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Editorial: Why are prices higher here than in the U.S.?
Source: Vancouver Sun, April 21, 2011
With the Canadian dollar well above parity against its U.S. counterpart, Canadians are in high dudgeon over the disparity in prices between the two countries. The Consumers' Association of Canada estimates that Canadians pay 30-per-cent more than Americans on all manner of goods, from running shoes to DVD players. Why? Greed on the part of Canadian retailers, says association president Bruce Cran. "They refuse to pass on the savings."
It's an easy answer in the black and white world of us against them. But the reasons are more complicated than that.
Businesses operate in order to make a profit; there must be a return on investment. Using the S&P/TSX composite index as a benchmark, the historical average profit margin in Canada is 12 per cent. In 2010, the margin rose to 14 per cent, still shy of the pre-recession 16 per cent. Lowering prices likely would reduce the margin, which would be reflected in weaker share prices, which would lower the value of the portfolios held by financial institutions that manage our pension funds. Talk about biting the hand that feeds us.
Furthermore, profit margins in some sectors are dramatically lower than average. In the Canadian grocery industry, for example, margins are in the two-per-cent range. On the face of it, there is reasonable doubt that the charge of gouging can be substantiated.
Few of the criticisms of Canadian retailers account for economies of scale. It is simply more efficient to distribute to 310 million Americans than to 34 million Canadians. To use a micro-economic example, much of Walmart's success rests on supplychain management -specifically, control of distribution costs. By ensuring only full truckloads leave its distribution centres, it saves hundreds of millions of dollars on transportation costs, which translates into lower prices at the retail level.
Canadian shipping costs tend to be higher by virtue of this country's vast geography and sparse population. There's not much retailers can do about that.
Foreign suppliers reward the efficiencies of the U.S. market by setting lower manufacturers' prices in the U.S. than in Canada. The price of a bike made in South Korea is higher in Canada than in the U.S. before it leaves port.
Speaking of bikes, Canada imposes a tariff of 13 per cent on all imported bikes in order to protect a couple of Quebec-based manufacturers.
Despite free trade, the prices of thousands of products are inflated by tariffs. Indeed, Canada Border Services' volume of customs tariffs runs to 2,000 pages. Let's not forget protective tariffs on poultry, dairy and eggs that can top 300 per cent. Canada's requirements for bilingual and metric labelling add to suppliers' costs, which are passed down to retailers, and customers.
The U.S. is the most competitive market in the world. Retailers will do almost anything to grab market share. But Canada's Competition Act prohibits what it calls predatory pricing; that is, selling goods below what bureaucrats deem to be an unreasonably low price for the purpose of driving a competitor out of business. Any retailer who dares to price goods too low in Canada risks civil and criminal prosecution.
Then, there are taxes. The harmonized sales tax in B.C. is 12 per cent; in Washington state, the sales tax is 8.5 per cent. Canadian employers also pay Canada Pension Plan, Workers' Compensation and Employment Insurance -which can add up to more than $3,600 per employee -as well as income and property tax, all of which will be reflected in the price of goods.
Governments could level the playing field by reducing payroll taxes, eliminating tariffs and duties, abandoning domestic anti-competitive policies and removing restrictions on Canadians bringing home goods purchased in the U.S. Under those circumstances, Canadians might see some benefits from a dollar at par. Until then, however, Canadians will continue to pay more than Americans for the same products regardless of what happens to the exchange rate.
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Opinion: Do tariffs save jobs in plants, or cost them in stores?
Source: Don Cayo, Vancouver Sun, April 28, 2011
The rationale for a government to impose tariffs - and Canada has nearly 4,000 of them on its books - is to save domestic jobs.
Often we're talking about a mere handful of jobs making a narrow range of bicycles or boots or some other product in a half dozen uncompetitive little plants. We tack a special tax, often a big one, on any remotely similar product made anywhere else. Never mind that many buyers don't have any option to buy Canadian because there's not enough -or not the right type -of product to meet their needs.
many buyers don't have any option to buy Canadian because there's not enough -or not the right type -of product to meet their needs.
So, yes, these tariffs may "save jobs" for a few limping dinosaurs. But this comes at huge cost to consumers. If you also consider what economists call opportunity cost -the fact the investment money and manpower in these weak industries could be doing something truly productive if they weren't lured into complacency by what is effectively a giant subsidy -the cost soars higher still.
Lately I've been wondering, what about the jobs these tariffs cost the Canadian economy? I've found no studies or data that track this, but the re-kindling of cross-border shopping fervour in Canadian consumers simply must be costing a lot of retail jobs. The driving force behind cross-border shopping is the relatively high cost of goods sold in Canada. And the weight of tariffs -regardless of whether they have any benefits, or any alleged or potential benefits, that are commensurate with their costs -adds nearly $4 billion a year to Canadian consumer purchases.
Take this artificial cost away and it wouldn't end cross-border shopping, but it would help.
There are nearly twice as many jobs in the retail industry -not just clerks in stores, but also transportation and warehouse workers -than in manufacturing. Only a small percentage of Canada's manufacturers have or need the protection of the $4 billion Ottawa imposes in tariffs. Most make it on their own.
This also means not all retailers are equally vulnerable. Some sell products with few, or small or no tariffs attached; some are hit hard. Bikes, for example at 13 per cent, or boots and shoes, which are hit with a percentage that may be in the high teens.
If Canadians buy in the United States and bring goods home legally, they may be required to pay the same duty as if they'd bought at home. But they may not; personal exemptions get many goods across the border duty free, and we've all heard stories about people who were "waved through" busy border crossings even though they admitted they had purchases in excess of their limit.
There are some who lie and get away with it.
But tariffs create a problem even for retailers whose goods aren't hit particularly hard, and even with customers who don't try to pull a fast one at the border. They widen the gap -often a large one -for other reasons such as taxes, population density, regulations and more -between U.S. and Canadian prices, and this is enough to have customers looking seriously at cross-border alternatives. Once you look at these alternatives -and I speak from experience -you may decide they're worth taking. Then, if you're going to the States anyway, or ordering one product on line, you might as well stock up on other stuff.
The issue is too complex for me to say with certainty I think every tariff should be dropped. But Ottawa certainly should be looking at all of them through the lens of cost-effectiveness and ditching the many that accomplish no good, or very little good, at great cost.
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TOLETTA launches the world’s first couture paper dress made from toilet seat covers.
Source: Caine Ruckstuhl, Toletta, March 23, 2011
MARCH 23, 2011 - EDMONTON, ALBERTA. Who says the fashion industry is in the pooper? Today, fashion designer Laura Dreger showcased her talents by making the world’s first couture paper dress from disposable toilet seat covers. Tissues courtesy of TOLETTA - Ottawa manufacturer of luxury paper toilet seat covers. TOLETTA was recently featured on The Doctors TV Show and in Marie Claire Magazine.
“The dress took me over 100 hours to make and required more than 520 seat covers. When the idea was presented to me I said yes because I knew it would be fun and unique. Besides, it's not every day that I get to be the first in the world to make a paper dress from disposable toilet seat covers.” Said Dreger.
Lindsay Goff, the campaign’s model, is a up and coming fashion model who is competing for Miss Canada 2011 and the face of Lady Venom Cosmetics. Gina Cicero, makeup artist and owner of Lady Venom Cosmetics, handled the art direction, make-up and styling. Amanda Diaz was the photographer, Brad Palomo handled the video production and Kristen Ernst did the hair.
"There's nothing sexy about public toilets. But when you mix high fashion with a product like this amazing things can happen. As a professional make up artist, I often work on a set and the only toilet around is usually a nasty public toilet. I carry tolettas in my Louis Vuitton Artsy bag because you never know what’s on that toilet seat. These cute little travel packs are a “must-have” purse accessory.” Said Cicero.
TOLETTA is a niche product that markets to women ages 20-45 who care about their personal hygiene in public bathrooms. A percentage of the proceeds go to Breast Cancer Research (pink packs) and Child Poverty Awareness (blue packs). Tissues are made from large sheets of 3ply toilet paper which are 20% larger and 42% thicker than other brands plus they’re flushable and biodegradable. Each pack contains 5 toilet seat covers and retails for $2.49 - $3.49 USD.
”Since our company's launch in 2009, we have already sold more than 40,000 packs and have distribution throughout North America, Europe and Africa. We can now focus on selling into large retail chain stores thanks to our new exclusive distributor for North America - Perma Brands.” Said Caine Ruckstuhl, co-owner TOLETTA.
TOLETTA is available at toletta.com and can also be purchased from a growing number of retailers across Canada and USA including Amazon.com, Ricky’s NYC and AVEYOU Beauty Boutique. You can also find tolettas in select retailers throughout United Kingdom, Ireland, Portugal, Spain, Greece, Nigeria, South Africa and Australia.
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Big box stores battling for retail space
Source: Elizabeth Thompson, Ipolitics.ca, February 21, 2011
An influx of American retailers into Canada will tighten competition for already scarce retail development space in the GTA.
And while there may not be much room left to build out, companies will be building up and into new formats, say retail experts.
“Because there are all these new retailers coming in, there will be demand for new space,” says Maureen Atkinson, a retail analyst with J.C. Williams Group. “Old industrial lands like the land at Laird (Dr.) or the St. Clair stockyards are getting grabbed.”
Residents of Toronto’s Leaside neighbourhood have already witnessed the battle for big box retail development space.
A few years ago, SmartCentres commercial developers won the right to rezone a package of land in the former Leaside industrial park. The company built a big box power centre, anchored by Home Depot, at Laird Dr. and Wicksteed Ave. Residents of the surrounding quiet neighbourhood protested the development.
“These developments are taking advantage of the very large industrial areas by demolishing and wiping out the old industries,” says Brian Athey, president of the Leaside Property Owners’ Association. “It’s really hurting our main street merchants.”
Athey is concerned about increasing traffic to his area and the loss of well-paying industrial jobs.
“The trade area to support these growing retail areas is enormous,” he adds, explaining customers come from all over an area loosely defined by Hwy 401, Danforth Ave. Bathurst St. and Scarborough to the east to shop at the power centre and the box stores at Laird Dr. and Eglinton Ave.
“For the population in our neighbourhood, we are way overstored,” he adds.
Just a few blocks away from the SmartCentres development, some main street retailers on Bayview Ave. say the big box format has had an impact on their sales and customer foot traffic.
“It has an impact on the number of people who walk on the street,” says Susan Follett, owner of The Country Store.
But Laurie Oehy, who has owned cookware store The Academy of Culinary Arts since 1988, says big box stores do not directly affect independent retailers.
“I think there probably is room for both. I shop in both,” she says.
Retail currently takes up 223 million square feet of space in Toronto, according to John Crombie, national retail director with Cushman & Wakefield Ltd. That’s only going to increase with more American chains slated to enter the marketplace.
Marshalls, the discount clothing store that opened three Canadian stores in March, including one in Leaside, is the first in an influx of U.S. retailers to Canada this year. Other companies that have disclosed plans to open stores here include J. Crew, Kohl’s department store and discount department store chain Target. They will be joining some high-profile recent entrants, including Victoria’s Secret, Brooks Brothers and Crate & Barrel.
“Would I be happier if they weren’t all coming up here? Probably, but it’s kind of a force that can’t be stopped and there certainly seems to be a demand for the American chains,” Oehy says.
Target has said it will open 100 to 150 Canadian stores by 2014 by taking over many of Zellers’ leaseholds. The deal will put $1.825 billion into the coffers of Zellers’ parent, Hudson’s Bay Co., while likely accelerating the arrival of other U.S. retailers clamouring to get into Canada.
And with productivity levels about one-third higher in Canadian malls than their American counterparts, Target’s strategy isn’t surprising, says Crombie. Stores make on average $570 per square foot in a Canadian mall, he says. That stacks up against just $390 per square foot in the U.S.
“That’s why the Americans are all here,” he says. “It seems like almost a no-brainer to come up to this market.”
Atkinson says Canadians are “understored.” In Canada, according to Cushman & Wakefield, there are about 14.6 square feet of shopping centre space per capita. That jumps to 23.8 square feet of space for every American.
But with mall vacancies at less than 3 per cent across the country, says Crombie, space is limited for new arrivals.
“Most of the centres you see around are fairly built out,” says Mauro Pambianchi, chief development officer for SmartCentres. “(But) the value of land is so high that trying to justify with single-level retail is difficult.”
Pambianchi says there is available land in the GTA, but most is contained within protected employment lands — applying for retail rezoning is time consuming and doesn’t always yield results. He says more retailers and developers will be looking to multi-level stores with underground parking to make more efficient use of space that is already zoned for retail.
“You’re seeing retailers becoming a little bit more flexible in terms of what works for them,” he says.
That’s especially true for companies moving into prime downtown locations, adds Crombie.
“All those retailers now want to go downtown,” he says. “These American retailers are dying for space.”
Marshalls is one example of a larger retailer switching up its standard format to work in the downtown core. Marshalls will be opening up in the space that used to house the former Circa nightclub. And the former Big Bop on Queen St. W. is turning into a Crate & Barrel.
The lucrative downtown condo market has pushed up overhead in areas formerly home almost exclusively to nightclubs. With bars and discos moving out, stores and restaurants are moving in, he says.
Even Wal-Mart has a new downtown-friendly look, says Crombie. The store has turned out a smaller footprint format that will be constructed on stilts with parking underneath. One such revamped store is slated to open in Scarborough.
And construction continues in Leaside. The next phase of development will occur just south of the SmartCentres project.
“I don’t think it’s out of place there,” Follett says of box store retail. “I think it’s going to be much bigger.”
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► ALBERTA NEWS
Calgary retail boom spurs construction
Source: Mario Toneguzzi, Calgary Herald, April 25, 2011
CALGARY — Increasing confidence in the local economy and consumer demand is fuelling a retail construction boom in Calgary.
Michael Kehoe, an Alberta-based retail specialist with Fairfield Commercial Real Estate Inc., said there is over 2.25 million square feet of new retail space under construction or in the final planning stages over 13 sites across the city.
“Calgary is widely considered to be the economic bright spot in the retail real estate industry across North America,” said Kehoe. “The retailing momentum is being fuelled by such factors as continued immigration and moderate population growth, a competitive leasing environment, solid retail sales and consumer confidence levels.
“National and international retailers seeking expansion opportunities are attracted to the Calgary market and demand for retail space remains high.”
Also, a recent report by Colliers International said Calgary had one of the lowest retail vacancy rates in North America at 1.48 per cent.
The report said Calgary’s retail market is expected to remain very strong over the foreseeable future with vacancy rates expected to remain in the 1.25 per cent to 1.50 per cent range.
“The retail development community is actively pursuing new projects in all quadrants of the city,” said Colliers. “The demand for retail space has been spurred on by the latest wave of U.S. retailers looking to expand into the proven Canadian and Canadian retailers looking to maintain market dominance in an ever-competitive market.”
Colliers said demand for new retail space in Calgary continues at a “feverish pace” with there are 24 projects comprising 8.3 million square feet in either the planning, permitting or construction stage.
“Hot spots of activity over the next 12 months will include Sage Hill Crossing and Beacon Heights in the northwest, Stonegate in the northeast, Seton and Easthills in the southeast and Silverado and Currie Barracks redevelopment in the southwest,” said Colliers.
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Calgary retail vacancy one of lowest in North America
Source: Mario Toneguzzi, Calgary Herald, April 13, 2011
CALGARY — Finding retail space in Calgary these days remains a difficult enterprise as the city has one of the lowest vacancy rates in North America.
Malika Rajani, who co-owns the Passione women’s store with Natasha Jiwani, said “it was pretty difficult actually” as the retailer moved out of the CrossIron Mills shopping centre to a new location.
The two looked downtown and did their research.
Rajani said there was a lack of appropriate space for a retail clothing store. But they eventually found something along the busy 17th Avenue S.W. stretch on the outskirts of the downtown.
The new Passione store will open this weekend at 524 17th Ave. S.W.
A retail real estate report by Colliers International in Calgary said the first quarter of this year “has only accelerated the momentum in the retail market witnessed throughout 2010.”
The retail vacancy at the end of 2009 was 1.71 per cent and decreased to 1.43 per cent at the end of 2010. It moved up slightly to 1.48 per cent in the spring.
“Calgary’s retail vacancy rate continues to be one of the lowest not only in Canada but in North America including keynote markets such as New York City,” said Colliers. “The Calgary retail market is expected to remain very strong over the foreseeable future with vacancy rates expected to remain in the 1.25 per cent to 1.50 per cent range.”
Tom Donaldson, owner, president and chief executive of Calgary-based Edo Japan, said the company has 25 locations in the Calgary area and has found space for another location at a new development in Lake Sundance to open in December.
“Calgary would be one of the tightest markets certainly in western Canada. Vancouver would be the second most difficult market but Calgary would be the tightest,” said Donaldson, whose company has 99 locations across the western provinces and in Ontario.
Calgary’s retail market is buoyed by a strong economy and high levels of personal income, disposable income and consumer spending.
Rob Walker, vice-president/partner with Colliers, said one of the biggest issues in Calgary is the quantity of retail zoned land the municipal government is allowing in newer communities compared with other cities.
“It’s quite small as a proportion,” said Walker.
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Widespread violations of standards for underage workers in Alberta
Source: Candian HR Reporter, April 25, 2011
There are widespread violations of employment standards for working children and adolescents in Alberta, according to a study by the Alberta Federation of Labour (AFL) and Athabasca University.
"Tens of thousands of adolescent Albertans, aged 12 to 14, are employed and 21 per cent of them work in illegal jobs," said Gil McGowan, president of AFL, which represents 140,000 workers. "The story for child workers, aged 9 to 11, is even worse, with 78 per cent doing work prohibited by the government."
Underage workers need more than a few targeted inspections, said McGowan.
“Alberta's complaints-driven employment standards system does not work for families in this province," she said, adding Alberta's Dickensian decision to allow children as young as 12 to work in restaurants has exacerbated the problem.
"There is no incentive for employers to ensure children and adolescents are working in safe and legal situations or that they are being paid appropriately. Violations of employment standards laws simply result in a cease-and-desist order or an order to pay wages owed."
The study by Bob Barnetson, an assistant professor of labour relations at the Centre for Work and Community Studies at Athabasca University in Edmonton, involved a survey of 1,200 Alberta homes as well as followup interviews with parents and children or adolescents who participate in the workforce.
The interview data raised further concerns about potentially widespread violations of hours of work, minimum wage, call-in pay, minimum age, legal deductions and restaurant industry regulations, said the study “Effectiveness of complaint-driven regulation of child labour in Alberta” in Just Labour.
“This degree of non-compliance suggests that complaint-driven enforcement may not be an effective way to regulate child labour. The inability of potential complainants to recognize violations and their unwillingness to trigger enforcement appear to be key issues.”
Key study findings include:
• In 2009, 6.3 per cent of children had jobs — 8,200 children aged nine to 11. A total of 78 per cent of the jobs done by children were illegal, such as newspaper delivery or janitorial services. The remaining 22 per cent had jobs such as babysitting and yard work.
• 26,000 adolescent workers (12 to 14) were employed. More than 21 per cent worked in prohibited occupations (such as janitorial services, sports teams or working on a golf course). By contrast, 28.6 per cent of jobs appear to be legal types of employment (such as newspaper delivery, retail sales, restaurants or agriculture). The remaining 50 per cent of jobs were babysitting and yard work.
The effect of improbable enforcement may be exacerbated by the financial incentive employers have to not comply as well as the lack of meaningful consequence for violations, said the study.
“It may be possible to increase compliance with child labour laws by supplementing complaint-driven enforcement with significant numbers of random inspections.”
The AFL called on Alberta's Employment Minister Thomas Lukaszuk to immediately reverse the decision to allow children as young as 12 to work in restaurants and commit to a continuing program of random proactive employment standards inspections for employers who are known to employ underage workers. The minister also needs to make immediate changes to employment standards enforcement mechanisms and ensure prosecution of employers that break the law, said McGowan.
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► BC NEWS
Kinetix Media Communications Uses Lyris HQ to Boost Email Results for Dianes Lingerie and Impact Revenue Growth 15 Percent Year over Year FY 2010
Source: Lyris Inc, PR Newswire, April 27, 2011
EMERYVILLE, Calif., April 27, 2011 /PRNewswire/ -- Lyris, Inc.(OTCBB: LYRI), the online marketing expert, today announced that its customer Kinetix Media Communications increased overall email effectiveness rates for retail client Dianes Lingerie through email campaigns using Lyris HQ Agency Edition. Achieving campaign generated click-through rates of 29 percent, Web traffic increased 8 percent, both of which impacted a 15 percent increase in revenue generation year over year FY 2010.
"We deliver value when our clients win. And for our clients, winning means revenue. We chose Lyris as our email solution provider because it empowers us to work efficiently and drive continual improvement in our campaigns and delivery," said Paula Skaper, president, Kinetix. "The intuitive dashboard is integrated across campaign elements, making it easy to track and optimize campaign response and engagement across multiple channels. Because of this, we are able to continually deliver value to our clients and impact their bottom line, as demonstrated by customers like Dianes Lingerie."
"Working with Kinetix, we developed a comprehensive marketing strategy that is impacting sales," said Lynda Barr, general manager, Dianes Lingerie. "Kinetix has helped us create a strong digital presence which is delivering impressive results, demonstrated by our 15 percent year-over-year growth in revenue FY 2010, 29 percent click-through rate from emails and 35 percent of sales directly attributed to email campaigns."
Servicing a broad range of Canadian local and regional client brands including Red Line Hockey, Tourism British Columbia, Vancouver's Ultimate Tour and Dianes Lingerie, email marketing has been a critical component of Kinetix' integrated client offering.
"Kinetix has been a loyal customer with Lyris since 2008, sending an average of 700,000 emails per month. They leverage all of the advanced marketing tools, including segmentation and triggers for developing messages and offers that are relevant to the audience touched," said Nello Franco, senior vice president of customer success, Lyris. "They continue to hone email campaigns using innovation and creativity. Kinetix have expanded their client base, while successfully retaining clients, because they continue to deliver value in measured results."
About Dianes Lingerie
Offering British Columbia's largest selection of quality lingerie for every body shape and size, Dianes Lingerie has enjoyed over 25 years of steady growth, thanks to the steadfast commitment of our founder, Diane Thomson, to provide an outstanding level of personalized service, while maintaining quality, fit and value. http://www.dianeslingerie.com
About Kinetix Media Communications
Kinetix Media Communications provides creative and strategic campaigns to British Columbia based businesses in the retail, manufacturing, tourism / hospitality, and financial services industries. We strive to achieve the best possible solution for any type of situation. From social media and advertising campaigns to branding and print design, we provide you with a professional level of expertise on any medium. http://www.kinetixmedia.com
About Lyris, Inc.
Lyris, Inc. is the online marketing expert delivering the right mix of software technology and industry knowledge to help its customers simplify their marketing efforts and optimize campaign ROI. Through its on-demand integrated marketing suite, Lyris HQ, and reliable on-premise solutions, including Lyris ListManager, Lyris provides customers the right tools to optimize their online and mobile marketing initiatives. http://www.lyris.com
For more information, read the full success story
here
.
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WorkSafe B.C. pushes for late-night retail workers' protection
Source: Andy Ivens, The Province, April 28, 2011
WorkSafe B.C. is proposing amendments to the regulations that govern late-night safety procedures and requirements for retail workers.
Currently, employers have two options to ensure their workers’ safety:
• Ensure that the worker is physically separated from the public by a locked door or barrier that prevents physical contact with or access to the worker; or
• Assign one or more workers to work with the worker during that worker’s assignment.
“It became clear that some employers could not comply in a practicable manner with the requirements,” WorkSafeBC said in an explanatory note about the proposed amendments.
A so-called “third option” allows employers “to be able to choose to implement a violence prevention program, which consists of a prescriptive list of requirements that combine engineering and administrative controls, to protect the health and safety of workers assigned to work alone in a late night retail premises.”
Under the proposal, employers who choose to implement a violence prevention program will be prohibited from employing workers under the age of 19 to work alone during late night hours, said the note.
Donna Freeman, director of media relations for WorkSafeBC, denied the proposal is a watering-down of Grant’s Law, named in memory of Grant de Patie, who was killed trying to prevent a late-night robbery at the gas station where he worked.
“WorkSafeBC is not changing Grant’s Law in any way,” she said.
“Grant’s Law is the requirement for mandatory pre-payment of fuel purchases at late-night gas stations.
“We introduced this amendment to the Working Alone or in Isolation Regulation in 2008 and it has been in place since.”
Three separate amendments to different WorkSafeBC regulations were announced at the same time, which Freeman said may be a valid reason for confusion.
“But there are three distinct issues here,” said Freeman.
“Grant’s Law has worked amazingly well. We were told by the Vancouver police that it has virtually eliminated gas-and-dash thefts.
“It has been an absolute tribute to Grant de Patie, and it’s disheartening if anyone thinks his memory hasn’t been honoured,” said Freeman.
Freeman said there are other related amendments.
“There have been challenges with the late-night retail amendments.
“Since 2008, we understood that there would be a transition period.
“It did prove challenging. We have had to respond to that. It has to be a practicable regulation.
“There’s a new proposed amendment that would offer a third option for this particular cohort of employers.
“It’s public consultation that we’re required to conduct, and we’ll hear what everybody, including the [B.C. Federation of Labour] and workers in the industry, have to say.
She added, “There are many other existing regulations that apply in these scenarios, and that’s the violence-in-the-workplace regulations.
“These employers always have to comply with [them]. They have to conduct a risk assessment of their workplace.
“If there’s a risk of an act of violence in your workplace, you have to do an assessment and you have to put in place a written plan to eliminate or minimize the risk.
“There’s no change to Grant’s Law,” said Freeman.
Grant’s grandfather Chet Crellin told CKNW News on Wednesday Grant’s Law is not being enforced.
“We have service stations in Abbotsford that still turn the pumps on for the people,” he said.
Freeman countered, “To my knowledge he has not informed us. If he has, it will be followed up on.”
She called complaints about the regulations “rare.”
She said WorkSafeBC follows up all complaints. If officials find “repeated non-compliance,” officials can write orders or issue penalties, said Freeman.
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Retail-sales hike in B.C. tops nation
Source: Kim Covert, Financial Post, April 22, 2011
After two months of declines, Canadian retail sales rose in February, though it's too soon to celebrate, analysts say.
Statistics Canada reported Thursday that retail sales rose 0.4 per cent in February, with a value of $37.3 billion when adjusted for seasonal fluctuations.
But analysts had predicted a gain of 0.5 per cent for the month, following a 0.4-per-cent decline in January -originally reported as 0.3 per cent.
B.C.'s sales, which grew 0.7 per cent month over month, were slightly stronger than the national average. On a year-over-year basis, however, the province's growth of 0.3 per cent was far below the national average of 3.7 per cent for that period, the StatsCan figures show.
CIBC World Markets economist Emanuella Enenajor said the monthly national numbers offered no reason to pop open a bottle of champagne.
"The headline figure came in slightly weaker than expectations, and . . . the three-month annualized pace of retail sales is still in negative territory," she said.
"In real terms, the month's 0.4 per cent gain gives a bit of a boost to the month's GDP numbers, but still suggests growth in February should come in more or less flat."
The automotive sector, which has been responsible for gains in other parts of the economy in the first quarter of 2011 dragged down retail sales for a second month in a row.
Earlier this week, Statistics Canada reported the national inflation rate rose 1.1 per cent in March to 3.3 per cent annually. The area largely responsible for the increase in the inflation rate was also driving most of the gains in retail sales in February -gasoline, with a 1.3-per-cent increase in sales due to rising gas prices.
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► RETAIL TRENDS
Perrine’s Wine deploys mobile-enabled POS system to improve customer service
Source: Giselle Tsirulnik, Mobile Commerce Daily, April 28, 2011
Perrine’s Wine has deployed a mobile-enabled point-of-sale system in the shop to improve the customer service experience.
Using LightSpeed Mobile, staff can tour the store assembling a case of wine, scanning and adding items to the order as the customer shops. Then, after completing the transaction, staff can use the system to process the credit card payment and email the invoice, all without visiting the cash register.
“The mobile phone is very practical,” said Perrine Prieur, founder and owner of Perrine’s Wine, Atlanta. “My shop is 1,000 square feet so it is not very big, but there are more than 350 wines.
“When I do a tasting with a customer, I can actually scan each bottle, and I don’t have to take a bottle from a case and go back to the register and back again, I can scan from wherever I am and the customer can check out.
“It’s practical, it’s cool and it is just easier.”
Perrine’s Wine shop has handpicked décor, furniture and other fixtures to give visitors a taste of the owner’s Burgundy, France homeland.
The setting, in contrast with its retail technology, provides customers with a unique shopping experience.
Customer relationship management
Ms. Prieur said that the one-to-one interaction ensures that customers have the most personally-tailored shopping experience possible. It also builds a relationship with the shop’s customer base, allowing the creation and maintenance of personal profiles for each customer based on their previous purchases.
Customer service is further enhanced through personalized emails that are sent to past shoppers and include special notes on the wines they buy, with plans to eventually include wine pairing.
LightSpeed allows the store to be more efficient. It is economical and makes business easier, per Ms. Prieur.
“Upgrading to the mobile system was very easy,” Ms. Prieur said. “It only took 30 minutes to set up.
“The cost is not that much when you think about how much faster you can work,” she said. “I only have one POS, one salesperson and myself – we can both work and check out customers at the same time.
“It makes my life easier, and you can check out more people at once. It’s cool, customers like it, they tell their friends, and they are pretty impressed with it.”
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Facebook jumps into crowded coupon market
Source: Alexei Oreskovic, Reuters, April 27, 2011
Target's TGT fourth-quarter retail sales results reflected a competitive retail landscape and volatile consumer spending patterns, but continued improvement in its credit card business made up the shortfall and kept full-year operating margin and free cash flow targets in line with our expectations. Retail segment sales improved 2.8% to $20.3 billion on 2.4% comparable-store sales growth (including a 1.6% increase in traffic) and contribution from new stores, while operating margins grew 10 basis points to 7.0%, slightly below our expectations. However, improving delinquency rates in Target's credit card division and the subsequent moderation in bad debt expense resulted in a fourfold improvement in credit card profit, more than offsetting any retail weakness. There is no change to our fair value estimate at present, as management's near-term expectations are generally consistent with our own. Trading at less than 12 times our forward fiscal-year earnings estimate and a forward enterprise value to EBITDA of about 7 times, we continue to find Target shares attractive at current prices.
Based on expectations of increased awareness of Target's PFresh remodels and 5% REDCard Rewards, modest price increases to offset commodity cost inflation, and a revamped Target.com platform, we think it's reasonable to assume a moderate acceleration in comparable-store sales during 2011 (compared with 2.1% in 2010). We anticipate a 4% increase this year--the low end of management's outlook--split about evenly between the number of transactions and average transaction size. Sales trends are likely to remain volatile this year, as consumers continuing to spend for key events but take pauses in between. We believe management's outlook for flat retail operating margins are realistic, as gross margin pressures stemming from remodels and the rewards program are countered by operating expense leverage on the top-line improvement. The credit card segment should also remain a meaningful profit driver as delinquency rates and average receivables improve throughout 2011, making up most of the 20-basis-point improvement we expect in full-year operating margins.
Looking beyond 2011, management's long-term goals of $100 billion in annual sales and $8 per share in earnings by 2016 or 2017 (implying high-single-digit top-line growth and 10%-12% earnings per share growth) strike us as ambitious, especially in light of a competitive retail marketplace. While we're optimistic about the firm's push into Canada (100-150 stores in 2013, with aspirations of around 250 in total) and urban format stores, competition is only likely to intensify in coming years as retailers battle for post-recessionary market share. While we think Target's brand strength and scale advantages make it a formidable competitor and provide the company with a narrow economic moat, the firm must also contend with other leading mass channel retailers like Wal-Mart WMT and Costco COST. Until we have a better idea as to Canadian and urban store productivity levels, we'll take a more conservative outlook than management's with 2017 revenue in the high $90 billion range and earnings per share above $6.
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RFID Makes Nightly Inventory Possible
Source: Dan Smith, IT Insider, April 26, 2011
Few retailers are using RFID (radio frequency identification) in everyday life, but some have pilot programs. Hudson’s Bay Company has three pilots planned. All involve taking inventory on a frequent basis as opposed to once a year. The point is to find out that merchandise isn’t where we expect it to be early enough to solve the problem.
Every retailer knows that accuracy is huge because, inevitably, some items are received or sold incorrectly. Vendors may send a different mix of items than expected. Sales associates may record the brown, yellow and green items as three brown items, making all the inventory numbers for those units wrong. Or, the existing inventory method might provide inaccurate results.
We will work with women’s shoes as one of our first tests, scanning the samples on the floor in minutes every night. In another more complicated pilot, we will use tags on items combined with special RFID tags on our fixture to ensure that items are placed where they are supposed to be according to our planogram. A planogram is a carefully designed diagram that dictates where every item in a store should be to optimize sales. If an item is in a stock room or hung in the wrong place, we may miss that sale. With RFID tagging, items can be returned to their correct place in the planogram more quickly, and we can reorder items more accurately.
RFID: Improved Sales, Lower Inventory Costs
The first benefit we should see is a sales lift. Several pilots in very large retailers have had that result, and I’ve heard of sales increases of up to 10 percent. It sounds high, but you have to recognize that inventory issues cause retailers to miss sales opportunities.
Another benefit should be to lower the cost of taking inventory in stores. Retailers can save millions of dollars if they can take inventory every night as traffic is slowing down. In general, it would be done while straightening the sales floor for the next day or at the beginning of the following day, depending on the management style.
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