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‘Canada United’ Initiative Aims to Support Local Businesses with Major Partnerships

By
Mario Toneguzzi
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A national movement — Canada United — has been launched to support local businesses in communities across the country.

The initiative was spearheaded by RBC which brought together more than 50 of Canada’s leading brands, the national Chamber of Commerce network, and business associations to rally Canadians to “show local some love” by buying, dining, and shopping local.

CANADA UNITED PLANS TO KICK-START AN ECONOMIC REBOUND FOR SMALL BUSINESSES

“As Canadians continue to work hard to limit the spread of COVID-19, it is more important than ever to come together with one voice to safely support the re-opening of Canada’s local businesses and our economy,” said Neil McLaughlin, Group Head, Personal & Commercial Banking, Royal Bank of Canada.

CANADA UNITED LOGO. PHOTO: CANADA UNITED FACEBOOK

“Canada United was created to kick-start an economic rebound by rallying consumers to give local businesses the support they need to re-open during these uncertain times. By bringing together government, business associations, and corporate Canada, we are looking to start a movement to get Canadians to buy local and support businesses across the country. We are genuinely excited by the energy that all of our partners are bringing to this effort.”

Officials said Canadians are invited to join the Canada United movement by buying and dining local, including celebrating and supporting local businesses during the Canada United Weekend from August 28 to 30.

Canadians are also encouraged to watch the Canada United videos online at GoCanadaUnited.ca, like posts from @GoCanadaUnited on social media and use #CanadaUnited on Twitter to demonstrate their support. For each of these actions until August 31, RBC will contribute five cents up to a maximum contribution amount of $2 million to the Canada United Small Business Relief Fund.

The Fund will provide small Canadian businesses with grants of up to $5,000 to cover expenses related to personal protective equipment (PPE), renovations to accommodate re-opening guidelines, and developing or improving e-commerce capabilities.

“If there has been one silver lining in all the tragedy and sacrifices of the current crisis, it has been the spirit of collaboration and unity of purpose that has been evident between levels of government, across provinces and across sectors,” said Rocco Rossi, President and CEO of the Ontario Chamber of Commerce. “We are calling on that same unity of purpose with Canada United. Small, local businesses are the heart of our communities, our Main Streets and our economy. Together, it is time to show locals some love.

“We were blown away by the scope of vision that RBC had to do something to really celebrate and help small business across the country that has been hit so hard by this crisis. There are lots of great buy local campaigns across the country. But no one has put together this kind of coalition of iconic Canadian brands and media companies that in addition to wanting to do a media campaign to encourage people to support local businesses, to buy local, support small business, to add a component that each time there’s a social media interaction, a tweet, a post, a share, a like, that RBC and the coalition is prepared to put five cents into a fund that then will be used to fund relief grants for small businesses to help them with PPE (personal protective equipment) and restructuring costs to open safely.

“That breadth of vision was extremely attractive and the unity of purpose that it represents because these are large businesses that understand that small businesses are at the heart of our economy. They’re key to the supply chain. They’re key to our Main Streets and the vibrancy of our towns and cities. So for them willing to say ‘look Canada we’ve got to show local some love’ is a pretty powerful message.”

Rossi said the businesses continue to face a very rough time and thousands of businesses have already been lost due to the economic crisis.

“We will end up losing more as we go because going into the crisis the average small medium size business had 20 to 30 days of cash on hand. We’re into four months. So they’ve blown past what they had and yet the bills keep coming. They’ve maxed out their credit cards. They’ve borrowed from friends and family. They’ve taken out what loans they can. They’ve tried to take advantage of whatever programs, and there have been many programs that the government has introduced,” said Rossi.

“But even with all of that, we’re going to lose more businesses.”

Mike Dobbins, Chief Strategy and Corporate Development Officer at RBC, said the bank has been working with small businesses throughout the crisis.

“In order for them to fully recover you need to have a massive economic stimulus. That kind of led us to what role can we play and ultimately what we concluded was we really needed to create unity of purpose. We need to band together and create something large enough but in one voice. Send the right message to Canadian consumers to support their Main Streets,” said Dobbins, adding that the media campaign is intended for any business to plug into.

“If you’re a small business, you have the benefit of a massive advertising campaign that obviously small businesses can’t run.”

The intent is that in one voice with unity of purpose to create a movement.

“We want customers to come out and take micro actions,” said Dobbins.

CANADIAN RETAIL GIANT ROOTS HAS JOINED THE MOVEMENT

Retail giant Roots announced it was joining Canada United.

“Roots was started in 1973 by two friends who opened a small footwear store in Toronto,” said Meghan Roach, Chief Executive Officer of Roots. “Without the support of Canadians, we would not have grown into the brand and business we are today. We have partnered with RBC and joined Canada United to encourage all those living in Canada to support their local small businesses during this challenging period. Our support is needed today so these incredible businesses can thrive well into the future.”

Darryl Julott, Senior Manager at Digital Main Street, which is a supporting partner in Canada United, said one-third of small businesses are at risk of closing their doors due to the crisis created by the COVID-19 pandemic.

“I think a movement like this is at the right time,” said Julott.

“What’s really interesting about this campaign now, and the way it’s positioned around Canada United, is we are seeing this conscious shift within consumer behaviour. It’s not just a fad. We’re at a time right now where the consumer is justifiably changing their habits. Having something like this, bringing together some of the largest organizations in the world and some of the associations that represent this industry in Canada and some of the niche groups like Digital Main Street, I think you’ve got a very unique opportunity.

Digital Main Street is a non-profit organization that supports the growth of small businesses through the adoption of digital tools and technology.

Small business owners who are interested in the program can visit GoCanadaUnited.ca to learn more about grant application details, including eligibility criteria, and to apply.

Brief: Jaeger-LeCoultre Opens 1st Corporate Store in Canada, Bayview Village Innovates Virtually

By
Retail Insider
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JAEGER-LECOULTRE CORPORATE STORE IN TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO CREDIT: “JM”

Jaeger-LeCoultre Opens 1st Corporate Store in Canada

JAEGER-LECOULTRE CORPORATE STORE IN TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO CREDIT: “JM”

Swiss luxury watch brand Jaeger-LeCoultre opened its first standalone corporate store last week at Toronto’s Yorkdale Shopping Centre. The boutique, located amongst other luxury brands including TAG Heuer, Hublot, Van Cleef & Arpels, Montblanc, and others.

The 495-square-foot boutique replaces a franchised Jaeger-LeCoultre boutique that was located nearby and was operated by multi-brand Raffi Jewellers. The Raffi-operated boutique opened in 2015. In Vancouver, a licensed Jaeger-LeCoultre boutique also opened in 2015 on Alberni Street which features a similar mix of luxury brands as Yorkdale.

The stunning new Toronto Jaeger-LeCoultre boutique features the brand’s most updated retail design, including a bold facade as per the photo above.

Yorkdale Shopping Centre recently received the prestigious TOBY Award for excellence in commercial real estate in the Retail category at the International Building Owners and Managers Association (BOMA) Awards. The Outstanding Building of the Year (TOBY®) Awards is the most prestigious and comprehensive program of its kind in the commercial real estate industry recognizing quality in commercial real estate buildings and rewarding excellence in building management. Competing against shopping centres around the world, Yorkdale was recognized for its building standards, community impact, tenant relations, energy conservation and sustainability. The centre was also Canada’s most productive last year in terms of sales per square foot

Lao Feng Xiang Opens 2nd Canadian Boutique

FACADE OF LAO FENG XIANG AT CF RICHMOND CENTRE. PHOTO: RITCHIE PO

Shanghai-based luxury jewellery retailer Lao Feng Xiang has opened its second Canadian storefront at CF Richmond Centre south of Vancouver. The first boutique opened in October of 2015 at 2016 Alberni Street in downtown Vancouver.

INTERIOR OF LAO FENG XIANG AT CF RICHMOND CENTRE. PHOTO: MARTIN MORIARTY

Lao Feng Xiang is China’s oldest jewellery brand, as well as the world’s 16th-largest luxury goods company. Founded in 1848, the brand boasts a network of 2,800 retail stores in China as well as a handful internationally including a flagship in New York City. Lao Feng Xiang is particularly known for its 24-karat gold and jade creations.

The beautiful store features a prominent facade and opulent interior, as well as a range of product with some prices well into the thousands of dollars. CBRE Vancouver negotiated the lease deal on behalf of the retailer under the direction of Mario Negris and Martin Moriarty.

Bayview Village Launches Virtual Food Marketplace

FACADE OF BAYVIEW VILLAGE SHOPPING CENTRE. PHOTO: BAYVIEW VILLAGE

Toronto’s Bayview Village, considered to be one of Canada’s most prestigious shopping centres, has announced the launch of GASTRONOMER, a virtual marketplace and food concierge service that allows customers to shop a curated product assortment assembled from Bayview Village’s food and beverage tenants.

 

 
 
 
 
 
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Foodie friends—it’s finally here! #Gastronomer, BV’s virtual marketplace and food concierge, is officially open for delish business. Visit bayviewvillageshops.com/gastronomer (or, click the link in bio) to be the first to place an order.⁠ ⁠ Here’s how it works:⁠ ⁠ – Peruse our drool-worthy offering.⁠ – Choose your yummy adventure.⁠ – Pay.⁠ – Select your preferred pick-up time.⁠ – Drive up to one of our curbside stalls.⁠ – Our Concierge will deliver your order.⁠ ⁠ Plus, every order comes with a complimentary set of haute BV coasters, while supplies last.⁠ ⁠ Bon appétit!⁠ .⁠ .⁠ .⁠ #thehautelife #bayviewvillage #bvshops #toronto #torontolife #torontorestaurants #torontoeats #blogto #dineto #dailyhiveto #narcitytoronto #dailyhive #instagood #the6ix #yyz #torontofood #tastetoronto #torontofoodie #tofoodies #torontolifestyle #northyork #delish #gourmetfood #tastethesix #foodlover #gtafood #eeeeeats #countdown⁠

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The initiative launched on July 20 on the Bayview Village website. The one-stop online shop gives customers the opportunity to purchase gourmet items including prepared dishes, DIY meal kits, and gift baskets from select tenants, with items ranging in price from $6–$270. Customers can place their orders at least 24 hours in advance and select a preferred pick-up time to for contactless curbside pick-up.

“Highlighting the best of the best of Bayview Village’s culinary options, this is a service for–as the name suggests–lovers of gourmet food,” says Melissa Evans-Lee, VP of Retail, National Marketing at QuadReal Property Group. “In addition to providing convenient gourmet options for our customers, this is meant to directly help our food and beverage tenants during a very challenging time.”

Among the gourmet options to go are BBQ Grilling Kit from Pusateri’s Fine Foods, Mezza Cottage Kit from Tabulè Middle Eastern Cuisine, Pizza and Plant-Based Meal Kits from Il Fornello, Cleanse Kits from ELXR Juice Lab, Butter Chicken Meal Kit from Goa Indian Farm Kitchen, and Burmese Chicken Curry Meal Kit from Pōpa. With every order, customers will receive a complimentary set of four “haute” BV coasters, while supplies last.

Follow @bvshops for the latest updates regarding GASTRONOMER and other exciting initiatives in 2020

RioCan Lunchbox Challenge

CONSTRUCTION WORKERS ENJOYING ‘THE LUNCHBOX CHALLENGE’ PROGRAM. PHOTO: RIOCAN

RioCan Real Estate Investment Trust teamed up with its development and construction partners to participate in ‘The Lunchbox Challenge’, delivering more than 1,200 lunches to construction workers at nine development sites across Canada this month. The challenge, which began in BC and has since spread across the country, asks owners and construction companies to buy lunch for their workers on site to encourage and recognize their hard work. The meals are purchased from local restaurants and tenants who may be struggling due to COVID-19.

‘THE LUNCHBOX CHALLENGE’ IN PROGRESS. PHOTO: RIOCAN

“We were inspired by the challenge and teamed up with our development and construction partners to maximize our impact,” says Andrew Duncan, Senior Vice President, Development, RioCan. “RioCan and our partners work with many construction companies on development projects. The challenge was a great way to express our appreciation to hundreds of dedicated workers across the country while also supporting our restaurant tenants who have been affected by the pandemic.”

Participating construction sites included The Well in Toronto, Frontier in Ottawa, and the East Hills Shopping Centre in Calgary. In total, RioCan and their partners were able to support 13 restaurants with the initiative. The initiative is ongoing.

Pusateri’s Fine Foods Delivers to Muskoka

EXTERIOR OF PUSATERI’S FINE FOODS AT BAYVIEW VILLAGE. PHOTO: PUSATERI’S

Toronto-based Pusateri’s Fine Foods has launched a grocery delivery service in Muskoka to accommodate Canadians opting for staycations this summer. As many are enjoying domestic trips due to COVID-19 restrictions, Muskoka is set to see many new visitors this year and Pusateri’s is hoping to reduce the need for people to visit grocery stores. The service will deliver one to two times a week to the Ontario region, with a grocery delivery service for a central drop-off/pick-up spot at Don’s Bakery in Bala. Delivery options will be for Thursdays with a pick-up window between 12PM and 1PM and are free for orders over $250 (otherwise it’s $39.99).

 

 
 
 
 
 
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If you’re taking a break from cooking but don’t want unhealthy take-out visit our counters for a variety of hot prepared items ready for lunch or dinner.

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For more information or to place an online grocery order go to pusateries.com and select Muskoka for delivery at the checkout. Pusateri’s also recommends checking out their family meal options for cottagers here.

McEwan Fine Foods Launches PEI Meal Kits

FACADE OF MCEWAN FINE FOODS. PHOTO: MCEWAN FINE FOODS

Toronto-based McEwan Fine Foods, in collaboration with Canada’s Food Island in Prince Edward Island, have launched meal kits featuring an array of PEI’s exceptional culinary products.

The premium meal kits are a ‘Prince Edward Island Patio Party’ in a box and include PEI’s five core products lobsters, mussels, oysters, beef, and potato, as well as chef-inspired recipes created by the McEwan Fine Foods culinary team.

“Every year Prince Edward Island puts on a month-long festival showcasing all of the wonderful products that the island has to offer. This year due to the pandemic, McEwan Fine Foods is bringing a taste of the island to Toronto with our Prince Edward Island Patio Party boxes. PEI produces some of the best, sustainable lobster in the world and incredible grass-fed beef with full traceability. Our chefs have created unique Surf & Turf packages with all the trimmings so our guests can bring delicious PEI flavours home for easy summer meals,” says Jessica Rodrigues, Director of Communications for The McEwan Group.

 

 
 
 
 
 
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Posted @withregram • @mcewanfoods McEwan Foods has partnered with Canada’s Food Island in Prince Edward Island so you can bring a taste of PEI home with our Prince Edward Island Patio Party Boxes. McEwan’s chefs have created 3 unique meal kits: a Surf Box, a Turf Box and a Surf & Turf Box so you can indulge in culinary creations from the coast in the comfort of your home. . Order online at: www.mcewancatering.com Call 416 444 6262 ext. 228 or email: orders@mcewancatering.com and allow 48 hours. #fallflavourspei #DiscoverPEI #WeLovePEI #CanadasFoodIsland #food #foodie #BBQ #foodstagram #instafood #foodlover #foodies #delicious #foodstories #Canada #exploreCanada #canadian #patioparty

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The Prince Edward Island Patio Party have three options to choose from, a Surf Box, a Turf Box, and a Surf & Turf Box with recipes like a chilled lobster Cobb salad, PEI grass-fed strip loin steaks with truffle compound butter, PEI oysters with McEwan’s cocktail sauce & mignonette, and PEI mussels with a choice of lemon, white wine & bacon sauce or tomato, fennel, chili and preserved lemon sauce. The curated boxes mean Ontarians can now enjoy a PEI patio party from the comfort of their own homes.

“Canada’s Food Island, Prince Edward Island is famous for its genuine people that work together to harvest and innovate premium food products and host experiences from land and sea. We look forward to celebrating our Island flavours with our Ontario friends/family by creating a unique Canada’s Food Island experience for you to enjoy in the comfort of your own home.” said Mitch Cobb, Chair of Food Island Partnership.

The collaboration between McEwan Fine Foods and Canada’s Food Island started after travel restrictions inhibited Ontario residents from being able to travel to PEI due to COVID-19. The two organizations have an established working relationship as the McEwan Groups’ Chef Mark McEwan has hosted many events during two of PEI’s flagship festivals, The PEI Fall Flavours Festival and the PEI International Shellfish Festival.

The bespoke boxes are available for purchase for Ontario residents only. To purchase, visit: mcewancatering.com or in-store at McEwan Don Mills or McEwan Yonge & Bloor McEwan. To ensure there are fresh products in every box, McEwan Fine Foods requires 48 hours to prepare, so customers are asked to consider this when ordering.

Planet Fitness Implements Masks

EXTERIOR OF PLANET FITNESS LOCATION. PHOTO: PLANET FITNESS

One of North America’s largest and fastest-growing franchisors and operators of fitness centres, Planet Fitness, has announced that members and guests will be required to wear a mask at all times while inside all open stores, beginning August 1.

In Canada, Planet Fitness locations have reopened in British Columbia, Alberta, Saskatchewan, and in some regions of Ontario that are in phase 3 of reopening since the COVID-19 pandemic. Currently, all Planet Fitness employees are required to wear masks. 

“As we continue to face the COVID-19 pandemic, amid an ongoing global health crisis, wellness has never been as essential to our collective community as it is today,” said Chris Rondeau, Chief Executive Officer at Planet Fitness. “Gyms are part of the solution and a key element of the healthcare delivery system, providing much needed access for people to exercise and stay healthy. Given our leadership position within the industry, we believe it’s our responsibility to further protect our members, employees, and communities so that we can all safely focus on our health, which is more important now than ever before.”

The gym and fitness centre has already taken several additional steps to strengthen its existing cleanliness policies and procedures to help keep members, guests, and employees safe. These include enhanced cleanliness and sanitization policies and procedures, extensive training for employees, physical distancing measures in its spacious and well-ventilated stores, and reducing physical touch points with touchless check-in. Earlier this month, the Company also launched a Crowd Meter feature on its free mobile app to allow members to check club capacity before coming into the gym.

A Post-COVID Wishlist for Commercial Real Estate

By
Retail Insider
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COMMERCIAL REAL ESTATE IN DOWNTOWN VANCOUVER. PHOTO: VANCOUVER COURIER

By Avi Behar and Matthew B. Winn

As our economies open back up and we begin to emerge from our government and self-imposed isolation, we are often asked about our predictions for the “new normal” in commercial real estate. Our standard response is that it is too soon to know.

Almost every industry and all of commercial real estate has been affected by COVID 19. These shock waves will be experienced for many years to come and will influence our industry as a whole. There are degrees of reinvention that will need to occur as we return to some routine in life, at work, and at play.

So, while we can’t predict exactly what will happen, below are some of the things we hope will happen as we define our new world.

WE ARE ALL IN THIS TOGETHER

Retail and retail real estate are two areas which must completely reinvent themselves in order to thrive in the new world. How we learn, adapt, pivot, and work together as partners will determine how quickly we turn the corner. Right now, everyone has each other’s backs, but like many moments of shared human experience, that can quickly be a fleeting sentiment after the crisis has “passed”.

With creativity, innovation, and strong human resolve, we can establish a new set of social norms and rules which will enable our society to emerge stronger than ever. Landlords and tenants have talked about partnerships.

In the past, that often referred to the Landlord who felt that making a large tenant improvement contribution should be looked at as a type of partnership with a tenant. In a post-COVID world, we hope to see new lease structures emerge, based on true occupancy costs, shared profits and shared equity in retail and real estate. This alignment of interests might seem hopeful in a world of securitized loans and private equity returns, but perhaps it is a path to long term prosperity for all.

A NEW RESPECT FOR SPACE, CLEANLINESS AND PERSONAL SAFETY

In Japan, where over 126 million people live in a relatively small area, there is a sense of serenity rather than chaos in daily life. Along with highly efficient technological advancements, the Japanese have established a system of social order which is largely rooted in respect for others and their ‘space’.

The famed Japanese ‘bow’ of the head very much speaks to the concept of respecting others. It is also a no touch way of greeting people. Their respect for cleanliness and the things that will happen after they occupy a space are some of the foundational elements of Japanese society.

These may also guide us and help define our meeting protocols for the near future as we return to the office. If we are able to adapt the way that people treat one another and their environment in Japan, and begin to implement that in our day to day lives, there is little doubt that our new normal will become more orderly and pleasant.

IT’S THE LITTLE THINGS

Speaking of cultural norms, wouldn’t it be great if the change from mass production to local, organic (meaning spontaneous not certified pesticide free), and craft business continued? It started with “The Sesame Street effect” where a new generation began to see our urban core as safe again.

Since then, we have seen an explosion of new businesses — boutique clothiers, local restaurant groups, and new services — flourish in our cities. The explosion and diversity of businesses is akin to the transition from local television to cable where specialty channels found underserved audiences who wanted to be part of a new “tribe”.

The era of the 1,000-store chain in the same mall format in the US may be over. Wall Street has officially changed its tune and is now rewarding individual unit profitability over global market share. We have chosen to vote with our wallets for local and interesting over consistent.

RESPECT THE PROCESS

Speaking of the little things, another trend that we hope to see accelerate in the post-COVID world is the respect for the craftspeople that create our products. More and more we are seeing a focus on the source, supply chain and process around our goods.

So often now we see the farm where the food was grown as part of the menu. We have transitioned from the food court to the food hall. We are focusing not only on how the food tastes but on our health and overall lifestyle.

Perhaps more than we’ve seen in our lifetimes, consumers will be driven to work, shop, and play locally. These patterns have already started. Support for one’s community will emerge as a key motivating factor as social activity begins to ramp up. We want to know not just the people that are selling us our goods, but the farmer or garment worker that made them. We want to be part of the brand story and members of these new tribes of commercial cool.

“IT’S THE CUSTOMER, STUPID…”

To paraphrase Bill Clinton’s campaign message, “It’s the customer, stupid”. We need to change our focus. There is little doubt that the population has now fully embraced online retailing for anything that is purely transactional, and that web-based purchasing is here to stay.

More than ever before, bricks and mortar retail stores must establish an omnichannel presence, with a very strong and efficient online portal and overall experience.

Additionally, retailers will need to develop a strong understanding of what makes consumers comfortable, and how to make their shopping journey as safe and easy as possible to get them to come back to the store. They must deliver a safe, smooth, and engaging customer experience.

DON’T FORGET THE LITTLE GUY

Speaking of going back to the store, don’t forget EVERYONE who makes your store experience possible. In addition to our waitstaff, our sales associates, cashiers, and the public faces of our retailers, let’s try to remember and reward the cooks, the people who stock the shelves, the cleaning crew and the rest of the unseen army that makes our store experience not only possible but enjoyable.

Their hard work is often invisible to us, but it is as important as the supply chain in keeping our bricks and mortar retail up and running. Only good things will come from a greater display of gratitude and appreciation.

FLEXIBLE HOURS AND SPACES

Let’s face it, it is a 24/7/365 world. One of the advantages often cited by the doom merchants peddling grim pictures of physical retail’s future like the ghost of Christmas future in A Christmas Carol, is that you can always get things on your phone.

True. But, you can’t always get them delivered. So, what if rather than requiring retailers to be open at the same time, we allowed retailers to use the space when they need it and to operate flexible hours with no minimums. Wonder how many new hybrid, fusion uses will be created?

GETTING PEOPLE TOGETHER

Speaking of new uses and ways to utilize space, do you know what makes a place cool? Not sure we do either, but we know it when we see it, hang out in it, dine in it, and shop in it.

Yes, great store design will be important to retail revival, but so will the way those stores are aggregated. Great destinations like Jamestown’s Ponce City Market or Toronto’s Yorkdale Shopping Centre are as much about the variety of the merchandise as they are about the environment that brings us together.

A food hall would feel like a food court (with really good food) if it weren’t for the public realm that surrounds it. These pocket parks, niches of activity, great seats, and other synergies are amenities that transform bricks and mortar from transactional to experiential.

MIX OF USES VERSUS MIXED USE?

Speaking of places that bring us together, going forward, we will continue to see mixed-use development as a focus in the urban real estate world to address the changes in customer acquisition strategy with a change in real estate format.

For the past two decades, mixed-use developments have been established as focal points for urban markets across North America. Combining asset classes has led to better communities where people can live, work and play within the same neighbourhoods.

In its simplest form, mixed-use development entails the amalgamation of more than one use — retail, office, residential, hotel, educational, medical, or others. As we emerge from months of self-isolation, with many businesses unable to survive the closures, we must look ahead and focus on how to thrive in this next phase of history. The retail square footage is likely to be less a part of the economic value and more a part of the brand identity of these spaces going forward. If people are shopping on a hyper-local basis, then retail will be the reason that apartments or offices rent to the right tenants at a premium rate.

DENSITY OR DYNAMITE

The way these new developments connect to the rest of the urban infrastructure is important. There is clearly a greater need for urban innovation. Forward-thinking ways of handling public transit, transportation, architecture and design will be critical, along with the establishment of responsible guidelines for all public gatherings.

We are believers that there will be sites that will be winners when additional density is developed, and that dynamite will repurpose the rest. However, it is the human factor that will ultimately determine how we all move ahead from this pandemic and prepare for the next one.

SO WHAT DOES IT ALL MEAN?

We wish we could come up with a 50-word, 3-step summary and wrap it with a bow. If we could, we would likely be sitting on our private island instead of writing this article. What we do know, however, is that things will change. So, when we say “re-open the economy”, we are really suggesting a re-imagining of the economy.

Now is our opportunity to do things differently and to create new best practices which, as a society, could make the “new normal” a better one for us as businesspeople, consumers and citizens.

Avi Behar

Avi Behar is Chairman and CEO of The Behar Group of Companies. Since 1995, he has been actively involved in commercial, industrial, and investment transactions. Amongst other areas of focus, The Behar Group is one of the most active brokerages in Canada in retail, hospitality, and the food & beverage space.

Matthew B. Winn

Matthew B. Winn is the Chief Development Officer for the What If…Syndicate, a portfolio of growing restaurants in Chicago that includes the 12th highest grossing restaurant in the US (Maple & Ash). In addition, he is a strategic advisor for a new off-site meeting concept called Meet In Place, and is working on a variety of projects in the real estate development and operating sector as a mixed use development asset management consultant. He was formerly the Global Retail COO of Cushman & Wakefield.

Generating Increased Traffic, More in-Store Sales, and a Deeper Understanding of the Customer

By
Sean Tarry
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As people and communities all over the world slowly and collectively pull themselves from the clutches of the pandemic that has gripped the planet over recent months, there are now signs that a return to normal, or at least a new normal, is on the horizon. Soon, these communities will open up again. Groups, gatherings and events will recommence in full swing. And retailers everywhere will welcome customers looking to once again shop unhindered at their favourite stores. But when they do, they’ll be faced with the challenge of incenting traffic to the stores, converting a greater percentage of sales per visit and cultivating a deeper understanding of the customer’s purchase decisions in order to succeed and continue growing in the face of mounting online competition.

These are retail challenges recognized by Jim Bark and Stefan Rettig, founders and developers of KYSSMET – a game-based mobile app that’s been designed to help provide solutions to modern retail challenges.

“Small and mid-sized retailers are under significant pressure from their ecommerce competitors,” says Jim. “They have been losing a lot of their business to online players in the market, and many are finding it difficult to compete.”

According to eMarketer, retail ecommerce in Canada accounted for just over $64 billion in 2019, up 21.1% from 2018, representing fully 10% of all retail sales in the country. It’s a trend that’s helping to bolster the industry as a whole. But it’s also one that is presenting massive challenges to brick and mortar retailers who need to attract visitors to their stores to stand a fighting chance. And that challenge has only been exacerbated by the recent circumstances surrounding COVID-19 and the associated precautionary health measures which have largely prohibited in-store visits.

THIS IS WHERE KYSSMET COMES IN

In the months ahead, the KYSSMET app could serve as a crucial piece to the retail puzzle in helping to generate foot traffic to stores. Easy for consumers to download and play, it provides them with the chance to win personalized discounts on retail items. And because the game can only be played in-store after scanning an item, it is a fun and exciting catalyst to push consumers to visit brick and mortar stores. By getting consumers offline and in the physical retail space, retailers have a fighting chance to claw back some of the share that’s been lost to online competitors.

As the use of mobile devices has become ubiquitous within Canadian society (the Consumer Technology Association reports an astounding 86% of Canadians own and use a smartphone daily), the idea to leverage mobile technology as the vehicle to provide these solutions was an obvious one.

“There’s a lot of great technology already in the stores,” says Stefan. “But consumers are holding the most powerful technology in their hands all the time. We decided to take advantage of that to engage the customer with the retailer in a meaningful way and provide the retailer with an opportunity to convert a sale.”

Another benefit to engaging the customer while they shop with a mobile app is the fact that it presents a compelling dissuasion from showrooming. According to Canada’s Internet Factbook, a report published by the Canadian Internet Registration Authority in 2018, 55% of Canadian consumers regularly visit physical retail stores to touch, test and feel products before purchasing from an online competitor. Because the discounts won by interacting with the product on the KYSSMET app cannot be redeemed anywhere else but that physical location, the incentive to make the purchase right then and there becomes a powerful one.

KNOWLEDGE IS POWER

Beyond the ability to generate foot traffic, prevent showrooming, and convert sales, however, the real game-changer is the customer insights that the KYSSMET app captures. By leveraging the technology to engage consumers, data is generated with each item scanned, each game played, and each discount redeemed, providing the retailer with critical information concerning the customer’s browsing and purchasing behaviour – a goldmine for small to mid-sized retailers.

“Without knowledge about each individual customer, the retailer is competing with one arm tied behind their back,” says Jim. “Ecommerce businesses know everything about the customer from the moment they log on to their computer or device. The KYSSMET app will help address this data imbalance for brick and mortar retailers. They’ll now have a much better understanding of what it is that the customer is looking for when they’re in their store and what kind of incentive is enough to tip them over the line, closing the gap in that last mile of purchase conversion.”

As Stefan points out, the app accomplishes this by offering that ‘little bit more’ clarity into the consumer’s path to purchase. Something most other retail data technologies currently being used are unable to do.

“Most of the tools in stores right now do a decent job of monitoring and tracking traffic, allowing the retailer to know which part of the store customers are visiting and spending time at most,” he says. “But because KYSSMET has put the technology in the hands of the consumer, the retailer can now transform from being an outside, reactive observer to being the inside driver, leveraging a deeper understanding and knowledge of the customer they are serving.”

In this new retail era when knowledge is more powerful than ever before and the need to evolve the shopping experience is paramount, retailers must position themselves with the digital tools to help them meet some of their toughest challenges. Given its simplicity and range of benefits to the user, the KYSSMET app may be just what brick and mortar retailers need in order to compete and succeed against their online competitors.

HOW KYSSMET APP WORKS

  1. Pick & Scan: Consumers scan products in participating stores and discover items that are eligible for a discount.
  2. Play & Win: Consumers then play a simple game in the app for a chance to win a discount with every store visit.
  3. Buy & Share: Consumers buy the items they want with the discounts they’ve won and can share their discounts with their friends.

LEVELLING THE PLAYING FIELD

For retailers interested in integrating the KYSSMET app into their store operations, Jim and Stefan have made it easy. The onboarding process is simple and painless. And because the technology behind the KYSSMET app plugs into the backend of Shopify – the platform KYSSMET currently leverages – there is no need for costly investment in hardware tech infrastructure.

“The KYSSMET app and all of the benefits that come with it can really help level the playing field for smaller, independent Main Street retailers,” says Jim. “It’s one of the reasons we developed the app. In addition to helping them compete against ecommerce players, we want to equip them with the tech and data they need to compete against larger retailers. We understand that independent retailers are challenged with respect to investing in traditional retail tech, putting them at a disadvantage against their larger competitors. KYSSMET is a software-based solution, so there are no significant upfront hardware installation costs, making it cost-effective for independent retailers. And, because retailers only pay fees to KYSSMET when sales are generated by the app, a win-win scenario is created, aligning the focus and objectives of KYSSMET with the retailer.”

To learn more about the KYSSMET app and how it can help your business increase traffic to your store, grow sales and develop a deeper understanding of your customers’ purchase decision-making, visit kyssmet.com, or contact inquiry@kyssmet.com

*The KYSSMET app/platform currently leverages Shopify, with plans to soon integrate with other major ecommerce platforms.

All Ann Taylor, LOFT and Justice Stores Closing in Canada as US Parent Ascena Files

By
Craig Patterson
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OPENING OF THE CF TORONTO EATON CENTRE ANN TAYLOR STORE ON OCTOBER 5, 2012. PHOTO: TORONTOISFASHION.COM

Ascena Group Inc. filed for Chapter 11 bankruptcy in the United States as per an announcement Thursday which includes shuttering all of its stores in Canada. That includes four Ann Taylor stores, nine LOFT stores, and almost 40 Justice stores.

ASCENA PLANS TO EXIT THE CANADIAN MARKET AMID RESTRUCTURING

A statement by Ascena said, “As part of the balance sheet restructuring contemplated by the RSA, the Company will optimize its brand portfolio and strategically reduce its footprint with the closing of a significant number of Justice stores and a select number of Ann Taylor, LOFT, Lane Bryant, and Lou & Grey stores. This includes the exit of all stores across brands in Canada, Puerto Rico, and Mexico and the closure of all Catherines stores.”

In 2015, Ascena acquired Ann Taylor and LOFT which had already expanded into the Canadian market. In 2012, Ann Taylor opened its first Canadian store at CF Toronto Eaton Centre which was followed in November of 2012 with a unit at Toronto’s Yorkdale Shopping Centre. Ann Taylor subsequently opened stores at CF Sherway Gardens as well as at Square One in Mississauga. The Yorkdale store was said to have been one of the company’s top performing units and is located in the mall’s 2012 expansion wing which is now home to several notable luxury brands as well as an expanded Holt Renfrew store.

LOFT, which opened its first store in Canada at Toronto’s Yorkdale Shopping Centre in November of 2012, operates eight other units in Canada including at CF Toronto Eaton Centre in Toronto, Square One in Mississauga, CF Markville near Toronto, CF Lime Ridge in Hamilton, Metropolis at Metrotown near Vancouver, Guildford Town Centre near Vancouver, Park Royal in West Vancouver, and at West Edmonton Mall in Edmonton. LOFT is a more casual and younger brand compared to the classic styles found at Ann Taylor stores.

LOFT STORE AT WEST EDMONTON MALL. PHOTO VIA YELP

Both Ann Taylor and LOFT operate mall-based stores in some of Canada’s top centres. Stores are generally in the 4,000-6,000 square foot range.

Justice, which has 38 stores, are located more in suburban retail centres such as strip malls, big-box centres, and outlet malls. That includes 24 stores in Ontario, seven in Alberta, two in British Columbia, two in New Brunswick, and one in each of the provinces including Manitoba, Saskatchewan, and Nova Scotia. Boy’s fashion brand ‘Brothers’ shut all Canadian stores several years ago.

ASCENA WAS STRUGGLING PRIOR TO COVID-19

Ascena, which was already struggling financially, was hit hard by COVID-19 store closures. The company entered into a restructuring agreement with over 68% of its secured terms lenders and prior to the outbreak, the company liquidated its Dressbarn stores and sold its Maurices chain.

JUSTICE STORE AT EMERALD HILLS IN SHERWOOD PARK, ALBERTA. PHOTO: CANADA247.INFO

One landlord for LOFT in Canada said in an interview that vacated spaces would be easier to fill in prime malls, though a wave of store closures means that there will still be vacancies in its shopping centres.

Over the summer of 2020, more than 1,500 individual store locations in Canada will close permanently, likely an all-time record. More closures are expected into the fall as well as into early 2021 as retailers grapple with finances. Some bankruptcy filings won’t lead to many or any store closures — last week Quebec-based Tristan filed for bankruptcy protection and says that it will remain operational while keeping stores open.

Landlords in Canada will have to deal with considerable vacancies in the months to come as chains downsize and shutter. We recently reported in Retail Insider about a wave of store closures that is hitting Canada this year as retailers struggle after non-essential stores closed as mandated by governments due to the COVID-19 pandemic.

Retail Fraud Continues to Increase in Canada Amid Pandemic: Executive Study

By
Mario Toneguzzi
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A survey of risk and fraud executives at ecommerce and retail companies in Canada and the United States reveals that fraud continues to increase and most acutely affects mid to large-sized merchants.

The survey by LexisNexis Risk Solutions, a data science company based in Alpharetta, Georgia, is the 11th edition and for the first time has included Canada.

MID TO LARGE-SIZED BUSINESSES ARE THE MOST AFFECTED BY RETAIL FRAUD

The 2020 True Cost of Fraud – E-commerce and Retail study said the result of increased fraud volumes translates into a 7.3 percent increase in the cost of fraud year-over-year and the LexisNexis Fraud Multiplier shows that every $1 lost to fraud now costs companies an additional $3.36 compared to $3.13 in 2019 and $2.40 in 2016. This is an increase of $0.96 over five years. U.S. costs are significantly higher than the cost that Canadian retailers face per $1 lost to fraud at $2.87.

“Retailers and ecommerce merchants should be prepared for increased fraud attacks and costs for the foreseeable future,” said Kimberly Sutherland, Vice President, Fraud & Identity Management Strategy, LexisNexis Risk Solutions. “It is unclear how the COVID-19 pandemic will shape the purchasing landscape over the next few years, although we do know that fraudsters will continue to shift tactics quickly in response. The most effective way for businesses to fight fraud and protect their consumers is by performing a more complete assessment, combining physical and digital identity data of those making purchases.

“High fraud costs impact ecommerce merchants and retailers as sophisticated threats increase. A multi-layered strategy can protect retailers and ecommerce merchants throughout each buyer experience. Every transaction channel and type carry unique risks. Using different solutions to support fraud detection at various points in the consumer journey will strengthen overall defence.”

Chris Schnieper, Director, Fraud & Identity, LexisNexis Risk Solutions, said that over time what has been highly consistent is this notion of fraud certainly increasing.

“When we look at organizations that use a risk-based, multi-layered approach that can help reduce what we call the fraud multiplier — that total cost of fraud. It can help reduce that relative to their cohort peers in the study that do not utilize those same types of (approaches),” he said.

Schnieper said what is extremely interesting right now because of the COVID-19 pandemic is that over the last number of years there’s been a definite increase in a digital-first type of strategy in a number of industries such as retail and financial services. It drives a high level of convenience for consumers.

“COVID really drove that model to accelerate,” he said.

“The more people you have online the more fraudsters are going to try and take advantage of that.”

Kate Davis Green, Director, Fraud & Identity, LexisNexis Risk Solutions, said the fraud multiplier cost includes, in addition to the dollar amount lost, things like fees, interest, merchandise replacement and shipping, and redistribution.

“We highly recommend that organizations take a multi-layered approach to combating fraud,” she said.

“We’re talking about layering different types of fraud solutions in a workflow so that these different solutions can kind of benefit from one another and capitalize on the strengths of these solutions to make sure that we’re fighting fraud and fraudsters in the right way but also using risk appropriate friction to ensure that those trusted consumers pass through seamlessly.”

Key Findings and Trends from the study include:

  • Successful Fraud Attacks Increase: The average volume of monthly fraud attacks increased nine percent for U.S. retailers year-over-year while the average number of successful monthly fraud attempts increased 43 percent — 48 percent for mid to large retailers and 27 percent for smaller retailers. Attack volumes were already trending upward prior to the shutdown as mobile and online channels traditionally have higher fraud rates. Some of this growth is due to increased transaction volume due to the temporary closing of brick-and-mortar retailers during the pandemic;

  • Shutdown Spurs Increase in Fraud Costs: A comparative analysis of those surveyed showed that average monthly fraud attack volumes were significantly higher for specific retail segments who responded to the survey during the shutdown. Mid to large general merchandise retailers selling physical and digital goods had on average 70 percent more fraud attempts per month than those surveyed prior to the shutdown in March 2020. Businesses that continued operations during the pandemic who had higher mobile purchase transactions with in-store pick up experienced more fraud volume and coinciding higher fraud costs since these retailers had to rely on store employees for identity authentication rather than solutions designed to detect mobile fraud; and

  • Retailers Struggle to Keep Pace with Fraudsters: Retailers are finding it difficult to distinguish legitimate customers from malicious bots while balancing fraud prevention with risk-appropriate customer friction. This becomes even more complicated when purchases involve third-party, non-bank payment providers where transaction speed and volume are high and transparency into complex payment chains and end-customer profiles is low. Mid to large retailers selling digital goods are more challenged detecting and preventing fraud within these payment types. 58 percent of retailers selling digital goods say differentiating synthetic identities is a top verification challenge. Businesses new to mobile commerce contend with these issues more than businesses with more established fraud and risk mitigation solutions.

The Anatomy of Good Cannabis Retail Store Design

By
Retail Insider
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Interior of Choom store. Photo: Cutler
Interior of Choom store. Photo: Cutler

Since the Cannabis Act came into effect in Canada on October 17, 2018, pioneering brands have been opening unique new retail spaces across the country.

What started as a gold rush of brands racing to open retail locations to beat out the competition, has slowed to a game of strategy—as brands realize that it takes more than speed to stand out and stake a claim in this turbulent but exciting new industry. 

In a 2019 journal entry, Vancouver-based design firm Cutler explored three key challenges facing brands entering the Canadian cannabis retail market and how to overcome them. Fast forward a year, Cutler have more successful location openings in its portfolio, and a new set of insights. Below are Cutler’s key findings:

STAND OUT

As the first wave of retail cannabis settles, brands are finding themselves faced with a new challenge: how does one stand out in an industry filled with newcomers offering the same or similar products?

The solution? Showcase your brand and provide customers with a memorable retail experience.

SHOWCASE YOUR BRAND IDENTITY

Every brand has a unique story. If you want to stand out in the cannabis market, the design of your retail environment and merchandise must tell it. 

How do you achieve this? 

  • Have a clear brand presence throughout your store
  • Nail consistency

Cutler’s experience working with cannabis brands like Kiaro & Choom proves that a well-communicated brand can be the difference between a location’s success and failure. Interior elements such as signage, murals, feature walls, and millwork can all be used to reflect the meaning behind a brand; while inspiring customer interaction and establishing a divide between you and your competition.

Unique, consistent, and well-placed brand elements give customers something to connect with. If done well, that connection can be so impactful that it remains memorable long after they have left; building brand loyalty, and inciting repeat visits.

Interior of Kiaro store. Photo: Cutler
Interior of Kiaro store. Photo: Cutler

PROVIDE A QUALITY EXPERIENCE 

The need for meaningful connection is part of Cutler’s biology. A physical retail space presents a brand with an opportunity to facilitate that connection.

As the number of new retail cannabis locations swells, so does the competition. And more competition equals less market share. Providing customers with a good experience is the solution to this growing dilemma. Brands that provide customers with a good experience bring in 5.7 times more revenue than competitors that lag in the customer experience department. Customer experience can be defined by your customers’ perception of how you treat them. This perception affects their behaviour, drives feelings of connection and builds memories; which in turn drives their loyalty.

On a retail scale, a quality experience can be established in a number of ways. A few of which include:

  • Building in brand touchpoints that introduce and educate customers about your product lines; 
  • Having knowledgeable customer service staff who are focused on building relationships and creating a personalized experience;
  • And establishing a community around your brand by hosting special events that add value and showcase your expertise, while showing your appreciation for your customers.

Unfortunately, there isn’t one magic formula to creating a good customer experience. What works for some brands, may not for others. To know what will resonate with your customers, you need to get to know them. This means market research.

For Cutler, market research is a foundational component of its approach to retail space design. It ultimately helps influence the design not just of the retail environment, but the entire customer journey — from storefront to checkout. 

Once you know who your customers are, you can then design a personalized experience tailored to serve them.

With 73% of consumers saying that a good experience is key in influencing their brand loyalties, and loyal customers being five times more likely to purchase again (four times more likely to refer a friend to your brand), you can’t afford not to provide customers with a good experience in the retail cannabis industry.

PLAN FOR THE FUTURE 

As new technology and products are introduced, the Canadian cannabis industry will continue to evolve; and with that evolution will come a new set of challenges. To ensure that you’re ready for them, it is vital that your retail space is designed to be future-proofed. 

Building in moveable millwork components or interchangeable display systems are two great, budget-conscious ways that we like to future proof a space. Having the ability to rearrange your product displays gives you versatility; making it easy for you to pivot as customer needs change and the industry evolves. And with the total number of Canadian retail cannabis stores rising by 88% from March 2019 to July 2019 alone, you can bet that it will.

*Cutler recently partnered with Retail Insider as a sponsor for our Spacelist real estate page. Visit our real estate page to search for and upload commercial listings. For more information on Cutler and its design work, visit: www.cutlerdc.com

Canadian Retail Sales Become A Little Less Horrible in May

By
Ed Strapagiel
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Canadian retail sales are still plunging at record speed, according the latest numbers from Statistics Canada. In May 2020, total unadjusted retail sales declined 20.0% versus the same month a year ago. While that’s a horrible result, it’s actually an improvement over the phenomenal 31.3% year-over-year drop recorded in April. With more stores and shopping malls reopening, gradual improvement in the numbers is expected going forward, but it will take a while.

TOTAL RETAIL CHART

The above chart shows the plunge in the 3 month average (orange line) retail sales growth rate, the worst decline ever. For the 3 months ending May, retail sales fell 20.8% year-over-year. The underlying 12 month trend (green line) is now nose-diving in statistical sympathy.

 Not all retail sectors have been affected equally however.

 Food & Drug

The relatively staid Food & Drug sector is showing unprecedented retail sales increases, gaining 9.3% for the 3 months ending May versus a year ago. The underlying 12 month trend (green line in the chart) has been trending up since the start of the year.

FOOD & DRUG CHART

Supermarkets & other grocery stores seem to have cashed in the most from COVID-19, with retail sales up 18.1% year-over-year for the 3 months ending May. Convenience stores also did well, gaining 11.9%.

Retail sales at health and personal care stores however were down 4.8% for the 3 months ending May. Note that this category also includes cosmetics, beauty supplies and perfume stores, opticians, and other retailers which may have been required to close due to the pandemic.

Store Merchandise

Retail sales in the Store Merchandise sector continue to plunge, declining 19.4% for the 3 months ending May. The main factor here is store and shopping mall closures, which is now beginning to abate. There may be a modest surge in sales once everything is reopened as consumers catch up on some of the shopping they may have missed.

STORE MERCHANDISE CHART

General merchandise stores are doing relatively well, with retail sales actually up 2.3% for the 3 months ending May. As noted in last month’s report, this group includes combination stores like Costco and Walmart which are also major food retailers, as well as larger operators like Canadian Tire and Hudson’s Bay which may have more developed e-commerce capabilities and online presence to fall back on.

Clothing and clothing accessories stores however are being decimated, with retail sales down an incredible 69.2% for the 3 months ending May. Many of these non-essential businesses were forced to shut their doors due to the pandemic, and/or are located in shopping malls which were also closed.

Furniture & home furnishings stores have taken a major hit too. Their retail sales declined 43.8% for the 3 months ending May.

Note that Statistics Canada is now suppressing the breakdown of general merchandise stores for confidentiality reasons. The figures in the “By The Numbers” table below are estimates based on previous trends.

There is absolutely nothing good to say about the Automotive & Related sector. Retail sales were down 43.0% for the 3 months ending May versus a year ago, including a 48.9% drop at new car dealers and a 36.5% decline at gasoline stations.

AUTOMOTIVE & RELATIVE CHART

Auto dealers are now gradually reopening and are also using sales tactics like customer appointments and online viewing to stimulate business. Going forward, retail sales should gradually improve.

Gasoline station retail sales may need more time to recover. They face a double whammy of low pump prices and people driving less, whether for work, shopping, vacation, or just to visit grandma

By The Numbers

Special Note: Statistics Canada revised historical data with the February 2019 release. Unadjusted monthly data were revised back to January 2018, while seasonally adjusted data were revised back to January 2015. Those keeping score should update their files. The analysis in this report is always based on unadjusted data.

CANADIAN RETAIL SALES BY TYPE OF STORE CHART

Canadian E-Commerce Sales

While there were major declines in location-based retail sales, StatsCan data shows a huge increase in e-commerce. In recent months, e-commerce retail sales were up more than double versus a year ago. This includes a 112.7% increase in May and a 123.6% gain in April. Although StatsCan does not directly provide the figures, estimates indicate e-commerce at bricks & mortar retailers grew more than those at pure play operators.

CANADIAN E-COMMERCE RETAIL SALES CHART

Overall, e-commerce represented about 4.5% of Canadian retail sales for the 12 months ending May 2020, including both pure play as well as brick & clicks stores. In May 2020 alone, e-commerce’s share of total retail was up to a record high of 9.5%. Note that Canadian consumers may also buy online from foreign websites which is not captured in these numbers.

Location based retail is the same as that in the preceding “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. For the 12 months ending May 2020, electronic shopping and mail-order houses had an estimated $16.9 billion in e-commerce sales.

But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the 12 months ending May 2020, this group had an estimated $10.3 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $27.2 billion in e-commerce sales by Canadian operators. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian operations.

For electronic shopping and mail-order houses, an estimated 8.5% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that 1.8% of their total sales are attributable to e-commerce.

In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 62.3% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce was 37.7%.

For more explanation on the e-commerce numbers, see Statistics Canada: Retail E-commerce in Canada.

This analysis is updated monthly as new numbers are published by Statistics Canada. If you would like notification from Linkedin of when an update becomes available (and you’ve read this far), please connect with Ed Strapagiel on LinkedIn.

Grocery Giant Empire Announces Massive 3-Year Growth Strategy Investment

By
Mario Toneguzzi
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EXTERIOR OF FARM BOY STORE IN HAMILTON. PHOTO: FARM BOY

Canadian grocery giant Empire Company Limited is launching an aggressive three-year growth strategy for core business expansion and ecommerce acceleration.

PROJECT HORIZON WILL INCLUDE A $2 BILLION CAPITAL INVESTMENT AND A THREE YEAR GROWTH STRATEGY

The initiative, Project Horizon, will include a more than $2 billion capital investment.

The company said its new three-year strategy will deliver an incremental $500 million in annualized EBITDA by the end of fiscal 2023. Building from the overwhelming success of Project Sunrise, Empire’s previous three-year strategy, the company is well positioned to accelerate a new ambitious growth plan, it added.

“Empire now has the team, the structure and the vision to achieve its sales and earnings potential,” said Michael Medline, President & CEO, Empire, in a statement. “Even though we exceeded our Project Sunrise savings target of $550 million, there is still substantial value to unlock through Project Horizon. As the retail landscape in Canada continues to react and shift, under the seismic waves caused by the pandemic, it is clear now, more than ever, that we must be able to serve customers where, when and how they want to shop. We will invest in our core store business to drive growth and will move much faster with Voilà customer fulfillment centres and a new, exciting store pick solution, using Ocado technology.”

Empire said it will accelerate investment in physical assets, through renovations and conversions, and store processes, communications, training, technology, and tools. Capital spend is expected to average approximately $700 million annually over the next three years, which includes approximately 20 new Farm Boy locations in Ontario and the conversion of approximately 30-35 conventional stores to FreshCo in Western Canada.

In fiscal 2021 capital spend is expected to be $650 - $675 million with approximately half of this investment in renovations and new stores. Empire will open approximately 10-15 FreshCo stores in Western Canada and expand the Farm Boy footprint by approximately eight stores in Ontario. It will also invest approximately 15 percent of its estimated spend on advanced analytics technology and other technology systems. Empire's total investment in Voilà for fiscal 2021, including its share of the investment in the Montreal CFC (Customer Fulfillment Centre), is approximately $65 million.

"It must be spending week by big retail in Canada. First Walmart now Empire. Are we going to hear from Metro and Loblaw this week too? I think Empire indeed has some strong opportunities to grow — specifically with the expansion of FreshCo in the West and Farm Boy in Ontario,” said Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail. Winder was referring to Walmart Canada’s $3.5 billion investment recently.

“I think they are playing the Ocado card well with further growth of markets to serve and the test and potential roll out of micro-fulfillment technology at select stores in smaller markets. They are definitely chasing grocery ecommerce aggressively which I think is the right move. Time will tell if Ocado will be their secret weapon to get to best-in-class in food delivery.

“The use of AI and other technology is a given and will be used by all grocers soon if not being used now so I think they will have a harder time differentiating themselves on this front. Personalization is expected and has been in operation for a while at Loblaw.”

EXTERIOR OF FRESHCO GROCERY STORE. PHOTO: FRESHCO

WILL COMPETITORS SUCH AS LOBLAW AND METRO FOLLOW SUIT?

Has Empire's plans considered a strong competitive response by Loblaw and Metro? Two strong grocers who have proven to be innovative and agile.

“They will not sit by and watch Empire take market share from them. Then you have Walmart and Costco breathing down the big three's neck and gaining traction over the last few years. Don't forget, Amazon is getting stronger by the day too. They can only get bigger and will capture share as well,” added Winder. “More and more the reality may be that spending big is required just to maintain market share and protect margins as much as possible.”

Gary Newbury, a retail supply chain strategist and serial transformation executive, said Empire has pressed the button on the next Three-Year sprint Project Horizon.

“This will see a series of internal changes with a continued focus on cost efficiencies. Empire will continue to roll out its piloted GTA-based Ocado CFC, or a store-based picking approach for catchment areas that are not covered by its ultimate plan to install 4 CFCs across Canada - one is already advancing in Boucherville, due to go live 2022. This would suggest online ordering for places ‘out in the sticks’ may not be able to place an online order for a few years. This is a strategy to lose customers to more nimble competitors already fully engaged in ecomm. In fact, I have been advocating Sobeys need a store picking solution and for this to be in position during 2019, and then migrate consumers to the full blown Voila service once it has demonstrated to consumers it has mastery of their online orders.

“I can’t help concluding, this shopping list of new initiatives has been hurried along after Walmart Canada’s significant investment ($3.5B) in addressing their developing omnichannel consumer. Empire needs to focus on accelerating the launch of its online proposition with some speed to build loyalty, before the customer acquisition costs rocket and they are in direct battle with Walmart, Loblaws, Costco or Metro Inc.”

Having no ecomm presence during the pandemic — even a basic “click and collect” — will have hurt Empire undoubtedly, with some consumers wanting groceries without needing to visit the shelves, said Newbury.

“This alone demonstrates the performance gap of digital transformation here in Canada which is not isolated to just the grocery category,” he said.

“One of the challenges of taking a grocery brand online is the ability of consumers to sit at home and split their baskets to use their shopping dollars wisely. Building loyalty by consistent order fulfilment performance at the household (on time and in full) is one way of mitigating the risk of split baskets. However, being late to the gate risks being seen as an ‘also ran’ rather than a leader in the field.”

VOILA BY SOBEYS HOME DELIVERY. PHOTO: SOBEYS

Sylvain Charlebois, Professor, Food Distribution and Policy, Faculties of Management and Agriculture, Dalhousie University, said Project Horizon covers a lot of ground, but it points to how Empire’s leadership is maturing well with Medline at the helm.

“While Project Sunrise was all about cost cutting, Project Horizon sets a clear path for growth with clear objectives. I see three main ones. First, network design. I’m expecting its network of stores to change significantly. The market is overstored and the focus will be more on discount stores, post-COVID. Many closures and conversions will occur,” he said.

“Secondly, the private label strategy at Sobeys needs work. To increase margins, Sobeys needs to do a better a job at deploying some key products and engage with merchants more effectively. And finally, ecommerce. With Voilà, Sobeys has set a new benchmark in Canada, and it needs to keep that way by going national, as soon as possible. Other grocers will respond aggressively.”

Empire said it is accelerating its plans for the remaining two Voilà ecommerce CFCs – for a total of four CFCs across Canada – and introducing Ocado's proven store pick solution. This store pick solution will serve customers in areas where the CFCs will not deliver, or are not yet built, and will begin in Nova Scotia at the end of the summer, before expanding and moving West. Ocado's store pick solution is live and successful in various cities across the world.

It also said it will grow the company’s private label portfolio.

Empire said it will cover approximately 75 percent of Canadian households representing approximately 90 percent of Canadians' spend.

Vancouver-Based ‘White Spot Triple O’s’ Expanding Eastward in Canada

By
Mario Toneguzzi
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EXTERIOR OF TRIPLE O’S RESTAURANT. PHOTO: TRIPLE O’S

White Spot Hospitality continues to expand its Triple O’s quick-serve restaurant concept with a recent opening in the Calgary market and plans to expand the unique offering to Ontario.

“We’ve had great success with our full-service restaurants and the highest sales mix, the most popular items at our Whitespots today, are our Triple O’s burgers, fries, and shakes,” said Triple O’s and White Spot President, Warren Erhart. “The base of our menu.”

“We often thought we could create a concept that would bring the products closer to the guests through a quick-service environment that would be very successful. And it’s proven to be that way. We opened our first one at Rogers Arena in Vancouver and then B.C. Ferries and a lot of sort of unique points of distribution.

“The success really is that it’s a limited menu. It’s the same high-quality products we have at White Spot but this one’s all about burgers, fries and shakes. By using the same recipes that we have, our Triple O’s sauce is really a unique burger offering, the quality you can taste in the products.”

He said the uniqueness of the brand includes hand-scooped milkshakes, fresh-cut fries, and the burger sauce.

The White Spot restaurant chain began in 1928. The Triple O’s concept was created in 1997. White Spot currently has 64 full-service restaurants in British Columbia and Alberta. There are 70 Triple O’s locations in B.C., Alberta, and Asia. Of those, 65 are located in Canada and five in Hong Kong.

In Canada, there is one in Edmonton at the Royal Alexandra Hospital, the recently opened Calgary location at Chevron On the Run at Dufferin Boulevard S.E., and the rest of Triple O’s is in B.C.

The name Triple “O” is derived from the “OOO” abbreviation used by car hops back in the days when drive-ins were popular. The carhops would circle the words hamburger, relish and mayonnaise when taking an order for the trademark burger.

Erhart said the ingredients in its Triple “O” Sauce remain a closely-guarded secret.

TRIPLE O’S HAS PLANS TO OPEN 12 NEW LOCATIONS IN THE NEXT 12 MONTHS

“Right now we’ve got the 70 locations. We’re going to have 12 more in 12 months. We’ve got five more in British Columbia opening up, three in the Alberta market, and four in Ontario that we all plan to have within the next 12 months,” said Erhart.

“So really quite an aggressive growth plan, entering new markets. We are going to be planning some more growth and we have got plans, not quite ready to announce, in a second Calgary location. We’re looking at Lacombe (Alberta) and also one in an Edmonton site. Those are sort of our Alberta plans over the next year.

“In British Columbia, a number of locations here as well throughout the province. But also entering the Ontario market in February of next year. So we’ve got sites already in Vaughan and in Mississauga already lined up for February and March opening for next year.”

Triple O’s are located at various places such as Chevron gas stations, free-standing restaurants, sports arenas, and on university and college campuses.

White Spot Hospitality has been recognized with the platinum status designation as one of Canada’s Best Managed Companies, one of Canada’s top 150 iconic brands as awarded by Interbrand Canada, awarded a gold medal for excellence in franchising by the Canadian Franchise Association and as one of BC’s Most Loved Brands as recognized by Ipsos.

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