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Volume 3 Issue 3: The evolution of the retail shopping experience
Consumer shopping habits and preferences are constantly changing and evolving, influencing innovation and helping to shape the current and future retail shopping experience. However, consumers aren’t the only ones evolving and influencing. Retailers across the country are consistently assessing their offering and evolving, too, and are collectively contributing toward the creation of the next generation of retail experiences.
With the evolution of retail in mind, we take a close look at some of the aspects of the experience that are most significantly changing, the factors that are bearing the greatest influence and how they might impact the future of the industry.
We start by examining the current state of luxury in Canada and the boom that the sector is currently experiencing in an article that I wrote in which I comprehensively highlight the country’s luxury hotspots. I also explore some of the shifts that local markets are seeing in terms of their luxury retail presence.
The Canadian retail loyalty program is unpacked, shedding light on some of the adjustments that are necessary in order for retailers to continue offering the rewards and incentives that customers are looking for, and revealing the opportunities to enhance engagement with today’s consumer and strengthen their relationship with the brand.
We also take the opportunity to sit down with the President and CEO of the International Council
of Shopping Centers, Tom McGee, to discuss the evolution of the North American shopping centre, the influence of digitization on consumer habits and preferences, and the innovation that’s required of retailers and their landlords in order to remain a thriving shopping venue for consumers.
And, we speak with David Nagy, Founder of eCommerce Canada to get his take on the trajectory of online retailing in the country, and the approach that small businesses must take to weather current challenges and position their operations to seize on opportunities when they come about.
I hope you enjoy this edition of Retail Insider the magazine and wish you and your teams a healthy and safe holiday season.
Sincerely,
Craig Patterson Publisher craig@retail-insider.com
Volume three, Issue three
14 // Retail Trends Examining unprecedented retail luxury growth in Canada
While other sectors may be struggling to find their feet within the post-pandemic retail environment, luxury retailers are thriving. But what does this trend say about consumer sentiment and the future of the retail luxury sector?
22 // Retail Marketing Is the Canadian retail loyalty program dead?
Canadian loyalty programs aren’t quite ready to be buried yet, they just need to be reimagined to fulfill their potential with customers. And, reatilers need to be leveraging them appropriately to yield the greatest possible return from their investment.
28 // Store Design PragerNuform: helping retailers and brands deliver exceptional experiences
The in-store retail shopping experience is constantly evolving, becoming increasingly tactile, interactive and personalized, presenting retailers and brands with the opportunity to engage with customers in a deeper and more meaningful way.
34 // Shopping Centres The evolving Canadian retail marketplace
Sharp turns in consumer behaviour and an uptick in their digital habits are requiring shopping centres to adapt to these changes. Tom McGee, President & CEO at the International Council of Shopping Centers (ICSC) sits down with Retail Insiderthemagazine to discuss the current state of the North American shopping centre, the continued evolution that’s required in order to remain relevant as a shopping venue, and what the experience might look like going forward.
Craig
EDITOR-IN-CHIEF
Sean
GRAPHIC DESIGN
GBC
CONTRIBUTORS
Joseph Falzata, Shelby Hautala, Kelly Higginson, George Minakakis
HEAD OF SALES AND SPONSORSHIP
Darryl Julott darryl@retail-insider.com
EDITORIAL OFFICE
100 Bloor Street West, Toronto, ON, M5S 3L3 Retail
Digital commerce
Pivotree recently released a joint report that highlights trends in digital commerce, data management and supply chain. Among other things, the report found that just over half of respondents (56%) are satisfied with the performance of their ecommerce platforms.
Holiday retail shopping trends
39%
believe their commerce startegies are meeting consumer expectations
According to the latest research from Salesforce, Canadian retailers can expect a two per cent increase in sales this upcoming holiday shopping season. However, it’s also being projected that Canadian consumers are going to be doing everything they can in order to get a bigger bang for their holiday bucks this year, with key trends emerging.
78% plan to trade down their purchases
69% will shop during high promotional periods
66% will shop with retailers offering loyalty programs
33% cite analytics and reporting as the biggest commerce challenge
Loyalty usage and membership
adviso and R3 Marketing, in collaboration with Ad hoc Research, recently released its 7th annual edition of the LoayalT Study which, through a sample of 10,000 respondents, quantifies the performance of Canadian retail loyalty programs. It also uncovers trends within the marketplace, providing valuable insights concerning current consumer behaviour.
32% change choice of product to maximize loyalty points
55% frequently use programs with superior mobile apps
33% of 18-35 year-olds engage in program surveys, contests, etc.
54% have subscribed to Amazon Prime
42% prefer a digital loyalty card
32% visit retailers offering loyalty programs more often
Rising retail sales
$66.6 BILLION
According to the most recent Statistics Canada numbers, retail sales in Canada increased by 0.4 per cent in August to $66.6 Billion. The most impressive gains were made by retailers operating within the sporting goods, hobby, musical instrument, book, and miscellaneous category, experiencing an increase of 0.9 per cent. Despite this, however, there were also categories that experienced a decrease in sales, including food and beverage retailers (-1.9 per cent) and furniture, home furnishings, electronics and appliances retailers which saw a decreaseof 1.4 per cent for the month.
AI impediments
In a comprehensive report developed by Statistics Canada that analyzes the continued adoption of artificial intelligence (AI) in anticipation of its potentially transformative impacts on industries allover the world. Within the report, however, it was highlighted that only 10.6 per cent of businesses across all sectors plan to implement AI into their operations. Of the nearly 90 per cent of businesses that do not plan to use AI, 74.2 per cent state that it does not offer any benefit to them, along with other, more nuanced, reasons.
lack knowledge concerning capabilities of AI
9.3% 6.1%
8.8%
don’t believe the technology has reached maturity yet
believe the technology is still too expensive
Return to sender
lack the skilled workforce required to implement the technology 1.7% 6.8% 2.3% have concerns related to privacy and security 22% clothing and apparel
express concerns related to potential bias resulting from inaccurate data
The return of product has served as a bane for retailers for a long time now, requiring brands to constantly develop and monitor their returns policies. And, with the highly anticipated holiday shopping season quickly approaching, it’s an issue that will be on the minds of many throughout the industry. According to Statista, the those operating within the following retail categories are best served by adhering to a fair and seamless returns policy, as they experience the greatest rate of product returns.
8% consumer electronics 9% accessories 13% footwear
Tax holidays needed to reduce burden posed by construction delays
It’s time to start supporting the success and growth of small- and medium-sized businesses by helping to alleviate challenges they face
// By Joseph Falzata, Public Policy and Advocacy Intern, Canadian Federation of Independent Business
This past summer, I stopped by my local flower shop to pick a bouquet for my sister’s graduation. When I arrived, the storefront was obscured by caution tape and orange pylons. I assumed the shop was closed for construction and rushed off without any flowers, already practicing my apology speech. It was only later when I learned the construction was only being done on the sidewalk, and the florist had actually been open the whole time.
I’m sure many readers have had similar experiences. Struggling to find parking on construction-ridden streets or opting to dine at a different restaurant to avoid noisy equipment are just two examples of how construction projects push customers away from local shops.
As of 2024, the Canadian Federation of Independent Business (CFIB) discovered that nearly seven in ten small- and medium-sized businesses (SMEs) in Canada have been affected by construction projects over the last five years. On average, each affected business lost 22 per cent of their annual revenue and incurred around $10,000 in additional expenses related to things such as cleaning or repairs.
Small businesses generally do support public construction projects. Vital services like public
transit require constant maintenance so they can operate smoothly and bring patrons through the doors of small businesses. But when the rumbling of jackhammers shakes the shelves of local coffee shops and deters customers from coming in for months – or sometimes even years – after the project was supposed to be completed, small businesses deserve compensation for their losses.
Construction mitigation
Direct financial compensation is the most obvious form of construction mitigation that municipalities can use to help small businesses, but it’s not the only option. Municipal leaders must also strive for better communication with small businesses. In 2024, a CFIB survey found that one in three (33%) of SMEs were unaware of construction projects prior to the project’s beginning. Cities should offer a business liaison officer as a dedicated contact for business inquiries and implement a “no surprise rule” to inform businesses before shovels touch the ground.
It would also be suggested that projects also be completed within a strict timeline, as each extra
day of construction-based disruptions results in decreased revenue for affected businesses. This could mean using a comprehensive planning approach involving the “dig once” principle to ensure projects are completed once they’ve started. Municipalities could also introduce policies that reward construction contractors for projects completed early and penalize those that run long. Cities could also opt to implement a “tax holiday” which would temporarily waive property taxes for affected businesses. Property taxes are profit-insensitive, so regardless of how well businesses are performing financially, they are still required to pay. A tax holiday could be incredibly useful in lowering the expense burden when sales are low, especially since according to CFIB data, property taxes continuously rank as the top cost constraint for small businesses.
Current projects
There are a small handful of municipalities across Canada that have established comprehensive mitigation plans to financially assist businesses affected by construction. In 2023, the City of Montreal began offering construction mitigation relief to businesses suffering from the collateral effects of public projects. Eligible small businesses were awarded $5,000 if a major infrastructure project was in progress near their establishment. An additional $40,000 in financial assistance was offered to businesses whose revenue decreased by at least five per cent in the previous fiscal year due to public construction projects in their area. Quebec City also offers a similar program, providing up to $30,000 a year in financial relief for a business if they are able to show a significant loss of sales due to construction.
But for small businesses outside Montreal, Quebec City, Levis, and Calgary, relentless construction projects continue to chip away at potential revenues, and no mitigation plan exists to help those impacted.
Such is the case with Toronto’s Eglington Light Rail Transit (LRT), where, after over a decade,
the project painfully pushes its thorns in the side of small business along its still-unfinished tracks. Reductions in parking spaces, the relocation of bus stops, and the mess of scaffolding are just some of the ways that the project is redirecting foot traffic away from local businesses.
But as already mentioned, the point isn’t that construction is inherently harmful. Construction is essential, and when projects are completed, they tend to help businesses grow and bring benefits to the local community. However, when dust, debris, and noise pollution push customers away from business doors, governments must step in to financially support small businesses and encourage construction to finish quickly. In this way, business owners can continue to serve their local communities, and no one has to show up at their sister’s graduation empty-handed.
The future of shopping centres: beyond conventional wisdom
In order for shopping centres across the country to succeed going forward, a critical transformation is required
// By George Minakakis, Founder and CEO of Inception Retail Group, and Author of ‘TheNewBricks&MortarFutureProofingRetail‘
Reimagining the future of shopping centres is often on the minds of retailers and developers, whether through digital transformation, experiential retail, or omnichannel strategies. While these often-discussed concepts are essential, they overlook shifts that will shape the future of these spaces. As we move further into the 21st century, shopping centres will not only change, but may become entirely reimagined spaces that serve multiple functions extending far beyond their original purpose. This transformation, driven by the needs and expectations of Generations Alpha and Beta, presents an innovative and intriguing vision of the future of retail. Shopping mall operators should consider them now to secure the future of indoor and outdoor malls.
Rising generations
Within the next 20 years, the landscape of shopping centres will be intensely influenced by the needs and expectations of generations Alpha and Beta. These generations are coming of age in a world where economic challenges and technological adoption persist, demanding more from these spaces than previous generations - a refuge and shopping access that inspires rather than promotes disillusion. Today, sixty per cent of the population lives paycheck to paycheck—and this will be a future economic reality that will be passed down—so shopping centres must evolve
to offer value, accessibility, and purpose-driven experiences that resonate with these future consumers. Their parents, in their 30s and 40s, worry about their children’s futures. As such, malls have a unique opportunity to empower and shape the communities they serve.
Shopping centres can become social ecosystems, where retail is only one of many purposes, filling a more reflective social need in a world progressively defined by remote work and digital everything. Shifting into community hubs, shopping centres can host coworking spaces, educational workshops, and even wellness centres, blurring the lines between commerce and community.
Urban spaces will become more congested, and shopping centres could evolve into micro-urban environments. Shopping centres where you can live, work, play, and shop are already planned. These centres would reduce the need for transportation, tapping into the planning vision of municipalities of 15-minute commutable cities.
As the environmental issues continue as a global challenge, shopping centres can integrate green
functionalities and create settings supporting, promoting, and providing clean water, air, and energy. They may even identify sustainable retailers for consumers to find more easily. As consumers demand more transparency, developers will have to deliver it.
Shopping centres must evolve
Their one-size-fits-all model is getting stale. Shopping venues should reflect the social and economic dynamics of their local demographics. Some might feature innovation labs, tech expos, and maker spaces in areas with a high concentration of tech companies. In contrast, a centre in a suburban district might prioritize restaurants, entertainment, and art events to allow consumers to decompress.
While the integration of digital and physical retail is a common categorization of how and what technology has changed, the future of shopping centres must embrace emerging technologies to keep up with customers and retailers alike. Machine-driven AI experiences will unify humans and their devices, creating an opportunity for the physical space of a shopping centre to engage digitally. Personal AI assistants are coming, and they will create immersive experiences, creating a significant opportunity for retailers and shopping centres.
Retail as a service
My favourite opportunity is retail as a service (RaaS). It is a concept that’s sure to raise some eyebrows across the industry. Both in terms of what it means as well as the ways by which it can be delivered. Both retailers and consumers can benefit from these platforms which can be introduced as subscription services.
For retailers, it could mean services like logistics, customer data and technology infrastructure for those less advanced. Consumers would be able to access new product launches or personalized customer experiences. This type of integrated
model would allow shopping centre operators to adapt quicker to market changes and consumer preferences.
Of course, there is also healthcare, which has been limited to dentistry and eyecare in shopping centres. Other services will increasingly become consumer-centric, integrating healthcare devices into various physical services, offering exclusive and holistic treatments, and strengthening one’s wellness. This would be akin to new retail therapy aimed at health and longevity for all demographics.
Ultimately, the goal is to continue driving foot traffic. However, this transformation, like most others, calls for leadership with a vision to not just adapt to new trends, but to become dynamic entities that serve a broader purpose.
George Minakakis is the CEO of Inception Retail Group, author of three books, and keynote speaker.
Image courtesy of Elnur
Warm summer fails to boost restaurant sales, but opportunity lies ahead
As a result of concerns over an uncertain economy, among other factors, Canadians are dining out less frequently. However, for those keeping an eye on some of the most recent trends, opportunity may await
// By Kelly Higginson, President and CEO of Restaurants Canada
Traditionally, summer has been a vibrant season for Canada’s restaurant industry, with locals and tourists flocking to outdoor dining experiences. In a typical year, sales during July and August are 30 per cent higher than they are in January. However, despite some nominal increases in sales this year, Canadians are dining out less frequently, primarily due to reduced discretionary spending. This, combined with rising operational costs, continues to add strain onto restaurant operators. It suffices to say, this past summer was not the season the restaurant industry wanted or needed.
Weak economy limits recovery prospects
Restaurants Canada conducts regular industry surveys to assess its health. The most recent survey, released in September, paints a challenging picture for the industry over a summer marked by the ongoing effects of inflation.
Half of the restaurant operators that were spoken to rated the current business climate as “poor” or “very poor.” Only 15 per cent described it as “good” or “very good.” Quick-service restaurants have faced even steeper challenges, with nearly 25 per cent reporting conditions as “very poor,” compared to just 10 per cent of full-service establishments.
This past summer, despite being typically regarded as the most profitable season, saw a significant drop in visits and spending at restaurants due to the weakened consumer demand caused by rising prices. A survey revealed that 81 per cent of respondents reported lower profitability this summer compared to last year, attributing it to decreased guest counts and increasing operational costs. Consequently, more than half of restaurant operators reported either operating at a loss or just breaking even as of September. These figures align with an earlier report from April, when 32 per cent were operating at a loss and 15 per cent were breaking even.
Despite these discouraging circumstances, they are not entirely unexpected. Many Canadians across the country are cutting back on their discretionary spending due to increased living expenses. A July 2024 survey by Angus Reid revealed that 80 per cent of Canadians have reduced nonessential activities and spending since January. The most common strategies for cutting back included dining out less frequently and ordering takeout less often.
Demographic shifts present new opportunities
Looking ahead, there are opportunities for growth and innovation in the industry. Canada’s rapidly evolving demographic landscape – particularly growth among Gen Z and visible minorities—is reshaping the foodservice landscape.
Gen Z: seeking value, experience, and innovation
Younger consumers, once reliant on their allowances for cafe outings, are now driving technological advancements in the restaurant sector. Amid economic uncertainty, Canadian diners, especially younger ones, are prioritizing value, experience, and innovation, integrating dining into their lifestyles.
So, what are they looking for?
Value is essential. Gen Z diners, facing tighter budgets, seek quality dining experiences that are affordable. They actively participate in loyalty programs, with over 60 per cent enrolled in at least one, and average more than three memberships each. Notably, 29 per cent of full-service restaurants now offer loyalty initiatives.
Beyond spending habits, Gen Z is pushing for tech solutions that enhance dining experiences, emphasizing order accuracy and menu transparency—a reflection of their health-conscious tendencies.
Ethnic diversity transforming Canadian cuisine
As Canada becomes increasingly diverse, visible minority groups are significantly reshaping the restaurant landscape. For instance, 41 per cent of Chinese Canadians dine out weekly, and 46 per cent of South Asian Canadians frequently order takeout. This consumer base is eager for diverse culinary experiences and innovative options.
Canadians from various ethnic backgrounds are at the forefront of culinary exploration, driving demand for globally inspired dishes and flexible
takeout options. Projections suggest that nearly half of Canadians will belong to a visible minority by 2041, presenting the restaurant industry with a unique opportunity to celebrate these culinary traditions.
The bottom line
As industry leaders, we must seize this moment to innovate our businesses, focusing on workforce solutions, menu development, and enhancing our customer service strategies. Restaurants that emerge from this challenging environment will be the ones that capitalize on the trends by being willing to innovate and change.
However, it’s crucial to highlight the fact that we can’t navigate this landscape alone. Strong government policies focused on improving affordability, stimulating economic growth, and encouraging innovation are essential to help the industry emerge from these challenging times and to support the success of small and medium-sized businesses, which are critical pieces of the social and economic fabric of communities.
Kelly Higginson is anexperienced leader with more than 25 years working within the hospitality industry, serving as President and CEO of Restaurants Canada.
Examining unprecedented retail luxury growth in Canada
While other sectors may be struggling to find their feet within the post-pandemic environment, luxury retailers are thriving //
By Craig Patterson
Luxury retail in Canada is undergoing a dynamic transformation, marked by a surge of high-end brands establishing themselves and expanding across the country. Key cities such as Toronto, Montreal, Vancouver, Calgary, and Edmonton are witnessing openings of new luxury stores, more so than at any time in Canada’s history.
The rapid expansion could create an over-saturation of luxury stores in the country. At the same time, new suburban luxury nodes are being created that will compete with more traditional urban cores.
Bloor-Yorkville: Toronto’s premier luxury district
Toronto’s Bloor-Yorkville area continues to reign as a major luxury retail destination in Canada. The district, known for its village-like feel, recently added various luxury brand stores. Bloor Street West, formerly known as the ‘Mink Mile’, has seen a remarkable number of flagship luxury stores open on the street recently.
Holt Renfrew at 50 Bloor St. W. in Toronto
In the past 18 months alone, Bloor Street saw the openings of flagship Rolex, Van Cleef & Arpels, Ferragamo, Alexander Wang, Bon Point, Bulgari, Burberry and Loro Piana stores, as well as a 10,400 square foot Saint Laurent. There will be even more movement in 2025 when Tiffany & Co. relocates and opens a flagship in a branded building at 66 Bloor Street West, and other leases nearby are signed.
The Yorkville village area itself has developed with luxury retail, including along Yorkville Avenue and adjacent streets. Yorkville Avenue is lined with luxury stores including Chanel, Brunello Cucinelli, Christian Louboutin and Balenciaga. In the fall of 2024, U.K.-based Derek Rose opened its first store on Hazelton Avenue, while U.S.-based jeweller Chrome Hearts unveiled a store on Scollard Street, marking the first luxury brand on the street. We can expect Yorkville to continue to expand its luxury offerings, with brokers saying some top brands have shown serious interest.
Montreal’s Royalmount project is transforming the city’s luxury retail scene. The development aims to become a key player in Montreal’s luxury market by offering a curated mix of highend brands and unique services.
Bloor-Yorkville vs. Yorkdale: competing for affluent shoppers
Toronto’s Bloor-Yorkville and the Yorkdale Shopping Centre are locked in a rivalry to capture the attention of the city’s affluent shoppers. BloorYorkville offers an architecturally unique and charming outdoor experience enriched by luxury hotels, upscale dining, services, and cultural landmarks. Meanwhile, Yorkdale provides an expansive indoor shopping experience featuring an impressive availability of luxury stores. The climate-controlled environment and curated mix of luxury stores make Yorkdale a preferred destination for convenience-driven shoppers who want everything under one roof.
Many luxury brands are seeing the benefit of having stores in both nodes, given their different shopping patterns and diverse consumers.
Yorkdale Shopping Centre: A luxury powerhouse
The Yorkdale Shopping Centre continues to solidify its status as a premier luxury shopping destination in Canada. Its luxury retail expansion has attracted a host of high-end brands, including the recent openings of Loewe, Brunello Cucinelli, Loro Piana, Jimmy Choo, Versace and Rimowa in a new 65,000 square foot luxury wing. The world-class luxury corridor will add other luxury brands soon including Canada’s first Maison Margiela store, replacement stores for Saint Laurent and Gucci, and a 12,000 square foot Dior flagship store.
These boutiques join an already impressive clustering of luxury brands in the mall that have developed since sometime around 2013. Yorkdale has the largest and most concentrated clustering of luxury stores in Canada. The mall is also the launch pad for more international brands entering the country than anywhere — and it doesn’t hurt that Yorkdale is also the most productive mall in Canada in terms of sales per square foot, as well as the mall with the highest sales in the country, exceeding $2 billion annually.
Royalmount: raising Montreal’s luxury landscape
Montreal’s Royalmount project is transforming the city’s luxury retail scene. The development aims to become a key player in Montreal’s luxury market by offering a curated mix of high-end brands and unique services. The shopping centre is located on Montreal Island, accessible by highway and transit.
The centre, which opened on September 5, 2024, is the first in Quebec to feature a clustering of standalone luxury brand stores. Names such as Louis Vuitton, Gucci, Tiffany & Co., David Yurman, Rolex, TAG Heuer, and others opened at Royalmount, which is part of an ecosystem that includes restaurants, a food hall, and various attractions aiming to entice visitors from the city and beyond.
Royalmount will compete with downtown Montreal for luxury shopping dollars. In fact, Retail Insider is being told that some shoppers from the West Island are heading to Royalmount instead of the city’s core, which features luxury retailers such as Holt Renfrew Ogilvy.
Holt Renfrew Ogilvy: a cornerstone of Montreal’s luxury scene
Downtown Montreal’s luxury market is anchored by Holt Renfrew Ogilvy, a flagship store spanning over 250,000 square feet and featuring a range of luxury concessions. Renowned brands such as Louis Vuitton, Tiffany & Co., Gucci, and David Yurman operate within its walls, while Holt Renfrew Ogilvy maintains exclusive partnerships with Hermès, Dior, and Giorgio Armani.
The beautiful store at Sainte-Catherine Street and De La Montagne dominates downtown Montreal’s luxury retail scene, and will compete with Royalmount in a market that doesn’t spend as highly on luxury goods as residents in Toronto and Vancouver. There are hopes that affluent residents of Montreal will spend more at home with the increased availability of top brands in the city.
Top to bottom: The interior of Tiffany & Co. at 150 Bloor St. W. in Toronto; Inside the Holt Renfrew Ogilvy location at 1307 St-Catherine St. W. in Montreal; Prada’s store facade located inside Yorkdale Shopping Centre in Toronto.
Image courtesy of Holt Renfrew
Holt Renfrew at 50 Bloor St. W. in Toronto
Oakridge Park: Vancouver’s luxury destination
Vancouver’s Oakridge Park (formerly Oakridge Centre) is undergoing a major transformation to become a hub for high-end shopping. The development will house brands like Tiffany & Co., Christian Louboutin, Louis Vuitton, Miu Miu, Alexander Wang, Maison Margiela, and many others, offering a range of brands that may not have been able to locate space in the downtown core.
The former Oakridge Centre had a handful of luxury stores before its temporary closure in 2020 for an overhaul. That means that there’s a pre-existing client on Vancouver’s West Side that is likely to return. The vastly larger number of luxury brands in the 2025 “2.0” version of Oakridge will require critical spending power to support them.
When completed in the summer of 2025, Oakridge Park aims to become a second luxury node in Vancouver, complementing the well-established Alberni Street ‘Luxury Zone.’ Alberni Street itself features flagship stores from top-tier brands such as Prada, Hublot, Burberry, and Rolex. Adjacent streets house stores for brands such as Hermes, Dior, Cartier, Thom Browne, Saint Laurent and others.
Oakridge Park vs. Downtown Vancouver: competing for luxury shoppers
As Oakridge Park establishes itself as a luxury destination, it will compete with downtown Vancouver’s Alberni Street/Luxury Zone for high-end clientele. The downtown Luxury Zone’s central location and prestigious status as a luxury corridor make it a key player in Vancouver’s retail scene, which has developed significantly over the course of the past decade with top brands.
Downtown Vancouver’s advantage is its proximity to hotels, attractions, cruise ships and tourists — while at the same time, the core has struggled with vagrancy and crime. Oakridge Park, on the
other hand, lacks downtown’s tourist advantages but makes up for it with a fresh environment that can be controlled as a private indoor space.
It will be interesting to watch how the two luxury nodes attract shoppers in 2025, and whether or not both Oakridge and downtown will be successful attracting luxury shoppers concurrently.
Western Canada’s luxury expansion: CF Chinook Centre and West Edmonton Mall
In Western Canada, Calgary’s CF Chinook Centre and Edmonton’s West Edmonton Mall have added luxury retailers in recent years, catering to demand while taking business away from downtown cores.
In 2019, CF Chinook Centre added Louis Vuitton as a tenant, joining brands such as Burberry and Tiffany & Co. in the mall. The shopping centre could see more luxury brands come as landlord Cadillac Fairview looks to establish a suburban luxury node. Louis Vuitton left downtown Calgary’s Holt Renfrew store for CF Chinook Centre — and there are now rumours that before the
Vancouver’s Oakridge Park (formerly Oakridge Centre) is undergoing a transformation to become a hub for high-end shopping. The development will house brands like Tiffany & Co., Christian Louboutin, Louis Vuitton, Miu Miu, Alexander Wang, Maison Margiela and many others...
end of the decade, Holt Renfrew itself could exit downtown Calgary for CF Chinook Centre.
In Edmonton, West Edmonton Mall got busy in 2020 by adding a Louis Vuitton store, starting a movement that saw Gucci, Saint Laurent, Balenciaga, and Moncler subsequently open in the mall. And as in Calgary, the suburban West Edmonton Mall pulled brands from downtown. And in the case of Edmonton, the exit of Louis Vuitton from Holt Renfrew resulted in Holts shutting down entirely in the downtown core in early 2020.
While Calgary and Edmonton have seen luxury brands move into the market recently, the further expansion of new luxury brands isn’t expected to be nearly as dramatic as in Canada’s largest three cities, at least not for the foreseeable future.
Challenges facing luxury retailers in Canada
Despite the positive outlook, luxury retailers in Canada face challenges, including economic uncertainty, competition from online platforms, and the complexities of serving diverse regional markets. Companies such as Gucci recently slowed expansion plans in Canada, given the company’s lack of financial performance globally.
Other luxury houses have been reporting concerning global financial numbers as well. In 2024, conglomerates that have seen growth for years are now seeing weaker consumer spending, driving decisions to slow down store expansions in some markets. At the same time, brands are looking to markets with projected stronger growth and are signing long-term leases accordingly.
In Canada’s top luxury retail nodes, it’s clear that luxury brands are banking on the longterm success of Canada, particularly with retail nodes attracting high-end shoppers. That means that leases for new stores continue to be signed, including a flurry of activity that has seen Bloor Street and Vancouver’s Luxury Zone transform almost beyond recognition.
Despite economic challenges faced by many Canadians, the country is still home to a wealthy demographic that can afford luxury goods. Outof-country visitors, including tourists, also help support luxury retail in Canada. Landlords and some luxury retailers have been advocating for the Canadian government to allow international tourists to get the tax back on goods purchased in the country. Similar programs in places such as France have resulted in lineups at luxury stores to buy goods.
The new luxury nodes that are developing across the country could potentially lead to over-saturation. Royalmount in Montreal may have been a risky move, considering how little luxury spending was happening in downtown Montreal. Hopes are that the market will expand with affluent locals choosing to shop at home, instead of elsewhere.
The same can be said of downtown Toronto versus Yorkdale, and now Vancouver’s luxury market will be tested with Oakridge Park offering a more robust clustering of luxury stores than what is available in the downtown ‘Luxury Zone’. It remains to be seen who will ultimately be successful and whether or not the market can handle duplicate store locations in competing luxury nodes. Another wild card in downtown Vancouver is Holt Renfrew, which houses many luxury brand concessions that will also open standalone stores at Oakridge Park.
Image courtesy of Loewe
Is the Canadian retail loyalty program dead?
Canadian loyalty programs aren’t quite ready to be buried yet, they just need to be reimagined to fulfill their potential with customers // By
Shelby Hautala
In the competitive landscape of retail, loyalty programs serve as essential tools for brands seeking to develop lasting relationships with consumers. As the retail environment continues to evolve, understanding the current state of loyalty programs in Canada has never been more crucial – but are retailers using them properly? Joanna Walker, Founder and CEO of Loyalty & Co, and Larry Leung, customer experience leader, discuss the current challenges facing programs, answering the question: are loyalty programs dead?
Remove barriers that make loyalty feel chore-like
Consumers are increasingly overwhelmed by complex loyalty programs and are in need of simple and personalized programs:
“Consumers want simplification, they want things to be easier,” says Leung.
He argues that personalization is critical. It’s not just about making a program simpler, but also
Image courtesy of atakan
about making it significantly more tailored to individual preferences, helping to create meaningful connections with customers.
“The goal is to present the right offers to the right customer at the right time,” says Leung. “Consumers today are looking for loyalty programs that don’t just bombard them with options, but instead focus on delivering what is actually useful and relevant to their needs. The challenge for retailers is to design programs that are easy to understand and use, while being sophisticated enough to offer personalized experiences. It is about removing barriers that make loyalty programs feel like a chore, making them a seamless part of everyday shopping.”
Leung emphasizes that personalized loyalty programs are not just about using the consumer’s email, but about understanding their shopping behaviours, preferences and spending habits:
“This approach not only enhances the customer experience, but also significantly boosts the effectiveness of the loyalty program,” says Leung.
Going beyond the first impression
Walker says some loyalty programs offer sign-up discounts, which are beneficial if retailers plan to continue them, but can be annoying to consumers if ghosted. Walker says it is necessary for loyalty programs to extend value beyond initial discounts.
“Consumers all probably have a personal example of when they were like ‘oh my god, this is great – fantastic’ and then the retailer takes back the rewards and it is not a great customer experience,” suggests Walker.
Looking for relevance
Walker emphasizes that today’s consumers are not just looking for rewards; they are looking for recognition and relevance in the offers they receive from retailers. This includes connecting
loyalty rewards with the consumer’s personal shopping habits and lifestyle.
“Consumers today are looking for more than just collecting points; they want offers that resonate with their specific needs and lifestyle choices,” she says. “They want to feel that the brands they are loyal to truly understand them. So, when we talk about personalization, it is about more than just addressing them by name in emails. It is about crafting offers that hit the mark by aligning with their shopping behaviours and personal preferences. For instance, if someone is frequently buying organic products, personalizing their rewards with offers on new organic items or providing them with exclusive early access to a sale on eco-friendly products can make all the difference.”
Reward programs must focus on value and personalization, and be timely and easy to use. One challenge Walker has noticed is retailers devaluing programs.
“Consumers today are looking for more than just collecting points; they want offers that resonate with their specific needs and lifestyle choices. They want to feel that the brands they are loyal to truly understand them.”
Joanna Walker, Loyalty & Co
Finding a balance in loyalty offerings
Leung says the value attached to the program drives the success:
“If it is only good for the business, but is of no value to consumers – you don’t have a good program,” he asserts. “Conversely, if it is only good for the consumer, but not the business, then the business doesn’t make any money. This equilibrium is crucial for the sustainability of loyalty programs.”
To maintain balance, Leung suggests that knowing your consumer by receiving proper data is critical:
“It is all about deepening your understanding of who your best customers are, what their behaviours are, making sure that you are serving up the right offers and delivering value to those best customers,” he says.
However, while creating offers, Leung warns against launching overly generous programs that
”Loyalty programs must innovate to stay relevant. The future of loyalty is bright, but it hinges on harnessing technologies that can truly understand and predict consumer behaviour.”
- Larry Leung, Customer Experience Leader
might need scaling back as this can derail trust and engagement with consumers.
Although programs might have been created to attract consumers to sign-up; if those benefits and offers start to decrease, it can lead to consumers feeling underappreciated, causing longterm damage to their relationship with the brand.
“Retailers would never want to go back to market with a weak value proposition, but it is better to start with more of a conservative offer and build on that, than to take offers away,” says Leung. “If you launch with a very rich program and then have to pull it back, it damages trust. Consumers feel the loss deeply, which can sour the relationship.”
Keeping up with AI and consumer expectations
Like everything, Leung says the evolution of loyalty programs will be shaped by AI and data analytics. Leung believes these technologies will enable retailers to develop a deeper and more effective level of personalization.
“Loyalty programs offered by retailers in Canada must innovate to stay relevant,” he suggests. “The future of loyalty is bright, but it hinges on harnessing technologies that can truly understand and predict consumer behaviour. Brands also need to keep investing to ensure they evolve with consumer expectations and technological advancements. It is not just about maintaining a program; it is about continuously enhancing it to deliver genuine value.”
Going forward, Leung predicts a shift towards more integrated loyalty systems, where data from various sources are connected to provide a comprehensive view of the consumer.
“The integration of different data streams will allow for a more holistic approach to loyalty, where offers and rewards are precisely tailored, not just based on past purchases, but on a complete lifestyle understanding,” he says.
Walker’s future insights on loyalty programs
Walker highlights the need for retailers to continuously enhance loyalty programs, especially through the inroduction of new technologies that enhance service and offering:
“Incorporating new technologies enhances our ability to meet consumer needs and elevates the overall shopping experience,” she says.
Walker stresses that for retailers to continue improving their loyalty offering and ensure their long-term relevance, they need to keep up with the latest technologies.
In addition, she underlines the importance of redemption events as a means by which to not only bring consumers in, but to keep them. Redemption events not only benefit the consumer, but also the retailer.
“It is all about driving value,” she says. “The reason retailers do redemption events is because they are trying to burn points off their books as there are so many unused points out there. In addition to that, they will also get the uplift: if they give me $100 for 80,000 points, I am going to go in and I am actually going to spend $200. So, it is a good deal for them.”
If retailers hold more redemption events, Walker says this will also balance out providing points and discounts. As a result, consumers will feel more appreciated by the brand and will hopefully remain loyal.
Overall, Walker says retailers must focus on balancing loyalty reward programs so it benefits both the company and consumers. Not only should retailers be focusing on bringing balance and looking at what the consumer wants, they should also be keeping up with customer service.
Image courtesy of SDI
“The level of customer service is diminishing, and there is no loyalty program that can help a retailer solve that,” she says. “And so, it is really important, from an operations perspective, that you are treating the customer well. People are in your retail location, and you are engaging with them, so make sure employees are trained well and then allow the program to do what you need it to do: deliver the right offers and make sure they are delivering value. If you have a really bad customer experience, but a great loyalty program – you are still going to have challenges from a retail perspective.”
Loyalty programs aren’t dead; they are evolving
Although Leung says most programs are not dead, he does acknowledge traditional systems are no longer efficient today. And, if a loyalty program is failing, Leung says it is a call for action for innovation rather than a sign of decreasing popularity.
“The entire industry is in critical need of rethinking how retailers and brands define loyalty, requiring an approach that moves well beyond points and discounts to create genuine connections and enriched experiences for consumers,” he says.
Leung’s insights show loyalty programs are not dead – yet. However, their survival depends on how well retailers adapt to new consumer expectations and technological advancements, moving from traditional reward systems to a more dynamic, personalized model.
Leung acknowledges that while some loyalty programs are struggling, the concept of loyalty programs itself is far from extinct.
“Brands must seize the opportunity to transform their loyalty strategies,” he says. “The future of the programs they offer them is not just what we offer, but on how we understand and engage with our consumers. Incorporating technology, like AI, to anticipate customer needs and crafting more personalized experiences is not just beneficial – it is imperative for survival in the competitive retail landscape.”
Both Walker and Leung emphasize the necessity of evolving loyalty programs to meet consumer demands. While Leung discusses the role of emerging technologies, Walker stresses the importance of integrating these technologies to provide exceptional customer service to create loyalty programs that are not only advanced, but also customer-centric.
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✅ 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
Retail display and store fixture leader brings the Bauer FitLab to life with a that’s inspiring and delighting today’s skate shopping customer
brands deliver experiences
By Sean Tarry
Thein-store retail shopping experience is one that’s constantly evolving, becoming increasingly tactile, interactive and personalized. It’s an experience that customers across the country have started to expect more from each and every time they venture out to visit physical brick-andmortar locations to satisfy their needs and wants. And it’s also an experience that drives retailers and brands to continuously create and innovate in order to meet the desires of their customers and deliver exceptional, one-of-a-kind retail experiences. It’s exactly what hockey equipment giant Bauer had in mind when it recently introduced the Bauer FitLab.
Dynamic experience
The Bauer FitLab takes skate fitting to the next level. This dynamic experience, which is the first of its kind anywhere in the world, incorporates a skater’s movement into the fitting process and promotes an environment for the consumer to learn, collaborate, design, and become immersed in the Bauer “Build Your Performance” system. With this new philosophy, combined with the execution of an approach that customizes a tailored skate fitting experience, the Bauer FitLab enhances every player’s on-ice performance, de-
spite their level of play, and creates a best-in class consumer experience for participating retail partners. Creating that unique engagement between the consumer and the brand is what prompted Bauer to partner with PragerNuform.
The industry leader within the retail display and store fixture space, PragerNuform provides its retail and brand clients with an incredible range of services that includes design and engineering, project management, fabrication, installation, and just about everything in between. The company also boasts an astounding 86 years of experience working with clients within the retail industry and has accumulated a plethora of knowhow which it brings to every job it embarks on.
In addition, it also possesses an acute understanding of the relationship between retailer or brand and the consumer, and the need to consistently enhance the value inherent in it. And, according to Marcel Rocheleau, the company’s Vice-President of Sales & Design, the partnership with Bauer provided PragerNuform with an opportunity to leverage all of its experience and acumen to the fullest.
”One of the first questions that we asked ourselves was: ‘how do we make this come to life for the consumer in a way that engages them, while informing and inspiring them as well.”
- Marcel Rocheleau, PragerNuform
“Bauer came to us with an interesting proposition and request,” he says. “They’re a company that does significant business when it comes to hockey skate sales in Canada. And, its Bauer FitLab presented some really cool technology with a ton of capabilities and ways to enhance the customer experience. But they needed help to bring it to life, offering the user an experiential interaction that’s second-to-none. For us, that meant curating a journey that the customer is guided through seamlessly, immersing them within the process, creating a powerful experience.”
Strong partnerships
To do this, the teams from Bauer and PragerNuform worked with their retail partners to gain store-level insights concerning the development and implementation of the Bauer FitLab. They also leveraged consumer insights to understand exactly how the technology could be used most effectively to create an incredible skate fitting experience. And, working with Aetrex Technology – the developer of the technology used within the Bauer FitLab, and a company that shares Bauer’s vision to help create an enhanced consumer experience through technology and its philosophy of building footwear solutions from the ground up – the leading companies in their respective fields set out to bring the concept to life.
Prior to PragerNuform’s introduction to the process, the technology, although presenting seemingly boundless potential when it comes to what it can offer within the skate shopping experience, was, according to Rocheleau, simply a scanner that attached to a screen. He explains that Bauer needed a display partner with the capabilities and expertise required to design, execute and manufacture an innovative display that draws customers in to the technology in order to make them aware of its benefits. To achieve this, Rocheleau says that the PragerNuform team started where it always does – with the customer in mind.
“One of the first questions that we asked ourselves was: ‘how do we make this come to life for
the consumer in a way that engages them, while informing and inspiring them as well,” he asserts. “And, for us, designing this experience was all about guiding the consumer through the journey, providing them with moments of connection with the brand that are interactive and meaningful. We wanted to make it fun for the customer, too, while respecting the traditional Canadian skate shopping experience, elevating and enhancing it to new heights. And, we also knew that we needed to help build a space that allowed for the range of movement required to deliver on such an immersive experience.”
Form and function
The Bauer FitLab features a dedicated experiential consumer skate fit space within a number of authorized retail locations housing everything that any hockey enthusiast needs to get their game on. The centrepiece of the Bauer FitLab is,
of course, the scanning unit which is equipped with a digital touchscreen that allows consumers to learn about the unique qualities of their feet, and receive recommendations concerning different pieces of performance as well as related information about the products. It was an element of the project that informed PragerNuform concerning the things it needed to consider when developing the design of the Bauer FitLab and framework for the experience that it would offer. It required what Rocheleau describes as a perfect balance between form and function in order to be as effective as everyone had hoped.
“The traditional hockey skate shopping experience is such an important part of any aspiring hockey players’ life,” he recognizes. “And, just like most everything else, it’s also an experience that continues to change and become more nuanced and detailed. Our job was to incorporate all of the elements of the Bauer FitLab in a way that’s
both intuitive and engaging for the customer as well as striking from a brand perspective and consumer appeal point-of-view. So, we needed to figure out how to develop a functional space where Bauer could showcase their products and technology, and invite consumers in to learn more about these products and try out the entire Bauer FitLab experience, while ensuring that its aesthetic attributes were striking enough to encourage that level of enhanced engagement. To do this, we had to be cognizant of the fact that the entire Bauer FitLab is just as much a pointof-purchase display as it is a retail fixture. With that in mind, we wanted to create something that drew the consumer in with a highly considered use of materiality and graphics while keeping them engaged with the experience by effectively highlighting the technology and Bauer’s excellent range of hockey products.”
Ensuring long-term use
In addition to all of the considerations that were required with respect to the products and hockey skate fitting process, the PragerNuform team also had to incorporate flexibility into the design in order to ensure its maximized long-term use by Bauer and their selected authorized retail locations. This added yet another layer into the development of the design, challenging the retail display and fixture leader to innovate and lean on the creativity that it’s become known for over the years in order to help its client achieve its desired results and become the hockey skate leader in retail.
“We needed to make sure that the Bauer FitLab, and all of the elements that it houses, looked as elevated and clean as possible,” he explains. “We needed all of the fixture elements to be easily interacted with by the consumer. And it needed to be rugged as well. However, because of the ever-evolving nature of the hockey skate shopping experience, we also needed to ensure that just about every element of the design was interchangeable and able to constantly reflect current trends, brands, makes and models. We were also
asked to create a couple different versions of the Bauer FitLab – one for stores that had enough space to include a FitLab table where items are displayed and showcased, and one for stores that lack the required space to do so. For the latter, we designed a table with a high back that is significantly shallower that can slide up snugly on a wall, allowing those retail locations to house the Bauer FitLab and all of its functionality in less space. The idea behind every decision we made with respect to this project was to make sure that every element that we included is interchangeable, flexible, and reusable over time, providing the greatest positive impact possible.”
Continued growth trajectory
The PragerNuform team developed the design for Bauer creating it in-house and working with a vendor in China to manufacture the units, while meeting all desired specifications and criteria for the Bauer FitLab displays and fixtures. Since its launch, Rocheleau explains that the Bauer FitLab’s design has been so well received that it’s garnered additional work for the company which also recently developed fixtures for Bauer’s line of apparel. And, he says based on PragerNuform’s plans, the positive growth trajectory the 86 yearold company is enjoying is only set to continue.
“A project like this is a huge opportunity for us. It not only allowed us to work with a world-class partner in Bauer, enabling us to leverage all of our in-house knowledge and expertise, but it also challenged us to raise our own standards and to expand our perspectives of what’s possible. And, we’re going to continue to do more of the same, seeking out partners that are looking to take their businesses to the next level. By providing guidance and our specialized understanding of the industry and the processes involved in developing and executing a bold and ambitious design, our goal is to help bring brands and products to life.”
For more information about PragerNuform and the services that it offers its clients, visit www. pragernuform.com.
The evolving Canadian marketplace
As consumer preferences continue to change, so does the shopping centre, adapting expectations of today’s shopping experience // By Sean Tarry
Canadian retail
Formost operating within retail, the challenges that are being faced today are simply a stark reality of doing business. Rising costs and a general sense of financial uncertainty have cast quite a pall over the industry of late. It’s also resulting in sharp turns in consumer behaviour and an uptick in their digital habits, requiring many retailers to quickly adapt their offering and service to meet these changes in taste and preference. For shopping centres, their landlords and retail tenants, the impact of these changes can often be more acute, demanding from them constant innovation and a consistent rethink of the value they’re providing visitors.
With these current challenges in mind, we sit down with Tom McGee, President & CEO at the International Council of Shopping Centers (ICSC) to discuss the current state of the North American shopping centre, the continued evolution that’s needed in order to remain relevant as a shopping venue, and what the mall shopping experience might look like going forward.
Image courtesy of Quadreal Property Group
Retail Insider the magazine: In your estimation, considering the challenges that most retailers operating within the industry face today, what is the current state of the North American shopping centre?
Tom McGee: Marketplaces and shopping centres have continued to show their resilience and stability, despite ongoing economic challenges like inflation and an increased price sensitivity amongst consumers. Vacancy rates remain historically low, reflecting robust demand for retail space. But higher interest rates have slowed the building and development of new space, making it challenging for some retailers to find suitable locations.
However, this strong demand for store space signals a healthy marketplace and underscores the importance of physical retail in today’s shopping landscape – and that both retailers and consumers see it as an asset. In fact, retailers can see a benefit beyond just in-store sales, as our recent Halo Effect III report showed a direct correlation between a new physical store and an increase in online sales in that area.
Our marketplaces have evolved over the past few years to meet changing consumer preferences. Today’s shopping centres are more than just places to shop—they’re vibrant hubs that blend retail with entertainment, dining, and services, creating a dynamic, multifaceted experience for visitors.
RITM: From your perspective, what about retail marketplaces and spaces have changed most significantly over the course of the past 5 to 10 years?
TM: Over the past 5 to 10 years, retail marketplaces and spaces have undergone significant transformations driven by evolving consumer expectations and technological advancements.
There’s been a notable emphasis on creating spaces that serve as community hubs—places where people not only shop but also socialize, dine, run errands, and seek entertainment. We’ve seen a shift towards more diverse tenant mixes that cater to the modern consumer’s desire for convenience and unique experiences. This focus on experiential retail is key to the industry’s resilience, as it continues to adapt to economic pressures and changing consumer behaviours. The marketplaces of today are not just about transactions; they’re about creating connections and fostering community.
Retailers are also exploring innovative formats like small-format locations, pop-ups, and storein-store concepts, which offer flexibility and allow brands to quickly adapt to changing consumer preferences and demand. Additionally, the rise of omnichannel retail strategies, including curbside pickup and BOPIS has redefined convenience, making it easier for consumers to blend online and in-store shopping experiences seamlessly. In fact, the ability to use stores effectively
Left to right: Oakridge Park (Vancouver), Yorkdale Shopping Centre (Toronto), RoyalMount (Montreal).
as “distribution centres” to support omnichannel commerce is a significant change in the past several years, and one that retailers are taking advantage of to meet consumer needs.
RITM: What challenges do you think are posing the greatest impediment concerning the continued growth and evolution of North American retail marketplaces and spaces?
TM: The continued growth and evolution of North American retail marketplaces is facing space constraints, a byproduct of a lack of new development. High costs associated with construction and land acquisition, partly a result of high interest rates, have resulted in less new retail space being built. Developers and retailers alike are hopeful that interest rate cuts will make it less expensive to finance new projects, thus removing a significant barrier for expanding retail footprints and modernizing existing spaces.
And, the demand for brick-and-mortar retail is very much there; in our recent survey of retail leaders, 78 per cent of executives said foot traffic to brick-and-mortar establishments rose over the past year, and more than two-thirds said their organization is currently looking to grow and expand the number of stores. As consumers look for dynamic and experience-driven retail spaces, our industry’s ability to innovate remains strong, and space constraints have been partially and temporarily remedied by small-format stores, pop-ups, store-in-store options, and other innovative formats.
RITM: What in your estimation are some of the more successful retailer initiatives today with respect to consumer attraction?
TM: During the pandemic, retailers embraced omnichannel strategies as consumer shopping behaviours shifted. Today, click-and-collect options and other convenient services are essential for today’s omnichannel consumers.
We’re also seeing an increase in mixed use developments focused on creating centres where
people can shop, work, dine, and play in the same area. As a result, these developments can help transform marketplaces into vibrant communities and create new economic opportunities.
Additionally, experiential retail is a key component to attracting consumers, as brands look to create memorable in-store experiences through initiatives like interactive displays, in-store events, product demonstrations, and immersive environments that engage customers beyond just shopping. Entertainment concepts, like escape rooms and mini golf, continue to rapidly expand, as consumers increasingly desire opportunities to socialize and share experiences together.
RITM: Going forward, looking ahead over the course of the next one to three years, how do you believe North American marketplaces and spaces will be described?
TM: Over the next one to three years, we can expect North American marketplaces to continue evolving based on consumer demands and appetite for physical retail – characterized by a fusion of innovation and personalization.
Physical retail will increasingly shift towards creating immersive, experiential environments that go beyond the traditional transactions and turn stores into destinations that engage and captivate consumers. The growing trends of omnichannel strategies will also become more seamless, integrating online and offline experiences to offer customers a personalized journey from digital touchpoints to in-store interactions.
As with other industries, technology will continue to play a growing and pivotal role throughout retail and the marketplaces industry, with innovations like augmented reality supporting offerings like virtual try-ons and AI-powered recommendations to further enhance the shopping experience both online and in-store. As a result of adopting these initiatives, the retail landscape will become more dynamic, personalized, and interconnected, setting new standards for how brands connect with and serve their customers.
Expert: small businesses online growth hampered by uncertainty and insecurity
A persistently cautious consumer combined with a world of business unknowns are leaving many small businesses across Canada in a troublesome position
//
By Sean Tarry
Image courtesy of dj_aof
It’snot easy to run a small business, on the best of days. And – take it from many who are currently trying – it’s next to impossible when dealing with the string of challenges that retail entrepreneurs are faced with today. From a sluggish economy and increased costs to a severely pessimistic and disillusioned consumer, small business owners have got to contend with headwinds coming from multiple directions in order to sustain their livelihoods. And, according to David Nagy, digital pioneer and Founder of eCommerce Canada, they are headwinds that are really beginning to take their toll on small business owners operating across the country.
“Small businesses in Canada are really feeling that paralysis of uncertainty,” he says. “Many don’t know where to invest, and so they aren’t investing. They don’t know who to hire, what to hire for in order to find success. And, there isn’t a whole lot of confidence in the consumer today, either. Nobody believes that they should be out there spending money on things, because, for most, it doesn’t seem to make a bunch of sense at the moment. Consumers today seem to be
holding their cards pretty close to their chests, remaining extremely cautious about what they spend their money on. Real estate is down, as are vehicle sales, from traditional numbers. These are massive market indicators with impacts that tend to trickle down to shopping centres and Main Street retailers.”
Challenge and struggle
Nagy goes on to recognize other areas like hospitality that have been struggling, particularly those operating restaurants. Having just endured a Summer that did not live up to the season’s historical performance, the plight of the restauranteur provides a painful reminder of the turbulent and tenuous times in which we’re living, and also serves as another stark reflection of a recoiled consumer. It’s a hesitance to spend that the industry expert says is resulting in a bit of a conundrum for most small business owners.
“Whether the weak economy is more a perception than a reality or not, it certainly doesn’t seem good to most,” he asserts. “As a result, consumers aren’t buying anything, online or in-store. They aren’t investing in anything. And so, small
”At the moment, it’s probably best that small businesses control what they can control. It’s always important to do so, but has perhaps never been more critical to the health of an operation.”
- David Nagy, eCommerce Canada
business owners aren’t investing in anything, either, because they have no idea what their return is going to look like. And there is certainly more competition than there is opportunities, and so most businesses have ended up with far more supply than they have demand. It’s not a favourable situation for them to be in. They’re running at a deficit, scrambling to find new business where there just doesn’t seem to be any, often resorting to discounting and making exuberant offers. It’s all hampering the efforts of small businesses to sustain their operations, never mind grow their online business.”
Control what you can control
In light of the current economic climate and industry landscape, Nagy suggests that small businesses have just got to put their heads down and power through this difficult period. He underscores the special kind of character that’s required to run a small business in Canada – one of toughness with the ability to adapt and respond on the fly, and to be resilient in the midst of hardship – believing that it’s these qualities that will see them through the storm, leading them once more toward a trajectory of success and growth.
“At the moment, it’s probably best that small businesses control what they can control,” says Nagy. “It’s always important to do so, but has perhaps never been more critical to the health of an operation. And, it’s also not a bad idea at all for small businesses to hold back when it comes to investment. Considering everything happening around us, it’s a rational decision and one that makes a lot of sense right now for most. For the few, it might be a good idea to invest against the grain and double down on the areas of the business that they’re investing in and growing. But, conditions aren’t really favourable at the moment in terms of taking risks.”
Awaiting the opportunity
Nagy continues by acknowledging that it can be incredibly difficult for small business owners
who may feel as though they’re stuck in a rut and unable to grow amid increasing competition. But, he offers that despite all of the admirable qualities that small business owners possess, patience may be the most important to leverage at the moment in order to weather the current negative impacts, preparing themselves for more moderate economic and market climes.
“Sometimes everyone just needs to wait for the pendulum to swing back,” he says. “And this is one of those times. We’ve got to wait patiently for consumer confidence to bounce back and for them to start spending again, allowing sales to bounce back. This is opposed to spending $100,000 in an effort to solve a challenge that can’t be solved with investment. Patience, and taking the opportunity to step back a bit to evaluate the parts of the business that are working and those that need attention, will be key while waiting for the opportunities to return.”
Return of investment
Despite the bleak nature of Nagy’s analysis, he says that he’s been in and around the retail and ecommerce industries long enough to know that it’s only a matter of time before that pendulum will eventually swing back. And when it does, those across the country who have withstood this brutal period will come out of it stronger and more determined than ever to succeed and contoinue to make a difference in their communities.
“Small businesses are the backbone to the communities that they operate in. There’s no question about that. And I’m sure that when the time is right - when consumer confidence is boosted and sales begin to return – Canadian small business owners will be more eager than ever to invest and innovate in order to improve their services and offerings and enhance their relationship with their consumer, both in-store and online.”
Image courtesy of Tevarak Phanduang
In the next issue…
• AIs impact on retail
• The great data revolution
• retail technology
• A look ahead to 2025
Distributing January 2025
Image courtesy of Liliboas
