Latest news with #DavidIanGray
CBC
a day ago
- Business
- CBC
Vancouver apparel company Oak + Fort seeks creditor protection
Social Sharing Canadian apparel brand Oak + Fort says it has obtained creditor protection as it works to restructure its business. The Vancouver-based company says the move is necessary because U.S. tariffs have joined other price pressures and led to a decline in consumer confidence and spending. The tariffs arrived after Oak + Fort pushed to open 26 new Canadian and U.S. stores in the last four years, which the company says resulted in a reduced and ultimately insufficient investment in its e-commerce platforms. Court documents show the company owes more than $25 million to creditors including some landlords who didn't receive May rent payments. Oak + Fort says it will continue to operate stores and an e-commerce business during the restructuring. It was founded in 2010 as an online boutique that eventually expanded to 42 stores in Canada and the U.S. selling womenswear, menswear, accessories, jewelry and home goods. Vancouver-based retail strategist David Ian Gray, founder of DIG360, said that there have been a rolling series of challenges for the retail sector, which has had to deal with high interest rates. "At the very same time, consumer spending has really dampened — and not just for a month or two," he told CBC News. "It's really settled down into a slump. "And there's a big difference between consumers who are buying on need, such as grocery or home improvement household items, versus where they might want to buy some fashion." Gray says the tariffs have added to a "perfect storm" for retailers like Oak + Fort, and others may face similar challenges in the months to come. The strategist said that the company had done a great job engaging shoppers in Vancouver and B.C. over the years. "But like we've seen with so many retailers, sometimes the enthusiasm you see from shoppers in your home market, you forget that might have taken you five or more years to build that up," the analyst said. "And suddenly you need to have the same level in new places ... happening overnight. And so, it's not really a surprise to me that they've had some struggles." Christy Wong, who is from New York, said she was shocked to hear that the retailer was seeking creditor protection, and that many people went to the retailers' outlet in that city.
Yahoo
12-04-2025
- Entertainment
- Yahoo
Star ratings can mislead shoppers and impact sales, UBC study shows
If you're deciding between two products, both rated a 3.5, but one shows the score with stars while the other uses plain numbers, odds are you'll pick the one with stars. That's the key finding from a recent study by the University of B.C. Sauder School of Business, which reveals that consumers consistently overestimate ratings shown as stars and underestimate the same values when shown as numbers. "Whenever I see a star rating, especially if it's a fractional one, which leads to incomplete star pictures like 3.5 or 3.7, I take a moment to ask myself, am I being fooled?" said Deepak Sirwani, an assistant professor at UBC Sauder and co-author of the study. When a product rating is shown using stars, a score like 3.5 is typically displayed as three full stars followed by a half-filled fourth star. WATCH | How different rating visuals can affect buyer perception: Visually, this creates the impression of an incomplete image, says Sirwani. "So we tend to round up and complete the incomplete picture with the visual ratings," he explained during an interview with CBC's On The Coast. In contrast, numbers prompt consumers to fixate on the first digit — a phenomenon known as the "left-digit effect." "We read from left to right, especially in Western civilization and a lot of other civilizations, so we focus more on three in the number 3.5 … and round down." That gap in perception, according to the research, can have a massive effect. The UBC researchers say visually complete stars would give consumers a more accurate visual of how products have been rated. (CBC News) Impact on sales "When you show a product using a star rating, your sales might triple compared to the same rating shown using numbers," Sirwani said. But the study also warns that star ratings might lead to inflated expectations — and eventually, disappointed customers. "[Consumers] might feel they were over promised and under delivered so that may increase negative reviews," the study's co-author said. Researchers recommend using "visually complete stars" — ones that only show a star's filled-in part, not its overall border — to minimize bias. Vancouver-based retail strategist David Ian Gray called the findings "clever" and "unique." "I don't think it's anything we're consciously thinking about day-to-day," he told CBC News. "But reviews are incredibly influential on consumer behaviour, spending choices." Gray says brands hosting their own internal reviews might consider switching formats — though he cautions that many consumers look for third-party ratings to avoid bias. Retail advisor David Ian Gray called the study 'clever' and 'unique,' saying it taps into a psychological effect many people aren't even aware of. (Julie Heather Photography) "There are a lot of websites with dubious reviews, possibly paid for," he said. "Consumers are looking for objectivity." Gray says studies such as UBC's can make people more alert. "I think consumers, when they hear about this, are going to be a little bit more conscious of how they're intuitively reacting, and maybe double-check their thinking." WATCH | Marketplace investigates fake reviews: The researchers note the study's implications stretch far beyond product reviews, stating that similar visual biases may impact how people interpret battery life on a phone, fuel gauges, fitness trackers, and safety ratings on vehicles, among other things. The study is calling for industry standards and regulatory guidelines, not only to level the playing field between retailers, but to ensure consumers aren't being misled — even accidentally. "Whether it's pictorial formats or numbers, ratings matter, and platforms should probably think about it more carefully than they have," said Sirwani.
CBC
04-04-2025
- Business
- CBC
Visits to downtown Vancouver dropped in 2024, while the number of vacant storefronts rose
A new report from Vancouver's Downtown Business Improvement Association says visits to the city's downtown district took a 7.8 per cent downturn in 2024 compared to a year earlier. According to Downtown Van's Annual State of Downtown report, the decline is the first since 2020. "This shift, along with changes in other indicators, signals the end of the post-pandemic recovery phase and the beginning of a new chapter: one that requires a proactive and strategic approach," the report says. "More importantly, what lies ahead requires us to move beyond a mindset of recovery, and toward the goal of prosperity." While one data point does not make a trend, there are others that indicate a general loss in the vibrancy of downtown. The number of vacant storefronts is growing, up from 13.7 per cent in 2023 to 14.9 per cent in 2024. That's four points higher than the citywide rate of 9.9 per cent. The report notes Granville Street continues to struggle with persistent storefront vacancies, "creating challenges for its success as an entertainment district." In 2024, almost a third of the Granville strip's storefronts were vacant at 29.3 per cent, up from 22.1 per cent a year earlier. The report singles out the loss of The Bay, a downtown anchor and magnet for shoppers for over 110 years. Vancouver's flagship store is set to be vacated by June 30 after the company filed for creditor protection last month —more bad news for retail and restaurant businesses in the downtown's central core. "Smaller businesses tend to rely on the big drivers," retail business analyst David Ian Gray told CBC earlier. "If you're a little sandwich shop sort of tucked in there along Nordstrom (closed in June 2023) and the Bay, you're not going to be doing quite so well." Retail businesses saw a decrease in average weekly sales in 2024 of 1.9 per cent. Restaurants fared even worse, with a 6.5 per cent drop versus 2023. WATCH | Frustrated business owners weigh in on city revitalization plans: City of Vancouver unveils plans to revitalize Granville Street 2 months ago Duration 2:20 But not all numbers in the report were negative. Taylor Swift's three concert stops in Vancouver last December sparked an average 26 per cent increase in downtown spending for the duration and helped fill the city's hotels. Overall, downtown Vancouver's 2024 hotel occupancy rate matched pre-pandemic levels at 80.4 per cent, according to the report. "Accelerated hotel project approvals by local governments would be essential for capitalizing on Vancouver's growing tourism demand," it says. A strong transit system was cited as helping downtown Vancouver remain resilient, with a 2.1 per cent average increase in daily transit boardings across all services. The president and CEO of Downtown Van said 2025 trade conflicts have resulted in an additional "unsettling layer of uncertainty" that requires the city and business community to rise to the challenge. "This means reducing barriers to doing business in Vancouver, re-localizing supply chains, building new strategic partnerships both locally and globally, and investing in the economic, cultural, and social core of our region," said Jane Talbot.
CBC
18-03-2025
- Business
- CBC
Hudson's Bay's demise marks the death of the traditional department store in Canada
Social Sharing The Hudson's Bay in downtown Vancouver already looks like it's going out of business. When entering the store, shoppers are greeted by warning signs that neither the store's elevators nor escalator work, and they must use the fire exit stairs. Employees aimlessly patrol fragrance and cosmetic booths with no customers in sight. Hudson's Bay was, for decades, a major shopping destination, offering multiple floors of fashion, accessories, furniture and appliances. But now, it's likely to meet the same fate as other big department stores in Canada like Eaton's and Sears, which have already closed their doors due to slow sales and mountains of debt. Hudson's Bay is still holding out hope it will secure enough financing to stay afloat and restructure. But a more likely scenario is that the deeply indebted retailer will soon shut down, and start liquidation sales as early as this week. Smaller versions of the department store model are still thriving, such as discount chain Walmart and Canadian fashion retailer, Simons. But the iconic department store with window displays and several floors of varied merchandise is coming to a close in Canada. Some experts say the reason, at its core, is simple: These retail giants got stuck in tradition and didn't change with the times. "They were trying to work with an outdated model," said retail strategist David Ian Gray. "It just, overtime, became archaic." That sentiment is echoed by shoppers who feel bad for the Bay — and don't shop there. "It's kind of sad that they're going out of business," said David Genio outside the Bay in downtown Vancouver. But in the next breath, he added: "Their stuff is a little outdated I find and catered towards older people." Outside the Bay in downtown Toronto, Cathy McCabe-Lokos agrees that the chain's demise is sad. But she also admits that the location "has been empty, kind of desolate for years." The encroaching specialty shop Toronto's Eaton Centre shopping mall is a microcosm for the demise of the traditional department store. It opened 1977 with Eaton's as its anchor — one of Canada's largest department store chains at the time. However, Eaton's declared bankruptcy in 1999, after more than 100 years in business. Department store giant Sears took over the space until 2017, when it met a similar fate and shut down. U.S.-based Nordstrom then took over until 2023, when it pulled out of Canada due to lagging sales. Gray says, starting in the 1990s, two big shopping trends aided the demise of the traditional department store: the growth of e-commerce and specialty shops. He says department stores allowed shoppers to browse a large selection of merchandise, and gave them access to coveted brands smaller stores didn't carry. But the emergence of online shopping allowed many brands to bypass department stores and sell directly to shoppers. It also meant Canadians could check out what's for sale without leaving their house. WATCH | Bay plans to liquidate, close all stores: Hudson's Bay plans to liquidate business, close all stores 1 day ago Duration 2:07 Hudson's Bay Company says it will start liquidating its entire business and begin the process of closing all its stores, pending court approval. The announcement comes just days after the company applied for creditor protection. "The idea of going to a department store and spending a couple hours just to keep current was completely irrelevant," said Gray, founder of DIG360 Consulting in Vancouver. "We stopped window shopping." The growth of specialty retailers — like Ikea for furniture and Best Buy for electronics — also hurt the omnibus department store. They got "kicked at by specialty stores… that did it better and offered better range, and better value, and better servicing," said retail analyst and author, Bruce Winder. He cites as an example Sears, which used to be a go-to place for appliances. "They were number one, right? And then Home Depot started eating their lunch," he said of the U.S.-based home improvement retailer, which arrived in Canada in 1997. WATCH | Simons opening stores while others shut down: Retailer Simons is opening stores when others are shutting down 9 months ago Duration 2:01 Winder says the versions of the department store that still thrive in Canada, such as Walmart and dollar stores, still appeal to shoppers because their varied goods are priced at a discount. "The concept of having many different categories under one store is not forbidden. It's not bad, but you have to have the right price point," said Winder. If you don't, he said, shoppers will trek to specialty stores where they'll typically pay more, but get added customer service. "At the Bay, if I saw a design from Gucci, well, I can just go to the Gucci store and get it," said Winder. "The expertise is better and the pricing is the same." Simons moves in Sometime this year, Quebec-based retailer Simons is set to move into part of that ill-fated empty space in the Eaton Centre once inhabited by Eaton's, then Sears, then Nordstrom. Retail experts predict Simons may have better success because, by selling only clothing and housewares, it's more of a specialty than a department store. Also, many items Simon sells are private-labels shoppers can't find elsewhere. The retailer's model is perhaps one traditional department store giants should have considered when they began losing shoppers. But, as Gray points out, it's hard to reinvent the wheel when when your model was successful for decades.
