ISSUE ONE
Retail repurposed: Exploring the transforming role of the brick-and-mortar retail store
PLUS!
Snap Inc. C anada Retail Exec utive Roundtable
Inflation, supply chains & greed
Cauldron of chaos
On the back of its people
Planning for the worst amid continued disruption and disarray
Examining a disturbed and disrupted retail supply chain
Inside Peavey Industries LPs strong employee and brand culture
Powerd by
Join Canada’s premier multi-mall marketplace
Add a new online sales channel for shelf stocks with fast & sustainable delivery Canada-wide Easily upload online & offline inventories to virtual mall
Source & fulfill orders from anywhere in your store network
Discover more
2 | Retail Insider the magazine | Issue One
WWW.PRIMARCHE.CA
Frictionless delivery Curbside, In-store, Same day / Next day delivery
UPFRONT // PUBLISHER’S DESK
Exploring and celebrating a dynamic Canadian retail industry Welcome to the inaugural edition of Retail
featuring proprietary research and information
Insider the magazine – the only one of its
connected to the magazine.
kind dedicated to covering the country’s retail industry. I’m extremely proud to launch this
I would like to thank everyone involved for their
dynamic magazine, which coincides with the
contribution in helping to realize this incredible
10-year anniversary of Retail Insider, which I
achievement: the magazine’s Associate
founded in 2012.
Publisher, Dustin Fuhs; Editor-in-Chief, Sean Tarry; Art Director, Scott Newlands, and all of
In addition to serving as an extension of the
our amazing contributors who have ensured
Retail Insider Media Ltd. offering, Retail Insider
that our first issue is a huge success. A special
the magazine is a publication that also ensures
thank you must also be paid to our advertiser
a much-needed voice for the Canadian retail
and sponsor partners for providing the support
industry. The past two-plus years have been
required to execute on a project of this nature.
incredibly challenging for merchants of all sizes and formats, and a time during which
Most of our thanks, however, go to you – the
there has not been a publication featuring
reader. Without you, the people who comprise
investigative research, thought leadership
this dynamic and exciting Canadian retail
and provocative insights meant to support
industry, our endeavour would be meaningless.
and facilitate innovation and help uncover opportunities. Retail Insider the magazine
I really hope that you and your teams find the
aims to fill that void and be that publication.
content that follows engaging and useful and will look forward to your response.
As part of our first edition, which includes highlights on the retail supply chain, store
Sincerely,
experience and evolving role of human resources, we’re also launching a brand-new online portal which showcases international retailers entering the Canadian market as well as those that are already here and expanding.
Craig Patterson
To access the portal, visit page 26. This will
Publisher
represent the first of various online resources
craig@retail-insider.com
therimagazine.com | 3
IN THIS ISSUE //
Issue one 12
38
12 // The store of the future isn’t a store
Best-selling author and Founder of Retail Prophet Doug Stephens shares a glimpse into the future of the physical retail store.
18 // Executive Roundtable
28 // Planning and Strategy At the helm of inflation, supply chains and greed
Transforming the retail experience to meet evolving consumer needs
Retailers across the country plan for the worst
Who is the Canadian consumer? And what do
38 // Supply Chain Disruption
they seek from the brands they shop with? A panel of industry leaders discuss these talking points, and more.
amid continued disruption and disarray.
Cauldron of chaos As more negative forces are added to the mix, the disruption and disturbance around the
26 // Special Report New Canadian market entrants and homegrown retailers expanding Retail Insider Media Ltd. Founder Craig
retail supply chain continues to grow.
50 // Brand Profile On the back of its people
Patterson provides a sneak-peek into the
Peavey Industries LP continues tremendous
brands helping to shape the future of the
growth and success as a result of a strong
Canadian retail landscape.
employee and brand culture.
4 | Retail Insider the magazine | Issue One
MASTHEAD //
Departments 03
Publisher’s Desk
06
Insider Insights
08
Main Street Matters
10
The Digital Curve
56
Data Points
57
Advertisers and Sponsors
PUBLISHER Craig Patterson ASSOCIATE PUBLISHER Dustin Fuhs EDITOR-IN-CHIEF Sean Tarry ART DIRECTOR Scott Newlands
44
CONTRIBUTORS Jana Manolakos, George Minakakis, David Nagy, Craig Patterson, Clara Spinassi, Doug Stephens, Sean Tarry, Mario Toneguzzi SALES AND SPONSORSHIP Darryl Julott | darryl@retail-insider.com Tyler Mercer | tyler@retail-insider.com ________________________________________ EDITORIAL OFFICE 100 Bloor Street West, Toronto, ON, M5S 3L3
Retail Insider the magazine is published
44 // Human Resources The great renegotiation Mental health and wellness issues are coming into sharper focus, becoming the new
four times each year by Retail Insider Media Ltd.
therimagazine.com
bargaining chips in retail staffing.
therimagazine.com | 5
UPFRONT // INSIDER INSIGHTS
Return to the office? 50% 88% According to a recent Ipsos poll of Canadians currently working from home, only half believe that they’ll be returning to their offices regularly in 2022.
56%
say that they’ve enjoyed working from home, with 58% stating to miss their colleagues.
have enjoyed the flexibility of working from home and would rather not return to their office on a regular basis.
Sustained supply chain disruption 9 out of 10
A recent survey conducted by Sapio Research on behalf of Coupa Software Inc. reveals that 90 percent of retail supply chain leaders at retailers in the U.S., U.K., France and Germany expect revenue will continue to be impacted by supply-chain issues throughout 2022. In addition, retail organizations anticipate revenue losses between 5% and 20% over the course of the past 18 months, reflecting a loss of billions of dollars in sales.
The rise of augmented reality 8.8 Million
Fresh data from Global Industry Analysts Inc. indicates that the global smart augmented reality glasses market is set to reach 8.8 million units by 2026.
6 | Retail Insider the magazine | Issue One
+80.3%
Increasing a market that comprised an estimated 255.6 thousand units in 2020, the smart augmented reality glasses segment’s CAGR is expected to grow by more than 80 percent.
The cost of inflation 55%
Findings within BDO’s 2022 Retail CFO Outlook Survey reflect growing concern around supply chain threats, with more than half of the retailers asked planning to raise their prices in 2022.
38%
have already raised prices. More than 25% are planning to restructure or reorganize this year.
52%
of retail executives cite supply chain disruption as the number one threat to their business followed by supplier risks or delays (38%), supply shortage (37%) and higher customer expectations (34%).
To restrict or not restrict?
1/3
2/3 73%
A new study released by Angus Reid Institute, in partnership with the Canadian Broadcasting Corporation, reflects hesitance among Canadians with respect to the removal of social restrictions, with 36 per cent believing that their removal has been made too soon, compared to only 22 per cent who believe that it has not happened soon enough. Despite the removal of restrictions, 64 per cent of Canadians will continue to sanitize their hands in addition to washing them. Three out of five people intend on maintaining the practice of social distancing.
of Canadians are in support of the continuation of masking requirements in public spaces, like shopping centres and retail establishments.
64%
support proof of vaccination for entry into places like restaurants and theatres.
53%
More than half of Canadians asked will avoid large crowds in the near-term, with exactly 50 per cent content to continue wearing a mask in public.
Mental health support
1/2
According to research conducted by Canada Life and Workplace Strategies for Mental Health, exactly half of Canadian workers feel as though their employers are not taking the steps necessary to protect them, particularly from psychosocial harm.
therimagazine.com | 7
UPFRONT // MAIN STREET MATTERS
Supply chain issues remain a challenge for independent retailers; governments can help by keeping other costs of doing business from increasing // By Dan Kelly, President, Chief Executive Officer and Chair of the board of governors of the Canadian Federation of Independent Business
The retail sector has shown immense resilience
such as increased time and effort to access the
and creativity throughout the pandemic. We’ve
products small businesses need for production
seen retail businesses adapt to restrictions
and sales, ranked second (70%) on business
and lockdowns and pivot to offer curbside
owners’ list of significant challenges, after
or delivery services, do online auctions, and
rising prices.
rely on e-commerce to do business and stay connected with their customers.
CFIB’s latest research shows that 89 per cent of small businesses are impacted by supply chain
However, the past two years have also been
challenges. Those in retail, manufacturing, and
incredibly tough on many business owners
construction are being hit the hardest. Supply
who are now left struggling to get back on
chain issues may slow or halt production and
their feet, facing high debt levels, labour
cause delays in receiving shipment. For small
shortages, mental health challenges and
businesses trying to ramp up their production
supply chain issues. Two thirds of businesses
and sales, the issue also results in an increased
(67%) report taking on debt, at an average of
cost of shipping to customers or increased
$158,000 per business, while one in seven (14%)
prices of goods and services. In fact, 39 per cent
are considering bankruptcy.
of businesses are waiting more than a month
Supply chain challenges Heading into 2022, supply chain challenges,
8 | Retail Insider the magazine | Issue One
for shipments, while 3 in 10 business owners have seen their business’s costs increase by more than 20 per cent due to supply chain issues.
Logistical issues, delays and scarcity, in turn,
Despite the anticipated challenges and
have forced some business owners to increase
uncertainty, about one in two entrepreneurs
the prices of their goods and services to cover
said they were hopeful about the future of
the additional cost of doing business. By doing
their business as we greeted the new year. We
so, owners may risk losing customers or see
need to ensure our economy bounces back to
their sales traffic cut significantly.
pre-pandemic levels. But it will take time, hard
A return to brick-and-mortar shopping
work and support from the governments and the public.
More than half (58%) of businesses that have
Dan Kelly is the President, Chief Executive Officer
not yet returned to normal revenues said
and Chair of the board of governors of the Canadian
that a lack of customers was one of the main
Federation of Independent Business (CFIB) - the largest
reasons, while 50 per cent cited operational
non-profit organization representing over 95,000
challenges, such as interrupted supply chains,
businesses across Canada.
longer processing times, inability to do any or many online sales, or complicated shipping. Small retailers can’t afford to lose any more customers, especially when it’s crucial to boost consumer confidence as restrictions are lifted. We need to encourage consumers to return to in-person shopping while assuring them that it’s safe to do so. Shopping in a brick-andmortar business and being able to touch or see
89%
The percentage of small businesses in Canada that are being impacted by supply chain challenges.
products is an integral part of the shopping experience for many people. After staying at home for the past two years and shopping online, many consumers are eager to go out and return to physical stores. Supply chain challenges pose a real barrier for retailers and jeopardize their return to normal operations.
Government action required What can the government do to address supply chain challenges? There are no easy solutions, but CFIB is recommending keeping the cost of business from going up, reducing red tape and helping small businesses get back on their feet as they embark on a long road to recovery.
39%
The percentage of businesses that are waiting more than a month for shipments.
3 in 10
The number of business owners who have seen their business’s costs increase by more than 20 per cent due to supply chain issues.
therimagazine.com | 9
UPFRONT // THE DIGITAL CURVE
Digitally transforming in order to tackle the challenges of the modern retail business Federal financial support providing incredible opportunities for Canadian small- and medium-sized businesses // By David Nagy, Founder, eCommerce Canada
In light of the Government of Canada’s recent
as new technologies drive both customer
announcement regarding the Canadian Digital
experience as well as workplace culture
Adoption Plan (CDAP), it seems appropriate
expectations to entirely new heights.
to focus the first instalment of my quarterly column on digital transformation and the
It’s also fair to say that we’ve reached
potential implications for retail businesses.
something of a sea change moment in retail wherein e-commerce is likely more
CDAP offers $4 billion of federal support to
affected than brick-and-mortar. Influenced
a wide spectrum of Canadian small- and
by impacts of the pandemic, the past couple
medium-sized businesses through both micro-
of years have created an incredible amount of
grant funding for emerging businesses as well
uncertainty with respect to strategic direction
as digital advisory services for more mature
for many operations. In short, the pace of
ventures. While this is an impressive number,
change in online retail has likely never been
the sheer scale of digital transformation
more profound. And it’s creating challenges
globally makes this one of the largest growth
throughout every aspect of the e-commerce
opportunities within the technology industry,
industry.
anywhere. As reported by Statista in February 2022, digital transformation spending is
As a result of this change, the “old” way of
expected to reach $1.8 trillion USD in 2022 before
doing things just doesn’t work anymore. An
increasing to a whopping $2.8 trillion by 2025.
overwhelming amount of digital noise is
A new digital world
driving consumer apathy, and new methods need to be developed in order to cut through it
It’s fair to say that the retail industry will be
so that the industry can begin a much-needed
significantly impacted by this global push,
reset.
10 | Retail Insider the magazine | Issue One
What’s the problem?
which is a daunting concept for most of us to
The problems can almost be spoken verbatim.
even entertain.
Having problems with your supply chain, by chance? Struggling to keep or grow your team
What is simple to predict, however, is the fact
before they get poached by competitors? How
that not all businesses will be able to adapt to
about the rising cost of customer acquisition?
the digital transformation age. Whether it’s
These and many more issues are creating
large businesses that are married to legacy
anxiety for every executive, purchaser and
models or small businesses that don’t have the
marketer in the business. And, unfortunately,
human and capital resources to react, there
solutions aren’t being created as quickly as the
will be a consolidation and a change in tides
problems are arising.
that many organizations won’t survive.
Therefore, it stands to reason that digital
This isn’t a bad thing, though. Consolidation
transformation - the modification of business
equals opportunity, as the transition of wealth
processes, models and systems to advanced
and opportunity unsettles the norm and drives
computer intelligence - will be at the core of
innovation. At the end of the day, isn’t that
the ways in which we solve these challenges.
what we all really need right now?
Going forward, customers will demand better
Taking the first step
experiences. And we’ll deliver by providing
Sadly, there isn’t a manuscript or ‘self-help
more personalization and greater value than
guide to digital transformation’ that will give
ever through our understanding of their
you and your teams a roadmap to follow.
distinct needs. The best employees will choose
Expect a multi-year process of evaluation and
to work for companies that provide the highest
conscious evolution. There isn’t a multi-tool
quality of life, opportunities for advancement
available to digitize every part of a company
and an organizational culture that allows them
over the course of a long weekend in the same
to thrive. And, supply chain constraints will
way Shopify was able to commoditize online
get rewired due to sheer demand, and better
shopping for small businesses. Not yet, anyway.
visibility will drive diversification of trade and
But it’ll come.
export opportunities.
Rewiring the business
For now, focus on benchmarking where your digital capabilities are at today. Then identify
I can’t consciously suggest that this
where you want to be. Try to visualize the path
process will be quick or easy. In fact, digital
between these two states and you’ll start to
transformation is an over-simplified way of
see a route forming. You’ll start to understand
describing something that can involve the
where you can connect the dots in order to
complete rewiring of the way in which you
make incremental improvements. And then
position yourself in the market and how you
it’s time to take that first step on your digital
deliver value to customers. It will impact
transformation journey, adding a little more
how you buy and what you sell. It may
to your strategy every day, because the future
fundamentally change your business model,
won’t reward those who can’t transform.
therimagazine.com | 11
FEATURE // RETAIL REPURPOSED
The Store of the Future Isn’t a Store In this exclusive excerpt from his latest book Resurrecting Retail: The Future of Business in a Post-Pandemic World, bestselling author and Founder of Retail Prophet Doug Stephens argues that as the world emerges from the pandemic, wise retailers will rethink the core purpose and value of their physical stores.
A
nyone who knows me knows that since
that stores, in order to fill racks and shelves,
at least 2015 I’ve been howling like a mad
had to carry too much inventory. This led to
dog at a full moon about a coming transition in
markdowns and drains on margins, which
the retail industry. Well, I may stop howling now
were then further softened by damaged
because the transition is complete. I’ll explain.
goods, write-offs, and of course theft.
COVID-19 has finally awakened the retail
None of this, however, negates the tremendous
industry to the impracticality of physical
value of physical retail spaces. I repeat. This
stores as a reliable means of distributing
does not negate the value of physical space.
products, given their vulnerability to
On the contrary, it alters and enhances it.
disruption. Increasingly frequent interruptions brought on by social unrest, climate change,
Stores are transforming from a product
weather events, and, of course, pandemics all
distribution channel to a media channel, and
foreshadow trouble for physical stores in the
in a post-pandemic world, their role as a media
future. And the inherently limited availability
channel will be even more vital than it is today.
and access offered by brick-and-mortar stores renders them increasingly inconvenient in a
For one thing, the cost of digital media
digital society.
has escalated to the point of becoming an impractical means of customer acquisition for
But if we’re totally honest, even in their heyday,
many brands. For example, in 2016 U.S. fashion
such stores were a problematic means of
subscription brand Stitch Fix was paying an
putting products in the hands of customers.
average of $31 for each new customer acquired
The inherent restrictions on operating hours,
through digital media spending. By 2021
together with high working capital and
however, that cost had soared to over $350.
payroll costs, ate into profitability. Minimum
For some brands this exponential increase in
merchandising thresholds often meant
media costs has proven untenable.
12 | Retail Insider the magazine | Issue One
therimagazine.com | 13
Illustrations: Clara Spinassi
For example, in 2019, retailer Outdoor Voices
where the consumer’s true level of interest or
warned that the cost of each incremental
engagement can be debatable, a physical store
customer acquired through digital media
can validate the consumer’s actual presence
channels now outweighed the revenue
and participation in the experience. We can
opportunity that each new customer brought
connect directly and intimately with them.
with them. Worse perhaps is the fact that,
This may change in the short term, given
according to the Association of National
continued uncertainties around COVID-19. But
Advertisers, about 70 per cent of digital ad
it will almost certainly hold true in the long
spending “evaporates in non-viewable ads, ad
term. The pandemic will not kill the value of
fees, non-brand-safe placements and unknown
physical retail experiences. In all likelihood, we’ll
allocations.” That’s Latin for wasted ad spending.
crave physical and social interaction more than
While the cost of advertising has moderated
ever, and retail stores can help to satisfy that
somewhat as a consequence of the pandemic,
need. That said, the pandemic will profoundly
it’s a fair assumption that once light appears at
raise the customer’s expectations for the quality
the end of the tunnel, brands will be flooding
of those experiences. Having adapted over what
back into the market with ad spending. In the
will be two or more years of accelerated digital
longer term, digital advertising as a means of
commerce, customers will undoubtedly be far
acquiring new customers is clearly becoming
more discerning when it comes to making the
a prohibitively expensive and marginally
effort to engage in real-life experiences. And
effective tool.
that means we have to find new uses for the spaces formerly known as stores.
Yet in pre-pandemic New York, it wasn’t unusual to see lineups at Glossier, Supreme,
Stores as stages
and Kith. As far away as Melbourne, hundreds
Before the pandemic, I was in Melbourne,
of shoppers lined up, sometimes hours before
Australia, for some client work. I got up early the
opening, to get into streetwear emporium
first morning and headed out to check out the
Culture Kings. On a 2019 trip to Tokyo, I
retail scene. At about 8:00 AM, I came across
witnessed throngs of young shoppers waiting
a lineup of young people stretching halfway
eagerly outside chic retail stores in Harajuku
down the block. Some had brought camp
and Shibuya.
chairs and blankets, indicating that they’d been there some time already. They were waiting for
Physical retail stores are not only a powerful
the opening of the store already mentioned,
media channel; I’d go so far as to argue
Culture Kings. Culture Kings is an Australian
that they’re now the most manageable,
streetwear retailer with eight stores across the
tangible, and measurable media channel
country. I decided to come back a couple of
available to a brand. Unlike digital media,
hours later and check it out.
70%
According to the Association of National Advertisers, an estimated 70% of digital ad spending “evaporates in non-viewable ads, ad fees, non-brand-safe placements and unknown allocations.”
14 | Retail Insider the magazine | Issue One
When you enter, any illusions that Culture
Above all, you feel a distinct theatricality.
Kings is “just another store” evaporate. First,
The space, the sounds, the lighting, the staff
you feel the bass from the sound system
engagement levels — all of it reinforces the
crawl up your legs and into your chest. Then,
feeling that you haven’t just slipped into a
you’re struck by the sheer size of the multi-
regular store. You’ve entered a different world
level space, which looks more like a nightclub
entirely. Within the walls of that space, Culture
in Rio than a retail store. Next, you notice the
Kings has created a physical stage where its
DJ elevated twenty feet above a basketball
branded productions can be delivered to an
half-court below. On that half-court, staff
adoring audience.
are entertaining customers by holding a free-throw competition. Upstairs, you can
I didn’t buy anything that day. Frankly, I’m
grab a snack and a haircut. And despite the
not Culture Kings’ intended customer. What
company’s diminutive size, compared with, say,
I did leave with, however, was the most
the Foot Locker chain, it’s not at all unusual to
important product: a highly positive brand
find international celebrities from the world of
impression. Positive enough that I’m sharing
music, film, and sports roaming Culture Kings’
it with you here.
aisles with you. But if brands are creating amazing content like this in their stores, why should it be experienced by only those within the store? Why not let the world experience it too?
“Physical retail stores are not only a powerful media channel; I’d go so far as to argue that they’re now the most manageable, tangible, and measurable media channel available to a brand.”
Stores as studios Nema Causey has a sweet business. Literally. Candy Me Up is a San Diego–based, familyowned confectionary business, specializing in selling to retail clients for special occasions. Shortly before the pandemic, Causey — along with her brother Jonny, who heads up the distribution side of the business — noticed a slight decline in orders. When COVID-19 hit, the problem only became worse. “I was 99 per cent sure we were going to shut down,” she said. In a moment of desperation, she opened a TikTok account and with Jonny, began making videos from inside the store. The store, colorful and bright, with loads of candy, provided the perfect backdrop for their antics. The pair also jumped on trends like the Jelly Fruit Challenge — an online challenge in which
therimagazine.com | 15
participants film themselves biting into jelly-
beauty space, Morphe drew up plans in 2019
filled candies, which, as you quickly learn, can
to expand its physical presence in the United
explode when bitten into, sending jelly, at
Kingdom, United States, and Canada. But
great speed, onto cameras, clothing, and the
these are hardly the sort of spaces you think of
faces of nearby friends. It wasn’t long before
when imagining a typical cosmetics store — in
Causey and her brother began attracting
part because the retailer is building full-
a following on TikTok. Thanks to a shout-
fledged production studios into its locations
out from a YouTube celebrity, the company
to drive brand awareness through customer-
almost immediately landed another 40,000
generated content. Budding content creators
followers. Soon, followers turned into orders,
in the beauty space can book studio time, and
and Nema Causey rapidly built the company’s
with the support of staff, access a full array of
first online store. She quickly ran headlong
cameras and lighting equipment. Each studio
into the enviable problem of selling out of
also doubles as a makeover space where
items featured in her videos — in one case,
customers can receive free twenty-minute
selling ten times more than expected. In case
makeovers or learn new techniques.
you’re wondering, the content Causey and her brother Jonny create isn’t high production
The result is hundreds of video tutorials which
value. It’s just fun and creative. In addition
now appear on the brand’s website, with
to viewing behind-the-scenes glimpses into
hundreds more being distributed through the
store life, the audience can live vicariously
channels of engaged and influential content
through the pair as they show, explain, and
creators. Factor in the network effect of all
yes, gorge on the array of exotic candies the
those contributors engaging their audiences
company carries.
with content created at Morphe, and it becomes a branding campaign that would
Today, Candy Me Up has close to a million
rival that of the largest beauty companies on
followers on TikTok and is now in the process
Earth. In all, the company aims to have over
of growing its Instagram following as well. As
fifty of these spaces across North America and
for the Causeys, their biggest problem now is
the United Kingdom.
keeping up with demand. Again, this underscores the point that stores What Causey and her brother have discovered
can be powerful stages or places for live
is that their store is in fact the perfect film
commercial theater. They also make wonderful
studio from which to promote their business,
studios for content creation. In fact, even in
and that they are the essential characters in
the pre-pandemic world, I was so committed
the story. From that studio, the Causeys have
to this idea that I had already created a
developed not only an audience but an entirely
new division of Retail Prophet, focusing on
new and expanded market.
in-store, live-stream production services
Morphe-ing into media
for retailers — assisting them in building their stores into sets and stages for weekly
Cosmetics brand Morphe (pronounced Mōr-
live-streamed productions. What seemed
fee) is growing. Once an online pure play in the
somewhat innovative only a year ago is a
16 | Retail Insider the magazine | Issue One
no-brainer today. In a post-pandemic world, leveraging stores as physical backdrops for the creation of remarkable physical and digital content is an idea that has clearly come to the mainstream. The point here is that every day around the world in retail spaces large and small, magic happens. But those experiences need not be contained to the four walls of a store when they could be used to reach massive global audiences.
Rent is the new cost of customer acquisition Given the massive shift in the market to online, and the corresponding shift to using stores less as a distribution channel and more as a media channel, we must completely rethink the way we measure the productivity and contribution of physical stores. In a world where online retail is now growing furiously by double digits — while offline languishes in the low single digits — it’s logical to assume that the four-wall revenue of many retail spaces will
“Given the massive shift in the market to online, and the corresponding shift to using stores less as a distribution channel and more as a media channel, we must completely rethink the way we measure the productivity and contribution of physical stores.”
decline. But does that mean the store is less important? Absolutely not. But it does demand that we measure its value differently. My friend Rachel Shechtman is the founder
distribution, and newsprint then dominated.
of Story, an early pioneer in the realm of
The advent of radio allowed for new levels
experiential retail. I was speaking with Rachel
of both immediacy and reach. Soon after,
recently about how retail is measured. She said,
television became the primary hub from which
“Media has always been effective wherever
customers received their information. Today,
people gather in numbers. All you need is
digital media has largely displaced all others as
a message and an audience and voila! You
the primary social campfire we gather round
have a media channel.” And she’s absolutely
to know what’s happening, what’s new, and
right. A thousand years ago, that gathering
what’s next. But with the cost of that media
place was the market bazaar, where people
now soaring and its effectiveness becoming
socialized, gathered news and information,
marginalized, retailers that intend to survive
and, of course, discovered merchants and
the next decade will have to begin not only
must-have products. Then, the printing press
treating their physical assets as media but also
became the more efficient means of media
measuring them as such.
therimagazine.com | 17
FEATURE // EXECUTIVE ROUNDTABLE
Transforming the retail shopping experience to meet evolving consumer needs and behaviour // By Sean Tarry There’s no denying the fact that the past two-
// Presented by: Snap Inc. Canada MODERATOR
plus years have challenged retailers across the
Matt Bolivar
country. Social restrictions and government-
Retail Lead, Snap Inc. Canada
imposed lockdowns threatened their operations, precipitating an accelerated digitization of the industry. The combination of a changed
PARTICIPANTS
environment and the rise of the digital revolution has influenced alterations to consumer behaviour
Scott Arsenault
and preferences, alterations that are most
CEO, Ren’s Pets
noticeably reflected in the recent escalation of e-commerce and continued increases in online activity. In short, the impacts of the pandemic have resulted in a critical industry-wide rethink concerning the experience that’s offered to the Canadian consumer across the many channels within an expanding retail ecosystem. But who is today’s Canadian consumer? And what are they
Drew Green CEO and President, Indochino
Meghan Roach Chief Operating Officer, Roots
seeking from the brands that they shop with? In order to answer these questions, Retail Insider the magazine brought together some of the
Rohit Thosar Sr. Manager, Digital Performance Marketing, Walmart Canada
brightest leaders in and around the industry for the first installment of our ‘2022 Retail Executive
Michael Ward
Roundtable’ series. With a focus on exploring the
CEO and Chief Sustainability Officer, IKEA Canada
impacts of the digital age, our roundtable panelists discuss the ways in which retailers across the country are keeping up with the technological curve while continuing to find ways to improve and enhance the customer experience.
18 | Retail Insider the magazine | Issue One
Livia Zufferli Consulting partner, Customer & Marketing, Deloitte Canada
MATT BOLIVAR:
The Canadian consumer
continues to evolve, exhibiting tastes, preferences and behaviour that have been accelerated by impacts of the pandemic. They are moving online to research and purchase products like never before and are becoming increasingly comfortable traversing channels amid an expanding retail shopping journey. Considering these things, who is today’s Canadian consumer? And what are they seeking from the retailers and brands they shop with? DREW GREEN:
47%
Optimistic about the future Despite the fact that 81 per cent of Canadians are concerned about the rising prices of everyday purchases, nearly half are confident that their financial situation will improve within the next 3 years. (Deloitte Global State of the Consumer Tracker, March 2022)
The last couple of years have
been incredibly tough for a lot of Canadians, presenting them with quite a bit of change
ways of receiving goods. They’ve never been
to work through. As a result, we’ve noticed a
more prepared with information and an
significant change in the ways the consumer
understanding of what they want and what
is interacting with our brand. There’s been a
they’re looking for. And they’re increasingly
massive shift toward online. But the Canadian
expecting to be understood by their favourite
consumer still loves retail. They’re looking for
retailers and communicated to in ways that
an experience and want to have fun again. And
bring value to their lives.
they’re willing to pay for excellent experiences. ROHIT THOSAR: SCOTT ARSENAULT:
People still really like the in-
Along with a massive uptick in
online consumer activity, shopping behaviour
store experience. But there’s a shift happening.
in-store has also been impacted by factors
The Canadian consumer wants to shop the
like supply chain disruptions. Today, it seems
way they want to shop, crossing channels with
that there are three cohorts of Canadian
ease, leveraging a number of different modes
consumers: the loyalist who will shop with their
to communicate with brands. And they don’t
favourite brand no matter what; those who will
want to be exposed to traditional ads. They
explore substitute brands if products they are
want content to be fun, relevant and quick.
looking for are not available; and consumers
And it’s got to be content that is worthwhile –
who don’t want to spend time exploring
information that’s rich and curated especially
substitutions and will leave for a competitor if
for them – in order to engage them.
they don’t find what they’re looking for.
MICHAEL WARD:
The Canadian consumer has
MEGHAN ROACH:
A recent brand health survey
never had so many choices within this evolving
that we conducted indicated that there are still
omnichannel environment. It’s never been
a number of people who shop only in stores.
easier for them to access the offering of
However, the number of consumers shopping
innovative new business models and different
both in-store and online has increased. What
therimagazine.com | 19
this means to me is Canadians do not want to be limited when they shop. They want to be able to shop with their favourite brands however, whenever and wherever they want within a seamless omnichannel experience. As a result of safety and security
LIVIA ZUFFERLI:
reasons, there was an accelerated shift by the consumer toward digital channels at the start of the pandemic. In conjunction, as a result of a number of different factors, we also saw a shift in what the Canadian consumer was valuing and buying. So, what and how people
97%
Digital investment The majority of Canadian retail executives (77%) expect revenue growth for their companies in 2022. And, nearly all of them plan to increase their digital investments in order to help mitigate risks and drive that growth. (Deloitte 2022 Canadian retail outlook)
have been buying over the past two years has changed. But, as health concerns related to the pandemic decrease, consumers are feeling
making the IKEA brand more accessible and
more comfortable returning to physical store
our experience more convenient to meet the
environments, which will revert their behaviour
evolving needs of the consumer.
back to more of a hybrid form of shopping. ROHIT THOSAR: MATT BOLIVAR:
Given the recent and continued
Throughout the pandemic
Walmart has maintained its focus on the
rise of e-commerce, in combination with an
consumer and their evolving shopping
ever-expanding retail ecosystem that offers
habits. Because of the shift toward online
a multitude of channels and modes by which
purchases, we enhanced our systems to be
consumers can shop with brands, the retail
able to adapt to these changing preferences.
operation has been forced to shift and pivot
We’ve also put a lot of effort into improving
in order to remain relevant and successful.
the digital experience for customers, including
How has the accelerated digitization of retail
functionality and ease of use, both for desktop
changed the way organizations operate in
as well as mobile. And, we’ve also continued
order to continue servicing the customer?
to develop our modes of product delivery and transfer in order to satisfy the convenience
MICHAEL WARD:
We went from having single-
needs of the consumer.
digit online sales to 30 per cent overnight as a result of the pandemic. The fundamental work
DREW GREEN:
for us initially was in designing and executing
before we opened any of our showrooms.
a fulfillment network that would allow us to
From the ground up, we’ve built a digital retail
serve that increased volume and to continue
experience that’s mirrored within our physical
growing in all the different channels. We also
locations. It allows our customers to easily
needed to build the digital infrastructure
switch between channels, which is key for our
that would enable this shift. In addition, we
business model. For us, especially in light of the
wanted to make sure that we focused more on
change and disruption that’s happened over
20 | Retail Insider the magazine | Issue One
We were an online business
the past couple of years, it’s going to be really
identifying our VIP customers and treating
important to continue innovating, making the
them as such with special rewards and offers.
experience we offer for the consumer better and more consistent.
MATT BOLIVAR:
Further considering the forcing
functions of digitization, an expanded retail MEGHAN ROACH:
At Roots, we are fortunate to
ecosystem and rapidly evolving consumer
have one pool of inventory that customers can
behaviour, the ways in which retailers
access in whatever way they want, whether
communicate and engage with their
physically in-store or through our online
audiences is transforming. In order to satisfy
channels. It allowed us to fulfill e-commerce
the communications needs of the consumer
orders from our stores during closures, and,
and remain at the fore of their thinking, where
we made the necessary investments to ensure
and in what ways are they best engaged and
we had the capabilities to support in-store or
introduced to a brand’s product and offering?
curbside pick-up. For me, it is always about understanding how the customer is shopping
LIVIA ZUFFERLI:
Over the last few years in
and in which environments they feel most
particular, there’s been a shift in Canadian
comfortable, and providing them with the
media dollars toward digital channels. However,
appropriate options to access our products.
it’s critical for Canadian retailers to consider their brands and leverage the insights of their
LIVIA ZUFFERLI:
Digital technologies pose
current and desired customers in order to
potentially enormous benefits in automating
understand where to place their media and
parts of the supply chain and utilizing data
how to position their messages and content.
in smarter ways to create greater accuracy
A channel mix and plan should be developed
around forecasting. If there are out-of-stock
based on knowing the audience and possessing
issues at a store, many consumers will seek
an awareness of their lifestyle needs.
out substitutes. Over the next 12 months or so, the industry will be paying a lot of focus on the supply chain, leveraging technologies even more in order to ensure a more seamless experience for consumers. SCOTT ARSENAULT:
E-commerce was not new
93%
Channels of choice
to Ren’s Pets. But, when you’re looking at
An overwhelming majority of Canadian
servicing the customer online, continuous
executives believe that the consumer
improvement is a must in order to satisfy
expects a seamless experience with
their evolving needs. With respect to email
brands, despite the channel they engage
communication with consumers, we’ve put a
on. A further 80 per cent believe that
lot of focus into providing something of greater
the consumer is increasingly seeking
substance and relevance to the consumer
experiences. (Deloitte 2022 Canadian
through increased personalization. In addition,
retail outlook)
we’ve spent time throughout the pandemic
therimagazine.com | 21
MEGHAN ROACH:
Consumers are looking to be
SCOTT ARSENAULT:
In the digital age, we’re finding
engaged in different ways across the various
that the best place to communicate with
digital channels. And they’re looking to build
our customers is through digital channels,
relationships with brands rather than simply
leveraging influencers and pet-approved
buy product from them. From our perspective,
programs that have an already established
leveraging digital channels is all about building
following to reach both existing and
a community and communicating with our
prospective customers of the brand. Showing
consumers through the development of
people the value of a product in a real-world
curated content that goes beyond our product.
example and setting, especially when it’s
It’s also about conveying the brand’s values
performed by an expert or specialist, can have
and messages around the things we stand for.
a profound impact on engagement.
DREW GREEN:
Diversification is critical with
ROHIT THOSAR:
When it comes to engaging with
respect to communication and engagement.
the Walmart consumer, it’s important to be
No retailer wants to rely on one channel or one
present on the channels where they’re spending
way in which to reach consumers. Spreading
their time. However, it’s becoming even
out media spend while leveraging data to
more important to understand exactly when
understand the value in that spend helps to
consumers are active on those channels and
inform decisions around communication and
when they have reached a point of need. When
the ways to engage customers most effectively
you’ve developed this understanding of the
and efficiently. And, developing meaningful,
customer, you can then find the right balance in
committed partnerships with the right
your communication to them, reaching them in
individuals and organizations is also key in
the right place at the right time.
helping to amplify your brands message.
22 | Retail Insider the magazine | Issue One
MICHAEL WARD:
For IKEA, engagement is all
about attraction, building an emotional connection and then activation. To do this most effectively, we make sure to focus on our offer of affordability and accessibility and messages of
The power of AR •
use of AR is prompting retailers
responsibility around leaving a positive impact
within the industry to explore its
on the planet, people and society. To create this
applications and ways it can help
engagement, we’re increasingly leveraging digital channels from web and social to peer-topeer community platforms as we continue to hone our communications and engage with our customers in the digital age. MATT BOLIVAR:
As we hopefully begin to exit
the pandemic and continue to approach a
enhance the customer experience. • •
a branded AR experience. •
experience they provide like never before. In your estimation, how can technologies like augmented reality help enhance and support customer engagement, both in-store
Nearly 3 in 4 consumers say they’re willing to pay more for a product that promises the total transparency that AR can provide.
•
Interacting with products that have AR experiences leads to a 94% higher
opportunity to set a new standard for service and differentiate themselves through the
Brands are 44% more likely to be considered by consumers if they have
an increasing desire for experiences. environment, presenting merchants with the
75% of Canada’s population will be frequent AR users by 2025.
‘modified normal’, Canadians are expressing This extends most notably into the retail
A rise in consumer adoption and
conversion rate. •
AR-guided purchases led to a 25% decrease in returns.
(Snap Consumer AR Canada Report 2021)
and online, and elevate the retail shopping experience to another level? MICHAEL WARD:
We’re currently exploring the
ways augmented reality technology can inform customer decisions or make them easier. We already have an augmented reality app called ‘IKEA Place’ that allows customers to upload pictures of rooms in their homes in order to see what different pieces of furniture might look like. It’s an incredible assistance and support for our customers in meeting their design needs. The most important thing to consider when implementing new technologies is whether or not they’re going to complement your offering with something new and useful.
therimagazine.com | 23
MEGHAN ROACH:
Augmented reality will soon start
ROHIT THOSAR:
If you remove all of the likes
to play an important role in helping certain
and dislikes preferences from the in-store
brands enhance the service and experience
and online shopping experiences, one of the
that they provide for consumers. Importantly,
biggest differentiators between the two is the
however, its use has to link seamlessly with
ability to see a product in front of your eyes.
our physical stores as well as our e-commerce
Augmented reality helps retailers and brands
platform and digital channels. It can help
close that gap quite a bit. It’s not applicable to
brands offer an experiential layer and aid
all categories. However, for others it presents
consumers in virtually trying on products.
the potential to seamlessly fit into the
There are a lot of potential applications that will
shopping journey, adding a unique layer to the
continue to become more relevant as we move
customer experience.
forward. LIVIA ZUFFERLI: DREW GREEN:
There are so many amazing
In order for brands to begin
exploring and testing the use of augmented
opportunities available to the retailers that
reality and other immersive technologies,
have the resources to experiment with
they really need to possess a crystallized
technologies. We’re always pushing ourselves
understanding of the brand and what it stands
in order to understand where and in what
for. And, above all, the technology needs to help
way different technologies would help our
retailers provide customers with an experience
customer and enhance their experience with
and an extension of the brand’s offering that’s
us. But we’re very cognizant of the fact that in
authentic while creating a greater sense of
order for us to leverage a certain technology,
accessibility and deepening relationships with
it will need to be extremely effective and help
customers that go far beyond the transaction.
to build on the personalized service that we already provide to our customers.
There are a couple key takeaways from this dynamic and engaging discussion and the
SCOTT ARSENAULT:
It’s been a really difficult year
oft-poignant insights provided by the panel
for most retailers. So, I think we might see a bit
of leaders. It’s been a difficult last couple of
of a pause concerning the implementation of
years for the industry – a period of time that’s
this kind of technology as much of the industry
challenged the acumen and resolve of many.
catches its breath. Having said that, however,
However, it’s also been a period to rethink,
there is obviously big potential in the use of
recalibrate and reimagine retail and to explore
augmented reality. For pet owners, diet and
how the use of innovative technologies can
the health of their pets is most important, with
help transform the shopping experience to
obesity their number one concern. We’ve been
meet the evolving needs and preferences
wondering how we might be able to use this
of a changed consumer. And, based on this
technology in order to take pet owners on a
conversation, it seems that the next year-and-
journey by having them upload a picture of
a-half or so is going to be extremely significant
their pet and then helping them visualize the
for the industry and a truly exciting time for
effects of a changed diet.
retailers and consumers in the country.
24 | Retail Insider the magazine | Issue One
On average, over 250 million Snapchatters engage with augmented reality daily.
Meet the Snapchat Generation. Learn more at forbusiness.snapchat.com Snap Inc. internal data Q1 2022.
therimagazine.com | 25
The expanding Canadian retail landscape Retail Insider Media Ltd. is pleased to introduce this informative online portal containing all of the latest news and announcements concerning international retailers entering Canada and homegrown businesses expanding their operations.
Click here to find out more
26 | Retail Insider the magazine | Issue One
therimagazine.com | 27
FEATURE // PLANNING AND STRATEGY
At the helm of inflation, supply chains, and greed Retailers across the country plan for the worst amid continued disruption and disarray // By George Minakakis Supply chains have always been the lifeline for many retail businesses. They have traditionally operated quietly, behind the scenes, making everything look seamless when it comes to filling stores and delivering products to consumers who might have ordered online. However, they are no longer hidden. And, no pun intended, they are often the vessel that guides the performance of merchants and their businesses. Today, retail businesses everywhere are bracing themselves to contend with any future disruptions that might hinder their ability to keep their physical and virtual doors open. As a result, the most crucial conversations in retail executive ranks and board meetings are about getting high-value priority merchandise into distribution centres, stores, and ultimately the hands of consumers. The second most pressing item is understanding how to compete in an inflationary marketplace. Both issues are related and have a critical impact on future operations. There is, unfortunately, a great deal that is out of retailers’ control. Cumulatively, the issues
28 | Retail Insider the magazine | Issue One
therimagazine.com | 29
stem from locating a container, securing space
of higher consumer demand per se, rather
on a cargo ship, relying on expeditious ports,
the results of a backlog of demand. And,
and finding a transport company to deliver the
that demand costs a lot more than it did two
goods. Today, with our limited capacity, either
years ago to transport to the western world.
by structure or design, moving goods and
How much more? In January 2021, the cost to
product is slow and costly. And, if that doesn’t
ship a forty-foot container was $4,317 USD. In
complicate things enough, virus-related
March of 2022, the price was $15,834. In 2019,
shutdowns in China, long queues of containers
an average container cost $1,473, according
waiting to be shipped, and the Russian attack
to Freightos Data, for all routes. The largest
on Ukraine add even more complexity. Goods
shipping container manufacturing comes from
destined for the EU, usually sent by train from
China, producing 85 per cent of all containers.
China through Russia, have now been diverted
Around 2010, China began to cut back
to ocean transport, adding more capacity and
production shifts and the volume of container
price pressures on the system. And, of course,
units made. The seven largest shipping
the dockworkers are talking about potential
container companies control 78 per cent of
strikes in the U.S.
all ocean transportation, and some belong to alliances. The problem inherent is that there
We all know that the cost of supply chains
are not enough large shipping companies
is driving inflation. However, it is not a result
to offer competition, and the alliances are creating bidding wars for space. In addition, as of late, shipping companies have begun using smaller ships in hopes of disembarking cargo faster. However, smaller
The cost to ship a forty-foot container
$15,834
vessels do not solve the issue entirely because many of them are stuck at sea waiting for their turns. Moreover, they are charging customers for that wait time. Additional inflation!
What are governments doing?
(USD)
Nevertheless, few, if any, regulatory bodies have oversight of this matter. Yet, there is plenty of political finger-pointing concerning who owns the cause for inflation, ultimately
$4,317
misleading the public. Governments, and even the World Trade Organization, have no
$1,473
oversight regarding price negotiations. Keep in mind that there are a lot of brokers in the middle of this also making money. Ignoring
During 2019
January 2021
March 2022
30 | Retail Insider the magazine | Issue One
the root cause and hoping that monetary policy is the remedy will not make the problem
go away. And these sanctions on Russia
Quite the contrary - they may be trading
have supply chains scrambling on all related
down in quality and or quantity. However,
commodities. Therefore, the potential for more
even in food categories, prices accelerate and
significant delays and higher costs is inevitable
packaging or portions are shrinking. Not unlike
and, in fact, already happening. Catching up
the U.S., Canada remains a primary producer
to a backlog will not be enough to reset the
of milk and meat products. The problem is
shipping costs.
consolidation in many sectors and not enough competition, which allows for higher prices.
Monetary policies are playing a part in creating new problems, using old traditional
In March, we conducted a poll (1,459 responses)
methods to try and bring inflation in line. While
asking where most consumers will make
economists point to supply and demand, or
changes to offset inflation. The largest group
inelasticity in conventional transportation of
(41.9%) plans to cut back on everything and
goods (ship and container availability), retail
save. The next largest group (24.8%) plan to cut
prices will remain higher. They will climb
back on going out, 15 per cent plan to spend
until lower consumer demand puts enough
less on vacations, and 18.3 per cent plan to
pressure on the system to lower pricing.
make no changes. It is a clear message that
However, consumers are not spending more
most consumers are very aware of the current
money; they’re spending it differently. Instead
financial challenges faced, as well as those that
of services and vacations, they’re buying
may be on the horizon.
more tangible goods. The retail revenue increases are supplier and transportation-
What does this do to retailers?
driven inflation. So, what does overall retail
Having saleable and current merchandise in
transaction growth look like? That is not a
all cases is necessary to keep the doors open.
number readily available.
However, the higher costs of receiving that product cannot be absorbed, resulting in a
Although, for January and February of 2022,
pricing challenge for retailers. The question
Mastercard reported that Canadian retail
internally for most merchants is around the
spending, excluding auto sales, was up
amount of margin that should be left on the
4.3 per cent and 6.2 per cent, respectively,
table in order to keep driving traffic. And, the
and inflation (consumer price index) was
answer depends on the financial tolerance of
5.1 per cent and 5.7 per cent for the same
each business. Consumers will be looking for
periods. Comparatively, inflation for the same
the highest value proposition with the best
timeframe in 2021 was about 1 per cent and 1.1
quality at the best price that they can afford.
per cent. That means that overall transactions were flat over the previous year, and perhaps
Furthermore, as consumers browse more
even less in some categories.
online to shop, no one should wonder whether
What do consumers think?
e-commerce will continue to increase its retail share. It is now a way of Canadian life. We
Consumers are not in the aisles of store shops
expect supply chain issues to continue well
bidding up the price of apparel and food.
into 2023, combined with higher prices. This
therimagazine.com | 31
timeframe will bring retailers through four
that pricing is below inflation, which means
years of consumer behavioural changes which
finding ways to reduce costs, especially in a
will be permanent, with speed, convenience,
world where margins are everything. A little
and value as the key drivers. This is not to say
more than a few decades ago, during our
that stores do not matter, nor that consumers
last inflationary periods, retailing was less
are not looking for experiences. However,
complicated. There was more local sourcing.
customer experiences during inflationary
E-commerce and digital marketing were just
periods become more about customer
ideas. And the metaverse was simply a phrase
expectations around continual improvements
used in science fiction novels. Nevertheless,
concerning service and product innovation.
the increased cost of goods and labour drove
How does a retailer deliver that effectively with
production to Asia. Today, if transportation costs
inflation eroding consumer spending power
don’t come down, retailers will have no choice
and the retail operator’s profits?
but to re-shore locally within North America.
objectives. The first is to improve their ability
Expect the unexpected and plan for the improbable
to compete. Those who control their supply
In fact, it’s essential for retailers to start
chains and have invested in technology with
thinking about re-shoring or near-shoring
strong digital capabilities will dominate over
production and sourcing. If the industry
the next two years. The second is to ensure
must pay higher prices for goods, they might
In the short term, retailers have two
32 | Retail Insider the magazine | Issue One
as well say ‘made at home’ or ‘near home’.
However, there is no justification for such
These choices are good on two levels. One,
high costs. The costs of delivering these
it strengthens the western economies and
goods are solely driven by opportunism and
creates jobs that have evaporated to foreign
unforgivable greed. There is so little end-to-
nations for too long. And, it also stems funding
end oversight and regulation in the current
that contributes toward the growth of military
process that it can no longer be relied upon.
spending for authoritarian regimes.
And, given the current war in Ukraine and the host of sanctions on Russia, every retailer
There are also other issues like the fact that
must recognize that our supply chains are
the western world is progressively demanding
only one geopolitical issue in Asia away from
greater environmental and social governance
being crushed entirely, leaving the western
as a society. This may only be possible by
world scrambling to normalize itself. In light of
producing goods closer to home. And, it
these things, and in response to them, it’s in
will also allow for more trusted control -
the best interest of every business operating
something that is not easily found in parts
in North America to rethink their supply
of Asia where there is less governance and
chains and implement new sources closer to
trusted oversight.
home that will result in less volatility, greater control over the processes involved and, in
We don’t need to argue that there is a
the end, provide a platform for further retail
capacity issue in transportation goods.
growth and success.
MOTOROLA CURVE WI-FI ENHANCED BUSINESS RADIO
THE VALUE OF DATA The Motorola Curve is the first Business Radio to integrate radio based push-to-talk LMR communication with Wi-Fi powered cloud connectivity. With an abundance of Wi-Fi powered voice assistance features that operate over the cloud, management can access large quantities of user data through the Curve radio portal. This allows management to make better judgments based on real data and hard facts rather than guesswork, resulting in increased profitability, higher customer satisfaction and a more fantastic store overall.
KEY FEATURES
Wi-Fi/LMR Voice Capabilities Assistance
Group Call
Ask us how we can help you equip your workforce with these essential retail communication devices!
Voice Assisted Private Call Log-in/Log-out
Voicemail
E info@LenbrookCanadaSolutions.com W www.LenbrookCanadaSolutions.com
Follow Us! VALUE ADDED DISTRIBUTOR
therimagazine.com | 33
PARTNER FEATURE //
Solving first, middle and last mile distribution challenges PenguinPickUp’s comprehensive suite of solutions helping retailers save time and money // By Sean Tarry
PenguinPickUp changing the distribution game through service innovation.
34 | Retail Insider the magazine | Issue One
During these times of disruption and
packages and offers retailers a safe and reliable
uncertainty, merchants across the country are
means to warehouse their product. With more
working more feverishly than ever in an
than 30 strategically located PickUp Points
attempt to find greater efficiencies within their
across British Columbia, Ontario and Quebec,
operations while reducing time and cost. And,
the company’s rapid growth is attributable
given the recent accelerated digitization of the
to the innovative suite of solutions that it has
industry – one that’s precipitated a sharp rise
developed for both consumers and retailers. It’s
in e-commerce activity as a significant number
a much-needed solution for retailers, allowing
of consumers continue to adopt online
them to offer consumers a convenient and safe
channels and incorporate them into their
way to pick up their packages. For consumers,
shopping journey and experience - it comes as
it’s as simple as signing up for the service and
no surprise to find many looking at their own
directing your online orders to the PickUp
supply chains to find these efficiencies and
point of your choice. They are notified when
savings. And, according to Patrick Jobidon,
their package arrives and can pick it up by
President at PenguinPickUp, the brands that
presenting their personal PenguinPickUp code
are able to navigate this new digital landscape
at their convenience.
and tighten their modes of distribution and fulfillment will stand themselves apart from
“Our model saves retailers time and reduces
competitors.
their costs,” says Brad Baker, PenguinPickUp’s Vice-President of Operations. “It enables
“The retailers that are currently winning
them to expand their service options to allow
and providing a best-in-class customer
customers to have their online orders delivered
experience are those who have got their
to their home, picked up in-store or picked
distribution right,” Jobidon asserts. “COVID-19
up at a convenient PenguinPickUp location
has led to a surge in e-commerce and an
near where they work and live. Our associates
accelerated digital transformation that is
are focused on providing an exceptional
quickly altering distribution strategies. There
customer experience, by delivering on our
is a heightened need for retailers to create
service standards of Focused, Friendly and
a digital experience that is fast, convenient,
Clean always. PenguinPickUp customers and
and efficient, particularly related to product
partners can trust that their goods will be kept
delivery and transfer. As a result, solving for the
safe and secure, freeing them of any concerns
expensive and complex last mile of distribution
related to ‘porch pirates’ or issues with their
is more critical now than ever before to
condo or apartment building not receiving and
satisfying evolving consumer preferences and
holding packages. Most of our locations also
behaviours.”
provide temperature-controlled storage.”
Saving time and money Founded in 2014 to help the industry
Solving first, middle and last mile challenges
address increases in e-commerce orders,
Baker says uniting people with their things is
PenguinPickUp provides consumers with an
kind of PenguinPickUp’s thing. And because
incredibly convenient way to receive their
of their comprehensive suite of services and
therimagazine.com | 35
solutions, it’s a thing that the company seems to be doing extremely well. Not only are they providing a world-class pickup service for customers, but they’re also helping to reduce retailers’ last mile distribution costs by up to 85 per cent. However, thanks to the company’s innovative model, PenguinPickUp’s services solve for much more than just the last mile alone. Last year the company developed PenguinPickUp2U, as a transport and
PenguinPickUp offers convenient locations
sortation service. “PenguinPickUp2U has proven to be an
having less trucks on the road, making
incredibly successful and in demand solution.
fewer stops,” says Baker. “Further, we have
The operation is powered by a great team
partnered with cities like Toronto on programs
of associates and a reliable fleet of vehicles,”
to introduce more cargo e-bikes and micro-
Baker says. “The service allows us to move
mobility solutions to the city. Our zero-
product reliably and quickly from where our
emission e-bikes offer fast and convenient
retailers are – whether at their distribution
delivery, and they make our cities more livable
centres or store locations - and ensure that it’s
by reducing congestion.”
ready for their customer to pick up on-time at one of our locations. We can even deliver to the
Taking care of returns
customers home on one of our state-of-the-art
PenguinPickUp also offers services to address
E-Cargo bikes. Our service is truly white glove,
the complexity of online retail returns; one
end-to-end.”
of the main issues retailers have faced
Environmentally-sustainable
throughout the pandemic as a result of the spike in e-commerce sales.
The very nature of the way the PenguinPickUp2U fleet operates was
“Our stores are well-located in urban markets,
deliberately designed to help reduce the
allowing us to be a convenient and simple
negative impact of single package delivery on
drop off point for customers wishing to make
the environment. Environmental responsibility
a return,” explains Baker. “We sort, aggregate,
is a key priority for the company. They are
and move those returns to the retailer’s desired
mindful of the industry’s footprint and
location. This saves the retailer money and
innovate to introduce more environmentally-
reduces friction for their customer. We recognize
conscious ways to transfer product between
the growing challenge of online returns and
retailers and consumers.
reverse logistics in the increasingly digital market and have implemented programs to help ease
“Our model itself helps reduce carbon by
36 | Retail Insider the magazine | Issue One
that pain point for our partners.”
Continued growth and expansion
mile challenges. Our growth strategy looking
PenguinPickUp has quickly become one
forward is just as ambitious. In fact, this year
of the most trusted and reliable partners
alone, we will be opening an average of two
for Canadian retailers. And, according to
new locations per month, as we expand to be
Jobidon, they have no intention of slowing the
where our partners and consumers want us to
company’s innovation and growth trajectory.
service their needs and ‘unite people with their things’.”
“We’ve grown exponentially over the last few years, particularly throughout the pandemic,
For more information about how
to help bridge market demand and the
PenguinPickUp can help your business save
surge in e-commerce. We’ve rapidly grown
time and money by solving some of your
our network and have accelerated our key
distribution challenges, visit
initiatives, allowing us to become a true end-
www.penguinpickup.com/Home/Retailers or
to-end provider, helping retailers solve some
email info@penguinpickup.com
of their most pressing first, middle and last
Providing risk management and loss prevention advisory services to detect, select and correct matters affecting your bottom line...because we know – Bottom Line Matters! For guidance, visit bottomlinematters.ca or call 905-821-4651
therimagazine.com | 37
FEATURE // SUPPLY CHAIN DISRUPTION
Cauldron of chaos As more negative forces are added to the mix, the disruption and disturbance around the retail supply chain continues to grow // By Mario Toneguzzi
Numerous headwinds have collided in recent
Founder of RetailAID.ca, describes the supply
years creating a perfect storm within the global
chain network as “chaotic.” These ‘random
supply chain network, wreaking havoc and
events’ have been compressed and have
creating chaos for many retailers as they try to
accelerated, creating a situation that he refers
navigate through the tempest.
to as a “cauldron of chaos.”
Over the course of the past two years, the
“We have not only lived through two years
global supply chain has been challenged,
of restrictions, which is one whole chunk of
resulting in a damaging impact on Canadian
disruption on its own,” he says. “But there’s
retailers. A pandemic, rail blockades, labour
also been a lot of other events that have
issues at ports, labour shortages, flooding in
been added in the pot. Everything has come
British Columbia, trucker protests, blockage in
together in the last two years, leaving retailers
the Suez Canal, and now a war in Ukraine, have
with the unenviable task of sticking with
all contributed to a strain that’s been placed
what they know has worked previously, and
on the supply network, disrupting an effective
attempting to force things to work in the same
and consistent flow of goods from their source
way today. But they need to rethink this whole
to a consumer who has increasingly turned to
problem. You can’t just carry on as is.”
e-commerce to meet their shopping needs and desires.
Sustained chaos Liza Amlani, Principal and Founder of the
Gary Newbury, retail supply chain expert and
38 | Retail Insider the magazine | Issue One
Retail Strategy Group, says the chaos and
disruption felt throughout 2020 and 2021 has
shortages, supply chain challenges and
been devastating, and is certainly not over.
higher input costs are big problems. And, if the industry doesn’t address them, Canada’s
“If retailers are saying otherwise, it means
economy will suffer.
that they have actually gone through a digital transformation,” she suggests. “They’ve had to
“Everything around the retail supply chain is
adapt and work through changing some of the
incredibly uncertain at the moment,” he says.
ways they do things within the entire supply
“The entire supply chain for manufacturers
chain, from sourcing and merchandising to
and exporters, whether it’s companies that are
planning and go-to-market strategies. But I
bringing finished goods back and forth across
don’t believe that retailers have actually done
the border or companies trying to get parts or
a complete overhaul. The supply chain chaos
ingredients for packaging, is really uncertain.
that we’ve been experiencing is not over by
And it’s having a real effect on companies,
any means.”
which usually manifests in delays. In some cases, it’s financial and hits the bottom line.
Dennis Darby, President and CEO of Canadian
And in many instances, financial hits are
Manufacturers & Exporters (CME), says that
passed along to the consumer. It’s probably
demand for manufactured goods is strong,
not exactly what we expected to be talking
however, the industry is increasingly unable
about two years into the pandemic. And it
to keep up with it, let alone take advantage
looks like it’s going to last for at least another
of the current boom. In his estimation, labour
year or two.”
therimagazine.com | 39
Darby says that although many of the supply
with a plan and the development of a strategy
chain disruptions are global in nature, the
meant to meet the challenges and mitigate
problem still requires significant government
the risks. It’s resulting in a number of different
action such as increasing the inflow of
tactics being deployed by retailers, including
temporary foreign workers and immigrants
the sourcing of goods at a more local level,
to ease labour shortages, providing financial
investing in inventory to have on hand should
supports to help scale-up domestic
issues persist and the embracing of technology
manufacturing, and increasing investments in
as a means to create efficiencies and reduce
transportation infrastructure.
costs throughout their supply chains.
Crisis management
Newbury says companies need to stand
George Minakakis, Principal of advisory firm
back and think about what they are trying
Inception Retail Group Inc., and author of The
to achieve. From a planning perspective,
New Bricks & Mortar Future Proofing Retail,
much more current research is required in
describes the supply chain as an individual’s
order to understand what customers want.
heart pumping blood. When someone has
Traditionally, he suggests, many merchants
cholesterol, blood flow slows down and it
have been resistant to the implementation
creates problems in the body. This is exactly
of technology in their domain, adding that
what’s been happening for retail. “It’s been a nightmare for a lot of retailers,” he says. “Smaller retailers, in particular, have struggled. Clearly what we’ve seen is the result of many retailers that didn’t have crisis management mitigation. They didn’t really know what was in their control. They didn’t understand what risks they could face, how real the risks were, how likely they were to happen, and what the potential impact might be. Those things were not in place, even for some of the larger players within the industry. But I’m sure they are now. If they aren’t, they should be. They need to be assessing and mitigating risks on a continual basis.” Crisis management is a critical layer for any retailer looking to be successful. And, as a result of the disruption and challenges faced over the course of the past two years, many companies are now talking about how to solve some of those internal issues, starting
40 | Retail Insider the magazine | Issue One
“For sourcing, we’ve tended to go to the Far East. It’s cheap. It has been quite reliable. The quality has raised. However, the pandemic’s disrupted that. And now the war, along with a heightened understanding of geopolitical risks, has raised in the minds of some retailers the fact that they need to be thinking about sourcing in a different way.” – Gary Newbury
they’ve been used to reading stories and going to a handful of trade shows in an attempt to understand what customers need.
Reassessing sourcing
A recent CME survey found:
“There’s some pressure to try and implement tools around artificial intelligence into merchandising in an effort to take some of the mystery out of it,” he says. “And, of course,
8 out of 10 manufacturers facing supply
as we entered the pandemic, we couldn’t
chain challenges say they have been
rely on last year’s information because it was
forced to increase prices and delay
irrelevant. So, it played very much back to the
fulfilling customer orders;
world of wonder of merchandisers where they do it all from the seat of their pants.” He goes on to explain that retailers also have to look at sourcing differently. Geopolitical
Only 18 percent of manufacturers plan
risks, such as the war in Ukraine, can impact
on sourcing more of their inputs to
the supply chain quite dramatically and quite
Canada in response to these disruptions.
unexpectedly. If they’re heavily invested in
When asked why, 44 per cent cited the
China, they need to be aware of what could
fact that there are no Canadian suppliers
happen there. What happens if the border with
of their critical inputs;
the U.S. is closed again? What happens to the retail supply chain, then? How do they get the goods they need for their business? Retailers may not have understood the geopolitical risk to their businesses in the past, says Newbury,
Just 28 per cent of manufacturers said
suggesting that they’re clearly paying more
they are likely or very likely to relocate
attention now.
or scale-up production in Canada to mitigate supply chain bottlenecks, with
“For sourcing, we’ve tended to go to the Far
the availability and cost of labour as the
East,” he says. “It’s cheap. It has been quite
biggest hurdles to do so;
reliable. The quality has raised. However, the pandemic’s disrupted that. And now the war, along with a heightened understanding of geopolitical risks, has raised in the minds of some retailers the fact that they need to be
Most manufacturers predict that these
thinking about sourcing in a different way.
disruptions will not end this year, but
And many of the options around sourcing
rather some time in 2023 or even as late
are obviously re-shoring it, bringing it back to
as 2024.
Canada.”
therimagazine.com | 41
Boots on the ground
planning and inventory management solutions
However, near-shoring, which is closer to
over the next 12 months or so.
home, such as south of the border or even further south, requires assessment as well to
As it continues to evolve, technology will only
make sure that retailers are not exposed to
bring with it new and efficient ways to facilitate
any one market. In fact, Minakakis believes
the smooth operation of the supply chain
that companies who continue to source from
network, including the use of Radio Frequency
overseas will need to have their ears and boots
Identification which allows retailers to scan
on the ground in order to properly understand
a whole skid of items in seconds. However,
what is happening in those regions.
Minakakis suggests that blockchain has now become one of the more important recent
“If you don’t have part of your management
innovations, and that its implementation
team with boots on the ground in the markets
can be part of every aspect of the supply
that you’re getting supplies from, you’re living
chain, equipping retailers with information
in darkness because you’re trusting that the
concerning the origin and makeup of materials
information you’re receiving from someone
and products. It’s information that he says
else from afar is accurate and trustworthy,” he
can be tracked, allowing them to create
says. “It’s can become a real problem.”
sustainability, quality and trust inside the supply chain.
And he adds that retailers need to have multiple markets that they can rely on so if one
In conjunction with blockchain is the increasing
fails another one can fill the void.
use of artificial intelligence to better manage
“It’s intricate work,” he asserts. “You’re
systems and information, often resulting in
essentially rebuilding your entire supply
better understanding of customers and the
chain as backup. That is part of the mitigation
products being sold in individual stores. Armed
process that’s needed, allowing retailers to at
with this kind of information, says Minakakis,
least minimize their dependency on any one
retailers are supported in making smarter
area.”
decisions that will help their bottom line, reduce
The power of technology
human error and accidents.
Technology has also become critically
“The technology is there to speed up
important to the health of supply chain
productivity and move product in the direction
networks, providing new ways to plan
where it’s needed most so it can be used and
more effectively and control what’s going
sold,” says Minakakis. “As a CEO, I want my
on throughout the entire process. Many of
shelves full. I want to make sure that what
today’s innovations possess the power to
we strategized, what we designed, what we
help companies reduce costs and be more
manufactured and planned to distribute is
productive. And because of all the disruptions
going to be at the stores when we say it’s
and calamity caused over the last two years,
going to be at the stores. And I need all of this
some believe that much more focus and
technology to make that happen.”
resources will be invested in merchandising,
42 | Retail Insider the magazine | Issue One
However, one of the challenges inherent
set to become more critical going forward.
within the traditional retail supply chain,
In fact, some experts have suggested that
says Amlani, is the silos that exist and cross-
perhaps there needs to be a cost to consumers
functional teams that have been created
associated with returns to reduce waste.
within companies that are simply not working together. Everything, she says, impacts the
“What’s happening now is there’s a huge
product journey. And if retailers can’t get the
spotlight on returns,” says Amlani. “Once the
products, or know how they’re made, or who is
public started to question and find out details
making them, that’s a big problem.
related to returns, it enhanced the accountability
Solving returns
of retailers to tackle some of the issues. There’s a lot of room for retailers to do a better job. And,
Although most might think of the supply
they have to now because the issue of returns,
chain as a series of links or connections that
as well as the ways retailers choose to deal with
help retailers move product from origin all the
those issues, are in the spotlight. As a result,
way into the hands of consumers, the retail
a lot of businesses are leveraging technology
supply chain doesn’t end there. Retailers must
that can make it easier for customers to return
also consider the return of goods and create
goods, helping retailers and brands keep costs
solutions that will allow them to effectively
down for returns. In the end, understanding why
and efficiently accept returns, addressing
customers are returning is part of the solution to
concerns around sustainability that are only
making better buying decisions.”
therimagazine.com | 43
FEATURE // HUMAN RESOURCES
The great renegotiation Mental health and wellness issues are coming into sharper focus, becoming the new bargaining chips in retail staffing // By Jana Manolakos
Next generation workers are causing a stir,
neglected for a very long time,” explains retail
raising their fists against the stigma of mental
staffing expert, Suzanne Sears, President of
illness in the retail workplace — an industry
Luxury Careers Canada, a Toronto-based, high-
hard hit by stress, anxiety and depression
end brand recruitment agency.
during the pandemic. With Canadian retailers struggling to attract talent for their brands,
Escalating talent shortage
employees — both full- and part-time — are
The mass exodus of 4.5 million Americans from
cashing in their bargaining chips for improved
their jobs last year as part of what is now called
mental health programs, and it’s leading to
the ‘Great Resignation’, sounded a warning bell
a new staff function: the workplace mental
for Canadian retailers. Although Canada’s labour
health powerbroker.
force participation rate is holding steady at 65.3 per cent, virtually the same as it was before the
“People no longer want to be treated like a
pandemic, retailers, especially in small- and
commodity. COVID has really brought this
medium-sized businesses are finding it hard to
to the forefront as something that’s been
fill vacancies. Sears believes it’s in part because
44 | Retail Insider the magazine | Issue One
business owners have failed to stay current with
educating staff about mental health stigma
employee demands. Competitive salaries are
and the resources available to help them.”
simply not enough anymore. The commission introduced the National According to Sears, employees are looking
Standard of Canada for Psychological Health
for work-life balance, flexibility, certainty of
and Safety in the Workplace in 2013 and
hours worked and support for wellbeing - all
offers ample resources for retailers and other
factors in mental health. And if they don’t
businesses to tap into.
get it, they’re leaving - even if they don’t have another job lined up.
Bottom-line burden According to the Canadian Association of
The cost of replacing a vacancy is four
Mental Health, the economic burden of
times the salary of that position, adds Sears.
mental illness in Canada is significant, and
“Somebody else has to shoulder more
is estimated to be approximately $51 billion
workloads, customer service goes down,
each year, with $6.3 billion resulting from lost
productivity and morale goes down.”
productivity. By 2041, the cumulative cost of poor mental health to the Canadian economy
Even before the pandemic, employees were
will exceed $2.5 trillion. It’s a number that’s
beginning to question whether the traditional
keeping CEOs up at night. In fact, among 1,500
40-hour work week held true value for them,
business leaders surveyed for its recent Risk
she says. “On average, tenure has gone from
Insights Report, insurance giant Aviva, noted
four years down to two. And pretty soon it
that employee mental wellness ranked third as
may be less than that. The real problem is that
a key concern for company CEOs, next to the
there isn’t a great value proposition. They have
pandemic and cyber threats.
to throw away the old playbook and come up with a new proposition for retail,” she says.
Walmart Inc. Chief Executive Officer Doug McMillon says, “To fulfill our potential, we
It means employers must look at things
must be obsessed with supporting our people
through an employee-centric lens, say the
so they can succeed.” Not surprisingly, the
experts. At the Mental Health Commission of
retail giant was selected as one of Greater
Canada, Liz Horvath, its Manager of Workplace
Toronto’s top employers last December.
Mental Health, explains, “Employees are
With 42,000 full-time and 67,000 part-time
looking for organizations where they have
employees, workplace mental health is a
some stability, some support and respect
big deal at Walmart Canada. The company’s
- where respectful workplace policies and
range of programs focus on physical health,
procedures are in place and being followed,
financial health, development and career
with support and protection for staff dealing
growth and community and environmental
with customers, with staff trained in anti-
impact through such supports as an Employee
discrimination harassment and violence and
and Family Assistance Plan, 24/7 access to a
equipped to respond appropriately when these
mental health practitioner, and even a licensed
things may be happening. In addition to that,
financial retirement advisor. Jamilah Zuzarte,
therimagazine.com | 45
Walmart Canada’s Senior Manager, Associate
HR professionals can play a pivotal role in
Wellbeing, explains the benefits of ensuring
normalizing these conversations, says Tierney.
such initiatives are in place. “Retailers and other businesses have got to do “Creating a culture of wellbeing that
a better job at helping to remove the stigma
supports mental health requires the support
of mental health,” she says. “If somebody is
of our entire organization as we prioritize
experiencing a mental health concern or issue,
psychological health and safety for our
they need to feel safe to talk about it. And they
associates,” she says. “Leaders on our People
need to feel safe to access the resources and to
team are working to build awareness,
get the support that they need.”
implement training sessions and create support systems to ensure Walmart Canada is
However, this isn’t to suggest, adds Tierney, that
a safe and inclusive organization.”
human resources leaders will be required to
Focus on people
have doctorates in psychology going forward.
For Kris Tierney, Vice President of HR and
“There’s an inherent interest in human
Learning at the 24,000-member Human
behaviour and human psychology within
Resource Professionals Association, the
many HR professionals, but they do need to
pandemic ignited a renewed focus on workers.
know their limits,” she says. “They need to understand how to make available the right
“Organizations historically have looked at HR as
type of expertise or resources as support
an administrative role,” she asserts. “With the
systems for employees. It’s the same as if an
emotional impact of the pandemic on workers
employee had a physical health issue. The
over the last two years, organizational leaders
HR professional wouldn’t try to be an MD or
have recognized that people-related issues and
diagnose what might be wrong.”
mental health have become a priority. They’ve gone to the human experts in the organization.
Creating a culture of support
HR professionals have always had an aptitude
Kristy Cork, Workplace Mental Health
and an interest in this space. But what’s
consultant at Workplace Safety & Prevention
happened and what shifted is the organizational
Services, believes a solution lies in improved
demand for HR to really refocus and double
mental health literacy and creating a “help-
down on these programs moving forward.”
seeking” culture.
At least one in five Canadians will suffer from
“This type of workplace culture can only
mental illness in their lifetimes, but most won’t
be achieved when leaders listen without
seek treatment because of stigma around
judgement, demonstrate care and concern
the disease. According to workplace health
for their employees and offer accommodation
consultancy, LifeWorks, more than two in five
for physical and psychosocial disabilities,” she
Canadians believe their career options would
advises. “In any workplace, including retail
be limited if they had a mental health issue
companies, commitment should always start
that their workplace was aware of. That’s where
with the highest levels of leadership. Their
46 | Retail Insider the magazine | Issue One
demonstration through psychologically safe leadership sets the tone for others to follow.” Fighting the stigma led George Cope, former CEO of Bell Media, to launch the Bell ‘Let’s Talk’ campaign more than a decade ago.. Today, employees at Bell Media have access to tools, resources and training that supports their mental health and wellbeing. “Earlier this year, we announced unlimited mental health coverage for team members and their eligible family members,” says Bell Media spokesperson Caroline Audet. “Since the launch of Bell ‘Let’s Talk’ in 2010, more than 18,000 Bell employees and 13,000 Bell leaders have completed mental health training.”
So, what’s the return on investment? Bell’s initiatives to improve mental health awareness, training and benefits reduced short-term disability claims related to mental health by over 20 per cent, and reduced relapse and recurrence by more than 50 per cent. At Walmart Canada, the company recently started tracking its investment in employee mental health supports. Staff feedback and engagement surveys have led the company to add inclusive counselling and to pilot on-site, face-toface counselling - all of which have been positively received by staff.
Six reliable resources for retailers interested in creating a safe, stigmafree workplace: Mentalhealthcommission.ca has developed a toolkit for retail managers that went live May 1, 2022 on the Mental Health Commission of Canada website: www.mentalhealthcommission. ca which currently offers a wealth of resources and kits, like information on the National Standard, anti-stigma training, practices, suicide prevention in the workplace, flexible work-life, how to help someone in mental distress, a guide for post-secondary school students and a practical toolkit to help employers build an inclusive workforce. Wellnesstogether.ca offers services that range from basic wellness information, to one-on-one sessions with a counsellor and participation within a community of support. Workplacestrategiesformentalhealth.com runs workshops for HR, health, safety or wellness professionals, and offers other useful services. Connexontario.ca has round the clock access to information for mental health and addictions services and recently launched a texting service. Thinkmentalhealth.ca is developed for business owners by Ontario’s health and safety system partners, to provide informative and actionable mental health resources to help create a psychologically safe and healthy workplace. WSPS.ca offers a wide range of programs and services for a safer working environment in Ontario.
Anthony Viel, CEO, Deloitte Canada,
therimagazine.com | 47
believes there’s both an economic and moral
double—valued at $2.18 for every dollar spent.
imperative for Canadian employers to take
According to LifeWorks, improved mental
action on their employee’s mental wellbeing,
health scores mean greater productivity - a
recognizing that the cost to the Canadian
difference of 41 workdays per year.
economy of poor mental health in workplaces is estimated to be $50 billion annually.
“Workplaces can expect to see a decrease in absenteeism, turnover, quality-related issues,
“Organizations committed to delivering and
conflict and presenteeism,” says Cork. “It is also
measuring impactful employee wellness
likely there will be an increase in satisfaction,
programs are creating healthier workplaces
engagement and productivity.”
and seeing investments in their people’s mental health pay off,” he says.
Still today some CEOs and executives resist the “take care of your employees and they’ll take
In fact, a 2019 analysis by Deloitte revealed that
care of your business” idea, says Tierney. But
companies with mental health programs in
over the last two pandemic years, employees
place for one year had a median annual return
are demanding greater mental health
of $1.62 for every dollar invested. For companies
supports, and are willing to leave their jobs
with programs in place for three or more
over it, shifting the ‘Great Resignation’ to the
years, the median annual return is more than
great renegotiation.
tritoncanada.ca
LEARN MORE
National pre-employment screening agency providing secure and easy-to-use online background checks.
Reports RCMP in 15 mins* certified
48 | Retail Insider the magazine | Issue One
24/7 online access
It’s that easy. GetintheLoop is the difference between a full mall and an empty one.
Drive foot traffic, collect customer insights, enhance events, and engage tenants to advertise all through one simple platform. Join over 5000 businesses in GetintheLoop’s network and instantly connect with a thriving digital community looking to shop local. Shopping for a franchise opportunity? Learn why GetintheLoop is one of the fastest-growing digital franchises in North America.
FOR BUSINESS
FOR FRANCHISE
therimagazine.com | 49
FEATURE // BRAND PROFILE
On the back of its people Peavey Industries LP continues tremendous growth and success as a result of a strong employee and brand culture // By Sean Tarry
Teamwork and collaboration critical components of Peavey Industries LP culture
50 | Retail Insider the magazine | Issue One
The retail industry is constantly evolving.
The power of people
Driven by merchant innovation, market shifts
The company, which operates the Peavey
and behavioural trends and preferences, it’s
Mart, Ace Hardware (Canada) and MainStreet
an industry that often moves at a breakneck
Hardware brands, has been extremely busy
speed that requires swift decisions and
over the course of the past several years,
accurate execution. It’s an environment
building a national presence and the industry
that presents those involved with equal
expertise that Simmonds refers to. In fact,
parts challenge and reward. Today, both the
just twelve months ago, Peavey Industries
challenges and rewards have been intensified
completed the conversion of 47 TSC Stores to
as a result of an increased use of technology
Peavey Mart stores following its acquisition of
and associated digital acceleration within
the brand back in 2017, adding to its 40 existing
the industry. Most significantly represented
Peavey Mart locations and allowing the brand
by an ever-expanding ecosystem of channels
to expand beyond its already established
for consumers to shop, explore and engage,
presence in British Columbia, Alberta,
it’s an evolution that’s prompting changes to
Saskatchewan and Manitoba to include
the ways in which retail operates. However,
Ontario. In conjunction with the conversion,
what hasn’t changed, says Dave Simmonds,
the company also launched its brand new
Chief Operating Officer at leading farm and
peaveymart.com website – an enhancement
ranch retailer Peavey Industries LP, is the
to the company’s digital capabilities meant
unmatched importance of good people in
to service the evolving needs of today’s
supporting the enterprise, executing on
consumer. They are achievements recognized
the brand vision and ultimately ensuring
by Nadine St. Denis, the company’s Vice
that exceptional service is provided for the
President of People & Culture, who furthers
customer.
Simmonds sentiments, adding that the Peavey Industries employee is integral in enabling
“Peavey Industries has grown substantially
everything that the company does.
over the course of the last number of years,” he says. “Throughout this time, we’ve been
“Our employees are an incredible group of
very conscious about bringing expertise
people who are very much at the core of the
possessing a range of skillsets into a number
Peavey Industries brand,” she asserts. “They
of different roles within the company. And,
absolutely demonstrate the values that the
because many of our employees are familiar
company has worked so hard to maintain,
with the needs of a ranch lifestyle, they’re a
contributing to a culture that reflects the
really good reflection of the communities that
fabric of the brand. We’re a collective at Peavey
we do business in, bringing their skills and
Industries who are very forward-thinking yet
knowledge to our stores across the country.
respect where the company has come from
Our people have been critical in ensuring
and how it’s grown – growth which is very
our growth and success. They’re a collective
much based on our understanding of the
that drives our corporate values of respect,
Peavey customer and our relentless pursuit
integrity and caring and go a long way toward
of excellence with respect to delivering the
upholding our strong culture.”
best service possible to them. And we all
therimagazine.com | 51
realize that, despite our roles, whether we’re
collaboration. And they also receive a lot of great
working in an office, warehouse or one of our
response from our employees. However, beyond
stores across the country, our focus is always
these benefits, what the company is perhaps
on providing the customer with knowledge
most proud of is the focus that’s paid toward the
and service that consistently exceeds their
growth and development of Peavey Industries
expectations.”
talent. It’s a focus that starts at the top and one
Care and respect
that conveys the message to our employees that they have a career at Peavey and not just
St. Denis goes on to explain, however, that the
a job. To support this message, we provide
reason for the loyalty and dedication of the
excellent opportunities for promotion and
Peavey Industries employee is not shrouded in
advancement within the company, may support
a secret. It’s the composite result of a culture
the continuation of employees’ educations
that’s been built on the foundations of genuine
and provide strong coaching and mentoring.
care. It’s care that’s evident in the company’s
When you treat your employees with this kind of
many programs and initiatives, including
respect, caring about them as people, they tend
its ‘Inspire Fabric’ in which employees can
to feel valued and want to remain in their jobs
recognize the efforts of their coworkers who
and move through the company as they build
have gone above and beyond within their jobs,
their careers. It benefits them tremendously. But
nominating them for special draws involving
it benefits the company even more because we
substantial prizes. In addition, the company
don’t lose our talent to competitors.”
offers its employees, whether full-time or parttime, working in a distribution centre or in a senior management position, the chance to buy in as a legitimate owner of Peavey Mart through a broad-based employee ownership plan. And, it facilitates its ‘Peavey Cares’ program which is funded entirely by Peavey employees in order to help fellow employees in times of financial need. They’re incredible benefits that St. Denis says are fundamental in helping to maintain the shape of the Peavey Industries culture, adding, however, that they’re but a few examples of the ways in which the company takes care of its people. “Many of the programs and initiatives that the company has in place around people are rooted in respect, integrity and care,” she says. “They often highlight some of the characteristics that the Peavey Industries culture thrives on, including support and
52 | Retail Insider the magazine | Issue One
“When you treat your employees with this kind of respect, caring about them as people, they tend to feel valued and want to remain in their jobs and move through the company as they build their careers.” - Nadine St. Denis
Impact on customer service Its retention rates and employee satisfaction are impressive, to say the least, and very much a vital component of the company contributing to its consistent success and continued growth. But it isn’t just the employee of the company that enjoys the benefits of a strong brand culture. By empowering its people and cultivating a firstclass culture through its robust programs and initiatives, Peavey Industries is also able to continuously deepen their understanding of the customer, strengthening their relationships with them and allowing the company to deliver the very best service and experience possible. It’s a correlation that’s most noticeable in the scores of happy Peavey customers across the country, says Jest Sidloski, the company’s Vice President of Marketing, adding that a happy customer is a direct by-product of the culture that’s been created within the company. And, he explains, it’s a culture that’s been developed organically through the years and contributed to by every Peavey employee. “One of the most unique things about the culture at Peavey Industries is the fact that it was not curated by an executive team,” he points out. “It’s a culture that’s been built over time with the help of employees throughout the entire business. It’s also a culture that’s extremely focused on the customer. And we make sure as a team that everyone’s equipped to do their jobs to the best of their ability and empowered to make decisions in order to provide the service required to meet and exceed our customers’ expectations. The culture at Peavey enables this kind of focus, nurturing innovation and creativity and encouraging everyone at the company to
Treating employees with care and respect for generations.
therimagazine.com | 53
bend over backwards for the customer. When you strip away all of the complexities of the retail business, the objective should still be about people and helping to fulfill their needs, whether they are employees or customers of the brand. If an organization can get that right through a strong employee and brand culture, a real community that reflects the values of the company begins to form, creating something really special.”
Supporting further growth The rapid growth that Peavey Industries has experienced over the course of the past number of years is impressive. So, too, is the digital transformation that the brand recently underwent. What’s more impressive, however, is the fact that the company doesn’t seem to be showing any sign of slowing. Simmonds says that Peavey has plans to significantly grow its store count even further by focusing on expanding its Ace Hardware corporate and dealer networks. He mentions plans to continue tightening and making tweaks to areas of its operation where there are opportunities for improvement. And, he asserts, the culture of the company and contributions of every Peavey Industries employee will be critical in helping to achieve
“When you strip away all of the complexities of the retail business, the objective should still be about people and helping to fulfill their needs, whether they are employees or customers of the brand.” – Jest Sidloski
these goals and targets. “Over the next 12 to 18 months or so, we’re going to be zeroing in on our execution of our
be identified and seizing opportunities as
processes and systems and managing through
they arise. And, again, all of these things are
some of the changes and shifts that we’ve
done with the consumer in mind, executing
made recently as a company. In addition, we
in order to make sure they’re satisfied. That’s
really want to make sure that we remain as
our mission. And to do this, you need the very
nimble as we possibly can as an organization,
best people and culture. We’re really proud at
keeping an eye on inflation and other cost
Peavey to say that we have both, enabling us
increases. We’re very conscientious about
to continue moving forward and grow even
our future, managing risks where they may
further as a company.”
54 | Retail Insider the magazine | Issue One
Canada’s Top eCommerce Consultants
Small Business? Get $15,000 for Digital Transformation Visit www.eCommerceCanada.com/CDAP to learn more
Application As trusted advisors of the program we will work with you to draft your application program and ensure you are properly identifying your needs for digital transformation.
Digital Needs Assessment We work in this everyday and can easily identify your gaps in technology and ensure the information provided to the CDAP program is accurate.
Digital Adoption Plan By working with you through the application process we can become familiar with your needs and reduce the timeline to generate the Digital Roadmap and apply for the grant.
Lets Work Together to Map Your Digital Strategy Into the Future
Proud Digital Advisor therimagazine.com | 55
DATA POINTS //
Digital Transformation is big business. But what is the retail industry saying about it? Data and analysis brought to you by eCommerce Canada and Koat.ai
Given the accelerated digitization of the world around us that’s occurred over the course of the past two years or so, retail digital transformation is big business. Estimated to currently be a $1.8 trillion business opportunity, it’s one that is anticipated to grow to $2.8 trillion by 2025. So, what’s the chatter around digital transformation? And, how do we see it impacting the retail industry in 2022? Leveraging a collection of trend, keyword, sentiment and data insights tools, we attempt to provide a better understanding of the core topics and influences around digital transformation. Here are our key data points:
Keywords The retail industry is one of the centrepieces of online discussion around digital transformation. A
56 | Retail Insider the magazine | Issue One
quick look at the leading associated topics surrounding the keyword ‘digital transformation’ shows that ‘retail industry’ is the most commonly related phrase, followed by ‘artificial intelligence’, ‘COVID 19 pandemic’ and ‘financial services’. So, it’s safe to expect retail to be a central theme in digital transformation for years to come.
Sentiment The bend on this subject is less clear. There’s very little bias towards whether digital transformation is positive (2%) or negative (1%), as industry and consumer sentiment is generally 97 per cent neutral. The topic doesn’t seem to create excitement or fear. At least, not yet.
Trending Not surprisingly, digital transformation is a trending topic. Keyword demand suggests a notable spike in online material being created around digital transformation, which has resulted in a 12 per cent increase in published content over the past 12 months when compared to the same timeframe from April 2020 to March 2021.
When to post? What if your company wants to grab on to this hot topic and create a Tweet or blog post to attract new eyeballs? We’d suggest Tuesday mornings around 9am, as that’s the time when publishers are sharing their digital transformation news. And we sure hope there’s a method to that madness. We hope these Data Points help start conversations among your teams around the topic of digital transformation and the opportunities available to retailers embarking on the journey. In fact, we’d love to receive your feedback and recommendations for future Data Points topics to explore at craig@retail-insider.com
ADVERTISERS AND SPONSORS //
Bottom Line Matters bottomlinematters.ca
// 37
PenguinPickUp LP penguinpickup.com
// 43
eCommerce Canada ecommercecanada.com
// 49
Primaris // 02 primarche.ca
GetintheLoop // 55 getintheloop.ca
Snap Inc. Canada snapchat.com
// 25
Lenbrook Canada Solutions // 27 lenbrookcanadasolutions.com
Triton Canada Inc. tritoncanada.ca
// 48
therimagazine.com | 57
58 | Retail Insider the magazine | Issue One
In the next issue… • • •
Exploring the continued evolution of e-commerce Dissecting the consistent success of the luxury sector Inside the latest in grocery innovation
PLUS: The future of Canadian retail
Distributing Summer 2022
therimagazine.com | 59