I don’t have a crystal ball, and I can’t tell you what life will look like after the first wave of COVID-19 recedes from North America. I don’t know when a cure or a vaccine will be available, and I don’t know when we will all be able to go back to our regularly scheduled lives. But I do know that retail is never going to be the same again, thanks to the fusion of smart public health policies and technologies to prevent the spread of COVID-19 and other pandemics. And it’s all about reducing unnecessary contact between people and contaminated surfaces.
This is the world that we will inhabit beginning this summer. We’ll be allowed to leave our homes to some degree, but many cities have already announced longer-term restrictions on large gatherings. Toronto’s mayor announced in March that all event permits will be revoked until the end of June, which is several weeks after the initial wave of COVID-19 cases is expected to drop. These limitations will also apply to retail stores. We don’t know whether the two-metre zone will still be enforced, or whether Ontario’s cannabis stores will still only be allowed to sell via click-and-collect, but it is very unlikely that we’ll go back to the way we were on March 1.
This is where hands-free shopping will not be a luxury, but a necessity, as stores reopen. The intrinsic problem with stores isn’t that they’re crowded; it’s that hundreds or thousands of people are required to all touch the same surfaces and objects. Cash is already banned in many outlets, and Canadian banks have upped the limit on PIN-less transactions to minimize physical contact with payment pads. But even that reduction in touch points may not be enough to ensure public safety. And as long as retail stores are not seen as safe, they won’t be able to fully reopen and get back into the world of black ink.
So, what does a touch-free retail experience look like? Simply put, every physical interaction involving technology needs to be replaced with one that can be done at a safe distance. That means replacing traditional check-out lines with systems that can identify shoppers and automatically debit funds without risking the exposures caused by handling cash or presenting physical cards. Think of it as a digital wallet with a facial-recognition component that uses a camera to pair customers with their preferred digital payment platforms.
The best part of this idea is that every bit of the technology that’s needed to make it a reality exists right now. Creating a personal 3D identification image is easy because Apple has been doing it for more than two years. In fact, this approach to security has been used commercially for almost 20 years. At the store end, the kiosks and cameras needed to verify shoppers have also been used for things like cheque cashing since the late 1990s.
Over the last two decades, the technology has gotten faster, smaller, and cheaper, and today it would be very cost-effective for stores to roll out their own biometric-powered systems. And given where our world is today, that may not just be a cool idea: it may be the only option.
George Brostoff
George Brostoff is CEO of SensibleVision, which makes facial-recognition software. Brostoff has seven U.S. patents and has developed technology used by Dell and other major companies. He can be reached at gbrostoff@sensiblevision.com.
In response to covid-19, Sukoshi Mart has decided to branch out and make their unique and charming products available to Asian culture connoisseurs across North America.
Sukoshi Mart, the favourite Toronto destination for East Asian lifestyle products, announced today the launch of their new online store. In light of the covid-19 pandemic, the Sukoshi Mart team plans to deliver some much-needed happiness to everyone stuck inside, orworking in essential services to flatten the curve. Now that going out can mean taking a big risk, the ability to shop from the comfort and safety of home is more important than ever. By offering a seamless shopping experience, Sukoshi Mart encourages those who share their passion for limited and seasonal Japanese snacks, k-beauty products, cute stationery and more to treat themselves whenever possible.
“With the current situation as it is, it’s been difficult not to open our store and help spread joy within a community that could really use it right now,” said Linda Dang. “Not only do we feel the need to do something for our loyal customers, but we also wanted to provide away for our employees to keep their jobs. Now we can keep them busy with sourcing new products for the site, streamlining our platform and coordinating shipping and logistics. This is how we can keep doing our part during this critical time.”
The online store will go live with 1500 products, hand-picked to provide shoppers with a focused selection of new and exciting items to explore. Sukoshi Mart understands foreign goods can be challenging, and bridges the cultural gap by explaining key features and ensuring nothing gets lost in translation. While you may recognize popular brands like Pocky in their catalogue, the shop also aims to introduce lessor known brands to the American market. With 50 to 100 new products added each week, there will be no shortage of items to fill your cart with.
Sukoshi Mart is set to roll out their webshop in the first week of May with a soft launch for existing members, and an official launch on May 8th. Sukoshi Rewards will be revamped to offer more competitive benefits, and updated monthly to keep giving back to loyal customers. Curated self-care bundles will be available to help introduce newcomers to great items from each category and make gift giving a breeze. Sukoshi Mart reminds customers that at a time like this, sending gifts can be a great way to brighten your loved one’s day and remind them they’re not alone. Whether for yourself or someone you love, help Sukoshi Mart bring smiles to more faces by checking back weekly and making the most of this great new shopping experience.
If there’s a product you’d like to see, or if you have any questions please reach out to the Sukoshi Mart team at hello@sukoshimart.com.
What will the retail landscape look like when the COVID-19 (coronavirus) pandemic is over and life returns to normal, whatever that may be?
One of the biggest changes may be a shift in consumer spending and shopping habits.
“When this is over many consumers will have a newfound sense of thrift. Savings will be depleted; credit cards and lines of credit will be stretched, and stock portfolios and pensions will be decimated. You will see an extreme flight to value,” said Bruce Winder, Co-Founder & Partner, of Retail Advisors Network.
Bruce Winder
“Dollar chains, value grocers and used clothing stores will thrive. Many consumers will think twice before spending. They will make existing products last longer. More items will be repaired versus replaced. Those with cash will invest in the dip and make a fortune when stock markets return to some form of normal. All these factors will create a new retail landscape that further polarizes our industry and society between the wealthy and the wealth-less.”
How long will that shift last? Permanently or for just a few months?
Winder said that’s a tough question to answer but there’s going to be different types of people. A percentage of people will go through this and will never want to go through something like this again and be vulnerable to the point where they need the government to bail them out and being so close to being on the street. Some people enjoyed living a simple life during the coronavirus without having to spend a lot of money. They will continue living that way.
“There’s going to be people who say ‘I want to get out of this, this is my wakeup call to not spend as much. I need to lower my costs’,” he said.
Also with a higher unemployment rate, there will be a shift to thrift.
“What that percentage will be we don’t know whether it will be as high as what happened in the Great Depression where literally a whole generation became thrifty except for the ultra-rich or whether it’s going to be sort of a mix of that where not the whole generation but half the generation,” said Winder.
“It’s going to be a wakeup call for those who have the choice and it’s going to be a necessity for those who no longer have the choice of spending.”
Winder said retail and modern society is at a crossroads and it takes the form of the choices being made in physical distancing and government support. COVID-19 calls for us to reverse course on our individualistic ideology and do what is right for the many. Not the few.
“For the retail industry to remain healthy we need immediate government funding through loans, deferrals and grants, more than has been offered already. For many, May 1 was a key date as rents and other expenses such as insurance, GST payments, electricity, payroll and more were due. The world, the country, businesses and citizens will take a collective sh*t kicking on balance sheets but we have no choice. It must be done in order to survive,” said Winder.
“Without such support, small and medium sized retailers and suppliers will run out of cash soon if they haven’t already, and will have closed permanently. This will create an unhealthy industry where we are left with only large retailers, suppliers and service providers. Too much power will be given to the select few. This will reduce choice, reduce service and create an oligopoly where prices increase. This will also impact jobs as big retail continues to turn to automation and e-commerce to save cost. The strong will buy the weak for a song and will grow even stronger.”
However, on the bright side, retail will survive but will take a different form, added Winder. There will be a reincarnation of business as retailers and suppliers sprout up and start again from the ashes. More retailers will be built on variable cost and capital light models. More businesses will be digitally native, at least to start. We will also see a renewed sense of collectivism in our society as people help each other more and try and shop locally.
“The air will be fresh and the waters will be clear. The environment will catch its breath and begin to heal, if only for a little while,” said Winder.
When it comes time eventually to reopen stores, for the essential or non-discretionary spending retailers will be similar to what it looks now. Consumers will continue to see significant social distancing, cleanliness, and a higher mix of online shopping. Stores will set up for pickup or curbside pickup.
For discretionary spending, it will likely be different, said Winder, adding that they will probably start online and will incorporate some of the practices that grocery stores have been using in terms of letting a certain number of people in the store at once, maybe have customers come at certain times, or stores may be laid out differently to accommodate social distancing.
“There’s going to be a whole new way of doing this. But I’m suggesting more companies if they’re opening they’re going to be thinking about online,” said Winder.
“This is going to cause a permanent sort of change in our psyche’s for consumers. Not for everyone but for enough people that retailers are going to have to change the way they go to market.”
More people in Canada are seeing the benefits of becoming independent sales consultants in the direct selling industry to provide some income coming into their households during this economic crisis brought on by the COVID-19 (coronavirus) pandemic.
Peter Maddox, President of the Direct Sellers Association of Canada, said the industry is ideal for many people now who are facing financial hardship with the closure of many businesses and the overall economic downturn.
“I don’t have any firm data but I’m hearing that people are getting more people calling saying ‘hey, I like your products, I’d like to start selling them’. For better or worse, our industry tends to do better when times are a little tougher because people are looking for extra earnings, opportunities,” said Maddox.
PETER MADDOX
According to the association, direct selling is the sale of consumer products or services, person-to-person, away from a fixed retail location. It is a retail channel used by large, global companies and small, entrepreneurial brands to sell all types of goods and services. Driven by independent sales consultants, direct selling is also called social, network, or personal selling.
The association said it’s also an avenue for entrepreneurial-minded Canadians to work independently and to build a business with low start-up and overhead costs. Over 1.2 million Canadians are involved as independent sales consultants and over 14 million are involved as consumers.
Historically that included people going door-to-door to sell encyclopedias or vacuum cleaners. Today, independent sales consultants operate in a vast variety of industries working for retail giants such as Mary Kay, Avon, and Pampered Chef.
Here are some stats the association has about the industry
200+ companies utilize a direct selling model in Canada;
2 million independent sales consultants;
$3.5 billion in annual sales;
$1.21 billion in annual personal revenue to independent sales consultants;
$1.31 billion in national and local taxes paid out annually;$886 million in direct tax revenue;
$424 million in indirect and induced tax revenues; and
$7.3 billion total economic impact (direct & indirect benefits).
Direct selling is a retail channel used by large, global companies and small, entrepreneurial brands to sell all types of goods and services, including: Nutritionals and healthcare, Cosmetics, Jewelry, Housewares, Food and Beverage, Giftware, and Utilities.
Maddox said working as an independent sales consultant is typically an add-on income for most people – making a few hundred dollars a month and not working full-time hours.
“It’s extra income. Maybe it pays off a car payment, maybe it helps your family go on vacation. Right now you’re not going to just jump in and replace the income from a full-time job. But definitely there’s opportunities for people to make additional income for the family and maybe get a little bit just to keep food on the table and those sorts of things,” he said.
In early April, the association was upset over what it called “the restrictive eligibility criteria” for the Canada Emergency Response Benefit (CERB) by the federal government.
Initially to receive money from CERB, people could not have any income.
“That impacts our sellers in a lot of ways. A lot of them do a regular job and then they do some direct selling to make a little bit of extra money,” said Maddox. “Let’s say they lost their regular $50,000 a year job and were still making $400 a month through direct selling. That meant they couldn’t get any government benefits.”
“So we went to government along with a lot of other groups and said that’s kind of unfair because people have lost the majority of their income. You don’t want to discourage economic activity right now. Recently they announced that you could earn $1000 a month and still apply for that benefit. So we were pleased with that.”
The recent Absolunet's COVID-19 x eCommerce Report revealed that Canadian e-commerce is on the tipping point as online sales have doubled since March 11, the day when the World Health Organization declared COVID-19 a global pandemic.
“I think going forward more people are going to be looking for gig type work where they can piece together a bunch of different jobs to make a living and we can certainly be a part of that,” said Maddox.
The direct selling association estimates that 42 percent of the Canadian population counts on the direct selling industry to deliver a wide range of products and services to them.
Food costs are always on consumers’ minds. Hard to blame them as they spend close to 10% of their budget on food. It is not the highest portion of their budget, but it is certainly an important one. However, given how the COVID-19 pandemic is affecting the global economy, we should all expect that 10% threshold to go way, way up in years to come.
For 2020, we should expect the food inflation rate in Canada to be at 4% by the time we are done with this year, if we ever get there. That is what Canada’s Food Price Report is predicting. Of course, 4% is a little more than the 20-year average, but it is not beyond being manageable. The challenge of course is the macroeconomic backdrop to the 4%.
The COVID-19 pandemic has caused a series of mind-bending distortions across world global markets. With the major economic slowdown ahead of us, analysts believe overall inflation will drop significantly. The COVID-19 crisis is essentially an extraordinary deflationary shock to the economy, causing the idling of a vast share of the world’s productive resources. The impact will almost surely persist beyond the period of widespread lockdowns. Everything will get cheaper, including energy, cars, and houses. No sector of the economy will be spared. A deflationary market is hard to avoid when so many have lost their jobs. But the food industry will likely be immune to all of this.
Consumers got comfortable with affordable, relatively cheap food over the last few decades. Globally, pre-COVID, Canadians had access to the 5th cheapest food basket in the world, relative to income. But as general inflation drops, food inflation will likely take quite a different path. A steep contrast, in fact. The food industry is seeing its costs skyrocket as costs of production are going up, way up, from farmgate to retail. Labour costs are going up as companies are trying to rotate personnel so they can physically distance from one another, and the costs of equipment and specialized machinery are also going up. We will start seeing “anti-virus” food packaging and other measures to reassure nervous consumers – again, costing more. Some pizza companies are already doing this.
Physical distancing is forcing most companies to operate differently. Grocery stores are spending on average 5% more to operate these days compared to pre-COVID. When margins are at 1%, something has got to give. We may see fewer stores, less choice, or higher prices. Given the high-volume, low-margin nature of the business, it will be impossible to see an entire supply chain absorb the COVID-19 mega-shock without seeing prices reaching new heights in years to come.
Even though we were getting more choice and convenience over the years, the structure of supply chains is designed to accommodate economies of scale and lower costs of distribution. For many commodities, processing is highly centralized. Coming out of COVID, we could see food networks shrink and become more localized, which is apparently what Canadians want. Canadians will want to buy more local food products when the pandemic is over. In fact, 63% of Canadians want to buy more local foods in the future, according to a recent poll from Angus Reid. The crisis got us to think about the basics, the simple things, the aspects of our lives which are familiar to us. When that happens, local wins every time.
There is a silver lining to all of this. On the one hand, most of us are spending much less on food. We are cooking up a storm at home these days, saving thousands of dollars right now. The average Canadian household can spend on average $4560 at restaurants and on food consumed outside the home. That is not happening right now. For every dollar spent at the restaurant, you will get 30% to 40% more food in volume, on average. The difference is immense.
What makes things more interesting is the amount of food waste we have generated since COVID started. According to Second Harvest, almost 38% of the food bought for consumption at home gets wasted. That is close to $3500 worth of food, for an average household. At least, that was before COVID. Now, we are becoming better inventory managers, simply because we spend more time at home. As we visit grocery stores more rationally now compared with the panic buying witnessed a few weeks ago, we are more familiar with what we have on hand, and therefore tend not to buy more of what we already have. We are also getting more creative with leftovers since our skills in preparing food is getting better with every recipe. So even if the food inflation rate is going up and may go up for a while, you may still be saving money. It just depends how much time consumers are willing to spend in their own kitchen.
In Europe where food economies are much more decentralized, consumers are accustomed to spending 15%, sometimes 20% of their budget on food. The market on the other side of the Atlantic may be what we could see in North America in a few years, due to COVID. The food industry is responsible enough to increase food prices at an acceptable rate, but we will need to get used to higher food prices, no matter what.
London Drugs is offering shelf space in many of its stores to help small businesses negatively impacted by the COVID-19 (coronavirus) pandemic.
“This is a really hard time for many small businesses, and we are in a unique position in these challenging times where we can really help out,” said Clint Mahlman, President and COO of London Drugs.
“As a 75-year-old Canadian owned and operated company we have always supported fellow Canadian businesses and now is the time more than ever, to come together. As an essential service, we are here to help our local small businesses while also providing an opportunity for customers to pick up their favourite local items and support their favourite local companies.
CLINT MAHLMAN
“Whether you sell coffee, local honey, or your restaurant’s graphic T-shirts, London Drugs is here to help.”
In select locations, London Drugs will be transforming its centre aisles into Local Central, a dedicated space to help local businesses sell their products.
Rob Felix, Senior Vice-President of Merchandising for London Drugs, said for a very long time the company has been selling local products in a number of its stores.
“It might be in Alberta or the Okanagan. It could be local honeys and jams, flowers, clothing, and books. We’ve been doing this for well over 10 years but obviously this is a little bit ramped up with COVID and all the difficulties and all the retailers that are closed,” said Felix.
“We saw an opportunity here to help out local retailers that are either closed or are in some way having financial difficulties as a result of this. And also to be candid to give our customers a bit of a surprise and delight. So if you’re in a small community in Alberta in Red Deer and you see the local flower shop operator or a clothing operator or a book seller that is selling some of their products in a London Drugs store, first of all it’s a pretty cool experience for you because you’re getting a local favourite and second of all it’s a bit of a value add when you come to London Drugs.
ROB FELIX
“We are not looking to make any profit on any of the things that we’re selling. We’re just looking to partner with people in the community that have cool items to sell and we’re going to provide them with space in our stores and we’re going to give them an opportunity to earn a little bit of income until their businesses open up again.”
Felix said each one of the company’s stores has a unique shape and size and that will determine where the local retailers will get space.
But he said all the space will be “prominent space towards the front of the store.”
“So it might be in an aisle. It might be right at the front of the store. It will really depend on the configuration of the store. Some of our stores are slightly different sizes or different configurations,” added Felix.
As an example, he said London Drugs sells Girl Guide cookies in its stores. That is right at the front of the store. It is literally the first thing customers see when they walk in the door.
“We want to do the same thing with local products. Not hide them. Not put them in some concealed area but put them right up front so that everybody’s got an opportunity to purchase them,” explained Felix.
The concept could potentially take place in each of London Drugs’ stores.
LONDON DRUGS IS ALSO OFFERING CURBSIDE PICKUP ORDERS AND A PRESCRIPTION DELIVERY SERVICE DURING THE PANDEMIC.
“There’s not a guarantee that it will happen in every store but we’re ready and we’re hoping that we’ll have unique product throughout every market that we operate in, in all of our stores,” said Felix.
“It’s just really part of our corporate DNA. Our ownership is committed to doing things in the market. This is something we’ve always done. For us, this is nothing new. It’s how we operate. It just makes sense and it makes sense to do things in the communities in which we operate.”
The B.C.-based London Drugs was founded in 1945 and today has 83 stores in more than 35 major markets throughout British Columbia, Alberta, Saskatchewan and Manitoba.
The following are several good news stories pertaining to the Canadian retail industry. Retail Insider will be providing brief updates with positive news to balance some of the less-than-positive reporting taking place amid the COVID-19 pandemic.
Sleep Country:Sleep Country Canada has announced that the company is donating $1.5 million worth of product to support local communities during the COVID-19 health crisis. The Giving Initiative will provide mattresses, beds, and sleep essentials to vulnerable communities and frontline medical workers across Canada.
Sleep Country’s donations will help improve the challenging conditions faced by homeless shelters and community living programs that are currently suffering with severe overcrowding. It will also help communal living spaces to implement physical distancing to fight in the spread of COVID-19.
Toronto Mayor, John Tory, announced the first recipient last week as the City’s Rapid Housing Access Initiative. Sleep Country is donating 100 beds including mattresses, adjustable bases, bed frames, sheets, protectors, and pillows to assist in providing residents with a safe and healthy living arrangements.
Additionally, the company is providing hospitals and care facilities with temporary rest and sleeping arrangements for frontline medical personnel working extended hours or for those who cannot return home to their families for fear of the virus spreading.
PHOTOS: MONOS CLEANPOD
Monos: Travel has been out of the question for most since the announcement of the COVID-19 pandemic. Without a clear end in sight, businesses within the travel sector are facing challenges and uncertainty of when, and if, the industry will recover.
Canadian luggage company Monos has pivoted its business model in response to the increased demand for sanitizers by launching The CleanPod, a hand-held sanitizing wand that uses UV light to kill bacteria on surfaces. As Monos wanted to create a product that would be both useful to the community and allow them to give back, they are donating a portion of the proceeds from sales to United Way Centraide, Canada’s COVID-19 Community Response and Recovery Fund.
IMAGE: SAATVA FACE MASK
Saatva:Saatva, the affordable luxury direct-to-consumer bedding company, is one of many retailers innovating in the face of COVID-19 by shifting production lines from mattresses to face masks. Now committed to manufacturing PPE for hospitals and health-care workers, Saatva has announced the availability of a N95 mask production manual designed to help create a plug-and-play solution for other companies to use. Today, the company’s manufacturing network produces approximately 75,000 a week.
GoodTo Go: Toronto’s GoodTo Go Snacks company is facing the COVID-19 pandemic head on by donating over $50,000 of its healthy snack bars to hospitals and clinics across Ontario, including 14,000 bars to Mount Sinai Hospital in Toronto. Additionally, the snack company has donated thousands of bars to a Toronto family who is rallying local brands to create gift bags for frontline workers after finding out two family members had been tested positive for COVID-19.
SilverChef/inKind: SilverChef, Canada’s leading hospitality financier, has launched the national #ServingHospitality initiative in partnership with inKind – a community financing platform, which is expanding its operations into Canada to support this cause. The #ServingHospitality initiative aims to keep Canadian hospitality businesses resilient to the financial challenges caused by COVID-19 by providing them with an immediate cash injection, at a time when they need it most.
Customers are able to purchase e-gift cards —for the hospitality business of their choice — to be redeemed once the business reopens its doors. Registered hospitality businesses will also be offering an additional value credit on customer purchases between 10 percent and 30 percent.
Robert Phelps, President at SilverChef Canada, notes that “hospitality owners and entrepreneurs across Canada are facing financial challenges on a scale never seen before as a result of the COVID-19 pandemic. Now more than ever, Canadian businesses need our help.”
One hundred percent of purchases will go directly to hospitality businesses, and customers will be able to redeem their e-gift card through the inKind app. Hospitality businesses from British Columbia, Ontario, and Saskatchewan have already signed up to the initiative.
“A thriving hospitality industry is central to Canada’s national identity, and we’re therefore excited to be entering a new market with such a vibrant and diverse hospitality landscape,” said Johann Moonesinghe, CEO at inKind.
Partners of the #ServingHospitality initiative include Restaurants Canada and the BC Hospitality Foundation.
To learn more about how you can support your favourite business visit www.servinghospitality.org and businesses and customers alike can also get involved with the new initiative by using the hashtag #ServingHospitality or by following along on Twitter @SilverChefCa, Instagram @SilverChefCa and Facebook @SilverChefCanada.
IMAGE: VANS
Vans: To support local business partners during these hardships, Vans has launched its ‘Foot the Bill’ initiative. Vans has committed to helping 80 small and independent businesses globally, including skate and specialty shops, restaurants, music venues and community-driven spaces by offering their custom-made designs available for purchase on Vans Customs. All proceeds (minus materials and shipping) will go directly to the local business that created the custom designs. Vans is thrilled to support over 80 businesses worldwide, including six Canadian stores in Toronto, Vancouver, Halifax, Calgary, Montréal, and Saskatoon.
Nordstrom: In recognition of Earth Day last week, Nordstrom announced five new goals to demonstrate its continued commitment to combating climate change and increasing environmental stewardship in Canada as well as at its home base in the United States.
The fashion retailer has tracked significant progress toward conserving resources by making systemic changes throughout its corporate structure and supply chain and is focused on three key impact areas including climate change, environmental impact of its products and services, and circularity.
To address these specific areas, Nordstrom has committed to reducing single-use plastic by 50%, using sustainably sourced raw materials in 50% of Nordstrom Made products made of polyester, cotton, and cellulosic fibres, extending the life of 250 tons of clothing, ensuring 15% of all product is considered sustainable, and donating $1 million to support textile recycling innovation.
“Through this COVID-19 crisis, we’ve been given a unique opportunity to reimagine our future and rethink what kind of company we want to be for our customers, employees and shareholders. It’s clear that to deliver value to our stakeholders and communities, environmental sustainability needs to be a priority for our company,” said Pete Nordstrom, President and Chief Brand Officer at Nordstrom.
RUSCIO STUDIO DESIGN IN THE GARDEN CITY SHOPPING CENTRE. PHOTOS: RUSCIO STUDIO
Ruscio Studio: Montreal-based design firm Ruscio Studio have been chosen as this year’s winner of the commercial category for the international 2020 Ceramics of Italy Tile Competition. The Canadian firm won for its Garden City Shopping Centre project in Winnipeg.
The Garden City Shopping Centre had not been renovated since 1989 so in 2017, Ruscio Studio was tasked with developing a sleek, contemporary new design that would stand the test of time. Through the use of floral upholstery, Canadian oak wood, and colourful lounge areas, the designers created a modern space that plays into the “garden” theme. Ruscio Studio was very careful to choose timeless, durable floor tiles that could withstand the next 20 years of heavy pedestrian traffic.
“We are very proud to be a Canadian design firm with a Canadian project as winners of this prestigious and international award competition,” said Robert Ruscio, President of Ruscio Studio.
We’ll be back with more of these posts next week. Have a good weekend and stay safe.
Retail Insider’s Lee Rivett recently visited Johannesburg, South Africa, touring two of the country’s leading shopping centres. This two-part series highlights each shopping centre and Sandton City’s edition was published earlier in the month. Part one of the series detailed the visit to the Sandton Retail Node (spanning 170,939 square metres) in Johannesburg, which consisted of a combination of Sandton City (141,390 square metres), Nelson Mandela Square (16,265 square metres), Legacy Corner (7,000 square metres) and Michelangelo Towers Mall (6,284 square metres).
In our second edition, Retail Insider continued slightly north to Pretoria, a city approximately 55 km north of Johannesburg, which is home to the recently renovated Menlyn Park Shopping Centre (spanning 177,000 square metres). The shopping centre was the second largest mall in South Africa, Menlyn Park Shopping Centre, beat out in the retail space category by only 1,000m² by Fourways Mall in Johannesburg after it completed its latest renovation in August 2019.
MENLYN PARK, PRETORIA. PHOTO: INFRASTRUCTURESANDTON CITY ENTRANCE. PHOTO: INYOURPOCKETJACARANDAS TREES IN PRETORIA
Major South African Retailers
Most Canadians are familiar with typical anchor tenants in Canadian shopping malls as many of us have frequented Hudson’s Bay, Nordstrom, La Maison Simons, Saks Fifth Avenue other retailers. For comparison to the South African retail marketplace, the following major retailers are present (CBRE):
Food (Domestic South African Retailers):Shoprite Holdings (2,370 – Total stores in SA), Pick n Pay (1,685 – Total; 1,541 – South Africa), Spar (2,138 – Total stores in SA) and Woolworths Food Stores (SA: 334 – Woolworths Food; 74 – Woolworths Food in Engen).
Food (International Retailers in South Africa): Walmart has acquired the majority share of Massmart and has expanded the food offering in Game Stores throughout South Africa. Cambridge (>30 – South Africa), Krispy Kreme, Dunkin’ Donuts, Starbucks, Jamie’s Italian and PAUL.
DOMESTIC FOOD RETAILERS IN SOUTH AFRICADOMESTIC NON-FOOD RETAILERS IN SOUTH AFRICA
Non-Food (Domestic South African Retailers):Woolworths (SA: 218 – Woolworths Fashion, Beauty and Home; 82 – Country Road Group), Foschini Group (2,458 – TFG stores in SA), Edcon (Total stores in Southern Africa; 203 – Edgars Division; 686 – Jet Division; 177 – CNA), JD Group (857 – Total stores in SA), Pepkor (5,100 – Total stores in Africa), Truworths Group (813 – Corporate stores in SA), Mr Price Group (1,157 – Total stores in SA) and Mass Mart (381 – Total stores in SA).
Non-Food (International Retailers in South Africa): Le Coq Sportif, Campo Marzio, Inglot, Premier by Dead Sea, Forever New, Gucci, Gant, Louis Vuitton, Guess, Timberland, Lacoste, Zara, Zara Home, Lush, Cotton On, Nespresso, Carvela Shoes, Tiger of Sweden, The Kooples, Aldo, Factorie, Fabiani, Hamleys, Forever 21, Burberry, Bvlgari, Prada, H&M, Michael Kors, Under Armour, Urban Decay, TED Baker, Christian Dior, Cartier, Bang & Olufsen.
The ‘rand’ (also known as ZAR) is the official currency in South Africa. To provide a bit currency context, the cost of a pair of jeans is 800.00 ZAR and the cost of a cup of coffee is 30.00 ZAR.
Menlyn Park Shopping Centre (Pretoria, South Africa)
MENLYN PARK EXTERIOR. PHOTO: ELOCATIONSPHOTO: MENLYN PARKGRAND HALL BENEATH ICONIC ROOF OF MENLYN PARK. PHOTO: MENYLN PARK
Menlyn Park Shopping Centre is a shopping mall situated in Pretoria, South Africa, and is situated adjacent to Johannesburg to the north. The centre was originally built in 1979 and has undergone two renovations and expansions. Menlyn Park Shopping Centre, owned by Pareto Limited, completed its latest renovation in 2016 becoming the largest shopping mall in Africa with 173,500 m² (1,867,538 square feet) of retail and 500 stores. The GLA of the existing centre prior to redevelopment was 117,940 m² (1,269,495 square feet).
The design of Menlyn Park revolves around a number of iconic spaces – the Food Court, the new keyhole malls, a new main entrance and a large internal garden square “Central Park” which is surrounded by restaurants. While Sandton City may promote itself as a premier shopping centre for international and well-heeled visitors, Menlyn Mall has been termed as a “super regional shopping centre” with over 500 stores and at least 37 restaurants and 1.9 million square feet of retail space.
Any tour of Menlyn Mall would not be complete without mentioning the centre’s trademark tensile fabric roof which covers its grand hall. Akin to the travelling ‘Cirque du Soleil’ performance tents or Vancouver Harbour’s iconic convention centre, the fabric membrane spans the entire length of the mall and curves along a custom latticework of steel and cable forming a series of “peaks and valleys”.
RENDERINGS FOR MENLYN PARK AT NIGHT. PHOTO: ROBINGRAND HALL UNDER THE TENSILE FABRIC ROOF. PHOTO: LEE RIVETTGRAND HALL UNDER THE TENSILE FABRIC ROOF. PHOTO: LEE RIVETTGRAND HALL UNDER THE TENSILE FABRIC ROOF. PHOTO: LEE RIVETT
Appealing to the regional visitors, Menlyn Park does not have the luxury offerings of Santon Centre such as Louis Vuitton, Burberry and so on. Menlyn Park targets a more mid-market consumer with retailers such as:
Fashion: Bellissima, Identity, La Senza, Twill, Timerland, Armani Exchange, Billabong, G-Star, Guess, H&M, Hugo Boss, Hurley, Levi’s, Pringle of Scotland, Queenspark, Quicksilver, Tommy Hilfigher and Zara.
Sportwear: Adidas, Le Coq Sportiff, Mr. Price Sport, Nike, Puma, Under Armour and Totalsports
Footwear: Aldo, Converse, Crocs, Hush Puppies, Palladium, Steve Maden, Skechers and Vans
Children: Hamleys, Build a Bear, Lego and Toys R Us
Jewellery: Folli Follie, Daniel Wellington, Pandora, Swarovski, Thomas Sabo, Tissot
Specialty: Sunglass Hut
National retailers also in the shopping centre include Edgars, Pick ‘n Pay, Truworths and Woolworths.
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Photos: Lee Rivett
Photos: Lee Rivett
Photos: Lee Rivett
Photos: Lee Rivett
PHOTO: BILD ARCHITECTS
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Interior Mall Corridors. Photos: Lee Rivett
The variety of retail is dispersed through the mall corridors is remarkable. In addition to the grand hall with its tensile fabric roof, the green design of the central courtyard for perfect for special events and outdoor enjoyment.
Another key area for Menlyn Park Shopping Centre is “Central Park”. The green space located in the centre of the mall is surrounded by restaurants and seating areas. During normal business hours, the gathering place is enjoyed for sharing meals and enjoying the sunshine with the grass spaces.
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'Central Park' within Menlyn Park. Photos: Lee Rivett.
Central Park also has the ability to serve as host to special events (like music concerts) or paid promotions (like auto dealership promotions).
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Initial Renovation Renderings of 'Central Park'. Renderings: Bild Architects
We hope that you have enjoyed Retail Insider this two-part tour of South Africa shopping centers while visiting the country. Let us know what you think, any questions you may have about the comparisons, or if you would like to see more comparisons with international centers.
The pandemic and a lockdown that came into effect on March 27 to contain spread has compounded the nation’s woes, with the central bank anticipating a 6.1% contraction in gross domestic product this year
Prior to the onset of the coronavirus, Africa’s most industrialized economy was already grappling with a 29% unemployment rate and was stuck in its longest downward cycle since World War II — a slump that largely stemmed from nine years of misrule by former leader Jacob Zuma, who left office in 2018.
AERIAL VIEW OF MENLYN CENTRE. PHOTO: BILD ARCHITECTS
An off-schedule podcast discussion with George Minakakis, the Chief Executive Officer at Inception Retail Group Inc. Mr. Minakakis discusses the lead up to the COVID-19 (coronavirus) shutdowns, the current view of Canadian retail and overseas retail perspective on COVID-19 behaviors.
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.
Interview Details:
George Minakakis, Chief Executive Officer at Inception Retail Group Inc.
With May 1 rents looming, thousands of small business owners across the country are upset that landlords are still not stepping up to offer them relief and help as they struggle to stay alive during the vicious economic downturn caused by the COVID-19 (coronavirus) pandemic.
In fact, a survey by Save Small Business, a grassroots coalition of close to 40,000 small businesses across Canada, found that only one in five small businesses expect their landlord to sign on to the Canadian Emergency Commercial Rent Assistance (CERCA) program announced recently by Prime Minister Justin Trudeau.
Jon Shell, a co-founder of Save Small Business, said the advocacy group is calling on provinces to immediately ban commercial evictions until September 30 to bring landlords to the table.
He said the CERCA program is unlikely to succeed without applying more pressure on landlords to sign rent forgiveness agreements with their small business tenants.
Closed businesses for COVID-19 pandemic outbreak, closure sign on retail store window banner background. Government shutdown of restaurants, shopping stores, non essential services.
“We were worried about it so that’s why we asked the question in the survey,” said Shell of the query to small business owners about their landlords’ appetite to support the federal program. “I wouldn’t say that we’re surprised but we’re sort of heartbroken. I don’t know if that’s the right term. It’s a real problem obviously. We’re hearing it all over the place.
“People are talking to their landlords about it and they’re either getting a ‘well let’s wait and see approach’ or a ‘this seems like too much work for me, I’m just not going to do it’.”
The Save Small Business Survey, which was conducted on Monday, found that 67 percent of small businesses said the rent assistance program is the most important support rolled out by governments to date, with the Canada Emergency Business Account loan being picked by 24 percent and the Canada Emergency Wage Subsidy by nine percent. Nearly 54 percent said that without a CECRA rent reduction their business will not survive, with another 43 percent saying the program will make their survival more likely. Only three percent of small businesses said the rent abatement had no impact on their ability to survive.
“The federal and provincial governments should be applauded for designing and agreeing to a rent relief program that is urgently needed,” said Shell. “And landlords that have already initiated conversations with their tenants to come to agreements on rent relief should similarly be commended. But any province that lets May 1st pass without a commercial evictions moratorium is effectively saying that they are unwilling to protect their local community businesses.”
Because participation in the program is voluntary for landlords, and they will still be expected to accept some losses under the program, there is mounting worry many will choose to ignore it, even if badly needed by their tenants, added Shell.
“This points to a program that is overwhelmingly needed by small businesses, but that is doomed to failure without more pressure on landlords,” he said. “Provincial governments need to enact moratoriums on commercial evictions to bring landlords to the table, and consider making the CECRA program mandatory for businesses that have been closed to protect their communities. Otherwise, we will see many more community businesses closing permanently.”
Save Small Business is recommending the following actions:
Provincial governments institute an immediate moratorium on commercial evictions, retroactive to April 1 and extending to September 30, to match the end of the CECRA program;
A mechanism be created for small businesses who qualify for CECRA to notify their provincial government of landlords who decline to offer a CECRA agreement;
Monitoring the uptake of the CECRA program, and consider mandating the agreement for all small businesses who qualify if there isn’t significant uptake of the program;
Provincial governments negotiate with the federal government for a second tier for CECRA, applying to businesses whose revenues have declined between 30 percent and 70 percent. This tier should provide a 50 percent reduction in rent, compared to a 75 percent reduction for the highest tier.
“The stat is that only 25 percent of businesses have two months of cash on hand and on May 15 we’ll be two months into this. So we would expect that 75 percent of businesses won’t have made May rent and that’s what every survey says. So we know that this is going to happen,” said Shell. “Something north of 50 percent, probably closer to 70 percent, simply will not pay May rent, meaning that they will all be under threat of eviction.”
Shell speculated that perhaps for many landlords this is an opportunity to kick out tenants so they can pursue a redevelopment on their properties.
“The thing that makes me incredibly frustrated is to hear landlords complain about this deal. I mean if you think of a landlord with $10,000 a month in rent, their total revenue for this year under this deal is $112,500 instead of $120,000. It’s a tiny cut in their income and it won’t affect any of them at all,” said Shell.
“The average landlord in this country will see a $7,500 drop in revenue on $120,000 which is something like less than seven percent. And they’re complaining. That’s why it should be forced. Any province that doesn’t mandate this is in the pocket of landlords.”
Basically, CECRA will provide forgivable loans to qualifying commercial property owners to cover 50 percent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June; the loans will be forgiven if the mortgaged property owner agrees to reduce the eligible small business tenants’ rent by at least 75 percent for the three corresponding months under a rent forgiveness agreement, which will include a term not to evict the tenant while the agreement is in place and the small business tenant would cover the remainder, up to 25 percent of the rent.
Impacted small business tenants are businesses paying less than $50,000 per month in rent and who have temporarily ceased operations or have experienced at least a 70 percent drop in pre-COVID-19 revenues.
Several issues have emerged. Many are saying the program is complicated and confusing. It also does not include those businesses who have seen revenue reductions of less than 70 percent. Also it doesn’t apply to bigger companies and retailers who are paying $50,000 a month in rent.
Landlords are also wondering about specifics of the program. How is rent defined? Base rent or does it also apply to common area maintenance and property taxes?
Also, it appears as if the government is only providing assistance to landlords who have a mortgage on their property.
