 40s, 50s. Someone who really appreciates design, definitely tends to be more affluent, and appreciates something that is made locally and then our other strong clientele would be the interior design community here in Vancouver and beyond.

“The new gallery has more of a moody and sophisticated feel than the current Provide. The current Provide is very West Coast. It’s bright and open. We’ve got lots of windows. This one has a little more darkness to it with dedicated lighting for specific vignettes for the living area, dining area, etc. It’s got a curtain, linen, drapery wall as well as softness to it. Big wood beams. There’s a gray stone tile floor. So it’s still kind of minimal but very warm overall.”

Provide Design Gallery (Image: Ema Peters)

Keeler said the Provide Design Gallery seeks to redefine and reinvigorate the local furniture design scene with a new-to-market, gallery-like space inspired by similar artful venues found in Paris and Milan, but with a unique West Coast expression.

“With Provide Design Gallery, we recognize that creating and building locally is important, now more than ever. Furthermore, our clients are keen to support local design but they also appreciate that they can have a designed piece of furniture that was made at an incredibly high standard – that equals or even surpasses something made in Europe – and all with less cost and environmental impact. There is incredible design talent here in Canada – especially in Vancouver – and you don’t have to source far to have beautiful furniture, lighting, accessories, and art for your home. I look forward to welcoming everyone to Provide Design Gallery today and into the future,” said Keeler.

The company ships all across Canada and into the United States.

“The space itself is unlike anything currently in Vancouver, with visitors experiencing a sense of warmth and comfort due to the plethora of luxurious furnishings, but juxtaposed against the gallery ‘s high drama design and architectural elements which results in a gorgeous experience made to inspire possibilities,” says the company.

“Upon entry, one is immediately captivated with a one-of-a-kind wood wall sculpture with LED elements by Brent Comber, the painted black wood ceiling that adds extra moodiness, and a full wall of natural linen drapery. The delights only continue as one passes through the carefully curated living, dining, casual seating, office, and bedroom spaces that show how to expertly apply the collections to your home, including how to style a sofa with cushions and a throw, a bookcase with decorative objects, or a bed with exquisite linens and pillows.”

In a nod to global art centres, the gallery will be routinely updated with unique and ever-evolving vignettes, which will allow clients to truly picture how the various collections would translate into their own homes.

“It’s quite possible that each time you visit, you’ll be treated to a new visual and design experience,” added Keeler. 

Vancouver Retail Market Most Resilient in Canada Following Pandemic Struggles: Report/Interview

By
Mario Toneguzzi
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Yaletown in Downtown Vancouver (Image: Lee Rivett)

The Vancouver retail market remains one of the most resilient in the country, perhaps the most resilient, says a first quarter report by commercial real estate firm JLL.

“The prospects for Vancouver post-pandemic remain bright. Its population will grow by more than one-third in the next generation, adding one million residents. The region remains Canada’s second most attractive for immigration, with the highest immigrant retention rate of any metropolitan area,” said the report. Vacancy rates are also low with a 1.9% vacancy rate in the first quarter of 2022, compared to 2.5% in the first quarter of 2021.

“While there is a strong need to build to accommodate this growth, this is an opportunity for retail development, especially within walking distance of homes. Vancouver withstood the pandemic gracefully. Retail sales in Vancouver fared better than in other major markets. Highly connected, Vancouver supported the acceleration of e-commerce and adoption of hybrid shopping.”

Scott Lee, Executive Vice President, JLL, said overall retail is slowly finding its footing.

“I think it’s better in some areas and still going to take some time in recovery in other areas,” he said.

Hudson’s Bay in Downtown Vancouver (Image: Lee Rivett)
Scott Lee

“(The downtown) seemingly felt better than other markets. We weren’t as locked down as in Quebec and Ontario. I think that’s the biggest thing. I did personally travel to Toronto and Montreal during COVID and it was very much a ghost town in those peak times of COVID versus Vancouver. We don’t have an underground system per se, we have a very limited one. 

“So there was activity on the street, obviously not as much activity as we would normally see, but more than the other markets.”

The JLL report said digital natives took notice of the local social-media engagement and are opening flagships to enhance the retail experience.

“Although office workers, tourists, and students abandoned the downtown area during the peak of the pandemic, Gastown is once again looking up as workers trickle back to the office, cruise ships dock again, and in-person classes resume. In the meantime, shoppers stayed closer to their homes and West 4th, a prime suburban corridor, increased in popularity,” it said.

With strong provincial support, Vancouver quickly became a destination for electric vehicles (EVs). Auto makers VinFast, Polestar, and Lucid recently identified Vancouver as a key market.

Lucid Motors at CF Pacific Centre (Image: Lee Rivett)
Rolex and Chopard in Downtown Vancouver, looking towards Alberni Street (Image: Lee Rivett)

“Luxury retail has held up well, and we might be reaching the point where brands look for alternatives to Alberni Street,” added the JLL report. “Asians continue to influence Vancouver greatly, and Asian brands arrive in Vancouver before expanding to the rest of Canada. Chinese have an especially strong preference for luxury and e-commerce. According to Vivintel, more than 60 million Chinese adults are considering immigration to Canada. International retailers continue to choose Vancouver as a landing hub in Canada. Emerging categories include athleisure, optical, and outdoor.”

Vancouver has grown into a luxury hub in North America, said JLL, adding that many saw an opportunity to develop a retail market to target foreign visitors, especially those coming from Asia. By 2025, Chinese consumers are set to become the dominant nationality for luxury, growing to represent 40 to 45 per cent of global purchases.

“Per Klarna’s latest research, luxury shoppers prefer traditional brick-and-mortar for buying most product categories. Only two in five shoppers who bought luxury products last year did so online, and 84 per cent of luxury shoppers consider touching and seeing a product essential to the luxury-shopping experience. While many have expanded their e-commerce operations, retailers will continue to rely largely on in-store shoppers,” explained JLL.

“Despite being expensive within Canada, lease rates in Vancouver are still lower than those in Europe ‒ making space reasonably priced in the eyes of international retailers. At one of the highest rates in Canada, one square foot on Alberni Street can reach $275, but on Paris’s Avenue des Champs-Elysées the cost is upwards of $1,200.

“Bain & Company reported that in 2021 luxury brands continued to increase control over distribution, with a rise in directly operated channels. The direct retail channel for brands has grown to the point that it now accounts for almost half the market and is poised to overtake the wholesale channel.”

Birks/Patek Philippe and Graff in Downtown Vancouver (Image: Lee Rivett)
Burrard/Georgia Street corner in Downtown Vancouver (Image: Lee Rivett)

Luxury retail continues to expand on Alberni with the addition of two premium jewelry brands: watch brand Tudor and jewelry brand Chopard, both operated by local licensee Global Watch Company. Italian luxury brand Gucci will renovate and expand its standalone downtown Vancouver store at the Fairmont Hotel Vancouver, annexing space formerly occupied by watch brand Omega. A new Omega boutique is now under construction in the hotel across the hall to replace it.

“Today, Alberni Street concentrates most of the luxury names in the city, including Tiffany & Co., Jimmy Choo, Van Cleef & Arpels, IWC, Panerai, Vacheron Contantin, Montblanc, De Beers, Hublot, Prada, and Burberry. However, luxury or upscale branded retail is also flourishing in other parts of the city,” added the report.

“The McArthurGlen Designer Outlets at Vancouver International Airport added several premium brands this summer, including Burberry, Max Mara, Blubird, Matt & Nat, Rossignol, Herschel Supply Company, and Tory Burch. McArthurGlen is following the footsteps of luxury-heavy Toronto Premium Outlets in Halton Hills, Ontario.”

JLL said fewer restrictions and higher mobility have contributed to a better retail environment during the pandemic, and Vancouver has had the best retail performance within major markets since the start of the pandemic. Retail sales in 2021 increased by 14 per cent compared with 2019, and by 17 per cent compared with 2020.

The Post in Downtown Vancouver (Image: Lee Rivett)

And population growth will fuel that continued growth in retail sales. JLL said Greater Vancouver is looking to add one million residents over the next 28 years for a total population of 3.8 million. 

“To reach this milestone, half-a-million housing units and just as many jobs will need to be created, as well as 40 million square feet of retail space. In 2050, Greater Vancouver expects to hold 1.6 million dwelling units, 1.9 million jobs, and 160 million square feet of retail,” said the commercial real estate company.

“Greater Vancouver projects it will gain 30,000 to 40,000 net immigrants per year, which accounts for almost 70 per cent of the population growth. In the short term, this figure is adjusted to the updated federal immigration plans, and over the longer term it is assumed to steadily increase at an annual growth rate.

“If current trends prevail, most of this growth will be in the areas of South of Fraser – East, where the population will climb from about 783,000 today to nearly 1.2 million in 2050.”

Le Château Makes Brick-and-Mortar Comeback with Suzy Shier Partnership: Interview with Veteran Franco Rocchi

By
Mario Toneguzzi
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Image: Le Chateau

Iconic Canadian fashion brand Le Château is making its comeback in brick and mortar stores with the launch of a new collection of clothing in 37 new concept Suzy Shier locations across the country. 

“As proud as we are of our online site, we are also delighted to be back in stores,” said Franco Rocchi, former Le Château Executive and now Senior Director of Marketing on the new Suzy/Le Château team. “The brand was born in brick-and-mortar, and we couldn’t be happier to rejoin the community of retailers in shopping centres across the country. We are also proud to join our sister brand Suzy in stores now providing a full-service destination for our customers: fashion daywear and workwear at Suzy, while Le Château takes care of all your nighttime and special occasion needs. Le Château also announces the return of its beloved footwear collection, and Le Château menswear makes its online debut.”

Franco Rocchi
Franco Rocchi

Rocchi described Le Château and Suzy Shier as Canada’s new fashion powerhouse.

“Le Château was founded in 1969 and has a long and storied history in Canada. In its heyday, we had 240 stores across the country, this is pre-digital, not only primary and secondary markets but we were in tertiary markets as well. Anywhere from Sydney, Nova Scotia to Kamloops, British Columbia. Ninety per cent of Canadians had a Le Château within a 30-minute drive from where they lived,” said Rocchi. “We permeated the Canadian brick and mortar scene.

Image: Le Chateau

“In 2020, Le Château closed. I was with them for 40 years until the end. So Suzy acquired the intellectual property of Le Château. The fact that Suzy won out in the end was a great thing for Canada because other contenders for the intellectual property, serious contenders, were all based out of the US and would have seen the brand relocated to the US. Jobs would have been lost. Suzy has acquired the brand and has maintained the headquarters of the initial brand in Canada in Montreal.

“If you look at the last 10 years of Le Château, it had really found its groove in occasion wear. Dresses, footwear and accessories for those special evenings whether it’s weddings, or parties, or stepping out, or date night. That had become a strong point and in fact even during the challenging last five years that part of the business had continuously shown year over year growth. We had become the dominant players in that special occasion segment, niche.”

He said Suzy, which was also founded in the 1960s in Montreal, is a master of daywear, casual wear, weekend wear, and workwear.

“This special occasion dress niche was not something in their portfolio and with the relaunch of Le Château we call it Suzy by Day, Le Château by Night. We’ve created a brick and mortar experience for customers in 37 stores to start where the two brands co-exist. Sections are carved out in the stores with distinct personalities but a customer can now get a 360-degree service for all their lifestyle needs from day to night within one brick and mortar store,” said Rocchi.

Le Chateau is shuttering Canada-wide, including at SouthCentre Mall in Calgary. Photo: Jessica Finch.

“The occasion wear is really interesting because there really isn’t anyone in Canada, retail, brick and mortar, that specializes in that lifestyle and at our price point . . . So together we’re looking at a synergy between the two brands that will be experienced in these 37 stores.”

Rocchi said that in some cases Suzy acquired leases of some of the old Le Château stores.

“The new Le Château is really focused on occasion wear. The prior Le Château we covered every lifestyle from casual. We had jeans, we had T-shirts, we had all of that. The new Le Château is going to be focused really on dresses, occasion wear. It has a very glamorous look and feel to it,” he said.

In October 2020, Le Château filed an application seeking protection of the court in order to proceed with the orderly liquidation of its assets and wind down of its operations through the Companies’ Creditors Arrangement Act. At the time, Le Château, headquartered in Montréal, had 123 stores across Canada, in addition to its e-commerce website. 

In June 2021, Le Château announced the sale of all of their intellectual property as well as certain other assets to Suzy’s Inc.

Le Chateau at Guildford – Photo by Lee Rivett

“Le Chateau’s Spring/Summer 2022 Collection is the first full launch since the brand’s return to the fashion scene. It upholds the brand’s reputation as a master dress designer, with styles, prints, and silhouettes for every occasion. This season, inspirations range from the quiet beauty and romance of the garden, channeling feminine florals and pastel-hued chiffons, to the cutting edge vibes of cut-outs, sequins, and sparkles that will stand out in any special occasions: proms, weddings, or that special night on the town. Shimmering metallics and new stunning silhouettes in dresses and jumpsuits position the brand as the go-to destination for all special occasion needs,” said the company.

Under new Canadian ownership, the Le Château Spring/Summer 2022 Collection will be available on lechateau.com and in 37 select Suzy Shier stores across Canada as of April 21. Le Chateau dresses will also be available at the HBC Marketplace as of April 12. 

Store locations include Vancouver, Kelowna, Edmonton, Calgary, Fort McMurray, Red Deer, Saskatoon, Toronto, Brampton, Windsor, Burlington, London, Waterloo, Oshawa, Cambridge, North Bay, Ottawa, Montreal, Rosemere, Chicoutimi, Quebec City, St Jerome, Drummondville, Drummondville, St. John’s, and Moncton.

Video Interview: Scott Arsenault, CEO of Ren’s Pets, on the State of the Canadian Pet Industry

By
Mario Toneguzzi
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Video Interview: Scott Arsenault, CEO of Ren's Pets, on the State of the Canadian Pet Industry

Scott Arsenault, CEO of Ren’s Pets, discusses how the pet industry has been booming in Canada.

Arsenault talks about the company’s recent growth and plans for continued expansion, some key trends in the pet industry today, the impact of the pandemic, and what the acquisition by Legault last year has meant for the company.

The Video Interview Series by Retail Insider is available on YouTube.

Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior National Business Journalist with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com

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Canadian Retail News From Around The Web For April 13th, 2022

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Harry Rosen Expands into Golf Apparel In Effort to Grow Luxury Menswear Marketshare: Interview

By
Mario Toneguzzi
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Harry Rosen at 82 Bloor Street (Image: Craig Patterson)

Harry Rosen, Canada’s leading luxury menswear retailer, is accelerating growth in its sportswear category with style-forward golf apparel and the launch of a marketing campaign which was tied into the recent Masters golf tournament.  

“For over six decades, Harry Rosen has helped Canadian men look and feel their best in their personal and professional lives. Advising men on how to present a look of confidence on and around the golf course is the next step,” said Trinh Tham, Harry Rosen’s Chief Marketing Officer. “We’re thrilled it’s come to life with the irreverent spirit inherent to our brand. The campaign is vintage Harry Rosen cheek.

Trinh Tham

“We just teed off with the curation of golf attire for a style-forward customer who is always looking to define his look. The offering that we’ve put together is really based on this groundswell demand that we’ve been seeing and the growth and success of our sportswear assortment at Harry Rosen in-store and online.”

Tham said the curated golf collection will have a specific in-store presence at all the retailer’s locations. 

“In-store you’re going to see wonderfully curated displays of golf attire. We’ve been following the trends of our customer interests, always focused and honed in on what our customers are interested in,” she said.

Harry Rosen at First Canadian Place (Image: Dustin Fuhs)

“And we knew that membership at Canadian golf courses had increased exponentially. We heard that these memberships had soared about 113 per cent in 2020 compared to 2019. And we also saw that among Canadian golfers, 65 per cent of them were aged between 18 and 34 and this is a group of customers we’re very interested in introducing to the Harry Rosen brand and Harry Rosen ecosystem.

“In addition to our tailored suiting, eventwear, and formal workwear, our focus on sportswear has also responded to men’s growing needs and lifestyle and look choices as well as the extraordinary uptake on the sport of golf.”

TV spots aired during the recent live broadcast of the Masters Tournament, featuring all the trappings of a professional golf broadcast, including the gushing commentary — except the commentators were more interested in the player’s outfit selection than their shot selection. 

“We hear far more about a player’s shirt game than their short game and the break in their pants than the break in their putt,” said the retailer.

Harry Rosen at 82 Bloor Street (Image: Craig Patterson)
Harry Rosen at 82 Bloor Street (Image: Craig Patterson)

“Interest in golf surged during the pandemic, with tens of thousands of young men across Canada taking up the sport. But many still aren’t quite sure how to navigate fashion on the links. Thankfully, while there may be lots of places to get advice on your game, nobody knows golf style like Harry Rosen.”

Harry Rosen said it has curated a selection of products for the modern man and savvy golfer. Customers will find performance fabrics and stylish, streamlined looks from brands including Greyson, J Lindeberg, Brax Lab, RLS, KORS Michael Kors, Lacoste, and Psycho Bunny, it said.

“Harry Magazine, the retailer’s fashion publication, features Taylor Pendrith, the proudly Canadian pro golfer, as he brings his swing to this year’s PGA Tour in his rookie season. Pendrith is an ideal Harry Rosen role model, known to be loyal and authentic, with a hard-working ethic and sense of ease on the rounds. Golf colleagues and fans alike predict that it won’t be long before the affable Canadian rising star adds a PGA Tour title to his on-course accomplishments,” it said.

“The golf campaign was conceived by agency partner Zulu Alpha Kilo. It’s the latest installment in the brand’s “Set the Tone” platform, launched in 2020. The idea stems from Harry Rosen’s founding principle: to help men dress their best and feel their most confident in any situation.”

The campaign includes video, out-of-home, social, in-store collateral, and print in golf publications. Media buying was handled internally by Harry Rosen and with Horizon Media.

“Our thought is while we can’t help you with your technical golf game, we can certainly help you look the part in true Harry Rosen style where you get to personalize your look to reflect your individuality even on the golf course. That’s how we came up with this (six-week) campaign,” said Tham. 

“With the campaign, we really wanted to surprise and delight our customers by entertaining them with the style commentators that were posing as real golf commentators. I had a lot of people text and ask me if those were real commentators in our spots.”

Harry Rosen, which was founded in 1954, has 17 stores across Canada.

Podcast [Interview] Graham Wong of LAUFT Discusses Expansion of Flexible Work Concept

By
Retail Insider
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Podcast [Interview] Graham Wong of LAUFT Discusses Expansion of Flexible Work Concept

Craig has a conversation with Graham Wong, founder and CEO of flexible workspace concept LAUFT, about its plans for the future which includes locations within shopping centres and even retailers.

The Interview Series podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.

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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!

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/

Meals in the Metaverse Could be a New Frontier for Foodservice Businesses: Charlebois

By
Sylvain Charlebois
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Chipotle Burrito Builder is a new simulation experience that will challenge Roblox players to roll burritos in the metaverse to earn Burrito Bucks, the brand's in-experience currency.

Some restaurants these days are looking for new ways to reengage with a market heavily affected by a two-year old pandemic. Restaurants have done a lot of juggling over the last two years: Redefining menus, thinking of new ways of connecting with customers, in other words, pivoting to a positive future. It’s been nothing short of impressive. One approach which is gaining some traction recently is to look at a new market, the metaverse. Yes, lots of hype about the metaverse, also known as augmented reality, and it is also providing new opportunities for the food service industry.

The metaverse is also another reason so many are talking about cryptocurrencies these days. Many see the two rely heavily on each other as they develop. For example, Crypto Baristas aims to bridge the gap between the physical and virtual worlds for coffee lovers. Not only does it bring coffee fans together in the metaverse, but the project is funding an actual coffee shop in New York City called Coffee Bros., which partners with coffee farmers from around the world. It’s all done with cryptocurrencies.

Few knew how the technology would escalate and scale in a way that it would change how we communicate. Not to mention, how the internet changed how we live. The metaverse is a virtual world that continues to exist and evolve even if you’re not around by way of some virtual reality devise. You can get in and out while the world carries on, with or without you. You can create, buy, and sell goods and yes, order and virtually eat food in a digital economy. You obviously can’t physically eat food in the metaverse, nevertheless, there are numerous other things you can do that you can’t do in the real world.

In the more idealistic concepts of the metaverse, it’s interoperable, allowing anyone to take virtual items like clothes or cars from one platform to another. You can make money, get credits to purchase things in the real world. Very fascinating.

Chipotle recently teamed up with Roblox to have users create meals that earn credits for real food. When they began inviting people to join their restaurant in the metaverse and collect credits for their next Chipotle order by receiving special codes, over 20,000 people were waiting to get in. McDonald’s announced recently that it intends to open new restaurants in the metaverse. Wendy’s and Hooters have also made announcements in the last few days. In Canada, Restaurants Canada launched a metaverse marketplace for its industry, a trend hunter partnership to revive the foodservice Industry. It will be launched in May. We are expecting other chains to follow suit over the next several months.

It is still unclear though how the metaverse will change our lives, or how restaurants can make money selling food virtually. It may be that it will come and go, like many other things in life.

However, the potential crossover between the real food world and a virtual one in the metaverse can help companies to look at the market differently. Think about how employees can be trained or allow chains to try new menu items. Experiences can be changed in a way they can’t right now. For example, the metaverse could offer consumers a chance to eat breakfast in Istanbul, lunch in Paris and dinner in Rio, on the same day. Or, on a more personal level, you could go to a family restaurant and be served by your own ancestors and experience the food they ate many years ago. Most of the industry R&D can occur in the metaverse. It may not be real food, but you are in fact dealing with avatars representing real people who will tell companies what they like and dislike. The metaverse can be limitless, but of course, how consumers would react to experiences can bring its load of unpredictability.

The metaverse is also another reason so many are talking about cryptocurrencies these days. Many see the two rely heavily on each other as they develop. For example, Crypto Baristas aims to bridge the gap between the physical and virtual worlds for coffee lovers. Not only does it bring coffee fans together in the metaverse, but the project is funding an actual coffee shop in New York City called Coffee Bros., which partners with coffee farmers from around the world. It’s all done with cryptocurrencies.

Most Canadians may not buy into this metaverse concept at all. Food is food, and you either order it from a restaurant or you cook your own. In other words, sticking to the basics.  Let’s face it, wearing VR headsets can be a pain, making us look silly. Some may even experience motion sickness while wearing them. Nothing pleasant about that.

The online world is different than before the pandemic, especially in the food industry. There’s more business, more traffic, so converting some of that traffic into a virtual world is not as hard as two years ago. Joining the metaverse for a restaurant is not that expensive and the possibilities are interesting. If this helps our food service get back on its feet, all the power to them.

Canadian Retail News From Around The Web For April 12th, 2022

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Brands Increasingly Going Direct-to-Consumer in Canada as Pandemic Changes Fundamentals: Expert Interview

By
Sean Tarry
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Yorkdale Shopping Centre (Image: Craig Patterson)

Despite the numerous challenges that have restricted much of the retail industry over the course of the past two years, hampering merchants’ efforts and impeding progress, opportunities have also arisen for those in the position to take advantage of them. The digitization of the world around us, which has sparked a sharp rise in the consumer’s adoption of online channels to make purchases, has changed the way many within the industry are conducting their businesses. New processes and modes of product delivery and transfer are being developed in order to meet the growing expectations of an increasingly digital consumer. It’s a shifting retail environment that enables brands to get closer to those engaging with them. And, according to industry expert, Liza Amlani, it’s an environment that’s proving ideal for the development of direct-to-consumer (DTC) brand strategies.

“There are a few different factors that are driving brands to invest more into their DTC strategies,” she says. “Most notably, however, much of the work currently being done in this area is through the lens of getting closer to the consumer. A lot of brands are losing a lot of third-party data. It’s really changing the way brands think about product and the opportunities to leverage insights related to them in order to drive better decision-making. Capturing the right product insights goes a long way toward informing product creation, merchandising and marketing and promotion. As a result, a number of brands are attempting to own and leverage this data to close the feedback loop and build deeper relationships with their customers. It allows them to better understand what consumers want and develop the right product for them at the right time in the right channel. This really comes from direct insights from customers.”

Speed to market

It’s a shift in thinking among brands that’s been building momentum for some time, recognizes Amlani, but is one that she says has certainly been facilitated by impacts of the COVID-19 global pandemic and subsequent accelerated digitization of the retail industry. Brands like Canada Goose, Arc’teryx and others have benefitted tremendously from the growth of ecommerce and changing consumer purchasing preferences and behaviour. And, there are online marketplaces being introduced on a consistent basis which are meant to help consumers more easily find their favourite DTC brands. It’s changing the retail landscape considerably, suggests Amlani, who also points out the ability that it provides DTC brands in increasing their product cadence.

“Another force that’s prompting brands to develop or enhance their DTC strategies comes from their desire to accelerate their speed to market,” she asserts. “In order to do this, they need to be creating teams that really understand the customer and who are building the deeper relationships that are required. And, it’s not only important from a product and merchandising insights perspective. Some brands are beginning to use insights across multiple categories, helping to break down category silos, bringing everyone working for the brand onto the same page. Again, it’s all about getting closer to the customer in order to create and introduce the products they want as quickly and efficiently as possible.”

Digital transformation

Amlani goes on to explain that, in addition to helping brands gain control of their customer data and supporting them in increasing their speed to market, there are a number of other benefits that brands receive as a result of the development of an effective DTC strategy. Brands today, she says, are starting to assess whether or not they’re overly represented in the market. They’re also recognizing some of the wholesale nuances that a DTC strategy helps them avoid, like navigating the negative, devaluing impact adjacent brands might have on their product. One or a number of these factors are leading many brands to close or scale back some of their retail accounts, a move most noticeable by Nike’s decision to cutback some of the products that it makes available through Foot Locker. It’s been estimated that an astounding 70 per cent of the retailer’s sales in 2021 were directly generated through Nike product. Upon news of Nike’s decision, Foot Locker’s stock plummeted 30 per cent. Amlani says that it’s a trend that’s mounting, and one that she believes is leading many multi-brand retailers to increase their digital investment.

“This is really going to push a number of retailers to accelerate their digital transformations,” she asserts. “This is especially true for retailers with multiple banners that are buying the same product. The challenge inherent in that kind of structure is that when different teams are buying from the same product catalogue, they end up recreating things like item master and product knowledge, resulting in a lot of duplicated work that isn’t consistent across banners and channels. And so, brands like Nike and others who have been a little more forward in their thinking with respect to digital transformation are realizing that the retailers that they’re partnering with aren’t fast enough for them. As soon as Nike develop a product, it’s on their website, app and social platforms. For retailers who have not advanced their digital capabilities or updated their tech stack, there will remain a disconnect between them and their brand partners who are working in the cloud and with digital tools. It’s already leading some to reduce the amount of product they share with retail partners. And I believe it’s a trend that will continue for some time longer.”

Leveraging customer insights

Apple Store at Yorkdale Shopping Centre (Image: Craig Patterson)

It’s a situation that Amlani says will result in a number of multi-brand retailers being left behind if they don’t catch up to their brand partners and the fast-advancing digital curve. She suggests that in order to combat these challenges, some are simply increasing their merchandising strategy to encompass a wider breadth of brands that appeal to their customers and, in some cases, enhancing the representation of brands within their product assortment and mix that truly reflect the retailer’s community of shoppers. This approach, however, has its obvious limitations, only allowing teams to be as creative as the product that’s available to them. In order to really respond in the face of increasing DTC competition and success, Amlani says that multi-brand retailers will need to leverage their own internal innovation and ingenuity and understanding of their customers.

“Creating private label products is perhaps the most effective way for multi-brand retailers to compete in this evolving retail landscape,” she says. “But doing this requires a great deal of work and is an area that many retailers don’t even want to venture into. However, for those with the resources and creativity to be able to execute on this, private label represents a fantastic way for some to really start to take advantage and deepen their understanding of their customers. And, again, this is all about engaging with the consumer, developing meaningful relationships with them, listening to them, and closing the feedback loop in order to hone an awareness of the product they want. The direct insights that many have access to through their customer-base can be used to great effect, informing and driving important decisions around design and product development.”

Extended product life cycle

It could be suggested by some, perhaps in a bit of a knee-jerk kind of way, that the current state of the traditional retail model could be under threat as a result of shifting consumer behaviour and an ever-expanding digital retail ecosystem. Might it be the demise or diminishing of the distributor? Amlani doesn’t think so. Instead, she believes that the pressures being placed on multi-brand retailers by their DTC competitors is a natural evolution of the industry that will simply yield greater innovation. In fact, she adds that as a result of rising sentiment around corporate social responsibility, there may soon be a need for even more distributors in order to properly manage an extended product lifecycle.

“What we’re going to start seeing is a lot more activity in the off-price space,” she says. “And, we’re also going to see increased activity around product beyond its full-price journey. That’s where we’re going to see more distributors and their increased importance as they take excess product. As retailers and manufacturers continue to place greater emphasis and focus on reducing the waste they create and operating within a more responsible and sustainable retail model, it’s going to push everyone to think about the product and its journey differently, resulting in a longer product life cycle. It’s actually in the end going to drive closer, deeper collaboration between distributors and their brand partners.”

Investing in technology

In order for multi-brand retailers to achieve this, however, Amlani underscores the significance of their task ahead, highlighting the amount of work that’s required. It’s a situation that calls for resilience, self-assessment, forward-thinking strategy and a penchant to get as close to the customer as possible. After all, retail is about delivering the right product and creating delight for the consumer. And, according to Amlani, it’s a fact that goes a long way toward highlighting just how critical it is for organizations within the industry to focus more energy and invest further into the development of their digital initiatives in order to achieve their objectives.

“Going forward, it’s really important for multi-brand retailers to look at other brands within the industry and learn from them. Brands like Nike, Amazon and Walmart take risks around their investment in technology and the way they test and iterate with product, understanding that they have to consistently improve their speed to market. Those brands are obviously the benchmarks for this type of approach to retail. But there’s a lot that can be learned from watching the way they do things in order to satisfy their customers. To start down that path and realize the opportunities in front of them, retailers have got to ramp up their investment in technology and accelerate their digital transformation.”

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