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WAXON Introduces ‘South’ Female Products

IMAGE: WAXON

Focused on providing fast and affordable hair removal, Toronto-based laser and waxbar, WAXON, has introduced a new line of feminine hygiene products in a bid to revolutionize the stigma surrounding “below the belt wellness.”

WAXON founder and CEO, Lexi Miles has announced the launch of ‘South’, a clean, intimate, “down there skincare” line of products. Made by women for women, South strives to open up the dialogue around feminine hygiene and eliminate the taboo around women’s self-care.

Offering efficient, competitively priced, and unique waxing services, WAXON has been successful in its field to date, reinventing the process of hair removal and making it unlike any other laser experience in Canada, and now it’s branching out.

Over the years Lexi and her team have been privy to the dialogue that happens behind closed doors at WAXON. For Lexi, the gaps in knowledge surrounding “down there skincare” and “below the belt wellness” were prevalent. Lexi’s understanding of the needs of WAXON customers and what products they were missing in their routines initiated the creation of the South product line, attempting to educate women on proper self-care and fill the gap in the current feminine hygiene product market.

Made with high-quality, PH-balanced formulas, and clean ingredients, South features five core feminine products for the every-day woman. The probiotic formulas are simple yet effective, and South’s products are packaged to reflect the purity of the ingredients in minimalist packaging, also making them easy to throw in a gym bag or leave on bathroom counters without any embarrassment. All products retail under $35 are available at WAXON stores and online at South in Canada and the U.S. (followed by availability on the WAXON website in March).

LINE OF SOUTH PRODUCTS. PHOTOS: SOUTH/WAXON

South products are currently available through e-commerce for Canadian and U.S. customers on South’s website, and Lexi is planning for the South products to be available in the U.S. for future through wholesale opportunities, and eventually through the expansion of WAXON locations throughout the U.S.

In addition to South, Lexi has also created a resource for women with the launch of her new blog We Go There to educate women about “down there skincare.”

We reported on WAXON in October 2018 when it introduced laser treatments to its waxbar. This relaunch served to further enhance WAXON’s service capacity, introducing Vectus Laser machines and providing state-of-the-art technician training for staff. This service expansion meant that WAXON could now offer fast, convenient, and pain-free permanent hair removal solutions for all skin and hair types in under 10 minutes a session.

The use of the laser provides clients with high volume permanent hair reduction in fewer sessions. Each Vectus Laser comes with Skintel technology that reads skin melanin levels, which allows technicians to tailor the treatment to each client’s needs, achieving effective results on average within just four to six sessions.

In addition to single service pricing and interest-free financing options for laser treatments, WAXON provides flexible BAR TAB packages for both waxing and laser, giving the brand an additional edge in the hair removal industry.

It is clear that WAXON is thriving as it continues to grow its range of products and services, with talks of possible expansion plans in the pipeline that includes introducing the brand to the US market.

‘Italian Centre Shop’ Grocery to Open Largest Storefront Amid Retail Expansion

RENDERING: ITALIAN CENTRE SHOP

The Edmonton-based Italian Centre Shop is expanding to its fifth location in Alberta with plans for its biggest store yet in Sherwood Park just outside of Edmonton.

The iconic grocery, deli, and bakery store will open a 22,500-square-foot location in the Emerald Hills Urban Village, as the anchor tenant, with a licensed 50-seat cafe, 30-seat patio, and all the signature deli, bakery, and grocery offerings the brand has come to be known for since it was established in 1959 by Frank Spinelli. The new store will open in the fall of 2021.

“My father Frank started importing newspapers and coffee beans in the heart of Edmonton’s Little Italy to Italians 60 years ago,” said Teresa Spinelli, owner and president of the Italian Centre Shop. “We’re proud to keep his legacy alive and expand our footprint in central Alberta to such a culturally-diverse, family-oriented, and rapidly growing area.

RENDERING: ITALIAN CENTRE SHOP

“I’m asked every day by loyal customers who live in Sherwood Park when we’ll open a location in the east. It’s humbling to know that after this long, Albertans keep supporting our family business and want to be part of our growth. We’ve finally found a space to accommodate our needs operationally, but it meant a lot to our organization to open in an area with food lovers of all ages, busy families and a community known for supporting local businesses. We are very blessed.”

Sherwood Park was an appealing place to open a new location, said Spinelli, because of its family orientation and its mandate to be one of the most liveable communities in Canada.

“Their values are very family-focused like ours are, so we just thought it was a good fit,” said Spinelli.

LOCATION OF EMERALD HILLS VILLAGE

When searching for new sites to open stores, she said the company looks for family-friendly neighbourhoods and the density of those neighbourhoods.

The Italian Centre Shop currently operates three locations in Edmonton and one in Calgary.

Spinelli said the Italian Centre Shop plans to open a second location in Calgary around the same time as the Sherwood Park location.

“We haven’t officially signed off on Calgary but we’re very, very close. Our store is currently in southeast Calgary. This will be in southwest Calgary. We think Calgary could do a third store. If Edmonton could do three, we think Calgary could do three. The Calgary store right now is doing really great. So we’re really excited about that possibility,” said Spinelli.

LOCATION OF ITALIAN CENTRE SHOP IN CALGARY

“And I really want to go to Saskatoon. I don’t know why but I just feel that’s the right move and then we’ll see. I think we’re okay for Edmonton although we are looking at another possibility in a new area of Edmonton. We’ll look at the numbers and see if it works.”

Spinelli said the company’s success is due to the fact that the stores are a gathering place for people and staff are really connected to the customers.

When asked what she thinks her father would think of about where the company is today after such humble beginnings more than 60 years ago, Spinelli replied:

“I think he would be really proud of it. My father really was about community and about gathering places. If he had more time, I’m sure he would have wanted to grow. So I’m sure he’s smiling from above,” she said.

MAP OF EMERALD HILLS VILLAGE
MAP OF EMERALD HILLS VILLAGE

Emerald Hills Urban Village, located in the northeast corner of Sherwood Park, is adjacent to the Strathcona Community Hospital. Neighbouring businesses to the Italian Centre Shop will include a unique, mixed-use commercial centre with financial services, quick service restaurants, a three-storey office/medical building and a 200-unit residential building. With a projected population of just under 90,000 by 2024 within a seven-kilometre radius, Spinelli expects to also service surrounding communities including southeast Edmonton, Ardrossan, Fort Saskatchewan, and South Cooking Lake.

“From opening its first location in Edmonton’s Little Italy, to the announcement of this new store, the Spinelli name has been synonymous with the tastes and traditions of Europe, all under one roof,“ said Cameron Naqvi, President of Cameron Developement Corporation, one of the developers of the village. “As a family business as well, we feel extremely fortunate to work with the Italian Centre Shop, and are pleased it has chosen Emerald Hills to further share its established brand with a new generation of shoppers.”

RENDERING: ITALIAN CENTRE SHOP

The Italian Centre Shop said the Sherwood Park location will deliver the consumer experience that long-time shoppers will have grown accustomed to with Spinelli Bar Italia exclusively serving KIMBO brand espresso, an extensive bread and pastry program and Western Canada’s largest deli featuring over 500 cured meats, cheeses, olives and antipasti. There will also be 140 parking stalls.

The Italian Centre Shop also provides wholesale distribution to over 800 restaurants across Alberta.

Teresa Spinelli took over the family business when her father Frank died of cancer in 2000.

La Maison Valmont Opens 1st Canadian Retail Boutique at Saks Fifth Avenue [Photos]

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Upmarket Swiss cellular skincare brand Valmont has opened its first Canadian retail boutique inside Saks Fifth Avenue at CF Sherway Gardens in Toronto. It’s the second retail presence for Valmont in Canada following the opening of a standalone store in Vancouver in 2017.

The boutique’s design features hardwood walls, a lounge-inspired sitting area with gold accents, and featured art pieces by Spanish street artist El Bocho. This concept is unique to Valmont’s shop-in-shop and is unlike other vendors within the shared Saks space.

The Valmont boutique features a comprehensive selection of the brand’s product lines in both skincare and fragrances. Included is Valmont’s prestigious Swiss Cellular Cosmetics with global anti-aging products and treatments, with its bestseller being the Prime Renewing Pack. Product categories range from ‘hydration’ to ‘energy’ to ‘perfection’ for Valmont’s extensive collection of high-end serums, creams, cleansers, and elixirs.

The Valmont boutique features a comprehensive selection of the brand’s product lines in both skincare and fragrances. Included is Valmont’s prestigious Swiss Cellular Cosmetics with global anti-aging products and treatments, with its bestseller being the Prime Renewing Pack. Product categories range from ‘hydration’ to ‘energy’ to ‘perfection’ for Valmont’s extensive collection of high-end serums, creams, cleansers, and elixirs.

Fragrances feature prominently in the new space with one dedicated wall housing collections that include Storie Veneziane, Palazzo Nobile, and Collezione Private.

In 2017 Valmont opened its first standalone Canadian store at Vancouver’s upscale Oakridge Centre. Globally Valmont’s first two La Maison Valmont locations opened in early 2016 in Berlin and in Hong Kong, followed by a boutique in Tokyo. Valmont’s Oakridge location sits at 1145 square feet across one level and was the fourth La Maison Valmont location to open globally.

A Valmont spa location and retail space in Montreal opened in 2007 at 446 Sainte Hélène St and shuttered in late 2019 according to Maxime Frechette. A dedicated Valmont space at Holt Renfrew Ogilvy in Montreal features a seating area.

Valmont has been available at Saks Sherway Gardens since the store opened in March 2016, but this month saw the introduction of Valmont’s first concession ‘retail boutique’ in the country. This recent addition to Saks Sherway Gardens is part of an extensive plan to expand Valmont’s presence in the Canadian market, according to the company. In 2017, the brand was working on a five year plan, testing and perfecting the La Maison Valmont concept in Vancouver in the mean time.

Originally founded by husband-wife team Didier and Sophie Guillon in 1985, La Maison Valmont has been dedicated to helping both men and women master the visible signs of aging by perpetuating the expertise of Swiss cellular cosmetics. With treatments that guarantee long-lasting results, Valmont has been able to grow its brand internationally with great success, despite the substantial price tags often in excess of $600 per item.

The brand is distributed across Canada in upscale retailers, including Holt Renfrew and, of course, Saks Fifth Avenue. It is also widely available in upmarket spas across the country.

Sherway Gardens houses a beautiful 143,200-square-foot Saks store, which opened in February 2016. Spanning three floors, it includes an 18,500-square-foot food hall operated by Pusateri’s Fine Foods and a 5,500-square-foot Beaumont Kitchen restaurant that is operated by Oliver & Bonacini.

According to the Retail Council of Canada’s most recent Shopping Centre Study, sponsored by Engagement Agents, CF Sherway Gardens is the eighth most productive shopping centre in Canada by annual sales per square foot. It is surpassed by a handful of other centres including the Yorkdale Shopping Centre in Toronto, CF Toronto Eaton Centre, and CF Pacific Centre. Cadillac Fairview operates malls marked by ‘CF’.

In January, Retail Insider spoke with Cadillac Fairview’s Executive Vice President of Operations Salvatore Iacono as part of a Cadillac Fairview mall examination. He said “we made massive investments in the properties that we decided to focus on…For example, at CF Sherway Gardens in Toronto, we invested in excess of $500 million, completing the project about three or four years ago.” Saks Fifth Avenue was part of this project.

The Retail Council of Shopping Centre study also examined shopping centre site intensification. CF Sherway Gardens will also see the addition of eight residential towers in the next three to five years. Due to be constructed on land surrounding the mall that is currently used for parking, offices and a hotel are also planned for the area. The buildings will range from 28 to 33-storeys, with a public park for residents to enjoy. While Cadillac Fairview’s proposal does not impact the existing shopping mall, future renovations to the mall can be anticipated, as can new retailers as some have recently exited.

205: Canada Goose Exits Simons, Victoria’s Secret Closures & Pier 1 Imports departures

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This week, Craig & Lee talk about Canada Goose pulling out of La Maison Simons, Victoria’s Secret quietly closing some of its Canadian locations, and Pier 1 Imports closing all of its Canadian stores.

The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players.

Sponsored by JLL Canada: What’s your ambition? Visit JLL.ca to see how JLL Canada is here to create rewarding opportunities and amazing spaces around the globe where people can achieve their ambitions.

Discussed this episode:

  1. Retail Insider BRIEF, including Canada Goose exiting La Maison Simons
  2. Victoria’s Secret Quietly Closing Canadian Stores
  3. Pier 1 Imports to Close All Canadian Stores

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Drone Delivery Set to Disrupt Traditional Distribution Channels in Canada

IMAGE: FREIGHTWAVES

Drone delivery is a disruptive technology which is redefining the traditional shipping/delivery market with great applications in the future for the retail industry.

Drones are able to deliver products faster, easier, and cheaper allowing commercial ventures to grow their revenues and their bottom lines.

Michael Zahra, President and CEO of Toronto-based Drone Delivery Canada, said the potential is huge for the retail industry.

“We are a drone logistics infrastructure provider. So it’s not just about the drone. Certainly the drone is part of the portfolio of course. We have four drones in our fleet,” said Zahra, adding that the company also has an automated management system, automated depots drones fly between, a software system called Flyte, which wraps it all together and allows it to work and operate safely in active, controlled airspace.

“What we’re seeing and what we’re doing are more B2B applications. There’s a retail spin to that. Business to consumer, like going to your home with a ecommerce, parcel will happen down the road in a year or two. But today the applications are more remote, rural, suburban business to business applications.”

He sees more retailers using this vehicle in the future to deliver products directly to consumers.

“Absolutely. We’re in discussions with a number of companies directly – retailers directly – or with their wholesalers or their logistics companies to be able to do that for them. The consumer might not see the drone,” said Zahra.

The company began in 2014 and went publicly-traded about three years ago.

“The industries that can use (drones) are extremely broad. The company is designed as a scalable, global operation. So we’re actively engaged with companies in Canada and outside of Canada,” said Zahra. “At a very, very high level the applications are either of social need or economic need. Social could be First Nations or remote communities. Humanitarian relief. Emergency supplies. These sorts of things. Economic can be retail, ecommerce, mining, oil and gas. Anything that’s for profit.”

The main uses are for when access is a challenge or when time is of the essence.

Drone Delivery Canada is a pioneering drone technology company with a focus on designing, developing, and implementing a commercially viable drone delivery system within the Canadian marketplace and internationally.

The first of its kind in Canada, the company is taking autonomous drone delivery to a new level. It has had compliant operator status with Transport Canada since 2017 and isn’t just focused on drones, but a fully integrated delivery system using unmanned autonomous vehicles (UAVs).

DRONE DELIVERY CANADA’S NEW CONDOR DRONE. PHOTO: BETAKIT

There are four drones in the fleet, the Sparrow, the Robin, the Falcon, and the Condor.

At full capacity, Drone Delivery Canada’s current setup will be able to manage and direct up to 1,500 drones for paying commercial and industrial customers around the world with drones that can deliver payloads of up to 180 kilograms up to 200 kilometres.

Recently, Drone Delivery Canada signed a deal with DSV Air & Sea Inc. Canada, the Canadian arm of the global transport and logistics company, to deliver goods on planned routes around its 1.2 million-square-foot warehouse complex in Milton, Ontario as a depot-to-depot solution.

Drone Delivery Canada has also signed a deal with the Edmonton International Airport to build out a drone delivery hub.

Cannabis Retail Prices Fluctuate Greatly in Canada Post-Legalization: Expert

IMAGE: HEALTHLINE

To evaluate cannabis legalization’s progress and success, Canadians need good information about legal product sales.

Unfortunately, most provincial cannabis agencies keep results overly secret. And some publicly available estimates lack precision.

One example of cannabis agency secrecy made the news last week. An investigation found cannabis oil prices vary “wildly” between provinces.

Inter-provincial price differences exceeded 50 per cent for half the products surveyed. The report couldn’t explain the “fishy” differences.

Newfoundland and Ontario Price Higher

But it’s no secret that legal pot costs more in, say, Ontario than Québec. Ontario’s cannabis agency marks-up prices by triple what Québec’s more profitable agency does.

We can see this by analyzing their 2018-19 financial statements. Québec’s retail revenues averaged 23 per cent above what it paid producers. By contrast, Ontario’s markups averaged around 77 per cent.

The corresponding figures were 38 per cent in Prince Edward Island, 55 per cent in New Brunswick and 90 per cent in NewfoundlandNova Scotia and British Columbia didn’t disclose enough detail to estimate markups. The Prairie provinces don’t have government-owned shops.

To see the markups’ impact, consider a hypothetical cannabis oil product the producer sells to agencies for $20 plus tax. In Québec, the product might have retailed at $30.41. That includes $4.95 for agency markup, $3.76 for provincial taxes and $1.70 for federal taxes.

In Newfoundland and Labrador, the same product could retail for 54 per cent more, at $46.98. That gives $19.35 to the agency, $5.21 to the province and $2.42 to the feds.

REVENUE BREAKDOWNS FOR HYPOTHETICAL OIL PRODUCTS, ASSUMING AVERAGE MARKUPS AND 150 MG OF TETRAHYDROCANNABINOL. ESTIMATED BY AUTHOR FROM GOVERNMENT REPORTS. (MICHAEL ARMSTRONG)

Undisclosed Provincial Priorities

Price differences aren’t inherently wrong. They just indicate different priorities. Higher markups provide more revenue for governments. Lower markups make legal products more competitive with illegal ones.

What’s wrong is that governments aren’t publicizing this key policy decision. Do Newfoundland and Ontario voters know their governments put more emphasis on making money than on taking business away from black-market vendors?

Are Nova Scotia and British Columbia residents curious about their politicians’ undisclosed priorities?

Unfortunately, this is just one example of provincial pot paternalism.

Consider a simple question: How much cannabis does your province sell?

Québec answers that question best. Its cannabis agency’s quarterly and annual reports are very detailed. New Brunswick is similarly open about its results.

Other provinces are less transparent. They issue brief quarterly announcements or terse year-end summaries. Supposedly “open for business” Ontario hasn’t provided a full quarterly or annual report since March 2018.

Not knowing provinces’ real numbers, we have to use federal approximations.

For example, Statistics Canada recently estimated that national cannabis sales hit $146 million in December, up eight per cent from November. It estimated provincial sales too.

Imprecise Federal Estimates

Such estimates are never perfect. But for cannabis, the margins of error can be substantial.

Consider total sales during legalization’s first six months. StatCan’s estimate for Prince Edward Island was bang on, coming within two per cent of the actual total.

But it undershot British Columbia’s sales by 50 per cent: $9.3 million estimated versus about $18.8 million actual.

It also underestimated Québec’s sales by 17 per cent for September to December 2018. And overestimated them by the same amount the next quarter.

The agency has since made changes. It apparently now gets sales data from Health Canada’s cannabis tracking system, rather than just store surveys.

Unfortunately, some problems remain. StatCan said it had “excellent” data for Nova Scotia’s October to December sales. But its estimate was 25 per cent too low.

StatCan’s estimates are certainly better than nothing. But even on a quarterly basis, they’ve only been accurate to within about plus or minus 35 per cent, 19 times out of 20.

PERCENTAGE DIFFERENCE OF STATISTICS CANADA ESTIMATES RELATIVE TO ACTUAL SALES FOR 19 QUARTERLY OR SEMI-ANNUAL PROVINCIAL REPORTS. CALCULATED BY AUTHOR. (MICHAEL ARMSTRONG)

StatCan also just compared cannabis usage before and after legalization. Its graphical summary indicates that before legalization, 23 per cent of consumers reported getting some of their cannabis from legal sources, versus 52 per cent after.

However, StatCan’s accompanying report notes the actual authorized cannabis user count before recreational legalization was only one-third of its estimate. And Health Canada’s website shows the number who actually bought cannabis legally was only one-seventh of the estimate. That’s a big inaccuracy.

Measuring Progress

Canada is ahead of countries like the United States and New Zealand on cannabis legalization, but a lot of work remains. Industry must reduce costs and improve quality. Governments must learn from each other’s successes.

But that’s difficult when key numbers are hidden or uncertain. Businesses, governments and voters need good measurements of legalization’s progress to know what changes are needed.

For example, the New Brunswick sales estimate jumped 18 per cent in December. Does that represent clever agency retailing? Improved government policy? Or statistical miscalculation? Currently, we can’t tell.

How can we decide where to go, if we aren’t even sure where we are?

Michael J. Armstrong

Michael J. Armstrong is an associate professor of operations research at the Goodman School of Business in Brock University. More recently he has been studying Canada’s cannabis legalization. He is particularly interested in how government regulations interact with business practices to either support or undermine policy objectives.

Danish Brand GANNI Looks to Enter Canadian Market with 1st Stores

GANNI (PHOTO: ARCHITECTURAL DIGEST)

Unique Copenhagen-based women’s fashion brand Ganni is looking to enter the Canadian market by opening stores. The brand recently launched in Hudson’s Bay as part of a brand awareness initiative in this country prior to Ganni’s direct-to-consumer retail launch.

As part of its expansion plans, Ganni is seeking retail spaces in the 1,000 to 1,500 square foot range for stores in major Canadian markets, with a focus on street-front spaces as well as within enclosed shopping centres.

Ganni was founded in 2000 by Frans Truelsen, a Copenhagen gallery owner. Husband-wife duo Ditte and Nicolaj Reffstrup now own nearly half of the company and drive creative direction for the brand. Ganni’s website says that the brand is intended to “fill a gap in the advanced contemporary market for effortless, easy-to-wear pieces that women instinctively reach for day in, day out.” Pieces are meant to mix-and-match, including feminine pieces paired with denim and sneakers.

Prices are in the ‘contemporary’ price-point for the collection which includes ready-to-wear, bags, accessories, and footwear. Prices on Hudson’s Bay’s website for Ganni includes dresses priced at $375, jeans at $295, and blouses priced between $225 and $645, depending on style. A small cross-body bag is priced at $295, a bi-fold wallet is $100 and a croc-embossed handbag is $675. A low-heel slingback shoe is $400 and a hiking boot is priced closer to $600.

LVMH-affiliated private equity firm L Catterton acquired 51% of Ganni in 2017 and the brand has been growing rapidly since. North America now represents Ganni’s largest market with more than 200 stores carrying the brand, and sales were said to have nearly doubled from 2018. Much of the company’s management team is female. In total, about 400 retailers globally carry the Ganni brand and to maintain a degree of exclusivity, Ganni is selective with distribution and targets upscale retailers that in some instances carry top-end luxury brands as well as contemporary offerings.

The brand has been piloting clothing rentals in Denmark and it’s unknown if it will be brought to Canada.

In terms of retail footprint, Ganni operates more than 20 stores in Denmark, Norway and Sweden according to its website. Ganni launched its first stores in the United States in the fall of 2019 in New York City (Soho) and Los Angeles (West Hollywood) and more are planned.

Now Ganni is looking to the Canadian market and has retained Aurora Realty Consultants for its real estate search under the direction of Jeff Berkowitz.

Ganni is expected to be a hit in Canada. The brand is now the number one contemporary brand in terms of sales at both Net-a-Porter and Browns and sales continue to grow internationally. Ganni’s colourful and diverse designs are already said to be performing well at Hudson’s Bay stores in Canada. Ganni launched last year at Hudson’s Bay as part of the Bay’s initiative to expand its brand assortment to include Scandinavian brands to increase foot traffic to the department store.

Ganni’s direct-to-consumer expansion in Canada is on trend as brands are increasingly seeking to open standalone stores. Being a retailer means that Ganni is able to control store design, merchandising and staffing, while interacting directly with its consumer base through social media channels while also gaining access to data. It’s unclear if Ganni will maintain its presence in Hudson’s Bay stores once the brand begins opening its own Ganni-branded stores. Pastel-coloured walls, globe-like light fixtures and tile flooring characterizes Ganni stores which appear casual and feminine in design.

We’ll follow up on this article once Ganni secures its first store location in Canada, which could be this year.

Canadian Retail Sales Growth Lowest in a Decade: Expert

New data from Statistics Canada show that total retail sales increased just 1.6% for the year 2019 overall. Here’s a summary of Canadian retail sales growth over the last few years.

Retail sales growth in 2019 was the lowest since 2009, when a decline of 2.9% was recorded during the Great Recession. It is also apparent that all the major retail sectors contributed to the slow going in 2019.

The underlying 12 month trend (green line the above chart) has been going downhill for most of the last two years. The shorter term 3 month trend (orange line) remains weak, and no relief is in sight going into 2020. Retail sales were up just 1.4% year-over-year in Q4 2019, the weakest quarter of the year.

Food & Drug

Food & Drug retail sales growth was just 2.0% year-over-year in 2019, a ten year low. For Q4 alone, retail sales increased only 1.4% year-over-year, indicating there’s still plenty of weakness in the sector at the start of 2020. While there recently was a slight uptick in the 3 month trend (orange line in the chart above), it’s still tracking below the underlying 12 month trend (green line).

Supermarkets & other grocery stores actually had a respectable Q4 2019, with retail sales up 3.7% year-over-year. This however was offset by a 6.4% sales decline at convenience stores and a mere 0.5% gain at specialty food stores.

Health and personal care stores had a tough Q4 2019, with retail sales declining 1.2% year-over-year, the worst quarter in years. Their retail sales were up only 1.5% for 2019 in total.

Store Merchandise

Retail sales growth in the Store Merchandise sector in 2019 was modest, with an annual gain of 2.2%. In Q4 2019 alone, sales were up an even more modest 1.8%. This is more or less good news however after the significant slide of the year before.

The short term 3 month trend (orange line in the chart) has been fairly steady compared to previous years. As a result, the underlying 12 month trend (green line) has been about flat.

PHOTO: FIRE AND FLOWER CANNABIS

There were a number of losers in the sector for 2019 overall. Retail sales at electronics & appliance stores finished the year down 9.9%, sporting goods, hobby, book and music stores declined 2.4%, and shoe stores were off 1.5%.

Thanks to the addition of cannabis stores, miscellaneous store retailers had the highest sales gain of 11.0% in 2019. General merchandise stores had a relatively good year with retail sales up 3.9%, and furniture stores also did well with a gain of 3.7%.

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

Automotive & Related is going nowhere fast. Retail sales in 2019 recorded an annual gain of only 0.7%, and current trendlines look weak going into 2020.

New car dealers account for over half of the sector’s retail sales. Despite a year-over-year gain of 1.8% in Q4 2019, their sales were still up 2.3% for the year. The much smaller used car dealers group however did much better with an annual retail sales gain of 6.5%.

Gasoline stations continue to be the biggest drag on overall Canadian retail numbers. Their sales declined 3.6% for the year. If gas stations were excluded, total Canadian retail sales growth would be up 2.2% in 2019 instead of 1.6%. In Q4 2019 however, gasoline stations were up a sliver of 0.04% – their only positive quarter of the year.

By The Numbers

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

Canadian E-Commerce Sales

StatsCan started providing ecommerce retail sales data in January 2016. While the amount of data is limited, some trends appear to be emerging. Here are some results.

Overall, e-commerce represented about 3.5% of Canadian retailers’ sales for year 2019, including both pure play sellers as well as the online operations of brick & mortar stores. Canadian consumers however also buy online from foreign websites which is not captured in these numbers.

Canadian e-commerce sales were up 17.3% year-over-year in Q4 2019. This was much higher than for location based retail which gained just 1.4%.

Note that location based retail is the same as that in the preceding “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. In 2019, electronic shopping and mail-order houses had an estimated $14.2 billion in e-commerce sales.

But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the year 2019, this group had an estimated $7.9 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $22.1 billion in e-commerce sales by Canadian operators in 2019, up 22.4% over the previous year. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian operations.

For electronic shopping and mail-order houses, an estimated 85.7% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that just 1.3% of their total sales are attributable to e-commerce.

In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 64.4% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce was 35.6%.

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

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

Chinese Variety Retailer YOYOSO to Enter Canada with Plans for Multiple Storefronts

Image: yoyoso

Chinese variety retailer YOYOSO is kicking off its entry into Canada this spring with its first storefront set to open in a shopping centre in Regina. A company representative told Retail Insider that YOYOSO will look to open 30-40 stores in Canada, and possibly more depending on performance.

YOYOSO’s first Canadian store will locate at the Southland Shopping Centre in Regina. The franchised location will be located in a 2,000-square-foot space in the mall which is anchored by Canadian Tire, Safeway, and a Cineplex cinema. Renderings of the YOYOSO store show a bright space characterized by the retailer’s blue-green branding that is eye-catching. Other major markets in Canada are also expected to see YOYOSO stores open as the brand further penetrates the Canadian market.

The retailer focuses on eight categories in its stores, including health and beauty/cosmetics, home accessories, fashion accessories, fashion bags, digital accessories, stationery & gifts, seasonal products, and imported food. A total of 5,000 products are available and YOYOSO says that 500 new items arrive in its stores each month. Target markets vary from mainstream value-seekers to even “white collar workers” and “the petty bourgeoisie” according to a post on the Southland Shopping Centre website. “As far as now, the YOYOSO stores have totally served more than 1 billion customers all over the world,” the post goes on to say. More than 100 designers create products for the retailer’s stores.

Pricing is kept reasonable in an effort to attract customers. “What makes consumers scream is the super cost-effective that all YOYOSO products are priced at USD 1-10 so that ensuring a great shopping experience for customers.”

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PHOTO: SOUTHLAND SHOPPING CENTRE FACEBOOK

YOYOSO was founded in 2014 and now operates more than 1,000 stores in 30 countries worldwide. Markets include China, Malaysia, Philippines, Australia, New Zealand, Mexico, Bahrain, Brunei, Georgia, Kuwait, India, South Africa, Hungary, Mongolia, Brazil, the United States, Guatemala, Ecuador, France, Russia, and Iraq. South Africa is a new market for YOYOSO, according to its website.

YOYOSO’s corporate website goes on to describe the retailer with a sense of optimism, and possibly unintentionally with some humour. YOYOSO’s concept is “Simple, Fashionable, Real” according to the website. “Give a big “Yes” to yourself when you open your eyes every morning!” says the website, going on to say that “The most beautiful time is what you have at this moment!” Youth is viewed as positive with YOYOSO making the claim that “Youth is unspeakable Luxury!”

“YOYOSO looks forwards to meet the best “YOU” at these most beautiful years, then let you to feel the dedicated international fashion based on youth and trend, which brings “YOU” a sunny & happy life,” is a final quote on the retailer’s company description page.

The company operates via a franchise network. Retail Insider connected with a company representative over WhatsApp and was provided information for this article.

YOYOSO is the latest Chinese variety retailer to enter the Canadian market, marking a unique trend that only started recently. In early 2017, Chinese retailer Miniso (which claims to be Japanese) entered Canada with plans to eventually operate 500 stores here (though things are said to be in turmoil still amid claims of misdeeds and fraud). Soon after, Chinese retailer Mumuso, which positions itself as being Korean, began its Canadian store expansion via the Vancouver market. Yet another brand, Ximivogue, entered Canada last year with another similar concept which includes gift items, home wares, fashion and accessories, and small electronics, among other categories.

Vancouver-based Oomomo, which sells primarily inexpensive Japanese-made goods, has been expanding rapidly into new markets in Canada that now include Vancouver, Edmonton, Calgary, Winnipeg and Toronto. Japanese retailer Daiso, which until recently had a store in the Vancouver suburb of Richmond, is said to be looking to open about 100 stores in Canada over the next several years.

The international variety retailers entering Canada are competing with a wide range of existing retailers. Given the broad nature of products within the variety retailers, value-priced stores such as Dollarama could take a hit in categories that include housewares and small gifts. Larger retailers such as Ikea, Canadian Tire and Walmart could also see competition as Asian variety retailers locate in urban centres. One of the advantages variety retailers have is the ability to operate in small footprints, while big-box retailers are for the most part absent from the downtowns of major Canadian cities.

YOYOSO is also expanding into the United States. Similar to Canada, a franchisee was secured for YOYOSO’s first US-based store which is located in Miami.

IMAGE: YOYOSO

Canada continues to be a hotbed of activity as international brands look to enter the country by opening stores. It’s unclear yet if there will be a slowdown at a time when more than 700 store locations are confirmed to be closing in Canada in the first quarter of 2020. Brokers and real estate professionals we’ve spoken with indicate that even more international brands will be entering Canada this year, including traditional players as well as as fitness and food and beverage concepts. Over the past three years, more than 110 international brands have entered Canada by opening stores. In 2017, a record-breaking 50+ brands entered Canada by opening stores and in both 2018 and 2019, about 30 international brands opened their first Canadian locations with plans for further expansion in new markets.

Tim Hortons Changes to ‘Roll Up The Rim’ is Coffee Chain’s Latest Misstep: Opinion

PHOTO: TIM HORTONS

After a disastrous campaign last year, Tim Hortons finally got the message and opted to make changes to its 35-year-old Roll Up the Rim campaign. But its new approach is not that simple. Tim Hortons’ iconic contest is now much shorter and incredibly more complicated. Given its last quarter financial results with same-store-sales dropping by more than 4%, Tim Hortons desperately needs to make its campaign work. But the famous chain may have yet again missed the mark.

From its protein play with Beyond Meat, to its tweet to Royals offering free coffee, to its costly ill-designed lids, Tim Hortons has had a series of disastrous marketing decisions. Its latest Roll Up the Rim move can be added to the list. The campaign is confusing and will likely end up becoming a new source of frustration for its customers.

The campaign will take place over four weeks, from March 11 to April 7, and will run in two phases. Tim Hortons intends to give away 1.8 million free reusable cups on the eve of the campaign, March 10, before the contest gets underway.

Roll Up the Rim To Win® is back starting March 11 with a combination of paper, digital and sustainable ways to play (CNW Group/Tim Hortons)

Beginning on March 11, customers who buy a beverage will get to roll up their rims for the first two weeks. Customers with a loyalty card will get an extra roll online. For the last two weeks, the only opportunity to win will be online through digital play. Tim Hortons has also eliminated the defeating “Please Play again” by giving every cup a chance to win $100k, but only if you have the Tim Hortons app. Odds to win are a little lower than usual, but at least, you don’t really lose until the end of the campaign when the draws occur.

The total estimated retail value of all digital and cup prizes this year is $29.9 million over the 4 weeks, versus the $71.3 million worth of prizes last year for the 10-week long campaign. So, if you don’t win right away, you need to verify results and see if you won the draw. Confusing enough?

Tim Hortons clearly wants to check all the boxes without committing to anything. When designing these promotions simplicity and relevancy to the brand are typically an emphasis. With this new approach, Roll Up the Rim 2020 does neither.

TIM HORTONS BEYOND MEAT BURGER WAS AXED AFTER LESS THAN A YEAR ON THE MENU. IMAGE: TIM HORTONS

By going hybrid, Tim Hortons remains in the world of the in-betweens. In today’s market and context, the environment is non-negotiable for a greater number of consumers, especially for the younger generations. Millennials and GenZs combined represents almost half of the Canadian population and many of them are distancing themselves from Tims for a cup of joe, or tea. For Tims to continue its market dominance it needs them. This latest campaign will likely not convince them to visit Tims more often. For them, sustainability is not about ticking boxes but more so about values and committing to conducting business in a more sustainable fashion.

The physical nature of the campaign, rims and cups and all, has not allowed Roll Up the Rim to age well. As the promotion is typically run in the middle of winter, all of the used Tim Hortons’ cups appear all over the place as the snow melts and spring clean ups across the country begin. Every year we are reminded of the actual cost of the promotion to the environment. What has changed over the years is how consumers are connecting the brand with cups littering the environment. Irresponsible consumers can be blamed, but more are now expecting companies to reduce environmental risks while designing promotions.

 

 
 
 
 
 
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Resolve to reuse ☕️ 📸: @danny.lincoln

A post shared by Tim Hortons (@timhortons) on

One significant change is the length of time the campaign will last. This year’s campaign will last 4 weeks as opposed to the usual 10 weeks. This may indicate that Tim Hortons is seeing 2020 has a transition year, testing the market with how it will react to its new approach. Given that changes are already at least 5 years too late, one must wonder if Tim Hortons has any time to experiment. Digitizing the campaign, at least partially, was long overdue.

Tim Hortons is attempting to please an aging customer-base while flirting with younger generations, but it falls short. Tim Hortons’ attempt to clap with one hand fails to point to its core value which is about community. That’s what’s unique at Tim Hortons. Over the years, communities have changed and are expecting something different. Tim Hortons, on the other hand, is still struggling with change when it comes to marketing promotions.