This week on Retail Pulse Check, Craig Patterson and Stephen O’Keefe are joined by industry expert and HR specialist, Suzanne Sears. A portion of the conversation focused on the employee/employer relationship in terms of best procedures for keeping everybody safe as the economy slowly reopens.
Sears talked about dealing with employee fear and resistance when returning to the workplace, creating a safe working environment and employers’ responsibilities to do so, and the importance of building trust between both parties as everyone begins the transition back to the ‘new normal’.
Patterson and O’Keefe also discussed the future of ecommerce post-COVID, the changing dynamics within enclosed retail environments such as shopping centres, and the significance of eliminating ambiguity when it comes to relaying necessary protocols to consumers and staff alike.
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.
Suzanne Sears, President @Best Retail Careers International Inc.
Suzanne Sears is the present of Best Retail Careers International Inc. (BR Careers International Inc.) which is a boutique recruiting agency, located in Toronto and New York City. With a global co-broker network that spans to Australia, Canada, Dubai, Japan, USA and the U.K., Best Retail Careers International Inc. has the right people at the right time!
Toronto-based artificial intelligence (AI) firm Predictmedix (CSE: PMED; OTCQB: PMEDF) has launched screening technologies that will assist businesses by detecting potential COVID-19 infection and other illnesses. The versatile technology will also be used to scan physical spaces to ensure that people are following protocol such as physical distancing and the mandated wearing of face masks.
Earlier this month, Predictmedix filed for a US patent for COVID-19 testing and the technology is being offered to businesses as the world shifts into a new normal. The ground-breaking technology has a wide range of uses and the publicly traded company is expected to see a rapid increase in its share price in the coming weeks amid increased awareness and retailer adoption.
One of the most encouraging new developments for Predictmedix is mass screening for COVID-19. Retailers, restaurants, landlords, and any business with a physical presence will be able to utilize the AI technology to screen for symptoms of the coronavirus as well as for other illnesses. Predictmedix has agreements in place with multi-billion-dollar global conglomerates and the company has further bolstered its team by appointing Kapil Raval, director of AI Business Development at Microsoft, as chairman of their board to expedite Predictmedix’s business development initiatives as the company expands into several markets. Predictmedix was co-founded by Toronto-based Dr. Rahul Kushwah and entrepreneur Sheldon Kales and the company has a team which not only excels in AI related expertise but also in medicine.
Predictmedix technology can also be used as a mass screening technology to detect if there is any unwarranted behaviour in a given space. That includes people breaching physical distancing protocols, be it in a lineup, down an aisle or conjugating in a common area. For businesses that mandate the wearing of face masks, Predictmedix will also screen for that, setting off an alarm or more commonly, alerts to desktop and handheld devices prompting staff to intervene.
The Predictmedix artificial intelligence technology can be integrated into a camera system, such as a CCTV system, to monitor movements in a space. The cost is kept reasonable given the rapid adoption of the technology in daily lives.
The company says that it strictly adheres to privacy regulations in Canada as well as worldwide.
Predictmedix’s AI technology utilizes advanced machine learning that analyses traits detected in the real world to forecast the same criteria in any given location. The technology has a wide variety of uses and commercial (and even residential) users will look to have AI technology installed to screen a new world post-COVID-19. The technology can also be used to determine impairment from cannabis or alcohol, as well as mental illnesses such as depression and dementia, making it a valuable tool for employers to protect and care for their workforce.
Given the reasonable cost and expansive capabilities of Predictmedix’s artificial intelligence technology, worldwide adoption is expected. Already, large healthcare conglomerates are using the technology and the company has also signed a sales contract with Juiceworks Exhibits which has a potential multi-million dollar value. Juiceworks Exhibits is based out of Toronto and Las Vegas and its client roster includes the largest names in North America including McDonald’s, Amazon, and Google, along with a large range of other fortune 500 companies. Juiceworks Exhibits will be incorporating Predictmedix artificial intelligence technology with all of the modular units that the company is providing to its clients. Moreover, Predictmedix has an advanced sales pipeline and its sales team is working round the clock for deployment of their technology across several verticals in North America.
Ultimately, mass screening will be needed to help stop the collapse of the global financial system. The COVID-19 pandemic has turned into a threat for global security and economic stability, which could result in unprecedented job losses not seen since the great depression. Rapid deployment of mass screening technology, while at the same time respecting privacy, could help with a much faster economic recovery.
This advanced technology will also provide confidence to both consumers and employees to re-enter stores and other places of business, knowing that their safety is a priority for owners and operators.
Predictmedix says that its technology can be deployed in any place, including those that experience the movement of a large number of people. That includes shopping centres and other commercial centres, department store and any other retail spaces, restaurants/food and beverage, fitness spaces, airports, casinos, office buildings, transit hubs, healthcare, concerts, arenas and any other gathering place one could become concerned about passing on the infection.
Some are predicting that artificial intelligence will see the world change rapidly with new technologies and that vast wealth would be created for those invested as a result. A report by the Motley Fool predicts that the world’s richest person, Jeff Bezos, could within years become the world’s first trillionaire while some already very wealthy people investing in AI will become even wealthier.
We reported in January that Predictmedix, formerly named Cultivar Holdings Inc., had developed a technology to detect impairment in a person. The technology was initially intended to test cannabis and alcohol impairment in a workplace and since then, Predictmedix says that its artificial intelligence can be used to detect such things as dementia, Alzheimer’s, depression, and other conditions that one may wish to test for. This could have some interesting implications on society with machine learning helping accelerate change that would include a new quality of life in many ways. Helping minimize COVID-19 and its other screening capabilities will rapidly increase the value of Predictmedix and the sky would appear to be the limit, in theory.
The value of the Predictmedix company could skyrocket as the share price continues to rise. Increased revenue and rapid adoption could result in an interesting and rapid growth phase that could reshape part of the future.
King & Bay Mission2Mask: While their normal operations remain temporarily closed, custom and bespoke menswear brand King & Bay is continuing to focus all efforts on creating high quality Canadian-made masks that are highly breathable and have functionalities that help increase protection.
The Mission2Mask program is designed to provide a platform for organizations to purchase masks for internal distribution, now that Canadian’s are slowly retuning to the workplace. Creating a safe and healthy work environment is top priority for organizations welcoming back employees to the office and Mission2Mask hopes to help with this transition.
These masks are readily available for companies who are looking to purchase them on a small or large scale, and as part of the program and ensuring they support the community, King & Bay has a BUY 1, GIVE 1 philosophy in place to give back. For every mask purchased through Mission2Mask, King & Bay is matching this by donating masks to local organizations who are in need of them.
PHOTO: H&M
H&M Provides Garments to Women in Need:H&M Canada is partnering with Women’s Shelters Canada to provide over 20,000 garments across the country. This in-kind donation of three hundred thousand dollars worth of product will help individuals who are vulnerable and possibly exposed to domestic violence during the current pandemic.
The product donation will include a mix of clothing for women and children ranging in sizes, to help these communities meet their needs in this hard time.
In addition to these efforts, H&M Group has taken actions in the previous weeks to help aid in the fight against COVID-19 around the world. In March, H&M Group began quickly arranging for its supply chain to produce personal protective equipment (PPE) to be provided to hospitals and health care workers around the world. In addition, H&M began letting global aid organizations utilize H&M social channels to spread the message of health and safety around the COVID-19 pandemic to followers around the world.
Sephora Canada Partners in Hand Sanitizer Launch: In response to the demand for essential hygiene products, Sephora Canada and brand partner, NUDESTIX, announce NUDESKIN Anti-bacterial Sanitizing Hand Gel.
Formulated by NUDESTIX Founder and Chemical Engineer, Jenny Frankel, the collaboration is part of SEPHORA STANDS, the retailer’s social impact program.
NUDESKIN is now available at Sephora Canada, with all proceeds going directly to the Canadian Red Cross Emergencies & COVID-19 Response Fund.
“As a responsible retailer during this crisis, we want to support communities across Canada in a meaningful way,” says, Debbie McDowell, Director – Social Impact and Communications, SEPHORA CANADA. “SEPHORA STANDS strives to support and empower all Canadians with our initiatives, a value shared by our Canadian partners, NUDESTIX and the Canadian Red Cross. Our contribution will allow the Canadian Red Cross to use the funding where it is needed most, offering flexibility to respond to emerging needs in communities from coast to coast.”
NUDESKIN ANTI-BACTERIAL HAND GEL by NUDESTIX is an antiseptic formulated with vegan-powered, good-for-skin ingredients like glycerin, castor seed oil, green tea extract, and Vitamin E that hydrates and protects hands while instantly killing germs and bacteria that cause disease encountered in everyday life.
NUDESTIX is also donating 10,000 units of 30ml Anti-bacterial Hand sanitizers to the Canadian Red Cross, to support front line workers in health and at-risk communities. An additional 20,000 units will be donated globally to support health and beauty front liners when retail lockdown ends to help stop the spread.
IMAGE: BRAVADO
Bravado TestWear Program: Canadian designer of top-selling nursing bras, Bravado Designs, has applied its expertise to a new online exclusive collection, created in response to consumer demand and inspired by the changing female body.
The intimates brand, which was founded in 1992, has leveraged its success in creating bras for pregnant and breastfeeding women to design two seamless, wire-free styles for everyday wear. Launching exclusively in Canada, Bravado’s MUSE and SCULPT bras have been designed to be supportive and incredibly comfortable, as well as specially sized to adapt to a woman’s shape, size, and fluctuations.
Through its rigorous TestWear Program, Bravado works alongside hundreds of women of all shapes, sizes, and stages. “Our design team listens, measures, compiles feedback and then repeats each step until the design is perfect,” says Bravado Senior Design Manager Lisa Stanton. “This information guides us as we create new and innovative designs that combine comfort and style.” Bravado Designs has created straight-forward and accommodating alpha-sizing (S, M, L, XL, and Full Cup) making it extremely easy for women to find a bra that fits them and not the other way around.
The super soft, luxurious fabric provides the right combination of stretch and knit-in zones for support to ensure a comfortable fit and are specially designed to work across a variety of cup and band size ranges within one size. By taking the guesswork out of the fitting process, Bravado is changing the way women can purchase bras online.
PHOTOS: MAJOR LEAGUE SOCKS
Major League Socks With a Cause: Toronto-based company Major League Socks has partnered with the Canadian Red Cross to launch a new sock collection to support the frontline healthcare workers during the COVID-19 pandemic.
The local company notoriously known for putting Mike Babcock on a pair of socks have since added NHL superstars and legends of the game to their sock roster. The new specialty sock line — Major League Heroes — sees the company swapping out hockey heroes for healthcare heroes, with 100% of the proceeds supporting the Canadian Red Cross. Major League Socks are encouraging Canadians to wear their support for doctors, nurses, and healthcare staff who are keeping our nation safe during this time.
From Uniforms to PPE:McCarthy Uniforms has redirected its production and resources to arm frontline workers with PPE. Leveraging a strong global supply chain network, the company has moved quickly to procure and produce desperately needed PPE to critical locations including Sick Kids, St. Joseph’s Hospital, and Hamilton Health Care Network.
The supplier of school and workplace uniforms has provided more than 100,000 units of PPE to-date.
Making the decision to keep its business open and people employed, the company, that was founded in 1956, decided to dedicate its time and resources to sourcing, distributing, and producing PPE to help protect the essential workers that put themselves at risk every day. The McCarthy team developed a prototyped medical isolation gown made of upcycled school uniform fabric that is being donated to hospitals and nursing homes, in addition to sourcing and distributing protective masks, isolation suits, and sanitizers to workers at hospitals and other essential locations.
“As we fight this global pandemic, we are humbled and proud to be playing a role in protecting our front line workers, and we stand side-by-side with the broad network of Canadian manufacturers that are dedicating each and every day to delivering critical PPE and helping our communities work safely,” said Vanessa Iarocci, President, McCarthy Uniforms. “Our long-standing belief in the power of uniforms to create community couldn’t be stronger as the country – and the world – stands united during this difficult time.”
IMAGE: PANDORA
Pandora Supports Nurses:Pandora have announced its support for Canada’s nurse heroes. As they put themselves in danger to continuously fight the battle against COVID-19, Pandora has decided to deign a Nurse Dangle Charm to honour them.
All proceeds from the Nurse Dangle Charm sold on May 12 — International Nurses Day — will be donated to the Canadian Nurses Foundation. The donation will help provide mental health support and training for nurses navigating this difficult time.
The brand has committed to donating a minimum of $20,000, with the potential to increase the amount based on the number of Nurse Dangle Charms sold.
The charm is available for purchase at $70 CAD on Pandora.net.
DUER LOCATION IN TORONTO. PHOTO: DUER
Canadian Apparel Brand Launches Low-Waste Production Model: Canadian performance denim company DUER, launched NEXT by DUER, a quick response method that lines up demand with supply to cut waste and drive efficiencies.
After losing 75 percent of revenue in less than a week amidst the COVID-19 pandemic, the denim company recognized the need for a new approach to traditional retail. According to Gary Lenett, Duer’s Founder, developing a pre-sale method to line up supply with demand was the only option.
“The old-world way of creating speculative inventory and then running costly marketing campaigns to sell it, is inefficient and wasteful,” said Lenett. “The world is changing and we have to change with it. We are introducing NEXT as a new way of doing business where we gauge demand and then produce exactly what’s needed and the cost savings is passed directly to our customer.”
In the current retail climate, the model of manufacturing products and then executing expensive marketing campaigns to build demand and sell inventory, is no longer economical. NEXT by DUER will introduce a prototype of a product, and customers will have the ability to order pieces at a discount throughout a 3 week campaign period. If minimum thresholds are met, the garment is manufactured and delivered to the customer within 4 to 8 weeks.
This quick response approach will enable DUER to deliver products much faster than a traditional clothing supply chain which would typically take 6-18 months. The first NEXT by DUER campaign is now live at duer.ca.
SCREENSHOT OF DUER WEBSITE
EQ3 Donates Furniture and Helps Make Face Masks:EQ3, the Winnipeg-based, Canadian home furnishing retailer, joins the fight against COVID-19 through several initiatives to support Canadian health care workers.
The company’s vertical supply chain has allowed the brand to quickly mobilize and support the wider community and those most vulnerable during the pandemic. Answering a call for donations from the not-for-profit Main Street Project, EQ3, and its sister company Palliser, have together donated enough product to furnish 39 isolation suites and staff rooms so that Winnipeg’s most vulnerable have a safe space to self-isolate while waiting for a COVID-19 test result or while they’re recovering from the virus. Located in Winnipeg’s downtown, the self-isolation site has health and social service resources available onsite 24 hours a day to support individuals who have availed of the service. For further information on Main Street Project, see here.
In addition, EQ3 and Palliser are working with a local Manitoba-based company to help manufacture face coverings. Tens of thousands of personal protective equipment pieces will be sewn and distributed across Manitoba and the rest of Canada.The company is also working with the provincial government to secure and supply one million medically certified masks (such as N95) to support frontline workers in Manitoba.
NHL Kindness: Seven NHL® players took to social media earlier this month to inspire Canadians to perform Acts of Neighbourly Kindness as they join Kruger Products’ ongoing, national #RollingItForward COVID-19 relief initiative.
The players, including Vancouver Canucks’ forward Bo Horvat, Montreal Canadiens’ forward Phillip Danault, Toronto Maple Leafs’ defenceman Tyson Barrie, Edmonton Oilers’ defenceman Darnell Nurse, Ottawa Senators’ forward Anthony Duclair, Winnipeg Jets’ forward Mark Scheifele, and Calgary Flames’ forward Milan Lucic, are all making donations to Food Banks Canada while encouraging Canadian hockey fans to participate.
“Hockey is Canada’s national winter sport, and NHL® players rank at the top of their game and high in our hearts,” says Susan Irving, Chief Marketing Officer at Kruger Products, a 100-year, third generation Canadian company with operations across the country. “We started #RollingItForward three weeks ago delivering care packages of tissue products to frontline hospital workers in Montreal, Toronto, Calgary, and Vancouver; and by making donations to food banks across Canada,” says Irving. “We hope our collaboration with NHL® players will further inspire Canadians to do their part with an Act of Neighbourly Kindness, no matter how large or small,” she says.
“We’re grateful for the support of Kruger Products and the support of these NHL® players,” adds Chris Hatch, Food Banks Canada CEO. “It has been incredible to see Canadians from coast-to-coast come together to help their neighbours who are experiencing hunger,” he says.
Kruger Products is also recognizing Canada’s frontline workers and their outstanding effort with a $200,000 donation to The Frontline Fund, a network of more than 160 hospital foundations across the country created to deliver resources to frontline healthcare workers protecting Canadians against COVID-19, as part of its #RollingItForward initiative.
Canadian Philanthropists Partner to Create Easty-to-Build Ventilator for COVID-19 Patients: Canadian philanthropists — including Empire’s Donald Sobey — back ventilator project headed by Nobel Laureate Arthur McDonald
DONALD SOBEY
A team of Canadian physicists and engineers are combating COVID-19 by taking part in an international initiative to create an easy-to-build ventilator that can help treat COVID-19 patients.
The MVM Ventilator project is led in Canada by Arthur B. McDonald, an emeritus professor at Queen’s University and the co-recipient of the 2015 Nobel Prize in Physics, and heavily supported by Nova Scotia-based Donald Sobey, a Queen’s alumnus and the chair emeritus of Empire Company Limited.
ARTHUR B. MCDONALD
“Dr. McDonald’s leadership and brilliance in developing a Canadian solution to the global ventilator shortage during the COVID-19 pandemic is inspiring,” says Mr. Sobey. “He is one of the leading scientific minds in the world, and a source of pride for all Canadians. But when we spoke on Easter morning about the urgent issues facing his project, I was compelled by the voice of a true humanitarian.”
The collaboration has gained national attention, including a strong statement of support from the federal government.
The MVM Ventilator project is proceeding well toward its goal through successful testing of the ventilator in Italy, Canada, and the US for certification, guided by medical experts. The collaboration team is working with manufacturers who are capable of production at rates up to 1000 per week in the near future. In Canada, the production companies will be Vexos in Markham, Ontario and JMP Solutions in London, Ontario.
Dr. McDonald extends his thanks for this valuable support. “The very generous donations by Donald Sobey and the other philanthropists have been crucial for us to maintain our research at a very critical time in the project.”
Food Banks Canada Launches Next Phase Campaign: ‘I ATE’ to Raise Remaining $70M in $150M Appeal:Food Banks Canada has announced the next phase of its I ATE campaign with the goal of raising $70 million. This amount marks the remainder of the $150M appeal that was initially announced in March.
Concerned about ‘COVID-19 fatigue’, Food Banks Canada CEO Chris Hatch explains the intent of this campaign is to remind Canadians that their food insecure neighbours still need help, even more so once the pandemic restrictions are eased.
“As the federal and provincial governments begin lifting the COVID-19 lockdown measures, that doesn’t mean the demand for support from food banks disappears,” cautions Hatch. “We’re still dealing with the aftermath of the Great Recession, and that was more than a decade ago. Now we have to brace ourselves for an even greater surge over the coming months, with many food banks across Canada already reporting spikes in client visits.”
To date, $80 million of the $150 million goal has been secured; $12 million from individual donors, of which $8 million was a result of the stronger together concert (the most watched non-sports Canadian broadcast on record), $18 million via corporate partners and private foundations, and $50 million from the Government of Canada. Funds raised to date are going towards sourcing essential food and support items for the food banks across the network and providing financial support to change their operations to adhere to the social distancing guidelines.
At the crux of the campaign is the microsite, which is supported by social media and digital ads running on donated ad space from media partners. At launch, the campaign includes digital out-of-home media donated by Pattison Outdoor and ad properties on the dating platform Plenty of Fish (ca.pof.com). The campaign was created by The Local Collective, a Toronto brand and advertising agency.
“The problem Food Banks Canada is trying to solve—eliminating hunger—was already massive in scale before the COVID-19 pandemic struck. We knew that in the face of this crisis, they would need a much bolder approach than usual to meet their fundraising goal,” explains Matt Litzinger, President and Chief Creative Officer, The Local Collective. “Every person should have the ability to say I ATE, every day, as often as they need to. And that is our mission, with your help and all of our help we can make sure every family, friend and person can say this powerful phrase.”
To donate or become a fundraiser for Food Banks Canada, visit iate.ca.
News on the weekend that an iconic Calgary restaurant was closing its doors for good has spread like wildfire on social media networks as people react to the end of an era for Buon Giorno – a well-known dining establishment that over the years hosted business and political power brokers.
On the weekend, Claudio Carnali, one of the owners of the establishment, posted a simple notice on the windows of the popular dining destination along the busy 17th Avenue S.W. corridor, located just outside the downtown core.
“We are Sorry,” said the sign. “Buon Giorno Ristorante Italiano is closed for good under the management of Claudio and Michael Carnali. Thank you to all our patrons for their continuous support over the past 4 years.”
Under the previous owners, Buon Giorno had operated from the late 1980s as a brand, becoming one of the city’s most recognized restaurants. Famous politicians and business executives frequented it including former Calgary Mayor and Alberta Premier Ralph Klein.
CLAUDIO AND MICHAEL CARNALI.
But a number of factors, including the current COVID-19 crisis, led to the difficult decision of permanent closure. Unfortunately, it’s a decision that is being contemplated by many in the industry as economic challenges persist.
“One of the main reasons was the capacity of 40 or 50 percent there was no way we could even survive,” said Carnali, of the provincial government’s guidelines for reopening of restaurants. “Of course, having to sanitize the bathroom every time people went in and most probably putting the plexiglass and so on and so forth.”
Other factors included high rental costs and the possibility of that increasing. “My wife and I decided that it wasn’t worth it because what happens in the fall if the curve (of COVID) cases starts to go up again and the government comes and says we’ll have to shut everybody down again. And not knowing how long and putting the money out to reopen and then losing it, I would have to pretty much start using my retirement money. So it’s better that we close,” explained Carnali, who was also the owner of the Il Gato Nero restaurant in Calgary which closed down permanently following the city’s big flood in 2013.
“It was very hard. When you start doing all these calculations plus the money you need to reopen . . . it just left us with no choice but to close. We feel bad. It’s hard to make a living when you have full capacity but when you go down to 40 to 50 percent capacity that’s tough. I’ve been a restaurant owner since 1993. It’s been really tough.”
BUON GIORNO. PHOTOS: 17TH AVE
BUON GIORNO. PHOTOS: 17TH AVE
Mark von Schellwitz, Vice-President, Western Canada, Restaurants Canada, said Buon Giorno is just one of the sad stories that add to the other ones.
“I’ve talked to a number of members over the last couple of months that have gone through that painful decision to close. It’s not easy,” he said.
Some restaurants that can, have already reopened after being temporarily closed during the COVID shutdown. Some are still looking to reopen but they want to make sure they have their plans in place.
“Basically it’s a new business plan. Can they actually make a go of it at 50 percent capacity. Some have done the math and they’ve concluded that they can’t make a go of it at 50 percent capacity. So that’s a problem,” said von Schellwitz.
“One of the things that did help in making that calculation was the extension of the wage subsidy but even there you can probably make a business case with the wage subsidy that you can be viable but what happens when that’s finished at the end of August. You’re still likely going to be at 50 percent capacity but then you have to pay the full wage cost. That may be the tipping point where it’s no longer viable.
“The other big reason that we’re hearing that people can’t reopen is they just have no more working capital to work with. They’ve used all their emergency funds in the last couple of months and as you know opening up a restaurant takes some money. You’ve got to purchase your perishable inventory, you’ve got to get your staff back in, train them, you have to put a whole new plan together. That takes time and that takes money.”
PHOTO: BRASSERIE KENSINGTON
He said many restaurant owners have put their life savings into the industry and they’ve had a rough go of it even before the COVID crisis just to try and break even.
“Now with no cash flow at all, it’s forcing a lot of those small restaurateurs to make a decision of whether or not it’s feasible reopening or do they cut their losses now,” he said.
“Without some of these government programs there’s no way it would be feasible for them to open and even with the programs it may be feasible for the next few months but if conditions don’t change they just don’t see this as a long-term working model unless of course they’re changing a lot of their focus to take out and delivery because I think that’s going to be here to stay.”
Calgary restaurant owners Cam Dobranski and Jacqueline Warrell have decided to close one of their establishments, Brasserie Kensington, but will reopen with a new concept. The Brasserie was open for about 10 years. The decision to close Brasserie was made prior to COVID.
“We were looking to change with the times. We were ready for a change. We felt Calgarians were ready for a change. The economy in Calgary and Alberta hasn’t been great for the last couple of years. Brasserie just ran its course. I think restaurants have a certain lifespan and it was time for something new. The new concept we have planned is actually even more relevant now than it was pre-COVID,” said Warrell.
“The new concept is designed to be much more approachable in terms of food, price point. It’s intended to be fun. The idea behind it was to get back to having more fun with food, simple roots.”
Like everyone else in the industry, it has been a challenge.
“To put it into perspective, we probably worked 14 hours for eight weeks straight and never made any money. It’s extremely difficult,” said Dobranski. “Luckily we have a lot of people supporting us and our landlord is helping us out as well. Otherwise we would have been done about seven and a half weeks ago.”
“Margins in the restaurant business are so small as it is. The economy in Alberta hasn’t been great for awhile. I think there’s been a lot of restaurants that have been just surviving so when COVID happened it wasn’t like they had stockpiles of savings to draw on. That isn’t a reality. I think it’s going to be tough for us and for restaurants coming out of this too.”
Warrell and Dobranski also own two other establishments - Winebar Kensington and the Container Bar - and with social distancing measures in place they will open between 30 to 40 percent capacity. They are also partners in Shokunin, another Calgary restaurant.
Montreal-based Lightspeed POS Inc., a leading provider of omni-channel point of sale platforms, experienced explosive revenue growth in both its fourth quarter and fiscal year 2020 which ended March 31.
The company recently reported that total revenue of $36.3 million in its fourth quarter was an increase of 70 percent compared to the similar period a year ago while total revenue for the year of $120.6 million was an increase of 56 percent.
“We are witnessing a historic shift in the way small and medium-sized businesses, the businesses at the heart of our communities, engage in commerce. Being omni-channel has never been more important,” said Dax Dasilva, Lightspeed Founder and CEO. “Our merchants are progressive, omni-channel thought-leaders that continuously reinvent the retail and hospitality landscapes. We are proud to be their key technology partner and are committed to powering their growth.”
“We delivered strong financial results to finish up our fiscal year, despite the difficult macro environment encountered through the back half of March,” said Brandon Nussey, Lightspeed’s CFO. “While the effects of COVID-19 will cause some uncertainty for the foreseeable future, we are encouraged by the signs we are seeing for Lightspeed’s solutions and what it signals for our long-term potential. With over $210 million in unrestricted cash we are well positioned to invest smartly through this period and emerge as an even stronger global leader for our customers.”
Lightspeed said it saw a record uptake in March of Lightspeed eCommerce, Lightspeed Delivery, and Lightspeed Payments platforms as retailers and hospitality businesses worldwide adopted new sales channels to continue reaching customers amidst the outbreak of COVID-19. The need for an omni-channel cloud solution coupled with modern, integrated payment solutions is no longer a competitive differentiator, but a business imperative, it said.
But in its fourth quarter Lightspeed experienced a net loss of $18.6 million compared to a net loss of $96.1 million a year ago and for its fiscal year it had a net loss of $53.5 million compared to a net loss of $183.5 million in 2019.
“The effects of the COVID-19 pandemic and related government shutdowns are impacting retailers and restaurants globally. We anticipate that customers’ GTV (gross transaction value) and the demand for our services will be impacted and business failures in our customer base will increase so long as social distancing measures remain in place in the core markets we serve. However, Lightspeed’s solutions have been helping to offset the toll that the pandemic is taking on hospitality and retail industries around the world,” the company said in a news release.
The company said the following trends have been apparent since the quarter end:
Despite present economic conditions, approximately three-quarters of Lightspeed’s customers are actively trading, meaning that they are processing volume through Lightspeed’s omni-channel cloud solutions;
eCommerce adoption remains robust with a 400 per cent increase in eCommerce volumes processed by Lightspeed retailers in April as compared to February levels;
Overall GTV from Lightspeed retailers in April grew approximately 50 percent from March levels;
Lightspeed Payments revenue had a record month in April, led by increased online sales, the impact of new customer adoption, and good performance across a subset of verticals such as home and garden, bike and pet;
Hospitality customer volumes remain challenged due to the ongoing government mandated shutdowns affecting most markets. Lightspeed’s hospitality revenue base is mainly subscription software revenue that is not variable to underlying customer volumes, with the largest concentration in countries like Australia, Germany, Belgium, Switzerland, the UK, and France;
The number of hospitality customers now using home delivery and curbside pickup options has increased sharply. In Australia, for example, there has been five times the volume through these channels versus a year ago; and
New customer demand was encouraging through April with new retailers, golf courses, restaurants and mid market opportunities all choosing Lightspeed solutions. While churn and customers on reduced subscription plans remained elevated compared to historical norms, Lightspeed ended April with approximately 75,500 customer locations subscribed to Lightspeed solutions.
“Heightened uncertainty in the global economy is having an acute impact on everyone, including our customers, their consumers, our partners, our suppliers and our employees. The degree to which COVID-19 will affect our business, operating results and financial condition in upcoming quarters will depend on future developments that are highly uncertain and cannot currently be predicted,” said Lightspeed.
“In response to the present uncertainty, we have strategically re-directed discretionary spending and funding for certain go-to-market initiatives towards solution innovation. We believe we are witnessing an urgent and lasting paradigm shift in the needs of small and medium-sized retail and hospitality businesses and we believe strong fundamentals, including our broad omni-channel cloud solution set, geographically-diverse customer base balanced between retail and hospitality, subscription-based software business model, compelling payments offering, and strong balance sheet, position us well to capitalize on this shift.”
Retail will never be the same. In the last few months, retail has had to rethink its entire operation and approach to customer service to meet the pressing demands of today’s new normal. While most have done a pretty good job at securing their location(s) during the extended closures, some shops have been more exposed than others. Some businesses that were serving customers on a 24-hour service model had to shut down during this unprecedented situation and have become targets of break and enter. Perhaps because the level of protection was less due to them being unoccupied and closed for a long period. Perpetrators consider this kind of downtime as opportunistic, easy targets for break ins and shoplifting.
However, things are changing and some street facing retailers are starting to open their doors, but they are doing so in a post-crisis fashion, slowly, step by step, and with great caution. Their long-term strategy for doing business has been re-evaluated with strong commitments to the health and safety of their workers and customers. Policies and procedures are being reconsidered with an emphasis placed on protection and caring to respond to the essential needs of the communities that they serve.
The latest from the Retail Council of Canada, indicates that health and safety will remain of top concern for retail operators, employees, and customers during this transition period. This means properly restructuring floor plans to accommodate individual space, reducing store traffic congestion, elevated cleaning standards and sanitation, adding protective payment and serving barriers, employee and customer screening, and protective equipment.
SCREENSHOTS FROM AXIS WEBSITE
Surveillance helps with more than just protection
While retailers aim to comply with local regulations for reopening and what the new normal will look like, things like proper signage come into play, staff training on procedures and best practices, creating traffic patterns for physical distancing, and technology that can also help.
For retail locations that remain closed, good surveillance is key for remote monitoring to view activities outside of the store and to build incident reports to flag and file video recordings as evidence. When situations of theft, violence or other incidents occur quality video recording are critical. Owners need a clear picture of what occurred. For stores that are slowly re-opening, surveillance solutions can be added to provide store occupancy levels, audio recordings to create reminders of distancing and hand washing or providing cross line detection and customer instructions. Cameras can provide video detection of cars arriving for curbside pickup, where an audio announcement is then made, advising the customer to remain in their car while the order is being prepped and brought out. In this case, it’s all about recording the activity to have verification of who picked up their goods or for delivery pick ups. By using video and audio solutions, owners can also deter loitering and they can gather evidence recordings to support assault threats from irate individuals in the store. When considering surveillance to address the current challenges and to get the best investment, consider having the following:
A business continuity plan in place that includes how to handle the day-to-day and remote surveillance to protect property, assets, and people
A customer service strategy that lists standards for a positive customer experience
Intelligence tools that meet the risk assessment for occupancy (people counting), face mask detection, remote door stations with audio and video, and audio for remote communication deterrents
A checklist for emergency store closings and openings
An up to date contact list with those on furlough removed
Updated policies and procedures. In the case of Personal Protective Equipment (PPE) there should be standards for what is required
Solutions for new retail requirements
Retailers can retrofit their locations with simple surveillance systems, and in some cases, technology can be added using their existing system. It’s a matter of identifying the needs and then the technology to solve the issue(s).
Something like an occupancy estimator is a cost-effective method of accurately estimating the amount of people on the premises, so that a retailer can better understand visitor patterns and how their space is used. This valuable data capturing can help analyze overall occupancy for physical distancing measures, understand customer trends and enhance utilization of the space while providing the ideal environment to enhance customer experience and increase operational efficiency.
Occupancy estimator will assist with government regulations limiting the number of customers in a store, so the solution is also a smart option and can be used to cover single or double or multiple door entrances as multiple cameras with the application embedded can be linked to provide synchronized counting. With reliable two-way counting of people in both directions simultaneously, store operators can quickly analyze customer flow and identify peak visiting times. This direct access to real-time counting data can help stores make informed decisions like planning and allocating staff or security guards more effectively to safeguard staff and customers, ensure distancing and increase operational efficiency.
As customers try to accept the new normal in their retail experience, aggressive behaviours can escalate in a time when patience and physical safety are essential. Many safety and security incidents are preceded or initiated with sound. A camera with partner software for advanced audio analytics can help in vulnerable situations. This dual system continuously listens for pre-defined noises and initiates an alert when it hears aggressive behaviour, glass break or gunshot, ensuring immediate attention by store staff or security operators, who quickly can evaluate the situation by watching live video feeds and take necessary measures.
For customer experience and messaging speakers can be added to the system, enabling remote, immediate communication with customers. This in the immediate future reminds customers of physical distancing message to remain 6 feet or 2m apart, a hand washing message in the washroom area or a reminder message when someone walks through the entrance.
License plate recognition (LPR) can help to increase everyday efficiency and service levels like recording and capturing who is picking up at curbside or for added security measures in and around the building or in the parking lot. This requires a camera and partner software that runs either on the camera or on a server. It automatically captures the license plate in real-time, compares or adds it to a pre-defined list and then takes appropriate action such as generating an alert. The arrival of customers can also be enhanced my providing outdoor messaging that assistance will be with them shortly.
With the exponential rise in Uber or DoorDash food pickups, network door stations to notify staff when someone is at the store or restaurant for pick up, in addition to a contactless entrance is effective and sanitary for operators, drivers and finally for customers receiving the order. Door stations combine video surveillance, two-way communication and remote entry control in a single device. They’re a great option for install at entrances where many known and unknown visitors pass through on a regular basis and eliminates a high-touch door handle. They can also be used as intercom help points or emergency phones within a larger area.
The newest of technologies is body worn cameras that can be used by staff to record any activity at the touch of a button or continuously. With these new precedented times the safety of the stores greatest asset is people and using body worn can provide a complete capture of evidence that may be needed should an incident arise. The video recording is uploaded at the end of the shift by placing the device in the charging cradle.
What to watch for and who to ask
In these last few months, there has been a rash of new surveillance technologies introduced to the market, that may or may not meet mandated regulations or the criteria retail owners or restauranteurs need. Retailers and restauranteurs should be cautious and should not rush and purchase solutions that are for a temporary need, but that can assist the business in the long term.
Trusted surveillance integrators and suppliers who know the business should be who retailers go to at this time. Also, they should consider going straight to the manufacturers, as they know the technology better than anyone. Consultants and/or industry professionals who understand these verticals can also be a good source. Gathering all stakeholders and eco system partners can truly build the best solution for the business to obtain maximum benefit. Don’t purchase any shiny objects. Buy meaningful solutions for your business.
Rick Snook
Rick Snook is the Business Development Manager for Retail and Banking at Axis Communications. In this role he provides support and education and assists with providing comprehensive and sustainable solutions to our large end users while protecting our channel partners. Rick holds a Physical Security Professional (PSP) certification from ASIS International, Loss Prevention Qualified (LPQ) from the Loss Prevention Foundation, CPTED Level 1 as well as an Axis Certified Professional (ACP) designation from Axis Communications.
An off-schedule podcast discussion with Dr. Rahul Kushwah, the co-founder and Chief Operating Officer at PredictMedix Inc, an artificial intelligence (AI) company with technology that tests for symptoms of COVID-19 and can be used to monitor spaces. Dr. Kushwah discusses how PredictMedix AI can screen for COVID-19 and physical distance enforcement in stores, malls, and any physical space.
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.
With the retail sector starting to re-open due to the COVID-19 crisis, cannabis retailer Tokyo Smoke is looking at expanding its footprint and perhaps continuing to offer delivery service and curbside pickup for customers.
During the closure of stores for the past two months, Tokyo Smoke stayed open by offering Click and Collect curbside pickup and cannabis delivery services – and it did it so well that it was able to retain a significant amount of its customer base.
“We have exciting plans for the expansion of the brand, specifically in Ontario. The recreational cannabis licensing opened up earlier this year,” said Melissa Gallagher, Director of Franchising at Canopy Growth, which owns Tokyo Smoke. “Prior to March of this year, the retail cannabis licensing was done through a lottery system first awarding 25 licences and then through a second lottery awarding another 50 licences.
“Through that process we were able to secure 12 locations in Ontario – 12 of the first 75. Now that licensing has opened we’re really excited to grow that footprint with those existing and new licensees right across the province.”
The company’s Tokyo Smoke location at 333 Yonge Street in Toronto is Ontario’s largest cannabis retail location at 6,500 square feet. The space was formerly occupied by an HMV music store. There are nine Tokyo Smoke locations operating currently in Ontario with three more opening in the coming weeks. There are also five in Manitoba.
Gallagher said the company has locations in Alberta it will be opening once licensing allows.
“We do have aggressive growth targets. We’re primarily focused on Ontario based on the current regulations,” she said.
Tokyo Smoke sells a range of cannabis products - flowers, vapes, oils, capsules, chocolate gummies, and beverages. It also offers cannabis accessories and apparel.
Gallagher said the company is very excited to re-open to foot traffic again but will still offer curbside pick up and delivery for those people who would prefer to shop that way.
She said the Tokyo Smoke business has been resilient through this economic downturn caused by the pandemic. It has been able to focus on the absolutely necessary tasks to help accelerate the business during this challenging time.
The company had been working on its click and collect concept prior to the COVID outbreak.
“We had been really refining the store operations and ensuring that it was a program that was seamless from the user perspective and also from the store perspective,” said Gallagher. “So we had the ability to launch that, which has had an incredibly positive impact on the stores and their ability to safely serve their communities and also retain the business. We do see in some markets some of our stores have been able to retain up to 80 per cent of the sales they were doing pre-COVID,” explained Gallagher.
“The ability to be able to launch programs like click and collect and deliveries has given our licensees’ ability to retain a significant amount of the business.”
She said delivery is currently available under the temporary emergency order in Ontario meaning that until May 29 the Tokyo Smoke stores will be able to offer the delivery service.
“Then we hope if it’s the right thing for the licensees and the province that we’ll be able to continue to offer that for the long term,” added Gallagher, who said it will continue to offer curbside pickup.
“We’ve seen consumer behaviour shift quite seamlessly to curbside pickup. Not just in cannabis but basically across all of retail and we think it’s a seamless way to shop.”
700 BLOCK OF THURLOW STREET IN VANCOUVER. PHOTO: LEE RIVETT
By Retail Insider
Some retailers in British Columbia began reopening doors on Friday May 15, and pent up demand is said to be resulting in strong sales at some stores as consumers return after nearly two months of store shutdowns due to the COVID-19 pandemic.
Retail Insider’s Lee Rivett and Ritchie Po took photos for this article. Mr. Rivett toured downtown Vancouver over the weekend and Mr. Po toured CF Richmond Centre. As per law in British Columbia, stores in enclosed malls have been permitted to reopen along with businesses that have exterior entrances (to date retailers in enclosed malls in provinces such as Ontario have not been permitted to reopen).
Some retailers are saying that pent-up demand is resulting in strong retail numbers. Retail Consultant David Ian Gray, founder and strategist at DIG360 Consulting Ltd., said that the Zara store on Robson Street saw very strong sales numbers when it reopened on Friday May 15. Retailers in the area have said that pent up demand has resulted in a situation where consumers are coming out of their homes with a purpose to spend money. Gray said that other retailers had said that sales were strong. The H&M store at CF Pacific Centre was busy and spaced out. Last week some stores in the downtown Vancouver mall weren’t open yet he said.
One source with a luxury brand noted that even when stores were closed, the well-known brand had seen comparable sales through remote clienting as when the retail space had been open before the shutdowns. This is interesting as it appears to show that high retail sales can be obtained by some brands even if a physical store isn’t present.
Not all stores have opened yet. Those that have are taking precautions, many of which have been mandated by governments. That includes occupancy limits, physical distancing protocol, sanitization and reduced store hours. Some retailers are providing face masks to guests and hand sanitizer is becoming ubiquitous.
The following are photos taken over the past few days in downtown Vancouver and Richmond.
COVID 'Reopened' versus 'Shutdown' (Swipe to Compare)
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Aritzia Reopened (Photo taken May 22, 2020) by Lee Rivett.
Aritzia Closed (Photo taken April 25, 2020) by Lee Rivett.
Above: A lineup at the Artizia store at the southwest corner of Robson Street and Thurlow Street. Aritzia says that it is seeing strong sales numbers amid pent-up demand.
COVID 'Reopened' versus 'Shutdown' (Swipe to Compare)
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Hublot, De Beers and Tory Burch Reopened (Photo taken May 22, 2020) by Lee Rivett.
Hublot, De Beers and Tory Burch Shutdown (Photo taken April 25, 2020) by Lee Rivett.
Above: Luxury stores in Vancouver’s Alberni Street ‘Luxury Zone’ have begun to reopen. It’s too soon to tell for some how sales will be. Many of these retailers have private shopping areas which will no doubt be a good thing at this time as well as into the foreseeable future.
PHOTO: LEE RIVETT
Above: The Versace store at the southwest corner of Thurlow Street and Alberni Street hadn’t opened as of the weekend, as per the photo above, but should be soon.
PHOTO: LEE RIVETT
Above: The Prada flagship store at the southeast corner of Alberni Street and Thurlow Street is open once again. The store had been shut for weeks and product had been removed.
COVID 'Reopened' versus 'Shutdown' (Swipe to Compare)
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Burberry Reopened (Photo taken May 22, 2020) by Lee Rivett.
Burberry Shutdown (Photo taken April 25, 2020) by Lee Rivett.
Above: The Burberry store at the northwest corner of Alberni and Thurlow Street in the photos above once again has product on the shelves and is open to the public with limited capacity.
COVID 'Reopened' versus 'Shutdown' (Swipe to Compare)
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Saint Laurent Reopened (Photo taken May 22, 2020) by Lee Rivett.
Saint Laurent Shutdown (Photo taken April 25, 2020) by Lee Rivett.
Above: Saint Laurent on the 700 block of Alberni Street has reopened after being boarded up for weeks. Moncler will open soon.
OVO (former Boys’co location). PHOTO: LEE RIVETT
Above: Some stores on Robson Street are still in the process of reopening. The OVO store in the photo above includes a door person wearing a face mask.
PHOTO: LEE RIVETT
Above: A reopened Club Monaco flagship store on Robson Street. Doors were left open to welcome guests while creating a sense that the space is well ventilated.
ROBSON STREET DURING REOPING AFTER COVID SHUTDOWN. PHOTO: LEE RIVETT
Above and below: Another shot of the 1000 block of Robson Street with soon-to-open retailers.
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Above: Lululemon is beginning to reopen its stores, including its flagship on Robson Street at the corner of Burrard Street. Many storefronts in Vancouver were boarded over for weeks and artwork was painted to help lift spirits for those passing by.
PHOTO: LEE RIVETT
Above: A door person in a mask at the Tiffany & Co. flagship at the northwest corner of Alberni Street and Burrard Street. Below: The Jimmy Choo and Rimowa stores on Alberni Street have yet to reopen — Rimowa is new and replaces multi-brand ‘Artino’ which occupied the space for several years.
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Above: A photo of foodservice business Thierry which has yet to reopen. Below is optical retailer Oliver Peoples which should be open again soon.
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Above and below: Luxury retailers on the 1000 block of Alberni Street.
COVID 'Reopened' versus 'Shutdown' (Swipe to Compare)
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Panerai, Jaeger-LeCoultre and Lao Feng Xiang Reopened (Photo taken May 22, 2020) by Lee Rivett.
Panerai, Jaeger-LeCoultre and Lao Feng Xiang Shutdown (Photo taken April 25, 2020) by Lee Rivett.
PHOTO: LEE RIVETT
Above and below: The 1100 block of Robson Street — Muji is expected to open soon. Below, the Nike store opened last week.
PHOTO: LEE RIVETTPHOTO: LEE RIVETT
Above: the soon-to-open Victoria’s Secret store at the northeast corner of Robson Street and Burrard Street. We reported last week that 13 Victoria’s Secret stores in Canada will close permanently.
Below are photos by Ritchie Po of CF Richmond Centre, located south of Vancouver.
PHOTO: RITCHIE PO
Above: the Hallmark store at CF Richmond Centre features directional arrows, as well as a more spaced-out configuration.
PHOTO: RITCHIE PO
Above: Montreal-based eyewear retailer BonLook has opened at CF Richmond Centre. Prior to COVID-19, the retailer was expanding physical retail locations rapidly.
PHOTO: RITCHIE PO
Above and below: The mall’s Zara store has opened with spaced out merchandise and sanitization protocol.
PHOTO: RITCHIE PO
PHOTO: RITCHIE PO
PHOTO: RITCHIE PO
PHOTO: RITCHIE PO
Above: Shoppers Drug Mart in CF Richmond Centre is open. Beauty product testing has been halted for now.
PHOTO: RITCHIE POPHOTO: RITCHIE POPHOTO: RITCHIE PO
Above: Some stores have yet to reopen dressing rooms. This is posing a challenge as some retailers are also hesitant to accept returns at this time. Fashion retailers are quarantining clothing that has been returned or tried on. The quarantine periods generally range between 24 hours and three days.
PHOTO: RITCHIE PO
Above: Sleep Country Canada, which has been rapidly expanding into malls, is welcoming guests with caution. Below, Journeys has moved displays from the centre of the sales floor to create more space for physical distancing.
PHOTO: RITCHIE POPHOTO: RITCHIE PO
Above: Hugo Boss at CF Richmond Centre. The photo below is of the mall’s food court which does not yet allow guests to sit to eat.
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In the photo above, the Hudson’s Bay department store at CF Richmond Centre has reopened with spacing, occupancy and safety protocols. Many Hudson’s Bay stores in the country have recently reopened, with more to come.
PHOTO: RITCHIE PO
Above: A normally busy Apple store. Spacing has resulted in significantly less guests in the space at one time. The photo below shows another angle of the lineup for the Apple store.
PHOTO: RITCHIE POPHOTO: RITCHIE PO
Above: The newly reopened Uniqlo store at CF Richmond Centre. The store carefully guides visitors through the vast space.
PHOTO: RITCHIE PO
Above: The Muji store at CF Richmond Centre features arrows directing shoppers that are being asked to line up. The store’s merchandise is much more spread out than prior to the store shutdowns.
Tomorrow we’ll take you on a photo tour by Jessica Finch and Craig Patterson in Toronto.
During “normal” times, credit provides a means for consumers and businesses to make purchases and investments when they’re short on cash. If used responsibly, credit cards can also be a good way to accumulate travel rewards and take advantage of cashback deals. Sadly, these are anything but “normal” times.
The Effects of COVID-19 on the Credit Industry
The COVID-19 pandemic is hitting consumers and businesses all across Canada and the rest of the world. Reports estimate that Canadian unemployment stands around 7.5%, the highest rate the country has seen since the 2008 economic crisis. As a result, many consumers need to fall back on credit while they await unemployment benefits.
The Coronavirus has forced many to live their life online, safe inside their homes. Businesses have been forced to reexamine their online platforms to successfully ride out this wave. Since shipping services are deemed essential services, buying goods online has become the go-to outlet for much of the population. It would not be surprising to see a jump in online credit card use for the first quarter of 2020 (and throughout the year) as compared to 2019. According to a study by Canadian Payments Insights, a company offering analysis into the payment habits of Canadians, in 2019 “credit cards were the most popular payment method for online purchases in Canada.” Canadians used credit cards for more than 66% of all transactions in 2019.
However, the crisis is not just affecting consumers. With less cash to spend, retail stores are also taking a huge hit. Fortunately, Canadian businesses do have access to increased credit thanks to the Business Credit Availability Program (BCAP), Canada Emergency Business Account (CEBA), and other economic initiatives. That said, delays in certain government benefits could cause many retailers to close their doors for good.
Delays in Government Benefits
While Canadian citizens also have access to emergency government funds, the application process and wait times have left millions of individuals without a stable income for weeks at a time. This means that credit cards are being used in place of cash and debit cards. Consumers are turning to credit to pay for just about everything — from groceries to rent.
Right now, credit cards are a necessity for a lot of Canadians, but they also pose a financial risk. Nobody knows exactly how long the Coronavirus pandemic will continue, but many experts believe that there will not be a vaccine (or economic stability) for at least a year. Relying on credit cards and unemployment benefits for months at a time could be the only solution for many until day-to-day life returns to normal.
Tips to Stay Afloat
In this time of financial hardship and uncertainty, Canadians must remember not to overextend themselves. Acting responsibly and budgeting carefully could make the difference between weathering the storm successfully and experiencing long-term financial instability. So, here are a few tips to help Canadian consumers maintain fiscal responsibility during this crisis:
● Don’t use all of your cash reserves immediately – If you have cash on hand, consider yourself lucky. However, you shouldn’t spend all of your cash first. Instead, try to strike a balance between cash and credit. This way, if an emergency comes up that requires cash, you will have cash on hand to deal with it.
● Don’t overdo your debt repayment – Usually, paying more than the minimum on your credit cards is a good thing. However, in a time when your cash flow could be inconsistent, you shouldn’t spend extra cash unless it’s absolutely necessary. Pay what you can without taking away too much from your available funds.
● Dip into your savings if necessary – COVID-19 presents the biggest crisis of our generation. If there’s ever been an emergency that required drastic measures, this is it. While you don’t want to drain all of your savings or retirement fund, you shouldn’t be afraid to take out some cash when you really need it.
● Don’t be afraid to ask for help – The Canadian government has instituted a number of programs to help individuals get food, medicine, and money during this crisis. Research which benefits you are eligible for and apply as soon as possible.
