35 replies to this topic

[VicHockeyFan]

So.... I was thinking today.  If you were going to open a new retail outlet downtown, what would be the best bet, in terms of what you sell, in order to insulate yourself from the move to online sales?

 

So I thought a list would be neat.  What would you be CRAZY to open, what would make sense.

 

 

 

Won't compete with online sales in the near to mid-term

 

Fast food, casual and upscale eat-in or take-out dining

Grocery stores

Gift and specialty stores in the top tourism areas, inside Empress Hotel etc.

Specialty, non-chain clothing stores

Traditional drug stores (ie. supplies, prescriptions etc.)

Custom or specialty and large furniture

Dollar stores

 

 

 

Is in potential decline due to online sales in the near to mid-term

 

Name brand clothing stores (?)

Electronics

[lanforod]

Go with omnichannel retail. Why stick with just brick and mortar?

[VicHockeyFan]

Go with omnichannel retail. Why stick with just brick and mortar?

 

Oh, I agree.  Even if you have no real technical skills, and you have a specialty items store, why, oh why would you not also list your items on EBay and locally too on UsedVic.  I mean I wonder if all the antique shops on Fort have all their items online too.

[jonny]

Pubs, grocery stores and "drug stores" won't be going online any time soon. We're a long ways off from buying beer, chicken and toothpaste online...

[VicHockeyFan]

Pubs, grocery stores and "drug stores" won't be going online any time soon. We're a long ways off from buying beer, chicken and toothpaste online...

 

I even wonder how many people order from the liquor stores downtown that deliver.  I bet the percentage is tiny.

[Nparker]

...Won't compete with online sales in the near to mid-term...

Dollar stores.

[jonny]

I even wonder how many people order from the liquor stores downtown that deliver.  I bet the percentage is tiny.

Coffee shops and bakeries are pretty safe too, IMO. I guess anything you ingest is relatively safe.

 

So much banking is being done online these days. I wonder if we'll start seeing branches close down any time soon.

Edited by jonny, 03 March 2015 - 11:19 AM.

[dasmo]

except my grocery store concept will kill B&M grocery anyway....

[GabriolaGirl]

Oh, I agree.  Even if you have no real technical skills, and you have a specialty items store, why, oh why would you not also list your items on EBay and locally too on UsedVic.  I mean I wonder if all the antique shops on Fort have all their items online too.

 

I used to sell antiques & collectibles on eBay along with my bricks & mortar shop on the mainland.  It has become very difficult to do from Canada.  The shipping rates are extremely high & your largest client base is in the US.  They don't understand why it costs so much or why it takes so long.  If Customs holds up their shipment for a couple of days, they will contest the sale & eBay will withdraw the sale from you, so you are out the item & the $.  Also as a seller you are constantly having to come up with new ways of marking your items so that someone doesn't buy your perfect condition item & send back their broken, chipped piece claiming that it arrived like that.  I gave up selling on eBay a long time ago.  

[Mike K.]

^yup, any commercial shipping from this country will make you broke quick or anger your customers. It's brutally expensive to ship out of Canada and even more expensive to ship across Canada. This is why so many businesses are securing space at fulfillment centres that ship their products on their behalf out of the US. It's the only way to remain competitive with the outrageous rates charged by Canada Post and UPS/Fedex.

[VicHockeyFan]

^yup, any commercial shipping from this country will make you broke quick or anger your customers. It's brutally expensive to ship out of Canada and even more expensive to ship across Canada. This is why so many businesses are securing space at fulfillment centres that ship their products on their behalf out of the US. It's the only way to remain competitive with the outrageous rates charged by Canada Post and UPS/Fedex.

 

Is there any upside, ie. can you serve Canadian customers better or cheaper than Canadians buying from US sites?

 

OK, what about cell-phone repair companies?  That's got to be a growth business.  I notice there is one here in town that's growing fast.

[dasmo]

So true Mike. Although our online business does fine because our product is niche and unique. The dollar drop has improved the situation....

[Mike K.]

Many American retailers won't even ship to Canada so that's an opportunity there, and now with the weak dollar buying from the US is less lucrative.

I just wish we didn't have such a bloated beast that is Canada Post. What literally costs $5 via UPS from the US will cost around $14 for Canada Post. It's nuts.

[jonny]

I have noticed more Canadian online retailers over the years.

 

Maybe 5 years ago, there was no way to buy motorcycle stuff online from Canada. I'm talking about jackets, boots, helmets, that sort of stuff. Now there are stores on eBay Canada and at least two other stand alone websites that offer rates competitive with US online retailers.

 

I got some stuff delivered to me from by Fedex a month or so back and just received an invoice for $144 from them for duty, taxes and brokerage fees. These fees and taxes totaled over 25% of the value of items I imported. Free trade - what free trade???

 

I bought some stuff from J Crew 's website a while back. They don't have a Canadian site, so I bought from their US site. They are happy to sell to Canada, but don't forget you have to pay duty and those prices are in USD. Oh, and shipping isn't free either.

 

It really shouldn't cost that much more to get stuff here vs Seattle.

[dasmo]

I think if you trace the family lineage of these companies you will find pirate outfits as their earliest beginnings... United Pirate Service... 

[VicHockeyFan]

The problem is your pay a brokerage fee just for the broker to certify that your item does not have a duty on it, determining its country of origin.  We need to get rid of the stupid border, for goods between these two countries.  

[sebberry]

With UPS, the brokerage fee is based on the value of the item.  No extra paper work involved, but you're perceived to be a bigger goldmine simply because your purchase is more expensive.  Fortunately anything above their standard shipping includes brokerage fees.  So while the shipping fee might be more, consider what you'd be paying for brokerage with the standard service.

 

Anyway, OT.

 

Services that cater to the people working downtown are the sorts of businesses I see surviving downtown.  Until you have more people living downtown, I don't see a healthy increase in retailers of trinkets and widgets.  And no, closing a road to cars isn't going to help. 

 

I think what downtown needs is more family-friendly entertainment venues.  Bowling, anyone?

 

 

There's still a lot of people who aren't comfortable doing things online.  I waited a good 15 minutes in the postal lineup the other day to drop off a package I paid to ship online.  Everyone in front of me either had letters or small packages for which they didn't set up a shipment online. 

[Mike K.]

You know what I always thought would be great, retail fronts for transport companies. Imagine if Harbour Air had a retail space on Douglas where you could hop in, ask questions, buy tickets, learn about tours, etc. Helijet would be an even bigger beneficiary since they're tucked so far away.

[VicHockeyFan]

You know what I always thought would be great, retail fronts for transport companies. Imagine if Harbour Air had a retail space on Douglas where you could hop in, ask questions, buy tickets, learn about tours, etc. Helijet would be an even bigger beneficiary since they're tucked so far away.

 

Or even a shared space, throw BlackBall in there too.   Hard to see how $300/day for a good salesperson and the space rental would be an extreme expense if you can sell 8 or 20 return seats daily.  It's a great day trip on any of them.

[Mike K.]

For sure it is. Like a food court for all transportation companies in the region. Helijet, Blackball, Kenmore, Clipper, Harbour Air, even Harbour Ferries and Wilson's.