Dollar Store Wars Heat Up as Canadian Retail Polarizes - High-End and Low-End
retailers succeeding - Middle-Market retailers struggling and in some cases
closing The Canadian retail market continues to polarize.
Montreal-based dollar store retailer Dollarama has significantly increased its
anticipated maximum number of Canadian stores, and competitor Dollar Tree is
looking to increase its current store count five-fold. Family Dollar is also
eyeing Canada, creating competition at the low-end which mirrors the potential
bloodbath at the top end, as luxury retailers also battle to gain Canadian
market share. In March of 2014, Dollarama CFO Michael Ross said that the then
800-store retailer would expand by about 50%, eventually operating about 1,200
Canadian locations. American competitor Dollar Tree, which currently operates
over 200 Canadian locations, say its goal is to eventually operate in excess of
1,000 Dollar Tree Canada stores. On BNN last month, HRC Advisory CEO Antony
Karabus described how polarization in the Canadian retail market continues to
unfold. He noted how high-end and lower-end retailers seem to be succeeding
in Canada, while 'middle-market' companies struggle and in some cases, close.
Canada's 'dollar store wars' is certainly an indication of this, as is
increasing competition at the top end of the retail spectrum from a variety of
Sears Canada in 'make or break' stage as retailer continues to struggle: analyst
Time is running out for struggling department store chain Sears Canada to
improve its financial results and the chances of survival are slim, says one
retail analyst. Keith Howlett of Desjardins published a report Friday saying
it's "now or never" for the money-losing company to make headway on a turnaround
that has dragged on for several years with little progress. "The next seven
quarters are 'make it or break it' for Sears Canada," he wrote. "Our current
view is that an operating turnaround is improbable." Howlett's prediction
suggests the fate of the company will be determined some time around the 2016
holiday shopping season. The company declined to comment on the analyst report.
The stark outlook comes after Sears Canada made dramatic reductions to its
operations, laying off 2,200 employees last year - with the brunt of the cuts at
outsourcing call centres - while thousands more were eliminated in 2013.
Widespread cost-cutting was rolled out as Sears dealt with the arrival of Target
Canada as a new competitor. The retailer also scaled back its operations,
selling leases on numerous properties and closing some stores.
Hudson's Bay Initiates Unprecedented Store Renovations
Hudson's Bay has embarked on several ambitious store renovations, reflecting the
retailer's new aesthetic standards. The Toronto flagship will act as a prototype
of sorts, with recently completed interiors setting the standard for future
store upgrades. MaryAnne Morin, chief merchant officer of Hudson's Bay Company,
recently told Women's Wear Daily that changes in the Toronto Queen Street
flagship will be reflected in other units across the chain.
Report: Major gaps in Canadian online retail - eBay and Amazon 'light years
It's been a dramatic year for retailers in Canada with major closures, new
entrants into the market and mergers and acquisitions. And while e-commerce is
playing a bigger role, bricks-and-mortar stores remain central to the retail
experience. As a result, investing in both offline and online experiences to
deliver true omnichannel retail is more critical than ever. Consumers are
online. Where are the retailers? BMO Capital Market's Canadian Digital Retail
report highlighted major gaps in Canadian online retail, which is heavily
concentrated on electronics and apparel, with light e-commerce sales in other
categories. eBay and Amazon, the country's two largest online players, are light
years ahead of other major Canadian retailers in technology, customer experience
Food waste at record levels as other Canadians go hungry
Co-op Atlantic lays off 400 employees, closing 4 remaining Canadian grocery
Loblaw workers appear headed for strike in coming days
Editorial: Alberta risks ruin with plan for huge hike in minimum wage
High-income Canadians using cash the least: Bank of Canada
Russia criticizes new Canadian sanctions, warns of response
Retail Fast Facts: June 2015
● Total monthly retail sales changed by 1.7 per cent over the comparable month
● Total sales excluding food, automotive and gasoline changed by 5.0 per cent
over the comparable month last year.
Head of Quebec Bar Association suspended after alleged shoplifting incident
The Quebec Bar Association has suspended its newly elected head after
allegations she was involved in a shoplifting incident last year in Laval. The
association's board of directors held a special meeting Wednesday and voted
unanimously to demand Lu Chan Khuong resign. After she refused, the board
suspended her indefinitely. The move came following an interview Khuong gave to
La Presse, in which she addressed the allegations. Charges were never laid.
Instead, the Quebec Bar Association confirms Khuong said the Crown decided to
deal with the case non-judicially. Khuong denied the allegations and said the
situation reportedly involving two pairs of jeans worth $455 resulted from a
"moment of inattention" and occurred in good faith.
Jewelry Store Robbery at the Village Mall in St John's
It may be more of a smash and grab than a heist, but an early morning break-in
at the Village Mall in St. John's has netted thieves a large number of jewelry
pieces. Just before 2:30 a.m. today, the RNC responded to alarms at a jewelry
store in the west-end shopping centre where they discovered the break and entry.
The suspects broke into the Village first then into the store.
Guelph Police use tracking dog to locate shoplifting suspect
On Monday at 3:51 p.m., Guelph Police were called to a Woodlawn Road business
where store security was holding a man suspected of shoplifting. Before police
arrived, the suspect broke free from security and fled the store. Officers used
a police dog to track his scent and the suspect was eventually located. A
39-year-old Guelph man has been charged with theft under $5,000 and escape
Mounties Allege Kids Break into Manitoba Store Through Roof, Unplug Video System
Six children have been arrested after an action movie-style heist at a store in
northeastern Manitoba. Mounties say the youths, ages 10 to 13, entered the
Shamattawa Northern Store through the roof early Tuesday. They then crawled down
from the ceiling and unplugged the store's video surveillance system. Police say
the culprits filled bags with $10,000 in merchandise, including cigarettes,
caps, sneakers, food and a pellet gun. RCMP later tracked down suspects and
charged a 12-year-old and 13-year-old with break and enter. The others are too
young to be charged.