Canadian Retailer - Holiday 2016 - 16
KPMG EXECUTIVE ROUNDTABLE
Bennison: Our business is unique in that we are two years old. But in that
short time we have done a great deal to set ourselves up for success. Apparel brands need time for their product lines to mature, and as we gather
feedback and analyze the results over time we are equipping ourselves
with the insight we need to develop out our strategy and growth plans.
Meanwhile our current collections are being well-received.
Green: We're in the midst of an expansion strategy and have laid out a five-
Beyond the near-term
Consumer spending is
expected to settle down to
a 'cruising speed' below 2%,
limited by high debt levels
and only moderate gains in
employment and income.
Source: TD Bank
year roadmap for success. Although we considered a number of different
factors in developing the strategy, we started with our product and our suppliers. In a tough economy such as the one we're experiencing right now, the
most important thing for us has been to align with a manufacturer who can
not only deliver a top quality product to our customers, but also takes pride
in it. We have done this by making them a partner and shareholder in our
business. In doing so we have raised capital and at the same time solidified
both the product and the manufacturer's investment in our success.
Lawson: Some of the larger players within the liquor industry are currently consolidating. There's also been an awful lot of growth among small
grassroots craft beers and local vineyards, too. We're starting to see some
impact as a result of these two things. For one, it's making for a unique supply chain. We're either dealing with a multi-billion dollar company, or with
the small guys. So we have to be agile. We're lucky in that we only trade
in British Columbia where the economy is strong and where business has
been strong for the last three years. But the market's changing and is ending up with the creation of some unique opportunities in the marketplace
to get behind 'buy local'.
Des Roches: Our business has been around for 35 years. Our company has
On a regional basis
Sales were down (month
over month) in July in 6
provinces: New Brunswick
(-6.9%), Newfoundland and
Labrador (-6.2%). Sales were
also down in all three Prairie
provinces, while Ontario and
British Columbia recorded
moderate improvements of
just below 1%.
Source: TD Bank
seen different strengths of economy and have followed different opportunities at different points in time. And from experience, I have to agree that
during what some might see as difficult economic times, there are lots of
opportunities to pursue. Right now the economy seems flat, and it doesn't
seem as though it's going to improve much over the next little while. By
this time most companies have cut expenses as much as they can. We
are now building our relationships with customers and becoming more efficient at what we do.
Letts: We are in a fortunate position in that our business has experienced
tremendous growth in BC and Ontario fuelled by a very active housing
market. This has offset the losses in Alberta due to the downturn in their
economy. We expect this trend to continue in 2017. However, we are mindful of how the new mortgage regulations and the foreign ownership tax in
BC and how that might impact the furniture and home décor business.
Labistour: Growth is happening in certain areas where technology is driving it. But outside of those areas, the growth is often negative. What we're
seeing right now is technology demonetizing things, pulling money out
of the system. The use of technology is driving cost down and removing
people from the chain, which means that fewer people are employed. We're
trying to figure out what this is going to look like for us over the next decade and how we're going to have to respond. But we don't look at growth
through the lens of growth alone. We look at it through the lens of the
consumer and what the consumer needs with the realization that unless we
offer a great experience, we're not going to be competitive. Our most valuable customers shop every one of our channels. With these things in mind,
were looking at changing our business as opposed to growing it.
CANADIAN RETAILER | The Loss Prevention Issue