Category Archives: Business in the 403 Articles

The retail life cycle claims it’s newest victim

It was a particularly sad week for those of us who love the art of selling. The retail life cycle has claimed another retail giant. Sears Canada, after desperately holding its operations together for the past few months while it scrambled for someone to buy it, has filed for bankruptcy. The plan to have its former CEO put together a consortium to pull it out of the dumpster has failed and another chunk of Canadian mall space will need redesigning.

This coupled with the bankruptcy protection of Toys R’ Us now has put the reminder of big box retail on guard. Not so many years ago, you could see the demise of the high end retail sector starting to crumble. When Wal-Mart entered the Canadian market in the early 90’s the market started to turn and with the eruption of category killer stores, it made the department store of the 70’s a thing of the past. As we reflect on these retail departures, let’s look back fondly on other retail that has long since vanished:

  1. Zellers – March 2013

This one hit hard in my family. There were generations on family and friends who gave their blood, sweat and tears to this all-Canadian discounter. The end had been on the horizon for many years, as the battle for discount supremacy ran the direction of Wal-Mart. They gave us gifts such as Dollar Daze, the Skillet Restaurant and Club Z points but it wasn’t enough when the boys from Target came calling. I guess the saving grace is that they fought Wal-Mart for 20 years while Target failed here in less than 2.

2. Eaton’s – June 1999

The Eaton’s retail corporation was THE retail giant in this country for the better part of 100 years. As the market shifted towards discount, there was not room for this traditional mall anchor. The name was so widely respected that entire downtown shopping centres were anchored by their stores and the mall’s remained named “Eaton Centre” until even 2014. They gave us distinct gifts such as prestige service levels and a formidable catalogue business but it was the Eaton brand which remains burned into our minds today.

3. Woodward’s – September 1992

For several decades, Woodward’s WAS the epitome of the elite shopping experience In the days where Eaton’s, The Bay and they went head to head to head for the title of best service, there was no question who was that champion. Born out of the West Coast, the real estate of Woodward’s was one of its true assets. Many downtown shopping blocks in Western Canada were dominated by these massive stores and major shopping centres were also occupied by their footprint. When the HBC corporation took these spaces over in 1992, the legacy of the retailer ended. I was involved in one of those takeovers and can recount one amazing story. As we cleaned our way through one of these gargantuan buildings, we found a locked room in the basement filled with old fur coats that had been tucked away and forgotten about in the transition. The value of “lost” merchandise was tremendous and spoke to the pure affluence of it all.

4. Woolco – September 1991

Yes Woolco. The mighty ship of Wal-Mart cam into Canada in 1991 and took away our favorite reg light specials and their infamous $1.44 days. The landscape was never the same again in Canada and in some small way, their demise led to retail chaos in Canada. Their stores were notoriously junky and worn down but still effective. They were the first of the bi box stores to vacant the country and are revered in many places.

The bankruptcy train didn’t leave out it’s smaller and more formidable, category killer stores. Think about these stores who have now vanished from the Canadian retail scene:

Danier

Aeropostale

Smart Set

Grand & Toy

Beaver Lumber

A&B Sound

Future Shop

Bootlegger

And the hits keep coming at us with rumours that Claire’s, Payless Shoes and Gymboree will all become one of the recently departed. All the while, we continue to buy more and more from Amazon and other online retailers, making the hill even greater to climb for brick and mortar stores. Retail is meant to be an experience and good or bad, those companies that have left us, didn’t all do it wrong, they just ran into other retailers that did it better. Sobering thoughts for those of us who still make a living selling stuff.

Marco

 

Right or wrong – Alberta is going up in smoke

Now the discussion around recreational marijuana has become real. Yesterday, Alberta announced the start of a framework that will see Alberta become the most progressive territory in North America on how and where it can be used. I have attached the article here for your reference:

CBC article

Beyond the debate on whether marijuana should be considered the same as alcohol in its usage and handling, there are so many issues I see within this rough framework. Hopefully, there will be some thought put into the final draft but for now, these areas need clarity:

  1. The proposed age of 18

One should argue that this minimum age should be increased for alcohol consumption as well but most physician groups argue that the developing brain is adversely affected by booze or drugs. Starting this journey at 18 is a recipe for disaster for our youth.

2. The legal carrying amount is set at 30 grams

I am no expert in this field but when I hear that you can carry 30 grams of marijuana on you without reproach it seems excessive. This equates to around 40 joints which seems like a helluva party for most. Users would argue that you can buy a 60 count Budweiser pack at Costco or 2 L of hard liquor with no issue. The other interesting perspective was that there are much higher limits to what you can hold at your home (much like booze).

3. You can grow it at home

Again, just like alcohol, where you can home-brew beer or wine, you can grow your own stock at home. This seems like an alarming trend when the police are working so hard to stop grow ops in the city. The difference I see is that no one I know has ever tried to sell their home-brew to others. If the growing of pot isn’t tightly monitored (and how will they ever check every house for the 5 plant minimum) we are simply creating a whole new way for this drug to be black marketed to the wrong people.

4. Where you can consume it

Thankfully, they plan to stop users from smoking it while behind the wheel. At this point, they have not adequately developed a way to test for intoxication levels for drivers. They logically propose outlawing usage around public buildings and places where kids could be frequenting (a whole 5 metres away). What baffles me is that they propose that you could be walking down the streets or any other general public place and be consuming it. They would never let you walk down the street with a beer in your hand so why should marijuana be considered different? This again seems like something that will be impossible to enforce and will lead to issues.

5. They have left all of us to generally police each other

For the most part, society seems to be able to police one another. we know we shouldn’t drink and drive or consume alcohol in public. We can’t smoke on planes or outside of designated areas at buildings. Now there becomes this new animal on the block. What will people be smoking when they take their designated smoke break at work? How will businesses be best equipped to monitor consumption before and after their shift? How will the black market product become a factor on the “safe” retail product? What will the advertising model become where a glorification of the product is presented?

On the record, I am generally naive about marijuana usage and its effects. I am against the use of recreational drugs in most situations even though I can’t back up the reasons why it is different from alcohol. I have heard many of the arguments on how much safer pot is than alcohol or smoking, for that matter. All of it may be plausible and much will be recorded on it over the next year. What I do know is that we aren’t in Kansas anymore (or Canada for that matter). I’m sure there is a happy medium for everyone to enjoy the use of any recreational vice. Unless Albertan’s speak out and attempt to put tighter boundaries on how, where and what is being done here, we will have no one to blame for it but ourselves when July 2018 rolls around.

Marco

The four horsemen of the internet apocalypse

We are all responsible for it. The internet has taken over our lives and we flat out allowed it to happen. In it’s early days, the internet was simply an information source for anything we wanted to know. It was a virtual replacement for this old Funk & Wagnals encyclopedias that my father paid handsomely for many moons ago. Now it has become a 24/7 obsession with information now, no now, no right now, no I mean now. It’s completely awesome but not without it’s issues. Im my eyes, there are 4 horsemen of the internet apocalypse that are tearing down my new normal. Let me explain.

  1. Password control

Who would have thought that I would even need to come up with more variations on my nickname/pet name/favourite numbers etc to open up any simple account or webpage. Can’t I just search the web freely without having to feel like I am making a commitment to the site. I really don’t want the hassle nor the continued follow up that these sites send me. While I understand the reasons to keep my information away from the ass clown hacker who cares about my world, these passwords are unmanageable and piss me off daily. Well we’re on the topic of passwords, I equally hate members only websites where you need a password or subscription to look at their stupid shit. I don’t care about your website.

2. Online Poker

There must be tremendous money is this industry because I can’t watch any edition of Sportscentre without a commercial telling me how fun this pastime is. If I ever get to the point in my life where staring at a computer screen playing poker against some fictitious card sharks around the globe. Not only is it boring and mindless, it’s a complete disrespect for my intelligence. No thanks.

3. Customer review sites

We can all agree that it’s is always worthwhile entertainment to read the comments that people choose to give on various topics around the web. There are probably some sites where opinion makes the most sense. There are others where I want to smoke the person in the face who posts their opinion. I really hate travel reviews. There are almost always contradictions within their comments and I leave more confused about the decision to travel or simply stay home. We have gone too far when you can rate your teacher, previous lover, and favourite Game of Thrones episode. There is zero value that I get from these sites.

4. Pop up ads and spam

These are the worst people on earth who send random messages at my websites and their idiot brothers and sisters are even worse for sending me spam daily on ways for me to:

a. Collect lost money from my Nigerian family

b. Cure a raging case of herpes

c. Enlarge my penis to the point that I am a tripod

I don’t know how to stop these bastards from contacting me daily but they drive me crazy. Actually, I probably will enjoy their regular communication one day when my email box dries up. They at least provide humour in a long day.

There are many more problems with the web and I’m sure that you have your favs. Let’s just focus on the fun stuff instead like cat videos, SNL clips and eBay and say that we are better off with the inter web than without it.

Marco

 

 

The interweb is killing my Christmas…

Christmastime is here again and with it comes my lifelong obsession with retail. This truly is the greatest time of the year and I live for the commerce that flows around it.

People say, “Christmas has become too commercialized”. It’s true. We are all driven to find the perfect gift for that special person, sometimes at whatever cost. I spent a few hours Saturday at the BMO Centre wandering the aisles of staving Calgarians who were desperately dropping money for unique and sometimes ingenious goods for that loved one. I couldn’t get enough of it. The craft fair is commerce at it’s roots. Make something, likely with your heart and hands, and sell it for profit. The world of retail used to always be this simple. Go to your favourite store, shoppe, bazaar, fair etc and buy, whatever you have to to make the season right. That is until the internet ripped the heart out of Santa.

 

Now I would be a hypocritical Grinch if I didn’t tell you that I have bought presents on the web. The sheer selection of items that you can reach via the web make this a retail phenomenon. Every year that goes by, I find myself buying new and novel items that I haven’t seen in stores. But every time I hit “click to buy” I feel the knife in my heart. I live and breathe retail daily and know the challenges that stores continue to have in finding the right mix of product and value to provide unique offerings to its patrons. If we just look at the art of online shopping for the selection, value and convenience it is, retail is doomed. But what about the experience?

I realize that the experience of hitting the malls is no picnic this month but we should embrace it. Is it really a special gift if I search it on eBay/Google/Amazon and have it shipped to my home while I sit on my couch drinking eggnog? Hell no! The real art is the experience in securing the gift within the marketplace we live in. That’s what makes it a special gift and what gives you the stories to tell for years to come. Everyone loves to hear “that” story about “that” tremendous find for “that” amazing person in their life. The only place this story can be formed is within the madness of the retail that Christmas brings.

 

So let’s all head out there this next 12 days and revel in the moment. There could be a day in our lifetime where we don’t have these gigantic commerce superstructures to visit. Enjoy the parking issues at Chinook Centre. Embrace the jostling and barging that goes on in Walmart. Bang carts with the people rushing to the checkouts at Costco. Cheer for yourself when you figure out your personal jigsaw puzzle of gifts that you have to solve before Jesus’ birthday. Most of all, buy some stuff because it’s good for your soul more than it’s good for the economy. Don’t go crazy and live within your means but come on buy some shit you don’t really need or likely want.

It continues after Christmas too. Boxing Day is like retail porn for people like me but admit it, you love it too. I know we can all buy electronics online much easier but get out and smell the money trading hands that morning. I will be the guy standing in Best Buy with a big smile on my face.

Happy hunting!

Marco

A true hidden gem – DJ Market

Mary and I heard from our friends Michelle and Alan about somewhere new to get fresh fruit and veggies. We decided this was the Sunday that we would venture over to the Blackfoot industrial area and see what the fuss was all about.

It was better than I expected. Although the location is certainly not on the beaten path (4645 46th Ave SE), it was an easy to find location just off Blackfoot Trail SE. As you approach the colourful quonset looking building, it looks nothing like your new world farmers market. As you come through the door, you realize quickly that this place is going you have some quality and selection in produce.

The first thing you notice is the variety of selection that this quaint place has within it. Seasonally, you will find choices in fruit and vegetables that your average grocery store will not have. I was surprised at the variety of vegetables that are in stock this weekend and we quickly started loading our baskets full. The second thing is the quality of the product. Fresh produce is not always in abundance in stores. We were pleased with the quality of the product and even more pleased when we sampled the goods lated that night. Lastly, we were stunned at the amount of product we were able to buy for less than $30. Things like hot peppers, grapes and baby carrots, which often go at premium pricing in grocery stores, went for bargain pricing here. I was cautioning Mary on the price of the Champagne grapes she was loading into bags when I realized they were priced at half the grocery store rates.

 

dj-market

The staff were very helpful to us and the patrons were even more helpful. You could tell that these customers were fond of this market and wanted to pass along their experiences testing some of the more unique samplings of the assortment. They would steer me towards their personal choices and give me the tasting choices of the selection. I can tell you that I tested their hypothesis that evening and they were right in all cases. I was well informed by them as to the seasonality of the foods and the fact that the market shuts its doors in mid-November as the supply of local veggies dries up.

Overall, we loved DJ’s Market! It was a refreshing change from the traditional farmers market experience and lended itself more to shopping at a farm, than a market. Is it worth driving from the far NW or NE corners of the city to buy? Probably not. But if you are living in the south central part of Calgary, this is a must try. We look forward to reloading our fridge there again next week.

Marco

 

Managing staff’s personal lives through work

I own a business and I spend most of my time investing in the people that make this company great. I can’t think of a better place to spend my time.

It’s the easiest statement in business. I’m only as good as my weakest staff member. But do businesses really know what that means. We, as the people that inhabit this planet, are complicated beings. We do not make things easy on other people around us and we tend to carry baggage and issue around with us. I strongly disagree with the statement that staff should “leave their personal issues at home” and come to work fully prepared to help the team. Of course, I expect everyone who works with us to do their best in this regard but to think that they can forget or fully bury their other life, is foolish. What staff really need is somewhere to go that is positive when their personal life is sideways. I feel compelled to be a resource to my colleagues when they need it most.

employee-picture

I think the impact of a positive understanding of their personal issues, to be moving and remarkable to a company. Boundaries are critical and mutual understanding and respect is essential to success in staff discussions but ignorance of these situations is unacceptable. I spend many hours a day taking the pulse of my operations and gauging where the hot spots are. If I am told that a staff member is troubled or having issues at work or home, its essential that we act quickly. The staff member isn’t always going to be willing to discuss and may show resistance but in my experience, the results are remarkable.

I have had countless situations with my employees over the years and I venture to guess that the large majority turn out right. Listening to them is an art, all the while steering them towards resolving their emotions over something. Very often, the issues at work come from the issues they carry with them from home. It is our responsibility to give them some of our time to listen, often without comment. It’s never easy because often there are obvious answers to their problems but they need to work through the reasoning themselves. I also believe that we have an obligation as leaders to also be honest with the employee, at work and often when they open up about home. A bad situation can’t always be sugar coated for them but I always err on the side of giving them a solution. They need to walk through the conclusion themselves.

A colleague who feels like you are invested into their work AND home life is a colleague who will become your greatest advocate. Their problems may persist and they may ultimately not be able to clear themselves of the issue but they will be committed to you and your business cause. Take a few minutes to look at your employees with a different set of eyes. See them as people. People who have tumult in their past and future and those who, like you, are vulnerable to the situation. If you can reach them on another level, you are giving them a great gift that they will remember and desire to return in the form of valuable performance.

Marco