Retail Insider the magazine Volume 2 Issue 4

VOLUME TWO

ISSUE FOUR

The TRENDS issue 2024

Identifying the most significant factors presenting challenges and opportunities related to retail success throughout the coming year >>> Pg. 12

International Retailers Entering Canada

The Rise of AI-Enabled Experiences

IKEA Canada: Accessible to more

A comprehensive listing of the brands entering Canada in 2023 pg. 16

Salesforce’s ‘Retail Predictions’ reveals a future enabled by AI -driven technologies pg. 28

Leading with a focus on convenience, accessibility and sustainability pg. 32

✅ Develop talent ✅ Scale efficiently ✅ Streamline store operations

“There is a clear correlation between Progress Retail and the positive impact on our store sales and operational metrics.”

Justin Asgarpour Chief Vision Officer

UPFRONT // PUBLISHER’S DESK

Retail industry faces significant potential impact posed by a range of trends and influences The retail industry is ever-evolving, reacting and adapting to a range of different factors and influences related to everything from consumer behaviour and sentiment to economic and market conditions. It’s this real-time requirement to be flexible and nimble, to be able to pivot and shift, responding with precision and accuracy, that makes following retail operations so interesting and unique. However, it’s also a layer of the business that results in the greatest amount of challenges and complexity. And so, understanding the trends and forcing functions that are set to impact strategy is imperative to ensure a retailers’ ability to continue building on success and growth. With this in mind, this edition of Retail Insider the magazine explores what might lay on the horizon for the industry, presenting either opportunities or challenges throughout 2024.

We begin our exploration into the most significant trends in 2024 by sitting down with retail experts Bruce Winder, Lisa Hutcheson, and Lia Grimberg. Collectively, the trio of analysts offer an insightful glimpse into factors that include inflation and the pervading uncertainty of global economic conditions, the continued development and proliferation of the use of technology, shifting consumer attitudes, and more.

As we’re now well and truly into 2024 and a new year of retail, I offer my list of international retail brands that entered Canada over the course of the past year. In addition to providing a comprehensive rundown of new entrants to the Canadian market, I also share information related to expansion plans being considered by the brands.

We also speak with Michelle Grant, Director of Strategy and Insights, Retail and Consumer Goods at Salesforce, in order to discuss the continued impact of technology on the retail environment and the ways in which brands can leverage innovation to enhance the shopping experience for their customers, elevating the level of interaction and engagement with them. And, Grant emphasizes the role played by data in helping to drive a deeper understanding of today’s consumer and their evolving needs.

And, we also have the pleasure of spending some time with IKEA Canada’s newly appointed CEO and Chief Sustainability Officer, Selwyn Crittendon, about the brand’s current focus, its vision of the future, and the ways it continues to enhance its experience, making it even more accessible to more Canadians across the country.

I sincerely hope that you enjoy the content within this edition of Retail Insider the magazine and look forward to any feedback that you and your teams might have.

Sincerely,

Craig Patterson Publisher craig@retail-insider.com

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IN THIS ISSUE //

Volume two, Issue four 12

12 // Retail Trends Retail Trends 2024 As merchants of all different formats and sizes across the country continue to adjust to the postpandemic environment, many are beginning to look toward opportunities to grow their businesses, keeping an eye on the factors and influences that pose the greatest potential to facilitate or prevent desired growth. With this in mind, Retail Insider the magazine sits down with industry experts to gain their insights and prognostications concerning the next 12 months of retailing in Canada.

16 // Industry Report International retailers that

entered Canada in 2023

Each year, a plethora of international retail brands enter Canada with the opening of their first physical stores within the country. Craig Patterson, Founder of Retail Insider, presents his impressively comprehensive list of the international brands that entered the Canadian market in 2023 with a physical store presence. including details related to the brands’ future expansion plans.

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16 28 // Retail Predictions The rise of AI- and tech-enabled retail experiences As we continue to move deeper into 2024, a renewed sense of optimism and excitement is beginning to bubble up in and around retail circles.

Consumer confidence remains on the uptick, however slightly. Inflation is beginning to level off.

And most of the kinks within the global supply chain that had been wreaking so much havoc, impacting so many, have begun to dissipate. As a result, Salesforce’s Michelle Grant explains the ways in which the next 12-plus months will present retailers operating within the industry with boundless opportunities to get closer to their consumers and enhance the experiences that they provide for them.

MASTHEAD //

Departments 03

Publisher’s Desk

06

Insider Insights

08

Main Street Matters

10

PUBLISHER Craig Patterson ASSOCIATE PUBLISHER Dustin Fuhs EDITOR-IN-CHIEF Sean Tarry

Evolution of Retail

GRAPHIC DESIGN GBC Design

32

CONTRIBUTORS Andrea Bourgeois, Shelby Hautala, George Minakakis, Craig Patterson, 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.

32 // Brand Profile IKEA Canada: convenient,

accessible and sustainable.

therimagazine.com

The home furnishings giant recently appointed a new CEO, and he’s focused on helping to create better every day lives for Canadians living all across the country. therimagazine.com | 5

UPFRONT // INSIDER INSIGHTS

Software dilemma?

Data released by Gartner Digital Markets reveals that more than half of retailers expect to purchase new software within the next year, with nearly half admitting to regretting a software purchase made within the past year-and-a-half.

58%

of retailers plan to spend more on software throughout 2024

49%

of retailers regret one or more software purchases made in the past year-and-a-half

Consumer confidence rebounding Consumer confidence is bouncing back, slowly but surely. At least, that’s according to recent data generated by Trading Economics, which says that Canadian consumer confidence increased in January 2024 as it steadily approaches traditional levels.

49.46

52.09

The average Canadian Current Canadian consumer confidence rating consumer between 2010 and 2014 confidence

35.6

The all-time low registered in April 2020

Continued food price increases The 2024 edition of Canada’s Food Price Report was recently released, revealing expected continued price increases throughout the year. The 14th annual iteration of the report, which is an annual collaboration between research partners Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia. states that food prices will increase a further 2.5 to 4.5 per cent over the coming year.

+5-7%

+1-3%

Bakery

Dairy

+5-7%

+3-5%

Meat

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Seafood

+1-3% Fruit

+5-7% Vegetables

Meeting real-time consumer demands

46%

Recent SOTI research indicates that nealy half of Canadian consumers expect to be able to pick up an item ordered online from a physical store on the same day. More than 4 in 10 (41%) will look elsewhere if delivery or pick-up of an item takes more than two days. And, a whopping 77% of consumers expect to always know the status of their orders. It’s research that highlights the need for an increasingly efficient retail supply chain that provides flexibility for the merchant and visibility for the consumer.

From survival to growth According to Square’s Future of Commerce report, despite recent struggles experienced by many operating within the industry, the majority of Canadian retailers surveyed state to be looking ahead to 2024 with growth top-of-mind. The fourth annual edition of the report was developed in collaboration with Wakefield Research, and provides a comprehensive analysis concerning the evolution of businesses across the country and the perspectives of their owners and customers.

61%

of Canadian retailers say that they are eager to expand their businesses

52%

of Canadian retailers are prioritizing their brick-andmortar presence

71%

of Canadian consumers typically shop in-store

41%

42%

of Canadian retailers are prioritizing the use of AI-powered product recommendation tools

of Canadian retailers say that they are implementing faster and easier communication channels

62%

of Canadian consumers prefer in-store loyalty program rewards

Meeting shoppers at the edge According to Salesforce’s recently published Connected Shopper Report, today’s consumer is more than ever expecting retailers to meet them where they are regularly discovering, which is increasingly outside of a brand’s physical and digital spaces.

50%

Social media

22%

Influencers

14%

Messaging app

11%

Live-stream video

8%

Video or live chat

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UPFRONT // MAIN STREET MATTERS

Shopping local to support contributions made by small businesses It’s time for Canadian consumers to act on good intentions by engaging and shopping with their local small businesses // By Andreea Bourgeois, Director of Economics, Canadian Federation of Independent Business

The retail industry is of significant importance for the economy. It contributes approximately 5 per cent to the Canadian GDP, and it employs 12 per cent of the total workforce. The vast majority of businesses (99.9%) operating in retail are small or mid-sized firms (1 to 499 employees).

How is it going?

Optimism in the retail sector has been running at abysmal levels. It has been on an overall downward trend for the past year with a minor uptick mid-year. Retail businesses are lagging all other businesses in optimism. This gap started mid2021 and has been widening gradually.

Not all retailers are affected to the same degree by this lack of confidence. For example, businesses selling essential items, such as grocery stores, specialty food stores, and health and personal care stores are reporting somewhat better optimism. And, it’s not surprising, since their products are essential, and consumers tend to substitute rather than give them up altogether.

On the other hand, retailers that are selling big-ticket items such as automobile and other motor vehicle dealers, furniture stores, building materials dealers, and electronics and appliance stores are the ones suffering from the lowest optimism.

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Why do retailers feel rather pessimistic nowadays?

This is the time of the year when many businesses are beginning to see the first results of newly employed strategies, making tweaks to their websites, planning wage adjustments as we head deeper into the new year, or looking into changes in product lines or technology.

Some are still doing these things, but very few are looking forward to the year ahead with much excitement. The vast majority hope to make enough revenues to cover expenses. Except during the pandemic, we have never seen such a muted current business sentiment for retailers.

But the main culprit of feeling so down is the lack of demand, an indirect consequence of high interest rates and higher prices. High interest rates directly affect the demand for expensive items where financing is usually part of the deal.

Therefore, retailers selling big ticket items feel the pinch much more than others. No appetite for financing at high rate, no new car, or new appliance and so forth. Consumers are very reticent to make large purchases, therefore retailers are

stuck with inventories, and no revenues coming in.

For various items that are less expensive but not essential, the slowdown in demand is not as marked, yet it’s still impacting business optimism. For essential items, most consumers tend to substitute in terms of preferences and purchase less costly products, but the demand is clearly less impacted by high prices.

Shopping local has many benefits Small businesses undoubtedly make significant contributions to their communities. In fact, when consumers shop at a small, independent retailer, 66 cents of every dollar stay within the local economy. On the other hand, only 11 cents of every dollar are recirculated back into local economies when consumers shop at big businesses with physical locations, and only 8 cents stay local when Canadians buy from online giants.

However, despite the many community contri-

butions small firms make, most consumers don’t support them on a daily basis even though they recognize the importance of shopping local. A strong majority (92%) of Canadians said they love having small businesses in their community, but only 13% shop more at small businesses. In addition, most (78%) small retailers said they’re losing revenue and customers to big businesses.

We encourage consumers to challenge the way they think about shopping local. There are many benefits to it: personalized services, supporting local jobs and economies, and fostering a great sense of community. Even a small change can make a big difference.

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Andreea Bourgeois is the Director of Economics at the Canadian Federation of Independent Business (CFIB), Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region, 22,000 of whom are operating in retail.

Image by huePhotography

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UPFRONT // EVOLUTION OF RETAIL

Retail in 2024: a world transformed by technology and tenacity Retail leaders across the industry are reimagining the shopping experience by virtue of forward-thinking agility // By George Minakakis, Founder and CEO of Inception Retail Group, and author of The New Bricks & Mortar Future Proofing Retail

As the clock ticks towards a new era in retail, we stand at the crossroads of innovation and tradition. In Canada’s vibrant market, retailers are navigating through a digital revolution, grappling with economic uncertainties, and redefining consumer experiences. But what lies at the heart of this transformation? Is it artificial intelligence’s (AI) dazzling and hopeful allure, optimized supply chain robustness, or the personalized touch of customer engagement? This exploration delves into how today’s retail leaders are reshaping tomorrow’s shopping experiences, meeting challenges head-on with agility and foresight.

Digital transformation and omnichannel integration The imperative of digital transformation and omnichannel integration is central to this evolving landscape. Retailers are tasked with crafting a cohesive experience that bridges the online and offline worlds, providing a fluid and consistent shopping journey. This integration is more than just a technological upgrade; it’s a strategic move to harness the rich data generated by consumer interactions. Surprisingly, over 60 per cent of businesses are still in the hopeful stages of developing omnichannel strategies, thereby missing out on leveraging consumer data, which will rapidly become a coveted asset on the balance sheet.

Data will become more valuable than inventory and, therefore, a kingmaker of retailers.

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Supply chain optimization and resilience building The need for supply chain optimization and resilience building parallels digital advances. The lessons from recent global disruptions have been clear: a resilient supply chain is non-negotiable.

Retailers are now pivoting towards data analytics for enhanced demand forecasting, diversifying suppliers to mitigate risks, and embracing automation for logistics efficiency. However, this shift is tempered with caution; a race to the bottom with low-priced product lines can expose brands to unethical practices. In an era where consumers increasingly value environmental and social responsibility, commitment to sustainable practices is an ethical and strategic differentiator.

Customization and personalization Another critical aspect shaping tomorrow’s retail is focusing on a customer experience that delivers customization and personalization. In a landscape where AI-driven capabilities are creating a divide in retail operations, personaliz-

ing customer experiences becomes paramount.

This involves recruiting the right talent and investing in their development to embody and convey the brand’s value proposition effectively. With the majority of retail transactions still occurring in physical stores, and considering that over 80 per cent of consumers begin shopping online, creating seamless experiences across all channels is crucial. Retailers must remember that at the heart of transactions are humans seeking products and meaningful, emotional experiences - telling and selling the brand story through a strong deliverable value proposition is key to business longevity.

Adaptive retailing And now, the idea of adaptive retailing emerges as a game-changer in this context. Adaptive retailing is about being agile enough to respond rapidly to changing consumer trends and market dynamics. This agility manifests in flexible business models, leveraging data analytics, responsive supply chain management, and the provision of seamless customer experiences across all channels. As AI drives more innovation, fostering faster and more revolutionary ideas, there is a need to be more attuned to becoming innovative and addressing cultural and climate change sensitivities.

The economic shifts of 2024 also present a mix of opportunities and risks. Many retailers are already discussing economic headwinds that have been cooling their trendsetting growth over the last two years. Couple that with the weight of inflation and higher interest rates, and consumers may have reached their best before dates by borrowing to spend haphazardly. Another trend to watch is the potential consolidation of struggling retail chains within the same category. This strategy, which will reduce overhead costs and find synergies in supply chains and omnichannel capabilities, could be a boon for healthy brands.

However, it’s a delicate balance, as consolidating dissimilar or weak brands would be ill-advised in this environment.

Artificial intelligence Lastly, AI is the engine of retail evolution and perhaps even revolution. Moving past the initial hype, AI is now a critical element of retail strategies. From personalized recommendations to AI-powered customer service bots and predictive analytics, AI is set to enhance every facet of the retail experience. However, the challenge lies in the cost of developing AI capabilities, which could create a divide between haves and havenot retailers. It is good to see that Walmart and Canadian Tire, among a few others, have adopted GPT assistants for their home office teams.

However, while large companies in profitable industries are generally slow to adopt new technologies, retailing operates among continuous disruptions, some subtle and others transformational. And history has shown us that small retailers can emerge with disruptive technologies and suddenly lead in sectors. Regardless of the size of this industry, retailers operating within it have no choice but to adopt and adapt to AI or become vulnerable to unexpected forces, because the profitability of brands is not guaranteed by doing nothing.

As we navigate through 2024, the retail sector in Canada is at a decisive juncture. The successful retailers will be those who can adeptly blend technological advancements with a deep understanding of consumer needs, crafting experiences that resonate on a personal level. The future of retail is not just about selling products; it’s about creating connections and experiences and adapting to the ever-evolving consumer landscape.

This requires vision beyond the current day nomenclature and catchphrases. Nevertheless, everything we do in 2024 must serve to meet the potential super-cycle of growth in the second half of this decade.

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George Minakakis is the CEO of Inception Retail Group, author of three books, and keynote speaker. therimagazine.com | 11

FEATURE // RETAIL TRENDS

Retail TRENDS 2024

Identifying the most significant factors presenting challenges and opportunities related to retail success throughout the coming year// By Sean Tarry

T

he retail industry has certainly faced some difficult times over recent years, battling through a pandemic, massive supply chain disruptions, and monstrous inflation, to name just a few of the obstacles to growth that have been at play. However, as merchants across the country, large and small, have now adjusted to the post-pandemic environment relatively well, many are beginning to look toward opportunities to grow their businesses, keeping an eye on the factors and influences that pose the greatest potential to facilitate or prevent desired growth. With this in mind, Retail Insider the magazine sat down with three industry experts – Bruce Winder, Founder, Bruce Winder Group; Lia Grimberg, Founder Radicle Loyalty; and Lisa Hutcheson, Managing Partner, J.C. Williams Group – to gain their insights and prognostications concerning the next 12 months of retailing in Canada.

Bankruptcies, mergers and acquisitions

High interest rates combined with extremely turbulent and uncertain times across the country over the course of the past few years have put a real strain on consumer confidence, resulting in a hesitancy to spend. And, these difficult times have also taken their toll of retail businesses – a toll that may come to a head in 2024.

“Issues around interest rates have paused consumer spending to a degree. Hopefully at some point this year the Bank of Canada will lower

rates, carefully bringing them down a little bit to help alleviate some of the strain on the economy. However, as a result of a number of years of struggles since the onset of the pandemic, I believe we’re going to see some carnage in the form of bankruptcies. Those who don’t survive were the brands that weren’t strong enough to weather the storms that we’ve gone through over recent years. Over the next number of months, many will quietly close down business. Others will need to sell, resulting in quite a bit of merger and acquisition activity across the industry.” - Winder Consumers’ search for value

As a result of the most recent difficult economic period, consumers have placed constraints on their spending, leading them to seek brands that are offering them something meaningful in return for their patronage.

“At the moment within retail, particularly from a loyalty program perspective, there’s a lot of sameness being offered. Consumers are craving value from their engagement with brands.

It presents retailers with a great opportunity to build and offer programs that offer value, both from a dividend perspective as well as from a soft benefit point-of-view. As consumers continue to go through difficult financial times, retailers need to be thinking of the ways by which they can help save them time and money, offering them something meaningful. To do this properly, brands therimagazine.com | 13

Image by Anawat_s

need to understand their consumers at an extremely deep level and the things that make their relationship with them unique.” – Grimberg “Value is absolutely the name of the game in retail at the moment. Consumers are constantly wondering how they can get the most for their money. And so, the retailers that can provide the most value to the consumer – value being what you get divided by what you pay – is going to win within this environment. Whether it’s through pricing, promotions, discounts, special offers, enhanced loyalty benefits, or anything else, the brands that understand what their consumers are looking for, and are able to deliver that to them, will have a huge competitive advantage going forward.” - Winder Experience

In addition to value, and perhaps playing a part in creating it, experiences are being increasingly sought after by consumers. With the consistently increasing price of goods, many consumers 14 | Retail Insider the magazine | Volume two Issue four

across the country are opting to spend their money in different ways, providing retailers with an opportunity to give them what they’re looking for.

“In addition to value, today’s consumer is really looking for an experience. Pandemic-related restrictions have long lifted. But the social impacts that resulted still linger for many. A lot of people have remained cooped up inside their homes for more than a couple of years. But I think that many are finally beginning to get out and are now starting to crave the experiences that they remember prior to restrictions, and they want those experiences to be exciting and special.

Some brands are recognizing this, implementing social elements in to their retail offering, providing the engagement that consumers are looking for. You see this happening within a lot of the major urban shopping centres across the country.

Many are putting on events and offering forms of entertainment that draws a crowd and excites visitors, bringing some joy back to the retail experience.” – Hutcheson

Digitization

In order to remain relevant to today’s consumer, many brands are realizing that they need to invest in technology and digitize their businesses in ways that make them more accessible and convenient to shop with.

“Many recent studies and surveys indicate strongly that one of the top priorities identified by retail leaders as we head into 2024 is investing in and enhancing current technology infrastructures, further digitizing the retail experience.

Through the digitization of the retail business, brands provide themselves with the opportunity to strengthen their supply chains; improve their understanding of their customers, hence improving their relationships with them; improve customer service; create greater convenience and efficiency within their processes; and ultimately lower operating costs. It’s a digitization that’s been occurring for quite some time, and which was accelerated by the onset of the pandemic. But I think that business leaders across the country are realizing in full the tremendous opportunities that a strong digital retail ecosystem presents.” – Hutcheson Personalization

A potential byproduct of a retailer’s digital strategy is enhanced personalization. And, given the increasing penchant for customization and personalization displayed by today’s consumer, it only make sense for retailers to focus their attention on delivering it.

“Personalization is likely going to be one of the biggest differentiators within the industry in 2024. We’ve arrived at a point in time when consumers are armed with technologies and the information that they need to make informed purchasing choices and decisions. As a result, they’re increasingly expecting the brands that they shop with to create personalized experiences for them. That means everything from their

activity on a brand’s website, to digital communication to the service that they receive when in the retailer’s physical store. And so, it’s up to those operating within the industry to leverage available technologies and invest in the systems that will help them achieve these goals, enhancing the experiences that they offer their customers while strengthening the relationships that they enjoy with them.” - Grimberg Data

Supporting any digital strategy that involves a personalized customer experience is data. With it, retailers enable themselves to understand their customers and the business far better than ever before.

“The greatest advantage that any brand can gain today is through the use of meaningful data.

Clean, organized datasets can provide retailers with a comprehensive, 360-degree view of their customers, and a deep understanding of their behaviours, tendencies, wants and needs.

It provides insights that allow brands to really personalize the consumer’s shopping experiences and engagement. Going forward, data is going to be more critical to retail success than anyone has ever been able to imagine before, unlocking the ‘wow’ factor that everyone within the industry has been talking about for years.” – Grimberg As we continue to head further into 2024, it’s clear that there are a number of different factors and influences with the potential to impact retailer operations, for good or ill. From the pervading uncertainty that continues to surround the economy, resulting in a cautious consumer, to the digitization of the traditional retail experience, challenges and opportunities will be abound throughout 2024. Armed with this understanding, however, and an awareness of their ever-changing environments, retail brands across the country can position themselves well to achieve the growth and success that they are so ardently striving to achieve. therimagazine.com | 15

FEATURE // INDUSTRY REPORT

Ralph Lauren Yorkdale (Image courtesy of Ralph Lauren)

Iris Galerie at Fallsview Casino Resort in Niagara Falls

International retailers that entered Canada in 2023 Each year, a plethora of international retail brands enter Canada with the opening of their first physical stores within the country, further enhancing the Canadian retail environment >>> By Craig Patterson

Paris Saint-Germain at 399 Queen Street West (Photo by Dustin Fuhs)

Alexander Wang store at 110 Bloor Street West in Toronto.

(Photo by Craig Patterson)

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F

or this issue of Retail Insider the magazine, we’ve compiled a list of the international retailers that entered Canada in 2023. In total, Retail Insider counted 26 international retailers that entered Canada by opening first store locations — an impressive number following the COVID-19 pandemic. Many of these newly entered brands plan to open more locations in Canada, and we’ll also discuss that below.

Yorkdale Shopping Centre, which over the years has launched more first-to-Canada international retailers than anywhere, saw four new-to-Canada entrants in 2023, including Mango, Qeelin, Ralph Lauren, and Anine Bing.

The Greater Toronto Area was the target for the vast majority of international brands entering Canada by opening stores in 2023. Of the 26 international brands that opened first retail stores in Canada, 19 of those were in Toronto or its surrounding communities.

The Greater Vancouver area was home to five first-to-Canada retailer openings in 2023, spread out across the region including Vancouver’s Kitsilano area, Metropolis at Metrotown in Burnaby, and CF Richmond Centre in Richmond. Montreal and Edmonton also each boasted a first-to-Canada retail opening in 2023.

In terms of retail nodes, Toronto’s Bloor-Yorkville turned out to be the hot spot for new brands entering the Canadian market in 2023. A total of six international retailers opened stores in the affluent high-density downtown Toronto area, including: Veronica Beard, John Elliott, VRAI, Kith, Alexander Wang, and Roger Dubuis. Toronto’s

Downtown Toronto became home to four first-to-Canada retailers in 2023, two of which were at the CF Toronto Eaton Centre.

Retail Insider has been tracking international retail entrants into Canada since 2014. In the previous years that Retail Insider published the international entrants’ lists, the number of first-to-market retailers has ranged from 20 to over 50 international retailers that entered the country over a 12 month therimagazine.com | 17

period. For a breakdown of those years, view a summary at the end of this article.

ket). Israel-based Fox Group is the licensee for Mango in Canada.

Below is a breakdown geographically of where the 25 international brands entered Canada in 2023, followed by a description of each of these. Included is a discussion of what Retail Insider is aware of in terms of future expansion plans for these brands, as well.

Given the initial market expansion in Canada, Mango is expected to target opening stores in major shopping centres in cities across Canada such as Vancouver, Edmonton, Calgary, Ottawa and possibly others including the Quebec market.

Multiple locations in larger cities would be expected with the expansion. Mango is also confirmed to be opening street-front stores including one near the corner of Yonge and Bloor streets in 2024.

Where did international retailers open their first brick-and-mortar store locations in Canada in 2023?

Number total: 26 retailers Bloor-Yorkville (Toronto): 6 Yorkdale Shopping Centre (Toronto): 4 Downtown Toronto/CF Toronto Eaton Centre (TEC): 4 (2 at TEC) Greater Vancouver, BC: 4 Montreal, QC: 1 Edmonton, AB: 1 Niagara-on-The-Lake, ON: 1 Toronto, ON - Ossington Ave: 1 Toronto, ON - North York: 1 Toronto, ON - Markham: 1 Toronto, ON - Vaughan: 1 Mississauga, ON: 1 The following is an overview of the 26 brands that entered the Canadian market by opening stores in 2023, including what’s to come. The list is ordered chronologically according to store opening dates, beginning in early 2023.

Mango - February 2023 (Yorkdale Shopping Centre, Toronto): Spanish fashion brand, Mango, entered the Canadian market in February of 2023 with its first store opening at Toronto’s Yorkdale Shopping Centre. The brand subsequently opened 7 more stores in 2023 in the Greater Toronto Area including CF Toronto Eaton Centre, Scarborough Town Centre, CF Fairview Mall, Square One (Mississauga), Vaughan Mills (Vaughan), CF Markville (Markham), and Upper Canada Mall (Newmar18 | Retail Insider the magazine | Volume two Issue four

Brokerage JLL is handling the expansion.

Veronica Beard - March 2023 (Yorkville, Toronto): Upscale New York City-based women’s fashion brand, Veronica Beard, opened its first Canadian storefront at 111 Yorkville Avenue in Toronto in the Spring of 2023. The location features a unique facade in a recently renovated double-townhouse.

The new store spans about 1,800 square feet and houses Veronica Beard’s women’s ready-to-wear collection and staples such as the Dickey Jacket, scuba suiting and denim, as well as outerwear, dresses, jeans, tops, skirts, footwear, accessories and other categories.

The lease deal was handled by CBRE - Arlin Markowitz, along with Teddy Taggart and Jackson Turner, represented Veronica Beard in the deal, along with Michael Leifer of Runyon Group. The landlord side of the deal was handled by Arlin Markowitz and team members Emily Everett and Alex Edmison.

FatFace – April 2023 (Niagara-on-the-Lake, ON): UK-based fashion brand, FatFace, entered the Canadian market in April of 2023 with a store in the quaint community of Niagara-on-the-Lake, Ontario. The retailer expanded in Ontario with more locations in Newmarket, Barrie, Halton Hills, Oshawa, Burlington, and Picton, with other stores planned. FatFace is expected to expand into other provinces in Canada as it gains brand awareness.

Fox Home (Photo by Barami Lighting

The company was founded by friends Tim Slade and Jules Leaver in 1988. Inspired by the name of the black mountain ski run in Val d’Isère, La Face, FatFace was born. Product categories in FatFace stores include womenswear, menswear, children’s fashions, footwear and accessories.

Jennifer Bowyer and Jeff Berkowitz of Aurora Realty Consultants represents FatFace in Canada.

According to Aurora’s website, FatFace stores will ideally be in the 1,200 to 1,800 square foot range in tourist markets as well as high streets and shopping centres.

Paris Baguette - Spring 2023 (North York, Toronto, ON): International bakery-cafe chain, Paris Baguette, opened its first Canadian location in the spring of 2023 at the Yonge-Sheppard Centre in Toronto’s North York Area. It’s the first of many planned for Canada in the coming years as part of a franchise arrangement. Several locations opened in 2023 in markets including Edmonton, Calgary,

and Newmarket, ON. The Canadian flagship will open in 2024 at 110 Bloor Street West in Toronto.

In October 2020, Paris Baguette announced its presence in Canada via a registered Franchise Disclosure Document. At the time, the company said that it was charting the course on a Canadian expansion in Toronto, Montreal, Vancouver and other “booming” provinces and cities. Paris Baguette said in a statement that its goal is to establish at least 100 bakery branches in Canada by 2030.

Paris Baguette is a global brand owned by South Korean food-and-beverage company SPC Group.

The premium bakery-cafe concept focuses on handcrafted breads, pastries and cakes, as well as chef-inspired sandwiches and salads.

Iris Galerie - May 3, 2023 (Distillery District Toronto, ON): Unique eye artwork concept, Iris Galerie, entered the Canadian market in May of 2023 when it opened a location at Toronto’s Distillery therimagazine.com | 1917

Veronica Beard (Photo courtsey of Veronica Beard)

District. The company subsequently opened in Niagara Falls, Quebec City, Ottawa and Collingwood, ON, with plans to open about 30 stores in Canada in three years with locations typically being 400600 square feet.

The concept started in 2021 in Paris after the founder, Emeric Wehbe, was inspired to capture the beauty of eyes. Iris Galerie uses state-of-the-art photography to capture the beauty of people’s eyes and create unique artwork and can include up to five different irises. Since opening, Iris Galerie has expanded to over 100 locations worldwide.

Fox Home - June 2023 (CF Toronto Eaton Centre, Toronto): Israel-based home furnishings concept, Fox Home, expanded into Canada in the Summer of 2023 with its first store opening at CF Toronto Eaton Centre in downtown Toronto. Seven other locations opened in Southern Ontario in the Greater Toronto Area. Parent company, Fox Group, has indicated that it plans to open more Fox Home

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stores in other parts of Canada, although it’s not yet confirmed where and how many stores could ultimately open here.

Fox Home was founded in Israel in 2010, and the retailer says that it offers “a wide variety of fashionable home products while providing the consumer with a unique shopping experience, high quality and value for money.” The retailer operates nearly 100 stores around the world, most of which are located within Israel.

JLL represents Fox Home as brokerage in Canada.

Vivobarefoot – June 2023 (West 4th Avenue, Kitsilano, BC): Sustainable footwear and natural health brand, Vivobarefoot, opened its first standalone store in North America in June of 2023 on West 4th Avenue in Vancouver’s Kitsilano area.

Vivobarefoot is a certified B Corp whose goal is to connect consumers to the natural world and set a new standard in regenerative business.

Mario Negris, Martin Moriarty and Josh Cochrane of Marcus & Millichap were responsible for negotiating the lease deal.

Founded in 2012 by two seventh-generation cobblers, Galahad and Asher Clark, Vivobarefoot is based on one simple insight - barefoot footwear is regenerative to human health. A Vivobarefoot product or experience is one that literally brings people closer to nature, says the B Corp certified company based in the UK. Concept stores exist in the UK and Germany with distributors in places like Australia, Netherlands, and Tel Aviv. More Canadian locations are expected as the first location gains traction.

Mario Negris, Martin Moriarty and Josh Cochrane of Marcus & Millichap negotiated the lease deal.

John Elliott - Summer 2023 (Bloor-Yorkville, Toronto): Youthful Los Angeles-based brand, John Elliott, opened its first Canadian flagship at 83 Yorkville Avenue in Toronto in the Summer of 2023. The 2,400 square foot store carries the brand’s full range, including artisanal leather pieces, Japanese denim, sportswear, and an extensive Italian-produced footwear collection.

Jeff Berkowitz of Aurora Realty Consultants represented John Elliott in the lease deal. Arlin Markowitz of CBRE represented the landlord in the deal.

It’s also the first international location for the brand, which has only six stores globally in markets that include Los Angeles, New York City, Miami, and Aspen Colorado. Designer John Elliott founded his brand in 2012 which features pricey denim and other fashions for men and women.

VRAI - Summer 2023 (Bloor-Yorkville, Toronto): Los Angeles-based lab grown diamond retail brand, VRAI, opened its first Canadian location at 111 Yorkville Avenue in the Summer of 2023, above Veronica Beard in the same building. Customers can have stones custom-cut with private consultation rooms and an elevated experience.

Images courtesy of (top to bottom): Vivobarefoot, Mango, and Insomnia Cookies.

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Rendering of the Roger Dubuis boutique at the Park Hyatt Hotel in Toronto. (Image courtesy of Roger Dubuis)

VRAI was founded in 2014 and has 13 stores globally in the US, UK and Spain. The brand has calculated expansion plans that could eventually include a Vancouver location, according to the company’s CEO. Brandon Gorman of JLL negotiated the Yorkville lease deal on behalf of VRAI. Rivian - July 28, 2023 (The Amazing Brentwood, Burnaby, BC): California-based Electric vehicle manufacturer, Rivian, opened its first Canadian showroom in July of 2023 at The Amazing Brentwood in Burnaby, near Vancouver. The showroom is contained in a ‘glass house’ building within the shopping centre. Burnaby is the first showroom for Rivian to feature augmented reality, allowing visitors to view any vehicle they choose digitally.

Rivian launched in Canada in late 2022 with its R1T and R1S all-electric vehicle models. The R1T is a pick-up truck, while the R1S is more of a typical SUV. Other models can be purchased in the retail space.

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Burnaby is the first international location for the US brand, which has showroom ‘spaces’ in California, New York, Illinois, Washington, Georgia, Colorado and Tennessee.

Insomnia Cookies - Summer 2023 (Edmonton, AB): Philadelphia-based, Insomnia Cookies, expanded into Canada with its first location opening in Edmonton in August of 2023, and more have since opened including one at York University in Toronto. The company was founded in 2003 at the University of Pennsylvania and now has over 250 locations on or near college and university campuses across the U.S., and now in Canada. The brand specializes in cookies, ice cream and also milk and non-milk products delivered late at night until 1 a.m. or 3 a.m. depending on the days of the week. All Insomnia Cookies locations do dine-in, takeout and delivery. Plans are in place to open 50100 locations in Canada.

Chow Tai Fook - August 2023 (CF Richmond Centre, Vancouver, B.C.): Hong Kong-based, Chow Tai Fook, the world’s fourth-largest jewelry

brand, opened its first Canadian store at CF Richmond Centre near Vancouver in August of 2023.

A second location opened in Toronto at CF Fairview Mall in December of 2023. The company has further expansion plans, issuing a statement that reads: “We look forward to the growth and expansion opportunities across Canada in the years to come.”

The company, founded in 1929 in Guangzhou, China, has about 7,400 shops, mainly in Asia, and is worth more than US$16 billion, offering gold, white gold and diamond jewelry products.

Hoka - August 2023 (CF Toronto Eaton Centre, Toronto, ON): California-based running shoe brand, Hoka (stylized HOKA), opened its first Canadian storefront in August of 2023 at CF Toronto Eaton Centre in downtown Toronto. The store carries athletic shoes for both genders and is gaining popularity after its founding in 2009 in France.

Hoka can also be found in multi-brand retailers in Canada, and it’s not known yet if more Canadian stores will open.

Dolce Vita/Steve Madden pop-up - August 2023 (Metropolis at Metrotown, Burnaby, BC): New York City-based footwear brand, Steve Madden, launched the first Canadian location of its Dolce Vita concept in August of 2023 at the Metropolis at Metrotown in Burnaby, near Vancouver. The almost 1,300 square foot store began as a pop-up and will become permanent in anticipation of a bigger Canadian expansion. The company told Retail Insider that it plans to open at least five locations in Canada.

Kith - Fall 2023 (Bloor-Yorkville, Toronto, ON): New York City-based lifestyle retailer, Kith, entered the Canadian market in September of 2023 when it opened its first store at 78 Yorkville Avenue in Toronto. The beautiful store spans more than 11,000 square feet and carries a range of designer and private-label brands for men, women and kids.

Also included is a food and beverage component with an ice cream bar concept called Kith Treats, as

well as an outpost of New York City-based restaurant Sadelle’s.

Kith operates 12 other standalone stores globally in the New York City area (four locations), Los Angeles area (two locations), Miami area (two locations) and in Honolulu, Aspen, Paris and Tokyo. The retailer also operates concessions at Bergdorf Goodman in New York City, Hirshleifers in Manhasset New York, and at Selfridges in London.

Edwin Jeans - September 9, 2023 (Ossington Avenue, Toronto, ON): Japanese denim brand, Edwin, opened its first Canadian store in September of 2023 in a 1,000 square foot lower-level space at 2 Ossington Avenue in Toronto. The brand was founded in 1947 and was the first to “translate post-WWII Americana through a Japanese lens and become the first global denim from Japan.” Its name is an anagram of the word “denim.” Products in the Ossington store include jeans, clothing and other items such as hats and footwear.

Retail Insider missed this store opening and there appears to have been little promotion for the new location. It’s not yet known if an expansion is being planned by the company as the Toronto store is the first in North America for Edwin. Edwin has stores globally and is also distributed in multi-brand retailers.

Trespass - Fall 2023 (Vaughan Mills, Vaughan, ON): Scottish outdoor clothing brand, Trespass, entered the Canadian market in the Fall of 2023 with a store at Vaughan Mills near Toronto. The brand is opening more stores in Canada and last year also opened at the Outlet Collection at Niagara and Tanger Outlets Cooktown in Ontario.

The company plans to build more than 30 stores in Canada over the next two to three years, starting in Ontario and then moving west to markets such as Vancouver as well as eastward.

The brand was founded in 1938 in Glasgow and now has over 300 stores across Europe. Stores are approximately 3,000 square feet. therimagazine.com | 2317

Alexander Wang - November 2023 (BloorYorkville, Toronto, ON): Upscale New York Citybased contemporary brand, Alexander Wang, unveiled its 2,500 square foot Canadian flagship store at 110 Bloor Street West in Toronto in November of 2023. The store’s interior is metallic and flashy and carries a range of women’s and men’s apparel, footwear, bags and accessories. More locations are anticipated including Toronto’s Yorkdale Shopping Centre as well as in Vancouver at Oakridge Park in the spring of 2025.

For the Bloor Street store, Arlin Markowitz and Alex Edmison of CBRE Toronto’s Urban Retail Team negotiated the lease on behalf of tenant Alexander Wang. CBRE co-listed the spaces at 110 Bloor with Philip Traikos and Carmen Siegel of Cushman & Wakefield. Landlord ProWinko Canada owns 110 Bloor.

Being Human – November 2023 (CF Markville, Markham, ON): Indian fashion brand, Being Human, entered the Canadian market in November of 2023 when it opened its first store at CF Markville in Markham, Ontario, near Toronto. It’s part of a larger expansion for the reasonably priced retailer which is opening stores in Ontario before moving to other markets. Fashions for men, women and kids are available across various categories.

The company says that it values “Love, Care, Share, Hope, Help and Joy” with stores in 15 countries around the globe.

design and interior appear rather minimalistic compared to some of the more lavish luxury brand storefronts nearby. It’s not known if the brand will open more stores in Canada at this time.

Qeelin - Fall 2023 (Yorkdale Shopping Centre, Toronto, ON): Kering-owned luxury jewellery brand, Qeelin, opened its first North American location in the fall of 2023 at Toronto’s Yorkdale Shopping Centre. The 700 square foot storefront features the brand’s range of jewellery which has proven popular with its targeted Chinese demographic.

Yorkdale has proven itself to be a superstar when attracting affluent clients and the mall has the densest grouping of luxury brands in Canada.

It’s not known if more Qeelin stores will open in Canada, given the newness of the brand in North America. Holt Renfrew introduced the brand in Canada during the pandemic and carries the line in several of its stores.

Ralph Lauren – September 2023 (Yorkdale Shopping Centre, Toronto, ON): New York City-based lifestyle brand, Ralph Lauren, opened its first fullpriced ‘luxury’ concept store in Canada at Toronto’s Yorkdale Shopping Centre in September of 2023.

The 5,500 square foot store replaced Club Monaco and is located alongside various other luxury brand stores.

Since its inception in 2012, Being Human Clothing is a brand under Being Human - The Salman Khan Foundation, a charitable trust devoted to education and healthcare initiatives for the underprivileged in India.

Ralph Lauren is expected to open more stores in Canada including in Montreal at Royalmount and in Vancouver, either downtown or at Oakridge Park. The brand could also open a location in Toronto’s Bloor-Yorkville area if space is found. Years ago, the brand had stores in Canada under its ‘Polo’ banner, and the company continues to operate a network of outlet stores within the country.

Anine Bing – Fall 2023 (Yorkdale Shopping Centre, Toronto, ON): Los Angeles-based women’s fashion brand, Anine Bing, entered the Canadian market in the fall of 2023 with its first store at Yorkdale Shopping Centre. Included is Bing’s range of women’s apparel, footwear, bags and accessories. The store’s

Malabar Gold and Diamonds - October 2023 (Heartland Town Centre, Mississauga, ON): In October of 2023, Indian jewellery behemoth, Malabar Gold and Diamonds, opened its first Canadian storefront at the Heartland Town Centre in Mississauga near Toronto. The 7,800 square foot store

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Rendering of MIKAEL D store interior (courtesy of MIKAEL D)

features over 30,000 designs across 25 brands and collections in gold, diamond and precious gem jewellery, including bridal jewellery and options ranging from casual to formal designs. It’s the first India-based jeweller to open in Canada.

The retailer has almost 340 stores in 12 countries globally, making it one of the largest jewellery chains in the world. The company was founded in 1993 and has sales of about $5.2 billion USD. MIKAEL D - November 20, 2023 (Montreal, QC): Luxury dress brand, MIKAEL D,. opened its first Canadian showroom location on November 30, 2023 at 433 Chabanel West in Montreal, spanning about 6,750 square feet. The showroom will be fully operational by Spring 2024 with walk-in appointments. The brand features pricey wedding dresses as well as women’s formal wear. Custom-designs are available, and in the spring of 2024 ready-towear will be added, as well as dress rentals.

No more showrooms are planned for Canada at this time, though the brand is looking to open an online store for Canada while having a presence

in a department store chain. The company is also looking to collaborate with fashion schools for fresh talent.

Paris Saint-Germain: December 2023 (Queen St, Toronto, ON): Parisian football club, Paris Saint-Germain, in collaboration with Fanatics and Lids, opened its first Canadian storefront at 399 Queen Street West in Toronto in December of 2023. It’s the fourth store in North America for the brand and the 14th globally. The Toronto location features an expansive assortment of products including team jerseys, headwear, accessories, a full range of Nike and Jordan teamwear, one-of-a-kind collaborations, and Paris Saint-Germain designs exclusively available for customers of the new Toronto location.

Alex Charlebois of Urban Reform Realty negotited the lease deal on behalf of Paris Saint-Germain.

The club has announced a partnership with the local NGO Play Forever, focusing on sports and education programs for youth. It’s not known if more locations will open in Canada. therimagazine.com | 2517

Qeelin storefron (Photo courtesy of Qeelin)

Roger Dubuis - December 2023 (Bloor-Yorkville, Toronto, ON): Richemont-owned luxury brand, Roger Dubuis, opened its first Canadian storefront in December of 2023 at the base of the Park Hyatt Hotel at Bloor Street and Avenue Road in Toronto’s Bloor-Yorkville. Watches are priced well into the thousands of dollars. The store, operated in partnership with Toronto-based jeweller, L’ORO, joins two other Richemont brands which opened next to it including Panerai and IWC. Roger Dubuis has only a handful of stores around the world, and just two in the US (South Coast Plaza and Aspen, Colorado). It’s not known if any more Canadian stores will open with the brand.

However, if one did, it would likely be in partnership with an established prestigious jewellery brand.

In 2022, we reported in Retail Insider the magazine that 21 international brands entered Canada by opening stores, while in 2021, we also saw 21 international retailers enter the country.

In 2020, we counted 13 brands that entered Canada by opening stores.

In 2019, we reported that 30 retailers had entered the country by opening stores, which was about the same number as in 2018.

In 2017, a record-breaking 50-plus international brands entered the Canadian market.

Editor’s Note on previous years and this study

In 2016, Retail Insider wrote a special edition piece for Retail Council of Canada’s publication, Canadian Retailer, within which we listed 21 international retailers that had come to Canada by opening stores that year.

Retail Insider has been tallying the number of international retailers that have entered Canada with first brick-and-mortar stores since 2014. The following is a breakdown with hyperlinks to previous reports:

In 2015, we reported that 28 retailers had opened their first freestanding brick-and-mortar locations in Canada that year. And, in 2014, we counted 20 international brands that entered Canada by opening stores.

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FEATURE // RETAIL PREDICTIONS

The rise of AI- and tech-enabled retail experiences Salesforce insights predict that the next 12-plus months will present retailers operating within the industry with boundless opportunities to get closer to their consumers and enhance the experiences that they provide for them// By Sean Tarry Image courtesy of Images Rouges

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A

s we continue to move deeper into 2024, a renewed sense of optimism and excitement is beginning to bubble up in and around retail circles.

Consumer confidence remains on the uptick, however slightly. Inflation is beginning to level off. And most of the kinks within the global supply chain that had been wreaking so much havoc, impacting so many, have begun to dissipate. It all adds up to an environment that provides the industry with massive opportunities to get closer to their customers and grow their businesses. As a result, many across the country are eager to spot and get ahead of the next trend to get a leg up on their competitors. With this in mind, Retail Insider the magazine sits down with Michelle Grant, Director, Strategy and Insights, Retail and Consumer Goods at Salesforce, to discuss the forcing functions that are on the horizon and the ways in which retailers can leverage their potential impact to optimize their businesses and enhance the experiences they offer their customers.

Retail Insider the magazine: Consumer behaviour and attitudes are ever-evolving, requiring brands and merchants to shift and pivot on a relatively consistent basis in order to meet and exceed their needs. In your estimation, what is today’s consumer seeking to receive from their retail shopping experience? And, generally speaking, how do retailers ensure that they provide what the consumer’s looking for?

Michelle Grant: It really depends on the type of brand that the consumer is shopping with and the product that they’re looking to purchase. What they’re seeking from the experience can vary slightly from case to case. However, what’s apparent is that despite these things, all consumers want the fundamentals to be taken care of. The product needs to be high quality and in stock, and the customer service needs to be able to correct a situation if something goes wrong, offering a seamless returns policy. Quick and convenient delivery has now also become table stakes. And beneficial reward programs are increasing in prominence in the consumers’ mind, too. Ensuring that these

things are a part of the retailer’s offering will place them in good standing. However, when you start talking about high-intent purchases like clothing and beauty, consumers are looking for a little bit more of an experience from the brand they’re shopping with. And they want those experiences to be unique, surprising and delighting them and bringing some joy back into the shopping journey.

RITM: Salesforce recently released its ‘Retail Predictions’ for 2024, offering a compelling list of forcing functions that pose potential impact on retail operations over the course of the next year.

The list indicates that brands may be on the cusp of realizing some amazing opportunities when it comes to the use of technology. What in your estimation are some of the most significant benefits that may result from their use?

MG: One of the main tenets of retailing is to make sure that you’re creating a presence for your brand in the places your consumers are engaging. Technology is obviously an incredible facilitator for this, enabling brands to leverage messaging apps or create and develop their own to communicate with consumers. It’s also allowing them to explore the potential of spatial computing within the retail environment and ways its use might be able to help offer their customers those unique experiences that have been tailored to their format and offering.

Technological advancements are really providing brands with an endless array of ways to capitalize on commerce, marketing and customer engagement and service opportunities. However, in order to find success leveraging technology, retailers must be strategic. Technology isn’t a cut-and-paste job. It’s implementation, whatever it is, needs to make sense for the brand and support the crafting of experiences that resonate with their consumers.

Underpinning all of these incredible capabilities, though, is what I like to call the new retail imperative: data. None of these things happen in any sort of meaningful way without the data that helps create the personalization. Everyone is becoming used to the power of predictive AI. But data is being leveraged today to take that predictiveness one step therimagazine.com | 2917

Photo by Prostock-Studio

further through the use of generative AI, presenting retailers with the chance to really bolster their customer service and the experiences they offer.

RITM: Communicating and getting closer to the customer has always been a priority for retailers operating within the industry. And, with so many channels to choose from today in order to do so, retailers must be strategic in their approach to communication. Where are you seeing the most potential with respect to retailer/consumer engagement in 2024?

MG: Leger data reveals that 77 per cent of Canadian Internet users have the Facebook messenger app, and 39 per cent use WhatsApp. Messaging apps have gone from a very chat-based group where friends essentially hung out online, to a tool that’s now offering far more innovative uses.

WhatsApp now, for example, has broadcast channels and stories where celebrities and brands who post content can be followed. They’re really resonating with the younger generations. And, as these apps continue to evolve, the capabilities that they offer in terms of communicating with the end user 30 | Retail Insider the magazine | Volume two Issue four

in a multitude of different ways are exploding.

From advertising and marketing opportunities to personalized direct messaging, messaging apps are providing brands with a host of ways by which they can enhance their customer service and elevate the overall experience that they offer. The evolving role of the messaging app hasn’t yet been fully identified in North America. It offers a new and interesting way to communicate with shoppers, and is also far less expensive than text messaging when using rich data.

RITM: Spatial computing within the retail experience has still yet to find its proper place. Do you think it’s finally moving from a pie-in-thesky technology to become a functional, useful tool with which retailers can use to enhance the shopping experience for their customers?

MG: The use of this type of technology really depends on the product category that the retailer’s operating within. For instance, fashion brands, cosmetics brands, and so many others will definitely benefit from the use of spatial computing to help enhance the retail experience. But you have to

possess a deep understanding of who your customer is and what they’re looking to get out of the experience that they receive from you. The use of VR headsets within the retail environment is going to require some modifications to consumer behaviour. According to most data, a vast majority of VR headset owners use them for gaming, with only a small amount of people using them to explore other realms. Consumers need to see these devices in use, and understand their tangible benefits within the shopping experience, in order for this technology to start to take off. It offers brands operating within certain categories the opportunity to change that consumer behavior and engage them in this new format, providing a potentially really great way to connect with consumers more deeply, and execute wonderful, exciting brand activations.

And, as a result, it heightens levels of personalization, establishing stronger loyalty to the brand, opening up some really exciting opportunities for some within the industry.

RITM: Considering all of the potential impacts on merchant operations that we’ve discussed, what in your estimation will the retail shopping experience look like 12 to 18 months from now?

MG: The key to retail success over the course of the next year or so is going to be the creation of a lot more personalized experiences, from in-store to marketing messages to the website. The industry has talked about personalization for a very long time. But, today, with the meaningful data that retailers have at their disposal, particularly those offering strong loyalty programs, real one-to-one relationships between retailers and their customers can finally, truly be established. Now, more than ever before, if a retailer is able to send a customer the right message, via the right channel, at the right time, offering the right incentive or promotion, they’re more likely to cut through the noise of the consumer’s busy lives, unlocking endless opportunities to enhance personalization and recommendations. As a result, a ton of friction is removed from the shopping experience, elevating the brand in the mind of the consumer and strengthening the relationship between the two.

Salesforce Retail Predictions 2024 #1 Generative AI will turn service centers into profit centers Retailers will focus AI initiatives on amping up the customer experience. #2 Messaging apps take the wheel in the shopping journey Messaging apps are becoming an important part of the shopping journey, especially for younger generations. #3 AI-driven personalization goes omnichannel to cut through the marketing noise Generative AI will be used to mix volume messages (like discounts) and personalized messaging (like product recommendations or content) to make campaigns more effective. #4 Apps become the gateway to customer loyalty This year, a retailer’s app will become their most valuable touchpoint for loyal customers – and the app will become the consumer’s portal to engaging with their brand. #5 Spatial computing enters retail A combination of AI with virtual and augmented reality will deliver spatial computing within the retail environment.

Read more about Salesforce’s 2024 Retail Predictions.

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FEATURE // BRAND PROFILE

Selwyn Crittendon, CEO and Chief Sustainability Officer of IKEA Canada, it’s what he continues to focus on.

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IKEA Canada: convenient, accessible and sustainable The home furnishings giant recently appointed a new CEO, and he’s focused on creating better every day lives for people all across the country // By Mario Toneguzzi

S

elwyn Crittendon learned early on in his career with retail giant IKEA the importance of the customer experience.

Today, 22 years after starting with the company, and 6 months after elevating to the role of CEO and Chief Sustainability Officer of IKEA Canada, it’s what he continues to focus on.

“I had been working in retail for a couple of years before joining IKEA,” he explains. “But I really began as a customer convenience manager. It’s one of the best roles because you understand when the brand is successful at what it’s doing.

And, you also understand when the brand is fall-

ing short with its goals, and have the opportunity to turn negative situations around, resulting in lifelong customers and friends. It was an incredibly valuable experience in my career. And, given the fact that just about everything we do is really based on our understanding of our customers and their needs, those experiences and the lessons that I learned 22 years ago continue to serve me today.”

Affordability and sustainability Crittendon says IKEA is a very purpose-led brand. That is the key. The retailer is all about its vision to create a better everyday life for people. therimagazine.com | 33

Image courtesy of IKEA Canada

“It’s all of the things that IKEA stands for that have really attracted Canadians to our brand. Affordability and sustainability are key. And the things that we do to make it a true life at home experience for people when they work with IKEA really have an impact.”

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“It’s all of the things that IKEA stands for that have really attracted Canadians to our brand,” he asserts. “Affordability and sustainability are key.

And the things that we do to make it a true life at home experience for people when they work with IKEA really have an impact. Those are probably the biggest reasons our brand is so attractive to so many Canadians. And we’ve been working extremely hard, too, trying to digitally transform ourselves into more of a multichannel, omnichannel retailer, in order to become more convenient and accessible to more Canadians across the country.”

The growth potential for the retailer comes in two forms, explains Crittendon. The company is still experiencing tremendous visitation to its stores, with droves of loyal customers continuing to make regular trips to the home furnishings specialist. However, for Canadian customers who are not close to IKEA stores, the company will

Image by cacaroot

start to explore the many other channels that it has to offer.

“This year we introduced IKEA Kreativ where you can start to work with AR and AI to really transform your home on your phone,” he explains. “And we also have IKEA Live where you can actually see us showcasing our solutions and our products. In addition, we will strengthen our fulfillment network, concentrating efforts on making sure that everyone across the country, despite where they live or how they want to shop with us, is able to in a convenient and accessible way.”

Omnichannel development As the company celebrates its 80th anniversary globally and approaches its 50th here in Canada, the digital journey to this omnichannel approach has accelerated in recent years due to the pandemic.

Founded in 1943 in Sweden, IKEA is a leading home furnishing retailer, offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them, it proudly states. IKEA Canada is part of Ingka Group which operates 379 IKEA stores in 31 countries, including 16 in Canada.

IKEA Canada achieved impressive growth of 10.9 per cent in Fiscal Year 2023, ending August 31, 2023, as sales climbed to $2.9 billion. National store visits increased by 6.3 per cent to 28.6 million.

“We’re developing the right mix of IKEA formats that are each tailored to our customers’ unique needs, whether it be larger formats or smaller footprints,” he says. “It really depends on how we want to fill orders within those areas because we’ve built this incredible fulfillment network.

So, we can actually test and try different formats now, providing us with greater flexibility in order to make sure that we get it right for the custom-

Consistent improvement During its Fiscal Year 2023, IKEA Canada:

$400 million Announced plans to invest over $400 million into projects that will transform its fulfillment networks in the Greater Vancouver and Toronto areas.

Brand new facility Opened its new Beauharnois facility, the first Canadian Distribution Centre in over three decades.

AI experiences Launched a new and intuitive AI experience, IKEA Kreativ, that enables its customers to integrate and visualize design solutions in their own living spaces for free via the IKEA app.

38,500 Installed 14 new EV chargers dedicated for home delivery trucks, which enabled over 38,500 zero emission home deliveries across Canada.

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er in ways that fulfill their needs and meet their expectations of us.”

Accessibility to many Besides the 16 large format stores, IKEA has four customer distribution centres, one customer support centre, three Plan and Order Points, four Design Studios, 15 Collection Points, 35 Penguin Pickups, two windfarms and close to 1,000 FedEx parcel pickups.

“What I have seen over the last couple of years is the fact that home furnishing demand has increased,” he points out. “We’ve started to see it level off right now, but I truly believe this was a result of the different periods that we’ve gone through over the course of the past few years.

There’s been an uptick in hybrid working schedules, so the need for furniture or furnishings to support that new lifestyle was present. Even today, while people across the country may be hesitant to spend, they’re still trying to find ways to make their lives simpler and easier, and to live more sustainably. That’s where IKEA fits right in and can be a great partner for Canadians seeking to live a better life.”

And sustainability Crittendon says is the core of what the company does. The executive looks after the country from a CEO perspective but he also wears the other hat as Chief Sustainability Officer.

“Sustainability is at the heart of what we do at IKEA. We see it as our responsibility to provide a better life for many people to enjoy for many years to come. We’ve been on the forefront of these types of initiatives for a very long time, removing plastic bags from our stores and introducing LED bulbs. We have over 14,000 solar panels on the roofs of our buildings, and are developing our EV networks, and introducing more chargers for our customers. And, it remains an opportunity for the brand to continue leading the sustainability charge for as many Canadians across the country as possible.”

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Facts and figures Some key findings from its Summary Report for Fiscal Year 2023 include:

166.4 million While store visits increased over the previous year, online shopping continues to play an important role in the IKEA Canada business. Customers made 166.4 million online visits to IKEA.ca and the IKEA app between September 2022 and August 2023.

1.61 million 1.61 million orders were delivered, while 602,260 click-and-collect orders were processed

+27% Food sales increased 27 per cent to $123 million, with Canadians enjoying more than 15.6 million meatballs, 2.1 million plant balls, three million hot dogs and 1.7 million frozen yogurts

750,000 The number one product family in children’s storage is TROFAST. This year, the company sold over 750,000 pieces of TROFAST which equates to $11.4 million in sales

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38 | Retail Insider the magazine | Volume two Issue four

Alexander Wang store at 110 Bloor Street West in Toronto, before product was added (Photo courtesy of Alexander Wang

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