Category: retail

Categories
distribution

Roll out the tires – online?

Canadian Tire, that venerable Canadian institution that sells a little bit of everything but has tires in its name, is going back to its core business and offering more tires. Online. Online tire sales? Yup. The idea is that once customers come to the store to have their cheap tires installed (cheap because they got a better price by buying the tires online), they’ll stay and buy other stuff. And Canadian Tire has A LOT of stuff.

Is this a good strategy for Canadian Tire? In lots of way, yes. The tire industry is huge – $2.5 – $3.5B, so it’s worthwhile for this retailing giant to return to its roots and try to nab some of the business as competitors like Costco rush in, online. It’s also a way to get customers who may not normally shop at Canadian Tire, those who are web savvy but not Canadian Tire savvy, into the stores.

Europeans buy tires online at a greater rate than Canadians, 10-15%. Its something that Canadians may well embrace as we see the efficiency in only having to go to the store once – for pickup/installation, not several times for purchase and then to return for installation.

Targeting Canada

Hurray, Target is coming to Canada. Target recently bought 220 Zellers stores and will open in Canada in 2013.

Does Canada need another discount retailer? How well will Tar-jay do when they get here? Is there so much pent up demand for this American retailer, especially from those of us who live close enough to make frequent cross border trips, that Target will annihilate existing Canadian low priced retailers like the Real Canadian Superstore and fellow American Walmart? Unlikely, but there will be a big spike in sales and the competition better be ready as Target is slick and smart. And we are keen to have them here.

But why does Target think they can make a go of it in Canada? Interesting question because American retail has been hit hard, although is starting to bounce back. Canadian retail has been hit less hard and there is less competition in Canadian retail than U.S., making the market opportunity better for entry by Target. Good news for Target.

Categories
distribution innovation

Pop Up Retail

Pop up retailers are here for a good time, not a long time.  You’ve probably seen them:  stores that you notice just over the holiday period, for example, that weren’t there in the fall and, when you walk by the same spot in February, that store will be gone.  This is the idea of hot trend called pop up retail:  retailers set up shop for short period and then disband when they’ve sold out.  Big brands like Nike, Gap, even Gucci have tried it.

Pop up retail gives retailers a chance to test products in new markets and to build their brand recognition amongst consumers.  It lets small, local retailers take advantage of lower, short term lease opportunities on retail space without committing to large inventories.

An interesting local example is The Latest Scoop often showing up on S. Granville and in Kitsilano.

Categories
social media

Mind The GAP

The GAP recently created a furor when they announced a change in their logo from the old familiar navy blue (red at Christmas) to something newer, and what they felt was, more friendly to our digital app-driven world.  The market did not agree and there was a huge public outcry.  So much so that GAP scrapped the new logo.

GAP Inc. ran several social media campaigns to come up with the new logo.  While GAP may not be your thing these days, it certainly is many people’s thing as  GAP pulled in revenues of $14.2B last year and increased sales growth.  The brand just doesn’t feel as relevant anymore, unfortunately.  But consider what’s good about the brand?  While you may not love it, the logo is widely recognized…and given the outcry, clearly loved by many people.

The new logo is pretty bland and looks like it was created by a committee trying to pull elements of the old logo together with what they think might look good on an iPhone app.  Is this the right way to build a brand’s equity, especially for one of the strongest brands in the world.  Also, consider the choice of font:  Helvetica.  Used to be an interesting font.  Kind of cool.  Now, it has become ubiquitous and representative of nothing.  Is that what The GAP wants us for a brand association?  Good move in pulling the new logo and putting the old one back on the box.  Wonder what the next chapter will be…this one isn’t over…

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