Canadian spin studio SPINCO is innovating in the face of COVID-19 and amid nation-wide studio shutdowns.
The BC-based indoor ride studio has launched an at-home bike rental program and live streaming service for people self-isolating and missing their regular sweat sessions.
This Canadian small business didn’t waste any time in executing this initiative, taking less than a week to launch an entire digital streaming service and to sell out of all rental bikes in 11 SPINCO locations across the country.
PHOTOS: SPINCO
PHOTOS: SPINCO
On Friday, March 27, SPINCO opened applications for bike rentals — all to be returned when studios reopen in the future — and received 2,500 applicants within the first 3 hours, selling out all bikes in 11 locations in less than one day. Priced depending on the store location, bike rentals ranged from $150-$250 and provides the participant with the stationary bike for one month.
In addition, SPINCO also released a digital streaming platform for those who purchased a rental bike and for others who already have stationary bikes at home. A portion of the proceeds from this on demand subscription service will go towards supporting meals for first-responders on the front-lines of the COVID-19 pandemic.
The SPINCO streaming service offers access to 3 brand new spin classes every day and participants then have access to the growing bank of prerecorded classes at any time during the day. With fresh new classes and themed rides, long-time SPINCO community members can follow along with their local favourite instructors or discover amazing new instructors from different cities across Canada.
SPINCO says that it is dedicated to its loyal customers and know the importance of maintaining a fitness regime during this uncertain time. SPINCO on Demand is $29.99/month for participants using previously-owned stationary bikes. For those who have rented a SPINCO bike subscription is free.
SPINCO is a small female-run, business that started out of Kelowna, BC in 2014. Founded by Michelle August when she was just 22 years old, SPINCO offers structured, full-body spin classes designed to strengthen the body, energize the mind, and feed the soul.
Today there are 13 SPINCO locations across three different provinces — Ontario, British Columbia, and Nova Scotia. Cities that currently have SPINCO studios include Toronto, Oakville, Hamilton, Ottawa, Kelowna, Victoria, Westshore, Cloverdale, Halifax, and Bedford.
These are tough times for business owners due to the COVID-19 crisis. Experiencing substantial declines in sales or even a complete suspension of operations, they face cash-flow insolvency threats.
When sales drop, the cash wheel, whose function is to generate the required liquidity to operate the business, slows down or even comes to standstill. See below:
CASH FLOW WHEEL. IMAGE: MATTHÄUS TEKATHEN
The more sales drop, the more the inflow of operating cash dries up. If business owners cannot slow down, at a similar speed, what are known as cash outflows — payments for salaries, raw materials or merchandise, supplies, interest, rent and the like — eventually cash reserves and subsequently credit lines will be used up. A cash-flow insolvency ensues.
‘No Sales Without Costs’
Business owners know well: No sales without costs.
A retailer needs to purchase merchandise to sell it. That costs money. But unfortunately, the inverse — “no costs without sales” — usually does not hold. Why? For two reasons: fixed costs and a time delay.
Conceptually, there are variable and fixed costs. If sales drop, variable costs drop because lower sales volumes require, in total, fewer materials and labour and therefore fewer payments.
Yet fixed costs remain in place and are more difficult to alter in the short term. Business owners still need to pay rent, even for a closed store. Depending on the company’s cost structure, it will therefore have more or fewer possibilities to reduce cash outflows immediately.
Nonetheless, even variable costs will not disappear. Impacted business owners experience a sharp and rapid sales decline. But to offer goods for sale today, they must already have them in stock. There is a time lag: with payment terms of 30 days, say, last month’s bills must still be paid now and in the next few weeks.
Another large cost factor are labour costs. Wages need to be paid. Even with tough decisions to lay employees off quickly, two weeks of salary might still be owed. And at the end of the month or quarter, more bills come in.
As payments neither automatically nor immediately stop when sales stop, instant action is necessary to prevent cash-flow insolvencies. That’s why federal, provincialand local governments announced massive liquidity support for business owners.
What Else Can Business Owners Do?
The best scenario for business owners would be if sales returned soon, since they fuel the cash cycle. Wherever possible, business owners search for creative ways to compensate for sales declines by finding alternative sales channels, such as online sales or home delivery options.
However, in many cases the services or products offered don’t allow for this quick shift. And so, besides working on getting sales back, business owners need to flatten or reduce the cash-flow gap to buy themselves some time, as visualized below:
CASH FLOW SCENARIOS. IMAGE: MATTHÄUS TEKATHEN
The left side shows a simplified, healthy cash-flow state before the crisis. Cash comes in and out.
The middle illustrates the situation when the sales crisis hits. Cash inflow drops, and if cash outflow does not follow suit, we are in the cash-flow insolvency scenario.
To prevent this, business owners need to reduce the cash-flow gap as depicted on the right through measures that increase cash inflows or reduce cash outflows.
Closing the Cash-Flow Gap
That means collecting payments from customers faster, retrieving financial resources from banks, restocking the cash balance through proprietary capital or obtaining government aid.
Postponing the payment of bills, renegotiating payment terms with suppliers, asking for deferrals, halting discretionary spending, downsizing or even closing the business temporarily are some other measures that can lower cash outflows. But before taking those measures, a quick cash diagnosis helps.
The tool that provides clarity about a situation’s severity is the cash budget, and the indicator that alarms business owners is the cash survival ratio, also know as cash buffer days. It forecasts how many days the business can survive without injecting new cash:
THE CASH SURVIVAL RATIO. IMAGE: MATTHÄUS TEKATHEN
Because cash payouts aren’t evenly distributed from day to day, the cash budget is crucial to identify, proactively, cash bottlenecks before it is too late.
In the current context, modifying the cash budget’s structure, as shown below, makes improvements to increase the cash balance immediately visible. It’s a simple tool to help business owners navigate through the cash crisis by identifying, planning and forecasting their company’s immediate cash situation.
A MODIFIED CASH BUDGET. IMAGE: MATTHÄUS TEKATHEN
Overall, a company’s cost structure can accelerate cash flow troubles, and the time lag involved in adjusting outflows adds to the financial woes. Furthermore, while usually regarded as an inefficiency to be removed, having large cash buffers serves in these tough times as a valuable safety cushion.
This article was originally published by ‘The Conversation’. Click here to view the original article.
Matthäus Tekathen is Associate Professor in the Department of Accountancy at the John Molson School of Business, Concordia University. His research focuses on organisation’s risk management and management accounting and control.
An off-schedule podcast interview with Miya Knights, Head of Industry Insight, from Eagle Eye Solutions (responsible for the PC Optimum loyalty programs) about the recently published “Connected Consumer Report”. Ms. Knights discusses the report as well what is expected to change in the Canadian retail industry amid the recent COVID-19 pandemic.
The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players.
YORKDALE SHOPPING CENTRE. PHOTO: YORKDALE SHOPPING CENTRE
Executives with the International Council of Shopping Centers have sent letters to Prime Minister Justin Trudeau and Alberta Premier Jason Kenney urging swift government action to meet a growing crisis for the retail industry in this country.
“Your provincial retailers need assistance now from the provincial and municipal levels to help guarantee their survival and ensure there is a market left to serve the community post crisis,” wrote John Morrison, ICSC Vice Chairman, and Tom McGee, ICSC President & CEO, in a letter to Kenney.
“We believe that your government can be helpful in areas of corporate taxation, sales tax deferments as well as other areas under your jurisdiction. Municipalities can also play a major role in extending a lifeline to retailers by reducing utility rates, and local taxes during this difficult period. We would ask that your office reach out to municipalities in your province and ask them to support their local shopping centres and retailers and assist them in this time of need as we rebuild our communities and economic centres of life.”
PHOTO: MICHAEL KEHOE
In an interview with Retail Insider, Michael Kehoe, Lead Ambassador in Canada for the New-York based ICSC, said all levels of government across Canada need to recognize the retail real estate industry and the integral role it plays in the social, civic and economic vibrancy of communities across the country.
“Canadian shopping centres generate nearly $25.5 billion of taxes for all levels of government. Most retailers and shopping centres in Canada are not only engaged in a health crisis but a financial crisis as well forcing many to close and lay off their staff. 1.7 million Canadians are employed in shopping centres across the country. Retail and food service sales and the resulting income have stopped or been reduced but many of the expenses continue such as rent, utilities, payroll and payroll taxes, corporate taxes as well as payments to municipalities for property and business taxes,” said Kehoe, a veteran of more than 40 years in the industry and broker/owner of Fairfield Commercial Real Estate in Calgary.
“Nearly 70 per cent of shopping centre tenants are small businesses that employ less than 10 people and many retailers and restaurants across the country are concerned that they may not survive. Canadian consumer real estate landlords are assisting their tenants where possible but who is going to give relief to the landlords? Perhaps their banks or their lenders? Everyone in the transactional chain should be assisting to help each other at this critical time.
“They must work together in the short term to avoid jeopardizing the entire consumer real estate industry causing long-term damage, rampant unemployment and irreparable harm to the retail sector and communities across our country. Canadian retailers and restauranteurs need assistance now from the federal, provincial and municipal levels of government to help guarantee their survival and ensure there is a market left to serve the community post crisis.”
In the letter to Premier Kenney, the ICSC executives said many retailers are concerned they may not survive because of the bills they have to pay rent, utilities, payroll and payroll taxes, corporate taxes as well as payments to municipalities for property and business taxes.
CF PACIFIC CENTRE. PHOTO: CADILLAC FAIRVIEW
“This is a grave concern to ICSC as Canadian shopping centres and retailers provide needed employment and pay substantial taxes at all levels of government. Many landlords have already been able to assist their tenants, but others are unable to do so due to their own particular financial circumstances,” said the letter.
“Our collective action is required now. At ICSC, our mission is to ensure the retail real estate industry is broadly recognized for the integral role it plays in the social, civic and economic vibrancy of communities across the globe. Founded in 1957, today we are a 70,000-member network joined together in one vibrant global community.”
In the letter to the Prime Minister, the ICSC said the majority of the estimated $737 billion of consumer activity generated by the retail, food-and-beverage, entertainment and consumer service industries occurs within Canada’s shopping centres, with nearly one out of seven Canadian jobs retail related.
“The long-term strength of the shopping centre industry is critical to the economic, civic, and social viability of communities across the country,” it said.
CF CHINOOK CENTRE. PHOTO: CADILLAC FAIRVIEW
“Federal, provincial, and local government and health officials are implementing unprecedented steps to limit the risk of COVID-19 community spread. Canada’s shopping centre owners, developers, and tenants applaud the efforts that are taking place and stand ready to support the nation as we confront this public health crisis. Many of our member companies have already begun supporting local and national efforts with many more ready to assist immediately.
“The necessary public health and safety actions being taken have required retailers, restaurants, gyms, and other service providers to close. These closures are placing an insurmountable strain on our members, and we believe federal government action is urgently needed. In the most immediate term, we believe the federal government should guarantee or directly pay for business interruption coverage for retailers, restaurants and other tenants as well as landlords. This will allow these businesses to continue to pay their employees and suppliers.”
Without ensuring the stability of its tenant base, the repayment of secured and unsecured debt underlying the shopping centre industry will be at risk, said the letter.
“This will jeopardize the entire industry and cause long-term damage to financial markets, rampant unemployment and irreparable harm to communities across our country. As the ramifications of the crisis become clearer in the near term, the industry will require further federal support associated with outstanding debt obligations as well as tax and regulatory relief.”
The coronavirus pandemic is testing the retail industry in Canada like never before. With no end in sight, future sales are impossible to forecast, let alone the ability to fully evaluate the profound impact it will have on these businesses.
One of the most important steps touted in containing the spread of the virus here has been to follow social distancing guidelines, which require people stay a minimum of two metres/ six feet apart from one another.
For customer-facing jobs like retail in Canada, these new guidelines have forced them to rethink basic in-store procedures and the customer experience should the virus persist once retailers are given the green light to reopen their doors.
The likelihood of having to deal with an extended period of COVID-19 increases with each passing day. Alarmingly, the U.K. is predicting the health crisis to last until spring of 2021, a sentiment backed by the Centres for Disease Control and Prevention in the U.S.
That leaves retailers scrambling to find innovative solutions that will help them continue doing business during what is typically a slower summer season for the industry — all while doing their part in preventing the spread of the virus.
SCAN-AS-YOU-GO SYSTEM AT WALMART.
In Canada, retailers have been slowly adopting new in-store technologies that have transformed the way customers shop and go about their daily lives in other parts of the globe. It’s reasonable to see an immediate future where mobile technology can help combat the spread of the virus in stores right here in our own backyard. After all, the technology to do so already exists. Consider the following:
Retail giant Target in the US has been using beacon technology via its own app to track customers in-store in order to serve up product-related alerts and discounts based on their location. The retailer also uses it to help customers create shopping lists and direct their movements within the store based on their lists. Now with the very real threat of COVID-19, retailers could potentially use this highly accurate technology to emit warning signals should customers near six feet of one another.
Scan-as-you-go systems are already popular in Canadian retailers, where customers simply scan items, pay for their purchases and walk out the store without ever needing to see a cashier. In today’s climate, where cash payments are being banned and limits are being put on close human interaction, retailers can anticipate seeing more of this technology being introduced, along with self-checkouts.
In China, retailers have been using a combination of facial recognition with thermal detection cameras to help contain the spread of the coronavirus. Now, the companies behind facial recognition have upgraded the technology to identify people wearing masks.
Digital kiosks aren’t a new idea. They have been used by retailers widely to deliver everything from targeted ads and product information to instructional product demos. But imagine how effective these kiosks could be in adhering to social distancing guidelines by providing valuable in-store information that would typically be left to a retail associate.
As customers globally are becoming more accustomed to mobile and IoT-powered technologies in-store, Canadian retailers will also need to adapt to this “new normal”. Unsurprisingly, consumers worldwide have been demanding faster shopping experiences even prior to the emergence of the coronavirus, and they believe mobile technology is essential to this.
According to SOTI’s State of Mobility in Retail Report, 67.3 per cent of consumers believe mobile technology is the most effective way to deliver a faster shopping experience, while nearly one-third (32.6%) are unwilling to sacrifice personal data security to improve their in-store experience, underscoring the importance of secure mobile technology in this brave new world.
A POSTER SIMULATING FACIAL-RECOGNITION SOFTWARE AT THE SECURITY CHINA 2018 EXHIBITION ON PUBLIC SAFETY AND SECURITY IN BEIJING, CHINA.
Armed with these critical technologies, retailers can prepare for the future by addressing the health and safety of customers and employees, while discovering valuable ways to revolutionize the in-store experience for all.
ARDENE STORE AT THE CENTRE MALL, SASKATOON. PHOTO: THE CENTRE MALL
Montreal-based retailer Ardene has launched a donation campaign to support healthcare workers across the country in light of the ongoing COVID-19 pandemic.
The fashion retailer is sending women’s sneakers and socks in assorted sizes to hospitals, medical centres, and COVID-19 screening clinics across the country.
The need for new, unworn, sanitary garments continues to increase as hospital teams are required to change their shoes and socks multiple times a day to avoid contamination and to prevent the spread of the virus.
The Canadian fashion retailer has already donated over 7,000 pairs of sneakers and socks to hospitals across Quebec – including the Montreal General, the Royal Victoria, Hôpital Pierre-Boucher, and Hôpital de la Cité-de-la-Santé – but the company promises that this is only the beginning.
Post on Facebook
To assist Ardene in its fight against COVID-19, the brand is making a plea to Canadians for help in determining which hospitals are most in need of women’s sneakers and socks. Some areas are really struggling and Ardene wants to hear from those on the front line.
If you know of someone in need, please email donations@ardene.com with the following information:
Your Full Name
Your Phone Number
Hospital / Medical Centre
Shipping Address
The Number of Supplies Requested
Ardene’s campaign kicked off on social media on March 25th and is quickly gaining momentum with each passing day. Within the first 48 hours, the company received almost 50 requests from small and large organizations alike. “The need is real, and we’re here to support our healthcare community. If we can amplify our message, we can reach even more communities across the nation, and we can really make a difference.” says the Ardene Foundation. “Stores may be closed right now, but we are still proud members of this community. We will continue to do our best to support Canadians, especially those on the font lines risking their lives to keep us safe.”
In addition to donating sneakers and socks for healthcare workers, Ardene is set to donate new clothing to women’s shelters across Canada.
Additionally, for every purchase made on ardene.com during the COVID-19 crisis, Ardene will also give $1 to WE Well-being in support of youth mental and physical well-being education.
Founded in 1982, Ardene is known across North America for its affordable and trendy fast fashion. With over 325 stores in Canada, an expanding international presence, and a growing ecommerce business, the company is sure to weather this COVID-19 storm and is acting accordingly by offering aid to those less fortunate.
Through its dedicated charity organization, the Ardene Foundation, Ardene takes a collaborative approach to social responsibility. In 2019 alone, Ardene employees contributed over 1,500 paid volunteer hours to initiatives in their regions. Ardene has also donated over $4 million to hospitals across Canada through the Starlight Children’s Foundation and maintains a partnership with ME to WE that has made almost 90,000 positive impacts on families worldwide.
As Ardene continues to do its part to fight COVID-19 and to help flatten the curve, the retailer encourages its loyal customers to do the same; continue to self-isolate, be smart, and stay safe.
NORDSTROM AT CF TORONTO EATON CENTRE. PHOTO: DRI-DESIGN
After temporarily closing its stores in Canada and the US earlier this month, Seattle-based Nordstrom has quietly launched its Canadian Nordstrom.ca ecommerce website as part of an effort to grow its sales amid the COVID-19 pandemic. The new website features a vast assortment of product that includes notable luxury brands also carried at retailers in Canada that include Holt Renfrew, Harry Rosen, and Saks Fifth Avenue, which will lead to increased competition for online sales.
Nordstrom opened its first full-line Canadian store at CF Chinook Centre in Calgary in September of 2014, and subsequently opened five more stores in the Vancouver, Ottawa, and Toronto markets. The retailer also opened six Nordstrom Rack stores in Canada and a seventh was set to open near Vancouver in April. Nordstrom’s transactional ecommerce site comes more than five and a half years after entering the market and some analysts have criticized the retailer for taking so long.
We reported earlier this month that Nordstrom had shut all of its stores in Canada, including the six full-line stores as well as Nordstrom Rack locations. The closings had initially been planned for two weeks. Last week, Nordstrom announced that it was extending its closures for at least another week through April 5, though given the spread of the pandemic it’s unlikely that stores will open anytime soon.
SCREENSHOT OF NORDSTROM.CA
SCREENSHOT OF NORDSTROM.CA
Nordstrom is hoping that its new Canadian ecommerce site will give the company a boost of sales in Canada — its US site is said to be responsible for about a third of the company’s overall sales. The Canadian website is especially critical now that Nordstrom’s stores have closed. At the same time, online consumer spending in Canada is said to be substantially down as consumers take a wait-and-see approach to the situation. Job layoffs and stock market declines have led to a decrease in wealth for many households and as many are working from home and self-isolating, fashion purchases have also been put on hold.
Prior to the mass shutdown of stores in Canada, Nordstrom had planned to ramp up its market strategy with a focus on Toronto. Included would have been “shared inventory and access to services” such as alterations, express services, and same-day pickup or next-day delivery both at Nordstrom’s full-line stores as well as its Nordstrom Rack locations. “Order pickup is our most profitable transaction.
This represents a meaningful opportunity to increase convenience for customers during the holidays and at a lower cost for us,” said CEO Erik Nordstrom. The retailer expanded the market strategy last year into the New York, Los Angeles, San Francisco, Chicago, and Dallas markets with considerable success which led to plans to expand the initiative further into the Philadelphia, Washington D.C., Boston, Seattle, and Toronto markets. The 10 focused markets were said to account for more than half of the company’s sales.
NORDSTROM AT YORKDALE SHOPPING CENTRE. PHOTO: DRI-DESIGN
Nordstrom’s new Canadian ecommerce website features free standard shipping and returns, as well as duty-free purchases in Canadian currency. The website says that due to the increased order volumes and the impact of COVID-19, it may take longer than usual for orders to arrive. The website also states that store and curb-side pickup has been halted temporarily amid the pandemic.
Standard shipping on Nordstrom.ca is free for Canadians. For deliveries within two business days, a $20 charge is implemented and for next day deliveries, the cost is $28.
NORDSTROM AT CF CHINOOK CENTRE. PHOTO: CANADIAN BUSINESS
Nordstrom’s Canadian website features categories that include ‘Designer’, ‘Women’, ‘Men’, ‘Kids’, ‘Home’, and ‘Beauty & Fragrance’. The product assortment appears to be extensive. The women’s category includes clothing, footwear, accessories, beauty and fragrance, as well as designer fashions. The men’s offerings include clothing, shoes, accessories, designer goods, and grooming/cologne. The kid’s section of the website includes fashions for girls and boys such as clothing and footwear, as well as baby items and trams and other ‘essentials’. The home and gifts section of the website includes an offering of bedding, home decor, and items for the tabletop and kitchen.
The designer offerings on Nordstrom’s Canadian website are so expansive that it’s almost shocking. Thousands of items from many of the world’s leading luxury names are featured on the site such as Akris, Alexander McQueen, Balenciaga, Balmain, Brunello Cucinelli, Burberry, Chloé, Givenchy, Gucci, Loewe, Moncler, Oscar de la Renta, Thom Browne, Valentino, Versace, and many others. We compared prices to Holt Renfrew’s online shopping site and prices appear to be the same for the same products.
Nordstrom’s new Canadian website will thus compete with that of Holt Renfrew, which last year expanded its online designer offerings after considerable delay. Nordstrom will also compete in the menswear space with Harry Rosen, which has one of the country’s leading online transactional websites for a fashion retailer. Various other retailers including Hudson’s Bay and La Maison Simons also feature expansive online offerings for Canadian consumers. Many other retailers in Canada could see a dent in online sales if people gravitate to Nordstrom’s new Canadian ecommerce site.
NORDSTROM AT SHERWAY GARDENS. PHOTO: NORDSTROM
Saks Fifth Avenue, which opened its first Canadian stores in Toronto in February of 2016, hasn’t yet launched a dedicated Canadian ecommerce site. Canadians can purchase from the US website and have items shipped to Canada, though it appears that duties may have to be paid. There’s also a lag time in terms of receiving deliveries that could take as long as 12 days for standard shipping. The US Saks Fifth Avenue site has an expansive assortment of designer brands and categories that has made it popular south of the border.
Given the vast assortment of merchandise now on Nordstrom’s new Canadian ecommerce site, locals may choose to shop and have product delivered and, at some point in the future, may choose to pick up purchases in stores. This could lead to an enhanced relevancy for the Nordstrom brand in Canada that could result in a symbiotic relationship that could boost sales both in its stores (when they reopen) as well as online.
That boost could give Nordstrom an increased competitive advantage in the Canadian market amid a rivalry from major players such as Hudson’s Bay, Holt Renfrew, Harry Rosen, and others, further increasing competition at a challenging time in the industry generally.
The Reckless Bike Stores in the Vancouver area have seen an uptick in demand amid the COVID-19 (coronavirus) outbreak as more people are looking at using bicycles as their chosen mode of transportation.
Paul Dragan, the self-described “Big Wheel” at Reckless, said the trend is taking place for two reasons – people are afraid of catching the coronavirus so they are avoiding public transit and others look at it as a cost-saving device in these challenging economic times.
“We’re busy in Vancouver with repairs and lower-end bike sales,” he said. “Repairs are obvious in the sense that ‘I don’t want to ride the bus’ or ‘this is the only exercise I’m going to get for a while. I better get my bike working’.
“We’re as busy as we would normally be because of that. We’re selling used bikes and entry-level bikes. So anything under about $800. We’re selling an inexpensive transportation option. Then we’re selling entry level bikes, new ones, between $500 and $800. That seems to be the shopper.”
PHOTO: VANCOUVER COURIER
Also, window shoppers who were intending to come into the shop this Spring to look for a bike this year may have a new sense of urgency not knowing what the supply of bikes will look like in the coming weeks.
“You may want to think about getting one because we could be shut down any day as well,” said Dragan.
“We think we tick about three boxes here. Number one is safer transportation. Number two is some physical exercise. And number three is some mental relief - some mental health. I need to get out of my condo and I’m not calling my buddies but I can at least go for a bike ride on my own and if I need to stay away from more popular places I have a bike to take me there.”
The company’s suppliers are open right now in shipping. Two of them are based in Montreal and one is based in Vancouver.
“They’re all working behind the scenes to see if they can make a bike shop designated as an essential service. Something like a car repair place. So car dealers may not be open but car repair guys seem to be moving in that direction,” he said.
“Whatever tourist business we had is now gone. We would rent a pair of bikes or four bikes to people visiting well that’s all dried up.”
The first store opened in 1986 as Reckless Rider Cyclery in Kitsilano and the company, which was renamed to Reckless Bike Stores, today has four locations.
Dragan created the house brand RekTek to manufacture in-house bicycles in 1987. The name of the retailer changed to Reckless Bike Stores in 1993.
Dragan opened a seasonal store on the North Shore in 1998 and expanded to Yaletown in 2000 and into Victoria in 2002 with two stores. But the company closed its Victoria operations in 2010.
A Reckless Electric store opened in downtown Vancouver in 2014 and last fall Reckless Shipyards opened in Lower Lonsdale, North Vancouver.
Dragan said the demographic of the average customer is in the plus 40-year-old age bracket.
“We’re telling people you better fix your bike today, you better come back and get it today because we don’t know if we’ll be here tomorrow to get it to you. We don’t allow people in our store. We have a number of hand pumps that we’ve put on the sidewalk so people can come up and use them themselves. I would say half our traffic is people dusting off a bike out of wherever and it needs air. We’ve always offered free or no charge air and it’s something we promoted heavily for years, and years and years.
“Now we’re doing that on the sidewalk. We’re leaving a can of oil and a rag there so people can self-serve on their own at no charge. We just want to help you go through this a little better.”
On April 2nd, at 11:00 am Pacific/2:00pm Eastern, Kline and his co-hosts will negotiate and attempt to navigate the topic of lease clauses and legal theories that are applicable during an unprecedented pandemic. [Register Here]
Lease Clauses and Legal Theories Applicable in a Coronavirus World Webinar is once again free and will focus on taking a deeper dive into commercial lease clauses that may provide some tenant relief or otherwise obligate the landlord to make certain accommodations. Some of those clauses that will be discussed include:
1. Force Majeure
2. Eminent Domain
3. Condemnation
4. Quiet Use & Enjoyment
5. Legal concepts, including:
a) Impossibility of Performance
b) Impracticability of Performance or Frustration of Purposes
COVID-19 has called into question many aspects of contractual relationships between tenants and landlords. As both parties attempt to navigate their next steps, it is certain that there will be many grey areas as landlords seek to minimize exposure and insure the maximum revenue from their property, while tenants attempt to merely stay afloat.
Due to an outstanding registration and attendance for the first webinar, which broke all previous records, it is clear that people are anxious for some kind of guidance during this increasingly uncertain economic situation.
Kline will be joined by other industry experts to discuss the pending issues. Guest speakers will be announced shortly.
Montreal: Heyday—a leading AI-powered chat solution specialized in retail and ecommerce—is taking action amid the crisis. The Canadian AI company is rolling out a free program to help small and mid-sized brick-and-mortar retailers weather the storm.
As consumers desert streets and malls to make ecommerce sites their primary shopping destination, there’s immense operational and financial stress put on local retailers.
With what the company dubbed their “Retail Relief” program, Heyday will now offer local retailers their entry-level chat solution free of charge for the next three months. The offer includes a free chat widget and messaging app to connect their sales force with online shoppers and enable them to sell remotely. All in a bid to boost e-commerce sales and reduce the impact of the crisis on their bottom line.
Combating the impact of social distancing on commerce
Heyday’s solution was designed to help brick-and-mortar retailers replicate their in-store experience online. This (virtual) human touch is that much more valuable in our current climate of social distancing and global health emergency restrictions.
“We’re all in this together. The entire economy from top to bottom is being disrupted by the coronavirus crisis. At Heyday, we felt like we had to do our part by offering our technology for free to help retailers repurpose their workforce, save jobs and unlock new sources of revenue online.” says Steve Desjarlais, Heyday’s co-founder & Chief Executive Officer.
Helping SMBs survive and thrive amid the crisis
Heyday’s retail client roster includes Fortune 500 brands like LVMH, Decathlon, and Danone as well as local Canadian retailers like DAVIDsTEA, Mobilia, TA Appliance, Oberson, and many more.
In this time of crisis, the company wants to democratize a subset of its advanced chat solution by offering it free of charge to small and mid-sized brick-and-mortar retailers who are the most at risk of financial disruption.
“In this time of uncertainty and volatility, we want to do what we can to support the backbone of our economy: The mom-and-pop shops and local retail store chains who will be hit the hardest by a potential global slowdown,” adds Etienne Mérineau, Heyday’s co-founder and Chief Marketing Officer.
The company’s “Retail Relief” program is available now to all Canadian small and mid-sized retailers.
Heyday is a world-leading customer messaging platform for retailers. Our AI-powered hybrid chat solution combines the scalability and efficiency of AI with the expertise and human touch of sales and support teams to deliver a more personalized and delightful online shopping experience. Heyday seamlessly integrates with ecommerce platforms like Shopify, Salesforce, Magento, and Prestashop and messaging apps like Facebook Messenger and Google Business Messaging to help retailers manage all their customer conversations under one roof. High-profile clients include European sportswear giant Decathlon, LVMH-owned beauty icon MAKE UP FOR EVER, Canadian tea store pioneer DAVIDsTEA, French dairy food conglomerate Danone and Canadian telco titan Bell.
