How a diverse and inclusive brand culture enhances the retail employee and customer experience >> page 12
The Digital Retail Revolution
Exploring the use of technology in today’s retail ecosystem pg. 18
Customer Engagement in the Digital Age
Reassessing the ways in which consumers are engaged and communicated with pg. 26
Developing a deeper understanding of employee needs pg. 44
Welcome to the third issue of Retail Insider the magazine. We’re really pleased to present this content, featuring dynamic insights concerning some of the most pressing top-of-mind issues impacting the retail industry.
The publication headlines with conversations about the current state of diversity, equity and inclusion efforts within organizations across the country and how related initiatives dramatically impact brand culture.
We also explore the increasing use of technology within the retail ecosystem, the ways in which digital tools are being deployed, and how their use is lending to the enhancement of operations and the customer experience.
Delving further into the theme of retail digiti zation, we take a look at communication and customer engagement in the digital age and the things retailers need to consider when building relationships with today’s evolving consumer.
We also feature a profile of iconic Canadian jewellery retailer, Birks - which has been a retail staple within the country since its founding in 1879 - highlighting the ways in which it contin ues to adapt to meet the luxury desires of the Canadian shopper.
In addition, columns from two incredibly im portant associations. The Canadian Federation of Independent Business focus on the digital transformation of small businesses. And, Retail
Council of Canada provides an overview of issues pertaining to retailers as we head into the 2022 holiday shopping season.
Thank you again to the entire team for putting this particularly exceptional third edition togeth er. And, look out for the fourth and final 2022 edition of Retail Insider the magazine which will be released at the end of December.
As Canada’s only national retail publication, we’re extremely proud to be able to offer this content to retailers and their teams, valued partners of the industry and expert consultants, and hope that the thought-leadership and insights provided helps everyone navigate through the challenges and identify opportunities for further growth and success.
Sincerely,
Craig Patterson Publisher craig@retail-insider.com
be Canada’s only national retail
How a diverse and inclusive brand culture lends toward the enhancement of the retail employee experience, opening up a plethora of opportunities to attract top talent as well as prospective customers to the brand.
The ways in which technology has influenced the retail operation over the course of the past 50 years is incredible. However, what’s happening today is set to revolutionize the industry entirely, from planning to the in-store customer experience, and all connecting points in between.
In light of the current accelerated digitization, the retail ecosystem has changed significantly, requiring retailers to reassess the ways in which they engage and communicate with consumers.
How managing the retail operation to a single set of numbers helps to improve management of the retail supply chain, enhance the accuracy of projections and predictions, and allows businesses to meet customer demand and financial objectives.
Despite the challenges presented by the COVID-19 global pandemic, Canada’s leading luxury jeweller has rebounded, positioning itself for further growth.
In the throes of a labour crisis, retailers across the country need to develop a deeper understanding of today’s employee needs in order to secure future success and growth.
PUBLISHER Craig Patterson
ASSOCIATE PUBLISHER Dustin Fuhs
EDITOR-IN-CHIEF Sean Tarry
GRAPHIC DESIGN GBC Design
CONTRIBUTORS Diane J. Brisebois, Mandy D’Autremont, Mike Doherty, Shelby Huatala, Craig Pat terson, Mario Toneguzzi
HEAD OF SALES AND SPONSORSHIP Darryl Julott darryl@retail-insider.com
EDITORIAL OFFICE 100 Bloor Street West, Toronto, ON, M5S 3L3
Retail Insider the magazine is published four times each year by Retail Insider Media Ltd. therimagazine.com
Responses within PwC’s recent Global Diversity & Inclusion Survey reveal that there is still much work to be done within organizations everywhere in order to make meaningful progress concerning their diversity, equity and inclusion efforts.
80% of leadership engagement on DE&I remains at the basic or emerging levels
25% of organizations have DE&I goals for leaders
31%
still have no DE&I leader
The frontline retail employee experience has been the subject of some attention of late given the increased stress and pressure that many endure on a daily basis. In fact, according to The Deskless Report 2022 recently released by Axonify and Nudge, 42% of frontline retail workers are considering quitting their job as a result of burnout.
42%
In a recently published report by McKinsey titled Hybrid work: Making it fit with your diversity, equity, and inclusion strategy, the true power of an inclusive strategy was highlighted, revealing a clear case for retailers everywhere.
90% of employees who work within an inclusive culture are more willing to go out of their way to assist a colleague
7 X
17% have a C-Suite level diversity role in place 47% of employees are more likely to stay with an organization if it’s inclusive
Employees who work within inclusive cultures are more likely to describe their organizations as “high performing”
The pandemic and its effects influenced a multitude of shifts and changes with respect to the way things are done, particularly within the retail context. Store closures and lockdowns resulted in the need for greater retailer flexibility and options. And, data within Adyen’s 2022 Canadian Retail Report suggests that the flexibility and options that have been introduced are now expected by consumers.
61%
of Canadian consumers think retailers should continue to deliver the same cross-channel flexibility in a post-pandemic environment
64% will stop shopping with retailers if they do not meet the levels of flexibility that they expect
In order to realize their full potential in this age of digital acceleration, many retailers around the world are focusing much of their investment in emerging technologies. With the aim to increase efficiencies and enhance the customer experience, a gamut of tools and solutions are being leveraged. The Information and Communications Technology Council’s recent report titled Striving to Be Smarter: The Evolution of Intelligent Retail in Canada reveals the areas in which retail leaders expect technology will have the greatest impact over the course of the next 5-10 years.
While most operating within the retail industry might be dreaming of increased revenue and sales as we approach the busy holiday shopping period, Deloitte’s 2022 Holiday Retail Outlook predicts a Canadian shopper who is determined to be frugal, spending just $1,520, down 21% from 2021. But, what do they plan to spend their money on?
Leveraging the right tools allows small businesses to get a leg up on their larger competitors and enhance the customer experience
// By Mandy D’Autremont, Vice-President of Marketing Partnerships, Canadian Federation of Independent Business
This month, government officials from all cor ners of the globe, associations, the private sector, and other stakeholders are meeting as part of the OECD Digital for SMEs Global Initiative. Their aim is to identify and share the most successful ways to support digital transformation of smalland medium-sized businesses (SME). The digital age offers huge potential concerning automation, innovation, the ability to connect with customers in new ways, and to find new customers from afar.
Many Canadian businesses have been at the fore front of digital adoption and ecommerce. Half of Canadian small businesses say they plan to sell online as a permanent strategy going forward from the pandemic, according to a 2021 survey conducted by Maru/Matchbox on behalf of the Canadian Federation of Independent Business (CFIB).
But finding a way to make online sales profitable is still a challenge for most small businesses with only one-in-four reporting that ecommerce has proven a success for their business as of the start of 2021. Ecommerce is not a magic bullet - the digital world is competitive and crowded, with
big and small businesses alike vying for the same customers’ attention.
Local retailers have the ability to outshine big businesses – budgets may be smaller, but they have grit, persistence and heart. Small business owners know their customers personally and what they are looking for. They can make an impactful and memorable local presence. And Canadians can feel good about supporting the dreams of their fellow Canadians.
Small businesses can also leverage Small Business Saturday (November 26), a day to celebrate and encourage shopping local. CFIB started this day over a decade ago to champion shopping local. In 2020, we moved it to the Black Friday/Cyber Monday weekend, so that small business owners can have their own avenue to kickstart holiday shopping.
The power of our digital era is that we can bring businesses from across Canada together to spot light the importance of shopping local and rein
force the positive feelings Canadians have when they buy from their favourite Canadian business es. You can get free toolkits from SmallBusines sEveryDay.ca, with printable posters and down loadable digital assets to celebrate Small Business Saturday, but also #SmallBusinessEveryDay.
With inflation pressures, it isn’t surprising many Canadians are planning to spend less this holi day shopping season. Twice as many Canadians plan to spend less for Black Friday/Cyber Mon day than they did last year (38% plan to spend less compared to 21% who plan to spend more) according to the Angus Reid Group’s Consum er Economic Pulse, Wave 6 report. With half (48%) of Canadians planning to look for deals on the Black Friday/Cyber Monday weekend, we hope small businesses can make the most of this weekend by leveraging Small Business Saturday to promote their business.
Our vision is that through our digital connectiv ity we can encourage more Canadians to choose to shop local for the holidays. Consumers can also share their small business recommendations and shop local messages online. This is another way digital connectivity can support the move ment.
Small business in the age of digital isn’t just about sales and marketing. Digital transformation can be different for every business. Some may be looking at how they can leverage new 5G tech nology to automate and innovate their business processes. With this comes a need for awareness of cyber risks for small businesses. Hopefully, in 2023, all businesses will focus on enhancing their cybersecurity measures and training their employees so everyone in their business knows how to protect it from cyberattacks. CFIB will be launching a new Cybersecurity Academy in the coming weeks to offer cybersecurity awareness
training to small businesses and their employees. When 95 per cent of cyber breaches are a result of human error, education is the number one way to prevent becoming a victim of a cyberattack.
As conversations continue on the global stage around what a digital future looks like for small businesses and the best ways to support them, each small business will be pressing forward on the right digital opportunities for their business. These resources and tools discussed in this article can be found on cfib.ca and SmallBusinessEvery Day.ca.
Mandy D’Autremont is the Vice-President of Marketing Partnerships at the CFIB, the largest non-profit organization representing over 95,000 businesses across Canada.
Small Business Saturday is brought to you by CFIB and American Express and supported by Canada Post.
Creating magic and an exceptional experience to meet the needs of a holiday shopper on a budget
// By Diane J. Brisebois, President & CEO of Retail Council of Canada (RCC)
As household budgets become increasingly squeezed and the cost of daily essentials contin ues to rise, consumers want to get more bang for their buck this holiday season. But according to the recently released 5th annual RCC x Leger Holiday Shopping Survey, Canadians are expect ed to spend the same amount they did in 2021, which is approximately $790.
However, the greater challenge in 2022 is finding ways to entice shoppers to physically visit and spend in store as inflation continues to be top of mind for your customers. The survey provides some good insights that may help you tweak your store and communication plans in the coming weeks (and months!) to ensure greater success and increased sales.
Health and safety continues to rise to the top with 64 per cent of consumers saying that retail ers should continue enforcing health and safety precautions in the stores to ensure safe shopping during holidays. A good way of showing that you understand their concerns is to make your health and safety measures are visible.
This year, retailers should work to create a festive shopping experience while providing assuranc
es of safety measures, including the spacing of displays so that crowding is minimized and wel coming people to wear masks if they wish. And be sure not to hide the hand sanitizer behind a display rack!
With 60 per cent of consumers telling us that they will be looking for more deals and sales for this holiday shopping season – more than in previous years - it is crucial for retailers to com municate their deals and special offers through out the season and until Boxing Day. And as the survey shows, email continues to be the most noted and successful form of communication.
With 57 per cent of respondents noting that the feeling of holiday shopping has not been the same since the pandemic, the importance of cre ating magic and providing exceptional customer service has never been so important.
Give your customer a reason to shop at your store, especially given the fact that the survey in
bang for their buck!
dicates that a whopping 56 per cent of Canadians say they intend to browse in-store for gift ideas.
Retailers can leverage this by offering suggestions concerning the ways consumers can save money by shopping with them while providing them with inspirational gift ideas and holiday shopping excitement.
Another interesting change is the purchase of gift cards. While the survey is based on consumers’ purchasing intentions – so what they eventually do may differ a bit from what their intentions are at this time – the survey showed that 44 per cent of respondents would be looking to purchase gift cards this year (a drop of 4 per cent over the previous year).
Gift cards should not be overlooked by retailers. Consumers are more stressed about their budgets and finding the right gifts this holiday season. Gift cards are a great option to alleviate both con cerns. So, gift cards should not be seen by retail ers as a consumer’s last-minute gift idea but as a
great option that should be vigorously promoted throughout the shopping season.
The RCC x Leger Holiday Shopping Survey has a myriad of great information. This year’s deeper analytics looked at consumer behaviour profiling, identifying five distinct holiday shoppers:
The Online Holiday Shopper (24%)
The Neutral Holiday Shopper (23%)
The Excited Holiday Shopper (19%)
The Festive Holiday Shopper (19%)
The Disenchanted Holiday Shopper (15%)
Consumers are open to visiting a wider variety of retailers this holiday shopping season as they search for deals and meaningful gifts – make sure they see you as a place to achieve both those goals!
If you are an RCC member company or work for a member, you can access the full study here.
How a diverse and inclusive brand culture lends toward the enhancement of the retail employee experience, opening up a plethora of opportunities to attract top talent as well as prospective customers to the brand // By Sean Tarry >>>>
Retail is about people. It always has been, often serving as a conduit of sorts, a place of common ground and a hub of gathering and engagement for the people living within the areas where they operate. In short, retailers from coast-to-coast are a significant contributor to the health and wellbeing of cities and communities across the country, woven deep into their social fabric. As a result, to ensure the health of the brand, retailers have got to make it a priority to reflect the eclectic tapestry of customers that they welcome into their stores on a daily basis. In fact, according to Anne-Marie Pham, Chief Executive Officer at the Canadian Centre for Diversity and Inclusion (CCDI), it’s a priority for businesses that is growing in significance, requiring them to pay much more attention to the development of
diversity, equity and inclusion (DE&I) initiatives if they want to compete in an evolving Canadian market.
“Organizations who intentionally focus on DE&I efforts will have better ability to recruit job seek ers,” she asserts. “In fact, research has found that 76 per cent of job seekers look at the diversity of companies and 32 per cent would not apply to a company that does not have a diverse culture in place. People seek out inclusive organizations and some choose to leave their current employer to find a more inclusive one. Further, employees who feel valued and are encouraged to bring their authentic selves to work feel more connect ed to the organization that they work for and are more engaged. This can have extremely positive
impacts on performance, including greater work place creativity and innovation, increased collab oration and enhanced business outcomes.”
Pham goes on to explain that creating a diverse and inclusive culture is, of course, the right thing to do from a moral perspective. However, she adds that given the increasingly multicultural nature of Canada’s population, the need to do so is becoming what she refers to as a “business imperative”, pointing to the Government of Can ada’s recent announcement outlining its efforts to welcome an estimated 500,000 newcomers to the country every year.
This, in combination with a rising indigenous population and an increase in the number of people living with disabilities entering the work force, means that retailers ought to ensure their businesses are welcoming and friendly, lest they find themselves disadvantaged against diverse competitors in the fight for talent within today’s tight labour pool.
“With an increase in the number of equity-seek ing groups in the labour market, the business imperative of DE&I is clear,” she says. “Organiza tions must incorporate DE&I into their strategies to avoid limiting their access to talent and ensure they enable their workforce to perform at their fullest potential.”
The multicultural consumer
From a customer acquisition and engagement perspective, Pham says that organizations that make the development of DE&I initiatives a priority have the opportunity to significantly improve their brand and reputation amongst consumers. Through the use of authentically in clusive ads and messages, she adds, retailers can position themselves well to attract a more diverse group of customers to their stores.
It’s a sentiment shared by Howard Lichtman, Partner and Co-Founder of Ethnicity Matters, one of the country’s leading multicultural mar keting and advertising agencies, who believes that if a retailer today is not attempting to market to Canadians of all backgrounds, they aren’t real ly marketing at all.
“The most recent census data shows us that one in every four Canadians were not born in the country,” he explains. “And when you stop to re alize that it’s a proportion of the population that’s greater than the province of Quebec, it should make you think of the challenges and oppor tunities that are inherent. Just like Quebec, the multicultural community in Canada is a massive population that needs to be catered to different ly as a result of differences in language, culture, religious attitudes, influencers and humour. As a result, this consumer requires a different strategy and approach. And, when you consider the fact that they represent one in four Canadians, 25 per cent of the market, the multicultural consumer is the retail consumer, and brands have got to figure out a more effective way to communicate to and engage with them.”
“Organizations must incorporate DE&I into their strategies to avoid limiting their access to talent and ensure they enable their workforce to perform at their fullest.”
- Anne-Marie Pham
Ethnicity Matters has been working with brands for nearly ten years, advising them and working with them on the development of strategies and campaigns that will help them reach the Cana dian multicultural consumer. And, Lichtman says, given the aforementioned pledge that’s been made by the Government of Canada as a part of its growth strategy to increase the number of immigrants entering the country every year, the opportunities for retailers to capture the atten tion of newcomers is tremendous.
“Increasing the number of newcomers welcomed into the country each year is the government’s proposed growth strategy,” he asserts. “And it should, as well, be a big part of the growth strat egy for retailers operating all across the country. Data shows us that newcomers to the country are extremely open to experiencing new categories and new brands in an attempt to embrace their new home. However, once they pass the explor atory stage of shopping, newcomers typically become very brand loyal. It presents a massive opportunity to retailers in the country to make newcomers aware of their presence, giving them a reason to shop with them, winning them over before their competitors do.”
In an effort to understand the current state and trajectory of DE&I initiatives among Canadi an brands operating today, renowned law firm, Osler, conducted a survey of companies, result ing in a detailed disclosure on the representa tion of women in senior leadership positions at TSX-listed companies as well as the representa tion of women, members of visible minorities, Indigenous peoples and persons with disabilities at publicly-traded corporations governed by the Canada Business Corporations Act (CBCA).
The report, titled Diversity among directors and executives in Canada’s consumer products and
Within Osler’s Diversity among directors and executives in Canada’s consumer products and services industry report, it highlights disclosed best practices to improve diversity and inclusion as well as samples of excellence in disclosure. 55% of Saputo directors are women 50% of executive officer positions are held by women at Aegis Brands Inc., Aritzia Inc., and Primo Water Corp. 83% of executive officer positions at LXRandCo. Inc. are held by women 62% of executive officer positions at Pet Valu Holdings are held by women 100% of all executive officer positions are held by women at Roots Corporation
Two Canadian consumer goods and ser vices industry companies were highlight ed in the report for their best practices:
Alimentation Couche-Tard Inc. for its use of networking programs and resource groups; and Maple Leaf Foods Inc. for its series of focus groups with women across the organization and surveys to better inform action plans, and for targeting ar eas within its workforce which have been identified as key areas of opportunity to increase the representation of women.
services industry, yielded a number of areas of improvement for Canadian retailers to focus on. For instance, based on the 33 companies which provided disclosure on the number of visible minorities on their boards, they hold just 11.1 per cent of the board seats. And, when it comes to female representation, Canadian companies operating within the industry have a paltry average of 2.3 women directors and 2.36 women executive officers within their ranks.
Although these numbers for companies operat ing within the Canadian consumer goods and services industry are higher compared to the average TSX-listed company - within which just 8.3 per cent of board seats are held by visible minorities, and a shockingly low 2.05 and 1.94 women hold director and executive officer po sitions respectively – there is clearly much work that remains unfinished in order to create a truly diverse and inclusive organization.
Based on these numbers, authors of the report, Andrew MacDougall, John Valley, and Jennifer Jeffrey, suggest that if retailers and other compa nies have any desire to grow beyond their cur rent customer base and increase the profitability of their brands, women and visible minorities are but two of the segments of consumers and prospective employees that they must focus their attention on. And, if they don’t, they may be limiting their potential innovation and success in a much more substantial way than they could imagine.
“Women represent more than 50 per cent of the population,” the authors assert. “If you are look ing to recruit the best and the brightest talent to your organization, wouldn’t you want to elimi nate potential impediments, real or perceived, to recruiting from half the population? And simi larly, if you are marketing products or services to Canadians, you might benefit from having a cross-section of perspectives in senior leadership that reflects to some degree the demographics of the population.”
The report also includes a number of best prac tices that were disclosed by companies which have been useful in furthering their internal DE&I strategies, including focussing on wom en in setting recruitment criteria, establishing mentorship programs and providing network ing programs, providing training on diversity and unconscious bias, establishing diversity and inclusion committees to promote DE&I efforts, monitoring progress, providing flexible work arrangements and addressing pay equity and systemic issues. It’s a raft of work that’s cut out for any organization looking to create a more diverse and inclusive work environment and culture.
However, it’s work, according to the CCDI’s Pham, which can sometimes become derailed or even restricted as a result of various obstacles to the implementation of a DE&I strategy.
sive culture from those who are not experiencing issues, a lack of willingness to learn, leaders who are resistant to change, biases and micro-aggres sions that result in workplace conflict and a sense of exclusion, and a lack of capacity or resources that are needed to order to implement the DE&I work.”
Leading with humility and courage
She says further that in order for DE&I strategies and initiatives to gain traction, leaders within organizations must be the ones who develop the tone and be diligent in building and main taining accountability for themselves and those around them. In addition, she says that leaders must develop intercultural communication skills, a sense of collaboration and transparency, and the humility and courage to sustain their efforts. However, most importantly, she says, organi zations need to ensure that they are not being performative with respect to their development of DE&I initiatives and that their efforts are well thought-out, that appropriate resources are dedicated to those efforts, and that it’s integrated in everything it does. In this way, she suggests, significant change and an improved culture of diversity and inclusion is possible.
“The journey to becoming a more diverse, inclu sive, equitable and accessible organization will inevitably encounter obstacles which will vary from company to company,” she explains. “These can include push back in creating a more inclu
“In order to properly begin on the path toward a truly diverse, inclusive, equitable and accessible culture, a current state inclusivity assessment is often required in order to comprehensively understand the workforce demographic pro file and employees’ assessment of how they feel respected, included and whether they believe they have equal opportunities to succeed. The assessment should include input from clients, funders and other important community and business partners. This information forms the foundational understanding needed to develop a DE&I strategy that would ideally be integrated into all aspects of the business, including hiring, onboarding, retention, succession planning, cus tomer service, product and service development, and corporate social responsibility.”
“...if you are marketing products or services to Canadians, you might benefit from having a cross-section of perspectives in senior leadership...”
- Andrew MacDougall, John Valley and Jennifer Jeffrey, Osler
The ways in which technology has influenced the retail operation over the course of the past 50 years is incredible. However, what’s happening today is set to revolutionize the industry entirely, from planning to the in-store customer experience, and all connecting points in between.
// By Sean TarryThe evolution of retail really is something to be hold. From the earliest bazaars and markets to the very latest innovations and advancements, and everything in between, the industry is one that is ever adjusting and recalibrating in ongoing efforts to continue to serve the customer, providing them with the product and exceptional experience that they seek. Supporting much of the adjustments and recalibrations today, allowing for a consistent reimagination and enhancement of the consumer shopping journey, is an array of digital technolo gies. Ranging from the use of machine learning and artificial intelligence that ensure greater accu racy and predictiveness, to in-store technologies that help remove points of friction and frustration from the process of engagement, technology is being leveraged throughout the entire retail eco system. But what is the technology being used for? How is it being deployed? And, in what ways is it enabling retailers to find efficiencies and elevate the retail experience?
Despite any disruptions and disturbances that might be occurring, the focus of retailers must always be firmly on the customer and finding ways to continue servicing their ever-shifting needs and preferences. As a result, many merchants within the industry have recently been turning increas ingly toward technology as a means to help create a more seamless in-store experience. And, accord ing to Marty Weintraub, Partner, National Retail Leader, Deloitte Canada, it’s an investment by those operating within the industry that is likely set to continue as we foray further into an age of acceler ated digitization.
“Technology is being used in a number of differ ent ways in today’s retail store environment,” he explains. “However, the majority of it is naturally being leveraged to remove friction from the cus tomer experience. This includes new and improved self-checkouts that are helping to create a better, faster and more efficient checkout experience, and a renewed interest in the ‘just walk out’ type of
experience which allows the customer to avoid the checkout altogether using sensors and cameras. This type of technology is gaining the most trac tion in smaller format stores, such as convenience stores, but is likely to continue to permeate through to bigger, higher sku intensity retail formats. In addition, things like digital navigation, shelf and promotional signage, and how price and value is communicated to customers who are investing in the store and digital experience it offers, will con tinue to be leveraged with greater frequency and effect.”
It’s an increase in investment that’s also recognized by Michelle Zorn, Industry Account Executive, Re tail, SAP. And, she suggests that it’s not only going toward improving the experience for customers in the way of increased speed and convenience, it’s also aiding in the creation of a more immersive retail environment - one that is poised to pay divi dends for the industry going forward.
“The customer is at the center of all decisions and there is a demand to provide a faster, transparent, and flexible experience that offers options,” she asserts. “Leveraging data analytics allows retailers to create fully personalized customer interactions
“The customer is at the centre of all decisions and there is a demand to provide a faster, transparent and flexible experience that offers options.”
- Michelle Zorn, SAP
through real-time data and demand forecasting. Technology and digitization are allowing retailers to provide customers with an authentic and cus tomized experience whether it is online or in-store. The pandemic forced retailers to re-evaluate their digital experiences and customers continue to want the ability to have an integrated and omnichannel approach. For example, fashion retailers are using technically advanced features such as full-fledge 3D immersion to allow customers to experience products through augmented reality which puts the customer in control of their experience and purchases. It also allows retailers to develop new opportunities for their brands. For example, Spin Master’s Paw Patrol brand has developed a com plete customer experience offering multi-revenue streams such as toys, stuffies, games, clothing, movies, television shows, and more. There is some thing for everyone.”
Considering the immersive environment that Zorn refers to, the role that augmented reality has to
play in its creation and proliferation is extensive. And, according to Matt Bolivar, Retail Vertical Lead, Canada, Snap Inc., perception of the technol ogy and its capabilities are changing rapidly among consumers who are beginning to grasp the true benefits of its functions. And retailers are increas ingly deploying it in a bid to start tapping into its true potential within the retail offering.
“Research has found that consumers are look ing more and more to technology for utility and convenience, not just entertainment or play,” he points out. “For Snap, it’s been interesting to see the significant role that augmented reality plays in people’s lives beyond just silly or fun lenses and fil ters. For example, in Canada, 90 per cent of brands think AR is primarily for fun, meanwhile, only 55 per cent of Canadian consumers feel this way, with consumers now most interested in using AR for utility, for things like AR try-on, learning how to use a product, or seeing what a product looks like in their space, and learning more about brands.”
And, he adds, as adoption among the general public increases and their use of augmented reality enhances, so too does the business case for retailers to implement the tool into their operations, elevat ing engagement and the customer experience.
“AR is really improving and enriching the shop ping experience for Canadian consumers,” he says. “And, in turn, it’s enabling retailers to see ROI through significant conversion. Consumers partake in a retail experience that’s more personalized or customized in that very moment, from the comfort of their own home or even in store, allowing them to feel a deeper connection with a brand and its products. We’ve seen great success, and 87 per cent of brands who use AR say it helps to drive sales, acquire new customers, and drive performance metrics. It’s being used to enable shopping mo ments in the now, while also enhancing the sched uled, in-store experience. In fact, more than half of consumers identified shopping as a top reason for using AR – and we think that’s something that retailers and brands should be excited about.”
“For many of the retailers that have survived and perhaps even thrived through the pandemic, and all of the resulting disruption, there is a renewed focus on improving the customer experience.”
- Shanu Kurien, SAS
In addition to the use of augmented reality and other technologies meant to engage, inspire and convert customers, an understanding of their behaviours and preferences is critical in supporting the experience that’s offered to them. And, in order to gain the deep knowledge of today’s consumer, Shanu Kurien, National Executive, Retail, SAS, says that the savviest within the industry are increasing their use of data to create much more personalized engagement, benefitting both the customer and business.
“For many of the retailers that have survived and perhaps even thrived through the pandemic and all of the resulting disruption, there is a renewed focus on improving the customer experience,” he says. “And, because there has been an explosion over
the past couple of years concerning the maturity of a number of channels, including click-and-col lect, curbside pickup and online growth in gener al, engagement has become incredibly data rich. Retailers that are thinking three or four years out are already working hard to figure out how they can use all of that data to understand the customer better and enhance the experience that they offer them, as well as improving the ways by which they market to the consumer. This developing under standing of the customer is allowing retailers to personalize flyers and offers, extrapolating from hundreds of offers to present the right ones to indi vidual consumers.”
It’s likely understood without too much elaboration that the supply chain is one of the areas within the
retail operation that’s receiving the most attention when it comes to technological investments in efforts to overcome some of the more significant hurdles caused by recent port closures and de lays. It’s investment that, according to Deloitte’s Weintraub, is robust and pointed. However, he suggests that it’s being leveraged in concert with an increased focus on removing some of the silos that exist within the retail operation, connecting the entire chain.
“There’s increased energy being paid toward get ting data right and integrating it properly within the supply chain in order to enhance connectivity between the supply chain and the stores and their merchandising efforts,” he says. “Technology is be ing deployed to ensure that the entire organization is on the same page and speaking the same lan guage when it comes to planning and demand in order to better execute against the business’ goals. There are more intense discussions around setting
up control towers to increase visibility into the entire integrated business, not just into a specific function, team or vendor. It’s a way in which re tailers will be enabled to connect dots throughout the organization, integrating data and technology, allowing them to flow and plan product in a much more intelligent way.”
It’s an analysis that’s shared by SAP’s Zorn, who notes that it’s all part of retailers’ quest to get ahead of demand and ensure that they are able to make the right products available to consumers when they want them.
“Supply chain management is one of the main challenges facing retailers,” she asserts. “A com pany’s bottom line is directly impacted by having the right inventory, with the right amounts, at the right time to meet customer demands. This means digitizing operations and creating a circular supply chain from the supplier to the consumers’
homes and back again, using real-time data. This will enable fast response to changes in supply and demand, design out waste and optimize every stage of the supply chain. It is essential for retailers to have full insight into their supply chain as this goes hand-in-hand with customer-centricity. The supply chain needs to be ahead of tomorrow’s demand for products that are easily accessible. Retailers can’t advertise products if they don’t have direct and easy access. This is achieved by embracing predic tive data insights to see what customers want.”
The use of data and machine learned, artificial intelligence-driven analytics is, of course, being applied across the entire retail ecosystem. How ever, it’s capabilities seem to be most aggressively applied to the retail supply chain. It’s where SAP’s Zorn suggests every successful supply chain starts, adding that properly informed demand forecasting and predictive analytics can be the biggest differen tiator when it comes to customer loyalty.
“Once a retailer can learn to capture, manage, and use its data in real-time, it can properly plan,” she says. “Leveraging accurate demand forecasting is a top priority for retailers and brands who are look ing to improve their supply chains and efficiencies. Once they understand their customer demand cycles, retailers can make sure they have the proper inventory where they can effectively push the products out to customers in a timely manner and ensure they are not out-of-stock. A McKinsey report showed that when shoppers are faced with out-of-stock items, only 13 per cent waited for the item to come back in stock versus 39 per cent who switched brand or products and 32 per cent who even switched retailers. Take a grocery store for ex ample, customers demand fresh produce. However, from a supply chain perspective, grocers need to know what is coming in, when it arrives and have a plan to get it to the customer while it is still fresh.”
Challenges within the supply chain and the trend leading retailers toward the use of data to help
improve efficiencies and reduce cost is not a topic that SAS’s Kurien is unfamiliar with. Being better informed, he says, simply enables better decisions. As a result, he adds that many retailers throughout the industry are considering implementing a fur ther layer of predictiveness to bolster analytics and improve preparation within the supply.
been so much disruption within the sup ply chain recently that retailers suddenly realized that they had taken for granted the importance of getting the right product to the right place at the right time,” he says. “Everyone is running just-intime inventory, which is incredibly lean. But many are beginning to recognize the ways in which even greater predictiveness can help their businesses, enabling them to identify possible disruptions and impediments to growth and react to them in a much more proactive manner. In order to achieve this, some within the industry are moving away from traditional demand planning and adding
“There’s
“Technology is being deployed to ensure that the entire organization is on the same page and speaking the same language when it comes to planning and demand in order to better execute against the business’ goals.”
- Marty Weintraub, Deloitte
components to it like demand sensing, allow ing them to slice and dice data and use artificial intelligence and modeling to create a holistic view of supply, while honing in on individual pieces of the chain looking forward. It’s ultimately providing retailers with the means to become more agile and dynamic in their strategy and decision-making.”
Interestingly, an area of the retail business that’s receiving some attention as a result of supply chain technological investment is sustainability, becom ing a benefactor by proxy of the ways in which technology helps to create efficiencies and elimi nate redundancies within the supply of products. And, according to Lloyd Adams, President, SAP North America, they are green benefits that are not lost on most retail leaders throughout the country.
“We’re seeing many retailers redoubling their focus on managing their social and environmental out comes – their “green lines” – with the same level of priority and precision that they manage their top and bottom lines,” he asserts. “Considering that on average 90 per cent of a business’ carbon footprint lies within its supply chain, the inability to track, manage, and gain insights from live data and em bed it into core business processes can cripple even the best-intentioned sustainability efforts. Tech nology allows a business to perform accurate and responsive planning, optimizing the flow of goods while reducing emissions, overstock and waste.”
He goes on to explain that the intersect between greater efficiencies, reduced costs and improved impact on the environment are driving many within the industry to ramp up their efforts with respect to the application of technology. It’s allow ing them to not only enhance their supply chain accuracy, he says, but to improve their sustainabili ty initiatives and outcomes as well.
“Not having a good hold on your stock directly impacts your sustainability efforts,” he asserts. “You could be facing higher warehousing and transpor
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tation costs, and not optimizing your replenish ment process, resulting in waste. Business leaders must move beyond disconnected, piecemeal ap proaches and use the power of technology to build inclusive, sustainable, and resilient value chains. And this isn’t just because it’s “the right thing to do” or because of increasing regulation in how com panies have to report and manage environmental, social and governance metrics. It’s also because we’re seeing many consumers demand that their favourite retailers step up to the challenge to reduce carbon footprints, minimize waste and create fair and just working environments for employees. Sustainability means good business.”
As we continue to forge ahead, deeper into the digital age, the power inherent in much of today’s technological advancements is clear. However, despite their capabilities, it’s incumbent upon the retailer to deliberate thoughtfully about the tools that they employ in order to maximize their impact and realize some of the positive results that can be enabled through their use. And, as Deloitte’s Weintraub suggests, it’s imperative for the industry to stay its course with respect to investment and improvements that are being made in order to en sure the long-term health and viability of the retail business going forward.
“Retailers shouldn’t let a good crisis get in the way of progress. There have been a lot of challenges recently, and there are some more that are on the horizon. However, the industry shouldn’t back away from their commitment to invest in technol ogy and some of the great momentum that’s been building throughout the pandemic. Inflation and interest rates will come down – it’s just a matter of time. And, if retailers adhere to their digital strat egies and maintain their investment in improve ments that will allow them to continue to increase operational efficiencies and enhance the customer experience, they’ll position themselves incredibly well to capture the attention, share of wallet and loyalty of the Canadian consumer.”
The recent digitization that’s been experienced by people living in communities all over the world has already resulted in a number of dramat ic impacts, influencing the way we do just about everything. It’s facilitating the advancement and propagation of technologies like artificial intel ligence that are enhancing predictiveness and increasing operational agility throughout organi zations, from optimized supply chains and increas ingly accurate demand forecasting to the develop
By Sean Tarryment of a better understanding of the customer. However, where the digital acceleration seems to have had the most profound effect is concerning the ways in which people communicate with one another, the modes by which we share, receive and consume information, and the amount of it that we now have access to. As a result, according to the Retail Prophet, Doug Stephens, it’s dramatically changed the way in which retailers must engage with their customers.
“Retailers must recognize that we are rapidly moving toward a world in which all the tradition al functions of retail stores - namely displaying assortments, providing product information and transacting sales can be more effectively and effi ciently performed online,” he asserts. “As we move into the future with technologies like augmented reality, virtual stores and AI-driven customer sup port, this will only become more the case. Digital media is fast becoming “the store”. And it’s a store that sits in the palm of the consumer’s hand, and is open 24 hours a day.”
Indeed. Despite the source, all of the most recent data that’s been generated concerning mobile pen etration in Canada, and the ways in which mobile devices are being used, point to a significant shift with respect to the behaviour of today’s consumer and the ways they are connecting with the world around them. According to Statistics Canada, 88.1 per cent of Canadian internet users aged 15 years and over own a smartphone, with 45.4 per cent checking their devices at least every 30 minutes.
And, as most would understand, smartphones, and our use of them, is now woven, intertwined within our daily routines. The same Statistics Canada data reveals that 20.6 per cent of smartphone owners use their device while eating dinner, 53.6 per cent will do so while watching television, and for 56.1 per cent of them, the last thing they do before go ing to bed is a quick check of their phone.
And, it’s not just our daily, mundane routines that involve the use of smartphones, permeating just about every facet of our environments. And that extends, naturally, to retail and the ways by which consumers are engaging and making purchases with them. According to a recent study conduct ed by Ipsos and PayPal, mobile commerce within Canada is starting to gain meaningful traction, revealing that of the 60 per cent of Canadian inter
net users that make purchases online, nearly 1 in 5 (19%) have made a mobile purchase within the last 12 months. All of this data goes to support Ste phens’ observations concerning the demise of the traditional, strictly functional retail store. However, the veteran industry expert also sees a plethora of opportunity to leverage the brick-and-mortar store as a means to engage the consumer in new and innovative ways.
into powerful, experiential media channels where brands can truly wow customers and draw them into their ecosystem,” he says. “This means employing technology at the store level that can really enhance the consumer’s time in the space. This should not be taken to imply that we simply fill the environment with screens. That’s a lazy approach. Rather, we have to really dissect each moment in the in-store experience to look for moments where technology can be used to inform, inspire, and empower customers and enhance their sense of delight.”
“The opportunity for retailers today is to transform physical stores
“The opportunity for retailers is to transform their stores into powerful, experiential media channels where brands can truly wow customers and draw them into their ecosystem.”
- Doug Stephens
In light of the digitization of the retail shopping journey, Stephens also suggests that communica tion with the customer has changed. In fact, recent data released by Sprout Social indicates that 64 per cent of consumers want brands to connect with them, and a further 91 per cent of those surveyed believe in the power inherent in social media to make those connections. In addition, responses revealed that as a result of a connection being made with a retailer, 57 per cent of consumers will increase their spending with that brand, with a further 76 per cent making purchases over their competitors. And, when it comes to the commu nication that’s attracting interest, 70 per cent of consumers admit to feeling more connected to brands whose leaders are active on social media, with 72 per cent experiencing the same feeling when employees of the brand share information online. Despite the message and the person behind it, however, Stephens suggests that retailers ought to understand what type of content their consum ers will appreciate.
“This might sound obvious, but retailers should start by not developing communications based on what the brand needs and wants,” he explains. “In stead, they should focus on building content that the consumer finds useful, valuable or meaningful. If a brand begins from a place of self-interest, it won’t matter how the message is delivered. No one will care. So, start from the needs and desires of the customer and work back to the message, content and delivery methods that you can offer.”
Stephens goes on to explain that, in addition to building the content and communication with the needs and preferences of the consumer at the heart of the message, it must be done so in an honest and authentic way. And, if done so effectively, more data from Sprout Social suggests that the potential impact on a business’ current and future revenue could be immense, revealing that when consumers feel a connection with a brand, they are 68 per cent more likely to recommend the brand to a friend, 64 per cent will experience an increased sense of loy
alty to the brand, and 38 per cent will even contin ue shopping with the brand after a bad experience. In the end, consumer response and reaction to the engagement a retailer offers them is all part of the relationship that’s been established. And, as Ste phens points out, given the vast amounts of options present within an ever-expanding retail ecosystem that consumers can choose from, it’s a relationship that brands must treat with greater importance than ever before if they are to succeed in the digital age.
“Given the amount of choice available to consum ers today, we have to work to develop a sense of friendship and connection with customers. Looked at through this lens, retailers need to ask them selves: do friends spam each other daily? Do they talk endlessly about themselves with little regard for the other person? Do they offer their friendship in a promotional or transactional way? Obviously, the answer to each of these questions is no. So why would we consider it acceptable for brands to com municate with their customers in this way? Instead, we need to ensure that any and all content shared is thoughtful, valuable and useful. Otherwise, it’s just more noise.”
“Given the amount of choice available to consumers today, we have to work to develop a sense of friendship and connection with customers.”
- Doug Stephens
The year 2018 marked the 40th anniversary of Abbott Labs Canada achieving a very signif icant milestone in inventory planning and supply chain management. In 1978, Abbott Labs Canada became the very first manufacturer to manage its business to “A Single Set of Numbers”.
Three years earlier, as Director of Manufacturing Operations and Distribution, Andre Martin led the creation, development, and successful implemen tation of the first integrated time-phased planning system in the industry. Andre leveraged the Bill of Material (BOM) concept to integrate manufactur ing operations from distribution centre to factory floor. Instead of a BOM, he flipped the idea and developed the concept of a Bill of Distribution (BOD). Once we forecast the demand at the DC’s, he reasoned, we could calculate the dependent demand onto the factories.
The Distribution Planning solution was aptly named Distribution Resource Planning (DRP) and adhered to the mantra laid out by Dr. Joseph Orlicky (of Material Requirements Planning fame) to “never forecast what you can calculate”. This enabled Abbott to seamlessly manage the flow of products across a three-echelon supply chain
– a worldwide supplier network supplying three factories (Montreal, Brockville and Toronto), who supplied ten distribution centers across Canada.
In 1978, he saw the opportunity to enable Abbott’s top management team to manage their business to “A Single Set of Numbers” – converting the fore casts and resulting plans into financial, resource and capacity projections. He converted the timephased production plans (developed by calculating production requirements from the DRP-driven plans) to dollars and called it “Game Planning” –since it produced a financial projection of planned sales, production, shipments, and inventory levels (i.e., essentially the company game plan) for a two-year planning horizon. In the early 1980’s, the Oliver Wight Group would rename Game Plan ning to what it’s called today – Sales & Operations Planning (S&OP).
He also realized that the new DRP solution, along with the DRP/MRP integration could be used as a financial planning and budgeting tool. The pro jections would form the foundation for the annual plan. As a result, Abbott’s top management was able to use their operating system to put together
their 1978 annual budget using the very same sys tem they used to manage their day-to-day business.
Princess Auto Ltd – applying the concepts to retail
Princess Auto Limited (PAL) is a national, Canadi an, hard goods retailer with 51 stores located from coast-to coast, selling a wide variety of prod ucts, targeted to help their customers - the “fig ure-it-outers” - do, fix, tinker and make things. The stores and online portal offer their predominately male customers approximately 15,000 products, sourced from more than 400 merchandise vendors located around the globe, flowing through a net work of three distribution centers.
In 2015/16 it became one of the first retailers to completely manage its business using the Flowcast ing process, managing the entire supply chain from a forecast of demand, by item, by store (and web store). They use the consumer demand forecast to calculate a series of integrated, time-phased inven tory flow plans (for a 52-week planning horizon) from the store to the supplier factory.
The projections of product purchases are shared with their merchandise vendors in the form of a supplier schedule, so the vendors have visibility to see future requirements and plan accordingly. The vendors are beginning to use these projections to plan raw materials and production and are adher ing to the concept of “silence is approval” – that is, if they see something in their schedule that looks odd, they contact their respective analyst. Other wise, they are expected to supply.
The unit projections at all levels are automatically translated to different languages of the business:
- In dollars for finance and merchandising to aid in budgeting and gaining control of the business
- In cube, weight, and activity for distribution, transportation, and retail operations to provide volume projections and convert the projections to resource and capacity requirements
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The new planning process develops upto-date consumerdriven, integrated plans that are valid across the entire value chain, including plans that span multiple organizations.
The new planning process develops up-to-date consumer-driven, integrated plans that are valid across the entire value chain, including plans that span multiple organizations. Princess Auto Ltd and its trading partners now have, for the first time, a complete model of their business - that is, a fu ture-dated digital twin of the supply chain - con taining all projected product flows from factory to front door for an extended planning horizon of 52 or more weeks. The result is improved control over the business.
High-level sales plans and targets are connected to and influenced by the day-to-day operating plans based on what is and isn’t selling. This gives top management the ability to identify issues and opportunities to meet their financial plans and targets. In addition to the increase in in-stock
and resulting sales, they have achieved improved inventory productivity throughout the extended organization.
They are managing their business to a single set of numbers whereby all departments, including suppliers are driven by a common forecast of con sumer demand and each department’s plans are the translated version of this forecast into actionable information with which to improve service, cost, and productivity.
The planning process is agile and flexible, and reca librates the entire value chain daily based on what is and isn’t selling, in addition to new strategies and tactics agreed upon by senior management. In addition, the bottoms-up item level projections have provided the business with the information required to aid in the annual budgeting process and ongoing management of the business.
The item/store forecasts in units are converted to financial sales projections, and then aggregated to category, department, and sub-department level to provide the starting point for the baseline budget for the upcoming year. The impacts of additional strategies and tactics are then added to the calcu lated baseline to arrive at the budget, or business plan. A similar exercise is done to develop project ed inventories and purchases since the new process develops long term item/location inventory and purchase projections.
Given the fact that the new planning process is always recalibrating based on the latest information it has provided the executive leadership team with a continuous, forward-looking critique of how well the business plan is being realized – essentially a retail sales and operations planning process, with the added benefit of connecting lower-level plans to the higher-level goals of the business.
Instead of looking in the rear-view mirror to evaluate the plan, the executive team has the ca
pability to assess the forward-looking plan and to determine where the plan may be at risk – giving them time to make any tactical adjustments neces sary to stay on track.
The COVID-19 pandemic and resulting impacts to the retail supply chain has highlighted the importance of agility and flexibility – the ability to quickly assess, pivot and re-plan based on current and fluid market conditions. For Princess Auto Ltd, the new planning model provides a rigorous and complete planning approach that has allowed them to quickly re-plan the entire integrated supply chain, assess risk areas and, where possible, take advantage of opportunities.
As an example, as COVID restrictions were im posed and then relaxed, market by market, the new planning process was able to translate updated demand plans into revised projections of demand, supply, inventory, capacity, and financials for all stakeholders to plan to and collaborate on – includ ing merchandise suppliers.
This next level agility and planning flexibility allowed them to recalculate product flows quickly and remain focused on delivering to the custom er who, during this time and as expected, shifted more demand online.
The Flowcasting process and store-centric con sumer-driven planning and fulfillment model has measurably and significantly delivered the follow ing benefits:
- Improved daily in-stock rates to consistently 97-98% for all products, channels, and planning scenarios during a period of significant growth –both online and offline
- Improved inventory flow to the store shelf, re sulting in a reduction in backroom inventory and congestion in most stores
The COVID-19 pandemic and resulting impacts to the supply chain has highlighted the importance of agility and flexibility - the ability to quickly pivot and re-plan based on current and fluid market conditions.
- Significantly reduced online order cycle times because of planning and fulfilling online customer orders from store level
- Improved overall margins because of reduced costs for online customer orders
There is no doubt that customer demands and sen timent are shifting, driven by the shift to a digital world and amplified by disruptions like the global pandemic. Princess Auto Ltd has connected its supply chain from consumer to factory using the Flowcasting process and enabling solution.
The entire retail supply chain is re-synchronized daily, based on yesterday’s sales and inventory changes. This new channel-agnostic, planning and fulfillment model combines the best of customer driven, integrated planning and store level fulfil ment to move as close as possible to the customer,
reducing customer order cycle times and last mile fulfillment costs. And, it allows them to be in stock – for any channel desired by their customers.
They can plan for any business scenario desired and have the capability to envision and re-plan the entire, extended supply chain as global and local events dictate. These agile and flexible planning capabilities are serving them well as they continue to deliver industry leading in-stocks, inventory performance and customer journeys.
Most importantly, they are managing their busi ness to a single set of numbers – having essentially a model of how they wish to do business, spanning their entire ecosystem. It’s a concept that originated in manufacturing over 40 years ago, thanks to the pioneering work of, among others, Andre Martin, Oliver Wight, Darryl Landvater and Abbott Labs, and one that is being realized today by smart, for ward-thinking retailers.
Despite the challenges of the COVID-19 global pandemic, Canada’s leading luxury jeweller has rebounded, positioning itself for further growth //
By Mario ToneguzziBirks Group, a leading operator of luxury jewellery stores in Canada, has been a main stay of the retail landscape since it opened its first store in 1879 on St. James Street in Montreal.
Its founder, Henry Birks, was from a British sil versmith family, with a deep passion for jewel lery.
Today the company operates 24 stores under the Maison Birks brand in most major metropolitan markets in Canada, one retail location in Calgary under the Brinkhaus brand, one retail location in Vancouver operated under the Graff brand and one location in Vancouver under the Patek Philippe brand.
Bijoux Birks fine jewellery collections are also available through select SAKS Fifth Avenue stores in Canada and the U.S., select Mappin & Webb and Goldsmiths locations in the United Kingdom, in Mayors stores in the United States as well as several jewellery retailers across North America and the E.U.
In its most recent 2022 fiscal year, which ended March 26, Birks had year-over-year sales growth
of 26.7 per cent with net sales of $181.3 million, an increase of $38.2 million, yielding gross profit of $76.2 million, an increase of $19.9 million, or 35.3 per cent, compared to fiscal 2021. Overall, the company reported a positive net income of $1.3 million, an improvement of $7.1 million, compared to a net loss of $5.8 million recorded in fiscal 2021. In short, it’s rebounded well from the pandemic and is poised for growth.
Jean-Christophe Bédos, President and Chief Executive Officer of Birks Group, who has been with the retailer for more than 10 years, suggests that the financial results speak to the retailer’s ability to deliver sustained growth across the business under even the most challenging of circumstances.
“In fiscal 2022, Birks has shifted from recover ing from the impacts of COVID-19 to growing
beyond pre-pandemic levels, as our results are strong not only compared to fiscal 2021, but also compared to fiscal 2020, which was not im pacted by COVID-19,” he explains. “Our return to profitability is a significant milestone that is indicative of the success of the strategies we implemented to overcome the challenges brought about by COVID-19 during the past two years, and of the turnaround phase of our strategic plan that began pre-pandemic. I believe that the com pany today is in a stronger position to achieve its long-term objectives, and I am confident in our potential to achieve meaningful growth as we continue to prioritize investments that we believe will drive shareholder value.”
In 2021, the Maison Birks Calgary flagship store was renovated. The complete renovation of the 5,465-square-foot store at the CORE Shopping Centre was the first to unveil a Birks collection 1,500-square-foot shop-in-shop. The boutique highlights Birks Group’s own extensive Birks bridal and fine jewellery collections.
The CORE location also houses an assortment of international timepiece and fine jewellery brands including Rolex, Breitling, Longines, Marco Bicego, Montblanc, Roberto Coin, TAG, Tudor, and Wolf. The renovations unveil a new design concept for the Rolex shop-in-shop at 1,210 square feet.
“We’re working at the moment on a few things,” says Bédos. “We see the evolution of the business going more urban in the big urban areas - the major cities like Vancouver, Calgary, Edmonton, Toronto, Ottawa, Montreal and Quebec City. These are the large pockets of growth that we see. In terms of store performance, we foresee that we might have to close some stores because either they are not performing to the level that we expect and our expectations are getting higher or simply because from a strategic point we want to focus on strong areas.”
“...the company today is in a stronger position to achieve its long-term objectives, and I am confident in our potential to achieve meaningful growth as we continue to prioritize investments...”
- Jean Christophe Bédos, Birks Group
The first year or so of the pandemic, beginning back in 2020, was a call to action of sorts for Birks to essentially operate its business behind closed doors. Canada was quite strict with the lockdowns in contrast with other parts of the world, particularly in provinces like Ontario and Quebec. However, the company’s ecommerce sales tripled during the pandemic, and curbside pickup became a staple of the business during the health crisis.
“In 2021, the lockdowns obviously weren’t as long,” he recognizes. “Our industry benefited from a transfer of consumption among consum ers who were still in a position to purchase but weren’t able to travel or enjoy entertainment and luxury such as hotels, spas and restaurants. We saw a significant amount of transfers of con sumption to watches and jewellery. 2021 was a good year for us.”
Increasing network?
Bédos said the company manages two brandsthe Maison Birks as well as the other jewellers that are part of the company’s overall network.
“We might not consider increasing the network of stores for Maison Birks,” he admits. “In fact, we might actually consider closing some stores and work on improving the customer experience, the store contribution store by store, and focus on the development of our popular brands in order to bring luxury to Canada. We are work ing on developing our proprietary brand - the jewellery brand that we call Bijoux Birks. And we are making our jewellery collections avail able outside of our own stores with a network of jewellery partners. We started this approach in Canada, and it’s doing very well. In fact, we’re ex tending it to other areas such as Europe and the U.S. and will consider other parts of the world as we roll out the strategy for our jewellery brand.”
Bédos said there is also potential to expand with more dedicated stores with high-end brands such as the Brinkhaus, Graff and Patek Philippe brands.
Part of the retailer’s strategy for the future is strengthening its e-commerce to be able to service the areas in which it does not have a presence. Throughout the pandemic, much of the company’s focus went to improving that experi ence, investing in it and developing it, becoming a priority.
Bédos said today’s consumer is younger and therefore more proficient online, displaying less resistance to the mode of purchasing and a greater level of comfort using technology. And, he says, there’s also less resistance to consuming luxury online.
“The pandemic has accelerated a trend that already existed pre-pandemic,” he says. “But, there is definitely much more of a tendency to purchase big ticket luxury items online today. It’s what we’re currently experiencing within the watch and jewellery industry.”
Bédos referred to a book by retail expert Doug Stephens, saying that today’s customer is expect ing the in-store retail experience to be mean ingful and relevant and not just transactional. Because, he explains, if it’s just transactional, there is no need for a store because consumers can simply go online and find what they’re look ing for.
“Stores are becoming more and more experien tial,” he asserts. “And, in our case, we represent high end brands that all bring a higher level of experience. As we renovate our stores, the quality and connectivity of our shops-in-shops is in creasing and improving. It’s a direct response to
the level of service that our clients are expecting from us, which is definitely evolving more to wards experiential.”
As the retail sector comes out of the pandemic, Bédos says there is some sense of prudence on the part of consumers due to rising interest rates. However, he goes on to explain that inflation does not always result in negative impacts for the luxury industry.
“Inflation is not always a bad thing,” he suggests. “There have been inflationary periods in the past when customers have purchased significant stones, meaningful pieces of jewellery or import ant watches to celebrate milestones. People don’t often postpone milestones, despite what’s hap pening around them. And we are in the business of marking celebrations.”
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In the throes of a labour crisis, retailers across the country need to develop a deeper understanding of today’s employee needs in order to secure future success and growth
//
As employee needs are changing, retail compa nies are encouraged to adapt in order to pro vide enhanced working conditions, which include flexible work schedules, more vacation time, and greater transparency with staff concerning compa ny changes. And, it’s becoming increasingly critical for retailers to respond to these evolving needs, says Suzanne Sears, President of Best Retail Ca reers International Incorporated, who recognizes a number of issues that employees are facing at store level, adding that retailers must develop a deeper
By Shelby Huatalaunderstanding concerning the things prospective employees are looking for while job hunting, and how they can improve the experience they offer.
Adaptation required
“Retailers need to adapt to a new environment and evolving employee needs,” she asserts. “Employ ees don’t need retailers. Retailers need employees. And, more importantly, they need to provide their employees with a reason to devote themselves to
the company and the brand. Simply giving them a paycheque at the end of the week just isn’t good enough anymore. It’s a tough time to be in retail. The whole idea has got to be about giving rather than taking. The retailers that provide more for their employees generally do better than those that don’t.”
To provide a better space where employees want to work, Sears suggests providing flexible time, more time off, and the offer of more than minimum wage with increased benefits.
“Retailers hate uncertainty and want to be able to get prospective employees in and working as soon as possible,” she says. “But if they don’t offer flex ibility, then they aren’t going to attract any of the talent that they need. Retailers absolutely have got to start offering flexible time whether they would like to or not.”
Sears goes on to explain that time flexibility pro vides employees with greater control over their schedules and ensures that they aren’t locked into a set number of hours worked each week. It allows them to find more of a balance between work and life, she says, which is what many among the younger generations are looking for perhaps more than anything else.
“You can’t sell the two-week-a-year vacation time to prospective employees anymore,” she asserts. “It’s not an enticement. People might take the job, but they’re usually gone as fast as they can leave. Retailers have got to get used to giving their employees three to four weeks off every year. And they are going to have to get used to the fact that people don’t want to work 52 weeks a year. They just don’t.”
If retailers don’t want to provide more than two weeks off per year, Sears suggests providing the op
tion to employees to take an extra week off, unpaid. Traditionally, Sears says this has not been custom ary, but suggests that it’s a good idea for employers to start offering it.
Minimum wage in Ontario is currently set to $15.50 an hour, but Sears says this is not nearly enough to attract the best talent.
“I get a lot of push-back on this,” she says. “But re tailers have to start offering salaries that are mean ingful. And even though the minimum wage is $15.50 an hour, you are really not going to be able to promote that wage to very many people. That is still only about $620 a week. Nobody can live on that money.”
“Retailers have got to get used to giving their employees three to four weeks off every year. And they are going to have to get used to the fact that people don’t want to work 52 weeks a year. They just don’t.”
- Suzanne Sears, Best Retail Careers International Incorporated
When living expenses are rising, the minimum wage just doesn’t cut it. Sears suggests that most retail workers who work in a city such as Toronto don’t actually live there because they can’t afford to. It’s a combination of circumstances that Sears says is keeping people away from the industry. In addition, she says that a disproportionate number of women with children are opting out of working within the industry, unable to earn enough to pay for the required daycare costs.
Despite gender, however, the cost of living in Canada is rising, and Sears says retailers need to do better, offering a suggestion of sorts.
“Retailers have got to pay their employees more,” she says. “Either that or offer more comprehensive benefits. It’s just a fact of the matter when trying to attract talent to retail organizations today, particu larly those of frontline positions.”
Sears says that another benefit retailer could con sider offering is a vacation savings fund, in which employers match the amounts their employees pay into it.
“If the employee places in one dollar, the employer places in one dollar,” she explains. “It encourages employees to work because the more they do, the more money they save to go on vacation. It’s a tre mendous benefit that costs next to nothing for the retailer. It’s certainly less expensive than giving out raises. But companies are just so rigid. They’ve got to learn how to flex a little, which is traditionally very difficult for them.”
Respect is key “Retail employees, in general, don’t feel valued,” she says. “They also have concerns related to their health and safety as a result of COVID-19. And those concerns aren’t going away. As a result, there’s been a shift in priority. Employees didn’t feel as though their employers were taking care of them during the pandemic, and so they are taking care of themselves now. It’s a sentiment that’s spawned a ‘me first’ mentality among workers. And unless retailers can convince them that there is a lot in it for them to join their brand, they won’t be interest ed. Retailers have got to elevate their treatment of their employees, raising the level of experience that they receive and rewards they enjoy for being part of the team.”
One way by which retailers can make their staff feel more valued and respected at the workplace is by regularly including them in decisions that impact the company and their jobs.
“Retailers could be very successful and unleash unlimited potential if they included their staff in their decision-making,” she says. “Including them in decisions around wage setting and the develop ment of training programs can be hugely beneficial toward gaining a better understanding of employee needs and the ways in which they can best meet them.”
“Employees didn’t feel as though their employers were taking care of them during the pandemic, and so they are taking care of themselves now. It’s spawned a ‘me-first’ mentality among workers.”
- Suzanne Sears, Best Retail Careers International Incorporated
Technology is key when it comes to training em ployees. But could retailers be using it more on the floor?
Sears suggests that employees should be able to use the technology they already have - their smartphones. By using smartphones, employees are equipped with the tool necessary to look up an item right away instead of traveling to the back of the store to find an answer. It would also allow them to show customers other items in the store, enhancing engagement with and focus on the customer, while also eliminating friction from the employee experience.
“Some retailers undervalue the idea of arming staff with their phones,” she says. “What could be better than staff that are already armed with all of the in formation they need to service the customer? But, a lot of companies don’t see it that way and don’t
want their staff to use their phones while working. It’s a lost opportunity to enhance the in-store expe rience and give customers a reason to return.”
In the end, Sears says that retailers have to do better, enhancing the perception of a job in retail, offering top talent a reason to work for the brand. Otherwise, she adds, they’ll continue to experience turnover and a lack of the talent they require.
“People want to feel valued within the job they do and by the employer that they work for. This means paying them a living wage, providing them with the flexibility that they require in order to live a productive and happy life outside of work and competitive benefits. Anything short of this is not going to entice anyone to the business today and retailers will continue to fall flat with respect to the experience they offer to both the customer and retail employee.”
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