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Worker Shortage or Poor Work Conditions? Here’s What’s Really Vexing Canadian Restaurants

By Bruce McAdams, Associate Professor at University of Guelph and Rebecca Gordon, Graduate Student at University of Guelph.

Restaurant operators across Canada are struggling to find enough staff to run their operations. This labour crisis has been highly publicized by Canadian media as a “labour shortage.”

A recent survey by Restaurants Canada found that 80 per cent of food service operators were finding it difficult to hire kitchen staff and 67 per cent were having trouble filling serving, bar-tending and hosting positions.

Prior to the pandemic, Canada’s food service sector employed 1.2 million people, and according to Statistics Canada it currently needs to fill 130,000 positions to reach pre-pandemic levels. That said, the Canadian restaurant industry has been struggling with hiring and retention problems for many years.

Should the chronic hiring struggles of Canadian restaurants be referred to as a labour shortage, or can it be more accurately portrayed as a retention issue fuelled by a lack of decent work? Does the use of the term labour shortage take the onus off of restaurant operators for creating these shortages, and instead place it on Canadian job-seekers?

First job for many Canadians

A 2010 Canadian Restaurant and Foodservice Association report found that 22 per cent of Canadians worked in a restaurant as their first job — the highest of any industry. The study also found that 32 per cent of Canadians have at one point worked in the restaurant industry.

These statistics show that millions of Canadians have been introduced to restaurant work and the industry has enjoyed a seemingly endless supply of labour for decades. So why is it that the restaurant industry is burning through so many people?

Our research on restaurant work conditions shows that working in a restaurant is difficult, requiring the sacrifice of work-life balance due to long hours and unpredictable schedules. While restaurant work can be rewarding and fun, it can also be low-paying, stressful and physically demanding, all of which can have a negative impact on mental health.

A waiter wearing protective equipment collects the bill at a restaurant in Saint-Sauveur, Que. THE CANADIAN PRESS/Ryan Remiorz

Many restaurant workers spend at least eight hours a day on their feet with no time for breaks or meals. Workers are also required to forgo their social and family life by having to work late nights, weekends and holidays.

Many restaurant workers almost never know precisely when their shifts will end, and tend to be placed on unpredictable split shifts or “on call” shifts to save labour costs.

Toxic work environment

The restaurant industry has also been rampant with sexual harassment, abuse and toxic work environments.

A Statistics Canada study found that hospitality workers have the worst job quality out of any industry. This was largely due to low earnings, the inability to take time off, no paid sick leave, a lack of training opportunities and no supplemental medical and dental care.

This same study found that 67 per cent of hospitality workers work in jobs with work conditions that fall below decent work levels.

So what exactly is “decent work?” It’s a concept established by the International Labour Organization and is linked to the United Nation’s Sustainable Development Goals. Decent work establishes universal conditions of work that are central to the well-being of workers.

These conditions are considered to be minimum labour standards that include living wages, work hours that allow for free time and rest, safe working environments and access to health care. Decent work is considered a human right but based on the conditions of restaurant work, it appears the Canadian restaurant industry is struggling to provide it to all of its employees.

Bartenders and wait staff wait for the lunch hour rush as patrons sit on the patio of a Toronto restaurant. THE CANADIAN PRESS/Nathan Denette

Exodus of workers from the industry

Through our research on restaurant work, and via conversations with many restaurant employees across the country, we’ve learned that many are fleeing the industry because the work is a grind. What’s more, they don’t see any future in a job that will continue to hinder their well-being.

The pandemic allowed workers time to find jobs in other industries that provide more stability and feature regular work schedules, vacation time, higher pay and benefits.

These workers often felt neglected, and that their employers did not believe they were worth investing in.

While there are certainly good restaurant employers, the industry as a whole has failed to improve working conditions because historically, there were always new people to fill roles.

That raises the question: Could the continuous reference to a labour shortage in the restaurant industry actually be creating a lack of urgency in addressing longstanding issues of work quality?

A waitress serves patrons at a restaurant in Carstairs, Alta. . THE CANADIAN PRESS/Jeff McIntosh

If restaurants want to operate at full staff in the post-pandemic future, they need to invest in their employees because, after all, it’s impossible to run a restaurant without people working in it.

The restaurant industry has always spent money, time and resources to attract customers and increase revenues. It’s long past time for restaurant operators to consider their employees internal customers, and put as much effort into providing great experiences for them as they do for their external customers.

A good place for operators to start is by providing decent and dignified work for all that provides decent wages, benefits and healthy working conditions.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

By Bruce McAdams, Associate Professor at University of Guelph and Rebecca Gordon, Graduate Student at University of Guelph.

Related Retail Insider Articles

The Conversation

The Bay Continues Innovating as it Partners with Pinterest to Create Digital Lookbook

The Bay x Pinterest

Toronto-based department store retailer Hudson’s Bay’s online division The Bay is collaborating with San Francisco-based social media technology innovator Pinterest in a strategic partnership.

In a first-of-its-kind bilingual digital platform, the experience will include “Pinnable” products curated through trends. Consumers are able to build shoppable boards based on atmospheres and departments, including Kitchen Essentials, Bedding and Furniture. The boards will lead shoppers to thebay.com to complete the purchase.

Martin Svensson

“On Pinterest, we know what trends are about to take off because people come to Pinterest in the early planning stages of the shopping journey,” shares Martin Svensson, Retail Head of Industry, Pinterest.

“97% of top searches on Pinterest are unbranded, which is why Pinterest is such an effective place to reach people when Pinners are actively looking for inspiration. Working with The Bay to reach customers at the initial stages of the design journey was an important aspect in building a valuable resource for shoppers.”

“The Bay is helping Canadians shop for their home with simplicity and confidence,” Allison Litzinger, Vice President of Brand, The Bay. “With this digital lookbook, customers have the ability to discover trends and envision their spaces with quality products, and take the leap from ideation to reality seamlessly.

Allison Litzinger
Allison Litzinger

“This collaboration with Pinterest is reflective of The Bay’s digital-first innovation and how we are elevating the online shopping experience, bringing colourful, attainable luxury into the homes of Canadians.”

Hudson’s Bay operates 86 full-line locations and The Bay operates thebay.com, featuring Marketplace. The e-commerce business is the 6th largest in Canada. Both The Bay and Hudson’s Bay are under the HBC brand portfolio.

Pinterest is a visual discovery engine with over 300 billion Pins saved worldwide, with interests ranging from home renovation, travel, food and retail. The tech company recently announced that they had secured three floors at 85 Richmond St. West in downtown Toronto for the Pinterest Canada head office.

Volvo Partners with Vancouver-Based Casca Footwear on Limited Edition Sneaker

Volvo Cars Canada and Casca Footwear take steps toward a sustainable future with an inspired shoe (CNW Group/Volvo Car Canada Ltd.)

Volvo Cars Canada and Vancouver-based Casca footwear have launched a limited-edition sneaker in support for World Car Free Day. The collaboration is said to be intended to help people live a more sustainable life and move fluidly between driving and walking. 

As part of the campaign, Volvo Cars said that it recognizes that it is critical to do what the company can to be part of the solution to protect the planet, whether it’s taking the small step to encourage Canadians to walk or cycle on World Car Free day or drive an electric or plug-in hybrid vehicle to reduce carbon emission.

The launch on September 22 coincides with World Car Free Day. The shoe will be available to Canadians for purchase ($198 CAD) at https://ca.casca.com/pages/volvoxcasca on that day. The design is inspired by the pure electric Volvo XC40 Recharge. 

“We’re excited to team up with Casca footwear who share similar values and combine our passions for sustainability, technology, and understated modern design,” said Matt Girgis, managing director of Volvo Car Canada Ltd. “At Volvo Cars, we are committed to setting the highest standards of sustainability in mobility and that goes beyond electrifying our fleet to transforming all aspects of our business. The shoe we have created with Casca in celebration of World Car Free Day, is one way to recognize the many steps we are taking on our journey to climate neutrality.”

Volvo Cars Canada and Casca Footwear take steps toward a sustainable future with an inspired shoe (CNW Group/Volvo Car Canada Ltd.)

Unique features of the new shoe include: 

The sole – 10% of each sole is made from recycled car tire, the first time this material has ever been used in a Casca shoe as part of an intentional repurposing and recycling of materials.

The upper – Seven recycled plastic bottles are used to make the yarn for each breathable, flexible knit upper.

Heritage – The Swedish flag is represented on one shoe tag, while the classic Casca yellow can be seen on the other, honouring the collaboration between the two brands as well as minimalist, Scandinavian design.

Influences – The Thor hammer headlight influence can be seen in the linework and paneling, delivering a more performance-inspired aesthetic to Casca’s popular Avro silhouette.

Both companies noted similarities which lead to the partnership including: 

Using Recycled Materials: Volvo Cars says that it aims to increase the share of recycled and bio-based materials in their vehicles by 2025. And by 2022 Casca says that it has committed to their knit uppers being made from recycled or renewable materials.

Having Ethical Production: Volvo Cars says that it aims to be a recognized leader in ethical and responsible business as the first car manufacturer to use blockchain technology. Casca says that it is committed to ethical manufacturing of its shoes, ensuring employees are paid a set living wage and personally visit every factory they work with to ensure high ethical standards.

Being Energy Efficient: Volvo Cars’ global plants are powered by over 80% climate-neutral electricity. Casca leather treatments are water-based, cured with low-energy UV, and leather sludge waste is reduced by 95% and recycles 70% of water on-site with a state-of-the-art treatment facility.

Uniqlo to Double Montreal Store Count in 2022 Despite the Pandemic

Uniqlo store

Japanese fashion retailer Uniqlo announced this week that it will double its store count in the Montreal area by opening two new locations in the spring of 2022. The new stores follow the opening of Canada’s largest Uniqlo store in downtown Montreal last year as well as a second suburban location in Laval. 

The two newest Montreal area Uniqlo stores will be located at CF Fairview Pointe-Claire and at CF Promenades St. Bruno. CF Fairview Pointe-Clair is on the western part of the Island of Montreal and is considered to be one of the region’s top shopping centres with over a million square feet of space and about 175 stores. CF Promenades St. Bruno is a highly productive shopping centre in the Montreal suburb of St. Bruno with 1.186 million square feet of space and almost 230 stores. 

At both malls, Uniqlo will compete with a range of retailers in the fast-fashion and value-priced space. Common tenants to both shopping centres that will compete with Uniqlo include H&M, the Gap, Zara and other retailers at a similar price point. Uniqlo will also compete with some of the in-house brands at large-format retailer La Maison Simons which currently operates in St. Bruno and will be opening a location at CF Fairview Pointe-Claire next year. 

The opening announcement coincides with Uniqlo’s beginning to recruit staff for the two new stores. The endeavour may be a challenge as the job market in the Montreal market is tight with recruiter Suzanne Sears saying that there are more jobs than applicants.

Exterior of Uniqlo store. Photo: Uniqlo
Exterior of Uniqlo store. Photo: Uniqlo

Uniqlo’s expansion in the Montreal market signals confidence in brick-and-mortar retail at a time when e-commerce has been exploding over the course of the pandemic. Brokers and landlords are saying that many retailers and food-related businesses are in the process of expanding while looking to a future without pandemic restrictions. 

Jeff Berkowitz of Aurora Realty Consultants represents Uniqlo as broker in Canada and has negotiated all of Uniqlo’s store leases in Canada.

Uniqlo’s first store in Montreal opened in October of 2020 in the city’s downtown core at the Montreal Eaton Centre. It remains the largest Uniqlo location in Canada with over 40,000 square feet of leased space facing Ste-Catherine Street. In March of this year, a second smaller suburban Montreal Uniqlo store opened at CF Carrefour Laval north of the city. 

Uniqlo entered the Canadian market in September of 2016 when it opened a flagship store at CF Toronto Eaton Centre in Toronto. A second Toronto flagship opened a month later at the Yorkdale Shopping Centre. Uniqlo now has seven stores in the Greater Toronto Area with other locations being at Square One in Mississauga, Vaughan Mills north of Toronto, CF Markvile in Markham, Upper Canada Mall in Newmarket, and at Oshawa Centre in Oshawa. 

Uniqlo Hiring Sign at CF Toronto Eaton Centre
Uniqlo Hiring Sign at CF Toronto Eaton Centre – Photo by Dustin Fuhs

Uniqlo’s first store on the West Coast opened at Metropolis at Metrotown in Burnaby in October of 2017, and subsequently opened locations at CF Richmond Centre in Richmond, Coquitlam Centre in Coquitlam, and Guildford Town Centre in Surrey. 

In Alberta, Uniqlo opened its first store in the province in the fall of 2019 at West Edmonton Mall in Edmonton. It remains the only location for the retailer in Alberta and more are expected both in the Edmonton and Calgary markets. 

Uniqlo is also absent from downtown Vancouver and a store is expected there. Other Uniqlo store locations are expected to open in major markets in Canada as the retailer continues to seek to grow market share. 

Uniqlo is owned by Fast Retailing Co. Ltd. which is one of the world’s largest fashion retailers. Worldwide sales ending August 2020 were USD $19.06 billion. Uniqlo operates store locations globally. 

Last month, Uniqlo shocked many when it announced that it was shutting its store at 830 North Michigan Avenue in Chicago. The 60,000 square foot retail space on the struggling ‘Magnificent Mile’ is in a building that was occupied by luxury department store retailer Bonwit Teller from 1949 to 1970 and then I.magnin until the early 1990s.

Italian Artisanal Coffee Café Concept from Florence to Expand into Canada with 1st Location Opening Spring 2022 and More Planned [Exclusive]

Rendering: Ditta Artigianale

Ditta Artigianale, Italy’s preeminent artisanal coffee roaster, is expanding its footprint from three stores in Florence to add its first North American location in Toronto.

The Toronto flagship location will be opening in the Garment District at Richmond Street West and Bathurst Street West – which has seen huge development in the past five years with more to come.

francesco sanapo
Francesco Sanapo

The brand was founded in 2013 by Francesco Sanapo, a world-renowned barista and roaster, and Patrick Hoffer.

“Opening Ditta in Toronto is a dream come true for me. When I created the Ditta Artigianale concept, I always thought it would become an international company featuring a fine Italian touch and showing the world a new wave of Italian coffee. This is a big opportunity for me, for Ditta, for Italy, showing and sharing the high quality of Italian specialty coffee. I cannot wait to serve Ditta’s coffee to the people of Toronto,” said Sanapo, who is the company’s CEO.

“You can’t imagine how excited I am to spread my coffee in Canada, in Toronto.”

The new cafe will be located on the ground floor of The Harlowe condominium apartment building and will be open for coffee, pastry, brunch and signature cocktails in the evening.

Image: Ditta Artigianale

And the company plans to open new locations in Canada and the United States in the future.

You could say coffee is in Sanapo’s blood. He is the personification of coffee, winning Italy’s best roaster in 2019 and twice being a finalist in the World Barista Championship. His love has spread to the current staff who have won four Italian barista championships.

Staff from Toronto will have the opportunity to train in Florence to ensure the same rules and protocols are followed across the pond making for an experience equal in quality.

The new cafe will open its doors in the spring of 2022 and aside from being open during the day for coffee and brunch fare it will also radiate at night as a slick cocktail bar featuring Peter in Florence, Italy’s first Tuscan-made artisanal gin founded by Ditta’s co-founder Hoffer.

The Harlow (Rendering: LAMB DEV. CORP)
Alexander Zeleniuch

Alexander  Zelenuich, the company’s Chief Operating Officer, said the company has built a really strong base in Florence and pre-COVID Florence was hopping with tourists and students – a big part of the customer base – with many of them from North America.

“In Canada and the USA, it’s common to go to a coffee shop and work and socialize, hang out. That didn’t exist in Florence and was very rare in Italy. And so that’s why we had so much success here,” he said. “What we realized is that there would probably be demand for this kind of model outside of Italy, especially if we hit the Italian notes just right. So we keep it within specialty coffee but with an Italian touch.

“One of the major points that makes us unique compared to some of the other peers out there in the field is we also have a sister company if you will that’s a separate company but it’s a gin company, and it’s an artisanal gin company called Peter in Florence and it’s produced 30 minutes outside of Florence. We grow 10 out of the 14 botanicals that we use to distil the gin.

“And what makes Ditta really special is that given we’re paying rent 24 hours a day most coffee shops close at 5 or 6 and that’s it. They just do coffee, maybe some light bites. We said well we have this gin company, why don’t we turn it into an aperitivo bar. We don’t need to stay open all night. We don’t need to do dinner service. But let’s keep the same quality we have for coffee and apply it to cocktails. When I joined I thought something like this would drive in North America. It’s logical to move there because there’s demand for specialty coffee, there’s demand for craft cocktails and it’s all with a very Italian soul and Francesco is the heartbeat behind that soul.”

Zelenuich said the company’s expansion plans are quite ambitious to scale in the next few years. There is still room for growth in Florence. Then from there it’s focused on Toronto to open a few more there and in Canada.

Ayana Miller, operating partner of Ditta Artigianale Canada, said the company is looking at about five locations in the GTA first, mirroring the same strategy as what it has done in Italy with Florence as the base.

“Really building momentum in a certain area and creating the foundation that’s very strong and then expanding outwardly in Canada as well. There is also plans of opening a location in Los Gatos, California too, right in the Silicon Valley, which is also known for its love of coffee,” said Miller.

Ditta Artigianale – Via Carducci

“What brings that unique twist to Ditta is that it has that Italian soul even if you look at the design of everything, the intention behind everything. This special vibe, this dolce vita, that Ditta Artigianale holds has spoken to so many that we have an association with the luxury brands such as Dolce & Gabbana and Brunello Cucinelli in terms of the Peter in Florence gin.”

Ditta brings high quality coffees to Italy and the world with a focus on total transparency and sustainability throughout the supply chain. The brand’s philosophy is based on researching the most exclusive micro-lots, establishing direct relationships with producers and engaging in special roasting techniques to give consumers a unique, quality-orientated experience, said the company.

The company said the concept was inspired by the third wave roaster movement, displaying coffee as another example of exquisite Italian craftmanship.

“I want to protect my company to grow up in a really good way, in a healthy way. That’s the reason why we haven’t opened up yet in Milano or in Rome,” said Sanapo. “Just because I’m protecting the growth of my company.

“As a coffee lover, more than expert, more than everything, what I want to keep always on my way to spread out coffee is every coffee I serve I want to make richness. This can appear in very simple things, but that doesn’t happen very often. I spend part of my life travelling to find the best coffee.”

Jackson Turner of CBRE negotiated the Ditta Artigianale lease deal on behalf of the brand.

Inside Ren’s Pets New Store in Liberty Village [Photos]

Ren's Pets at Liberty Village Grand Opening (Photo: Ren's Pets)

Ontario-based specialty pet retailer Ren’s Pets has opened its newest location in Toronto’s Liberty Village area, with more openings on the docket for the near future.

Liberty Village marks the 36th store in the chain, which was recently acquired by Quebec-based Legault Group. Legault also owns the Mondou chain of stores which is based entirely in Quebec.

Retail Insider was in attendance of the grand opening of the new store at 99 Atlantic Avenue this month. The event included representatives from Ren’s Pets, the Legault Group, in addition to a number of national suppliers and industry partners.

Ren's Pets at Liberty Village
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)

“The urban concept is very exciting for Ren’s,” said Larissa Wasyliw, VP Ecommerce & Marketing at Ren’s Pets. “It allows us to introduce a smaller footprint store into more densely populated markets where there is a big pet community, leveraging our ecommerce capabilities.”

“Our plan is to expand our network of urban concept stores across Toronto, with Liberty Village being the first. Already, it’s off to a very successful start with pet parents and their pets visiting the store for their food, treats, toys, and more. We’ve added special products like strollers that are geared towards a more city-type customer, which have been a hit in the first week of business. We also have ipads set up for order to home, along with a big click n collect pick up section to make it easy for customers to pick up online orders.”

Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)

With Ren’s Pets being acquired earlier in 2021 by the Legault Group, the short term plans are still being finalized and adapted.

“The transaction is still quite new, and the opportunities are still developing for next year as we settle into our partnership,” Wasyliw said. “However, we know Groupe Legault will allow us continue the success of the brand that we’ve been cultivating for over 40 years.”

“While Ren’s and Mondou will continue to run as separate brands, there will be a high level of collaboration to share best practices between the two groups. Groupe Legault’s support will allow Ren’s to remain flexible, agile, and pursue an even faster growth strategy.”

CEO Scott Arsenault brought the focus of the event to the team many times during the opening remarks. The ability to expand during a pandemic; staffing, procurement of product and securing a long-lasting supply chain, and creating a neighbourhood experience with the backing of a supportive ownership group.

When we asked about what ‘teamwork’ means to the goals of the brand, Wasyliw said that the growth potential doesn’t stop on motivational signage.

“The sky is the limit! We’re really looking forward to Groupe Legault building a Canadian pet powerhouse in retail with their family of brands, including Ren’s Pets and Mondou. We know they support our vision of growing the Ren’s brand through stores and ecommerce, to be the premier specialty pet retailer and dominate the category. We share common values, which benefits both the business and also pet parents.”

“Ren’s will continue to be a high growth, innovative pet supply company providing premium food, treats, and toys for your pet’s best life. Our goal is to continue to build stores, develop our ecommerce business, and serve pet parents so their pets have happy, healthy lives.”

Photos from Ren’s Pets at Liberty Village

Ren's Pets at Liberty Village
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets Click and Collect at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village Grand Opening (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren's Pets at Liberty Village
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets Gift Cards at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren's Pets at Liberty Village
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren's Pets at Liberty Village
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren's Pets at Liberty Village
Ren’s Pets Online Ordering at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets Grand Opening Deals at Liberty Village (Photo by Dustin Fuhs)
Ren's Pets Lawn Sign at Liberty Village
Ren’s Pets Lawn Sign at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets Halloween Costumes at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren's Pets Referral Program at Liberty Village
Ren’s Pets Referral Program at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)
Ren’s Pets at Liberty Village (Photo by Dustin Fuhs)

Apple’s Questionable Trade-In Program Values

Apple Trade In Program
Apple Trade In Program. Photo: Apple Website

California-based Apple Inc. held its annual fall Apple event announcement last Tuesday showcasing new iPhones, the next Apple Watch and new iPad variants. Amongst its offerings and services was the promotion of the “Apple Trade In” program.

The Apple Trade In process involves 1) evaluating your current device to determine the value, 2) providing it to Apple (or its partner which it has been outsourced to, and 3) get a credit of the value. If your trade-in is worth more than the new device you are purchasing, Apple offers an “Apple Gift Card” for the difference.

Apple Trade In Process. Photo: Apple Website

The key benefits for using this program is the ease of handing over your Apple device and then getting a credit for it. Also if your device is destined for the landfill, then Apple will recycle it which is good for the environment.

Questionable Device Evaluations

There isn’t a question that it is convenient to hand over your old device to Apple for a credit towards a new purchase, nor that keeping electronics out of landfills is beneficial for the environment. The current value Apple offers is what is in question. Apple offers an easy reference guide to what it is willing to pay up to.

Current Apple Estimated Trade-In Values. Photo: Apple Website.

Real World Evaluation

The famous quote goes something along the lines of “Value is what people are willing to pay for it”. Let’s take the scenario of a typical Apple customer that would like to upgrade their current iPhone and Apple Watch for the latest models announced last Tuesday.

Current iPhone and Apple WatchOriginal Purchase PriceApple’s Trade-In Offer
iPhone 12 Pro Max 512GB$1,959$925*
Apple Watch Series 6 44mm Cellular Stainless Steel$1,049$195**
* Apple’s best-case Estimated trade-in value (the ‘up to’ value)
** As the new ‘Series 7’ is not available yet, Apple indicates “get up to $195 in credit when you trade in your Apple Watch” when purchasing a new watch and this amount was used
Apple Trade-In Values from the Canadian website. Photo: Apple website.

The most prolific reselling marketplace would be eBay. Looking for recent sales for the two items above (i.e., selling in the last week and within Canada/USA) identified a similar iPhone sold today for $1,562 and Apple Watch for $733.

Recent eBay Sales for the latest iPhone and Apple Watch. Photo: Ebay/Completed Sales.

~Retail Insider recommends readers thoroughly research the other risks and processes to sell devices on eBay or other marketplaces prior to listing on them. This is not a guide on how to sell your devices, nor is it intended to inform readers on the risks of selling online.~

Just reviewing the basic comparison for the Apple Trade-In value versus recent eBay sales identified:

Current iPhone and Apple WatchRecent eBay SalesApple’s Trade-In Offer (above)Difference
iPhone 12 Pro Max 512GB$1,562$925$637
Apple Watch Series 6 44mm Cellular Stainless Steel$733$195$538

The combined difference of the eBay sale versus Apple Trade-In ‘best-case’ values were $637 (iPhone) and $538 (Apple Watch). The total loss for the customer in this example would be $1,175.

Is the Apple Trade-In Program Worth It?

While there are environmental benefits mentioned, the scenario above would be embracing the ‘reuse’ aspect of recycling so we’ll set aside that ‘benefit’ mentioned by Apple for now. The main benefit mentioned by Apple for the trade-in program was the convenience.

Let us know in the comments below if you feel that accepting $1,175 less than selling the Apple devices on eBay is worth it.

RBC Insight Edge Supporting and Informing Retail Recovery and Post-Pandemic Growth

Cities in countries all over the world continue a gradual and methodical reopening of communities, events and services as we approach ever closer toward a post-pandemic world. As recovery is on the horizon, hopeful optimism is rising among Canadians that have experienced the impacts brought about by the COVID-19 virus and a return to normal is just around the corner. For many retailers, the next year-and-a-half or so represents opportunities for recovery after an incredibly difficult period for the industry. And, for some, it will also serve as a critical period of growth potential as they look to expand their operations and networks to capitalize on a rebound in consumer spending and market conditions. To help support the recovery and growth efforts of clients in Canada, RBC recently introduced its award-winning RBC Insights Edge – a platform for real-time data and insights.  And, according to Christina Vandoremalen, Vice President, Business Deposits and Treasury Solutions, RBC, the benefits of the platform can be transformative.

“Data insights – like those offered by RBC Insight Edge – are incredibly valuable for businesses because they can help them make informed decisions about their next business move and investment,” she says. “These insights can help a business owner benchmark their performance against their peers, find trends in their customers’ profiles, preferences and shopping behaviours, and understand sales and market trends in order to adapt everything from staffing and resources, to finding future locations to grow their business.”

Data-driven insights

A powerful subscription-based tool developed to provide commercial and small to medium retail business clients with a much-needed edge on their competition, RBC’s platform delivers pivotal insights to retail businesses that support and inform their strategy and decision-making. Comprised of aggregated RBC credit card and debit card transactional data, and enhanced with demographic data, the insights generated also provide retailers with a critical view into some of the finer details of their customer’s behaviour. In addition, and perhaps most important at this juncture in the retail recovery timeline, says Vandoremalen, is the view it provides its users into the ways the pandemic has accelerated, shifted or outright changed the landscape.

“RBC Insight Edge is suitable for businesses of all sizes that are looking for a simpler, more aggregated way to access comprehensive data around customer and market trends, competitive benchmarks and other insights to support the operation and growth of their business,” she asserts. “While it’s designed to support clients across a variety of sectors, it’s been especially helpful for those in retail who are currently adapting to COVID-19 and planning for the post-pandemic economy, as they’ve seen a change in customer profiles, new shopping behaviours, and broader digital trends that have disrupted the sector over the last several years.”

Informing business strategy

The digitization of the industry that Vandoremalen refers to has been germinating over many years prior to the pandemic. However, influenced by lockdowns and social restrictions associated with COVID-19, an acceleration of consumer behaviour around digital trends like the shift toward ecommerce has resulted in required action by retailers everywhere. Overnight, many businesses pivoted to ensure that shoppers could continue to access and purchase product whenever, wherever and however they wanted to. Given the general operational upheaval that these drastic changes in behaviour can cause, the potential that RBC Insight Edge offers to better understand current behaviour and develop the right strategy for the business is immense.

“Whether businesses are looking to keep a brick-and-mortar strategy, switch over to ecommerce or develop a hybrid business strategy, RBC Insight Edge is a powerful tool that helps businesses gain a better sense of customer and market trends to guide their business investments and decisions,” she explains. “As the marketplace and customer expectations continue to evolve, so too will the real-time insights offered by the RBC Insight Edge platform, allowing business clients to quickly pivot, scale and identify new opportunities for growth. These insights can also complement other market research and data sources to further validate their business decisions.”

Supporting growth and expansion

Exterior of Peavey Mart store. Photo: Peavey Mart

One retailer that’s recently leveraged RBC Insight Edge, supporting the growth of its store network and a deeper understanding of the markets it serves, is Peavey Industries LP. Operating multiple banners – including Peavey Mart, Ace Canada and MainStreet Hardware – in markets across the country, it’s developed a reputation among its customers as Canada’s go-to farm and ranch retailer, offering a unique selection of agriculture, farm and ranch, pet, work wear, lawn and garden, hardware and homesteading supplies. The company is hot on the heels of aggressive expansion into new markets. And, according to Doug Anderson, President and CEO at Peavey Industries LP, the RBC Insight Edge platform and insights that it generates have helped to inform the retailer’s growth strategy and decisions around expansion.

“Leveraging analytics is really about developing a better understanding of your customer and the markets that you operate in,” he says. “It allows us as a retailer to continuously improve our relationships with customers as well as the product assortment that we offer them. And, because we’re in growth mode as an organization at the moment, analytics are informing our decision-making around where we grow and in what ways we grow. We’ve leveraged RBC Insight Edge in a number of ways in order to support our objectives. For instance, we recently evaluated a location in Alberta and were trying to understand which of our banners would best serve the customers in that area. The data and insights generated by the platform provided us with a deep understanding of the customers from a regional perspective, helping to inform our strategy.”

Developing a stronger network

In addition to helping Peavey Industries develop a clear vision with respect to identifying prospective profitable locations, the benefits of RBC Insight Edge stretch much further, informing decisions and strategy that impact the entire business. The insights shed light on the things that are going well and some of the things that can be optimized; sales performance trends and regional comparisons; customer behaviour and the aspects of the retail experience that helps drive their loyalty, as well as many other aspects of the operation. And, one of the most significant contributions of the platform’s insights, says Anderson, is the ability they provide in helping to monitor the health of the Peavey Industries network as a whole.

“One of the more critical aspects of the data that’s generated by RBC Insight Edge is the insights that allows us to understand how a new location will impact that particular region, as well as the impact it might have on our other stores within each banner network,” he says. “The insights also enable us to gain a deeper understanding into the performance of new stores and properly set goals and objectives for those locations. It helped us determine where some of our blind-spots were from a customer penetration point-of-view and whether or not we were capturing all of the customers that we were expecting to capture at a new location. As a result, as we rolled out our marketing programs and advertising, we were able to adjust and refine our plans accordingly. From an expansion perspective, the tools provided by RBC Insight Edge have been quite useful to us.”

Making sense of uncertainty

The growth that Peavey Industries has experienced throughout the pandemic has been remarkable. And, although not all retailers within the country have been able to boast the same kind of performance and trajectory during the same time, it’s understood by most that the use of data and analytics will continue to become more pervasive and useful as we continue to move toward a post-COVID environment. The ability it arms retailers with to better understand their customers, markets and own operations is impressive. They are data-driven results that Vandoremalen recognizes as of notable importance to most retailers operating within the industry, but suggests that the tool’s ability to clear up some of the uncertainty of our current situation may serve most useful in helping the industry recover and rebound moving forward.

“As we enter a phase of recovery and growth in this ‘new normal’, data-backed decision making will be an important driver of recovery, growth and staying competitive. No one really knows how shopping patterns will shift and how quickly they will change in a post- pandemic world, so having access to timely data will help retailers spot changing trends quickly. Making measured decisions based on these real-time insights will also be critical in helping businesses manage the post-pandemic realities of rising costs, heightened demand for talent and resources, and new consumer behaviours, and optimize their businesses accordingly.”

For commercial and small to medium-sized retail clients interested in finding out more concerning the ways RBC Insight Edge can help you develop a clearer understanding of their customers and operations, sign up at http://rbc.com/insightedge.

Canadian Retail News From Around The Web For September 22nd, 2021

Canadian Retail News From Around The Web

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