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Canadian Push 12-12-14


Why Canada Is Headed for a Retail Bloodbath - Sears Canada Could Be the Canary in the Mineshaft  Target has struggled since it entered the country. ●Walmart has laid off 1,000 employees this year. ●Chapters/indigo, Danier, Reitman's and Bikini Village are all closing stores. ●Jacob's, Bowrings and Bombay are operating under court proceedings. Reitmans - closing stores and rebranding. Mexx Canada in bankruptcy. Just to name a few. Two factors are hitting retailers at the same time, creating the perfect storm for a retail bloodbath.  1) Oversaturation: There are too many retailers chasing too few dollars in Canada. Compounding the oversaturation problem is that the majority of the spending power in Canada is concentrated in an area that is a few thousand miles long and a hundred miles wide, which is expensive to service. 2) Digital Retailing: Although we spend a third online of what Americans spend, digital retailing is taking a big bite out of bricks and mortar retail sales. This will get way worse over time. If medium and large retailers can't figure out a way to make their online offering pick up the slack of its offline sister, expect them to continue to shutter stores, lay off employees and become targets for cheap acquisition. We predict three outcomes if medium and large retailers can't effectively address oversaturation and the digital threat:
1. A culling of the marketplace: Chains will merge, be acquired, go bankrupt or leave Canada until some sort of economic equilibrium is achieved.
2. Commercial real estate drop: If stores continue to close and retail tenants can't be replaced fast enough, the public companies that own many of our malls (commercial real estate investment trusts or REITs), will have to compete more aggressively for a shrinking pool of major tenants. "Compete more aggressively" usually means lower their rents, resulting in lower revenues for mall owners. This will put downward pressure on the share prices of normally stable REITS.
3. Supplier chaos: Behind every retailer that is suffering stands hundreds or thousands of its suppliers who are suffering too. For many of these suppliers, the chain that is failing is their biggest client. Suppliers' orders get reduced, their payment schedules get stretched, wreaking havoc with their cash flow, and any future certainty of repeat sales disappears as retailers plan on a month to month basis.

Canada's Gov't will be investigating your 'unfair' pricing - Aims to cut retail price gap with U.S. - Watch Out Retailers!  It's always been the complaint for years. It's fueled cross-border shopping that takes billions from Canadian retailers. And when the Canadian Push started, most Canadians thought prices would come down - and they've done the opposite. Prices have actually gone up. But now the government is stepping in by introducing a law to boost the authority of the Competition Bureau to investigate suspected cases of price discrimination and pursue court orders compelling companies to produce documents justifying differences in prices. "It is called geographic price discrimination," Moore said at an event in a Toronto-area toy store. "It involves charging Canadians more than Americans for the exact same product simply because of where we live." Moore said that the government is not trying to regulate retail prices. The idea is to give consumers information about unfair prices. Which means - watch out retailers here comes your bad press. The bill, tabled in the Commons today, will: ● give the commissioner of competition the power to investigate suspected cases of price discrimination. ● give the commissioner of competition the power to obtain court orders compelling companies to produce documents to prove the difference in what they charge is reasonable.

Canada police 'can search phones' after arrest
Canadian police can search the contents of a mobile phone after arrest, the Supreme Court of Canada has ruled. In a 4-3 decision, the court said a warrant was not needed as long as the search is directly related to the suspected crime and records are kept. The outcome is opposite from a similar case decided in the US Supreme Court in June. In a unanimous decision, the US high court said searches of mobile phones must require a warrant, with few exceptions.

73% of Canadians want in-store pick up vs. home delivery - 23% of all online sales are ship-to-store  With e-commerce well behind the U.S. Canadians are right up there with their expectations. when going online to purchase an item that is unavailable at a local store, 73 per cent of Canadian consumers said it is important for retailers to offer the option of having the item shipped to the store for pickup instead of home delivery. In the past six months, nearly a quarter (23 per cent) of customers who made online purchases have opted for in-store pickup. The study also found retailers risk losing up to 17 percent of customers to competitors if they do not offer the convenience of a ship-to-store option.

Canada's Black Friday sales weakest in 3 years - traffic same as LY - Cyber Monday up 12%

Mexx Canada's 95 stores files Bankruptcy - Dutch parent Mexx declared bankruptcy in Amsterdam as well

Toronto area police recover baby taken in vehicle theft

Oakville, Ontario, Halton Regional Police Service implements Project H.O.L.I.D.A.Y. They're including ORC in their program!  Project H.O.L.I.D.A.Y. will run from December 1, 2014 to January 31st, 2015. High Enforcement on Repeat Offenders. Organized Retail Crime/Property Crime Thefts from Vehicles & Residential Break and Enters: Increased levels of visible/plain clothes police, Partnered work between Police and Retail Representatives (Loss Prevention) combined with Education, Strategic Deployment, Enhanced Investigative Strategies and devotion of additional investigative resources. Links to Services/Mental Health - Impaired Drivers - Domestic Incidents - Alcohol Related Issues - Youth Issues

Two men arrested in card-skimming operation going on across the Prairies in Western Canada  Police allege the men used fraudulent debit and credit card terminals to steal people's card information as they made legitimate transactions in stores. The investigation started following a tip in July that a card-skimming operation was going on across the Prairies. Police used video surveillance to identify four suspects. The frauds allegedly happened in Alberta, Saskatchewan and Manitoba, but police said they determined the group was based in Saskatoon. While executing a search warrant at an apartment in the city last Thursday, police said a man, 41, returned to the residence and was promptly arrested. A second man, 39, was arrested this morning. Police found numerous items that they believe were fraudulently obtained. Police are continuing to investigate and have now asked for warrants for three other men they believe are involved.

2 women sentenced to jail for Birks $10,735 Grab and Run robbery in Carrefour Laval in Montreal  Two women who pleaded guilty to theft and assault-related charges were sentenced to jail time after attempting to rob a Birks jewelry store this weekend in the Carrefour Laval shopping centre. Police said the women arrived at Birks around 2 p.m. on Saturday. According to Const. Franco Di Genova of Laval police, when one woman asked to try on a watch that cost $10,735, the other woman pepper-sprayed the store security guard. Di Genova said both women ran for it, fleeing the mall and running to the nearby Sheraton Hotel. Di Genova said when police tried to arrest them a few minutes later, one of the officers was pepper-sprayed before they were successfully apprehended. The women, from the Toronto area and Halifax, were charged with a litany of offences, including theft, armed assault, conspiracy to commit armed robbery and possession of a prohibited weapon.

Man steals puppy from Nanaimo pet store
Someone definitely has their Grinch on after a man made off with a Daschund/Chihuahua puppy from Paws N Jaws in a Nanaimo mall yesterday. According to Nanaimo RCMP, a clerk at the local pet store in the North Town Centre mall said she was showing a female customer a dog at about 3:30 p.m. when a male asked to see a puppy. When the clerk returned another dog to its kennel and returned to the puppy area, she noticed one of the two Daschund/Chihuahua puppies was missing. Staff and police believe the male suspect put the puppy inside his jacket and walked out of the store. 

Canadian Push 12-12-14
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