Grocery store giant Real Canadian Superstore has launched a pilot program where it is partnering with Canadian Appliance Source to sell appliances with a store-in-store model in Milton, Ontario.
The pilot store, located at 820 Main Street East, in Milton, Ontario, has more than a dozen top brands to choose from in-store including LG, Kitchen Aid, Samsung, Bosch and Frigidaire along with access to the majority of CAS’s extended online catalogue. The store will include a 1,900-square-foot kiosk for appliances.
The kiosks will be staffed by CAS appliance experts and offer the same service, terms and conditions as standalone CAS stores.
Jonathan Carroll, Senior Vice President of Operations at RCSS, said the brand has always been a one-stop-shop for everyday needs.
“In addition to grocery, we also carry apparel, home and entertainment and even small appliances. This was just a next logical step, bringing customers more of what they want into one convenient location. We’re pleased with results so far and are proud to be partnering with one of the most trusted names in the business, Canadian Appliance Source (CAS). What makes this announcement really special though, is that customers can now earn and redeem valuable PC Optimum points when they buy large appliances through the CAS Kiosk at RCSS,” he said.
“Our customers are busy, and we want to give them every convenience we can with the best possible value. That means we’re always looking for new ways to offer them more . . . we pride ourselves on being a one-stop-shop for everyday needs and large appliances were a logical next step.
Carroll said the Superstore footprint is large with many of the stores more than 100,000 square feet. So stores will be able to accommodate a 1,900-square-foot kiosk quite easily.
“Milton is a pilot location, but we have Real Canadian Superstore locations from BC to Ontario, so we have a wide area to test,” added Carroll.
“CAS is incredibly excited about this opportunity to work with such an iconic brand in Canada,” said Ari Klein, CEO & Founder, Canadian Appliance Source. “Bringing our signature appliance shopping experience to the Real Canadian Superstore consumers, plus the opportunity to benefit from the PC Optimum program, is a win-win for everyone.”
George Minakakis, CEO, Inception Retail Group, and author of The New Bricks & Mortar: Future Proofing Retail, was impressed with the concept after visiting the Milton store on Thursday.
“The Real Canadian Super Store has added a shop-in-shop into its retail environment with Canadian Appliance Source,” he said. “Success will depend on the product, price and service provided.
“Living in the area, I had the opportunity to see the retail layout and service. I was generally impressed. We must remember that there is a life cycle to appliances and that changes also happen in upgrades, new home ownership and lifestyle changes. RCSS is a hypermarket in Canada, and this shop-in-shop model adds another layer of service to their household goods.
“Canadian Appliance Source has a captivated retail environment with high traffic. This strategy should work as long as consumers see value in one-stop shopping for their appliances.”
Superstore said there are plans to expand the pilot to a small number of additional locations across the country later this year.
“The pilot collaboration between Canadian Appliance Source and Real Canadian Superstore is a win for both retailers and eventually for the Canadian consumer. Canadian Appliance Source is an industry leader in the extremely competitive major appliance category and is sure capitalize on the high customer footfall at the Superstore locations with their kiosk locations. The synergistic traffic benefits are obvious and the value proposition to the customer between the two firms are aligned,” said Michael Kehoe, Broker of Record at Fairfield Commercial Real Estate Inc. in Calgary.
Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail, said the partnership represents a trend that we have seen more of lately where two companies with complementary offerings partner to create synergies.
“Loblaw brings the weekly traffic and the potential geographic coverage that Canadian Appliance Store lacks, not to mention the PC loyalty program which sweetens the deal for the major appliance customer,” said Winder.
“Canadian Appliance Store brings in a new customer to the Loblaw family and all of their data that can be used to sell them more groceries and other products that RCSS carries. The addition of major appliances adds credibility to RCSS home products assortment as well and creates a halo effect. The heavy lifting on operations is left to CAS so Loblaw does not need to manage the business it is assumed. Loblaw collects sales revenue or commission while utilizing its vast space.
“Since the likes of Sears went under several years ago, the major appliance market has been up for grabs with Best Buy marketing the category along with The Home Depot aggressively.”
Loblaw Companies Limited is Canada’s food and pharmacy leader, as well as its largest retailer and private sector employer. With approximately two billion transactions each year in its unmatched network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many brands: President’s Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The company’s loyalty program, PC Optimum, has more than 18 million members.
CAS was founded in 2008.
