Ron Cecillon, a veteran of the hospitality industry, has taken over as the new Chief Executive Officer of Balzac’s Coffee Roasters with plans to grow the brand from its base in southern Ontario to other parts of the country.
“We underwent an extensive search and selection process and met with some amazing candidates. In the end, all parties unanimously agreed that along with his deep industry expertise, Ron best reflects our company’s values and culture,” said Diana Olsen, the company’s president and founder.
“We feel so fortunate to be gaining a leader with Ron’s experience, talent and vision. I look forward to collaborating with Ron on the Balzac’s brand as we work towards building on the solid foundation and momentum achieved over the past 25 years.”
PHOTO: BALZAC’S
Cecillon, who has a long history at Kelsey’s, Harvey’s, and Swiss Chalet, was recruited into the role of CEO at Nando’s Flame Grilled Chicken in 2011, where he made a significant impact on the transformation of the brand and its business model. Tasked with evolving and transforming the Canadian business, he focused on culture, people and the repositioning of the brand; opening 25 locations, renovating the real estate, and more than tripling the annual sales volume.
“The Balzac’s story is certainly one to be proud of when it comes to Canadian hospitality,” said Cecillon. “With its strong brand credibility, leading reputation, dedicated customer base, and robust long-term success strategy this is a unique and exciting opportunity. I am thrilled to have the opportunity to join Diana Olsen and the team to lead the Balzac’s brand into its next stage of strategic growth and development.”
“I do prefer founder-led, company owned and operated businesses and it’s a great product. It’s an exceptional product. Exceptionally designed spaces and we have an exceptional team as well. The ability to grow and partner with a founder was what drove me to take on this opportunity.”
LIBERTY VILLAGE BALZAC’S. PHOTO: BALZAC’S
Balzac’s currently has 14 locations with four under development. The locations are all in the southern Ontario and Greater Toronto Area. The company started as a coffee cart operation in its early days in 1993 with the first cafe opening in 1996 in Stratford, Ontario.
“We don’t endeavour to be the next Starbucks or the next Tim Hortons. That’s not what we want. We are a boutique coffee company that wants to scale but still feel boutique. If we looked at nationally, I can’t really see us doing more than 100 or 150 because we’re looking for smaller, unique spaces where we’re part of the community versus scaling it across the country,” said Cecillon.
“We’re looking nationally from our wholesale business which is in the grocery stores. And we are looking for opportunities in Western Canada as well.”
Cecillon said the company’s coffees are created a little bit different than the mega coffee giants. Balzac’s roasts in small batches. The company is a Canadian owned and founder led business and it really tries to establish its cafés in smaller communities and communities that are quite active.
PHOTO: BALZAC’S
“So you look at even in Toronto you won’t find us in strip malls. You’ll find us in very interesting communities – the Distillery District, Market Street around the St. Lawrence Market, Liberty Village, Stratford, Niagara on the Lake, Kingston. We really look for unique spaces that represent where the community congregates and where they gather to sort of get away from things for awhile and just enjoy a great cup of coffee,” said Cecillon.
“Our specialty coffees are really created a little bit differently than some of the more main street coffee shops. We use real ingredients such as vanilla or maple syrup, pumpkin puree. It allows us to really get the distinct flavours out with not a lot of added sugar. And organic milk. The whole host of non-milk alternatives is something that we pride ourselves in as well.”
Olsen will be assuming the role of Chief Design Officer moving forward focusing on driving Balzac’s design into a new era.
Recently, it was announced that Balzac’s is partnering with Porter Airlines as their in-flight coffee provider.
PHOTO OF RON CECILLON. PHOTO: BALZAC’S
“That’s a big opportunity for us to allow more Canadians across the country to experience the magic of Balzac’s coffee,” added Cecillon.
Balzac’s name is inspired by Honoré de Balzac’s famous quote, “the Café is the People’s Parliament.”
“He was known as sort of the first man of coffee, drinking upwards of 50 cups of coffee a night because when he wrote he typically wrote from 10 p.m. through to eight o’clock in the morning. He wrote overnight. That’s where his creativity came. That’s where his mind was at its best. In order to stay alert, he drank significant amounts of coffee,” said Cecillon. “Diana spent a fair bit of time in the cafes of France and fell in love with the French culture of coffee and the way it celebrated congregating and gathering. Hence the name is after Honoré de Balzac.”
The North American Development Group has ambitious plans to build a massive project on the site of the current Agincourt Mall in Toronto – providing a unique city-building opportunity, creating a vibrant mixed-use community which builds on the retail history of the site while leveraging connections to existing and future transit, parks, and open spaces.
The project will include 4,400 residential units with 270,000 square feet of retail space and about 110,00 square feet of office. There will be a total of 10 buildings on the site which overall will have seven development blocks. Each development block is a little bit different. Several of them on the east side of the site will have podium retail and above would be some low rise or mid rise residential.
Residential will be both condo and rental throughout the development site. There’s also some town homes planned for the site, which is located at the corner of Kennedy Road and Sheppard Avenue, in the former Scarborough community, in the northeast quadrant of the Greater Toronto Area.
AGINCOURT MALL MAP
Steve Bishop, Vice-President of Development Services for the company, said the 26-acre site is occupied currently by a 300,000-square-foot, 1960s enclosed shopping centre anchored by a No-Frills food store and a Walmart. There is also a freestanding building which has The Beer Store, LCBO, and Pet Value.
“We’re immediately adjacent to the Agincourt Library which is one of the busiest branches in Toronto,” said Bishop.
He said all the buildings on the development site – not including the library – will be demolished through a phased construction process.
“We’ve been working closely with Walmart to maintain them on the site. So they would be part of our phase one program. The intent here is that we would try to keep a portion of their store open while we construct phase one – demolish a portion of their space and construct a new building with residential above them,” said Bishop.
The project has been going through all the municipal approvals with construction expected to start in 2021. Full build out would take a couple of years.
The site was acquired in January 2015 and it is dominated by automobiles with more than 70 per cent of it being surface parking. There are multiple vehicular access points to the site.
AGINCOURT MALL DEVELOPMENTS. Photo: NORTH AMERICAN DEVELOPMENT GROUP
The goal is to develop a community for retail, culture, leisure and multi-generational living while also creating a public realm that supports a mix of programs with parks and squares.
The development also wants to create great streets for everyone – pedestrians, cyclists and vehicles – which connect to the larger surrounding community and future LRT.
The location is a home run with its accessibility and being part of the transit framework. The Agincourt GO Station and the planned SmartTrack are within a five-minute walk. Seven bus lines are in the immediate area. The Highway 401 on-ramp is located less than one kilometre from Kennedy Road and Sheppard Avenue. The developer says Toronto has major plans for new higher-order transit along Sheppard Avenue.
The project will become an ideal place for residents to live, work and play with plenty of amenities as well as park space.
“We spent a lot of time focused on the public realm. When we looked at the site, we looked at it holistically with the entire neighbourhood and not in isolation. So we’ve got some great connectivity between Ron Watson Park and our proposed park and through our pedestrian connections you can get pretty much anywhere in the neighbourhood through a series of streets,” said Bishop.
“There was a lot of focus on that through our process,” said Bishop. “We’re quite happy with the way it all turned out.”
To win sales — let alone loyalty — retailers, brands, and online marketplaces must understand and navigate an increasingly complex ecosystem of consumer expectations, preferences, and channels that are anything but static, explains the report.
Key Canadian highlights from the report include:
● Retailers, brands, and online marketplaces are battling for wallet share. 81 per cent of consumers buy from a combination of retailers, brands and online marketplaces. 40 per cent of repeat purchases are made at physical stores;
● Shopping is evolving as consumers define new terms of engagement. 49 per cent of consumers shop with a specific brand in mind. The number one trait of a shoppers’ favourite brand is offering exclusive shopping experiences/promotions;
● Shopper journeys are moving to the edge. 17 per cent of shoppers buy products with a mobile wallet. On average, consumers have two shopping apps on their mobile devices; and
● Stores remain critical for discovery, experience and fulfillment. 52 per cent of shoppers have purchased a product online for in-store pickup. The number one reason consumers shop in-store is to get merchandise immediately, followed by the ability to touch and feel merchandise.
The report also found that 47 per cent of shoppers plan to buy more from online marketplaces this holiday season and the number one factor influencing holiday purchases this season is what’s available in physical stores.
“We’re finding that consumers are engaging with brands well beyond their physical and virtual four walls. What that means for retailers is that’s just not about getting the operations and experience right on their own destinations but really pushing their brands to where consumers are,” said Rob Garf, Vice President of Strategy and Insights for retail and consumer goods at Salesforce.
“The second interesting point I want to highlight is that the stores are seeing a revitalization. We’re seeing consumers really valuing the stores not in isolation but as part of the overall omnichannel shopping process. While products are important, experience really has elevated as one of the most important reasons why a consumer shops with a particular brand and as part of that experience sustainability and trust has become very important particularly with the younger generations.”
PHOTO: LUSH
Garf said that retail from the beginning has been about pulling the consumer to their brand, their destination, their property. That of course was primarily physical for many years but increasingly digital has entered into the picture.
“Now it’s as much the need for retailers to push the brand to wherever the consumers are and that’s increasingly happening off property. It’s happening on third-party platforms like social media, like messaging platforms, like voice assistance, gaming consoles, even video,” he said. “What we found in the Canadian market specifically nine per cent of consumers are making purchases on social media and four per cent are making purchases on messaging apps as well. This is slightly lower than the global average which to me isn’t a huge surprise. We have found that Canadian shoppers are typically fast followers to what’s happening in other parts of the world in adoption of technology for shopping.”
PHOTO: ROOTS
There is a lot of talk these days of a retail apocalypse but Garf said it’s really more of a retail renaissance and that’s illustrated by what’s happening in the store itself. For many years, the store was simply a place to purchase a product. The point of sale was focused on speed and efficiency.
“What we found based on our research is that consumers are really looking for three fundamental things from the store,” said Garf. “First they’re looking for it to be discovery hub. The second an experiential hub and third being a fulfillment hub.
PHOTO: L’OCCITANE
“It’s critical too that in Canada 84 per cent of consumers make their first purchase in a physical store and when we think about the repeat purchase – the second, third, fourth, the ongoing purchases – 40 per cent still make those purchases in the physical store. Only 25 per cent of the repeat purchases globally is made in the physical store. So Canadian consumers are really doubling down on the importance of that physical, tactile experience within the store.”
Garf said 52 per cent of shoppers purchased a product online and picked it up in the store.
So why do consumers in Canada go into the store?
“The top three things are to get merchandise immediately. It speaks to the importance inventory availability and really streamlining the purchase and pickup activity. Being able to touch and feel the merchandise is really important particularly on fashion products and technical products that you can’t just get by reading the website. And lastly is to engage in the overall in-store experience and that can take a lot of different flavours whether that’s just talking to a knowledgeable store associate, it could mean in some cases . . . going to a store for a special event . . .”
PHOTO: SONOS EXPERIENTIAL STORE
Garf said experience for the consumer is a feeling that the retailer knows who the consumer is and provides either a relevant, personalized, convenient or automated shopping experience based on the knowledge of that consumer.
“Over 50 per cent of consumers feel like the retailers don’t know actually who they are. So it’s turning that on its head utilizing all the information that a consumer is leaving with every type, every swipe, every tap and turning that back over to the consumer and translating that into whether it’s a personalized, relevant, convenient or automated shopping experience,” he said.
On a global level, the Salesforce report found that 83 per cent of consumers say the experience is as important as the product.
Upscale Swiss Chocolate Brand Läderach Kicks Off Canadian Expansion with First Storefront: Swiss chocolate brand Läderach has opened its first standalone flagship in North America at the CF Toronto Eaton Centre in Toronto. The 1,590 square-foot store is located on ‘Level 2’ of North America’s busiest shopping centre. Mary Mowbray of Colliers represented Läderach in a lease deal with landlord Cadillac Fairview, and is helping spearhead Läderach’s Canadian store expansion that will continue into 2020 and beyond.
Läderach only sells its products through its own direct-to-consumer stores — the company avoids wholesaling as it aims to control the entire consumer experience. That includes attractive stores with upscale interiors that are staffed by chocolate experts. Läderach says that it only uses the best ingredients and has strong relationships with its suppliers — that includes milk from Swiss cows, almonds from California, Piedmont hazelnuts from Italy, and honey from Swiss bees. More than 100 varieties of chocolates include 50+ different praline and truffle offerings, dozens of confectionery specialties, airy ‘Mini Mousses’, over 20 varieties of FrischSchoggi™ (fresh chocolate), and a large selection of seasonal creations. Prices are higher than competitors such as Purdy’s, with some boxes of chocolates costing in excess of $100 for 36 pieces.
The opening of the Toronto store was certainly unique — a parade of traditional cow herders with Swiss cow bells marched through the centre to the tune of Alphorn players. A welcoming ceremony with the Läderach family was a highlight — family members flew in from Switzerland just for the occasion. A symbolic chocolate key was presented to Toronto’s First Deputy Mayor Denzil Minnan-Wong.
The Läderach brand was founded in 1962 and the family’s third generation is now running the business. That includes a network of more than 80 stores and more than 1,000 employees globally. Toronto was chosen for the brand’s first North American store because of the city’s diversity that includes a sophisticated taste in chocolates. Läderach is planning to expand further into Canada with more stores, including in Toronto, with more details to be announced at a later date. The expansion will be careful so as to maintain the exclusivity of the brand, which includes award-winning flavours known to be some of the highest-quality chocolate in the world. A standalone recently opened on Lexington Avenue in New York City, kicking off the brand’s US expansion.
Ted Baker Opens Largest Store in Canada Featuring a Garden Theme in Toronto: British lifestyle brand Ted Baker has relocated its Yorkdale Shopping Centre flagship up the hall to a new 4,322 square-foot space in the mall’s 2012 expansion wing. It replaces a 3,227 square-foot location nearby that was Canada’s first Ted Baker store when it opened in October of 2012. Real estate company JLL represents Ted Baker as brokerage in Canada and Dianne Lemm, negotiated the Yorkdale lease deal on behalf of the retailer. Oxford Properties is Yorkdale’s landlord.
Ted Baker’s Yorkdale flagship’s design is said to be “inspired by both the iconic modernist buildings in London’s Barbican Centre and Toronto’s own illustrious local architecture and surroundings.” The Barbican Centre is known for its gardens conservatory, and the new Toronto Ted Baker features an expansive assortment of green foliage. That contrasts with the use of raw industrial materials which Ted Baker says one might associate with Toronto’s modern architecture. The store features collections for men and women, including Baker’s Holiday collections. Ted Baker fashions are known to be eye catching with unique styles and colours.
Nearby retailers include Apple and Microsoft, as well as new luxury brand flagships for Bottega Veneta, Valentino and Balenciaga. Holt Renfrew, which has seen substantial renovations, also recently unveiled large concessions for Gucci, Fendi, and Dior, with new mall-facing Brunello Cucinelli and Christian Louboutin boutiques under construction.
Ted Baker currently operates nine standalone stores in Canada in markets including Vancouver, Calgary, Toronto, suburban Montreal, and Ottawa. Two of them are outlet stores. Ted Baker also operates shop-in-store leased concessions at Hudson’s Bay stores in downtown Vancouver and Toronto. The Ted Baker brand, which is headquartered in London UK, was founded in Glasgow, Scotland, in 1987. Originally a men’s brand, Ted Baker’s women’s line launched in 1995. The brand operates nearly 500 stores globally and has expanded extensively in the United States over the past several years, both with standalone units as well as shop-in-store concessions in many Bloomingdale’s stores. Ted Baker’s largest standalone storefront in North America is on 5th Avenue in New York City, and spans about 7,000 square feet.
Thank you Norman Katz for providing Retail Insider with photos of the new Ted Baker Yorkdale store. Interior photos can be seen in the slideshow above.
ONTARIO SCIENCE CENTRE
Ontario Science Centre Launching Pop-Up Market with Opportunities for Brands: The popular Ontario Science Centre in Toronto is hosting a ‘Winter Pop-Up Market’ from December 27th through to January 4, 2020. Applications are now open for the Ontario Science Centre Winter Pop-Up Market. Brands interested in taking part can apply HERE.
Thousands of visitors are expected to come into the Ontario Science Centre over the winter holidays, particularly as schools will be on a break. Toronto-based pop-up retail activator pop-up go is facilitating the activation — the company has hosted a variety of pop-up markets over the past several years. Founder/Chief Connector Linda Farha said that demand for pop-up space is greater than ever before as brands seek to engage with consumers via temporary activations.
“This announcement isn’t just great for visitors, but also for prospective pop-up brands. A pop-up at the Ontario Science Centre is a completely unique opportunity—providing guaranteed visibility for brands to knowingly position themselves in front of a very specific target audience,” said Ms. Farha. “The market will have a truly seasonal feel and doing something like this is a great way to transition into the New Year for the Centre, its visitors and the pop-up brands!”
Last year, pop-up go facilitated the one-hour long Skittles’ “Last Minute Gift Shop” on Queen Street West. The pop-up was open for several hours and saw lineups of people looking to buy Skittles-themed gifts.
Maison Birks Unveils Canada’s Largest ‘Hard Luxury’ Website: Montreal-based jeweller Maison Birks has officially unveiled what it says is the most comprehensive online luxury store in Canada. The website features an expansive assortment of luxury brands found in Birks’ Canadian stores, including some exclusive brands only found at Birks.
Jean-Christophe Bédos, President and CEO of Birks Group Inc., said in an interview that the Maisonbirks.com website now features exclusive-in-Canada brands Chaumet and Messika, as well as hard-to-find brands including Dinh Van, Marco Bicego, Roberto Coin, and Yoko London. Remarkably, Birks is also the only official ecommerce partner of French luxury brand Cartier in Canada. Watch brands on the site include Baume & Mercier, Cartier, Breitling, Frédérique Constant, Longines, Montblanc, Tag Heuer, and Wolf 1834.
More than 2,400 pieces are available on the expanded website with prices starting at $100 and at the top-end, exceeding $58,000. An additional catalogue features more than 500 items from brands such as Van Cleef & Arpels, Vhernier, and Rolex — products can be seen online and purchased via appointment in one of Birks’ 29 stores Canada-wide.
“We also plan to continue adding new jewellery and timepiece collections in 2020,” said Mr. Bédos. The website is a way to further interact with Birks’ clientele in Canada, providing opportunities to purchase as well as do research before visiting one of Birks’ stores. The online presence also provides a level of credibility for Birks, which is considered to be the leading multi-brand luxury jewellery retailer in Canada. The website also engages with consumers in parts of the country where Birks once had stores but has since shuttered them — that includes markets such as the Maritimes, Hamilton (Ontario), and Regina (Saskatchewan), for example. And while Birks operates high-selling standalone flagship stores in Toronto, Montreal and Vancouver, the Maison Birks website is the “top selling store in the chain” according to Mr. Bédos.
Birks has been adding new brands to its roster, including recently opened Graff and Patek Philippe boutiques in downtown Vancouver. Mr. Bédos explained that Birks is looking to add new brands — names such as Harry Winston are currently not available in Canada, and that could change as Birks seeks to be the dominant player in multi-brand jewellery and timepieces. Birks has also unveiled new concept stores including CF Fairview Mall in Toronto as well as at First Canadian Place.
We asked Mr. Bédos about the phenomenon of brands going direct-to-consumer by opening standalone stores — luxury conglomerates Richemont and Kering have been expanding operations in Canada. He explained that the clustering of luxury brands found in Birks stores create an attraction for shoppers much like various beauty brands in a Sephora store, and in some instances some luxury jewellery brands aren’t yet ready to open standalone storefronts in the Canadian market.
Remarkably, the Vancouver Hublot licensee was not aware that Hublot was opening a Toronto location — it appears that Hublot did a deal directly with Yorkdale’s landlord Oxford Properties. It’s not yet known if Hublot will open any more freestanding stores in Canada, though it’s possible. Toronto’s Bloor-Yorkville area is a notable luxury node and as luxury retail continues to expand in Canada, new luxury nodes may also become a target for Hublot. That includes Vancouver’s Oakridge Centre which will include a dedicated luxury wing, as well as the massive Royalmount development in Montreal that will also include a luxury retail component that could be anchored by an upscale international department store, according to sources.
Hublot was founded in Switzerland in 1980 by Italian Carlo Crocco — a scion of the Italian Binda Group dynasty, best known for making Breil watches. Hublot is named after the French word for “porthole”, and the first watch that he created featured the first natural rubber strap in the history of watchmaking — a feat that took three years of research to create. In 1998, Hublot was acquired by French luxury conglomerate LVMH (Louis Vuitton Moet Hennessy), and it continues to operate as a subsidiary. The company has more than 70 stores globally including several in the United States.
Zwilling J.A. Henckels Opens 1st Canadian Flagship Store: Kitchen and cookware brand Zwilling J.A. Henckels has opened its first flagship store in Canada at the CF Markville shopping centre in Markham, north of Toronto. The 2,500 square foot store is in an upscale section of the mall next to a Michael Kors store and across from Coach.
The tech-heavy Zwilling flagship features “an experiential digital wall making the consumer’s shopping experience more interactive and informative” where visitors can purchase from the brand’s catalogue of products. The retailer opened its first outlet store in Vancouver at the McArthurGlen Designer Outlet in 2015 and now operates 10 stores across the country.
Zwilling is another example of a brand going direct-to-consumer by opening stores. Prior to opening its standalone units, the brand was only available in multi-brand retailers in Canada. Zwilling continues to be distributed wholesale across the country, though its new corporate stores are part of an effort by the company to own a larger market share by connecting with its customers directly.
Sustainable Organic Children’s Brand to Launch in Canada Early Next Year: New York City-based children’s lifestyle brand ‘art & eden’ will launch in Canada next spring. Founder Susan Correa says that it was created in a sustainable business model that “has embraced triple top line accountability.”
The art & eden product lines include fashions for boys and girls up to 10 years, as well as infants as young as three months. The brand has won several awards including being awarded ‘Best New Kids Brand’ as well as ‘Most Sustainable and Socially Responsible Brand”. Earlier this year, art & eden collaborated with Discovery as part of an effort to spread awareness of endangered and vulnerable animals. Product can be viewed on the retailer’s US website.
The company was founded in 2017 and is registered as a Public Benefit Corporation. Its approach “focuses on ensuring prosperity, while celebrating community and nature, so the results are far more positive, as they can be economically, ecologically and equitably enjoyed.” The brand utilizes a “give back platform” with the mantra of “buy better, do better”.
The company’s managing director Charlotte Taylor Wright is responsible for establishing the art & eden brand in Canada. That will include launching the ‘earth by art & eden’ collection at Babies R Us stores in Canada.
The launch of the brand in Canada comes at a time of intense competition — other homegrown brands have launched children’s apparel lines while international players continue to expand in Canada. The particular angle that art & eden is taking involves storytelling which is a smart move, as it will help create brand awareness for consumers while also providing a sense of ‘meaning’ which will give it a leg-up on fast-fashion competitors — it’s a trend being seen in adult fashions as well, including US-based women’s retailer Reformation which opened its first Canadian storefront at Toronto’s Yorkdale Shopping Centre over the summer.
Unique Holiday Market Opens at Square One: For the second year, the Square One shopping centre in Mississauga is hosting the ‘Merry & Bright Holiday Market’ featuring a ‘Candyland’ theme. Square One partnered with Sheridan Visual Merchandising Arts to decorate the space. Annie Sloan sponsored the paint, IKEA furnished the workshop space, and Skittles is supplying sweet treats for guests.
The market is located next to Uniqlo on the second level of Square One — it joins ‘The Food District’ food hall and Cineplex’s ‘The Rec Room’ which both opened in a repurposed Target box last spring. The market itself features locally-crafted gifts, do-it-yourself workshops, and various candy stations that are extremely eye-catching. The space is geared towards social media — a search on Instagram indicates the market, which opened at the end of November, is a hit. Merry & Bright Holiday Market remains open until December 24.
Square One’s efforts to be experiential will make the centre relevant for years to come — it’s at the heart of downtown Mississauga and is one of the busiest shopping centres in Canada in terms of annual footfall. Landlord Oxford Properties will also soon announce a unique entertainment concept that will also be educational.
Which Big-Box Retailers Are the Best in the Minds of Canadian Consumers? Software company SEMrush provided Retail Insider with data on Canadians’ sentiment around experiences with big-box retailers based on social media feedback and comments, with a focus on customer service.
The most positive responses included the following:
Shoppers Drug Mart (37%)
Walmart (27%)
Metro (25%)
TJX (Winners/Marshalls/HomeSense) (22%)
The same research ranked the ‘most negative’ perception associated with big-box retailers in Canada. Those include:
Lowe’s (40%)
Walmart (39%)
Home Depot (38%)
Interestingly, two home improvement retailers, Lowe’s and Home Depot, were not seen favourably amongst respondents according to the SEMrush data. Lowe’s recently announced more store closures in Canada amid struggles — a source in the company tells us that the company is laying off assistant managers and district managers before the holidays, and we’ve been receiving various angry emails about the company which may have an uncertain future in Canada.
SEMrush’s social media data also notes that Shoppers Drug Mart’s perception is balanced evenly between the average amount of positive and negative feedback on Twitter. Best Buy and TJX are a close second with only 4% more negative tweets than positive. Grocer Metro’s customer service has a 5 % difference, while Walmart and Homesense have 12% more negative than positive tweets. The worst offender is Lowe’s, with 21% more negative than positive tweets overall — Lowe’s is going to need to find a way to overcome these challenges both in the minds of consumers as well as employees as we head into 2020.
Toronto-based Nügateau Patisserie, a niche bakery chain specializing in éclairs, has opened its third GTA location, and is now exploring expansion opportunities outside of the Toronto area.
Nügateau, which launched in 2015 with a shop on Queen Street West, recently opened its third permanent location at Square One Shopping Centre in Mississauga.
While the concept of an éclair is typically associated with the traditional chocolate-topped, cream-stuffed variety, Nügateau offers an assortment of between 15 and 18 different types in its stores, with flavours rotating on a monthly and seasonal basis.
“We were looking at starting something unique and different,” says Atul Palghadmal, co-founder and head pastry chef at Nügateau. He says that although classic éclairs are available at many bakeries, he has never come across another pastry shop specializing exclusively in éclairs or offering different flavours. He and co-founder Abm Kadir saw an opportunity to provide a product that wasn’t being offered elsewhere.
After having success with its initial Queen Street location, Nügateau opened a second location in downtown Toronto’s Saks Food Hall by Pusateri’s on Queen Street. The company experimented with pop-up shops at Square One prior to opening the newest location, and found that the products resonated strongly with customers, according to Kadir.
“Before we do any expansion, we try to test the market,” he says. “It has been really successful [at Square One].”
Although many of Nügateau’s early customers were first-time visitors who were intrigued by the novelty of the concept, over time, the brand has developed a loyal following of regular customers, with many returning every week.
Éclair dough is very difficult to make, Palghadmal says, requiring very specific levels of moisture and humidity. He suspects that’s why éclairs are less common than other types of pastries. Having trained at Le Cordon Bleu in Ottawa, Palghadmal gained plenty of experience making éclairs, and became intrigued by the opportunities to experiment with flavours.
“You can create so many flavours and mix and match and do so many creative things with it,” he says. “Once you have the base right, there are no limitations to what you can do with it.”
Nügateau’s most popular flavour, called ‘Romeo’, features hazelnut praline ganache. Other flavours include ‘Cookies N’ Milk’, ‘Mango Passion’, ‘Vanilla Pecan’, and ‘S’mores’, among many others. The company also offers a limited selection of savoury options, such as smoked salmon and ‘Croque Éclair’.
Nügateau rotates its selection of éclairs seasonally, offering a greater selection of light and fruity options during the spring and summer months, and richer, more robust flavours during the fall and winter months. The chain also offers special features for occasions such as Christmas, Valentine’s Day, and Easter.
The growth that Nügateau has experienced in the past couple of years has surpassed the founders’ expectations, Kadir says. He suspects that the part of the reason for the company’s success and popularity is the high quality of the products and the ingredients.
“Nowadays, people are more aware of what goes into their food,” he says. “Our products have the highest qualify ingredients. That’s one thing we do not compromise on.”
Now that its third location is up and running, Nügateau’s founders are focused on keeping customers happy and ensuring all of the existing locations are operating smoothly before embarking on further expansion. However, Kadir says more growth is on the horizon for Nügateau.
“We definitely are looking to expand outside of the GTA and hopefully outside of Canada as well,” he says. “With the right timing, the right resources, we are definitely keeping our eyes open for future expansion.”
The recently launched Samsung POS (Point of Sale) allows Canadian small businesses and entrepreneurs to accept debit, credit, and digital wallet payments via their Samsung Galaxy NFC-enabled smartphone – without the use of additional toggles or hardware.
Samsung POS is an app-driven payment acceptance solution, available exclusively in Canada. It accepts payments up to $100 by tapping contactless cards, Samsung Pay, Apple Pay, and Google Pay wallets.
The Point of Sale solution was engineered specifically for micro-merchants and small businesses looking to grow their revenue by accepting card payments. From yoga instructors to food truck owners, vendors at farmers markets to retailers, a seamless technology solution that improves vital processes like payment and check-out are critical tools for entrepreneurs growing their business.
“A big part of being a personal trainer is that I’m always on-the-go, meeting clients all around the city. This is why Samsung POS is such a help when it comes to running my business. With this payment acceptance system, I just need to grab my phone and go; I know I can accept major cards and digital wallets with a quick tap – no extra hardware required. It gives me the flexibility to get-up-and-go and focus on giving my clients a great workout,” said Jose Lopez, a personal trainer and small business owner in Toronto.
Small business owners have to wear many hats when it comes to the operation of their companies, so it becomes extremely important to them to have the tools and technology available to allow them to conduct business as efficiently as possible.
In today’s quick consumer culture, customers are looking for seamless and effortless tap transactions, and small businesses need to be able to facilitate that. With Samsung POS, vendors can receive payment on the spot, without requiring additional hardware. It’s an accessible, highly secure, low-cost and easy-to-use mobile payment acceptance solution.
Beyond transactional capabilities, Samsung POS also allows merchants to send customer receipts via email, access real-time sales data, provide sales history, and create multiple staff accounts.
“Samsung POS makes collecting payments easier. After leading a training session, I don’t want to have my clients spending time setting up an EMT or writing a cheque. I love that I can just pull out my phone, have my clients tap their card-of-choice, and the transaction is complete. It’s that seamless and quick. If I ever need to look up receipts or records, I can also scroll through my app for a transaction synopsis,” said Lopez.
Equally as important as seamless transactions is knowing that your – and your customers’ – data is secure.
The Samsung Knox platform is baked into the hardware and software of Samsung Galaxy devices. All data on Knox devices is securely encrypted by default, using a defence-grade security module. The Knox platform consists of overlapping defence and security mechanisms that protect against intrusion, malware, and other malicious threats during boot-up, run time — even when powered off.
“I’ve been a long-time Samsung brand partner and currently use the Galaxy Note10+. I love how integrated the mobile ecosystem is. Samsung is constantly introducing new innovations for today’s consumers and small business owners – Samsung POS is just the latest example of that,” noted Lopez.
Samsung POS does not include monthly or hidden fees. Instead, the only costs associated with the payment solution are low per-transaction rates.
The sales solution has been piloted in Canada for the past several months and has been downloaded over 10,000 times. Canadians can download the Samsung POS app from the Galaxy Store or Google Play Store and go through a simple sign-up process within the app to register as a merchant. Samsung POS is expected to expand to other markets starting in 2020.
VANCOUVER, Dec. 6, 2019 /CNW/ – A&W Revenue Royalties Income Fund (the Fund) (TSX symbol AW.UN) and A&W Food Services of Canada Inc. (A&W Food Services) announced today that, effective January 5, 2020, the number of A&W restaurants for which royalties are paid to A&W Trade Marks Limited Partnership (the Partnership) will be increased by 44 new restaurants that were opened across Canada between September 7, 2018 and September 5, 2019, less 7 restaurants that were permanently closed between November 5, 2018 and November 3, 2019. The addition of these 37 net new restaurants brings the total number of A&W restaurants in the Royalty Pool to 971. Since the inception of the Fund in 2002, the number of restaurants for which royalties are paid to the Fund (through the Partnership) has increased by 386 restaurants, from 585 to 971.
“We are very pleased to be adding 37 net new A&W restaurants to the Royalty Pool” said Susan Senecal, President and Chief Executive Officer of A&W Food Services. “A&W Food Services has opened over 125 new A&W restaurants across Canada in the last three years. We are delighted with this pace of growth, particular in Ontario and Quebec which are our most important growth markets.”
The estimated annualized sales of the 44 new A&W restaurants being added to the Royalty Pool on January 5, 2020 are $65,953,000 and annual sales for the 7 permanently closed restaurants were $4,078,000. The net estimated annualized sales of $61,875,000 from the 37 net new restaurants translate into estimated net additional annual royalty payments to the Fund of $1,856,000 on the basis of the royalty of 3% of sales. The consideration for the estimated net additional royalty revenue is $23,263,000, representing 80% of the consideration payable for such net additional royalty payments, calculated by discounting the estimated additional royalties by 7.5% and dividing the result by the yield on units of the Fund. The yield is based on the weighted average trading price of the units of the Fund for the 20 trading days ending October 28, 2019, or $38.02. The yield has been adjusted to reflect income tax payable by A&W Trade Marks Inc. (Trade Marks). This consideration will be paid on January 5, 2020 by issuance of 611,858 limited partnership units of the Partnership (LP units), which will immediately be exchanged for 1,223,716 non-voting common shares of Trade Marks. These additional shares of Trade Marks are exchangeable at the option of A&W Food Services for 611,858 limited voting units of the Fund, subject to the approval of the TSX.
An amount representing 20% of the consideration payable for the net additional royalty revenue, will be paid by issuance of additional LP units in December 2020. The actual amount of the consideration to be paid, and the number of LP units to be issued, in December 2020 will be determined based upon on the actual annual sales reported by the 44 new restaurants.
The Fund and A&W Food Services also announced today that the actual sales of the new restaurants added to the Royalty Pool on January 5, 2019 have now been determined. The actual annual sales for the 46 new restaurants added on January 5, 2019 were $72,093,000 compared to the original estimate of $62,283,000. As a result, the remaining 20% of the initial consideration or $5,461,000 has now been paid to A&W Food Services by issuance of 156,878 LP units at a price of $34.81 per unit. Additional consideration of $4,608,867 has also been paid to A&W Food Services in the form of 132,401 LP units also at a price of $34.81 per unit, as the actual sales exceeded the original estimate. The 156,878 LP units and additional 132,401 LP units have been exchanged for an aggregate of 578,558 non-voting common shares of Trade Marks. These additional non-voting common shares of Trade Marks are exchangeable at the option of A&W Food Services for 289,279 limited voting units of the Fund, subject to the approval of the TSX.
As a result of the increase in the royalties paid to the Partnership by A&W Food Services, Trade Marks also declared and paid a special dividend of $490,000 to A&W Food Services. This amount represents the amount of the distributions of the Fund that would have been indirectly received by A&W Food Services had the 578,558 non-voting common shares of Trade Marks been issued to A&W Food Services on January 5, 2019.
After the amendment to the Royalty Pool on Janauary 5, 2020, which will result in additional shares of Trade Marks being issued to A&W Food Services, A&W Food Services will receive a proportionate increase in monthly dividends from Trade Marks, and will own the equivalent of 23.6% of the voting securities of the Fund on a fully-diluted basis.
The growth of the Royalty Pool reflects the continuing strength and success of the A&W brand. The Fund’s current annualized distribution rate is $1.908 per unit.
About the Fund The Fund is a limited purpose trust established to invest in Trade Marks, which through its interest in the Partnership, owns the A&W trade-marks used in the A&W quick service restaurant business in Canada. The A&W trade-marks comprise some of the best-known brand names in the Canadian foodservice industry. In return for licensing, A&W Food Services to use its trade-marks, Trade Marks (through the Partnership) receives royalties equal to 3% of the sales of A&W restaurants in the Royalty Pool. The Royalty Pool is adjusted annually to add new restaurants, less any A&W restaurants that have permanently closed. The Partnership pays A&W Food Services for the additional net new restaurants in the form of an increase in the limited partnership interest of A&W Food Services, based upon a formula set out in the licence agreement. A&W Food Services’ additional limited partnership interest may be exchanged for additional shares of Trade Marks which are exchangeable for limited voting units of the Fund. These annual adjustments to the Royalty Pool are required under the licence agreement and are exempt from the prospectus and registration requirements pursuant to NI 45-106.
A&W is the second largest quick-service hamburger restaurant chain in Canada. Operating coast-to-coast, A&W restaurants feature famous trade-marked menu items such as The Burger Family®, Chubby Chicken® and A&W Root Beer®.
This release may contain certain forward-looking statements related to: the Fund’s current expectations in the quick service segment of the restaurant food industry in Canada; the amount and timing of the payment for the remaining consideration payable to A&W Food Services for the net new royalty revenue from the 37 net new A&W restaurants added to the Royalty Pool; the potential future exchange by A&W Food Services of the non-voting common shares of Trade Marks it holds for limited voting units of the Fund and the percentage of the Fund’s voting securities A&W Food Services would hold upon the completion of such exchange; and the proportionate increase A&W Food Services will receive in monthly dividends from Trade Marks. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, changes in market, competitive developments, and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the Fund’s financial results are detailed in documents filed from time to time with the provincial securities commissions in Canada.
SOURCE A&W Revenue Royalties Income Fund
For further information: Don Leslie, Chief Financial Officer, 300 – 171 West Esplanade, North Vancouver, B.C. V7M 3K9, 604-988-2141, Email: investorrelations@aw.ca, www.awincomefund.ca
TORONTO, Dec. 7, 2019 /CNW/ – The Catalyst Capital Group Inc., on behalf of investment funds managed by it, (“Catalyst“) today announced that Institutional Shareholder Services (“ISS“), a leading independent proxy advisory service, has recommended that Hudson’s Bay Company (TSX: HBC) (“HBC” or the “Company“) shareholders vote “AGAINST” the Company-sponsored share buyback (the “Insider Issuer Bid“) outlined in the October 20, 2019 arrangement agreement (the “Baker Group Agreement“) between insiders led by Mr. Richard Baker (the “Baker Group“) and the Company.
Gabriel de Alba, Managing Director and Partner of Catalyst, said, “ISS has clearly called out the HBC Board and the insider group, led by Executive Chairman Richard Baker, for their egregious pattern of conflicts, misrepresentations and self-serving games. From the purposely manufactured Baker control group to lack of disclosures and waivers of shareholder protections through to the sales process and acceptance by the special committee of a low-ball offer, funded with minority shareholders’ own money, this process was designed to transfer value from minority shareholders to Richard Baker and his selected insiders. Given the lack of transparency and ever shifting excuses by the Baker Group, we are concerned about existing questions that remain unanswered and what additional actions and agreements remain undisclosed.”
Added Mr. de Alba, “Catalyst has been working to protect the interests of the minority shareholders, including offering all shareholders a superior proposal to the Baker Group. We will continue to push the HBC independent directors to finally step up and do their duty to protect shareholders, run a true value maximization process and restrict the coercive and questionable efforts of Richard Baker.”
In its December 6, 2019, report, ISS recognized the significant flaws with respect to the sale process, questioned the value of the Special Committee’s contribution and lack of optionality the Special Committee created for the Company and concluded that there is no legitimate rationale for recommending the Insider Issuer Bid in light of a legitimate outstanding offer at a higher price.
In its report ISS made the following conclusion and recommendation1:
“Catalyst Capital Group Inc., holder of 17.5 percent of common shares, has publicly opposed the transaction and has made an offer to acquire the remaining outstanding shares for $11.00 in cash per share. The only defect identified by the board’s special committee with the competing bid has been the opposition to Catalyst’s offer from the continuing shareholders (who are likewise seeking to acquire the company, but at a lower price); the committee has not questioned the Catalyst proposal’s financing or ability to win regulatory approval.”
“Given that significant defects have been identified with the sale process, shareholders cannot be confident they are receiving maximal available value for their shares. Although the special committee appears to have restricted its own ability to determine that $11.00 is in fact superior to $10.30 by agreeing to a narrow definition of a “superior proposal” in the arrangement agreement, there is no legitimate rationale from a governance perspective for recommending that shareholders accept C$10.30 cash per share in light of what appears to be a legitimate outstanding offer to purchase the company at a higher price. As such shareholders are advised to vote AGAINST the acquisition by the continuing shareholders.”
Regarding the Special Committee, ISS said:
“It appears that the special committee handcuffed itself by recommending an agreement that defines a superior proposal as something that could never happen. If there is i) a controlling shareholder group that will not agree to sell its shares to any other party or allow the distribution of the proceeds from a sale of material assets, and ii) the special committee defines a superior proposal as one that is reasonably capable of being completed, and iii) agreement from the controlling shareholder is a necessary element of completing an alternative transaction, then shareholders must question whether the special committee has effectively tied its own hands.”
“However, HBC was not a controlled company prior to the board’s waiver of the Fabric standstill. In fact, Baker’s individual holdings account for 6.3 percent of HBC shares outstanding. By waiving the standstill and allowing Baker to form a group controlling 58 percent of the voting power, the board appears to have sacrificed negotiating leverage in exchange for a proposal, in its own words, was inadequate.”
Regarding Fabric Luxembourg (member of the Baker Group), ISS said:
“On Oct. 26, 2017, HBC shareholder Fabric Luxembourg entered a standstill agreement that limited its interest in HBC to no more than 45 percent of outstanding common shares. The standstill agreement was confirmed most recently on July 17, 2018. In engagement with ISS, the special committee indicated that Fabric Luxembourg sought HBC’s consent for its participation in the shareholder group. The board (with authorization from the special committee) waived the standstill at some point between March 26 (when the special committee was re-formed) and June 10 (when the C$9.45 proposal was made). Although the board has acknowledged to ISS that it granted the standstill waiver, investors who purchased shares prior to June 10, under the impression that Fabric Luxembourg was subject to a standstill, would likely have benefited from knowing when Fabric Luxembourg began considering a buyout and when the standstill was waived.“
Regarding the Baker Group and the Signa transaction, ISS said:
“The initial unsolicited proposal was revealed on June 10, shortly after HBC announced its agreement to sell its portion of the European operations and assets it shared with SIGNA. In light of i) the materiality of the SIGNA transaction onto HBC’s value, ii) the possible conflict of interest between Baker as executive chairman voting on an asset sale and Baker as unsolicited acquirer, and iii) the absence of a positive disclosure that members of the continuing shareholder consortium had no knowledge of the SIGNA transaction, it is reasonable that shareholders could question whether material nonpublic information was used to assemble the consortium of continuing shareholders. This concern must then necessarily lead to questions about the thoroughness of the sale process and whether the agreed transaction maximizes value for minority shareholders.”
Continued Mr. de Alba, “As we have said repeatedly, we are prepared to support this iconic company for the long term. Richard Baker’s threats of value destruction and operating erosion need to change to actions to unlock value for all shareholders. Until such time that the Board engages on our offer and runs a fair and open process to maximize value, and the Baker insiders are released from their voting agreement, Catalyst will continue to reject any coercive offer and urges other shareholders to vote against the arrangement resolution.”
Catalyst has filed a notice of application for a hearing with the Ontario Securities Commission seeking redress for inadequate and inaccurate disclosure, and coercive and unfair practices leading up to and following the HBC Board approval of the Insider Issuer Bid.
We urge shareholders to VOTE AGAINST the Insider Issuer Bid and all related proposals to be voted upon at the HBC shareholders’ meeting scheduled for December 17, 2019 (the “Meeting”). Your vote matters.
We thank shareholders for their strong support to date. The rejection of the Insider Issuer Bid is a key step for the maximization of shareholder value. Notwithstanding the threats of Mr. Richard Baker and the Company regarding declining share prices if we reject their proposal, we can act together to enhance shareholder value.
IF YOU HAVE ALREADY VOTED ON THE PROXY CARD SENT TO YOU BY HBC AND WANT TO CHANGE YOUR VOTE, YOU CAN STILL DO SO BY SIMPLY RECASTING YOUR VOTE AGAINST. ONLY YOUR LATEST DATED PROXY CARD WILL COUNT.
If you have any questions, or need help executing your vote, contact Laurel Hill Advisory Group at: 1-877-452-7184 or 1-416-304-0211 or email assistance@laurelhill.com. There is a team standing by to assist you.
Additional Information
Catalyst is relying on the exemption under section 9.2(4) of National Instrument 51‐102 ‐ Continuous Disclosure Obligations to make this public broadcast solicitation. The following information is provided in accordance with corporate and securities laws applicable to public broadcast solicitations.
This solicitation is being made by Catalyst, and not by or on behalf of the management of HBC. Laurel Hill Advisory Group will receive a fee of $50,000 for its services as Information Agent plus ancillary payments and disbursements. Based upon publicly available information, HBC’s registered office is at 401 Bay Street, Suite 500, Toronto, Ontario, Canada M5H 2Y4 and its head office is at 8925 Torbram Road, Brampton, Ontario, Canada L6T 4G1. Catalyst is soliciting proxies in reliance upon the public broadcast exemption to the solicitation requirements under applicable Canadian corporate and securities laws, conveyed by way of public broadcast, including press release, speech or publication, and by any other manner permitted under applicable Canadian laws. In addition, this solicitation may be made by mail, telephone, facsimile, email or other electronic means as well as by newspaper or other media advertising and in person. All costs incurred for the solicitation will be borne by Catalyst.
A registered shareholder who has given a proxy may revoke the proxy before it has been exercised by: (i) completing a proxy form that is dated later than the proxy form being revoked and mailing or faxing it to TSX Trust Company so that it is received before 10:00 a.m. (Toronto time) on December 13, 2019 or, if the Meeting is adjourned or postponed, 48 hours prior to the time of the Meeting (excluding Saturdays, Sundays and holidays); (ii) sending a revocation notice in writing to the Corporate Secretary of the Company at its registered office so that it is received at any time up to and including the last business day before the date of the Meeting (the notice can be from the shareholder or the authorized attorney of such shareholder); (iii) making a request in writing to the chair of the Meeting that its proxy be revoked; or (iv) any other manner permitted by law. A non‐registered shareholder may revoke a form of proxy or voting instruction form given to an intermediary at any time by written notice to the intermediary in accordance with the instructions given to the non-registered shareholder by its intermediary. Non-registered shareholders should contact their broker for assistance in ensuring that forms of proxies or voting instructions previously given to an intermediary are properly revoked. None of Catalyst and its directors and officers, or, to the knowledge of Catalyst, any associates or affiliates of the foregoing, has any material interest, direct or indirect, in any transaction since the commencement of HBC’s most recently completed financial year, or in any proposed transaction which has materially affected or will materially affect HBC or any of its subsidiaries, other than as set out herein. None of Catalyst or, to its knowledge, any of its associates or affiliates, has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at any upcoming shareholders’ meeting, other than as set out herein.
Shareholders with questions or who need assistance with their proxies can contact the Information Agent:
Laurel Hill Advisory Group North America Toll Free: 1-877-452-7184 Collect Calls outside North America: 1-416-304-0211 Email: assistance@laurelhill.com
1 Permission to quote from ISS’ report was neither sought nor obtained.
SOURCE The Catalyst Capital Group Inc.
For further information: MEDIA INQUIRIES: Dan Gagnier / Jeffrey Mathews, Gagnier Communications, Phone: 1-646-569-5897, Email : catalyst@gagnierfc.com
A new study conducted by market research firm Vivintel, the custom research arm of Vividata, has found that nearly 1.2 million Chinese consumers (aged 18 and over) in Canada account for $61 billion in self-reported consumer spending.
“With the growing number of Chinese living, working and studying in Canada, the need to understand this consumer segment is of significant importance to Canadian marketers, particularly with regards to luxury brands. We are excited to be launching this new ethnicity study which will help marketers understand what is driving consumption and enable them to better influence media buying decisions amongst this consumer group,” said Pat Pellegrini, President and CEO of Vividata, a consumer and media research company.
YORKDALE SHOPPING CENTRE IN TORONTO. PHOTO: OXFORD PROPERTIES
“Our numbers are affirmation for many of the trends and assumptions and beliefs that were held by agencies and media planners and buyers (in Vancouver) working with the Chinese. I believe we have captured the audience we were looking for, the consumer we were looking for, in a syndicated way so that everybody could benefit.”
One in three Chinese consumers in Canada agree with the statement, ‘I buy luxury brands to feel different from the rest of society’. This is even more so the case with Chinese international students, of which there are nearly 70,000 in Canada, who indicate an even greater affinity to luxury brands than the general Chinese population;
40 per cent of Chinese consumers in Canada report that they “prefer to drive a luxury vehicle”. This is most noticeably the case among those in Canada on a temporary work permit; 52 per cent of those on a temporary work permit prefer the same; and
There are roughly 490,000 Chinese consumers in Canada that are not Canadian citizens and were not born in Canada. 53 per cent of this consumer segment report that they pay more attention to advertising in their own ethnic language.
PHOTO: REDDIT
“We can see some differences between Vancouver and Toronto Chinese. Vancouver had more people coming from Hong Kong in the past than mainland China and now kind of switching back around. I think that’s less though in Toronto,” said Pellegrini.
“It’s a very powerful consumer group. They don’t react to the market. They shape the market. When you see the differences between the buying power that they have, their preference for luxury brand, the amount of spend that they do in the first few years of moving into Canada, it’s got a huge impact.”
745 THURLOW STREET IN VANCOUVER. PHOTO: LEE RIVETT
Vivintel surveyed just over 2,500 respondents (aged 18 and over) residing in Toronto and Vancouver who identified as being of Chinese origin.
“We often fall into a hole when talking about the Chinese Canadian consumer,” said Sonny Wong, President and Creative Director of Hamazaki Wong Marketing Group. “We tend to lump the Chinese government and Chinese consumers into the same pile, preventing us from making the rational marketing decisions we make for other consumer segments. A study of this depth and calibre will allow marketers to better understand the Chinese population in Canada and create more relevant marketing strategies and targeted campaigns.”
PHOTO: DIGITAL COMMERCE 360
“Historically, there has been a major gap within the industry for research that looks into the ethnic consumer market, specifically around media habits and buying patterns. Chinese consumers are an increasingly significant part of the Canadian population, making a syndicated study like this long overdue. Vividata’s study into Chinese consumers in Canada will provide us with the insights we’ve been missing to effectively target this group,” said Chris Herlihey, VP, Analytics and Insights, IPG Mediabrands.
THE CARLYLE LUXURY COMPLEX ON ALBERNI STREET IN VANCOUVER. PHOTO: LEE & ASSOCIATES
Whether the Chinese consumer becomes an even larger part of the Canadian retail market share in the future is up in the air due to a number of political and trade factors currently in play.
“The relationships now with China and Canada, and even the United States, there is a dynamic that may see immigrants and obviously spending power from mainland China perhaps slowing down and maybe a new small bump of repatriated citizens from Hong Kong,” said Pellegrini. “So they were from Hong Kong, became Canadian citizens, went back to Hong Kong and now with the turmoil in Hong Kong, deciding to maybe come back.” Pellegrini said the Chinese consumer has a strong preference for luxury brands.
For example, he described Vancouver as the “luxury car capital of North America.”
“Wherever there is a significant proportion of international students you are going to see an impact on sale of luxury brands – not just automobiles,” he said.
With downtown Barrie undergoing a major construction program, a unique holiday pop-up program has been launched in the nearby Georgian Mall called The Shops of Downtown Barrie.
“Downtown Barrie is going through a streetscape redevelopment. It’s happening in three phases and the first phase is pretty much done. It’s three big blocks downtown and they’re doing one block at a time. They did the first block from September to November. The next block will be the spring of next year so February to May and then the third and final block will go May to September,” said Denise Tucker, owner of Olive Oil, which is in its fifth year of business with four locations – the oldest one in the downtown, established in 2015.
“But it’s been hugely impactful to businesses because as you can imagine regardless of the fact that they’re doing one block at a time and the businesses are all open for business the whole time, and you can get in the front door, people hear that there’s construction in an area and absolutely avoid it.”
Tucker said that because of the disruption many businesses came together to promote events and each other during the construction phase but the impact on business remained noticeable.
Tucker said the use of the mall space will be hugely important for the businesses.
“There are two businesses who have already gone through their level of the construction. So they’re trying to recoup what they’ve lost . . . And there hasn’t been a resurgence back to the downtown despite the fact the construction ended. People are still not aware. People still avoid it,” said Tucker.
“The other three of us are trying to get ahead of what we think is going to be difficult in the spring of next year. It’s going to be hugely impactful for our businesses and impactful for raising awareness of what we have going on downtown – of the culture, of the spirit, of the collaboration, of the community that we’ve built down there. So this (pop-up program) really gives us the opportunity to talk to people who wouldn’t normally come downtown – who do go to the mall shopping. It gives us an opportunity to reach people we wouldn’t normally reach.
“My company did a pop-up at Georgian Mall back in 2016 for Christmas. People still come into our other three locations today and say ‘didn’t you have a store at Georgian Mall?’ So it’s really a great demonstration of how we can work together to help build all of our business.”
Each shop in Georgian Mall will feature a full retail environment and sell products that represent their proven brands at their downtown Barrie shops.
Tucker said the initiative is not about mall shopping versus downtown shopping; it’s about using the opportunity at the mall to promote the collaborative business spirit and all the great things that are happening in the downtown community.
"The new and improved Dunlop streetscape will put downtown Barrie on the map for a truly pedestrian-focused main street that everyone will want to experience, including a beautiful new flexible street with rolling curbs, wide sidewalks, new streetlights and so much more," said Craig Stevens, Managing Director of the Downtown Barrie BIA (Business Improvement Area).
The Shops of Downtown are in about a 3,800-square-foot location beside The Source on the Lower Level of Georgian Mall near Entrance #2 – The Fireplace.
“I am thrilled to be included in this unique opportunity to offer a peek into the special experience customers enjoy when they enter my downtown shop. As a member of a vibrant community however, I am proud to be one of the many creative and interesting businesses that call downtown Barrie home. If you haven’t visited our neighbourhood recently, you’re missing out,” said Tracey Baker, Owner of ZuZu Fashion Boutique.
Suzanne Cayley, vice president of specialty leasing for Aurora Realty Consultants who provide services to RioCan which owns the Georgian Mall, said the space was formerly used by HMV. The pop-up shops range from 300 to 450 square feet with a common space in the middle.
“I’m calling it the three C’s - community, collaboration, and connecting. I think it’s important we as the property continue to do everything we can to support the community and the retail environment within Barrie as a community,” said Cayley. “It’s also an opportunity for the retailers to be able to develop perhaps a different customer base . . . so it’s connecting them with different and newer customers too,” she said.