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TOP HEADLINES
Canadian E-Commerce Reaches Record High
Canadian Consumer Retrenches, Does This Spell Trouble For Growth?
Organization engagement: Five key steps to aligning around the customer
Canadian chain hires Dollar General exec as CEO
Online shoe retailer Zappos.com pulls plug in Canada

AB
Sales tax needed
Alberta retail sales grow 5.5% from a year ago
Men flock to retail jobs
'Uglies' need not apply. Choosing employees based on looks seems inherent to the service industry 

BC
Vancouver businesswoman fed up with merchant credit card fee
Raising minimum wage a change past due
Lululemon’s problem? Customers can’t get enough
Another B.C. recall bid fails

RETAIL TRENDS
New Barcodes Allow Shopping from Smartphones at Home Depot
Millennials Slower To Take Advantage Of Retail Loyalty Programs
The Perks Of Starting Your Career In Retail

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TOP HEADLINES

Canadian E-Commerce Reaches Record High 
Source: Antonella Pannizzo, cactuscommerce.com, March 10, 2011

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Canadian Consumer Retrenches, Does This Spell Trouble For Growth?  
Source: Nick Nasad,Dailymarkets.com,  March 22, 2011

For a second month in a row, Canadian consumers cut back on spending as headline retail sales for January slid 0.3% to a seasonally adjusted C$37.1 billion.

That follows a decline of 0.2% in December. Both figures undershot expectations, and January’s data surprisingly so. The consensus forecast had been for a 1.1% increase in retail sales.

If we take motor vehicles out of the equation, sales were flat for the month of January, after a 0.6% increase in December.

Therefore, where in December, the bulk of negative reading could be blamed on a big drop in car sales, this time overall core retail sales show that consumer spending has hit a rough patch.

For the official release, follow this link to the Canadian Statistics report.

The data is slightly dated, since it measures the first month of the 1st quarter and we are almost done with the quarter, but it can cause some consternation among economists that the Canadian economy may not be as strong as anticipated.

The Canadian Dollar weakened in the aftermath of the data.

The USD/CAD which had tested our lows from yesterday’s session at 0.9750, bounced up off that low to 0.9807. Currency markets have been buying the Canadian Dollar on the back of favorable fundamentals and higher oil prices, but today’s data can scuttle some of that momentum.

What does weaker consumer spending mean for Canadian economy and Bank of Canada?

 

Another report today from Canada, the leading index, showed the prospect for the economy strong, as the leading rose 0.8%, led mainly by higher stock prices and stronger manufacturing.

See the full report for leading indicators from Canada Statistics here.

Traders and economists are watching the Bank of Canada for signs that they may go ahead with an interest rate increase as the economy recovers. The BoC however has been trying to play down Canadian Dollar strength and therefore has been reticent to signal higher rates.

The central was helped in this cause by inflation data that came in very tame if volatile items which include energy and food are taken out. In fact, core CPI slowed to a record low in February of 0.9%. This indicator had registered a 1.4% reading in January. The headline figure for inflation rose 2.2%, cooler than the 2.3% pace in January.

See the full report on CPI from Canada Statistics here.

On the jobs front, the economy added 15.1K jobs in February, which was weaker than forecast.

The USD/CAD therefore is caught between some opposing forces as weaker inflation and two straight months of weaker retail sales will give the BoC more pause before thinking about hiking rates, while the underlying fundamentals of Canada as well as higher commodity prices including oil, as well as a return to risk appetite boosts the CAD.

The pair has been very volatile of late because of the swings in investor sentiment around the situation in Japan, and we may see the pair stick to its most recent range between 0.9670 and 0.9970.

For a technical analysis look at this pair, see today’s Technical Update: USD/CAD Forms Double Bottom; Target Remains 0.9575 Below 0.9860

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Organization engagement: Five key steps to aligning around the customer
Source: Dave Palm, retailcustomerexperience.com, March 21, 2011

Retail executives today commonly describe their organizations as customer-centric. Most of us have probably even witnessed that big "our customers come first" announcement, where the CEO proclaims a new era of customer-centric strategy. However, as customers, we often experience the opposite, with gaps in product or service needs, hidden fees, misleading or irrelevant offers and poor customer service.

The problem is that great insights do not always turn into great actions. The idea of placing the customer at the center of business decisions has largely remained just that: an idea. While many retailers use customer-centric language, many struggle to make real progress or move customer insights outside of traditional marketing silos so they are leveraged throughout the organization. Looking deeper into the problem, instituting change across an organization is an even greater challenge because it involves people. The decision to create a customer-centric enterprise has to be initiated and owned by the CEO but it is often those employees that are two to three levels below the executive that are the most critical to a transformation.

When dunnhumby began working with Tesco nearly two decades ago, organizational alignment was identified as a critical element for sustained growth beyond the short-term impacts of tactical insights. As Tim Mason, marketing director of Tesco, once said, "All these insights are of no use unless you turn them into action." Embedding the customer into the strategies, processes and foundation of a company helps to drive actions from customer insights that keeps retailers ahead of the competition and enables more effective customer management, which drives loyalty and an increased customer lifetime value.

Many companies are learning to set aside preconceived ideas, intuitions or assumptions about the needs and wants of their customers. Shifting from "what we think we know" to a data-driven understanding is helping to create a more comprehensive view of the customer. However, even where data is defined and available, a systematic, company-wide process of developing and communicating customer insights is usually lacking. Without that systematic approach, insight and data are great, but they won’t lead to the customer-centric business transformation that will achieve sustained growth.

The key elements of customer-centric alignment:

Building a customer-centric strategy

Starting with the vision and mission, retailers need to embed the customer into the overarching strategy of the business. Many visions include key words like "best performing," "greatest" or "largest retailer" and this company-centric messaging leaves little room for the customer. Few talk about "earning the customer’s lifetime loyalty" and even fewer understand what it means. The vision of a customer-centric organization is key because it creates the future state that the organization will be attempting to realize. By clearly articulating the high level goals that guide the business, a data-driven customer strategy will emerge, one that can be communicated and connected to action plans and measures throughout the organization.

Evaluating critical processes

Key insights about the customer should inform not just the strategy but key processes including store operations, channel management, loyalty, customer communications, pricing & promotions, and product assortment. When CVS launched their ExtraCare program, it enabled the company to start making more customer-centric decisions. By examining customer behavior through the lens of customer insights, CVS understood that their most loyal customers were heavy cosmetic users. In response, the retailer launched their "Beauty at the Door" program that helped to reorganize store layouts, product offerings as well as segmented marketing and customized mailing campaigns. Within six to eight months of the loyalty program launch, customers spent 35 percent more in the program’s first year than in previous years. Seven years later, the increase was sustained with over 5 percent increase in same-store sales from 2008 to 2009.

Motivated by the overarching customer strategy, executives need to evaluate and embed customer insights into key processes:

• Do operational strategies clearly link to and support the overall customer strategy?
• Do periodic processes, day-to-day behaviors, and everything in between exhibit a deep concern to understand the customer and address their needs?
• Do actions and processes seek to understand and engage customers with one-to-one relevance?
• How are we measuring our ongoing success? Is it with sales and profitability alone or is it supplemented with customer data?

Building a foundation

An organization is united by common language, values, aspirations and goals that are embedded into the structure of the business, engaging employees at each touchpoint. Building a foundation that supports and furthers the customer-centric strategy is a key element of engaging employees in the transformation.

• What are the customer KPIs (key performance indicators) and are they embedded in an incentive structure?
• Are customer insights accessible and easily understood by all levels of the organization?
• How do we ensure that customer insights are being analyzed and evaluated in a consistent way? How do we sustain ongoing insight as the business, the marketplace and the customers change?
• Does clear accountability exist for a customer data strategy, customer data management and evaluation?
• Are there rewards for employees who use customer insights and penalties for those who do not?
• Are customer insights shared with key suppliers to improve decision making across all merchandising and operational levels?

Gaining a commitment to change

As Charles Darwin famously noted, "It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." Changing from the current to future state is typically uncomfortable for people and each member will experience this transition differently. Moving through the transition is a journey rather than a single event where new rules are established, new processes and structures are built and new ways of working emerge. Gaining alignment requires a clear understanding of the current state and a clear business case supported by successful case studies that will help to gain the buy-in of all stakeholders.

Making it happen

The redesign of each key operational process should be organized into an architecture that details how the process integration will move through the organization and the people that will be responsible for seeing that through. A key piece of that integration is identifying who is responsible for ensuring both internal communication and education. As managers, we understand that people support what they help to create. The education and training of employees around customer data, how to use it and how to apply these insights also requires opportunities for feedback and a clearly defined rewards structure with internal KPIs developed around the customer. Finally, vendors also need a place within the educational program with collaborative category planning, communications and overall strategy alignment around the customer.

Many businesses have great insight, but turning those insights into action and achieving customer-centric results will require the alignment of the entire organization. Many executives underestimate the investment in placing the customer at the heart of the business. Aligning around the customer, while challenging, offers increased customer lifetime value through these key benefits:

• Embeds an organizational capability around the customer to create sustained change beyond the short-term impact of tactical insights.
• Moves customer insights beyond traditional silos such as marketing so they are leveraged throughout the organization.
• Creates more effective collaboration between retailers and suppliers - focusing on the customer and the growth of the category rather than margin.

Creates cultural and behavioral change where the customer drives decision-making.

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Canadian chain hires Dollar General exec as CEO
Source: Forbes, The Associated Press, March 22, 2011

Canadian discount chain The Bargain Shops said Tuesday that it has named an American retail executive to lead an expansion and revamp of the chain.

Beryl Jack Buley helped lead a similar transformation as a division president at the much larger U.S. chain Dollar General.But this one could be more challenging: Target Corp. ( TGT - news - people ) is preparing to take over former Zellers stores across Canada in about two years and hopes to attract some of the same shoppers as The Bargain Shops.

Buley, 49, said he's not worried about competition such as Target and Marshalls arriving from the south. Pointing to the many independent stores in Canada, he said "enormous opportunity" remains there, especially while Target is still renovating 100 to 150 buildings where it plans to open stores.

He likened The Bargain Shops chain, which generates about $350 million in annual revenue in 238 locations, to a series of general stores. What sets it apart from competitors, he said, are its many rural locations and its focus on the lowest end of the price spectrum, markets he considers underserved in Canada. "What was missing was making it a convenient place to shop," Buley said in an interview with The Associated Press.

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Online shoe retailer Zappos.com pulls plug in Canada
Source: Vito Pilieci, Postmedia News March 25, 2011

OTTAWA —Popular online shoe retailer Zappos.com says it is cutting its ties in Canada because of high brokerage fees and confusing cross-border shipping policies.

"We have struggled with general uncertainty and unpredictability of delivering orders to our Canadian customers given customs and other logistics constraints," Zappos chief financial officer Chris Nielsen said in a memo posted on the company's website.

"We have made the difficult decision to shut down the canada.zappos.com site and stop shipping to Canada."

Zappos, which will end Canadian sales April 1, said confusing distribution agreements that limit the brands of shoes Zappos can sell in Canada also contributed to its decision.

The company refused to offer further comment.

Zappos, founded in 1999, quickly became the go-to place for shoe lovers to get bargain basement prices on their favourite brands of footwear. The company hit $1 billion US in annual sales by 2008.

Amazon.com bought Zappos for $928 million US in July 2009.

Bruce Cran, president of the Consumer Association of Canada, said Zappos' retreat thins out competition in the market for shoes and is just the latest example of the difficulties international retailers face in shipping to Canadian consumers.

"I can give you a list of companies that are in the exact same position. There are a lot of American retailers that won't ship here anymore," said Cran. "I've commented on this lots of times over the past few years. Instead of getting better, it's getting worse."

Cran said he has been in talks with several large retailers who are trying to bring down the shopping barriers between Canada and the United States.

At the heart are the massively unpopular brokerage fees that shipping companies charge consumers to clear packages through customs.

Brokerage fees, which have sparked class action lawsuits in the past, are set by the shipping companies and can be as high as 50 per cent of the value of a good. They are not regulated by government.

Cran said Canadians turn up the volume on the brokerage fee issue every time the Canadian dollar rises and makes cross-border shopping more attractive. Some have suggested the federal government should intervene in the interest of increasing competition among Canadian retailers.

"These are the sort of things that a lot of Canadians think the Competition Bureau should be looking at," said Cran. "But they don't. The Competition Bureau has shown no interest at all. I have heard people say, 'I ordered this for $50 and when it showed up it was $200.' This issue needs attention."

Cran said retailers often get blamed for the extra shipping charges, even though they have no control over the fees. The constant complaints from Canadians have pushed many retailers to stop selling to Canadian addresses.

Customer-oriented chat rooms on Internet auction site eBay have thousands of postings from people upset about brokerage fees.

Kevin Wolfley, senior customer service relationship manager for eBay Canada, said the fees and other difficulties shipping to Canada have prompted many American eBay sellers to ban Canadian bids on their items.

"Shipping for Canada as a general rule is a challenge. It is more expensive. Consequently, sellers in the U.S., not just eBay sellers, are finding it increasingly difficult to ship to Canada," said Wolfley.

To encourage more business between Canadian buyers and American sellers, eBay has negotiated flat-rate shipping deals and discounted expedited shipping rates that factor in additional fees.

Canada Post said it has received numerous complaints about brokerage fees and has tried to set up services to smooth the flow of goods between the U.S. and Canada.

The corporation's Borderfree offering, for example, allows large American retailers such as Eddie Bauer and Sephora to sell directly to Canadians in Canadian dollars. Consumers pay only the stated prices and the service takes care of all brokerage fees, taxes and other unexpected charges.

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Sales tax needed
Source: Brian Eggleton, Calgary Herald, March 27, 2011 

Re: "Teachers facing 200 lost positions," March 25.

There is a disconnect between the provincial government and local authorities over funding. The recent announcements of staff layoffs at the Calgary Board of Education may reduce expenditures to meet the provincial funding allocation, but these reductions affect the delivery of student learning in the classroom across the province; therefore, it affects all Albertans.

It also affects the provincial coffers with a loss of income tax revenue. This can't be a win-win.

I believe it is time for a stable source of revenue and stable funding. Unfortunately, no provincial political party has the will to do the right thing -which is to introduce a sales tax. Using Alberta retail sales figures for the period of February 2007 to February 2008, there was $5.19 billion in retail sales; this would generate, at a five per cent sales tax, $250 million in revenue for the province. Every other province in Canada uses sales taxes to generate revenue. This is an untapped source of revenue that would benefit all Albertans.

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Alberta retail sales grow 5.5% from a year ago
Source: Mario Toneguzzi, Calgary Herald March 22, 2011

CALGARY — Retail sales in Alberta in January were up 5.5 per cent from a year ago — the second highest annual growth rate in the country among provinces and just behind Saskatchewan’s 6.0 per cent.

Statistics Canada reported Tuesday that sales in Alberta hit $5.2 billion in January which was down 0.5 per cent from the previous month.

Across Canada, sales were up 3.5 per cent on an annual basis to $37.1 billion but fell by 0.3 per cent from December, the second monthly decline in two months.

The largest decrease among all subsectors was registered by motor vehicle and parts dealers (1.5 per cent). Sales at new car dealers (— 1.7 per cent) declined for a second consecutive month after seven months of increases, added the federal agency.

Sales at furniture and home furnishings stores fell 2.3 per cent in January, erasing the gain in December.

Statistics Canada said clothing and clothing accessories stores registered a 0.8 per cent decrease in January. The subsector with the largest sales increase was food and beverage stores, where sales rose 0.7 per cent.

A 1.2 per cent increase at general merchandise stores, which includes department stores, represents a fourth increase in five months and for a third time in four months, higher sales were reported at building material and garden equipment and supplies dealers (1.0 per cent), added the federal agency.

Sales at sporting goods, hobby, book and music stores rose 0.9 per cent in January after a decline in December.

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Men flock to retail jobs
Source: The Calgary Herald, March 5, 2008

Garry Hapton was surprised to learn Tuesday he's part of the largest male occupational group in Canada -- retail.

As a dispensing optician and the owner and operator of two Brass Monocle locations in Calgary, Hapton is one of hundreds of thousands of Canadian men working in retail sales and as sales clerks. And Hapton is a veteran, having worked in the field since 1972.

Statistics Canada census figures for 2006 show there were 285,800 Canadian men working in retail that year as the occupation surpassed truck driving as the No. 1 male job in the country.

"I never really thought of it as retail -- but, of course, it is," Hapton said Tuesday from his location on 16th Avenue S.W. He describes the retail sector as a tough one, with long hours, a competitive landscape and, like so many in Calgary, a shortage of workers.

"From my perspective, it's very, very difficult to hire and our industry is dominated by women," said Hapton.

"We're having a very difficult time attracting what we consider to be the correct people. They're either not experienced or, for lack of a better phrase, they're not our style."

Still, the retail sector appears to be an increasingly popular destination for job-seekers.

StatsCan said the increase in the number of male retail salespeople was almost 29 per cent between 2006 and 2001, when the previous census was conducted. Retail sales was also the most common occupation for women, but by a far greater number, with about 400,000 women employed in the sector, an increase from 2001 when it was 331,400.

Overall, the retail sector saw the largest growth in absolute number of jobs between the 2006 census and the previous one, in 2001. It gained 132,000 salespeople and clerks, and another group, cashiers, added a further 43,300 jobs. Statistics Canada said the growth in those jobs is a reflection of expanding consumer spending in retail stores.

Census data released Tuesday also show the country has the fastest-growing employment rate of any G-7 nation. The country posted the strongest employment growth of the seven major industrial economies between 2001 and 2006, increasing at an average annual rate of 1.7 per cent, well above the pace of second-place Italy at 1.2 per cent.

The strong employment growth has continued since 2006, Statistics Canada adds, a fact reflected in a jobless rate that now stands at a modern-day low of 5.8 per cent.

However, Canada's is a greying workforce. The median age -- where half are older and half younger -- tipped past 40 for the first time on this census and now sits at 41.2 years, up from 39.5 in 2001.

In 2006, 15.3 per cent of the workforce was aged 55 and older, up from 11.7 per cent five years earlier. StatsCan attributes this to the aging of the baby boomers and to older workers increasingly staying in the labour force.

Although the employment rate is up, the figures reveal that some industries are thriving while others struggle: manufacturing jobs are disappearing while those in the oil and gas, construction and retail sectors are on the rise.

Manufacturing is still the largest employer in Canada, but with jobs falling victim to the strong dollar and work shifting offshore, Canadians are now almost as likely to work in a store as on a factory floor.

Paul McElhone, associate director of the School of Retailing and the Canadian Institute of Retailing and Services at the University of Alberta in Edmonton, said the retail sector can be attractive to many people because it can offer more than just a job.

"It's not just a question of where the jobs are, it's a question of where the career opportunities are," said McElhone. "Particularly in Western Canada, there has been huge growth in the retail sector in terms of store development and company expansion . . . and the reality is that there are some phenomenal career paths in the retailing sector."

For larger retailers, managers overseeing major operations can make substantial salaries, said McElhone.

"Lots of store managers for major players in this country are making between $100,000 and $200,000 a year. Those are fantastic jobs."

In Calgary, the retail sector has been growing rapidly, said Elsbeth Mehrer, manager of workforce development for Calgary Economic Development. But as is the case nationally, the sector is dominated by women.

There are about 147,800 Calgarians working in sales and service occupations -- the No. 1 occupation in Calgary -- and of that about 83,000 are women and 64,000 men.

Of the roughly 29,290 Calgarians working specifically in retailing, 16,415 are women, while 12,875 are men.

gscotton@theherald.canwest.com

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Highlights from the Statistics Canada 2006 census reveal Calgary basks in prosperity

- Alberta led the way in employment growth between 2001 and 2006, with a 2.9 per cent annual increase.

- Alberta had the highest inflow of post-secondary graduates, with 88,600 degree-carrying adults moving to the province and 60,600 leaving.

- The oil and gas extraction sector saw the fastest growth of employment in the country, with an annual gain of 7.5 per cent over the 2001 to 2006 period.

- Retail salespersons saw the largest absolute increase in their numbers, growing by 132,300 to 685,000 over the census period.

- Calgary had the country's third-fastest employment growth, at 22.3 per cent over the five-year census period.

- Calgary had the lowest unemployment rate of all census metropolitan areas over the census period at four per cent.

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'Uglies' need not apply. Choosing employees based on looks seems inherent to the service industry

Source: KRISTY BROWNLEE, Edmonton Sun, March 21, 2011

Trendy restaurants across the country are known for more than their tapas. Their employees, gorgeous, long-legged waitresses who strut over to tables like they're on the catwalk, are not there by accident.

Just like each menu item is intricately plated, staff members are screened for their busts and rear-ends, says a former restaurant manager.

Darren Hawker, 40, a former assistant general manager at Yorkdale Moxie's Classic Grill in Toronto, said he was directed by upper management to hire busty and thin applicants, regardless of whether or not they were qualified.

"If I wanted to hire someone the immediate question was about their look, if they had a nice ass or a decent rack," said Hawker, a 24-year restaurant industry veteran. "They had to have a good figure because that's what attracted the men in to come drink."

But what if by the luck of the gene pool you're not blessed with a perky chest and firm behind?

Stacey Ball, a Toronto-based employment lawyer, said a case could made for job-seekers who are refused employment for being ugly.

"A case could definitely be made under the human rights code. It's a live issue," Ball said.

According to human rights law in Ontario, similar to elsewhere in Canada, employers cannot discriminate when hiring based on age, religion, ethnic background, sexual orientation or physical disability.

"Let's say you're simply ugly due to your luck of the gene pool, is that a medical condition? That could be argued. That's your genetic composition," Ball said.

To be sure no 'uglies' even got an interview, Hawker said he and other front of house staff were directed to screen applicants coming through the door at Moxie's, and mark resumes with a "110" (one-ten) if they were unattractive. It's an internal code for "do not call," he said. (Put a diagonal line between the pair of ones and it forms 'NO'). Similar practices are allegedly in place at other restaurants across the country.

While on staff at Earls Kitchen and Bar in Edmonton - renowned for its bevy of beauties serving customers - Hawker said the hiring motto was "If you'd f--- them, hire them."

Spokespeople for both Moxie's and Earls denied hiring for looks.

"It is possible that people who have come from other companies have used (the 1-10 rating code), but it is not something we endorse or teach," said Sue Thomson, vice president of marketing at Moxie's.

Ann Topp, a managing partner who helps hire staff for Earls in Toronto, said the company seeks applicants with a good first impression and experience.

In the retail world, clothing chain American Apparel requires job applicants to submit head-to-toe photos of themselves along with their resumes. Stephanie, a former manager at American Apparel in Toronto, said only petite, good looking people are hired, regardless of experience.

"Everyone is thin and attractive," said the five-foot-five, 110 pound woman, who did not want her last name published.

The former staffer said she feels badly that the company only hires the beautiful, even if an average person had more experience.

"It's awful. Just because someone is pretty doesn't mean they know how to sell anything. Hiring people by looks may attract someone into the store, but it doesn't mean they will get anything," said Stephanie.

American Apparel would not comment, but a post on the fast-fashion retailer's website says that the body shots are to reflect "personal taste and fashion sensibility," and adds, "Please remember we are open-minded and are looking for individuals who are of all shapes and sizes."

Less-than-average looking people avoid even applying for jobs at certain places to avoid disappointment, says an applicant.

While waiting for a job interview at The Keg Steakhouse and Bar in Mississauga, Ont., a nicely-dressed slightly overweight woman with serving experience and her resume in hand said, "Earls only hires models. I wouldn't even think to apply there."

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BRITISH COLUMBIA NEWS

Vancouver businesswoman fed up with merchant credit card fee
Source: Jennifer Saltman, The Province March 29, 2011

Fed up with the unpredictable high fees merchants are charged for credit-card transactions, a Vancouver businesswoman has filed a potential class-action lawsuit targeting Visa, MasterCard and major banks.

Vancouver law firms Branch MacMaster LLP and Camp Fiorante Matthews filed a notice of civil claim in B.C. Supreme Court Monday on behalf of Mary Watson, owner of Metropolitan Home.

The claim alleges that the credit card companies and banks have engaged in a multi-billion dollar price-fixing conspiracy to increase or maintain the fees paid by merchants on every credit-card transaction.

When a customer pays with a credit card, Visa and MasterCard take a percentage fee, along with the card-issuing bank and the company that processes the payment. Basic cards charge merchants a smaller percentage, while premium cards that offer rewards have a higher fee.

The suit states that in 2009 Canadian merchants paid approximately $5 billion in fees.

The claim alleges that Visa and MasterCard rules force merchants to accept every Visa or MasterCard, even if the cards carry high fees for the merchant. The claim also alleges that these rules prevent merchants from charging more for payments with premium cards.

“All I care about is that all eyes are on them and that there has to be some accountability. People need to be given the proper information,” Watson said in an interview Tuesday. “[Customers] would be appalled if they knew the difference between using one card and another.”

Watson also said she’s frustrated that she can no longer accurately estimate how much her fees will be at the end of each month.

Mark Startup, president and CEO of retail entrepreneur association Shelfspace, said that when higher premium card fees introduced it was very confusing to merchants.

“The costs for retailers to be able to accept credit cards has definitely increased,” he said. “To add insult to injury, the retailer couldn’t decipher from the statements they were getting which cards were attracting these new higher rates.”

Greg McMullen, an associate with Branch MacMaster, said the firm became interested in the issue when the Competition Bureau began investigating whether Visa and MasterCard, by hiking the fees, violated a provision of the Competition Act.

In December, the federal competition watchdog filed an action with many of the same claims contained in the proposed class action, focusing on fees imposed on merchants for every credit-card purchase.

The Competition Tribunal has been asked to issue a prohibition order against the credit card companies that would strike down “restrictive and anti-competitive rules that Visa and MasterCard impose on merchants who accept their credit cards.”

McMullen said the credit-card companies and banks have created a system that traps merchants.

“We’re quite excited by the response,” McMullen said. “When something like that happens you know you have the finger on the pulse of something that’s really bothering a lot of people.”

The next step for the case is a certification hearing. Once a class action is certified, merchants from across Canada can join as plaintiffs.

Other than Visa and MasterCard, the lawsuit names BMO Financial Group, Scotiabank, CIBC, National Bank of Canada, Federation des caisses Desjardins du Quebec, Royal Bank, Toronto Dominian Bank, Citigroup Inc., Capital One Financial Corp. and Bank of America Corp.

The claims made in the notice of a civil claim have not been proven in court.

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Raising minimum wage a change past due
Source: The Citizen, March 18, 2011

Bravo to British Columbia's new premier, Christy Clark, for finally doing something about the shamefully low minimum wage.

We're also totally on board getting rid of the "training wage" which was even lower. What has happened with this wage in place is that some operations have hired a (usually) young worker and given them shifts until their "training" time is over, then they find some reason to let them go. Shortly thereafter, the operation then looks for a new worker to "train."

The regular workers who are earning the $8 per hour minimum wage have been struggling terribly for years, and we don't mean to afford vacations and electronic toys. We mean to afford food (the price of which, we are told, is set to rise significantly in the near future), rent, and utilities. Food banks have been telling us for some time that they have been seeing a steady increase in the number of working poor coming through their doors.

The food budget is often the only flexible one someone on low income has, so they are forced to cut back, relying on the kindness of the community to make up the difference.

Clark proposes to raise the minimum wage by $2.25 an hour to $10.25 by May 2012.

While we still don't think this really recognizes the realities of how much it costs to pay the rent every month, it is a significant improvement and a big step in the right direction.

Like other organizations, we are a bit disappointed that there will also be a lower "tipping" wage of only $9 per hour for servers in restaurants, pubs and bars who primarily serve alcohol.

We think that tips are far too spotty a thing, no matter how good a server is at their job, to rely on as a major source of income. This is particularly true since the introduction of the HST, as many servers have seen customers claw back the tax out of what they leave behind for the waitstaff.

Some business organizations are complaining about this move, saying it will hurt the little guys, especially. But hey, if people can actually afford to buy things, that can only be good for the retail sector, right?

The fact is, British Columbia's minimum wage is the lowest anywhere in the country, while our cost of living is nowhere near.

This discrepancy needed to be addressed.

It is not fair and it is not right to leave people unable to afford the basic necessities of life, even if they are working as hard as they can to make ends meet.

There are also the children to consider. Many minimum wage earners have them, and the many children that live in poverty in this province has been a disgrace for years. They sure deserve a raise.

This is a change that was past due. 

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Lululemon’s problem? Customers can’t get enough
Source: MARINA STRAUSS, the Globe and Mail, March 28, 2011

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Another B.C. recall bid fails
Source: The Canadian Press, CBC News, March 23, 2011

A recall organizer says it's not likely any new campaigns will be launched in B.C., following the failure of yet another recall bid in B.C. over the harmonized sales tax.

The latest campaign to miss its target was in the Comox riding held by Agriculture Minister Don McRae, where canvassers got only about one quarter of the signatures needed to force a byelection.

Premier Christy Clark's promise to hold a referendum on the HST in June instead of September seems to have eased voters' anger over the tax, said Fight HST organizer Chris Delaney.

"Everyone's talking about the June 24 referendum and being able to have their say there, so I think that seems to be, for most people, a way to satisfy their frustration," Delaney said in an interview Wednesday.

"The others have told us, 'We're going to wait to see what happens with the referendum,"' he added, referring to recall organizers in other ridings.

Following their successful campaign last year that led to the referendum, the Fight HST group announced plans to use unique provincial recall legislation to force byelections in several Liberal-held ridings.

Not come close

But the recall campaigns, which require the signatures of 40 per cent of registered voters in the most recent election, have so far failed to even come close.

The first, targeting cabinet minister Ida Chong's Victoria-area riding, fell 6,500 signatures short. Another, in the Cariboo region, was cancelled by local organizers before it even began.

And on Wednesday, Elections BC announced the Comox effort collected 5,181 of the 19,348 signatures required to force a byelection.

The deadline for signatures in the Kamloops-area riding of Environment Minister Terry Lake is next week, and Delaney admits it probably won't succeed. He's more optimistic about another in Maple Ridge, where recall canvassers need more than 14,000 signatures by May 9.

Delaney rejected the suggestion that his group overestimated voter anger, pointing out that a lot has changed in B.C. politics since he and former premier Bill Vander Zalm first began fuelling anti-tax sentiment in the province. Gordon Campbell stepped down as premier in the face of near-constant criticism over the HST, and Clark, his successor, promised to move up the referendum.

Delaney gives his group at least partial credit for the political upheaval.

"The recalls were always done as a measure to push the government and force the government to deal with the issue, so in a certain sense, they've been effective," he said.

Referendum date questions

Since becoming premier last week, Clark has repeated her promise to move up the referendum date, but she's said little else about when she plans to formally make the change.

She could not be reached for comment Wednesday.

Elections BC confirmed the government has yet to contact the agency about moving the referendum date, but spokesman Don Main said election staff were already taking steps to be ready when the call comes.

"We have not spoken with government about changing the date," said Main.

"Because the initiative vote date for Sept. 24 is set in legislation, we've been preparing for that, and then we've heard the media reports that they would like to move it to June 24, so we've been doing whatever we can to ensure that we're ready for that, as well."

The Opposition New Democrats have raised concerns that Clark isn't yet taking steps to move up the referendum.

NDP finance critic Bruce Ralston said a June vote would require a vote in the legislature, and he raised concerns that the premier hasn't yet bought the issue up with Elections BC.

"If she hasn't made any formal contact with Elections BC, either she's misleading the public or she's undecided about what she's said to the public," said Ralston.

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RETAIL TRENDS

New Barcodes Allow Shopping from Smartphones at Home Depot
Source: Leslie Meredith, TechNewsDaily, March 22, 2011

The Home Depot announced today it will roll out its first mobile barcode program in a national print campaign featuring Martha Steward Living kitchens. By taking a picture of a 2-D barcode known as a QR code, shoppers can instantly watch product videos, read product reviews and purchase items directly from their smartphones.

The do-it-yourself retail giant plans to use the QR codes both outside their stores in print and online as well as on shelves within stores.

"We know our customers are already using their mobile device to assist in the purchasing process, and now Home Depot is embracing this technology to more closely connect our stores and customers to our digital content," Tom Sweeney, senior director of online strategy for Homedepot.com, said in a statement. The company will also use the codes to offer promotions and discounts on featured Home Depot products along with a one-button option to buy.

The QR code technology is provided by ScanBuy, a pioneer in the barcode field. Home Depot’s codes can be scanned using the ScanLife app and customers without a scanning app can download the ScanLife app at Homedepot.com/scan or they can text HDscan to 43588.

There are roughly 25 million people in the United States who already have barcode scanning technology from their mobile device and the number is growing rapidly, according to ScanBuy. All it takes is a phone with a camera and an Internet connection, but people with big-display, video-ready devices like the iPhone, HTC Evo 4 and Thunderbolt will get the bigger benefit from Home Depot.

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Millennials Slower To Take Advantage Of Retail Loyalty Programs
Source: Richard H. Levey, chiefmarketer.com, March 21, 2011

Millennials—consumers born roughly between 1982 and 2000, depending on which definition is used—are signing up for fewer loyalty schemes, and are more likely to be dissatisfied with them, according to .

Granted, these consumers have fewer opportunities to join such programs. They youngest of them aren’t of age. And even the more mature have likely not reached their full earning potential, meaning they’re not shopping in as wide a selection of retailers, and therefore not exposed to as many programs.

Even so, half of them belong to either only one or no loyalty programs. This may be a function of the types of stores they frequent, says Rob Seward, senior industry marketing manager at ACI Worldwide. “Less affluent consumers are more often discount shoppers, and I haven’t seen too many [of those types of retailers] offer loyalty programs.”

Another problem may be that program structures aren’t clear to Millennials. If this is the case, young ‘uns aren’t alone in their confusion: Nearly one in four respondents to ACI’s survey overall strongly agreed with the statement “I do not completely understand the rewards structure—for example, what benefits I get and when I get them.”

Millennials indexed slightly, but not significantly, higher on this attribute. But Seward suggests overcoming this may be a matter of media choice.

Looking for Their Own Bargains

“They want to hunt out their own deals,” says Seward. “Millennials are using social media as their research method, and retailers should look at that as a distribution method.”

This scenario also plays into the Millennials’ instinct to draw information from family and peer groups, as opposed to formal organizations. Of course, it doesn’t seem like consumers are getting a lot of advice from their loyalty programs anyway. Overall, 40% indicated the only time they heard from a retail loyalty program host was at signup.

But Millennials do have gripes when it comes to the nature of communications they do receive. Slightly more of them than the population as a whole have received rewards or promotions through their programs for items they would never buy. Significantly more feel they’ve received rewards which were too small to take seriously. And even fewer received rewards that made them feel valued as customers.

Seward feels this may be a case of Millennial neglect as marketers focus on a slightly older group of consumers. “The research that I have read indicates that the Boomers spend the most of any age group, so I surmise that retailers are targeting Gen X to begin building these consumers into loyal shoppers as they approach the Boomers’ age,” he says.

There’s an obvious way to make retail loyalty programs appeal to Millennials, who constitute the most electronically connected generation in history: encourage their use online. Millennials are least likely to engage loyalty programs online or via mobile devices than any other cohort. Forty-five percent say they rarely or never do, compared with 39% of Gen Xers, and 58% of Boomers.

Take It to the Web

The learnings here may be relevant across all generations. “Retailers have not exposed their online shopping customers to their rewards programs,” says Seward. “If you think about online shopping abandonment rates being a big challenge, wouldn’t this be a perfect opportunity to retain a customer?”

Seward sees the half of the total respondent base that rarely or never uses a loyalty program when shopping electronically as representing a failing among the marketers. “That 50% break is between those doing this well versus those not doing it well.”

Nearly as many consumers—47%—don’t go first to the Web sites of retailers in whose loyalty programs they participate. Again, Seward sees this as a failing – or, to put a positive spin on it, a finding with a great upside.

“Conversion of online shoppers to buyers has historically been a challenge,” he says. “Products sold online have higher margin opportunities. I look at these two findings as going hand in hand. Retailers are missing out on an opportunity to communicate [using their loyalty programs in online channels].”

It’s not as if consumers wouldn’t respond well to better integration. Asked whether they would be more likely to shop at retailers’ Web sites if they had easy access to their loyalty programs, 79% of consumers said they would—and 88% of Millennials indicate this would be the case.

There’s a final distinction in the way Millennials view retail loyalty programs, compared with older age brackets: While the more mature consumers place a higher value on obtaining discounts, Millennials are more likely to respond well to a “premium looking” card, or access to VIP checkout lines.

“By being more technically savvy, there is a perception [among Millennials] that things should be faster than they are,” says Seward. “This is something marketers could look at as an opportunity.”

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The Perks Of Starting Your Career In Retail
Source:  Rebecca Cave in At Work, Focus on Retail, Industry Spotlights, Video on March 22, 2010

June Doyle-MacLean, the Manager of National Field Recruiting at Reitmans (Canada) Ltd., has worked in retail across Canada for her entire career.

Lauren interviewed her in February 2010 at Ryerson University’s Ted Rogers School of Retail Management internship and career fair.

June says working in the retail industry, particularly the fashion side of retail, is amazing because:

• If you are willing to work hard and move ahead, you can work in every single province across the country
• You’re on the leading edge of what’s fashionable all the time because you’re working for trend setting brands
• Retail gives you the opportunity to build great leadership skills, move up quickly and make a good impression early on in your career

She also recommends students and recent grads who apply for meaningful roles in the retail industry have some retail background, even if it’s just experience from that part-time job you held during school.

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