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Canada’s quirks make expansion there tricky, expert says - a few have failed
already David Marcotte, Kantar Retail’s senior vice president of
retail insights Americas, talks about the challenges retailers face in Canada.
Many U.S. retailers have moved into Canada by acquiring existing brands, as DSW
has done, but often those brands were damaged, as was the case for Liquidation
World when Big Lots Inc. came in, and Zellers Inc. when Target Corp. acquired
it. “If it was a weak brand to start, it’s going to be a struggle to change that
perception,” he said. There are financial challenges too – prices are generally
higher in Canada due to tariffs, labor expenses and other factors. While L
Brands Inc. has been a success bringing its Victoria’s Secret and Bath & Body
Works brands to Canada, it has struggled with La Senza, the Canada-born brand it
bought in 2007. Marcotte said that’s an example of the sometimes undefinable
quirks another country presents. For better or worse, they all have their own
Canadian identity,” he said. Marcotte said La Senza, despite being an upscale
brand, used to display products on tables in cardboard boxes. It looked cheap
and sloppy, but it had its appeal. “Canadians like to dig through bins,” he
said. “I can’t tell you why, but I can just tell you it is.” DSW also will be
working around malls and shopping centers, so location may not be an issue. That
is something Big Lots ran afoul of in its short-lived entry into the country via
Liquidation World. “You had to go and find them,” Marcotte said. “You didn’t see
them in any major trade areas.” There are some benefits to business north of the
border. E-commerce in Canada is much weaker than it is in the U.S. “You don’t
compete online there like you do here,” Marcotte said. “It’s almost impossible
to be cheaper online there.” Editors Note: Some U.S. retailers have had a
hard go of it with their 'Canadian Push' and new entrants are finding the
consumers well entrenched in their habits and buying trends. Some have even said
about the Zellers take over that 'You just can't put lipstick on a Zellers,' as
their locations for the most part are in old over developed areas that don't
have the same curb appeal the new developments have. And quite frankly with
their empty shelves and higher prices when they opened a lot of Canadians just
walked away. When they expected the prices to be more in line with prices they
saw in Target U.S. stores. To some it was almost an insult. It's going to be a
hard task to fix that perception and get them back. (Source
bizjournals.com)
Bitcoin’s slow crawl to acceptance in Canadian retail
Customers may see it as complex, risky and not worth the risk, but retailers see
an upside. Some view Bitcoin as a way to liberate consumers and merchants alike
from the so-called tyranny of transaction fees and central banks. It’s a hit in
tech-savvy circles, where it can be used to pay for an increasing number of of
goods and services online. And its use has been spreading to brick and mortar
merchants too – adventurous independent coffee shops, restaurants and
electronics stores world-round, to name a few. (Source
marketingmag.ca)
Canadian Tire - not wasting time - Opens 'Showroom' store in Toronto - An
Omni-store Canadian Tire’s experimental new showroom is taking cues
from online shopping in an effort to create a more cohesive consumer experience
across the retailer’s channels. Opened on Saturday, the 16,000-square-foot
showroom at the retailer’s Leaside location in Toronto features 35 digital touch
displays the size of large-screen TVs, a pickup area for online orders and bulk
purchases made in store, and merchandise organized to match the way it’s
displayed online. The new “living lab,” focusing mostly on seasonal products
like barbecues and patio furniture, was built to serve as a “test and learn”
experience for the retailer before it rolls out the new display techniques to
its 490 stores across the country. (Source
strategyonline.ca)
Tap-and Go credit cards drive 45% increase in fraud in Victoria - Police want
cards scrapped POLICE in Victoria want tap-and-go credit cards
scrapped because of a huge surge in fraud, but card issuers say they can’t see a
problem. The rate of deception offences has jumped 45per cent in Victoria, which
police say is the main reason for a 5per cent rise in the total crime rate.
Deputy Commissioner Lucinda Nolan said tap-and-go credit cards were being stolen
and used for a number of small transactions, often before the owner was aware
they had been robbed. Tap-and-go, or contactless, credit cards allow purchases
of less than $100 to be made without a signature or PIN. (Source
theherald.com)
Target’s new Canadian chief: ‘You have to be priced right’
Target Canada loses $211 million in last quarter - wider than last years $205
million loss
Eyewear maker Luxottica closes Winnipeg plant; 200 jobs reported lost
Calgary woman put needles in grocery's bakery and dairy products, now asking for
$8M in lawsuit for "loss of family honour"
Masked culprit admits role in slick jewelry store robberies
Calgary
Gun Store the target of Smash and Grab thieves; store hit twice in last 30 days
Robber who busted into stores with young kids in tow must deal with drug
addiction
Video
released of Yonge-Eglinton jewelry store robbery in Toronto
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