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.
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.
There’s still time to register for the annual which will be held on March 10-11 at the Metro Toronto Convention Centre.
The highly anticipated event will feature more than 100 industry speakers and 50+ immersive exhibitions and is expected to see more than 3,200 attendees over the two days. []
DX3 is Canada’s biggest retail, marketing, and technology event that will feature networking opportunities as well as international speakers, expert insights, innovative solutions, workshops and tech demonstration.
The list of attendees is extensive and includes representatives from some of the biggest brands globally, not to mention plenty of big Canadian names.
The conference includes the Retail Summit which features some of the most innovative retail professionals as well as tech experts who help retailers do what they do best, and the full agenda .
Right now you can get a $100 discount on All-Access tickets (which includes access to the Retail Summit). Simply use code: CONF2020
Among the many Retail Summit Sessions are:
The Evolution and Future of Subscription Retail
Moving to the service-based model from a product-based model
Subscription vs. transactional
Managing customer expectations and focusing on the customer experience
Speakers will include: Joe Martin, CEO, BoxyCharm and Lena Helmts, Manager, Retail Channels, Porsche Cars Canada Ltd.
Retail Cannabis – Informing Consumer Strategy
Bringing confidence to consumers in an unstable category
Discussing the limitations of marketing-facing content and how to overcome it
Discussing approaches to capturing opportunistic consumer market share
How do you evaluate measurement impact, and track customer loyalty?
Speakers will include: Jo Vos, Managing Director, Leafly Canada, Jon Kamin, Chief Revenue Officer, Lift & Co, Ashley Newman, CEO, Queen of Bud, Graham Wolch, Director Sales, Aphria, Dave Rewak, Senior Director, Consumer Insights & Brand, Ontario Cannabis Store
From big brands to new retailers, DX3 is an event for new innovations, expert insight and learning from those who are already successful and those changing the face of retail and marketing today. Workshops are free for everyone attending DX3, also those with show floor tickets.
Some of the many Workshop Sessions include:
Sales Effectiveness in the Retail Environment
Collaboration between marketing and sales
Understanding the buying process
Impact of digital tools
Strategies; Asking the right questions, relationship building, etc
Speakers: Erica Manen, Sales Enablement; Training Manager, 2BC & Associates
BRANDS MAKING MOVIES: How Traditional Storytelling Formats Are Helping Marketers Reach Their Customers
Understand the evolution of brand entertainment and how it’s different from traditional advertising
Determine the ROI of brand entertainment and its impact on emotion and memory
Garner lessons from early trailblazers and industry case studies
Discover where to start with your brand entertainment efforts
Speaker: Dan Fricker, Senior Operations Lead, Creative, Shopify
Tickets to DX3 are now available to purchase, and. Get $100 off the All-Access tickets by using code CONF2020, and attend the show floor for FREE by using code dx3showfloor.
Below are links to register and learn more about DX3’s upcoming Toronto event.
Three years after launching their franchise concept in the United States Deka Lash is expanding into the Canadian market with future plans to grow internationally as well.
Jerel Tomasello, President and COO of Deka Lash, told Retail Insider that the company, which specializes in eyelash extensions, expects to open locations this year in the Greater Toronto Area.
He said two franchisees are currently looking for locations in the Toronto area and expect to open before the end of the year.
“They’re each looking at three locations each probably over a period of about three years,” said Tomasello. “We anticipate probably six to 10 locations total in the Toronto market. We also have other potential franchisees looking in Vancouver, Calgary, Edmonton, Ottawa.
DEKA LASH STORE. PHOTO: MSN.COM
“We think we’ll have somewhere between 20 and 40 locations in Canada. Our goal is to be in 300 locations (in North America) within three years and our goal is to have 1,000 locations worldwide in 10 years. We think within the next two years we will have locations outside of North America.”
There are currently 82 locations in the United States.
Tomasello said the company typically looks for real estate in places where people have disposable income as well in places where people want to look and feel good. Typical neighbours are boutique fitness and other beauty concepts as well as grocery stores.
Deka Lash was founded in 2011 by Jennifer and Michael Blair just outside of Pittsburgh in Shadyside, Pennsylvania.
“They owned a teeth whitening business at the time and Jennifer was looking for something else to do. She heard about this new thing called lash extensions at the time,” said Tomasello. “She took a class to do it herself and put out a Groupon and a week later she had 300 appointment requests for Groupon.
DEKA LASH STORE. PHOTO: DEKA LASH
“She got turned onto it because she had gone to Las Vegas and got lash extensions but couldn’t find anywhere back in Pittsburgh where she lived that provided a service. And the place that did do it was super expensive. So she wanted to make it affordable. It started there in the back of a salon in one room and then eventually got a salon of her own and grew to four stores.
“And then in early 2016 they decided to bring in franchising and we opened our first franchise location in January 2017 in Salt Lake City, Utah.”
Deka Lash provides semi-permanent eyelash extensions featuring a unique in-studio experience, online booking and extended hours including weekend appointments. The company says Deka Lash’s highly-trained and licensed lash artists take their time to ensure quality applications, individually designed to fit the client’s eye shape and lifestyle. With the recent launch of TrueXpress, the first-to-market service designed to provide time-constrained women a fast approach to have beautiful lashes, Deka Lash is setting the standard for beautiful eyelashes, it says.
“In just three short years and with more than 200 franchises awarded in the United States, Deka Lash is well on its way to joining the ranks of some of this country’s most noteworthy franchise companies,” said Michael Blair, co-founder and CEO of Look Good Brands, parent company of Deka Lash. “It is now time to make Deka Lash a global brand.”
“Beauty is a universal language that resonates around the world. This makes the Deka Lash brand of services offered through its unique membership model an attractive business with incredible international growth opportunities,” said co-founder and Chief Experience Officer, Jennifer Blair.
In 2019, Deka Lash earned the rank of #138 on Entrepreneur Magazine’s Fastest Growing Franchise List.
The name Deka comes from the Blairs’ daughters Demi and Karli. The first two letters of their names make up the brand’s name.
WAREHOUSE ONE, ST. VITAL CENTRE, WINNIPEG. PHOTO: WAREHOUSE ONE
Winnipeg-based denim retailer Warehouse One is expanding its presence in Western Canada after having recently opened two stores in major shopping centres, with more to come. The retailer is seeking to shift some of its operations to highly productive malls that feature ample foot traffic.
Founded in 1977, Warehouse One has created a niche within the Canadian denim market with a chain of 124 stores across Canada that focus on private label men's and women's denim, casual clothing, and accessories. Warehouse One offers a wide selection of denim in the latest styles and washes with multiple inseams.
The chain has typically focused on operating stores located in open air strip malls, power centres, and regional shopping centres in smaller towns such as Gander, Newfoundland, Medicine Hat, Alberta, and Timmins, Ontario. The retailer is now expanding further into major markets with stores in premium malls.
WAREHOUSE ONE, ST. VITAL CENTRE, WINNIPEG. PHOTO: WAREHOUSE ONE
JLL’s Mid-Year 2019 Retail Outlook research report indicated that in Western Canada, retail landlords are redeveloping retail spaces, repositioning existing tenants or bringing new retailers to stay competitive. As a result, the shifting retail environment has created an opportunity for smaller chains such as Warehouse One to open locations in prime shopping malls with more favourable leasing terms as vacancies become common amid numerous store closures.
Neil Armstrong, Warehouse One President, said, "For us, this change in the retail climate has created opportunities that may not have been available to us previously." Warehouse One has seized this opportunity with two new mall locations. After operating a store on Dakota Street in Winnipeg for over 30 years, the store recently moved across the street into St. Vital Centre which is anchored by Hudson’s Bay, Walmart Supercentre and Sport Chek. The new Warehouse One store spans 3,000 square feet and is located in a prime location in the mall near the busy Food Court. The shopping mall attracts more than 170,000 shoppers per week.
Warehouse One also recently opened a 3,700-square-foot store in Edmonton at West Edmonton Mall, located in the mall’s Phase One near the Winners and HomeSense superstore. According to the latest Retail Council of Canada Shopping Centre Study, the mall is the second busiest in the country with more than 30 million visitors annually. By diversifying into more mall locations, Armstrong said, "It’s a chance to increase revenue by double digits. We may be paying a bit higher in rent however the additional revenue will help to offset costs."
WAREHOUSE ONE, ST. VITAL CENTRE, WINNIPEG. PHOTO: WAREHOUSE ONE
WAREHOUSE ONE, ST. VITAL CENTRE, WINNIPEG. PHOTO: WAREHOUSE ONE
Both new stores represent the newest generation of Warehouse One. The stores are bright and spacious with the use of modern elements such as metal and faux wood. The fixtures are all on casters so that as the merchandise changes, the footprint of the store can be easily modified. To assist with moving fixtures quickly and efficiently and also cleaning, the entire store features laminate flooring. The fitting room area is unisex which allows the rooms to be better utilized reducing customer wait times. There is also a lounging space in the fitting room area that provides seating areas for the entire shopping party. The stores provide a great balance between merchandising and lounging -- this creates an enticing space for shoppers to spend more time in the store and hopefully translating to increased sales.
Warehouse One also recently relocated from a power centre to a major shopping centre in Nanaimo BC when the retailer moved its store into the Woodgrove Centre.
Looking further into 2020, there are more mall opportunities for Warehouse One. This spring, a store in Grand Prairie Alberta located in Prairie Plaza will move into the busy Prairie Mall. The store will be located between Visique Eye Care and Hallmark.
Warehouse One is also focusing on customer service through its in-store Jean Enthusiast’s that are provided with customized denim product knowledge training to help customers find the right pair of jeans.
Canadians are becoming more value-conscious and frugal with market polarization accelerating in the Canadian retail sector. Luxury and value retailers are growing while mid-priced retailers such as Warehouse One are being squeezed. Adapting to the changing retail landscape has helped Warehouse One stay ahead of the competition. We’ll follow Warehouse One as it continues to adapt and look to the future.
Vancouver – SilverChef, Canada’s leading hospitality financier, announced the finalists of its 2020 Hospitality Awards program. Six hospitality owners have been shortlisted to go through to the finals, which will take place on March 3rd, at the Restaurants Canada Show in Toronto.
Finalists have been acknowledged for setting new standards in the areas of innovation, sustainability, and social responsibility and impact, and now have an increased chance of winning $5,000 of commercial equipment to help grow their business.
The finalists under each category include:
Communitarian Award: Hospitality operators who give back either through charitable giving or hiring practices that impact their local communities.
Momentum Award: Establishments that have made the largest leap forward in terms of sustainability or environmental conservation (e.g. food waste management).
Entrepreneur of the Year:New businesses that have introduced something exciting, either with technology or service offering. This award recognizes the obstacles faced by hospitality entrepreneurs, and highlights the winner’s achievements in their first year of business.
Hospitality Business of the Year: From the six finalists, the hospitality operator with the highest overall score will also be crowned the Hospitality Business of the Year.
Robert Phelps, President of SilverChef, said: “We’re thrilled to celebrate our finalists who represent some of Canada’s most innovative and impactful hospitality leaders. As well as recognizing hard-working entrepreneurs in the industry, our awards will bring together a community of innovative leaders at the Restaurants Canada Show.”
Entry to the awards was open to all hospitality operators across Canada, via The SilverChef Hospitality Awards website. The finalists can also be viewed at this website.
The awards judging committee was comprised of industry peers, veterans, and mentors, and winners will be announced at an awards ceremony at the RC Show 2020 on March 3rd, 2020, in Toronto.
Learn more about our judges and the awards, by following along on Instagram @silverchefca, Facebook @SilverchefCanada Hashtag #ImpactfulHospitality.
About SilverChef
At SilverChef our job is to provide flexible equipment finance to help hospitality entrepreneurs grow their businesses. Our dream, though, is to help you achieve yours. Founded in 1986, we’ve helped more than 50,000 hospitality businesses around the world to bring their business dreams to life.
A proud Certified B Corp, SilverChef is part of a movement that is using business and profit as a force for good. B Corp businesses balance profit and purpose through verified social and environmental performance, public transparency and accountability. Through our partnership with Opportunity International, and with the support of our people, customers and partners, we’ve helped to lift 1.5 million people out of poverty – and counting.
Trendy, Denmark-based multi-brand fashion retailer Bestseller has shut five of its Canadian stores after entering the country in 2015. The store locations that closed were in the Montreal area and a Winnipeg location were recently rebranded as ‘Jack & Jones’.
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. Bestseller is also the name of the parent company for brands including Jack & Jones, Vero Moda, Noisy May, Y.A.S., Only, Selected, and others. 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.
Canada was the first international market for Bestseller when the retailer launched its concept here nearly five years ago. Stores carried fashions for men and women from Bestseller’s roster of designer brands. While Bestseller’s mono-brand stores will continue to operate in Canada, two of Bestseller’s brands ADPT and Studio 75 were exclusive to the multi brand concept stores in Canada when they opened.
Retail Insider reader Dave Donacin notified us of the store closures.
CF CARREFOUR LAVAL. PHOTO: BESTSELLER
Bestseller’s first Canadian store opened in September of 2015 at CF Carrefour Laval in suburban Montreal, spanning nearly 7,400 square feet on one level. A second location opened a week later at Montreal’s CF Galleries d’Anjou. In October of 2015, a location at Place Ste-Foy in Quebec city opened along with a store at CF Promenades St. Bruno near Montreal. In the spring of 2016, Bestseller opened its first store outside of Quebec at CF Polo Park in Winnipeg — the Winnipeg store is operational under a Jack & Jones nameplate.
CF CARREFOUR LAVAL. PHOTO: BESTSELLER
In 2015, Retail Insider interviewed a representative from Bestseller who said that the retailer planned to open about a dozen stores in Canada. The goal of the multi-brand store concept was to showcase Bestseller’s roster of brands as part of an effort to create name awareness to consumers. Given the strength of mono-brands in the eyes of consumers, Bestseller’s multi-brand model is in some instances becoming obsolete. At the same time, the Bestseller retail concept was intended to be a testing ground for its sub-brands to determine if mono-brand stores should open within close proximity to Bestseller’s storefronts.
Canada Goose Pulls Out of La Maison Simons
PHOTO: CANADA GOOSE
Toronto-based outerwear and fashion brand Canada Goose has begun pulling some of its wholesale accounts as it continues to open standalone stores globally. Large-format Quebec City-based La Maison Simons, which sold tens of millions of dollars of Canada Goose jackets annually, recently lost the brand which will hit Simons’ bottom line this year.
Montreal correspondent Maxime Frechette noted last week that the Canada Goose section at Simons’ Montreal flagship was vacant, and employees at Simons’ West Edmonton Mall store confirmed that Canada Goose would no longer be carried in the chain’s stores. A couple of Goose jackets remained at Simons’ West Edmonton Mall store as was seen by Retail Insider over the weekend. Canada Goose opened a standalone store at West Edmonton Mall in the summer of 2019 and an impressive Montreal flagship store in the fall of 2018.
CANADA GOOSE, WEST EDMONTON MALL. PHOTO: WEM FACEBOOK
Canada Goose opened its first Canadian store at Toronto’s Yorkdale Shopping Centre in the fall of 2016 and the brand has since opened 20 more stores globally. Of those, seven are in Canada including units at CF Pacific Centre in Vancouver, Banff, Calgary, Edmonton, Toronto, and Montreal. An eighth Canadian store will be announced for CF Toronto Eaton Centre soon in a retail space recently vacated by Apple which relocated downstairs in December.
The direct-to-consumer trend is of concern to many multi-brand retailers as brands choose to open stores to engage with consumers. We expect to see more of this in 2020 and will soon report on another well known Canadian fashion brand which will also be opening its first standalone store with details to follow.
CANADA GOOSE CF PACIFIC CENTRE – PHOTO LEE RIVETT
CANADA GOOSE CF PACIFIC CENTRE – PHOTO LEE RIVETT
CANADA GOOSE CF PACIFIC CENTRE – PHOTO LEE RIVETT
Orchestra to Shutter Only Canadian Storefront in Montreal
MONTREAL EATON CENTRE STORE. PHOTO: MAXIME FRECHETTE
French children’s and maternity retailer Orchestra will shutter its only store in Canada next month after opening at Montreal Eaton Centre in 2015. The Orchestra concept was expected to open stores throughout Canada along with a US expansion that appears to have been halted as well.
Orchestra was founded in France in 1995 and the retailer has grown over the years. The retailer’s business model is unique, and includes a subscription-based model that provides a 50% discount to members for an annual $100 fee.
PHOTO: MAXIME FRECHETTE
In 2011, Orchestra launched its Club Orchestra concept in Spain, France, Belgium, and Switzerland. That was followed with stores in Turkey and China. In 2012, Orchestra took over Belgian maternity wear and baby accessory brand Prémaman, which led to an expansion of that brand into European markets. In 2015, Orchestra expanded into Morocco, Canada, and Mauritius. That year, Orchestra had nearly 560 stores in 40 countries globally and had more than three million subscribers.
Retail Insider Montreal correspondent Maxime Frechette notified us of Orchestra’s store closing after visiting the store this month. The retailer’s US website has been shut down though it says there is still a store at the King of Prussia centre in suburban Philadelphia, which opened in 2017 and was the first US store.
The children’s fashion market has seen considerable competition in Canada from a range of retailers. Households stretched financially have the opportunity to buy clothing and other items from inexpensive retailers such as Walmart, Justice, and Old Navy as well as off-price retailers such as TJX Group. Some households are also buying kids clothing second-hand. Other standalone retail concepts in Canada such as Okaïdi have opened store locations over the past several years. At the same time, retailers such as Jacadi have been closing stores in Canada, with Jacadi having vacated its CF Sherway Gardens location in Toronto last month.
Luxury Brand ‘The Row’ to Open Montreal Men’s Concession
THE ROW, HOLT RENFREW OGILVY. PHOTO: MAXIME FRECHETTE
The Row is a high-quality pricey brand known for its sleek, simple designs that include exceptional fabrics and leather. The brand produces both men’s and women’s fashions and was started in 2006 by Mary Kate and Ashley Olsen. The Row’s men’s line launched in 2011 with a comprehensive selection coming in October of 2018. On Holt Renfrew’s website, a men’s The Row suit is priced at $5,000 and is also available at Holt Renfrew’s Vancouver store.
Holt Renfrew is investing a fortune into its 250,000-square-foot Holt Renfrew Ogilvy store, and the investment is a risky one. Holt Renfrew Ogilvy, which will be completed in April, will be the largest luxury store of its kind in Canada and one of the largest in North America. On the men’s floor at Holt Renfrew Ogilvy, boutique spaces for Givenchy and Fendi have yet to open and a planned Celine men’s concession appears to have been cancelled.
Article Opens First Canadian Warehouse and Expands In-House Delivery Program
PHOTO: ARTICLE
Online mid-century modern inspired furniture retailer Article has opened its first Canadian distribution facility in Vaughan, near Toronto. The 170,000-square-foot warehouse facility was built to increase local product availability, decrease delivery times for Greater Toronto Area (GTA) customers, and better support eastern Canada order fulfilment.
“We’re committed to delivering our entire catalogue to customers fast. Having products warehoused where our customers are located is a major competitive advantage,” said Article Co-Founder and CEO Aamir Baig. “In 2019, 70 per cent of orders were delivered in two weeks or less. Extending our distribution network to Canada will allow us to provide a faster, and more reliable delivery experience.”
PHOTO: ARTICLE
This recent addition to Article’s existing network brings the company’s combined capacity to more than 1.2 million sq. ft. Article is also introducing its in-house delivery program, Article Delivery Team (ADT), to serve customers within the GTA.
As part of the in-house delivery program, Article delivery trucks are staffed with employees who engage directly with customers to solve common inquiries on the spot, such as shipping alternate product sizes or colours. Article’s in-house delivery program improves customer experience while reducing average delivery times by as much as two days. So far it has been successful in Vancouver, Seattle, Los Angeles, and New York.
The Toronto warehouse and ADT team are currently operational and will ramp up deliveries over the coming weeks.
Founded by four engineers, Article’s proprietary technology removes inefficiencies in the traditional retail model to make the customer experience simple and easy. Since launching in 2013, the company has delivered more than 500,000 orders to customers across the U.S. and Canada.
Eataly Opens 4th Restaurant in Toronto
EATALY’S TRATTORIA MILANO RESTAURANT. PHOTO: EATALY
Italian-themed grocerant concept Eataly recently unveiled its fourth restaurant space at the Manulife Centre in Toronto. The Milan-themed ‘Trattoria Milano’ overlooks busy Bay Street at the southwest corner of the second level of Eataly, which opened to fanfare in November of 2019.
Trattoria Milano is described as being Eataly’s ‘upscale’ dining destination that currently serves dinner and lunch. The 76-seat space will also introduce ‘Cultura’, which is a speaker series that will include talks by cultural thought leaders, followed by an Italian meal. Chef Luca Lussoso, who was raised in Milan, relocated to Toronto in 2012 and worked in some of the city’s top Italian kitchens before joining Eataly in 2019.
EATALY, TORONTO. PHOTO: CRAIG PATTERSON
EATALY, TORONTO. PHOTO: CRAIG PATTERSON
EATALY, TORONTO. PHOTO: CRAIG PATTERSON
The new restaurant offers traditional Milanese cuisine as well as Northern Italy-inspired wine and spirits in a space featuring light grey microsuede walls. Art prints from Enzo Mari’s Nature Series, including La Mela and La Pera, hang alongside his six Simboli Sinsemantici. Other prints on the walls include pieces from 35-year-old artist Olimpia Zagnoli, whose designs have graced the cover of The New Yorker magazine as well as on tote bags at Milan’s first Uniqlo store. Vintage displays in the restaurant include street maps and tourist brochures from 1970s Milan, as well as mid-century lighting.
The 50,000-square-foot Eataly location at Toronto’s Manulife Centre has been consistently busy since opening about three months ago. Retail Insider profiled the space last year, which spans three levels and includes a concourse-level brew pub, a street-level cafe space, and a second-floor grocerant that includes an assortment of grocery and food items as well as prepared foods and sit-down dining options. A source said that Eataly representatives were recently in Toronto again to check on a space for a second location in the city which would span about 25,000 square feet on one level. Montreal and Vancouver are also said to be in the running if Eataly can find the right space in either or both cites.
World’s Largest Sticker Store Launches History of Stickers Museum & Stickers: RePEELed in Innovative Brand Strategy
PHOTO: STICKERYOU
Unique Canadian sticker brand StickerYou has launched the History of Stickers Museum and Stickers: RePEELed sticker art exhibition at the world’s largest sticker store on Queen Street West in Toronto.
It’s part of an innovative, 3-dimensional brand strategy that showcases the history, development, and influence of the adhesive sticker, from revolutionizing the UK postal system in the 1800s to inspiring countless pieces of street art from around the world today.
The museum houses artifacts like a UK penny black stamp from 1840, an original decal vase from the 1800s, fruit crate labels from the 1910s, Wacky Packs stickers from 1974, a vintage Velvet Underground album with an Andy Warhol-designed banana sticker on the front and more.
The exhibit, curated by editors of the seminal sticker zine Peel Magazine, Dave and Holly Combs, includes works from artists including Shepard Fairey, who celebrated the 30th anniversary of his iconic Obey Giant sticker-turned-brand last year, Rodger Beck, Robots Will Kill, Matthew Hoffman and more.
PHOTOS: STICKERYOU
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PHOTOS: STICKERYOU
PHOTOS: STICKERYOU
PHOTOS: STICKERYOU
PHOTOS: STICKERYOU
Founded in 2008, StickerYou is a global e-commerce leader in custom-printed, die-cut products that empower businesses and consumers to create professional-grade materials for marketing, packaging, decor, and personal expression. In 2019, StickerYou opened StickerYou: The Store in Toronto. This is the company’s first retail location and the largest sticker store in the world, featuring a unique, 3-storey high sticker-bombed design on the storefront.
B.Beautiful Studio Kicks off 2020 Partnership with Rethink Breast Cancer
During particular months of the year, the beauty and lifestyle studio will be donating proceeds earned from popular services to help combat breast cancer.
Throughout the months of February and October, 50% of the proceeds on all High Definition Brow services at B.Beautiful Studio will be donated to Rethink Breast Cancer. In the month of June, 10% of the proceeds from all microblading services will be donated to Rethink.
IMAGE: CURE FOUNDATION
By channeling retail therapy into cause marketing, Rethink Breast Cancer and B.Beautiful recently collaborated to arrange a microblading treatment for a breast cancer survivors.
Microblading is one of the hottest trends in eyebrows right now. While a technician must be licensed to perform this service in the United States, one does not need a licence to offer this service in Canada.
“I think anyone performing microblading needs to be a licensed aesthetician so they can understand different skin types, skin conditions and how they would react to a technique like microblading that essentially is tiny scratches to the skin,” says Brittni, owner of B.Beautiful Studio. “If not done correctly, you can leave permanent scarring.”
In addition to microblading, the most popular service at B.Beautiful Studio is High Definition Brows, which combines simple brow shaping with a brow tint. It is quick, has no commitment, and can last 4-6 weeks.
This retail partnership hopes to encourage people to be mindful of their health, the validity of their beauty service providers, and ultimately raise funds and awareness for breast cancer, in the hopes of one day conquering it.
The struggling Victoria’s Secret brand has been quietly shutting down some of its stores in Canada.
The latest is the lingerie and bra retailer’s location in CF Market Mall in Calgary after it shut down operations in CF Sherway Gardens in Toronto, CF Richmond Centre near Vancouver, St. Vital Centre in Winnipeg, CF Markville near Toronto, White Oaks Mall in London and CF Rideau Centre in Ottawa. A ‘Pink’ by Victoria’s Secret also recently closed at Mapleview Centre in Burlington Ontario. Several more closures are planned so consider the best press release distribution service for your online store.
“In the not too distant past it was one of the most anticipated store openings in Calgary when Victoria’s Secret opened at CF Market Mall. The intimate apparel trade is very competitive in the Calgary market with over 30 outlets ranging from chain retailers such as La Senza to 16 independents across the city. Not to mention the lingerie departments in the department stores such as Hudson Bay, Nordstrom, and Holt Renfrew,” said Michael Kehoe, broker of Fairfield Commercial Real Estate in Calgary, who specializes in the retail market.
MAP OF CF MARKET MALL, CALGARY. RED ARROW POINTS TO VACANT VICTORIA’S SECRET SPACE. PURPLE ARROWS INDICATE THE COMPETITION.
“Calgary is well served in this fashion segment and the departure of a category dominant player like Victoria’s Secret in one of the city’s major malls will not go unnoticed. The 13,000-square foot Victoria’s Secret retail outlet and their junior concept PINK, a 4,000-square-foot store at CF Chinook Centre are serious players at Calgary’s dominant shopping centre. Even with the CF Market Mall Victoria’s Secret store closure, Alberta has more intimate apparel retail space per capita than any other Canadian province.
Alberta is a hot spot for intimate apparel retailing with just under 300,000 square feet of lingerie focused retail space spread over 91 stores ranging from local independents to national and international chains not including the lingerie departments in the major department stores.”
A crown ring is unquestionably a good choice if you want to appear precious and distinctive in your own style. will unquestionably make you perfect.
Recently, it was announced that Victoria’s Secret will have a new owner as L Brands was selling the high-profile retailer to private equity firm Sycamore Partners, who are buying 55 per cent interest for about US$525 million.
VICTORIA’S SECRET, CF POLO PARK, WINNIPEG. PHOTO: ACCESS WINNIPEG
The lingerie brand has also experienced bad publicity as Les Wexner, who founded the parent company, has been linked in the media with the late financier Jeffrey Epstein, who was accused of sex-trafficking.
In Calgary, Victoria’s Secret/PINK opened in CF Chinook Centre on May 5, 2011 while the retailer opened in CF Market Mall on October 17, 2013.
Darryl Schmidt, Vice President, Retail Leasing in the Western Portfolio Office of mall operator Cadillac Fairview, said the closure of the Victoria’s Secret store in CF Market Mall was not surprising.
“Really for the last 24 to 28 months we’ve seen deep double-digit comp sales declines in Victoria’s Secret across the entire portfolio from British Columbia all the way to the Maritimes. As we got closer to some of the expirees it was becoming apparent that there was going to be a disconnect between their rental expectations and our rental expectations given their declining sales performance,” said Schmidt, adding that he expects a few more closures in the portfolio.
VICTORIA’S SECRET STORE, CF TORONTO EATON CENTRE. PHOTO: SHUTTERSTOCK
“Really we’ve been seeing this storm coming for a while. Some of it speaks to the fact that when we did that first tranche of business they thought that Victoria’s Secret was going to be 10 to 15 stores in Canada then it was phenomenally successful and they wound up opening 40 plus stores. I think they cannibalized some of their own market share.
“With the announced bankruptcies since January 1, 2020 of Carlton Cards/Papyrus, Thomas Sabo, Things Engraved, Bench, Links of London, La Senza depending on how the Chapter 7 Petition goes, and Pier 1, suffice it to say it’s been a very rough start to the year.”
VICTORIA’S SECRET FASHION SHOW THAT HAS SINCE BEEN CANCELLED. PHOTO: VICTORIA’S SECRET
The CF Market Mall Victoria’s Secret location, which was about 14,200 square feet, closed at the end of January.
“It’s a large block. So we’re not inclined to lease it in one chunk. We’re probably going to demise it to two units. We’ve got one group that we’re quite far down the road with the lease for half the space,” said Schmidt. “It’s a known commodity and I think it will be a good addition to the shopping centre.”
Rob Walker, Senior Vice President/Partner with Colliers International, who specializes in retail, said Victoria’s Secret has closed about 55 stores in North America but it’s less than five per cent of its total stores.
“You’re never going to bat 1,000,” he said. “It’s just the whole course of business. This market has slowed. There’s no doubt about it. The costs have escalated, and those property taxes are having a devastating effect on the retail industry. So we’ve had a reduction of sales and increasing costs. It results in store closures. It’s as simple as that,” said Walker.
“They’ve been in a freefall from a sales perspective and part of the reason for that is some of the controversy they’ve been embroiled in and one of them is their CEO appears to have been good friends or associated with Jeffrey Epstein. So that was a problem. Recently as well they’ve been in the news because one of their senior executives had a number of women come forward alleging that he conducted himself inappropriately with a number of staff over the years,” said Winder.
He added that Victoria’s Secret’s positioning as super sexy has faded. Beauty was defined as women being six-foot-one, white, 100 pounds. But Winder said society has changed and other brands have embraced inclusivity.
“Beauty now is any sexual orientation, any colour, any size, any weight, anything. Other brands have embraced this type of positioning whereas Victoria’s Secret has taken a long time to do so.
“It’s been kind of like death by a thousand cuts for these guys.”
Iconic French luxury brand Chanel is expanding its Canadian operations as it continues to relocate its Holt Renfrew concessions to street level spaces. It’s part of a trend for the brand, which boasts a fiercely loyal clientele, to locate near other world-renowned names that attract affluent shoppers to Holt Renfrew stores across the country.
Until recently, Chanel boutiques were located on women’s designer fashion floors within Holt Renfrew stores, and Chanel is now finding its place as a focused destination amongst other highly-productive brands that are seeing remarkable success within Holt Renfrew. Chanel currently operates five concessions within Holt Renfrew stores in Canada as well as a standalone 8,550-square-foot flagship on Yorkville Avenue in Toronto which relocated to its current space in November of 2017.
Big brands such as Louis Vuitton, Gucci, and Dior have seen considerable success with their concessions within Holt Renfrew stores, prompting Chanel’s move to join them. While many of the main floor designer concessions at Holt Renfrew focus on bags and accessories, the Chanel boutiques feature categories that include ready-to-wear as well as bags, accessories, and footwear. The clustering of luxury shoppers clamouring for other big-name brands saw Chanel seek to join them.
ENTRANCE TO CHANEL FROM THE MAIN LEVEL OF HOLT RENFREW OGILVY. PHOTO: CHANEL
In mid-November of 2019, Chanel relocated its concession at Holt Renfrew’s Montreal store on Sherbrooke Street to a larger space on the ground floor of the newly rebranded 250,000-square-foot Holt Renfrew Ogilvy on Ste-Catherine Street which is currently under construction. Chanel occupies a 3,300-square-foot bi-level space with frontage on Rue de la Montagne adjacent to the new Four Seasons Hotel, and Chanel also has an entrance into the ground floor luxury hall that will be a significant draw for Holt Renfrew Ogilvy when the store’s renovations and expansions are completed this spring. Holt Renfrew’s current 78,000-square-foot store on Sherbrooke Street will close to coincide with the completion of Ste-Catherine Street’s massive new Holt Renfrew Ogilvy.
In Calgary, Chanel will relocate its current second-level boutique concession at Holt Renfrew in the ‘CORE’ shopping centre to a new ground floor boutique that will open in several months time. The new Chanel boutique will be considerably larger than its current space on Holt Renfrew’s second level women’s floor, moving into a space formerly occupied by Louis Vuitton as well as a former entrance foyer facing 7th Avenue Southwest. We reported that Vuitton exited Holt Renfrew’s Calgary store in October of 2018 to relocate to the suburban CF Chinook Centre.
CHANEL, HOLT RENFREW, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: HELEN SIWAK
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CHANEL, HOLT RENFREW, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: HELEN SIWAK
CHANEL, HOLT RENFREW, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: HELEN SIWAK
CHANEL, HOLT RENFREW, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: HELEN SIWAK
CHANEL, HOLT RENFREW, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: HELEN SIWAK
CHANEL SHOE BOUTIQUE, HOLT RENFREW WOMEN’S SHOE HALL, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: LEE RIVETT
CHANEL SHOE BOUTIQUE, HOLT RENFREW WOMEN’S SHOE HALL, CF PACIFIC CENTRE, VANCOUVER. PHOTOS: LEE RIVETT
When the Calgary Holt Renfrew Chanel concession moves to its new street-level space, four of Chanel’s five Canadian concessions will be located in main floor areas and thus will be removed from the women’s designer ready-to-wear sections within Holt Renfrew’s stores. Only Chanel’s Holt Renfrew concession at 50 Bloor Street West in Toronto will remain upstairs with other women’s fashion designers. The soon-to-be-completed luxury floor at Holts Bloor houses some of the world’s biggest designer names that include comprehensive ‘world of’ concessions for Saint Laurent, Fendi, and Balenciaga.
The ‘main floor trend’ for Chanel in Canada began in 2012 when Holt Renfrew expanded its Yorkdale Shopping Centre store in Toronto. Chanel moved into Holt Renfrew at that time with a new boutique featuring its own entrance into the mall, as well as from within Holt Renfrew (the concession is said to be very successful and it expanded in late 2017). In June of 2016, Chanel relocated its 1,800-square-foot concession on the second floor of Holt Renfrew’s Vancouver store to a street level space spanning more than 5,000 square feet. The Vancouver Chanel is said to do astronomically high sales which one source said represented about 1/4 of all of sales at that Holt Renfrew location.
CHANEL CALGARY. PHOTO: CRAIG PATTERSON
In the United States, Chanel occupies space in several Saks Fifth Avenue and Neiman Marcus stores, as well as in six Nordstrom stores. Typically in those stores, Chanel ready-to-wear and accessories are separated with accessory shops located on the ground floor of the multi-brand retailer, with ready-to-wear shops located alongside other luxury brands on an upper level focused on women’s fashion.
Holt Renfrew’s Canadian stores operate differently than those US stores, however. Holt Renfrew’s leased concession model, which is similar to retailers such as Selfridges in London UK and other stores in Europe and Asia, has resulted in ground floor ‘luxury boutique halls’ that include a mix of accessory shops as well as larger shop-in-stores for major luxury brands. Yorkdale’s Holt Renfrew, which includes a second-level women’s floor, features several luxury brand concessions located on its main mall level that house ready-to-wear as well as other categories. Prada operates a large storefront at Holts Yorkdale along with a comprehensive Loro Piana shop which recently expanded around the store’s central escalator well. Comprehensive ‘world of’ Gucci and Fendi shops recently joined them along with Dior and Burberry ‘world of’ shops that both opened at Holts Yorkdale several months ago.
CHANEL BEAUTY, TORONTO. PHOTO: CHANEL
‘FRAGRANCE LIBRARY’ IN THE NEW TORONTO CHANEL FRAGRANCE AND BEAUTY BOUTIQUE. PHOTO: CHANEL
The Calgary Holt Renfrew store, which recently marked its 10th anniversary in its current location after vacating a much smaller space across the street in 2009, has a main floor level that includes several luxury brands as well as a 5,500-square-foot women’s footwear hall and a beauty floor. Most of the fashion boutiques, with names including Gucci, Prada, Celine, Miu Miu, Tiffany & Co., and Burberry carry bags and accessories only. The main floor of Calgary’s Holt Renfrew also houses concessions for Hermes and Loro Piana, which both carry ready-to-wear as well as bags and other categories.
We reported that Holt Renfrew closed its downtown Edmonton store in January of 2020 — sources say that one of the reasons for the closure was that some of Holt Renfrew’s partner brands were not interested in operating concessions in downtown Edmonton. After the Edmonton store closed last month, the only Holt Renfrew store in Canada that does not house a Chanel boutique will be Holt Renfrew’s Square One location in Mississauga, which opened in the summer of 2016. (We’re excluding the standalone ‘Holt Renfrew Men’ store at 100 Bloor Street West in this discussion as well as the soon-to-close Sherbrooke Street store in Montreal).
YORKVILLE AVENUE CHANEL LOCATION. PHOTOS: CHANEL
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YORKVILLE AVENUE CHANEL LOCATION. PHOTOS: CHANEL
YORKVILLE AVENUE CHANEL LOCATION. PHOTOS: CHANEL
YORKVILLE AVENUE CHANEL LOCATION. PHOTOS: CHANEL
YORKVILLE AVENUE CHANEL LOCATION. PHOTOS: CHANEL
YORKVILLE AVENUE CHANEL LOCATION. PHOTOS: CHANEL
Chanel’s Toronto flagship at 98 Yorkville Avenue recently expanded on the second level into part of the space once occupied by fashion retailer Diesel. More than 1,000 square feet was added to house back-of-house operations to provide more room for retail within the store. Chanel relocated to Yorkville Avenue from The Colonnade at 131 Bloor Street West in November of 2017 after shuttering its Bloor storefront in December of 2016. Chanel had been on Bloor since 1989 and prior to that, the brand had a presence in the now defunct luxury multi-brand retailer Creeds that operated at the Manulife Centre at 55 Bloor Street West until its bankruptcy in 1990.
The current total cannabis market (legal and illegal) is about $8 billion annually in Canada, based on average consumer spending of $107 per month by current consumers, according to Vividata’s National Cannabis Consumer Study 2019.
Close to 40% of adult cannabis users in Canada reported obtaining cannabis from the black market in the past year. For those buyers, top sources included a friend (59%), dealer (32%), private dispensary (23%), online (18%), family (12%), and other (3%), pointing to the social nature of cannabis consumption, with the majority of illicit consumption happening through friendships.
Social lounges have even begun sprouting (or making a legal comeback) in the cities, from byMinistry cafe in Toronto — created by the founders of Tokyo Smoke — a cannabis-centric lounge rolling out a variety of different events aimed at educating consumers in a hands on way, to Kensington Market’s Hotbox (under renovation), to others in Canada and more prevalent in San Francisco in the US at the moment.
Legal cannabis was obtained in the past year by over half (53%) of cannabis users, through sources including retailers (55%), online (46%), medical providers (17%), and homegrown cannabis (6%), signalling new opportunities in retail for a whole new category. However, legal cannabis in Canada came under criticism for being close to 60% more expensive than illegal cannabis for the most part, and not being able to match supply with demand in most provinces.
The disparity was more acute in Ontario, where the legal retail rollout was slowed by a lottery system, and other provinces reporting more profits. Critics suggested that only those with the connections and high net-worth were able to get their foot in the Ontario retail allotment. This year, Ontario’s retail allotment system got replaced with a system of “merit” which critics still suggest has loopholes in terms of not being able to achieve the province’s target capacity of 1000 stores by 2020.
PHOTOS: TOKYO SMOKE
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Canada’s largest number of current cannabis users per capita are likely from the Atlantic provinces of Nova Scotia, Newfoundland and Labrador, New Brunswick, PEI, followed by Ontario and Manitoba. In-store legal retail purchase of cannabis was likeliest made by residents of the Atlantic provinces (Nova Scotia, New Brunswick, Newfoundland and Labrador) followed by BC, Manitoba, Alberta, and Saskatchewan residents. Ontario and Quebec residents under-indexed in legal cannabis in-store purchases.
Saskatchewan’s cannabis retail model has been cited as especially efficient in bridging consumer access to product and meeting supply with demand, owing to its unique provincial rules that allow wholesalers to deal directly with licensed producers. In Saskatchewan, any retailer that sells cannabis must meet the SLGA’s (Saskatchewan Liquor and Gaming Association) permitting requirements, including a good character check, inventory tracking, and store security, as well as comply with municipal zoning laws. Quebec raised the smoking age to 21 and disallows home-growing of cannabis.
Those who live in Saskatchewan are 77% more likely than other Canadians surveyed to spend between $8-10 per gram on bud/flower. According to the CFO of Saskatchewan based retailer Fire and Flower, Chris Bolivar, a good retail experience is shaped by the canasta or budtender. However, some customers want to engage with technology versus a human being, evident by the second most popular mode of obtaining cannabis, online. Dovetailing consumer preferences, retailers in the provinces need to look into developing a strong online and physical retail (phygital) presence for cannabis products in stock.
THE HUNNY POT, TORONTO. PHOTO: DW
Does the government model work better than the private retail model in the provinces? Will the provincial governments end up opening cannabis retail locations like the LCBO in Ontario and the SQDC in Quebec? Cannabis began being sold in publicly run stores by the government-run Société Québécoise du Cannabis (SQDC) starting October 17, 2018. Whether the government-owned retail model will grow the category of cannabis in every province is something that remains to be tested and seen.
Customer-Centric Retail Experiences
The digital and physical retail avenues compete strongly for the legal cannabis consumer. Among current cannabis users in Canada surveyed by Vividata, the preferred mode of access to cannabis online remained highest among Albertans, Saskatchewanians, New Brunswickers, and Ontarians (in that order of likelihood of preferred access) reflective perhaps of the advanced digital or even omnichannel retail in those provinces, including options like text delivery services.
PHOTO: FIRE AND FLOWER
Fire and Flower’s Bolivar believed that strong retail is created by talking to consumer communities, ensuring localization, and being a good neighbour who a) differentiates to secure a lease b) honours the lease with timely payments c) is not invasive of other businesses d) regularly engages in traffic analysis e) understands or respects others (and is cognisant of loitering concerns) and f) has a data strategy.
PHOTO: FIRE AND FLOWER
Localisation of cannabis retail is important according to retailers, as people recognize and cherish community especially in rural regions. Moreover, specific segments like the consumer group popularly tagged by brands as “yummy mummies” representing the older new female consumer are still experimenting with cannabis to understand its effects, and more open to adopting cannabis via forms like vapes or edibles.
Some retailers like to segment their consumers as new users, veteran users in the illicit market ambivalent about legal cannabis, old time users who are looking to make a comeback into legal cannabis consumption, and the undecideds. Such segments can be studied and analyzed based on their needs and motivations before retailers decide how to target and appeal to bigger potential markets like users of topicals, vapes, and edibles in an age where “combusting through the lungs” is predicted to go out of fashion, because it involves heavy preparation time, portability challenges, and dirty odours.
Vividata’s survey points to opportunities across every age cohort seeking avenues for more education. Education based responsible retailing is a key area where stores can differentiate themselves to new consumers. At a time when 4 in 10 Canadians don’t know the difference between THC and CBD — the two principal cannabinoids of cannabis — and 7 in 10 are unsure, improving consumer access to education can be critical.
Fashion Meets Flower with Holt Renfrew x Tokyo Smoke Holiday Collaboration (CNW Group/Canopy Growth Corporation)
The future of cannabis retail lies in active and widespread customer and consumer education. CannEd Retail is an in-store educational platform for retailers and their customers, initiated by Responsible Cannabis Use (RCU). Colour coding products with THC:CBD ratios to illustrate product composition and potential effects are another example of effective product education; in-store demo sessions and pamphlet creation or off-site community centred presentations are other methods. Current and potential consumers look to websites, search engines, people that use cannabis and friends as some of the top sources of information about cannabis.
Product standards (quality) and product form remain top criteria in users’ selecting cannabis products. According to Vividata, alcohol remains more socially acceptable than cannabis consumption, but consumer standards of alcohol versus cannabis are different even if both categories rely on understanding consumers’ latent desires and stigmas. Health Canada regulations make a strong distinction of the three categories: alcohol, tobacco, and cannabis.
AURORA, WEST EDMONTON MALL. PHOTO: CHRISTOPHER LUI
AURORA, WEST EDMONTON MALL. PHOTO: CHRISTOPHER LUI
AURORA, WEST EDMONTON MALL. PHOTO: CHRISTOPHER LUI
Twinning Opportunities in Real Estate with Cannabis
Real estate landlords have always been on the hunt for the shiny new thing and cannabis uncorks an important opportunity in real estate properties despite the limitations around where cannabis properties can and cannot be built with respect to municipal, provincial, and federal regulations.
Cannabis retailers are not yet able to open stores in shopping malls, but in strip malls, however, Aurora opened a flagship store at the West Edmonton Mall setting a strong precedent for more accessible spaces in cannabis retail. High street retail is still a challenge, especially with municipalities’ concerns about retailers in malls appealing to the wrong (underaged) crowd.
Cannabis retailers could focus on the product, accessories, and the experiential elements at their points of sale. According to the latest PWC report on cannabis and real estate, cannabis retail landlords will need to check that sellers are licensed and in compliance with the laws of tenancy. Understanding the laws, developing a cannabis strategy, tracking opportunities ahead, and being agile are some ways to stay on top of smart and compliant cannabis retail in the provinces.
In effect, how every province deals with the challenges and opportunities ahead with building a strong retail system that is sensitive to the needs of all consumers is what will determine the success of cannabis retail in Canada.
Arundati Dandapani
Arundati Dandapani advises and supports non-profits and businesses with insightful storytelling at the intersection of cannabis, media and marketing (or social) research. A well-published research professional, she is the Founder of Generation1.ca, an online cross-sectoral resource and outlet for Canada’s newest residents. She was also honoured with industry awards like the inaugural GRIT Future List in 2019 along with the Qualitative Research Consultants Association’s 2020 Young Professionals Grant, is involved with multiple industry associations, and is also the Chief Editor of MRIA-ARIM. She can be reached at arundati@generation1.ca.
Popular New York City-based travel and lifestyle brand Away, known particularly for its innovative luggage, has secured its first retail space as it enters the Canadian market with plans for multiple locations. The digitally native brand has launched a brick-and-mortar expansion that will see it open new standalone storefronts globally.
Away was founded by Stephanie Korey and Jennifer Rubio in New York City in 2015 as an online direct-to-consumer brand. The company has since expanded into physical retail with its own stores, utilizing a strategy where it sells directly to consumers rather than utilize wholesalers and distributors. Mr. Korey holds the title of CEO while Ms. Rubio is Away’s Chief Brand Officer. Away is said to be one of the highest-funded female-backed startups in history.
MAP OF YORKDALE SHOPPING CENTRE
CONSTRUCTION ON THE NEW AWAY LUGGAGE RETAIL SPACE AT TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO: CRAIG PATTERSON
Ms. Korey and Ms. Rubio met in 2011 as former colleagues on the early executive team at New York City-based eyewear brand Warby Parker. The duo founded Away in 2015 and in November of that year, they received $2.5-million in seed funding from investors Accel Partners and Forerunner Ventures. Away released a book called ‘The Places We Return To’ which featured travel stories from 40 unique and influential people around the world, and the book was sold with a gift card to purchase the company’s first product, ‘The Carry-On’, which launched in February of 2016.
Millions more in funding was subsequently secured as Away expanded into editorial content with the launch of a podcast called Airplane Mode in the spring of 2017, which was followed two months later with a digital travel magazine called ‘Here’ which includes city guides, travel essays, and photo journals. Fast Company recognized Away as one of “2018’s Top-10 Most Innovative Companies” and CNN has referred to the brand as being ‘Instagram’s favourite suitcase’.
Away produces and markets a range of travel accessories. Its best-known suitcases featuring ejectable batteries for changing devices, scratch-resistant polycarbonate shells, interior organization featuring compression pads for space efficiency, TSA-approved locks, a removable laundry bag, and 360-degree Hinomoto spinner wheels. The popular Carry-On model was developed after consulting with focus groups, with the responses from hundreds of travellers used to perfect its design. Additional Away travel accessories include: The Everywhere Bag, The Signature Garment Bag, The Dopp Kit, and The Insider Packing Cubes. Away has collaborated with brands such as Madewell, NBA, and Star Wars, among others, and the brand has also partnered to support various charitable endeavours. All Away luggage products have lifetime guarantees.
PHOTO: AWAY FACEBOOK
In May of last year, Away secured a $100-million investment to reach a total valuation of $1.4-billion. The funding round was led by Wellington Management as well as Baillie Gifford, Lone Pine Capital, and Global Founders Capital. That money will go towards an expansion of direct-to-consumer brick-and-mortar stores as well as an expansion of Away’s travel gear offerings.
Controversy recently ensued amid claims of a ‘toxic culture’ at Away which resulted in Ms. Korey announcing that she was stepping away from the company. A new CEO, Stuart Haselden was announced as her replacement. On January 13 of this year, Ms. Korey announced that she had changed her mind and that she would share the CEO title with Mr. Haselden. Away’s human resources chief Erin Grau is said to have quit the same day out of frustration.
Away has set sights on Canada as a market for expansion with more locations. Last year we were notified that Away was seeking to expand into Toronto with a storefront on Queen Street West, with a targeted size between 2,000 and 2,500 square feet. Toronto’s Bloor-Yorkville area was also said to be a target at the time. Other major cities in Canada including Vancouver are also expected to be part of Away’s expansion with details to follow.
Away currently operates eight standalone stores globally, each featuring attractive and bright interiors. Nine are in the United States and one is in London, UK. A store in New York City’s NoHo area at 10 Bond Street acts as the brand’s flagship. Away also operates storefronts in Los Angeles (8400 Melrose Avenue in West Hollywood), San Francisco (371 Hayes Street), Chicago (1121 N. State Street in the affluent Gold Coast area), Boston (50 Seaport Boulevard in the city’s up-and-coming Seaport neighbourhood), Houston (Highland Village at 4033 Westheimer Road), and a unit at the Domain retail complex in Austin, Texas. The London flagship, located at 9 Earlham Street in the city’s Covent Garden area, was Away’s first international storefront when it opened in August of 2018.
Away is an example of a digitally-native brand that has expanded by opening brick-and-mortar stores. While Canada has seen an unusually high number of store closures in early 2020, industry professionals say that we can expect more digitally native brands to open storefronts in Canada.
Toronto's Yorkdale Shopping Centre launches more first-to-Canada retailers than any place in Canada. The centre ranks as Canada's most productive shopping centre in terms of sales per square foot and is also one of the country's largest and busiest malls. Yorkdale is also home to the densest clustering of luxury brands of any place in the country, and more luxury brands are said to be on the way.
We’ll continue to report on Away’s Canadian expansion, including the opening of its Yorkdale store.