According to Acosta’s latest “The Why? Behind the Buy” report, retailers that are able to provide robust digital offerings are the most likely to win over Millennial shoppers.

This is especially prevalent in the grocery business, says Acosta’s Senior VP, Colin Stewart. He notes that the typical grocery store has been set up in the same way since the 1960s.

“As I’ve talked to retailers recently, they’re all trying to figure out, how do I get shoppers into the store? How do I get them to buy more once they’re there? How do I get them to be loyal to me the retailer and come back?” He says. “I think a lot them are recognizing that the experience has a lot of do with that.”

Stewart notes that Millennial shoppers are a very “experiential” group, something that retailers must cater to if they wish to attract younger shoppers. According to Stewart, integrating digital into the store will greatly aid in this.

“When you look at the numbers, obviously Millennials outrank any other generation on just about anything to do with digital and shopping, whether that’s looking up prices, looking up product ingredients, [or] looking up reviews on products,” adds Stewart. “But I think it’s really almost just an expectation of Millennials that there’s going to be some sort of way that they can use that device in their hand.”

When it comes to online grocery capabilities, 64 per cent of Millennials said they shop online at least once a month. Additionally, they are more likely to try meal kit delivery services, with around sixty per cent of Millennials having tried these options.

Moreover, offering interactive in-store initiatives may also be the way into the Millennial mind. Acosta’s data shows that forty-five percent of these shoppers want to take cooking classes.

With all of this in mind, consider making your storefront more interactive for your younger customers. By creating an “experiential” and digital shopping service, you’ll be able to attract Millennials—and keep them coming back for more.

With this year’s developments in the natural health products industry, Prime Nutrisource, a Scarborough-based business, is keeping local parliament close. Last Friday, the pharmaceutical company invited Shaun Chen to visit its manufacturing facility.

The MP was treated to a tour of the company’s space, where he learned about the manufacturing process—as well as about the neutraceuticals industry, itself.

“With everything going on in the industry right now, especially with Health Canada’s concerns about regulating our products, it is extremely important that we keep parliament involved,” says Ken Dixon, general manager. “MPs must stay involved with our industry—by getting them talking about natural products, we are benefitting everyone.”

So, consider getting into contact with your local MP. By getting a conversation started about the industry, you may be able to influence real change.

Last week, Kroger announced that it would offer voluntary retirement buyouts to 2,000 of its non-store employees. This decision comes in support of the company’s “Customer 1st” strategy, which will help to reduce costs in areas not affecting the customer experience.

“Kroger would not be the successful company it is today without the incredible efforts of all of our associates. We believe a generous voluntary retirement offering is in line with our company values and recognizes the long careers many of our associates have had with Kroger,” says CEO Rodney McMullen. “Kroger is committed to our operating model of lowering costs to invest in the areas that matter most to our customers.”

Due to the program’s voluntary nature, savings and cost will depend on the number of associates who accept the offer. This initiative will be available until early March.

Any expenses related to the offer will be reflected in the company’s first quarter results for 2017. The announcement comes on the heels of weakening sales Kroger, which recently posted its lowest quarterly sales gain in 13 years.

Sobeys has reported a “very disappointing” fiscal second quarter, according to parent company Empire Cos. The company is still struggling with the aftereffects of its Safeway Canada acquisition, and has seen a drop in profits due to sales declines and costs associated with structural changes.

“These challenges simply reinforce the need for a renewed focus on our business transformation efforts, as well as a significant expansion and acceleration of efforts to reduce costs and complexity throughout our organization,” says François Vimard, Empire’s interim president and CEO.

The grocer notes that it has asked outside consultants to help sort out changes that must be made to the business. All recommendations will be discussed before Sobeys reports its fourth quarter results.

Sobeys has been experiencing these challenges since its $5.8 billion acquisition of Safeway Canada in 2013. After closing, Sobeys was left with hundreds of stores in Western Canada. However, integration issues led to supply challenges, while downturn in the oil and gas markets in the regions led to decreased profits.

Second quarter sales decreased by 2.1 per cent and identical store sales fell by 2.6 per cent, primarily due to struggles in Western Canada. Comps excluding Western Canada were down by 1.2 per cent. Adjusted net earnings for the period crashed by 70.3 per cent to $32.9 million on $5.9 billion in sales.

Last week, Whole Foods Markets fired nine store managers out of its Washington, D.C. stores. According to the grocery giant, these individuals had committed improprieties in managing a profit-sharing program for their own advantage.
According to the Associated Press, managers at nine separate stores in Virginia, Maryland and Washington, D.C. have been terminated. Those individuals had been found misusing the chain’s “Gainsharing” program, which awards bonuses to hourly employees whose departments come in under budget.

Whole Foods has not offered comments on the nature of these misdemeanors or specified which locations were affected. “We took swift action, but, relative to the rest of the company, this manipulation only happened in nine of our locations,” says company spokeswoman Brooke Buchanan.

“Gainsharing,” which allows employees to receive benefits for their cost-saving measures, has been criticized as a way for employers to determine how to best cut labor costs. As such, this program rewards workers in the short term, but could potentially eliminate their jobs in the long term.

The Canadian Gift Association (CanGift) is thrilled to announce Pharmasave Broadmead in Victoria, B.C. as the 2016 Retailer of the Year. Locally owned and operated by Andrea Hyndman, Satnam Lalli, and Michelle and Dave Jeske, Pharmasave Broadmead opened in 1991, recently celebrating 25 years in business.

At the entrance of the 10,000 square foot store, customers are greeted with vignettes of beautifully displayed giftware and décor items from around the world, and around the corner. The giftware department encompasses over 2,000 square feet of retail space with brands, such as Indaba Trading, Abbott, Torre and Tagus, Bovi and many more.

“It is an incredible honour to win Retailer of the Year from the Canadian Gift Association,” says Rhea Cavelti, store manager. “Being awarded this from our peers is very humbling. Our team is inspired by our customers and the thrill of finding the perfect products for them.”

The store is involved in many fundraising campaigns including Canucks for Kids, Canadian Cancer Society and Variety the Children’s Charity. Local non-profit groups, schools and community fundraising efforts have also been strongly supported. In addition, the team has won the Pharmasave Charity Champions Regional Award six years in a row and Pharmasave Store of the Year seven times in the last 24 years.

CanGift’s Retailer of the Year Awards are based on criteria that are vital to retail success including: visual merchandising and store design; business achievements; advertising and public relations; and community involvement. The winners are officially awarded at the Salute to Excellence Awards Reception, hosted by celebrity designers Glen Peloso and Jamie Alexander at the Spring 2017 Toronto Gift Fair.

With 2016 drawing to a close, it is important for businesses in all industries to look towards future growth. Various experts are suggesting that next year, digital will be the aid of choice for Canadian companies.

Of course, this digital expansion will include the expansion of e-commerce capabilities. While in 2016, e-commerce sales accounting for only about 2 per cent of total retail sales, retail industry expert Doug Stephens told the Canadian Press that it is growing quickly.

According to Stephens, who runs consultancy firm Retail Prophet, e-commerce it’s growing at a pace of 15 per cent each year, compared with 3 per cent growth in bricks-and-mortar sales. Stephens notes that customers expect the process of buying online to be as seamless as purchasing the item in a store.

“The ability to serve customers online and particularly on a mobile device, to be able to ship quickly and to be able to ship either free or at the lowest possible cost [is necessary],” he said.

Additionally, more retailers will be incorporating more digital elements into their stores. Retail strategist Kelly Askew also told the Canadian Press that in 2017, “(retailers will be) moving away from some of the gimmicky and gadgetry that we’ve seen until now, like digital screens you can interact with but they don’t really add to the experience.”

Simply put: beef up your digital experience for consumers in order to stay on top. Those who continue to ignore the growing medium may fall short.

With store closures and low sales, Sears Canada is attempting to turn things around with an entrance into the grocery business. The Toronto-based department store chain has partnered with two specialty supermarket operators to run food markets at some of its retail locations.

Brandon G. Stranzl, executive chairman of Sears Canada, says this move should drive more traffic to Sears locations—shoppers visit grocery stores much more frequently than they do department stores.

The announcement comes as Sears Canada is struggling with finances: this year’s third-quarter report showed doubled losses from the same time last year. Quarterly revenue was $625.2 million, down 21.1 per cent from the third quarter of 2015, which showed $792.1 million in revenue.

“We’re not, obviously, happy with where the business is financially,” says Stranzl, adding that things won’t improve “overnight.” To help speed this process along, Sears has been redesigning stores and leaving more retail space for new partnerships.

Sears follows in the footsteps of companies like Walmart and Shoppers Drug Mart, which both entered the grocery business in recent years. For independents, this move may or may not spell trouble: with these fully integrated department stores moving into the grocery category, smaller retailers will have to increasingly compete for market share.

Last week, Costco Wholesale announced the opening of its first Business Centre in Canada. The new concept targets businesses in the food service, convenience store, and restaurant industries.

Located in Scarborough, the 127,000 square-foot location will operate differently from the company’s other warehouses: 80 per cent of its product offerings only be available at the Costco Business Centre, including various fresh foods and confectionary items.

The centre will also offer next-day delivery with a new truck fleet, as well as business-friendly hours that start at 7AM.

“Costco’s Business Centre will help our local businesses grow by providing them with the products they need in a timely manner,” says Toronto Mayor John Tory. “This is good for business and it’s good for our economy.”

Baskets will also be four times larger than those at the traditional Costco locations, according to Andree Brien, senior vice-president at Costco Wholesale Canada. Additionally, the stores will be quieter, with businesses taking advantage of extended hours and delivery options.

This new development could spell trouble for other wholesalers in the grocery, restaurant and convenience store industries, who may have to reconsider some of their operations in order to remain unscathed. The Business Centre, which is set to open in March, will be open to anyone with a Costco card.