Liza Amlani, founder and principal of the Retail Strategy Group, recently shared her thoughts on
critical shifts in the Canadian retail landscape in a conversation with Retail Insider’s Mario
Toneguzzi. With over two decades of industry experience, Amlani provided insight into topics dominating retail discussions today—particularly the growing importance of sustainable retail practices and the changing dynamics of the resale market. As retailers adjust to economic uncertainty, she highlighted how understanding and responding to consumer needs is essential for sustained growth.
Sustainability’s Role in Shaping Retail Strategy
Amlani noted that sustainability is a significant concern for brands and consumers alike, describing it as a “giant word” often hard to define due to limited standardization across the industry. This lack of clear guidelines leaves many brands questioning how to effectively implement sustainable practices.
Nevertheless, Amlani observed that, overall, retailers are gradually moving towards aligning their operations with consumer values.
Consumers are increasingly aware of where and how their products are made, Amlani explained, especially in an era of ultra-fast fashion where transparency is sometimes lacking. “Sustainability is something I think about a lot, especially from a consumer perspective,” Amlani shared.
She highlighted popular platforms like Shein, Temu, and even Amazon Fashion as examples where
concerns about ethical sourcing are prevalent. Such consumer awareness, she added, underscores
the need for retailers to demonstrate accountability in their sourcing and manufacturing processes.
Amlani’s outlook for sustainable retail practices extends to product life cycles. For her,
promoting sustainability means ensuring products are used longer, either through the original
buyer or through resale platforms. This perspective aims to minimize waste and reduce the
number of items reaching landfills. She encouraged the industry to consider models that extend
the life of products and keep them out of landfills—a move she described as beneficial both for
the environment and for consumer trust in a brand.
Resale Market Growth and its Impact on Canadian Retail
The rise of the resale market has added another layer to today’s retail ecosystem, Amlani noted.
With second-hand goods gaining popularity, companies such as Value Village and Salvation Army are seeing more traffic as people become more inclined to buy second-hand items. Amlani herself is a resale advocate, sharing that she purchased a luxury bag through a second-hand platform, highlighting the growing acceptance of high-quality, pre-owned luxury items.
She sees the resale trend as complementary rather than a threat to traditional retail. “The more
we can use a product, the better it is for the environment,” Amlani stated, emphasizing the role of
resale in fostering sustainability. According to Amlani, the retail landscape now has three primary verticals: full-price, off-price, and resale. Each vertical allows retailers to serve different consumer needs while encouraging sustainable shopping habits.
From a brand management perspective, Amlani advised retailers to examine their production
cycles, markdown strategies, and inventory levels. Excessive production, she said, contributes to
unnecessary waste and dilutes a brand’s sustainability goals. Brands could adopt circular models,
like take-back programs, that recycle textiles and trims, offering a new life to unsold or returned
items. She observed that this concept of circularity is not exclusive to fashion; it’s applicable across industries, including automotive and electronics.
Meeting the Evolving Expectations of Retail Consumers
As the holiday season approaches, Amlani foresees a slight increase in retail spending, driven by seasonal demand and economic factors. Recent data from Statistics Canada indicates stable sales with a slight lift in retail numbers, signalling a positive trend despite inflation and rising costs. For many consumers, shopping behaviours have diversified, with individuals from all income brackets making more informed decisions about where they shop.
Interestingly, Amlani pointed out that even luxury shoppers are opting for cost-effective
solutions, combining high-end purchases with essential buys from budget-friendly retailers such
as Dollarama or Walmart. “Customers are not just shopping at high-end stores anymore; they’re
balancing their spending with budget-conscious choices,” she said. This shift highlights how
economic pressures are influencing shopping patterns and increasing the demand for value across
all retail segments.
Amlani noted that lower and middle-market retailers, along with popular discount brands, have
seen significant sales growth as a result. The trend toward diversified spending demonstrates
how informed consumers have become about price sensitivity and value, opting for strategic
purchasing decisions even when finances are constrained.
Enhancing Customer Service to Drive Loyalty and Sales
Customer service remains an area for improvement among Canadian retailers, according to
Amlani. She believes that high-quality service is essential for customer loyalty and profitability.
Unfortunately, many retailers have been slow to invest in store experiences and employee
training, treating these areas as secondary. “Meeting customers with the best service where they
want to shop is crucial,” Amlani said. She emphasized that retailers can enhance in-store experiences by investing in training that empowers employees, turning them into brand ambassadors capable of guiding customers toward informed purchases.
In Amlani’s view, cross-functional teams—including corporate departments such as buying,
design, and marketing—need to spend time on the retail floor to understand the customer
experience better. This direct involvement, she argued, fosters an alignment between corporate
strategy and real-time customer needs, leading to a more unified approach to service delivery.
Finally, Amlani advocated for tailored service options that resonate with customer preferences,
whether through traditional checkouts, self-checkouts, or knowledgeable staff members at every
touchpoint. By adopting an adaptable approach, retailers can cater to the individual needs of each
shopper, ensuring a seamless and enjoyable experience.
A Time for Retailers to Refocus on Fundamentals
As Canadian retailers prepare for the fall and winter season, Amlani warned that some may find
this period challenging if they neglect retail fundamentals. She urged all retailers to reevaluate
how they create and market their products, as well as how they interact with customers. Building
on solid fundamentals, she asserted, is essential to boosting profitability and customer retention
in a time of economic unpredictability.
Amlani’s message to retailers is clear: revisit the basics and invest in what matters most to
today’s consumer. In a retail environment where competition is fierce, a solid strategy focused
on sustainability, responsiveness, and customer service may be the key to enduring success.
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