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In recent news, Bad Boy has experience some difficulties due to the challenges posed by the evolving economy. This has come as a shock to consumers who have been customers for decades, some since its opening in 1955. Additionally, Mastermind Toys, a toy retailer, has sought creditor protection in order to restructure their business.
The news was a bit more shocking for marketers as they recall that Mastermind Toys made the list of 'Canada's Best Managed Companies' back in 2022.
As part of our ongoing Industry Opinion column we caught up with Jessica Savage, CEO of North Strategic for a conversation about the changing Canadian retail landscape.
Is there still a future in brick-and-mortar-based businesses? In 2024, how will consumer shopping change?
Jessica - Canadians still have a lot of heart for brands that have brick-and-mortar destinations, along with elevated expectations of an in-store experience. Our clients, including Canada Goose and the recently launched “the rest” by Sleep Country, are all investing in truly immersive and personalized retail experiences that focus on the customer.
As social, tactile creatures, we still love to feel the material and weight of fabrics and new products, especially luxury goods, to help solidify our decisions on where and how we spend money. We also love to feel like we are a part of something – a movement, a moment – which is why you see other brands like Haribo investing in short-term, fun pop-up destinations that reward visitors and build brand affinity. Shopping centres, like CF Toronto Eaton Centre, CF Chinook and CF Laval, home to many of the best brands in Canada, are also investing in experiences with holiday celebrations and year-round programming, which, in turn, help their partner brands deliver on being a destination for shoppers too.
And yes, teens will still visit stores. Our community malls and shopping centres are some of the first places where we feel independent and can be social and free with friends.
Are there certain categories that no longer make sense?
Jessica - For me, it’s not about the category. It’s about the kind of experience a brand wants to give their current or emerging customer. Where and how do they want to try things? What experience do they want to offer? Just like a good channel strategy for reaching their target audience, a brand needs to think about all levels of engagement for their customer.
What can other retailers learn from these companies as they look to having a successful 2024?
Jessica - There will no doubt be difficult headwinds for retail in 2024, but brands that value their customer and deliver exceptional customer service and immersive experiences will thrive.
Is there still a need for physical stores?
Jessica - You bet there is, and there is still a need for shopping centres as a destination, whether you are a mission-based or exploratory shopper.
How will retail change in 2024?
Jessica - In addition to in-store experience investments, brands who are dipping their toes into brick and mortar will continue to look at pop-up and curated collections to excite and engage their current and emerging customers. It’s all about how a space and the brand make you feel when you are engaging with them.
What role does digital play in retail?
Jessica - Personalization for customers will continue to be a key component of any brand’s success and their loyalty strategy. Digital retail offerings that leverage emerging technologies like generative AI tools, including Duet AI and Vertex AI from Google Cloud, to personalize the shopping experience online can keep customers coming back.
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