Advertisement
Home Blog Page 912

LEGO to Open Experiential Retail Space at West Edmonton Mall this Fall

LEGO STORE AT MALL OF AMERICA. PHOTO: GOOGLE IMAGES

Danish toy brand LEGO is in the midst of a continuing global expansion in 2020 with plans to open over 150 experiential stores internationally. In Canada, LEGO will be opening a new flagship experience store in West Edmonton Mall in November. This will be the eleventh standalone Canadian store and the second location for Edmonton. In Spring 2013, a LEGO Store opened in south Edmonton at Southgate Centre to much fanfare. The Southgate Centre LEGO store grand opening is commemorated with a giant LEGO Mural shoppers assisted in building.

The West Edmonton Mall LEGO store will be located in Phase IV and will span more than 6,500 square feet on one level. The space that the LEGO store will occupy has been reinvented throughout the mall’s history.

The LEGO Store will be taking over the open concept pop up space. Over the years this space has been used a variety of temporary events including the World Vision One Life Experience, Segway Course and Giant Colon Tour sponsored by the Colorectal Cancer Association of Canada. Most recently this space converted into the ‘micro-mall’ Concept ‘RAAS’ (Retail as a Service) which shuttered December 31, 2018.

LEGO West Edmonton Mall Store Design

Currently under construction, the LEGO West Edmonton Mall store will be designed with a similar concept to the The LEGO Store at the Mall of America which was remodeled in December 2010. The Mall of America retail space is located in a high traffic atrium in front of the south entrance to the Nickelodeon Universe Amusement Park. The store features an open air roof with eight larger-than-life models including a LEGO robot over 34 feet tall, helicopter, knights and dragon that all tower over the store. There is a giant “Pick & Build Wall” with 180 different LEGO elements to build your own LEGO creation. There is the “Build a Mini” LEGO figure Tower which features a variety of pieces to customize your minifigure. The centre of the store is called the “Living Room” which is an interactive play area that gives shoppers a chance to get “hands-on, minds-on” with LEGO products. The perimeter of the store is the “Brand Ribbon” which features the “Digital Box” where customers can scan any boxed LEGO set and see a 3D digital model, fully built LEGO models and merchandises the full selection of LEGO products and branded merchandise including DUPLO sets, themes such as NINJAGO, Friends and CITY and popular licensed items such as LEGO Star Wars, LEGO Disney Princess, and LEGO Super Heroes.

The West Edmonton Mall Lego Store will feature all of the same merchandising concepts and a similar footprint to the Mall of America store. The West Edmonton Mall store will occupy the centre space of Phase IV with an open air concept. The store will feature a large entrance facing the Deep Sea Adventure Lake along with a secondary entrance facing Sunrise Records. The steel girder frame soars over two stories and has a tiled design front that is reminiscent of the distinctive LEGO pieces. This frame will serve as the structure for the life sized LEGO models. There is also a suspended model from the ceiling which is a red biplane. The perimeter of the store will be covered with a similar white title. There is prominent life sized LEGO logo signage in the centre of the store. As this store will attract a high volume of shoppers, the flooring used will be the Key Resin Terrazzo Epoxy product which has been used in a variety of LEGO Canada stores. With the high foot traffic, this flooring choice will be easy to clean and maintain. All of these aspects are identical to the Mall of America store excluding the secondary entrance as the Mall of America store only has one entrance and the main design colour is yellow. Both malls are owned and operated by Triple Five.

CLICK IMAGE FOR INTERACTIVE WEST EDMONTON MALL MAP
WEST EDMONTON MALL FLOOR PLAN IN 1986

Phase IV History

In 1985, as part of the Phase III expansion, both the lower and upper levels of this area were occupied by the Vancouver-based Woodward’s Department Store. The Woodward’s store which included a Food Floor (full service grocery store) was over 150,000 square feet. In late 1992, the entire Woodward’s chain filed for bankruptcy owing over $65 million dollars to its creditors. In 1993, the entire chain was acquired by the Hudson’s Bay Company which converted these former Woodward’s locations to either The Bay or Zellers locations. The Phase III store was converted into a Hudson’s Bay store. For four years (1993 to 1997) The Bay operated two department stores in West Edmonton Mall. The original Phase I store location anchoring the east end of the mall and the converted Woodward’s store in Phase III on the west end of the mall. By late 1997, Hudson’s Bay made a decision to close the Phase III store. West Edmonton Mall decided to repurpose this anchor space into their Phase IV concept. Construction started on March 31, 1998 and was completed by the end the year. The old Woodward’s / The Bay space was converted into 2 levels of inline stores. Grand opening stores included a 2 story HMV Music Store, on the main level a PJ’s Pet Centres, Chapters Bookstore, Playdium Entertainment Complex and on the second level Eddie Bauer and Wild West Shooting Centre. Added above the former Woodward’s / The Bay space was the Famous Players SilverCity / IMAX 3D Theatre with access from the second level. The centre space of Phase IV featured the HMV Performance Stage along with an open concept pop up space facing the Deep Sea Adventure Lake.

Phase IV Today

The Lego Store will be nestled among an eclectic mix of retailers. Almost all of the original Phase IV retailers have changed with the exception of the Chapters Bookstore which has been rebranded under their Indigo banner with an expansion in 2015 adding an Indigo Kids and American Girl experiential store-in-store boutique and the Wild West Shooting Centre. The HMV store has been replaced with Sunrise Records and the stage is now known as the Phase IV Stage, the Playdium Entertainment Complex and PJ Pet’s has been replaced with Aurora Cannabis. The second level retailers have also changed, the Eddie Bauer store has relocated to Phase I and the space was replaced with Canada’s first Bubba Gump Shrimp Co. Restaurant and the north side was redeveloped for Simons Department Store with 2 exterior entrances facing Phase IV. Beside the Bubba Gump Shrimp Co. Restaurant is the Stingray radio station group with the on-air studios of 840 CFCW, K-97 Classic Rock and the breeze 96.3. The on-air studios opened in 2005 by Newcap Alberta which was acquired by Stingray in 2018. Even the Famous Players SilverCity / IMAX 3D Theatre has been rebranded as the Scotiabank Theatre Edmonton after the acquisition by Cineplex. The majority of the original theatre branding and fixtures including the fire breathing dragon have been removed over the years. This mix of retailers will complement the Lego Store especially the Indigo Kids and American Girl store-in-store boutique. Both stores will attract children and their parents to Phase IV.

Analysis

The addition of the Lego Store to West Edmonton Mall will help the mall weather the retail storm of 2020. Although the LEGO store is a retail store, it will become another attraction at West Edmonton Mall. The life sized LEGO models will draw shoppers from both the main and second levels of the mall towards Phase IV to snap photos and enter the store. These photos will add towards user generated marketing content once posted on social media channels. Today’s shoppers are drawn towards experiential components such as play areas which the LEGO store will offer. Children will be able to play while the parents shop. LEGO also plays into an educational aspect, as parents view LEGO as more of a learning toy compared with electronic toys. Overall the LEGO store at West Edmonton Mall is a great fit and will help the mall continue to reinforce its place as leader in the realm of ‘retailtainment’.

Miniso Canada Investors Protest Chinese Parent Company

MINISO STORE AT CF TORONTO EATON CENTRE

Canadian investors in Miniso stores are suing Miniso’s Chinese parent company as well as those involved in the Canadian division. The investors are also protesting the Chinese company’s actions amid struggles following COVID-19 shutdowns. Recently franchisees in Toronto held a protest in front of the Queen Street Miniso store, making a variety of claims that the company is harming investors as well as other claims of fraud.

The value-priced Chinese Miniso variety chain, which the company positions as being ‘Japanese’, entered Canada in 2017 with plans to open about 500 stores over five years. That expansion hit a snag in late 2018 when Miniso’s Chinese division filed to put the Canadian division into bankruptcy amid claims of misdeeds. Miniso subsequently stated that agreements were reached to keep Miniso a going concern in Canada, though in the background issues persisted and now a group of Canadian investors is saying that the Chinese parent company is trying to put them out of business.

Investor protesters recently held up signs with slogans such as “Miniso took all my money”, “Fair treatment for investors”, “Miniso return my money”, and “Miniso has no conscience”. The investors are saying that Miniso’s actions have led to significant financial losses stemming from a questionable investment scheme.

PHOTO: CRAIG PATTERSON

In March of this year, the investors for 63 of Miniso’s franchised stores in Canada filed lawsuits in British Columbia against defendants which included Miniso’s parent company in China as well as the Canadian division which solicited the investors with promises of profits. That includes Tao Xu of Richmond BC who is the director of Miniso in Canada as well as several of his family members and associates who reside in the Vancouver suburb of Richmond.

In the lawsuits, the franchisees noted that day-to-day operations were to have been handled by Miniso Canada and that all product in stores would be supplied and branded by Miniso. Investors, who would pay a license fee as high as $100,000, would own 49% of a store while Miniso Canada would own 51%. Investors would be responsible for covering costs such as any store renovations while being obligated to only do business with Miniso Canada.

The initial ‘cooperation agreement’ was reached in October of 2016 where products and store fixtures would be supplied to the new Canadian Miniso operations. Miniso Canada told investors that the Canadian operations had the support of the Chinese parent company and that the parent company knew that individual investors would be brought in with a profit-sharing agreement. Ultimately, the Chinese division wasn’t aware of many activities carried out by the Canadian division and the battle that ensued led to the parent company’s efforts to shut down Miniso’s Canadian division.

The Canadian investors claim that the Chinese division was complicit and negligent by not taking action or making proper enquiries into what was happening with the Canadian operations. The lack of due diligence allowed Miniso Canada to change its course and hide money while at the same time funnelling money to Miniso operations in Latin America.

PHOTO: CRAIG PATTERSON

In a Notice of Civil Claim filed in March 2020, the list of investor stores was set out in Schedule “A” including license fees and deposits as well as other costs such as store renovations. Investments in some of the stores amounted to nearly $500,000 each. One investor in Quebec with seven stores invested more than $2.5 million according to one Notice of Claim, noting that Miniso’s Canadian division had secured investors with terms contrary to Master Agreements.

That included Miniso Canada having ordered and supplied product which didn’t comply with the Master Agreements and supplied product to stores that wasn’t from Miniso itself. Furthermore, monies secured from investors were used to establish 17 stores in Peru, Chile and Argentina including inventory for those stores. Canadian investors as a result have lost millions of dollars according to the lawsuit.

Tao Xu and other directors of Miniso Canada allegedly solicited investors while at the same time not granting Miniso’s Chinese parent company an interest in the new stores, nor would the new licensees be required to be bound by a Master License Agreement setting out operational and revenue mandates. Deposits taken by investors were mishandled amid claims of fraud.

The Securities Act was also breached according to a lawsuit. Disclosure and protections were not followed which caused harm to the investors as a result. The lawsuit states that the Chinese parent company for Miniso in Canada is responsible for the vast losses many of the Canadian investors are facing.

Damages sought in the lawsuit include moneys for negligent and/or fraudulent misrepresentation as well as damages stemming from B.C. Securities Act breaches as well as damages due to fraud. Costs are also being sought by the Plaintiffs. Given Miniso’s Chinese division had a broad financial interest in the Canadian operations, one of the lawsuits targets them directly.

PHOTO: CRAIG PATTERSON

Investors are now saying that Miniso China is attempting to squeeze them out while making it challenging to operate. One franchisee said that product shipped to the Canadian stores wasn’t “new” product, rather goods that didn’t sell in Miniso’s Chinese stores. Furthermore, franchisees paid a fixed cost for goods at prices dictated by Miniso in China, with Miniso subsequently reducing prices on some goods which hit the bottom line of the Canadian franchisees.

Many of Miniso’s franchised stores in Canada have closed since last year, with a mix of corporately owned and franchised units remaining open. Some of the stores currently open are being offered for sublease according to brokerage websites.

In March of 2019, Miniso’s Chinese parent company made a statement to the Canadian Press that things between Miniso China and Miniso Canada had been settled, and that the Chinese division would be taking over the Canadian operations. The investors now say that the Chinese parent company is also acting in bad faith.

Last year, one source said that Miniso Canada had been unethical when dealing with some commercial real estate brokers. Another source claimed that Miniso Canada induced highly skilled retail professionals to leave secure employment in order to launch Miniso in a new province and within six months of establishing several stores in the province, the retail professional’s employment would be promptly terminated so that the local licensee could take over the thriving operations.

The rapid expansion resulted in long hours for employees, weekend work and overtime, with some staff spending nights in sleeping bags in a company warehouse. Burnout was said to be a concern as a result of the rapid store expansion.

Miniso could still be in trouble particularly in Quebec, as well, where sources in the company said that it has not met language standards that include french language on products and overall branding. One former employee explained how Miniso had been put on notice by the Office québécois de la langue française, or the ‘Language Police’ as some call them. Multiple lawsuits for unpaid construction projects also daunted the retailer.

Investors are now seeking monies that they say are owed from Miniso China as well as individuals associated with Miniso’s Canadian division. Times have been challenging, with most Miniso stores in Canada currently being unprofitable according to one investor. It remains to be seen what the future of Miniso will be in Canada amid lawsuits and bad blood created by a series of unfortunate events following the retailer’s entry into Canada more than three years ago.

Miniso started trading this week on the New York Stock Exchange, raising US $608 million on Thursday. Miniso founder Ye Guofu, who owns an 80% stake in the company, became a billionaire following the listing with a net worth of about US $4 billion. The IPO values Miniso at about $5.6 billion if shares are priced on the higher end of the estimate at $18.50 a share. Miniso’s shares were trading at over $20 the first day.

ICSC RECon Canada Conference 2020: October 26 and 27

ICSC RECON CANADA CONFERENCE

Essential retailers are driving the commercial real estate market in Canada. They’ll also be at ICSC’s RECon Canada, a virtual event running Oct. 26 and 27, to discuss how they’re growing their businesses in these tumultuous times. [Retail Insider readers can register for free using code INSIDER]

The conference also will feature a keynote address by Wayne Gretzky, the man who changed the game of hockey and became a Canadian legend; networking opportunities between brands and retail and real estate decision makers; discussions among thought leaders about innovation and facilitating growth after COVID-19; and updates on the state of the industry, including economic forecasts and what’s ahead.

Here’s more on essential retailers and other brands attending:

Empire Co.

The company owns a stable of supermarket brands, including Sobeys, and aims to boost its market share to 90 percent of Canadians’ annual grocery spend. To reach more shoppers, the firm is introducing omnichannel technologies, including a Voilà by Sobeys Curbside Pickup, which allows customers to order groceries online and schedule a one-hour window to pick up the items curbside at a nearby store. Senior vice president of real estate Mark Holly will speak at a session called Anchored: Why Grocery and Pharmacy Are More Essential Than Ever on Tuesday, Oct. 27, at 10:30 a.m. Eastern.

Rexall

The pharmacy chain has been involved firsthand in Canada’s battle against the pandemic, as many of its stores served as COVID-19 testing sites. The company is opening Rexall on the Go personal protective equipment vending machines in airports and other public areas. Vice president of real estate Max Izen also will speak on the Anchored: Why Grocery and Pharmacy Are More Essential Than Ever panel on Tuesday, Oct. 27, at 10:30 a.m. Eastern.

Lowe’s Canada

The company has been on a hiring spree for its stores and distribution centers to support growing sales. It also is paying associates at Lowe’s, Rona and Reno-Depot stores across the country a discretionary bonus for their service as frontline workers. Director of market research Simon Genereux will speak during the Where the Shoppers Are: A Data-Driven Look session on Tuesday, Oct. 27, at noon Eastern.

Best Buy

Physical stores remain an important part of business for this electronics chain. It saw a surge in online sales while its physical stores were under government-mandated lockdown, but its stores experienced a wave of pent-up demand when stores reopened. Best Buy Canada CFO Bryan Kooistra will speak at a session called How Best Buy Is Innovating to Keep Canadians Connected on Tuesday, Oct. 27, at 11 a.m. Eastern.

RECon Canada won’t be all about traditional retail tenants, though. Alternative users like dentistry network Dentalcorp, day care centre operator WillowBrae Academy and healthcare clinic chain Medpros also will be on hand. Dentalcorp President, Guy Amini, Willowbrae Academy Vice President, Shawn Pattison, and Medpros President, Naz Aziz, will describe their companies’ real estate needs at a session called Alternative Uses for Retail on Tuesday, Oct. 27, at 10:30 a.m. Eastern.

Learn more about the RECon Canada agenda and register here.

While non-members typically would pay $725 for this event, ICSC has extended free registration to Retail Insider readers using code INSIDER.

*Partner content. To work with Retail Insider, email: craig@retail-insider.com

How the Gemstone Market will Generate Massive Revenue in the Coming Years

EXTERIOR OF THE ROCK SPA AND RETAIL SHOP IN KITCHENER, ONTARIO. PHOTO: THE ROCK SPA

Many industries are struggling to regain footing after a tumultuous year due to COVID-19. The gemstone industry, however, is offering some of the most lucrative opportunities yet. According to research by Future Market Insights (FMI), this market continues to exhibit stunning growth potential and is likely to generate massive revenue from now through 2026. The expected industry Compound Annual Growth Rate (CAGR) is 5% for this period- a figure indicating the immense profit potential.

The FMI report suggests that this growth will come about due to recent developments in the sector. Firstly, the rate of purchasing customized gemstones as well as gemstones for luxury art has been steadily growing since the recent past. And although both low-end and high-end gemstones have been doing well, the latter shows massive promise because of an upsurge in demand for rare, unique, and high-quality gemstones.

Also, generations Gen Z and millennial are increasing their spending power, which is raising the per capita spending on luxury product categories by consumers. All of this can only mean one thing. Investing in the gem industry is likely to leave you well-off soon. And talking about being well-off.

Rapid Growth also Expected in the Wellness Industry

Research shows that about three-quarters of all American adults are now actively seeking ways to uplift their health. Which is the main reason why the wellness industry has experienced triumphant ascension in recent years. As Forbes writer Scott Nelson puts it, “the rise of an immense, global wellness market reflects people’s changing attitudes towards their health and lifestyle.” Now, more than ever, consumers are prioritizing lifestyle and spending more money on well-being.

Figures from the Global Wellness Institute (GWI) indicate that the wellness industry had a value of over $4 trillion in 2018. That’s the combined GDP of Canada and the United Kingdom. Not only that. The value of the wellness industry today accounts for over 5% of global economic output as per the GWI figures.

Kill Two Big Birds with One Special Stone

Imagine having a stake in both the booming wellness industry as well as the gemstone one. How lucky would you be? Well, you have an opportunity to be this lucky now.

The Rock Spa & Retail Store is up for sale and with this development comes an opportunity of a lifetime. You can sell gemstones as well as wellness services. At the same place, at the same time! Talk about the perfect asset, eh?

If you’re hoping for a better 2021, you ought to take a look at this opportunity. You’ll thank your lucky stars.

DX3 Pulse 2020: Virtual Event October 21

DXE PULSE CONFERENCE

DX3 Conference is hosting the DX3 Pulse event on Wednesday, October 21. Retail Insider readers are invited to attend.

[Buy Tickets Here]

The world of retail is changing rapidly amid the COVID-19 pandemic. The DX3 pulse event is all about evolving as we shift practices, systems, and paradigms.

It’s ‘year Zero’ and businesses need to evolve to the new reality. Consumers are changing while buying behaviours and social interactions have forced us into rethinking the entire business proposition and product offering.

The DX3 Pulse event will educate attendees on how to use and implement new tools, channels, and strategies towards success. That includes gaining new ideas, diverse perspectives, and discovering what leading businesses are doing to be successful in these pivotal times. You’ll virtually meet like-minded people, connect with industry leaders, and be inspired.

A range of speakers will be part of this year’s DX3 Pulse, and the following are a few discussion points from a question and answer prior to the conference.

IAN ROSEN

Ian Rosen, VP Digital and Strategy at Harry Rosen:

Q: How have customer expectations changed?

A: If you’re not making online easy, you’re falling out of the consideration set. If clients can’t find products digitally they aren’t going to understand the breadth of your offering. Clients love when we show how to wear something in many different ways because versatility in a wardrobe is more important that ever.

Q: What changes do you expect to see this holiday season and how are you preparing?

A: It’ll be a digital holiday and clients are going to need to discover online and buy differently. We’re shoring up our already supercharged online experience with new offerings such as a quiz that recommends products to you and enhanced pick up in store journeys. We also are enabling our 500 clothing advisors to curate the website for their clients so the client doesn’t have to spend time browsing.

MARC LAFLEUR

Marc Lafleur, CEO & Co-Founder, truLOCAL:

Q: What are you looking forward to in the future?

A: I’m definitely looking forward to increased adoption of online shopping. Over the past five years, businesses have been able to evolve fairly quickly even though the relative pool of online shoppers has been small compared to all retail sales. More people shopping online means we’ll be able to explore more, innovate faster and create more unique experiences. We’re looking forward to the age of e-comm becoming mainstream.

AROOBA KHAN

Arooba Khan, eCommerce Manager, Crate & Barrel & International, Crate & Barrel

Q: What are the top three challenges that you’ve overcome?

A: My first challenge is pivoting in the face of adversity. I did this by implementing a buy online, pickup in store strategy earlier in the year for Crate & Barrel & CB2 (we launched Feb 5, 2020) before lockdown, and flipping the switch once applicable. This enhanced Crate & Barrel & CB2 and set us up for success the moment the retail Stores reopened. Ultimately, we were not catching up on how to implement buy online, pickup in store, but rather gearing up to push the functionality across all channels and Canadian stores.

My second and third challenge are interchangeable, but it is with creating an OMNI channel experience that is both enhanced and technically savvy. We overcame these challenges with strategic design product reviews, testing and implementation of all newness for the CA platforms.

Hear more from these and other speakers at DX3 Pulse, happening next Wednesday October 21. Time is running out to register.

[Buy Tickets Here]

*Partner content. To work with Retail Insider, email: craig@retail-insider.com

AI-Powered Technology Enables a Hyper-Personalized Gotengo Online Experience

GOTENGO AI-DRIVEN PLATFORM FOR INCREASED PERSONALIZATION. IMAGE: GOTENGO

The power of technology is all around us, its impact present in just about everything that we do. For decades, its development has been critical in providing support and satisfying vital infrastructure requirements for nearly every industry and sector around the world, aiding the evolution of virtually everything it’s touched. Today, it’s ubiquitous, so deeply embedded in our everyday lives, so connected to the things we do and the instruments we use, that the potential it poses to positively influence our experiences is profound.

The innovation involved in many of today’s advancements is also helping to drive a need in people for curated, personalized experiences that are informed and supported by technology. It’s a need that is perhaps most prominently pronounced by gaps in the online retail customer journey, one that’s resulted in a tremendous amount of retailer investment and the adoption of a singular focus and effort by many developers of software and digital technologies to unlock the door to the age of personalization for the consumer. And among these efforts is one pure-play e-commerce company that believes it just might have the key.

Gotengo, a Toronto-based online menswear retailer, has developed a proprietary AI-driven platform that it says “offers shoppers the ability to hyper-personalize their shopping experience” and makes shopping for apparel online easier and more convenient. Launched earlier this year, the online retailer promises a different kind of e-commerce experience and a unique way for consumers to shop for premium menswear in Canada.

GOTENGO AI-DRIVEN PLATFORM FOR INCREASED PERSONALIZATION. IMAGE: GOTENGO

Personalization and Customization

The technology, developed in collaboration with startup incubators MaRS and RU Fashion Zone, leverages a variety of deep learning and human intelligence to inform the AI, rating and ranking items on the website specific to the preferences of each user. Preferences are identified when the user answers a few simple questions, allowing for their customer profile to begin to take shape. Based on the preliminary information provided, which can include an uploaded selfie, if the user opts to provide one, the Gotengo platform is then able to make personalized recommendations that are more specific to the user and informed by current style, colour and sizing advice. In addition, users can search for product on the website based on their budget and the occasion that their purchase might be connected to.

“We’ve tried to build something that’s going to elevate the idea of personalization,” says Daniel Del Mastro, Co-Founder of Gotengo. “And we’ve done that by learning about our shoppers and by gaining a deeper understanding of the things that really matter to them. The platform that we’ve developed isn’t just another recommendation engine offering suggestions based simply on products viewed. Our platform goes a lot deeper than that to really inform our user with suggestions and advice that are more personalized than those offered by any other engine.”

In fact, there are several layers of personalization that a customer can choose to add to their profile, something that Del Mastro describes as Gotengo’s “hyper-tailoring”. This additional level of personalization addresses some interesting factors, including any ethical or body concerns that the user might have, as well as material and wash preferences, and more. Armed with all this information, the platform then aggregates a customized scoring system that’s used to support and help explain the recommendations being made to the customer.

“It’s all meant to take a lot of the friction out of the apparel shopping process,” Del Mastro asserts. “Everyone today is starting to expect personalization and customization. They want messages and information to be directed toward them. And we feel, with the introduction of Gotengo, that we’re at that starting point of a revolution that will result in true customization and a bridging of the gap between online and offline.”

GOTENGO AI-DRIVEN PLATFORM FOR INCREASED PERSONALIZATION. IMAGE: GOTENGO

Heightened Service and Selection

The company believes that one of the ways this can be achieved is through the building of customer trust in the Gotengo customized tailoring process and the accuracy of the recommendations that it provides. The current return rate for apparel bought online in Canada, according to most sources, hovers somewhere between 30-40 per cent. Boasting an early reported return rate significantly lower than the industry average, combined with its emphasis on fast next day shipping to anywhere in Canada, it seems as though Gotengo just might be on to something.

Another way the company’s attempting to bridge the gap between the online and brick-and-mortar customer experience is through the offering of a smart selection of brands and styles. Gotengo currently works with brands that include Ted Baker, Tiger of Sweden, Colorful Standard, Kovalum, L.L. Bean, Stone Rose, Bruun & Stengade, and others, providing a breadth of choice that it hopes will appeal to a range of shoppers.

“It’s frustrating sometimes to look at American websites and the wide selection that they offer,” laments Del Mastro. “There has always been a distinct lack of variety with respect to brand and style offering on Canadian e-commerce sites, particularly in the luxury menswear space. Everyone seems to be selling the same things. We want to disrupt that norm by offering the brands that people are familiar with as well as a selection of lesser-known brands that have smaller distribution in Canada to help provide that selection that’s currently lacking online in the country. In fact, later this fall, we’ll be introducing a number of brands that will be totally unique to the Canadian market, providing our customers with more choice than they could find anywhere else.”

So far, the company’s been able to deliver on its mandate of style and selection through meaningful partnerships that have been built with the many Canadian and global distributors and brands it works with. It’s a philosophy that Del Mastro says Gotengo is very proud of, and one that is currently reaping rewards for the online retailer and its customers.

“The way we approach our work with distributors and brands is from the perspective of true partnership,” he says. “We want to actively help strengthen the online menswear ecosystem and cultivate relationships that are mutually beneficial for Gotengo and our distributor and brand partners. We lean on them for the knowledge and expertise that they’ve gained through years of history. And they have the opportunity to leverage the power of our technology and personalized platform. The types of partnerships that we’re building are intended for longevity and designed to enhance all businesses involved, helping everyone to continue growing in a changing world.”

A Holistic Online Solution

Its varied assortment, made possible by its strong distributor and brand partnerships, along with the customization tools provided by the Gotengo platform, certainly puts the company on the map as one of today’s innovators in online menswear personalization. However, if a shopper wishes to shop Gotengo as they would on most other e-commerce websites, searching for product by brand or style or price, they can do so without taking advantage of the custom tailoring while enjoying the same great online experience. In addition, despite the way in which the shopper chooses to engage and interact with Gotengo, personal customer care assistance is available around the clock to provide almost immediate advice concerning style, fit or anything else.

“We want to cater to the needs and preferences of the customer, whatever they are” states Del Mastro, “allowing them the freedom to engage with us in whichever way they want. We simply provide the tools to help make their experience shopping for menswear online as personalized and curated as they’d like it to be. In that way, we offer a much more holistic solution than most others in the category.”

It may be early days for the fledgling online retailer, but Del Mastro confirms that sales have been positive so far, underscoring a desire in the consumer for a more personalized experience and an opportunity for Gotengo to exploit an underserved Canadian menswear market. And, although he recognizes the excitement of the company’s early success, he admits that the introduction of their platform is just the beginning.

“We want to become the go-to destination online for menswear in Canada and to continue to bridge the gap between the online and in-store experience. We want to continue developing ways that allow us to go deeper into personalization and customization, simplifying the online apparel shopping experience for the Canadian consumer even further. And we’re enthusiastic about our plans and the possibilities to leverage new and different technologies in the future to continue enhancing the overall Gotengo experience, enabling us to expand our unique and progressive offering and service.”

Canadians to Overwhelmingly Shift to Online Holiday Shopping: Survey

Friends celebrating Christmas or New Year eve party with Bengal lights and champagne. Image: Adobe Stock Images

This holiday shopping season no doubt will be unlike any other retailers have ever experienced and more shoppers are expected to conduct their activities online due to the on-going COVID-19 crisis.

The RedFlagDeals.com 2020 Holiday Survey confirms the trend in e-commerce which has received a boost since mid-March when the retail industry was first rocked by the pandemic amid store closures as shoppers who never shopped online before then turned in this direction.

93.55% OF PEOPLE WILL SHOP ONLINE THIS HOLIDAY SEASON ACCORDING TO RED FLAG DEALS

When people were asked if they will be shopping more online or in-person this holiday season due to COVID, 93.55 percent answered online and 6.45 percent answered in-person.

Kate Musgrove, Director of RedFlagDeals.com, said the most obvious result from the comprehensive survey was the percentage of people planning to do their shopping online.

“I think there are a lot of factors that we aren’t really sure of yet. I think we’ll certainly see it continue into 2021. I don’t know if we’ll see it continue into the holiday season for 2021 — a full year from now,” she said. “But certainly the beginning of the year we’ll continue to see people shopping online, taking advantage of the new features that some stores have rolled out like curbside pickup, click and collect style thing where they don’t have to enter the store and employees bringing the product to their car. It’s paid online.

“It’s that sort of hybrid that people have found really helpful in the past couple of months.”

When asked where people will do the majority of their shopping, 62.15 percent said online, 30.14 percent said online and in-person and 7.17 percent said in-person.

“It didn’t really surprise me. Everything considered anecdotally I know people like my mother-in-law who loves shopping in-store and has always done her holiday shopping in-store has now told me she’s now shopping online. These are the websites She has accounts at that she can shop on and this is where she’ll be getting our holiday presents,” said Musgrove. “She’s just not willing to gamble waiting to see if she’s able to shop in-store like normal. She doesn’t want to wait and see how the pandemic goes, how COVID numbers develop. She wants to do everything online and this is the first time in her adult life that she’s taken that approach.”

It’s an approach that will become increasingly more popular in the coming weeks and months.

When asked what major event do they plan on making their most holiday shopping purchases, 58.78 percent replied Black Friday with 9.47 percent on Cyber Monday and 12.43 percent on Boxing Day.

“People have appreciated having a shopping holiday that takes place before Christmas and sometimes before Hanukkah sometimes not depending on how the year falls and I think retailers have responded to consumer interest by saying let’s push out the deals, let’s push out some bargains, let’s stretch out the holiday shopping experience,” said Musgrove.

“There isn’t a retailer in Canada these days who is not taking advantage of Black Friday and that wasn’t true five years ago for sure.”

When asked when they plan on conducting their holiday shopping, 42.92 percent said November, 12.89 percent said October, and 10.62 percent said December.

The categories of retail that most people are interested in buying are electronics 89.91 percent, clothing 59.55 percent, and home goods/appliances 41.56 per cent.

When asked if they plan to spend more this year than last year, 16.58 percent of people said yes, 40.60 percent said no, and 42.83 percent said the same.

Toronto Program Aims to Invigorate City Retail Districts with Artwork Initiative

Gertrude Stein once said: “The subject matter of art is life, life as it actually is; but the function of art is to make life better”. It’s a statement as poetic as it is profound, and one that speaks to the potential that art offers us as a possible agent of healing, communication, education and growth. It draws attention to its capacity to help us expand our thinking as individuals, as well as to deepen our understanding of the world we live in, sustaining a compassion for the people and things that we share it with. Her words are simple, yet they seem to convey in a very powerful way all of the qualities and benefits that art imparts, the ways it lends light to dark places, softens the hard and makes accessible the things that may have previously been made remote. It’s a philosophy that recognizes the cerebral, physical and spiritual responses that art stirs inside of us, making life more interesting, more dynamic and, as Stein suggests, simply better. And it’s also the philosophy that helps support and inspire the work done by The STEPS Initiative – a Toronto-based cultural organization dedicated to the use of art as a means to beautify our streetscapes, connect our communities and, as a result, strengthen and reinforce local business.

The organization, which operates as a CRA-certified charity, works with business improvement areas and other groups to identify public spaces that may require an upgrade. And through its services and collaboration with its roster of artists, it helps to transform urban areas, injecting vibrancy and verve into their surroundings, improving and enhancing them through arts and culture. It’s work that advances STEPS’ goal to foster stronger communities and strengthen the connections of those living within them, something that Alexis Kane Speer, Executive Director of The STEPS Initiative, believes is an integral component in ensuring the health and continued growth of urban neighbourhoods.

“Art has a power to connect people,” she says. “It has the power to engender a sense of shared understanding, bringing people together. It can also help to stimulate and nurture dialogue around topics that might otherwise be difficult because of differences between people. There’s a range of lived experiences represented in cities across Canada. Art provides a beautiful platform for these experiences to be shared and to give voice to people in our communities who are underrepresented.”

Inclusivity through art

Kane Speer’s comments are insightful and reflect STEPS’ mandate to showcase the work of diverse Canadian artists, with an emphasis on supporting the work of those who identify as emerging, Black, Indigenous, Person of Colour, female-identified and LGBTTQQIAAP. It’s a mandate and support that ensures the organization operates with the same openness and inclusivity inherent in the very notion of art, resulting in a host of incredible works being created and showcased in and around the city of Toronto.

Throughout its 10-year history, The STEPS Initiative has helped to produce over 200 public art installations, ranging from large-scale projects, like the world’s tallest mural located at 200 Wellesley Street East, to smaller-scale, more temporary activations that might include the adornment of vacant storefronts or construction sites. In each case, the organization and its artists help to transform these spaces that might feel dormant within the neighbourhood, re-envisioning them as places of culture and community.

“Every installation that we execute is different, unique to the communities that host them,” says Kane Speer. “So, with every project that we initiate, we make sure that we have a thorough understanding of the space we’re working in, including any cultural needs within the community and the identity that they might want to portray. The use of art can be an extremely helpful tool in telling the story of an area or neighbourhood.”

STEPS also offers a scope of services that help support the work it does through the development of its artists and the advancement of its vision to “shift the way cities are planned”. As part of these services, the organization provides local artists with technical skill-building workshops, mentorships, residencies, coaching on public art proposals, as well as paid production and exhibition opportunities. It also administers creative placemaking services that help communities transform their spaces to meet their changing needs, and cultural planning assistance that’s delivered through consultations on cultural master planning, community arts program design, public art opportunity mapping and more. In addition, STEPS operates its PATCH program, which helps to facilitate connections and partnerships between developers, builders and marketing firms and the artists, helping construction sites in the city meet legislated public art requirements.

As a result of STEPS’ focused support for artists and the improvement of the communities we live in, it has managed to enable more than 5,400 paid artist opportunities, 1,000 youth leadership opportunities and in excess of 10,000 community engagement opportunities. And, by way of its activations, work executed by STEPS and its artist collaborators has become recognizable throughout Toronto, yielding breathtaking public art, from mesmerising murals in the city’s Garden District and at 1 St. Clair West to the revitalization of the Roncesvalles Bridge. Their collective work, which is often typified by an injection of beautiful colours and impressive creativity, is helping to improve the neighbourhoods and areas it effects, at times turning once unsafe, unwelcoming places within communities into vibrant and inviting spaces, stimulating pride among residents of the activated areas.

Impact on local business

The work STEPS does in order to improve our collective surroundings is extraordinary. And its impact is immense, its beautification and improvement of public spaces and streetscapes positively influencing many other aspects of the communities it effects, including the health and success of local business. In fact, STEPS recently launched its ‘I HeART Main Street Art Challenge’, which ran through the month of September, with the objective of activating Toronto’s street fronts. Presented in partnership with RBC Royal Bank, pieces of the Challenge could be found at 204 activation sites across the city, which included 42 new works of art created by 25 emerging Canadian artists and designers, resulting in support for 11 Business Improvement Areas.

The ways in which art can positively influence local businesses and economies are plentiful and are recognized by Mark Ainley, Contemporary Feng Shui Consultant and expert on space and flow, who suggests that the juxtaposition that art diffuses onto our urban landscape can help dramatically change the energy and impression of a given area or community.

“Our urban environments can at times be very imposing,” he says. “The architecture found in most North American cities is really large in scale and has been made using hard materials. As a result, it can give off an imposing, intimidating atmosphere. The colours that are used in the construction of the buildings are usually very plain, too, resulting in a distinct lack of vibrancy. And our cities have tended to be built on linear grids using straight lines. These linear forms can bring about a speedier and thereby more aggressive quality to these spaces and the movement by people through them, which can foster impatience and aggression. If all of a sudden all of this colour and creative expression is added to this hard, linear environment and largely colourless, utilitarian architecture, generally speaking, there’s a significant and supportive shift in atmosphere that can take place.”

Ainley explains further how the injection of art and creativity into our lives helps to invigorate our senses and engage our curiosity, connecting us more to the environment around us. And he suggests that the type of work executed by The STEPS Initiative is exactly the kind of resource retailers and other local businesses should be leveraging in order to increase traffic to the communities they operate in and heighten exposure to their offerings.

“Many of our city streets are unfortunately predictable and boring. There’s often very little that’s particularly creative in their design,” he bemoans. “But artistic expression is unpredictable and unique. When well done, it can provide people with an experience unlike any other. Retailers need to leverage these kinds of artistic initiatives to appeal to people’s innate curiosity and interest. When you can stimulate those two inner states, you move beyond simple, mundane functionality, which can result in a level of involvement and engagement that enriches everything and everyone involved. So, instead of sticking to the basic and functional, retailers need to look at the things they can do to enhance the environment and surroundings, which can positively impact the overall retail experience.”

Important role of BIA’s

There are many things that retailers can do independently to achieve an enhanced physical experience for their customers. Much of which, however, is limited to the store’s interior and facade. But with the help of their business improvement areas, according to Larry Leung, customer experience expert at Transformidy, business owners can realize the benefits of art in their communities as a tool for engagement, allowing them to develop a deeper connection within the areas they serve.

“There’s a lot of research that indicates quite strongly the correlation between community transformation and beautification projects that leverage the use of arts and culture and decreases in crime in those areas,” he says. “And the same correlations can be made with respect to the positive impacts on local businesses. Art provides a great way to draw people in, to engage them on a different level, generating traffic and interest in everything a community has to offer. And this is where BIAs’ involvements are so important. They are the ones with the capabilities and the resources to be able to understand what identity their community needs to convey, how special projects like STEPS can help to tell their story and present that message, and how local businesses can become a part of that story and message.”

Leung stresses that the possibilities are abound with respect to the ways arts and culture can be leveraged to benefit everyone involved and that any and all opportunities to do so should be explored. He also cites that, as well as the positive impact that arts and culture have on generating local traffic to communities and storefronts, it’s also incredibly effective in influencing travel and tourism, providing a reason for people to visit cities, thereby boosting local economies further. And although the COVID-19 pandemic has muted travel and tourism worldwide, in addition to a number of other things, he suggests that now may be the perfect time for businesses and communities to be leaning on art to innovate and engage potential customers locally.

“Let’s face it,” he says, “with COVID, a lot of people haven’t really ventured out of their home, much less their neighbourhoods. It almost doesn’t seem worth it for most. But what if there was a reason to go out? What if there was a really great art installation, something new to discover and interact with? In that way, you can draw people out, make them feel good about venturing out, and provide them with an experience that they can’t find anywhere else.”

Responding to community needs

To that end, and in response to the impact of COVID-19 on communities and local businesses everywhere, STEPS recently organized and launched its COVID-19 Creative Placemaking Rapid-response (CPR) initiative. As part of the CPR initiative, STEPS is offering free consulting to both the private and public sector, including Canadian municipalities, BIA’s, community and non-profit organizations or businesses. The intention is to help communities identify spaces where art might help lessen the impacts of the pandemic and to offer itself as a resource to provide direction concerning the use of certain spaces.

“Right now, there’s an apprehension in people. There’s a shared feeling of discomfort and distrust, both with spaces that previously felt safe as well as with the people we share those spaces with,” says Kane Speer. “As a result of COVID-19, we’ve been forced to rethink all the ways we interact with physical spaces and people. We see our work as a way of rebuilding that sense of trust and improving public spaces in the process. We’re helping community and business groups navigate through reimagining how spaces are used, as well as what interaction with shared spaces might look like going forward.”

CHINATOWN BIA ARTWORK BY JIEUN JUNE KIM FOR TABLETOP ACTIVATION.
CHINATOWN BIA ARTWORK BY LINH THAI FOR TABLETOP ACTIVATION.

Determining just how spaces are to be used in future as a result of the impacts of COVID-19 is still work in progress. But by way of the work done by organizations like STEPS, meaningful dialogue around the topic is being initiated. Pandemic or not, however, it’s all part of STEPS’ mission as an organization to help activate spaces for people and support the vibrancy and growth of communities through the use of art. In doing so, it’s helping to beautify our environment, stimulate our senses, connect people and raise engagement within neighbourhoods. In short, it’s raising the bar concerning what it means to be a community. Or, to borrow from the poetic wisdom of Gertrude Stein, The STEPS Initiative is simply realizing the function of art as a means by which life can be made better. And, according to Kane Speer, the organization doesn’t have any plans to halt the work it’s doing any time soon.

“Although most of our work to date has taken place in the Greater Toronto Area, STEPS has a national mandate. We’d like to support communities and facilitate more projects from coast-to-coast in Canada. This summer we supported initiatives in Victoria B.C. and Sydney, Nova Scotia, as well as a few places in between. Canadian public spaces have so much potential. And where we can, we want to continue connecting people, improving communities and fostering inclusiveness through arts and culture.”

Luxury Apparel Retail in Canada Expected to Slow Amid Pandemic: Expert

Handbags and clothes in a fashion store

The past five years have been a truly unprecedented period of growth for luxury apparel retailing in Canada resulting in Canada becoming a major worldwide market for luxury brands.

During the period, both the size of the Canadian luxury apparel market and the competitive intensity within the market has increased significantly, according to a new report by Trendex North America, a marketing research and consulting firm.

But the market has felt the negative impact of the COVID-19 crisis just like the rest of the retail industry this year.

First the good news. Trendex estimates that the sales of Canadian luxury apparel/leather goods in 2019 totaled $2.74 billion, an increase of 5.5 percent year-over-year. Luxury apparel/accessories accounted for 8.8 percent of total 2019 Canadian apparel sales.

And in 2019 luxury apparel e-commerce sales increased by 16 percent to $170 million. While e-commerce luxury store sales only accounted in 2019 for seven percent of Canadian luxury apparel sales, the channel has been growing at almost three times faster than the entire luxury apparel market.

But here’s the bad news because of COVID.

TRENDEX ESTIMATES A 16.8% DECREASE IN THE CANADIAN LUXURY APPAREL MARKET IN 2020

Trendex estimates that the Canadian luxury apparel market will decrease by 16.8 percent in 2020 and increase by only 1.6 percent from 2019 to 2023 to $2.8 billion. The decrease of the Canadian luxury apparel market will be driven in 2020 by a 17 percent decrease in luxury women’s apparel sales while men’s luxury apparel will decrease by 16.2 percent. Purse sales will decrease by 16.7 percent.

Randy Harris, president and owner of Trendex North America, said much of the luxury apparel market decline this year is due to the absolute shut down of retail for about three months.

“But it’s also due to the lack of tourists that are coming into the country. The borders have basically been sealed for over six months now. So those high-end tourists from Asia for example are just not shopping in luxury retail stores,” said Harris. “You also have a reticence on the part of consumers right now to just go out and shop because they’re not sure if there is a second wave coming around the corner or not. So there’s a reluctance among a log to people I think to make a purchase.

“The thing that helps the luxury retailers in Canada right now and why they’re surviving is they’re backed up by ‘daddy deep pockets’. In other words, there’s nobody behind a Reitmans, there’s nobody behind a Le Chateau. But when you’re talking about Gucci in Canada if business is bad, rents have to be paid, their parent will take care of that. I think that’s what you’re seeing. Yes they will get through it but their sales will reflect what’s going on in Europe and around the world with the luxury market but it might even be affected more in Canada because of the tremendous decrease in tourists coming in.

“It’s really a shame that the industry has grown, matured, expanded over the last three or four years and in a sense ready to bloom this year and then all of a sudden it got the rug pulled out from under it through no fault of its own.”

The Trendex report said the competitive intensity in the Canadian luxury apparel retail market over the next five years will continue to increase and will be driven by a number of developments including:

  • An increase in the number of luxury apparel retailer doors, both in A malls and on “High Streets”;
  • An increase in luxury apparel brand flagship stores on High Streets and in A malls;
  • An expansion of the traditional boundary for High Street areas in both Toronto and Montreal;
  • Increased presence of luxury apparel retailers in Canada’s better off-price malls (e.g. Toronto Premium Outlets);
  • Additional luxury mono apparel brand specialty retailers entering Canada for the first time;
  • Growth of luxury apparel e-commerce sales;
  • Luxury apparel mono brand apparel/accessories retailers upgrading/expanding the size of their existing Canadian stores;
  • Holt Renfrew expanding its “World of” concessions model, will in turn serve to reinforce its position as the premier Canadian luxury apparel retailer. Of all multi-brand luxury apparel retailers Holt Renfrew should gain the most share in 2020;
  • Multi-brand luxury apparel retailers will increase their collective market share at a rate faster than mono brand luxury retailers. This development will be driven by two factors. The first relates to consumers increasing preference to shop in multi-brand luxury apparel retailers that offer true omni-channel capabilities. The second factor is the increasing tendency of wholesale brands to take greater control of the distribution of their own brands. By cutting back or restructuring their distribution, luxury apparel brands become better positioned in Canada to control their pricing, marketing, etc.; and
  • Increasing use, at the expense of traditional print advertising, of social media, influencers and other forms of non-traditional marketing, including crowdsourcing and “pop-up” stores.

“Historically the Canadian luxury apparel/accessories market was underdeveloped. The degree of underdevelopment, lessened during 2017-2019 for numerous reasons including new foreign luxury retailers/brands entering Canada, Holt Renfrew stepping up its game, luxury e-commerce growing at double digit rates and luxury retailer construction exploding in Vancouver and Toronto. A concern however is that the “supply” of luxury retailers will increasingly exceed the demand (i.e. sales) for luxury apparel. A shake-out in the Canadian luxury apparel segment is inevitable, the question is when and where it will begin,” explained the report.

“The unknowns in the forecast of Canadian luxury apparel sales are whether there will be a major decrease in the number of Chinese tourists visiting Canada, whether Canada’s economy will slow, whether millennials will shun luxury apparel, and finally how long luxury apparel retailing will be directly affected by COVID-19. The greater the increase in foreign tourists, the more the demand line (i.e. sales) will be moved upward, in effect delaying when the shake-out in the Canadian luxury apparel segment will begin.”

Brief: Hudson’s Bay Receives Eviction Notices from Malls, Banana Republic Shutters on Bloor

Hudson’s Bay Receives Eviction Notices from Malls for Unpaid Rent

According to a French language report by Marie Eve Fournier in La Presse last week, the Hudson’s Bay Company has received eviction notices from three Cominar-owned malls in Quebec due to non-payment of rents. The Hudson’s Bay Company says that the move by landlords is a form of intimidation and ‘bad faith’ and that the retailer is looking to resolution.

Cominar REIT says in court filings that HBC hasn’t paid rent since April at Rockland Centre in Montreal (monthly rent $86,200), Mail Champlain in Brossard (rent $110,200/month) and at Centre Laval in Laval (rent $20,500/month). Notices of default were sent in June and notices of termination followed last month. In total, damages and unpaid rents claimed amount to $3.68 million for Rockland Centre, $26.95 million for Mail Champlain and $2.21 million for Centre Laval. All three stores in those malls are currently open.

HUDSON’S BAY STORE IN MAIL CHAMPLAIN. PHOTO: MAIL CHAMPLAIN

Another French language report last week in La Presse noted that landlord Oxford Properties is suing HBC for more than $2.29 million in unpaid rents at two shopping centres including Galeries de la Capitale in Quebec City (monthly rent of $220,000) and Promenades Gatineau near Ottawa ($145,900/month rent). The same report notes that HBC had not paid rents for eight of the 11 Oxford-owned malls in Canada containing Hudson’s Bay stores.

Employees from HBC’s offices in Brampton Ontario are being moved to offices in Toronto. The company notes that it’s part of a “new way of working” as the world shifts amid the COVID-19 pandemic.

We’ll continue to monitor the situation.

SHUTTERED BLOOR STREET BANANA REPUBLIC. PHOTO: CRAIG PATTERSON

Banana Republic Shutters Mink Mile Flagship After 25 Years

Gap-owned Banana Republic has shut its store at 80 Bloor Street West in Toronto. The store operated there since 1995 and was one of the first three Banana Republic stores to open in Canada (the first being at West Edmonton Mall and the other at CF Toronto Eaton Centre).

The Banana Republic store on Bloor spanned two levels and more than 6,000 square feet in a space that was once occupied by an Emporio Armani store (between 1990-95). Roots is the other retail tenant at 80 Bloor Street West, and Harry Rosen’s five-level flagship store is located adjacent at 82 Bloor Street West. A major proposal could see both 80 and 82 Bloor Street West demolished for a new mixed-use tower housing retail space as well as hundreds of residential condominium units.

The Gap has been quietly closing stores across Canada with a particular bright spot being Old Navy which has done well here.

Toronto’s prestigious Bloor Street West is seeing an unusually high number of vacancies, which shouldn’t be a surprise given the COVID-19 pandemic. A J. Crew store closed late last month and the beautiful Club Monaco building at 157 Bloor Street West is also on the market (the retailer has also been on Bloor for a quarter of a century). UK luxury brand Mulberry closed its store at The Colonnade at 131 Bloor Street West in the summer and several more retailers are said to be looking at pulling the plug on their Mink Mile operations. It’s not all bad news as brokers say there is interest and leasing activity in the area, which in November of 2019 saw Eataly open at the overhauled Manulife Centre.

LEE VALLEY TOOLS OTTAWA. PHOTO: LEE VALLEY TOOLS

Lee Valley Tools Launches Mobile Shopping Tool for Customer Safety

Ottawa-based retailer Lee Valley tools is innovating in the face of COVID-19 while restructuring its operations. This month the company launched a mobile shopping tool that integrates with its website allowing for mobile contactless shopping across Lee Valley’s 20 stores across Canada.

After the COVID-19 store shutdowns in the spring, Lee Valley Tools saw an opportunity to transition from express to curbside pick-up with the launch of the mobile app adding another level of safety to the in-store shopping experience. “The health and safety of our customers and staff is our number one priority and our new easy-to-use mobile feature provides another layer of protection while shopping in-store during these unprecedented times,” said Jason Tassé, Chief Operating Officer, Lee Valley Tools. “We’re thrilled to launch this mobile tool in all our stores across Canada to give our customers a user-friendly way of making the browsing and purchase process contactless.”

SCREENSHOT OF LEE VALLEY TOOLS WEBSITE.

The mobile feature was designed to be easy to use as customers don’t need to download it on their mobile device. Rather can visit LeeValley.com when they enter the physical store and click on the barcode icon, select their store location and start shopping. The online feature also allows customers to scan an item’s bar code and see a full description of every product offered by Lee Valley Tools before deciding to purchase.

The contactless shopping option is available at all 20 Lee Valley Tools store locations across Canada starting October 1 and is compatible on all mobile devices.

NEW DIESEL STOREFRONT AT YORKDALE SHOPPING CENTRE. PHOTO: NORMAN KATZ

Diesel Opens Yorkdale Storefront, Only Standalone Full-Priced Location in Canada

Italian clothing brand Diesel has opened a new storefront at Toronto’s Yorkdale Shopping Centre. It’s now the only standalone full-priced Diesel store in Canada after other locations have shuttered since last year. Diesel has had several different locations at Yorkdale since 2012.

The new 2,435 square foot Yorkdale Diesel features an LED facade that makes the store quite noticeable. The Diesel store is located between Innisfree and Oak + Fort in a retail space vacated by Reiss last year.

Diesel once had a bigger presence in Canada. Last year the brand shut several units including a flagship on Yorkville Avenue in Toronto as well as a large store on Rue de la Montagne in Montreal. Diesel still operates outlet stores in suburban Toronto and Montreal. The brand is also carried at multi-brand retailers in Canada such as Hudson’s Bay.

EXTERIOR OF FRANK AND OAK STORE. PHOTO: FRANK AND OAK

Frank And Oak Buyer Looks to Take Brand Global, Looks to Acquire Other Canadian Retailers

After filing for creditor protection in June, Montreal-based fashion retailer Frank And Oak was acquired this month by New York City-based Unified Commerce Group. In a paywalled report in the Globe & Mail on Sunday, information was provided by Unified about the future of Frank And Oak which currently operates nine stores after shutting 11 locations recently.

Many of the stores were reportedly unprofitable, as was the company which was saddled with pricey leases for some high-profile locations.

Frank And Oak started as an online men’s fashion business in 2012 and was funded by Hicham Ratnani and Ethan Song. Mr. Song resigned from the company in March of this year and Jeremy Brown, formerly CFO at Sephora, is now working with Mr. Ratnani during Frank And Oak’s transition.

An expansion into Europe and Asia is a possibility according to Unified Commerce Group co-founder and chief financial officer Greg Freihofner with China being a particular market of interest. It’s unclear if the expansion would involve physical stores or if the retailer would operate purely online.

Unified Commerce Group also said in the interview that it was looking at possibly buying other struggling Canadian retailers.

Oxford Properties Shopping Centres Partner with Food Banks Canada to Raise Funds to Help Alleviate Hunger

Yorkdale, Square One, Scarborough Town Centre, and Oxford Properties’ shopping centres across the country have launched the #PassThePlate2020 campaign in partnership with Food Banks Canada to help the organization reach its $150 million COVID-19 response fundraising goal to alleviate hunger in Canada.

As part of the effort to raise money for Food Banks Canada, the shopping centres have launched a social campaign encouraging Canadians to share a video or photo featuring a plate with the hashtag #PassThePlate2020. Oxford Properties will donate $5 for every post, equivalent to ten meals, to a maximum of $10K per shopping centre to Food Banks Canada. Canadian celebrities have shared videos of themselves passing the plate to launch the campaign and encourage Canadians to do the same.

“Food banks around the country have been seriously impacted by the pandemic, having to manage with fewer volunteers while adapting their operations and serving new clients affected by crisis,” says Bradley Jones, Head of Retail, Oxford Properties. “Our shopping centres play important roles in their communities, and we will use this reach to mobilize the wider community to take action against increasing food insecurity accelerated by the pandemic. Pass the Plate can inspire donations at a variety of levels as we partner with Food Banks Canada and work towards alleviating hunger.”

“We’re concerned for what’s ahead. The pandemic’s economic impact, especially as the income supports come to an end, will impact demand for food banks nationwide. With Oxford’s support we hope to increase awareness for our fundraising campaign and help deliver the nutritional support people need as we move into the holiday season,” said Chris Hatch, Chief Executive Officer, Food Banks Canada.

Food Banks Canada represents ten provincial associations, more than 700 affiliated food banks, and more than 3,000 community agencies. Oxford Properties’ commitment comes in response to Food Banks Canada’s “I ATE” campaign urging Canadians to make monetary donations with the goal of raising $150 million to help alleviate hunger in Canada. Food Banks Canada still needs more than $28 million to raise to meet this goal.

Additional ways to donate to Food Banks Canada include adding on a donation to a gift card purchased at any of Oxford’s GTA shopping centres, donating the balance of a gift card, or through a mobile device by scanning a QR code which will be posted throughout the centres. Oxford is committed to raising $175K in support of Food Banks Canada.

To donate or learn more about Oxford’s Pass The Plate campaign, please visit FoodBanksCanada.com

TORU AKITA

Question and Answer with Muji’s North American President Toru Akita

Retail Insider recently asked Muji’s North American President a few questions about the retailer’s Canadian operations. Muji opened its first store in Canada in Toronto in 2014 and the company now operates nine stores — five in the GTA and four in the Vancouver/Lower Mainland.

RI: How has MUJI been doing in Canada since it entered the country several years ago?

Toru Akita: Since opening the first MUJI store in Canada in November 2014, we have seen steady growth and developed a loyal customer base. We have since increased the number of stores in Canada to nine, across several provinces. We are grateful to our Canadian customers and supporters who have made this possible.

RI: Stores in BC and in downtown Toronto were expanded with a broader product assortment. Might we see more of the Ontario stores expanded as well?

Toru Akita: As we are able to expand the floor space in our stores, we can provide products and services closer to those offered in Japan–therefore we’re always thinking about which stores can be expanded and where we can offer more products. At the moment, we are considering the impact of COVID-19 on the lives of our communities, and any future expansions will have this in mind as we seek to become more useful to our customers.

MUJI STORE. PHOTO: MUJI

RI: In terms of product offerings, will we continue to see new categories in Canadian stores?

Toru Akita: We are constantly reviewing and reconsidering the products that we offer in each region, and will continue to introduce new products in our Canadian stores, especially in response to changes in changes in society and lifestyles after COVID-19. We want to create a store where all of the items necessary for life under this new normal are available in good quality and at a reasonable price.

RI: Is there a timeline for when Muji expands into the Alberta and possibly Quebec markets?

Toru Akita: We don’t have any plans to expand into these provinces for the time being.

RI: Might we see Muji grocery stores or hotels in Canada over the next decade?

Toru Akita: There are so many amazing MUJI services in Japan and elsewhere that have not yet been introduced to Canada, including grocery stores and hotels. Before we bring these major new categories to the Canadian market, we’ll need to do more work to understand how they could fit into the lifestyles, interests, and needs of Canadian consumers.

SCREENSHOT OF KING & BAY’S WEBSITE SHOWING VIROSHIELD MASKS.

King & Bay Innovate Once Again in the Face of COVID-19

Toronto-based retailer King & Bay have announced the launch of ViroShield, a face mask that protects 99.94% against COVID-19 with first-to-market technology.

The clothing company — which launched the charitable Mission2Mark program at the beginning of the COVID-19 pandemic — is once again on the frontline in the fight against COVID-19. The ViroShield face mask is unlike any other due to its three-layered design and the presence of the HealthGuard® AMIC coating — a specially formulated non-silver broad range Anti-Microbial and Anti-Viral formulated using cosmetic based chemistry which destroys SARS-CoV-2 – COVID-19 strain viruses — on its external layer. The under layers include a melt blown fabric and 100% cotton single jersey.

Other ViroShield face mask features:

• Anti-odour and hygienic

• Non-irritating with soft, lightweight, and breathable fabric

• Extra soft ear loop, minimizing pressure on the ear

• Durable to laundry wash without shrinking

King & Bay is distributing these masks in bulk, mainly for organizations (including retailers) to protect their employees at work. Organizations who are interested can contact King & Bay at MyKingandBay.com