This week on Retail Pulse Check Webinar, industry experts Craig Patterson and Stephen O’Keefe discuss the many pressing issues involved in the gradual reopening of the Canadian retail market.
Questions submitted by industry professionals centred around topics such as retaining retail staff in the wake of the pandemic, how to effectively implement safety guidelines, the regulatory differences from province to province, the role artificial intelligence could play in our newfound shopping experiences, and the future of in-store protocol as we all begin to adapt to the new post-COVID norm.
Other topics covered included the conversation surrounding insufficient government assistance, the impact of COVID on the imported food market, insights into department store shopping today, and the importance of eliminating ambiguity when imposing safety regulations.
Craig Patterson is the founder and Editor-in-Chief of Canada’s most-read online retail industry news publication, Retail Insider. He is also a Director at the University of Alberta School of Retailing, as well as a research consultant at Retail Council of Canada. Craig has studied the Canadian retail landscape for over 25 years, and has also been involved with strategy pertaining to urban revitalization in several cities, as well as retail and shopping centre-related design. He is an industry consultant who also gives retail tours and and is a public speaker. He is a graduate of the University of Alberta and holds a Bachelor of Commerce degree and Bachelor of Laws degree.
Stephen O’Keefe, Founder @Bottom Line Matters
Stephen O’Keefe is a 30 year veteran of the retail industry having worked with major brands such as Sears, Hudson’s Bay, and Walmart where he was Vice President of Loss Prevention and Risk Management. He founded Bottom Line Matters as a source for retailers of all sizes to draw upon his experience and expertise and deal with what matters – maximizing their bottom line. Stephen clients have included major retailers, BIAs, vendors as well as the Industry Association itself. He was awarded the Lifetime Achievement Award for his work with the retail loss prevention community, sharing best practice to combat shrinkage and advocating for legislative changes to support retail business.
The Sale Must Go On Downtown Oakville brings its annual sidewalk sale online and is kicking it off with a one-of-a-kind Instagram Live Auction.
Oakville, ON – For 46-years, retailers along Oakville’s historic Lakeshore Road have pulled product to the street in celebration of Downtown Oakville’s Annual Sidewalk Sale. However, this year – year 47 – is going to look a little different than years passed. Great sales will abound online through a giant cyber sidewalk sale that allows you to get the deals you look forward to regardless of physical distancing restrictions. Those businesses that can open may offer in-store sales. Due to the circumstances surrounding COVID-19, the Downtown Oakville BIA and its retailers have stepped outside the box and are determined to make this year’s Sidewalk Sale better than ever. With a special online platform, folks can shop #DTOakFromHome at their Cyber Sidewalk Sale. From May 28 – 31, shoppers can access ‘bigger than the sale rack’ sales from participating #DTOakville retailers online.
What does this mean for you? Some pretty great stuff, actually. With the Sidewalk Sale taking a virtual approach, shoppers can access great deals at any time (day or night) throughout the event. There will also be free shipping and local delivery offered by many retailers. Now is the perfect time to stock up on gifts and support #smallbusinesses when they need us most.
With street-facing retailers permitted to reopen as of May 19, some stores will also be open for in-store shopping with physical distancing measures in place. Be sure to follow us on Facebook (@downtownoakville), Instagram (@oakvilledowntown), and Twitter (@oakvilledwntown) for regular updates leading up to and through the event.
In addition to the Cyber Sidewalk Sale, the BIA is working hard to support the community and downtown businesses through an Instagram LIVE Auction on Wednesday, May 27th at 7 p.m. The auction, which features items from local businesses, also brings with it a lot of fun and community spirit; not only do you leave with great items but with a smile and full heart! While we cannot get together in person, we can still come together to support local, with live chat to our fellow shoppers. The auctions support local businesses, with previous sales of over $5000 in a few short hours, as well as local charities, with over $2,500 donated (past recipients include Fare Share Food Bank Oakville and Lighthouse for Grieving Children). The next LIVE Auction is anticipated to be just as successful with a lineup of great items up for bid (details to be released soon). Tune in by following us on Instagram (@oakvilledowntown).
The Downtown Oakville BIA truly believes that even under physical distancing circumstances and the unknowns of these strenuous times, together we can continue to support the community, our local charities, and our small business.
Shop #DTOakFromHome at our Cyber Sidewalk Sale! From May 28-31 you’ll be able to shop ‘bigger than the sale rack’ sales online. Plus, we are kicking off the event with a Instagram Live Auction on May 27 @ 7 pm! Learn more: https://t.co/XJnRBLEWWypic.twitter.com/p5nTxxMtqd
— Downtown Oakville (@OakvilleDwntown) May 4, 2020
HOLT RENFREW ENTRANCE AT YORKDALE MALL, TORONTO. PHOTO: HOLT RENFREW
Toronto-based large-format luxury multi-brand retailer Holt Renfrew has announced that it has appointed a new President and CEO. Industry veteran Sebastian Picardo will replace Mario Grauso, who has led Holt Renfrew on a path of significant change over his four-year tenure with the company. It comes at a time of stress for retailers following an extended period of store closures as well as shifting consumer sentiment at an unprecedented time.
The new Holt Renfrew President and CEO, Sebastian Picardo, most recently held the position of Deputy President and Chief Operating Officer at Hong Kong-based luxury department store chain Lane Crawford. Over the eight years, Picardo led the company to invest in fashion and technology to further make Lane Crawford a leader in its markets which include operations in China. Before joining Lane Crawford, Picardo held senior leadership positions at Burberry, Net-a-porter, and Alexander McQueen.
At Burberry, Picardo was instrumental in transforming the digital side of the business into the most advanced of its kind within the luxury sector. Picardo is also a chartered accountant and holds a degree in business management as well as a masters degree in international finance. He was born in Argentina and has worked in Buenos Aires, London, Barcelona, and Hong Kong. As part of his position with Holt Renfrew, Picardo’s new home is Toronto and he officially takes on the President and CEO role on June 1st.
MARIO GRAUSO
SEBASTIAN PICARDO
Mario Grauso became President of Holt Renfrew in July of 2016. He was instrumental in leading Holt Renfrew along a new path which included newly renovated and expanded stores, an enhanced concession model, and an expanded e-commerce site with thousands of designer products.
“It has been a privilege to lead Holt Renfrew and I am proud of what we have accomplished and the great team and beautiful environments we have built,” said Grauso. “The company is in a great place and it is the right time for me to move to my next challenge. I want to wish the business continued success and thank everyone for their support.”
Since Grauso took over the reins of Holt Renfrew, the company has spent hundreds of millions of dollars renovating and expanding its stores. That includes a substantial renovation and expansion of the Vancouver flagship Holt Renfrew store at CF Pacific Centre, which grew to more than 190,000 square feet and to this day is adding new vendor shops as part of ongoing updates. In Toronto, the Yorkdale Holt Renfrew store expanded by about 10,000 square feet last year, adding flagship-sized concessions for luxury brands Gucci, Fendi, and Dior. Other parts of the store were also renovated to create a series of ‘world of’ concessions featuring ready-to-wear and other categories for brands such as Burberry, Brunello Cucinelli, and Loro Piana. At 50 Bloor Street West, Holt Renfrew’s 190,000-square-foot flagship is in the process of a renovation that will soon include a new facade as well as an ongoing interior renovation.
In Montreal, an expanded Holt Renfrew Ogilvy store on Ste-Catherine Street West will reopen next week, spanning 250,000 square feet with many of the world’s leading luxury brands contained within. An existing Holt Renfrew store on Sherbrooke Street West will close once the nearby Holt Renfrew Ogilvy store is fully completed. During Grauso’s tenure, Holt Renfrew made the difficult decision to shutter its downtown Edmonton store as the company shifted its strategy to embrace big brands with their own dedicated spaces.
That concession model has seen large boutique spaces, run by brands themselves, in Holt Renfrew stores across the country. It’s something that brands have demanded amid a shift to direct-to-consumer selling which has seen Holt Renfrew increasingly becoming a landlord as well as a retailer.
Grauso also led the expansion of Holt Renfrew’s e-commerce site after a lag, adding apparel, footwear, bags and accessories to the mix. The site’s comprehensive launch had been delayed and until last year, only featured an assortment of beauty products. A massive IT push helped Holt Renfrew grow online sales while its stores were shuttered due to the COVID-19 pandemic. Last week, Holt Renfrew’s Calgary store reopened and on Tuesday of this week, the Vancouver store reopened. On Monday May 25, the two Montreal stores will open and the Toronto-area stores will open at an unspecified date in the next while as well.
The company says that Grauso will move back to the United States along with his partner Serkan Sarier who is a notable artist.
Holt Renfrew is part of the London UK-based Selfridges Group umbrella of stores which also includes Selfridges in the UK, Brown Thomas and Arnotts in Ireland, and De Bijenkorf in the Netherlands. All chains are upscale, feature a robust concession model and are considered to be market leaders.
“I want to thank Mario for his significant contribution to Holt Renfrew these last years,” said Anne Pitcher, Managing Director of Selfridges Group. “Under his leadership, he transformed our stores into the luxury destinations we have today, enhancing the business and its iconic status as a world-class retail brand and a leader in the Canadian market. We wish Mario every success and all the best in his future endeavours,” she added.
GUCCI ACCESSORY CONCESSION IN DOWNTOWN VANCOUVER. PHOTO: KLONDIKE CONTRACTING
Pitcher went on to say about the new hire, “There are few senior leaders of Sebastian’s pedigree and proven track record of success in the luxury retail space, and we are delighted that he will bring his extensive experience to Holt Renfrew. Throughout his career leading some of the world’s most successful brands, Sebastian has demonstrated an ability to see retail as an all-channel experience and to continually innovate and empower his teams to exceed customer expectations. We look forward to exciting new opportunities under his leadership”
Holt Renfrew’s expansive investments have come at a risky time for the company. The retailer has relied heavily on shoppers from China and with a crackdown on money leaving the country, some Chinese consumers have had less to spend in luxury retailers in this country. Now with an extended period of store closures due to COVID-19, consumers may be hesitant in returning to physical stores. As discussed last week in Retail Insider, Holt Renfrew has set out a strategy for its store reopenings which includes reduced hours, hygiene and sanitization, and physical distancing measures.
As with previous recessions, some consumers may decide to save money rather than spend it, and there may also be a movement away from flashier designer brands that feature prominent logos. Lost wealth from job losses, stock market declines and oil price losses is creating a further financial strain for some Canadians. At the same time, some affluent Canadians may choose to shop in their own country rather than travel internationally. That would be good news for Holt Renfrew which operates in the Toronto, Montreal, Calgary, and Vancouver markets, all of which are home to multimillionaires and some billionaires.
REITMANS’ NEW CF CARREFOUR LAVAL BOUTIQUE PHOTO: REITMANS
Iconic Canadian retailer Reitmans, which has been in existence for close to 100 years, has obtained protection under the Companies’ Creditors Arrangement Act to “facilitate its operational, commercial, and financial restructuring” as it reacts to the negative impact of the COVID-19 (coronavirus) pandemic.
The company, which is a leading ladies apparel retailer with retail outlets throughout Canada, employs approximately 6,800 people and operates 576 stores consisting of 259 Reitmans, 106 Penningtons, 80 RW & CO., 77 Addition Elle, and 54 Thyme Maternity.
“Filing for protection under the CCAA is truly the hardest decision we have had to make as an organization in our almost one hundred years of history, but this pandemic has left us no choice – we believe that this is the only course of action to ensure we remain successful in the future,” said Stephen Reitman, President and Chief Executive Officer of Reitmans, and grandson of the company’s founders, in a statement.
PHOTO: MALL CHAMPLAIN
“We have many strengths: we’re the Canadian leader in specialty retail, we have a strong leadership team and talented employees, great national brands, an omnichannel retail strategy with robust online sales, and most importantly, loyal customers who have been shopping on our websites at a record pace since the start of the pandemic. We will dedicate ourselves to the restructuring of our business, and then we’ll carry on with what we do best: offering affordable fashion and great service to our customers and communities for many years to come.”
The news on Tuesday comes as many retailers across North America struggle with the devastating impact the pandemic is having on the sector. Also on Tuesday, Pier 1 Imports announced that it has filed a motion seeking Bankruptcy Court approval to begin an orderly wind-down of the company’s retail operations as soon as reasonably possible after store locations are able to reopen following the government-mandated closures during the COVID-19 pandemic. J.C. Penney also announced recently it will permanently close nearly 30 percent of its 846 stores as part of a restructuring plan under bankruptcy protection.
Bruce Winder, a retail analyst at Bruce Winder Retail, said this period is the acceleration of retail as a number of forces being felt in retail before the pandemic were hurting companies like the ones that are going bankrupt right now.
REITMANS’ NEW CF CARREFOUR LAVAL BOUTIQUE PHOTO: REITMANS
REITMANS’ NEW CF CARREFOUR LAVAL BOUTIQUE PHOTO: REITMANS
“What this has done is this has accelerated those changes. You look at some of the stores that are closed that are going for it (creditor protection and bankruptcy) they were weak anyways. The value proposition was weak. They were not best in class. A lot of them have huge debt on their balance sheet because they were owned by venture capital or private equity,” said Winder. “So they didn’t have the balance sheet to weather the storm. Their business model was outdated. In other words, it wasn’t sort of modern and contemporary.
“So they were going to fall anyway. All this did is push them over the edge quicker.”
Winder said more of this will be taking place in the coming days, weeks and months.
“Sadly you’re going to start to see more of this happen in the next few weeks and even months and it’s all a function of how strong is their balance sheet, how patient are their investors, and where do they fall from a category standpoint. This year will be the story of bankruptcies in Canada, in the U.S. and around the world where you’re seeing the brands who are weaker, the brands who have poor balance sheets, old business models, many of them, not all, are going to have to close down and enter Chapter 11 (U.S.) or in our case (Canada) CCAA.
PHOTO: REITMANSPHOTO: REITMANS FACEBOOK
“It doesn’t mean that they’re all gone. Some of them will come out of it leaner and meaner but I would suggest that most won’t.”
In a news release, Reitmans said the CCAA process will allow the company to implement a restructuring plan that addresses the impacts of COVID-19 in order to build a more resilient organization that will be positioned for long-term success.
“Throughout this process, the Company will remain fully operational through its brands’ e-commerce websites; all physical stores will re-open in conformity with provincial and regional governmental guidelines. As the restructuring gets underway, the Company will look to optimize its retail footprint in Canada to emerge from this process in a stronger state,” it said.
PHOTO: REITMANS
“The retail landscape has been in constant flux over the past several years, resulting in the evolution of consumer behaviour and purchasing patterns. Reitmans has implemented a successful digital-first strategy, amongst other omnichannel initiatives, to drive sustainable growth in this evolving retail environment. However, the COVID-19 pandemic forced the closure of all retail stores, and pushed the retail industry into a new and unknown era.
“In conjunction with its filing under the CCAA, the Company has undertaken a process to secure an interim financing (DIP) that shall provide the required liquidity to meet all of the anticipated needs of Reitmans and its brands to continue normal operations following the opening of its retail locations and throughout the CCAA process. Reitmans is also in discussion with lenders with respect to a permanent financing upon exit from the restructuring process.”
In its fiscal year 2020 which ended February 1, Reitmans reported sales decreased by $53.5 million or 5.8 percent, to $869.5 million from fiscal year 2019. Net loss for fiscal 2020 was $87.4 million ($1.56 basic and diluted loss per share) as compared with $6.8 million net earnings ($0.11 basic and diluted earnings per share) for fiscal 2019.
“The firm has been a pillar within the retailing fabric of the country for a generation and the problems they face are common in these challenging economic times. The firm had faced challenges in the recent past related to unproductive locations, high rents, changing shopping patterns and shifting demographics,” said Kehoe, a veteran of more than 40 years in the industry and broker/owner of Fairfield Commercial Real Estate in Calgary.
“The face of shopping centres in Canada will be forever changed as fashion mainstays like Reitmans with their numerous retail banners will emerge from restructuring with a significantly reduced footprint.Retailing is always changing and evolving and Reitmans will carry on in an era of the omnichannel environment.”
A Calgary public relations company has launched a unique and innovative initiative to help businesses that have struggled during the current economic crisis caused by the COVID-19 pandemic.
WILD PR is offering businesses a complimentary Post-COVID-19 Revive & Thrive PR Package that outlines how businesses can secure valuable media opportunities for themselves in order to have their stories heard by the community and give their brands a much-needed boost.
Kristen Novak, Founder of the company, said it has put together a package that any small business, regardless of what industry they are in or their size, can use to develop their own public relations strategy and book their own media interviews.
“The reason we wanted to do that is because we know PR is expensive. As a reputation, it tends to be on the expensive side. But we know people’s funds are so limited. We know that businesses have been shut down and people are coming back from nothing. So we really wanted to give a resource to people so that funds weren’t the limiting factor for them to get that press coverage too,” said Novak.
ERICA MORGAN AND KRISTEN NOVAK
“Press coverage gives credibility. It gives you exposure. It really does wonderful things for a business. The bottom line is how can we help small business right now do something to help them come back from this.”
The package is available as a free resource that can be downloaded from the company’s website at https://wildpr.ca.
Novak said the coronavirus has taken a toll on businesses of all sizes and the company wants to be cheerleaders of small business and a support system to help them “come back with a vengeance.”
She said WILD PR wants to equip businesses with the tools to revive their business, get eyeballs on their services or products, and speak to their consumers in a way that resonates to drive business right back up.
“This package is all about the fundamentals so we are going to keep things simple and to the point. Our belief is that you don’t need to know absolutely everything to be able to get media coverage, you just need the foundation,” she said.
“We’re a small business ourselves and we have seen and experienced how basically COVID has been wreaking havoc not only on people’s livelihoods but on their dreams too. If you look at so many businesses that have just opened and had to immediately shut down, it’s incredibly sad from my perspective. We’re just looking at what we can do to give back and what we can do to help others at a time like this.”
Erica Morgan, Senior Account Manager of the company, said the initiative is reflective of that spirit in Calgary of everyone wanting to pull together and do everything they can.
“Even though we’ve been impacted, that was something that we had always been in discussion about. What can we do to give back with our resources and our knowledge and abilities. This was kind of the result of that,” said Morgan.
Novak said it is extremely important for businesses to communicate to their customers and clients, especially during a time like this. Customers and clients want to know who is re-opening and how they’re re-opening.
IMAGE: WILD PR FACEBOOK PAGE
“I think there’s going to be a lot of businesses that are coming out of this wanting to get their story heard. But even if everyone’s doing it, you need to find your voice within the masses,” she said.
“If people stop communicating, people are going to think that business is out of business. So you have to keep going. You have to keep letting people know what’s going on.”
Morgan said people place a high value on transparency. When businesses can use that communication to be open and honest with people, they appreciate that even if businesses have to close or change their business model.
“There’s value in showing what’s really going on to your customers and your stakeholders,” she added.
This week Craig & Lee review the COVID-19 articles since March, as well as the Hudson’s Bay Company’s announced closure of its downtown Edmonton store.
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.
Calgary-based Wild Tea Kombucha has launched a collaborative one-stop online shop to provide shoppers with easy access to food and beverage and other products from a number of local businesses.
The new ecommerce platform, which is being powered by WTK founders Emily Baadsvik, the company CEO, and Brigette Freel, its COO, have lined up a number of businesses to join the network as consumers change their shopping habits due to social distancing and store closures brought on by the COVID-19 (coronavirus) pandemic.
“Brigette and I were just brainstorming ways once we knew the pandemic was becoming the real thing and we quickly saw the effects of all trends and businesses closing or having restricted hours,” said Baadsvik. “So we immediately wanted to do something to bring awareness to the small businesses in Calgary and try to bring extra sales because it’s the small businesses that don’t have the big multi-conventional distribution. We have to struggle to stay open.
IMAGE: WILD TEA KOMBUCHA
“So basically just on an idea we texted a bunch of our local business friends and then immediately they all replied and it’s just grown organically from there.”
WTK, which has been in business since 2015, has a goal to add more local brands to the platform to simplify the shopping process for Calgary while also helping fellow business owners to stay afloat during these challenging times.
“We’d like to grow it. We haven’t really thought about putting any kind of cap on it yet. So anyone that’s interested is welcome to reach out to us and join us in this little endeavour,” said Baadsvik.
When asked if the concept might continue on when the pandemic is over and times return to a normal state, she said: “It’s going to be just play it by ear. I think that it just depends. If people continue to want home delivery, it’s something that we’re really glad to do and I think that collaborating with our friends and having more than one option besides Kombucha is just smart business.”
EMILY (LEFT) AND BRIGETTE (RIGHT). PHOTO: WILD TEA KOMBUCHA
She said the initiative involves contactless delivery because the company is trying to limit the number of people that are coming to the facility and the contact with the outside world.
“We just want to help the small business community in Calgary,” said Baadsvik. “The thing is a lot of us don’t qualify for the benefits – the 75 per cent wage subsidy. You have to show that your business decreased by 30 percent and when you’re a small business you’re trying to grow every year. So it’s a bit of a weird situation. Even though our sales have gone down they haven’t gone down enough so we don’t qualify. So we have had to lay off some staff.
“Right now it’s just about survival and taking it day by day, week by week. So whatever we can do to lift each other up that’s all that matters.”
The businesses on the platform include:
Wild Tea Kombucha – bottled and canned kombucha and kombucha cider at wholesale, case lot pricing.
Being part of the community and giving back to it has been a part of Edmonton-based Oodle Noodle since it was first opened about 12 years ago by Sonny Pham.
And that has been even more important in recent weeks as the authentic Asian restaurant has stepped up to help different charities during the COVID-19 pandemic.
“One of the things we do better than many others is we have a very strong community presence,” said Ziad Kaddoura, general manager of the company, who is mainly in charge of business development and running the day-to-day operations.
“We do donations and charity work throughout the year but since COVID-19 started, every week we’re donating about 300 pounds of noodles and sauces to the different food banks or charities. So far we’ve donated close to 2,000 pounds. And we try to pick different charities.
“The other thing we started doing about three weeks ago is 10 percent of our walk-in sales end up being donated to community charities. And on a weekly basis we’re donating about $3,000 in hard cash money to these local charities. These are charities that are not able to get funding from other people. So they’re very small charities. It could be anything to do with kids that have pressure because of COVID-19. It could be women’s shelters. It could be whatever. That community work that we’re doing is paying back because basically our community has been very supportive of the work that we’ve done.”
The first restaurant was on Whyte Avenue. Today the company has 13 locations with the 14th opening in mid-July in Edmonton.
“They’re all in Edmonton, Spruce Grove, Sherwood Park, and Leduc for now,” said Kaddoura, who has been in the food business for more than 30 years.
SPRUCE GROVE LOCATION. PHOTO: CANADA247
The way the brand has grown in locations is the company looked at the key neighbourhoods where they could put in a store to serve that neighbourhood. None of the stores are cannibalizing other stores but at the same time the brand is serving everyone.
Kaddoura said he doesn’t think the company can grow much more in Edmonton other than maybe up to two or three more stores in the city.
“We’re looking at putting a store in St. Albert. We’re looking at putting a store in the centre north end of the city like the Castle Downs area. Because we have our supply solution and all our product comes pre-packed and pre-portioned it makes it easy for the product to be transported to other cities,” said Kaddoura. “And we have a strong also central support team, so now we’re starting to look at Calgary and we’re looking at opening maybe three stores next year.
PHOTO: UBER EATS
“I do believe that Calgary could see 10 to 12 stores easily. We will be looking at opening a store in Grande Prairie, a store in Fort McMurray. My plan is to move to about 40 stores by 2025 in Alberta. Once we hit the 40 then we can start going beyond and looking at B.C., looking at Saskatchewan, looking at other areas.”
Kaddoura said one of the keys to the business success of Oodle Noodle is how well things are streamlined in its operation.
“Our operation is a very easy operation for any franchisee to take on,” he said. “We have a very strong relationship with our franchisees. We meet quarterly with them making sure they’re happy with what we’re doing.
“The other thing that makes Oodle Noodle very unique is we have our own factory where we produce our fresh noodles and our fresh sauces. We have three different noodles and 12 sauces. So basically putting the noodles and the sauces together gives you a meal. And then we’ve got some rice dishes.”
COVID-19 has changed (and will continue to change) the way consumers shop in stores and what they elect to purchase and prioritize. When COVID-19 guidelines were enacted, essential retailers had to quickly adapt operations to comply with social distancing regulations. Retailers who had the availability of real-time location data were able to monitor shopping patterns to gain insight into how they can better meet new COVID-19 safety requirements while adapting to what consumers want during this pandemic.
Anonymized and aggregated data from five large North American retailers show a shift in the average shopper journey from mid-March, when shelter-in-place restrictions began to take effect. The data shows a combined 44% increase in paper products, household products and dry goods. At the same time, the data reported a combined almost 50% decrease in shopping for clothes and shoes. The data also showed an 11% increase in traffic to brick and mortar locations during the week of March 9 -16, 2020. From this analysis, it can be easily seen that consumers began stocking up on essential goods as soon as the call for shelter-in-place was made.
Location data helps keep up with changes in shopper habits
An Internet of Things (IoT) sensory network of intelligent lighting installed in stores enables retailers to analyze and take action on the movement and utilization patterns of carts and baskets as they move through the store. The anonymized and aggregated heat maps below show shopper traffic before and after shelter-in-place announcements were communicated.
On the left, the heat map shows relatively normal shopping behaviour for the week of February 17, with traffic dispersed throughout the store. Fast-forward a few weeks to March 11, when WHO declared COVID-19 a global pandemic and the traffic patterns shift dramatically in the same store. As the heat map on the right indicates, shoppers were dwelling almost exclusively around essential goods: grocery, health, household, and baby supplies (formula, diapers, wipes, etc.).
What can retailers do with this information?
Utilizing real-time location data allows retailers to see shopping patterns so they can adapt resources such as where and how to staff employees, what products and/or aisles need to be restocked and how to prepare for peak shopping hours. Additionally, they can use the data to capture the most stagnant times and allocate those time frames for the “at-risk” demographics to shop.
Use data to inform store design in a crisis
Stores can use shopper journey, dwell, and behaviour trend data from this pandemic to retrofit low-traffic departments (e.g., apparel in these examples), to disburse high-demand items. The insights from this data can help retailers create more space for shoppers who are buying in-demand items and can also support social distancing mandates.
Improve Buy Online Pickup in Store (BOPIS) operations
Since Canada clarified the list of essential businesses, many non-essential retailers have seen their businesses transform from receiving only a couple dozen BOPIS orders a day, to quickly having BOPIS orders becoming the only way to enable sales. Mobile wayfinding technology can help new and/or temporary employees find items faster and be more efficient to serve consumers in this new way. IoT sensory networks and location services greatly simplify the common challenges associated with order fulfillment and product search.
Shopper analytics data gives retailers the knowledge required for strategic decisions which can help address associate safety during COVID-19. Detailed understanding of stores and zones with incidence of congestion allows retailers to take immediate action, implement new protocols in near real-time and ensure compliance with local safety regulations.
As retailers prepare for the prolonged effects of COVID-19 on shopper behaviour, adoption of tools and technologies can provide real-time operational insights across a series of store locations. These insights can help a retailer improve customer experience and implementation of safety guidelines while helping to protect their store’s bottom line.
Vladi Shunturov
Vladi is a founder, product leader and innovator in the IoT, data analytics and connected buildings space. He is passionate about solving complex problems using data and building cloud-first solutions with a great user experience. Vladi serves as VP of Product for Atrius - Acuity’s Connected Lighting and Indoor Positioning technology business unit. He was also a co-founder and CTO of Lucid (acquired by Acuity Brands in 2018), maker of BuildingOS - a connected buildings cloud platform used by Facility, Energy and Sustainability management professionals across 500+ enterprise customers and 25,000 commercial buildings to centralize all building operations data (utility, meter, BMS, IoT, asset & maintenance). He is the recipient of numerous industry awards including from the U.S. EPA and the Cleantech Open. He has previously been invited to speak and share his expertise at Autodesk University, CoRE Tech, DisruptCRE, the EPA and DOE, Greenbuild, and at TEDx.
Coronavirus has ravaged the world’s economies, but there’s hope on the horizon, especially for businesses in the sleep industry. In a recent interview published in Forbes online, the CEO and a co-founder of Simba Sleep Limited, explained that sales had been increasing during the pandemic.
This was especially the case of single mattresses, with consumers self-isolating or just feeling the need for some space from their partner or others in the household. The CEO also revealed he had plans for the business’s supply chain in Canada.
Sleepless nights all around
Simba extended the trial period on their mattresses and it turned out to be a sound decision. Two other smart moves were to highlight the company’s attention to good hygiene in its factories and the importance of contactless delivery. Until the official announcement of the lockdown, sales had dipped, but then the company saw their online sales surge when the nation knew what plans its government had for them. Since then, many people will have been having sleepless nights and the lockdown has made self-care a priority.
Of course, business owners, too, will have spent nights awake, wondering how they’re going to get through this. Simba has some good news for Canada because the CEO is concentrating on building a strong supply chain in the country, as well as in the UK, France and China. The plan is to increase security and reduce lead times. The quicker the production, the faster the business can respond to demand and get its products out there.
The fact that an overseas business is talking about operating in Canada is good news at a time when businesses have been feeling fear over the future of their livelihoods. The Canadian government did rush to the rescue in March and announce a major package to support them during the crisis. They’ll have quelled a few fears and doubts and the owners will be able to sleep slightly better, but retail businesses, like many others, will still have to fight their way out of this as recession starts to hit.
What was happening before all this?
Long before the coronavirus, the sleep industry had been experiencing a wave of change in Canada. Tired citizens had been shying away from pharmaceuticals and moving towards alternative sleep products to help themselves get that much needed shuteye. White noise machines, weighted blankets, sleep apps and “smart” beds, which moderate the temperature of the mattress, had all been part of a boom in alternative sleep products. Canadians had been giving their health and wellbeing serious consideration. Getting a good night’s sleep had been part of this.
In the UK, an interview with the Digital Director of the online beds company Bedstar, Jonathan Stalker, revealed some interesting trends. Mr Stalker had commented that fabric beds, especially in grey, had become popular with the company’s customers. He explained that ottoman beds had also started to enjoy much more popularity in the last few years.
Additionally, he pointed out the general trend that people were paying a lot more attention to interior design when they bought their beds. Before it had been about buying a bed on which they could sleep comfortably and which suited their requirements; now the bed is the focal part of the room and manufacturers are bringing out upholstery in different colours.
How can retail businesses find their way out of the current situation?
Listen to a few financial podcasts and you’ll find they’re not as gloomy as you’d expect. Some guests on them have been optimistic about the economy, saying that it will bounce back quickly as businesses reopen, consumers make up for lost time and buy all the things they needed but to which they didn’t have access during the lockdown. The question is, how can retailers find themselves out of the situation that the pandemic has created?
Get ready for the built-up demand
People have had to do without lots of different things and when shops open for business again, they’re going to get spending. A lot of businesses will have made cutbacks, but they should revise these now and have steps in place so that they can cope with the high demand when the shoppers hit the streets again.
Work on long-term investments
The slowdown has been a good time to take a long, hard look at operations, processes and platforms. Where are the opportunities? What’s missing? Now is the chance to think about long-term strategic planning and work out how the business can still grow as coronavirus starts to subside.
Think about the problems customers are facing
The lockdown will have created real pain points for consumers. Retail businesses need to work out what these are and how the business can help them. This could involve re-positioning the business or certain products so that customers still see the value of them. Consumers may be worried about managing their money or access to certain goods or services. How does the business address these concerns?
Make the most of new channels
People have still wanted or needed things during this crisis. Businesses have had to embrace certain channels — namely, online — so they can carry on serving their customers. What is clear is that consumers will have adjusted some parts of their lifestyle. When life returns to “normal”, they may find they’re happier going through the channels that, originally, were a plan B. As a result, retail businesses should consider expanding their online operations or improving them and continue running them on this larger scale.
It’s been a frightening time for businesses, but light seems to be appearing at the end of the tunnel, especially for the sleep industry. Consumers are trying to take better care of themselves, which includes investing in getting a good sleep.
Retailers are analysing their operations and studying how they can keep their businesses going now and beyond the crisis. Meanwhile, there’s a sense of optimism about the prospects of the world’s economies, which can emerge from their coronavirus-induced slumber sooner than their citizens might expect.
