Field Agent Canada, a company that leverages crowdsourcing and mobile technology to collect retail audits and conduct mystery shops for retail operations, has now launched an easy and cost-effective way to get ratings and reviews for products being sold online.
Jeff Doucette, General Manager of Field Agent Canada, said the concept mobilizes real shoppers to buy a brand’s products from specific retailers, try them at home and then leave honest ratings and reviews on product pages on either brand or retailer websites.
“It’s a new service that we’ve launched in Canada based on the success we have had in the U.S. business, which launched it earlier in the year. It meets an important need in the industry especially as online sales are seeing dramatic increases,” said Doucette.
“Field Agent Ratings & Reviews helps brands ensure that their own brand website and the websites of different retailer partners have a sufficient number of ratings and reviews on each product in their lineup.”
Doucette said research discovered that many products had either no reviews or very few reviews. Other products had reviews that were really dated or did not include a lot of detail that was helpful to other shoppers.
“We’ve done surveys and explored the topic in-depth and even on grocery store and drug store type products, shoppers are using ratings and reviews to help them decide which products they’re going to put in their online baskets,” said Doucette.
“Field Agent Ratings & Reviews is about making sure that every single product has a good assortment of reviews and that they provide relevant information to help other shoppers make purchase decisions.”
The Field Agent Ratings & Reviews concept is very simple as it takes all of the work out of it for the brand. The brand provides a list of products that they would like reviewed and the website(s) where they would like those reviews posted. Field Agent takes it from there.
Shoppers are then asked to buy a specific product at the specified retailer either at a local store or online. This ensures that the posted review is a result of a verified purchase from a specific retailer and the purchase is made by a real Canadian shopper.
“If someone is placing a review on a specific retailer’s website, we are ensuring that that product was actually bought from that retailer,” said Doucette.
“Field Agent has 125,000 Canadian users that have downloaded our mobile app and we post Ratings & Reviews opportunities in the app to qualified shoppers. They’ll go and buy the product at the local store, they’ll try it at home, and they’ll provide us with verification of where they’ve bought it so we know it’s a verified purchase at the correct retailer. We then we ask them to post their product review on the retailer/brand website and also submit the details of the review through the app so our client can track the reviews on our on-line dashboard; making the process easy for the client to see all the reviews posted on their products.”
The big question that normally comes up, added Doucette, is if the reviews and ratings are being filtered. That’s a big no-no.
“It’s really about genuine reviews and real honest opinions. We do not filter out less-positive reviews but we do stress that the review must be detailed and explain why the shopper gave the rating that they gave. No three-word answers. We get the shopper to elaborate and give some context as to why you gave it a four out of five instead of a five out of five,” he said.
“Field Agent Ratings & Reviews is basically a hands-off solution where our clients only need to provide us with a list of items and the sites where they want reviews to be posted and we take care of the rest,” said Doucette.
There has been a significant increase in online shopping over the past few months so the launch of this service is very timely. Shoppers today are increasingly shopping online, whether it’s for delivery or pick up, and one of the main ways they filter products is by the star ratings on each product.
“Products that do not have a robust assortment of reviews will have a smaller chance of making it into the basket.” said Doucette. “Ensuring all products have ratings and reviews needs to be part of every brand’s e-commerce strategy.”
Field Agent Ratings & Reviews provides a quick and inexpensive solution for brands looking to boost their online sales performance in today’s omni channel marketplace.
Choom, one of Canada’s leading recreational cannabis retailers, has launched a flagship retail store in the Olympic Village neighbourhood of Vancouver, B.C. (191 West 2nd Avenue).
The company — which has already seen great success in Ontario and Alberta — is expanding its reach despite the current economic climate as a result of COVID-19.
Choom is known for its elevated customer experience through its implementation of curated retail environments and in-store educators, all of whom are trained to provide a personalized client experience.
The newest Choom location will highlight cannabis favourites from local, B.C. licensed producers, as well as products by some of North America’s leading cannabis brands. Brands including Whistler Cannabis, San Raphael ’71, and Dosist, will all be amongst the Olympic Village Choom lineup.
“Today, the Choom team celebrates another exciting milestone with the opening of our flagship store in our hometown of Vancouver, B.C.,” said Corey Gillon, CEO of Choom. “Thanks to the world-class, retail expertise of our team, we are excited to share a reinvigorated version of the Choom brand – one that is founded on providing an elevated retail experience, positioning Choom as a leader in the retail cannabis space. From the novice user to the more experienced, our goal with Choom is to create a unique, welcoming environment for our customers that is rooted in our company’s ethos.”
The space was designed by Vancouver-based Cutler and millwork was manufactured by Peregrine.
INTERIOR OF NEW CHOOM FLAGSHIP. PHOTOS: CHOOM
Outfitted with premium furnishings, Choom’s new Vancouver flagship store will provide customers with the usual elevated experience previously known to customers in Alberta and Ontario.
To date, Choom operates 18 retail locations across three provinces: Alberta, Ontario, and B.C.. With an aggressive growth strategy to increase its national footprint planned for the next three to five years, Choom’s newest B.C. location follows closely behind the company’s most recent acquisition of a flagship location in Niagara Falls, Ontario.
The Canadian brand notes that its Olympic Village location is only the first new store to open in B.C. and that there are six stores planned for the province in the near future.
Inspired by Hawaii’s “Choom Gang” – a group of buddies in Honolulu during the 1970’s who loved to smoke weed – or as the locals called it, “Choom”, the brand encourages cannabis consumers to embrace an active lifestyle — one that is inspired by the social activities and pastimes of the famous “Choom Gang”.
The fast-expanding retail cannabis company has flourished in the wake of Canada’s cannabis legalization in 2018, and today Choom has one of the largest store networks in Canada, with the company’s sophisticated and inclusive culture and vast product offering no doubt having much to do with its continued success.
INTERIOR OF NEW CHOOM FLAGSHIP. PHOTOS: CHOOM
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In the wake of the current COVID-19 pandemic, Choom’s flagship location will offer click-and-collect services to all customers, allowing purchases to be made both in-store and online.
In support of Canadian health authority recommendations, the store will be actively practicing social distancing and will adhere to elevated safety and sanitization measures to protect the health and safety of customers and in-store employees.
Cannabis retail has remained an ‘essential service’ in British Columbia amid the COVID-19 pandemic, ensuring profitability within the sector despite the surrounding shutdowns. In other parts of the country, such as Ontario, the ‘essentiality’ of cannabis retail was revoked in April after being deemed ‘essential’ at the beginning of the COVID shutterings. Retail insider recently reported on Friendly Stranger Holding Group and its plans for expansion across the GTA and potentially the entire province. Clearly, as Canada makes its transition to the ‘new normal’, cannabis retail will continue to proliferate.
Minimalist Japanese retailer Muji has opened its second largest Canadian store at the Guildford Town Centre in Surrey near Vancouver. It is now the largest Muji store in British Columbia, bigger than the downtown Vancouver Muji store on Robson Street which became the largest outside of Asia when it opened in 2017.
The 15,890-square-foot Guildford Town Centre Muji store is the first suburban location in Canada to span two levels. The first floor spans 8,387 square feet according to lease plans, with the second level encompassing 7,512 square feet. Escalators connect the two levels. The store’s design is similar to other Muji stores in Canada, featuring an exposed ceiling and natural wood accents throughout. Given the COVID-19 pandemic, the store’s layout is more spacious than expected.
Physical distancing is encouraged with the store’s capacity set at 50 people. Hand sanitizer is available in the store for all customers. Face masks are encouraged though not required. Returned merchandise will be quarantined for three days before returning to the sales floor. According to a sign in the store, cash will not be accepted while credit and debit cards can be used for payment.
The main floor of the Guildford Muji store includes departments for stationery, health & beauty, kitchen & tableware, laundry/cleaning, storage, and furnishings for the living room and bedroom. Upstairs is women’s wear, men’s wear, children’s wear, accessories, bags & shoes, ‘inner wear’, and travel goods. The second level also includes Muji’s embroidery service and fabric print service. The Muji ‘aroma bar’ is temporarily not available, according to the company, as a safety measure due to COVID-19.
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CLICK FOR INTERACTIVE MALL MAP AT GUILDFORD TOWN CENTRE
Muji’s opening is good news at a challenging time. In March, businesses deemed ‘non-essential’ were forced to close in British Columbia as well as across Canada. Stores have begun to open slowly — last month mall-based stores were permitted to reopen in British Columbia, and shoppers are starting to come back. The shutdown hit the bottom line for most businesses and some have filed for bankruptcy protection and some have closed entirely.
The largest Muji store in Canada is located in downtown Toronto at the Atrium complex on the corner of Yonge Street and Dundas Street West. It was also the first Muji location in Canada when it opened in 2014 — the 4,400-square-foot store was expanded to an impressive 20,000 square feet over two levels in November of 2018, making it the largest Muji location outside of Asia. Prior to that, the downtown Vancouver Muji store, measuring more than 14,500 square feet, held the title for the largest Muji store outside of Asia.
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Muji now operates nine stores in Canada. Four of those are in the Vancouver area, including the Robson Street flagship that opened in December of 2017, a Metropolis at Metrotown location which expanded in 2018 to 12,305 square feet, a store at CF Richmond Centre which expanded to 9,212 square feet in February of 2019, and the new Guildford Town Centre store which is the largest of them all. In the Greater Toronto Area, Muji operates its massive downtown Toronto flagship store as well as a 5,225-square-foot store at Mississauga’s Square One (opened in November of 2015), a 6,375-square-foot store at Toronto’s Yorkdale Shopping Centre (opened in October of 2016), a 6,000-square-foot space at CF Markville which opened in the summer of 2017, and a store at Scarborough Town Centre, measuring about 6,800 square feet which opened in March of 2018.
In 2018, Muji was re-evaluating its Canadian operations as it looked to open larger stores. That was according to Masaaki Kanai, Chairman of parent company Ryohin Keikaku, who told us in an interview in 2018 that Muji is not only looking at opening substantially larger stores, but that it is also considering opening grocery stores, hotels, designing public realm, and even getting into residential development. A Muji hotel location was rumoured to be part of a new development on Bloor Street in Toronto, though no formal announcements have been made.
Muji was also said to be looking at the Montreal, Edmonton, and Calgary markets to open stores. No announcements have been made yet, though landlords had confirmed that they were having conversations last year.
COVID-19 has changed the retail industry at least for the time being, and expansion plans for some brands are said to have been put on hold. We’ll continue to follow Muji’s expansion in the Canadian market, which could include new units as well as possible expansions of some existing units in Ontario.
More provinces have announced moratoriums on commercial rent evictions to help retailers and small businesses across the country survive the economic challenges of the COVID-19 pandemic but Ontario has still not ventured in that direction.
Saskatchewan and Alberta were the latest provinces to announce that initiative.
Jon Shell, co-founder of the grassroots coalition Save Small Business, supported by about 40,000 small businesses across Canada, said it has been obvious to many in the small business community since late March that moratoriums on commercial rent evictions are both critical for the recovery and a moral obligation.
“But provincial dithering has led to massive unnecessary stress for small business owners. Many simply gave up while Premiers waited to act. Some were evicted. No one should be proud of this — they should be embarrassed at how long it took them to take this logical action,” he said.
“In Ontario, Doug Ford continues to yell at landlords on TV instead of acting. He continues to abandon small business without explanation. Hopefully now that every other province is coming around he will finally choose to follow.
“We are hearing very positive signs from B.C. landlords looking at CECRA now that the evictions ban is in place. It’s incredibly important that rent relief is paired with an evictions moratorium and we are not at all surprised to see more uptake of the program in B.C. now that it’s in place.”
Karl Littler, Senior Vice President, Public Affairs at the Retail Council of Canada, said that although Ontario does not have one yet, the province is looking seriously at it.
“The reason a moratorium is helpful is by temporarily suspending the landlord’s ability to threaten — or actually conduct — an eviction while seeking to extract more rent than the tenant can afford to pay, not only will that lead to a more balanced position in negotiation on rent as between landlord and tenant but it is also likely to have landlords take a serious second look at the value of the 75 percent rental income under the CECRA (Canada Emergency Commercial Rent Assistance) program,” said Littler.
“A landlord who takes the position that it doesn't matter that my tenant has been shut by public order for weeks or months and has had little or no income from the property is being unrealistic — and in RCC's view . . . is subordinating both their tenants' and their own medium and long-term economic interests to the impulse to try a cash-grab by threatening eviction.”
On Friday, the Alberta government said many Alberta businesses are facing challenges paying their rent during the COVID-19 pandemic and will continue to feel the economic pressure even as their businesses reopen.
To help ease the economic pinch, the government is planning legislation to ensure commercial tenants will not face rent increases or be evicted for non-payment of rent due to the COVID-19 public health emergency. The new measures will help address shortfalls in the current Canada Emergency Commercial Rent Assistance (CECRA) program, and will give eligible business owners peace of mind as they reopen and help with the provincial economic recovery. Additional details are expected to be finalized during the current summer session, it said.
“It’s great that provinces are moving on commercial eviction protection. We’ve been asking for this since March and it’s a critical protection, particularly since landlords have all the power in the CECRA program. Having said that, rent relief is still a giant mess that needs a clean up. Commercial eviction protection is part of the clean up but other things need to happen too. CMHC (Canada Mortgage and Housing Corporation) needs to clean up their long wait times and complicated application process. And the federal government needs to make more money available directly to tenants through programs like CEBA (Canada Emergency Business Account),” said Laura Jones, executive vice-president of the Canadian Federation of Independent Business.
The Retail Council of Canada said it applauds the governments of Alberta and Saskatchewan for listening and responding to the needs of small and medium-sized retail businesses with the recent announcements of moratoriums on commercial tenant evictions.
Rent relief remains a priority issue for RCC as retailers of all sizes with severely-reduced revenues have no ability to pay their rent. With many landlords across the country choosing to ignore the involuntary nature of the Canada Emergency Commercial Rent Assistance (CECRA) program, store closures are inevitable, it said.
Over 225,000 Albertans and 68,000 Saskatchewanians worked in retail stores in 2019. That's why the Alberta and Saskatchewan moratoriums on commercial rent evictions are such important investments into the provinces' economic futures, added RCC.
“We are grateful to the Alberta and Saskatchewan governments for their swift action in helping Alberta's 17,500 and Saskatchewan's 4,900 retail businesses continue to survive and operate during these extraordinary times," said Diane Brisebois, President & CEO, Retail Council of Canada. "Eliminating the fear and threat of eviction over unpaid rent allows business to focus on their recovery. We encourage all provinces to follow suit in enacting a similar moratorium in the interests of retailers across the country.”
Michael Kehoe, Lead Ambassador in Canada for the New-York based International Council of Shopping Centers, said commercial landlords have the ability to enforce their ability to collect rent under their leases and many have been doing so during the COVID-19 lockdown period.
“In an era where tenant retention is critical to ensure that consumers have stores and restaurants to return to as the safety measures are being lifted the legal may be different from the practical,” said Kehoe, a veteran of more than 40 years in the industry and broker/owner of Fairfield Commercial Real Estate in Calgary.
“Everyone in the commercial real estate transactional chain should be working together at this critical time to avoid jeopardizing the survival of small business. I do not feel that provincial government mandated moratoriums on commercial evictions are practical. Our consumer real estate industry has been built on a free market economy and now is not the time for government mandated controls on tenant and landlord matters.
All parties must be working together with communication channels open at this critical time to ensure the survival of our favourite shopping and dining venues.”
The Alberta government also announced Friday that it is committing up to $200 million in funding for eligible businesses and non-profits to access up to $5,000 to offset a portion of their relaunch costs. These funds can be used for implementing measures to minimize the risk of virus transmission, (such as physical barriers, personal protective equipment, and disinfecting supplies), rent, employee wages or replacement of inventory. The program’s online application is expected to be available in the coming weeks. Program details, including eligibility, are being confirmed.
CANADA GOOSE’S YORKDALE FLAGSHIP: PHOTO VIA FACEBOOK
Toronto-based fashion brand Canada Goose, known particularly for its warm outerwear, is looking to focus on sales through its own stores and online channel as it pulls its line from multi brand retailers. Since its first standalone store opened in 2016 in Toronto, Canada Goose has opened 21 stores globally with seven of those being in Canada.
Canada Goose’s focus on direct-to-consumer channels could pose a threat to multi-brand retailers in Canada as well as globally. Earlier this year, we reported that Canada Goose had pulled its product from Quebec City-based retailer La Maison Simons. After that report, French language publication La Presse reported that Canada Goose had pulled distribution from retailers SAIL, Sportium, Sports Experts, and Atmosphere. Last week, SAIL filed for bankruptcy protection and on Thursday, it announced that the Sportium chain in Quebec would shutter entirely while two SAIL stores in Ontario would close as well.
More multi brand retailers would struggle if Canada Goose pulled out. Toronto-based retailer Sporting Life sells tens of millions of dollars worth of Canada Goose product annually and the retailer’s future could be in jeopardy if Canada Goose were to pull out of Sporting Life stores. Retailers such as Harry Rosen have built dedicated Canada Goose retail spaces to maintain a partnership with the brand, and the nearly completed Holt Renfrew Ogilvy store in Montreal will soon include a dedicated Canada Goose women’s boutique on its third level luxury fashion hall.
CANADA GOOSE DISPLAY IN HARRY ROSEN STORE. PHOTO: HARRY ROSEN
Canada Goose was available for years in multi-brand retailers before opening its own stores. In October of 2016, Canada Goose opened its first store in the world at Toronto’s Yorkdale Shopping Centre. That was followed soon after by a store in New York City’s Soho area. Canada Goose has since opened stores around the world.
In Canada, Canada Goose operates standalone units in Vancouver (CF Pacific Centre), Calgary (CF Chinook Centre), Banff (Cascade Plaza), Edmonton (West Edmonton Mall), Montreal (1020 Ste-Catherine Street West), and most recently at CF Sherway Gardens in Toronto. The CF Sherway Gardens Canada Goose store features an ‘experience’ where consumers can learn about the brand and order product that is shipped to their homes (mall stores in Ontario have not reopened due to COVID-19 at press time). The Montreal, Edmonton and CF Sherway Gardens stores feature ‘cold rooms’ where shoppers can try on jackets in sub-zero temperatures.
Canada Goose also operates international standalone stores in New York City, Boston, Chicago, Short Hills NJ, Minneapolis, London, Paris, Milan, Tokyo, Hong Kong, Beijing, Shenyang, and Shanghai.
This year, Canada Goose will open a downtown Toronto store and plans were in place to expand the Yorkdale store. In downtown Toronto, Canada Goose will open a nearly 5,000-square-foot store on the third level of CF Toronto Eaton Centre where an Apple store was located — Apple moved downstairs into a much larger space late last year. At Toronto’s Yorkdale Shopping Centre, building applications indicate that Canada Goose will expand its 4,500-square-foot storefront by annexing an adjacent space occupied by foodservice business Nadege. The expanded Yorkdale Canada Goose store, which would include a ‘cold room’ as well as other experiential elements, will span more than 6,500 square feet with a prominent facade facing in three directions next to the mall’s Nordstrom store.
CANADA GOOSE LOCATION SET TO TAKEOVER THE PREVIOUS APPLE STORE IN CF TORONTO EATON CENTRE. PHOTO: SHONTRON, URBAN TORONTO
In an earnings call last week, Canada Goose CFO Jonathan Sinclair told analysts that the company will increase its focus on its direct-to-consumer business, particularly in the early stages of reopening after COVID-19 closures. “This allows us to control the consumer experience directly while earning double the revenue and triple the profit on a unit-for-unit basis,” Mr. Sinclair said.
Strategic wholesale partnerships with multi-brand retailers is still part of Canada Goose’s strategy moving forward, according to CEO Dani Reiss. And while wholesale will be smaller going forward, the “business model remains intact,” he said. “Many (wholesale retailers) are expecting us to be one of the brands that help lead them through the recovery,” Mr. Reiss said in the call last week.
The direct-to-consumer trend has taken hold globally over the past several years as brands open their own stores while also expanding online sales. What has resulted is a situation where multi brand retailers that introduced brands to some markets have been shut out. The trend has unfortunately resulted in the demise of some retailers. One example is Toronto-based Davids Footwear — last year, luxury brand Valentino informed Davids that it would pull the brand from the store after opening a standalone Valentino boutique at Toronto's Yorkdale Shopping Centre, and the Valentino exit was partly to blame for Davids’ bankruptcy filing and eventual chain closure. If Canada Goose pulls out of some multi brand retailers, that too could spell the end for some retailers especially after prolonged COVID-19 store closures.
COVID-19 has hit the bottom line of many brands, and it remains to be seen if some continue to open direct-to-consumer storefronts. Rents are among the biggest expense for retailers, and some brands may slow plans to open corporate stores until finances improve. At the same time, an acceleration of the shift towards online sales could see more brands continue targeting consumers directly both online as well as with standalone units acting as brand showrooms, which could mean less distribution in multi-brand retailers in years to come.
SOUTHGATE CENTRE IN EDMONTON. PHOTO: IVANHOÉ CAMBRIDGE
Canadian shopping centre landlord Ivanhoé Cambridge is helping small and medium-size retailers, as well as restaurants, across its portfolio by offering one-year free access to the Lightspeed Retail or Lightspeed Restaurant fully-integrated cloud-based programs.
Ivanhoé Cambridge has 25 shopping centres in Canada over six provinces with a total of 30 million square feet of retail space.
A spokesperson for the shopping centre landlord said the initiative could benefit several hundred businesses across the company’s portfolio.
“The idea here is that a lot of the smaller retailers, tenants, restaurants in these times are struggling and they’re an important part of the fabric of our economy but also of our shopping centres. So what we want to do basically at this point in time is help them have an opportunity to sell, help them have an opportunity to extend their market now in this emergency situation but into the future as the retail and the ecosystem evolve”.
PHOTO: LIGHTSPEED
“So in very practical terms what we’re offering them is the ability to access for retailers a free one-year subscription to the Lightspeed Retail Point of Sale systems that also comes with the e-commerce system therefore allowing them to not only manage their brick and mortar store efficiency but to propel the inventory and to propel the sales online.
“That’s essentially the core offer. When it comes to restaurants, we’re obviously offering the equivalent, if you will, which is the Lightspeed Restaurant with the delivery module which means that it allows our restaurants to not only have access to the point of sale system but also to once again make it available for delivery, for pick up, working with third-party partners. So they have all the technology that allows them to extend their reach and their business into new markets and a newer customer base.”
Tenants will also have access to modules such as Lightspeed eCommerce and Lightspeed Delivery built within the retail and restaurant platforms, respectively.
POPPY BARLEY STORE AT SOUTHGATE CENTRE IN EDMONTON. PHOTO: POPPY BARLEY
“Our goal is to ensure the small and medium-sized businesses in our cities – who are integral to the local economies – have access to the tools they need to be successful through these significant changes in consumer behaviour and as regulations for a staggered re-opening of retail centres and store fronts begin,” said JP Chauvet, President, Lightspeed POS Inc., in a statement. “An omnichannel sales platform will support their needs in the short-term, while also fuelling the big picture as we look ahead to a post-COVID environment.”
What the Partnership Means for Retailers who Adopt Lightspeed Retail:
An omnichannel point of sale (POS) solution that includes Lightspeed eCommerce and opens inventory to an increasingly digitally savvy consumer base;
Must-have tools to engage customers, including comprehensive loyalty programs, synchronized inventory management, and built-in reports with real-time sales data; and
Integration of local and national parcel delivery, via eCommerce
What the Partnership Means for Restaurants who Adopt Lightspeed Restaurant:
Lightspeed Delivery integration options to Uber Eats, and other local food delivery services;
Reach more customers by maximizing delivery zones, customizing a takeout menu, connecting to social media, and using data to understand ordering patterns; and
Options such as self-order kiosks or tableside service with an iPad POS system for in-restaurant experiences when doors reopen.
“During these unprecedented times, it’s important to support our tenants. We understand that consumer expectations and shopping habits are evolving,” said Nathalie Palladitcheff, President and Chief Executive Officer at Ivanhoé Cambridge, in a statement. “This is an opportunity, and we are proud to partner with Lightspeed to offer a safe, fluid and trusted omnichannel sales solution to our tenants wishing to serve the communities in which our shopping centres are located.”
Another Ivanhoé Cambridge representative said that the success of restaurants and retailers and for the shopping centre landlord are directly tied.
“If these guys are around and healthy, so are we,” they said.
“It’s a very difficult environment. This is why we think something like the deal with Lightspeed and other initiatives we have are all the more important because essentially what we’re doing here for our food court partners and restaurant partners, by giving them this POS for one year but also by introducing the delivery capability, is allowing them to use their kitchen as a production facility and really facilitate delivery. A lot of them still don’t have easy access to integrated delivery modules and therefore it’s complicated for them.
“Other things we’re looking at and actually deploying in food is facilitating pick up. We are going to be piloting very shortly at one of our properties with a cut the line service, a pick up service. We’re seeing pick up in restaurants and retail being developed across the board whether it’s curbside pick up, in-store pick up. For the restaurants we’re also going to be doing this.”
A few times a week, I take a run to clear my head. First off, I recognize the privilege I have to do so without fear of police abuse or attack, unlike many of my fellow Canadians who are Black, Indigenous or Persons of Colour.
My runs often take me down Bloor Street West’s Mink Mile in Toronto, one of Canada’s most exclusive shopping destinations. Over the last several days, I have noticed that retailers have been putting up wood hoarding as a precautionary measure to protect their stores. It started with American brands (Nordstrom Rack, Gap, Banana Republic, TJX’s Homesense and Winners) along with a few others like Dolce & Gabbana, likely given their designers’ history of racist comments.
As of this weekend, most others had followed suit, from Hermes, Louis Vuitton, and Burberry to Canada’s Holt Renfrew Men and Harry Rosen. COS, Cartier and Moncler painted their hoarding black, likely to maintain a semblance of ‘chicness’ among the possible future ‘chaos.’
BLOOR-YORKVILLE STORES. PHOTOS: JEFF SPIVOCK
The vast majority of protests in Canada have been peaceful to date. However, in boarding up stores, retailers were likely assuming that subsequent protests may turn violent and that looting will occur. Some protestors may interpret it as daring them to do so. Canadians may also view this action as a way for the establishment to protect its assets, hoping for ‘a return to normal’, a return to the same status quo of injustice that has permeated in this country for generations.
I recognize that retailers have a fiduciary duty to their stakeholders and staff to protect their assets, and hoarding may be a smart risk management strategy. But I also believe that retailers have duty to all Canadians, especially those from marginalized communities, to listen, to support and to help. Not one retailer with hoarding has also mentioned its support for peaceful protests. (Roots, who doesn’t have hoarding, did say they were ‘closed to peacefully protest.’)
Despite being only a few hours old, some hoarding had already been ‘tagged’ or graffitied with slogans from those protesting inequality. This sparked an idea.
I’d like to personally issue the following challenge to Canadians retailers, who are reading this and who have hoarding up:
Consider painting all your protective hoarding a single colour, removing the DIY peg-board that mirrors the look of an area post-looting.
Use them to share your support for the continued peaceful protests against racial injustice.
Hand out markers and explicitly encourage all Canadians to use the hoarding to share their messages, their feelings, their experiences, their hopes, their anger, their solutions, their constructive criticism to you as a brand, thus leveraging this prime piece of real estate.
Every day that the hoarding is up, commit to photographing it and delivering the messages to your executive team, or, better yet, your full organization. Allow them to read, firsthand, the thoughts of Canadians in those communities and those protesting inequality.
You may even want to post those messages, unfiltered and unedited, on your social channels and invite your executives to publicly reflect or comment.
Commit to read them and to look for ideas that you as a retailer can support or implement moving forward.
Donate a portion of the money you are saving with these hoardings to local charities. You can even invite those ‘tagging’ to highlight hyper-local organizations that could use your support.
This is one simple idea that goes beyond posting a message on your social channel but demonstrates that you are listening, and, hopefully, taking action. Hopefully you have some others.
BLOOR-YORKVILLE STORES. PHOTOS: JEFF SPIVOCK
And if you like it, but don’t think you can’t find someone to help you paint and encourage people to participate, send me a Tweet. I am here with a can of paint and a roller, ready to do my part, so we can all listen and grow.
BIRKS LOCATION IN SQUARE ONE SHOPPING CENTRE. PHOTO: SHOPSQUAREONE
Fine jewellery brand Birks, which has been in business since 1879, has implemented comprehensive measures for the reopening of its stores during the COVID-19 pandemic.
Jean-Christophe Bedos, President and CEO of Birks, said the company, like every other retailer, was taken by surprise by the shut down of the retail industry when the coronavirus crisis hit the country.
“The industry was not prepared for that,” said Bedos. “It was unprecedented. We had to apply a general lockdown since March 18 essentially. In terms of impact, of course our revenue dropped from a nice level of business to zero for a majority of stores.
“We have kept our e-commerce operations open. They have obviously very nicely benefited from the situation. And we also maintained what we call the concierge service because our business is client-based. Birks is part of Canadian life in terms of celebrations, sharing, the topic of love, engagement, anniversaries, graduations. So we have had demand. Demand was maintained over the phone or email.
“The very first week of lockdown we created a concierge service in our flagship in Montreal, flagship in Toronto, in Calgary, and in Vancouver. What that meant, although the stores were closed, we made ourselves available for essentially going back to the old mail order. We did shipments from those stores. We could pick up the phone, we could answer emails, and we were available for our clients. That has helped to maintain a small level of sales and alongside that concierge service we have e-commerce.”
There are 28 stores in Canada from Victoria to Quebec City.
By the beginning of this week, Birks had reopened 13 stores across the country. Bedos said the reopening of the other stores depends on the direction each individual province takes.
He said the retailer has taken the time to learn from best practices abroad about the reopening of stores. It learned from U.S. colleagues in the jewelry industry and worked with the Retail Council of Canada.
“We built a very solid format where we have the list of best practices, the list of protocols, the what to do list before opening the store, the training sessions for every store, and we invested of course in purchasing all of the necessary protective equipment for both our sales professionals and our clients for when they are in the store,” said Bedos. “All of the investment was all written down and shared to every team prior to reopening on a store-by-store basis.”
In addition to masks and gloves, the stores will also have plexi shields. Each piece of jewelry touched by customers will be sanitized after it has been handled. A small number of items that can’t be disinfected will be put in a plastic pouch and placed in a vault for a number of days until safe to be taken out again.
In 1901, the eldest son, William Birks, became head of the company and Birks began to expand across Canada with store openings in Ottawa (1901), Winnipeg (1903), and Vancouver (1907).
In the 2000s, Birks was one of the first companies to offer diamonds mined in Canada. Each stone is engraved with a unique serial number associated with the mine of origin.
In 2019, Birks reinvented the retail experience through the renovation of the historical Square Phillips store in Montreal and the Bloor store in Toronto.
TrendSavvy, one of North America’s fastest growing online fashion marketplaces, has opened a flagship store in central Montreal with potential plans in the future to expand into other markets.
The unique concept, in a 1,200-square-foot space, is designed to offer customers an enhanced, personalized shopping experience, said Jenn Feiden, the company’s CEO, adding that the physical store is by appointment only.
“Unlike most online retailers, TrendSavvy seeks to connect with our customers on a deeper, more personal level, curating assortment not only based on the latest trends, but also on the specific tastes and desires of our extremely loyal and growing client base. We set ourselves apart by offering an elevated and customized shopping experience,” said Feiden.
TrendSavvy began in late October 2017. The reason for its inception began with Feiden’s background working alongside her husband for many years in the retail industry in such places as Beyond the Rack and Sears.
IMAGE: TRENDSAVVY FACEBOOK
She said TrendSavvy was launched in an effort to fill a major void in the premium online marketplace. With over 15 years of E-tail experience Feiden and her husband noticed a major need for strong customer service and sought out to create a marketplace that bridged that gap.
She said TrendSavvy caters to women, men, and children featuring over 500 fashion brands. Products are anywhere from mid-tier to high-end designer brands. She describes TrendSavvy as being between a Winners and a Revolve. The focus currently is on women but as the retailer grows it will be bring in other product lines to service more demographics.
“We have grown this into quite a big platform. We have almost 30,000 customers in our database right now. We’ve become known not just as a destination for shopping but really a place where customers feel like a really personal experience. That’s really what we were striving to do because that really doesn’t exist online. There’s a lot of really amazing boutiques where they cater to customers in that way like Holt Renfrew but we didn’t feel that existed online,” said Feiden.
“So we wanted to recreate that personal experience in the online concept. So our customers have become like part of our family. They’re extremely loyal. We have an insane customer return rate of 70 per cent which the online norm is about 40. That’s kind of become our DNA, taking care of customers. We curate our collection based on our returning customers – what their needs are, not what our buyers are seeing as trends. It’s really what our customers are looking for. Our business model is really devoted to the customer.”
The decision to open a physical store was because of the retailer’s loyal client base and there was a demand for clients to be able to touch and feel the products TrendSavvy was selling. That store opened at the beginning of March.
The online business currently services all of North America and has plans on expanding worldwide in the next year to Europe and Australia perhaps.
“If the store is successful we have plans to expand in every major city where we have a large client base which would be Toronto, New York, Los Angeles. The sky’s the limit for that. What makes it really easy in terms of operations is having the by appointment only. It allows you to really curate based on what the needs are so you’re not sitting with a store that has dead stock basically,” said Feiden.
“The storefront is curated with our best sellers but basically what happens for clients who want to come shop here they have to directly message us and they’ll be put in contact with what we call a concierge. That person kind of acts as a stylist. The person will give them a wish list that they’d like to try on based on what they see on the website. The stylist will then put together their wish list and give them availability in terms of when they can come shop and the stylist will also not only pick out what the customer’s wish list is but couple it with products they think would pair well with what the customer chose. The way our online business is it’s a very intimate experience. They’ll be greeted with coffee and little bites and really feel at home. We wanted the customer to feel very loved.”
On Tuesday and Wednesday of this week, two major retail groups in Canada filed for bankruptcy protection as businesses struggle after prolonged shutdowns due to the COVID-19 pandemic.
Both retail conglomerates operate stores primarily in suburban shopping centres. Landlords have demanded rents be paid despite stores having been closed by law, which has resulted in many retailers looking to bankruptcy protection to maintain operations while getting out of some leases and rent obligations.
PHOTO: VERO MODA
Bestseller Canada:
Bestseller Canada, which operates 60 Jack & Jones and Vero Moda stores in Canada, filed for creditor protection on Tuesday of this week. At one time, Bestseller-branded multi-brand stores operated in Canada, though all closed earlier this year. Bestseller Canada said in court documents that it owes $39 million to creditors.
Most of the 60 store locations operate under the Jack & Jones label. Jack & Jones is a youthful fashion line featuring men’s apparel and accessories. Canada is home to several Vero Moda store locations as well — the brand is known for its value-priced women’s apparel. Both brands can also be found in multi-brand retailers such as Hudson’s Bay. Other Bestseller brands carried in multi-brand retailers include Only&Sons, Selected Homme, Noisy May, and others.
Bestseller Canada is a division of the Denmark-based Bestseller group which operates globally. In February, Retail Insider reported that Bestseller Canada had shut all five of its Canadian multi-brand stores with locations in the Montreal area as well as in Winnipeg (the Winnipeg store was converted to a Jack & Jones). Canada was the first international market for the Bestseller store concept and it was expected to be expanded across the country after launching in 2015.
Family-owned Bestseller was founded in 1975 in Brande, Denmark with an aim to provide "fast affordable fashion for women, men, teenagers, and children", according to its website. The company is one of Europe's largest fashion companies and its products are available in markets across Europe, the Middle East, Canada, and India.
One source said that 13 of the 51 Jack & Jones store locations in Canada would be “handed back to landlords” with more information forthcoming. All Vero Moda locations are expected to close according to another source familiar with the situation.
PHOTO: JACK & JONES
Comark Holdings:
On Wednesday of this week, Ontario-based Comark Holdings Inc. announced that it had filed for creditor protection and that it plans to remain operational while shutting some stores. Comark operates retail banners in Canada including Bootlegger, Cleo, and Ricki’s. Comark filed for bankruptcy protection in 2015 as well.
According to its website, Comark operates 310 store locations in Canada under the three banners. Denim-focused Bootlegger was founded in Vancouver over 45 years ago and operates 82 stores across the country with apparel for both men and women. Cleo and Ricki’s are female-focused fashion brands also with stores across the country. Comark, which was founded in 1976, grew by 58 stores in 1979 when it acquired the Mississauga-based Irene Hill brand and renamed it Cleo in 1994. In 1982, Comark added Winnipeg-based Ricki’s stores to the group. The Cleo banner employs more than 850 people in its 99 stores, and the Ricki’s banner includes 129 stores across Canada.
About 40% of Comark’s stores are in Ontario. Stores in malls lacking exterior entrances are not permitted to reopen in the province until at least the end of this month. As of June 10, 210 of Comark’s 310 stores will have reopened — the 92 Ontario locations will remain closed as well as eight units in Newfoundland.
In a statement on Wednesday, Comark said that its goal is to remain operational while shedding some less productive storefronts. “Comark commenced proceedings under the CCAA to restructure its operations and address the impacts of a challenging retail environment and the COVID-19 pandemic. The restructuring proceedings will provide Comark the opportunity to optimize its store footprint and leasing costs with the aim of emerging as a stronger business, better able to serve and support its loyal customers,” the statement said.
PHOTO: BOOTLEGGER
The majority of stores will remain open, according to Comark, with safety measures in place as stores reopen. Gerry Bachynski, President of Comark, said, “Top of mind for our loyal customers and employees is that the majority of our Ricki's, Cleo, and Bootlegger stores across Canada continue to be open for business, with physical stores scheduled to re-open in conformity with local guidelines.
“Each of our banners will continue to stock our exclusive apparel and all of our rewards and gift card programs will continue to be honoured at this time. As has been the case since the start of store closures brought on by COVID-19, each banner’s webstore continues to remain open,” he went on to say.
As part of the CCAA proceedings, Comark says that it intends to seek the Ontario Court’s authorization to solicit proposals for sale or investment transactions involving the company.
Prior to the March 2020 store shutdowns due to COVID-19, Comark was in the process of streamlining its business operations according to court filings. When stores shut temporarily, the majority of Comark’s 2,500 employees were laid off — most employees are described as being “of short-tenure, non-union retail employees”. The closures hit cash flow which was already strained and as of last month, Comark estimated that it had lost about $50 million in sales during the temporary store closures.
PHOTO: CLEO
A “severe liquidity crisis” resulted and according to court documents, Comark cannot remain a going concern without bankruptcy protection. Borrowing more money is not an option according to documents, and Comark said that it had not paid rent for its retail stores for the months of April, May, and June — the amount now owed is about $9 million according to court documents. As of Tuesday, Comark had received notices of default for 56 of its store locations.
Comark said in court documents that it needs “a significant show of support” from its landlords to restructure the business. Negotiations will be ongoing and “a workable solution with landlords must be reached by June 19, 2020 to determine the future viability of business and implement a restructuring by the end of June”. Some store closures and permanent employee layoffs will “right-size the Applicants’ business”.
Reopening stores is proving challenging for Comark. Court filings stated that “there are many challenges associated with reopening safely,” going on to say that “It takes one to two weeks to determine whether store employees can return, additional time to find replacement employees if needed, and at least two days to sanitize reopening stores, plus any time required to purchase personal protective equipment for employees”.
As of May 2, Comark’s book value was $66.9 million and liabilities stood at $82.3 million. In the fiscal year ending February 29 2020, the company saw same store sales decline 6.5% — in the year prior, sales had remained about the same as they were in 2018. In fiscal 2020, Comark saw a decline in store level cash flow of 28% or $15.6 million, resulting in a net loss of about $7.6 million.
PHOTO: RICKI’S
Interestingly, the Ricki’s banner has traditionally been the most profitable and court documents stated that “In past years, Ricki’s profits have been used to support Cleo and Bootlegger’s losses”. As of April 2019, however, all three banners had seen a decline which Comark attributed to a “decline (which) has affected much of the retail industry”.
In the month of June, Comark will experience a negative cashflow of approximately $6.5 million, including $3.2 million in June rents according to court filings.
The situation is now dire for Comark. “For the week of May 24th, comparable store sales for open stores are 52% lower than the previous year’s sales,” according to filings. A liquidity crisis has resulted as Comark is unable to make further draws under the CIBC Credit Facility. Its parent company Parentco is “not prepared to advance further funding” either.
Landlords will be notified by a standardized letter “setting out the concessions needed by (Comark). The effectiveness of these agreements will be conditional on a critical mass of landlords signing such agreements on or before June 19, 2020.”
Inventory is an issue as well — it’s almost time to place orders for the fall fashion season. Comark said in court documents that its “placing orders for additional inventory is contingent on securing sufficient landlord support to proceed with a going-concern restructuring”.
Concluding Remarks:
While stores were mandated to be shut because of the COVID-19 pandemic, landlords have demanded that rents be paid. Some landlords have given breaks including rent reductions and deferrals, while government programs have been put in place with the intention to help retailers with rent obligations. Nevertheless, the financial burden placed on some retailers because of rents and other costs have led to bankruptcy protection filings and one of the reasons is for retailers to shut less productive store locations.
Insiders are saying that more retailers in Canada are expected to file for bankruptcy protection in the coming weeks and months. And while stores have started reopening across the country, a consumer slowdown is expected to result in challenging times that will continue into the fall and beyond. Many Canadians have lost jobs while others have lost wealth due to stock market declines and low oil prices.
At the same time, many consumers are staying away from visiting physical retail spaces out of the concerns of potentially becoming infected with the coronavirus. While others work from home, the need for new fashions has been reduced — all are bad news for many retailers seeking to grow retail sales at a critical time.
