Sears Canada Inc. (TSX:SCC) posted a 125.6% net loss in Q3 2016 as compared with the same quarter in 2015, according to their latest financial statement located in their Third Quarter Report.

In an email exchange, however, Jim Danahy, CEO of CustomerLab, says this net loss “this is not a one quarter blip”, and this recent decline has been a long time coming.

But, there are many notes at the beginning of the Management Discussion and Analysis document that account for this loss within the last two years in the same quarter. Vincent Power, Vice-President of Corporate Affairs and Communications at Sears Canada emphasizes that these notes are “in themselves cautionary notes, highlighted as potential risk factors that are put in every statement”.

A few factors among these cautionary notes indicate that Sears Canada failed to innovate in the face of change.

In November 2015, Sears Canada lost their ten-year agreement with JPMorgan & Chase and as a result offered many promotions for customers before the contract ended. Since Sears Canada’s finance company changed to Easyfinancial and its parent company GoEasy, the promotions that Sears Canada offered in the third quarter of 2015 were not available in 2016’s Q3, accounting for a greater net loss when both Q3s are compared with each other, said Power. As such, in 2016’s Q3 there were was less incentive to purchase big ticket items such as appliances, and charge it to the Sears Card to avail of promotions.

Tied into the loss of the Sears credit card backed by JPMorgan and Chase was changes to the Sears Club program, another factor to account for the net loss in 2016’s Q3 as compared with the same quarter in 2015. Under the previous card, enrolment in the Sears Club loyalty program was automatic when a customer applied for the card, and when they used the card at Sears or at other retailers. Under the new financing program, Sears Club became a stand alone program that a consumer had to enroll, independently, thus resulting in the inability to attract and retain customers in the loyalty program.

Ken Wong, Associate Professor & Distinguished Professor of Marketing at the Smith School of Business at Queen’s University unpacks the lack of innovation with regards to the Sears Club program. With a loyalty program a company can “track future purchases based on past purchases” and if fewer customers are active and loyal to the program, this doesn’t give Sears Canada any “market research or individual customer data on how to move forward”.

Their Third Quarter Report also mentions their their delay in moving their catalogue customers online, and also the delay in developing and implementing their e-commerce platforms. With their catalogue legacy, in place since 1953, Sears Canada had the infrastructure set up to move seamlessly to e-commerce, as they already had the environment where consumers didn’t have enter the brick and mortar store to buy their goods – they could buy from home, have the product shipped directly to their home or even pick up in store.

Wong articulates that “catalogue business is the kissing cousin of e-commerce. Sears was positioned for greatness in the world of e-commerce and online shopping. All they had to do was automate, and they didn’t”.

Power also mentions their loyalty to their catalogue customers, but highlights these clients tend to fit an ‘older demographic of empty nesters’, who may not need to by big ticket items like appliances with the same frequency as young families who are in the process of building a home, and shopping online.

Sears Canada’s Third Quarter Report for 2017 will be released on October 21st, 2017.

Sears Canada Inc. Stock Prices by Saalem on TradingView.com

Source: TradingView.com

ORIENTATION PILOT PROGRAM FOR REFUGEES REINFORCES COMMUNITY CONNECTIONS

What’s new:

WorkSafeBC developed a Syrian worker orientation pilot program along with the SUCCESS multicultural organization and promoted it during a Refugee Response Team meeting in Vancouver, British Columbia in May 2016, according to documents obtained through the provincial Freedom of Information and Protection of Privacy Act from the Ministry of Jobs, Tourism and Skills Training and Minister Responsible for Labour of British Columbia.

Why it’s important:

The meeting agenda shows that WorkSafeBC encouraged local immigrant organizations who attended the meeting to adopt and deliver the meeting. This is important and helpful because it shows the value of partnerships between a health and safety regulator like WorksafeBC and local community organizations.

Scott McCloy, Director of Government, Community and Media Relations with WorkSafeBC, emphasizes their role a regulatory body independent of the provincial government. McCloy also highlights that community organizations have local expertise with regards to individual client requirements and are able to connect and communicate directly to their clients in Arabic to inform them about the workshop. In these preliminary stages, the aim of the pilot program is to make work-ready Arabic speaking immigrants, including the large influx from Syria, “aware of their rights as employees and employers”, according to McCloy.

What the government says:

The Ministry of Jobs, Tourism, and Skills Training was contacted eight times by email and telephone when asked about their role in orientation programs for new Syrian refugees. In an email from Sheldon Johnson, Communications Manager, the Ministry referred back to WorkSafeBC, as “WorkSafeBC is entirely independent and industry funded. Therefore they really are the best people to talk to about their program.” When asked again regarding this Ministry of Jobs, Tourism, and Skills Training’s specific role with regards to orientation programs for new immigrants in terms of workshop conception, development, monitoring and evaluation, including programs for Syrian refugees, they did not reply.

What others say:

The Immigrant Services Society of British Columbia did publish a poster online advertising the workshop. However, Jennifer York, Senior Manager of Settlement Services, emphasized that facilitators contacted their clients directly to advertised the program. She also mentioned that each facilitator tailored the workshop to their clients’ needs, and that two workshops were delivered in English with a translator and one facilitator delivered the workshop in Arabic, which had the most attendance. The workshops, while geared for Syrian refugees, were also attended by participants from other parts of the Arabic speaking world, such as Iraq, and included cultural sensitivities: the facilitators outlined differences in working culture between the participants’ home countries and British Columbia.

York also highlighted the benefits of delivering the workshop in Arabic as well as with an English interpreter. Delivering in both languages at different times allows them to reach more people. Also, providing the program in Arabic creates a more comfortable environment where attendees tended to ask more questions and engage more. On the other hand, delivering the workshop in English served as another teaching method, as participants were able to learn specific terms about their safety and rights as employees in their mother tongue, as well as their language of work.

What’s next:

WorkSafeBC will evaluate the pilot program in June 2017 based on the survey data they will receive from the community organizations that delivered the workshop. This data will dictate future steps and how to improve the program, according to McCloy, and shape the program’s scope and content in the future.

York says that this particular program is ideally tailored for Syrian refugees, but was also attended by other Arabic speaking participants from other parts of the world, including Iraq. York emphasizes that in the future, it would be useful to be provided with programs that would benefit all the groups they service, not only Syrian refugees.

A community situated in the northwest corner of Cumberland Ward underwent one of the largest population changes in the National Capital Region according to analysis of the latest Census data tracks for 2016, released in February 2017. Since the last Census data was collected in 2011, Avalon has demonstrated a %79.9 increase in residents over the five-year period.

Source: Statistics Canada

Stephen Blais, Ottawa City Councilor for Cumberland, mentions the appeal of Avalon is present in many accessible services, notably for families, as this is the demographic that gravitates to Avalon the most. “The area is serviced by two large community centres with programs for families, Francois Dupuis and Ray Friel”. The Francois Dupuis Recreation Centre, which opened in 2013, is located right in the heart of Avalon, and “is expanding to include a full gym and multipurpose room”, according to Blais.

Another draw the for the area, according to Blais, is that the Ray Friel Recreation Complex, built over 25 years ago, also services the area and includes a wave pool, weight room, cardio room, the ice rinks and a library.

While these services may be available in other areas of the city, there’s something about Orleans that encourages people to come back. Blais mentioned that when he looks at his high school yearbook, he notices that between 2/3 and ¾ of the people have left Orleans or Ottawa, but when it came time to have a family and settle down, they’ve come back to Orleans.

Christine Groleau, General Manager at Tumblers Gymnastics Centre, mentions what’s really unique about Orleans, and also why Avalon would be such an attractive place to live as one of many locations to return to. She’s lived in Orleans since around the mid-1970s, and although it’s growing, it still feels the same as back then, she says. “People help each other, and there’s a strong sense of community. It hasn’t lost the village feel”.

Tumblers responds to the growth in Avalon, while still retaining this village feel. The space serves as an anchor point for the community, and functions as a social hub, where people can “socialize, have coffee, meet other people and form social support networks”, according to Groleau.

This business model has proven to be successful. When I arrived during one of the casual drop in sessions on a Saturday night, it was evident that people most of the people already knew each other. The employee working at the front counter greeted many people by name, and parents as well as children made small talk before heading into the gym to roll and tumble. Parents chatted with each other while their children long-jumped in the gym.

The centre works well in this regard, ensuring a welcome and inclusive atmosphere. Programs range from competitive to recreational, and membership is around 2000. However Groleau emphasizes the focus is on recreational programs and creating a community hub. Out of the 2000, only about 130 members are “competitive who go for tryouts”. For those who don’t wish to enroll, there are drop-in times for families, to pay as you go for free play; and adding to this sense of inclusivity, the offers bilingual programs, recognizing the needs of the area’s Francophone and Anglophone populations and during the drop-in session, English and French mix well among the ambient sound of laughter and play.

©Saalem Humayun

Tumblers looks forward to moving to a new location in the near future. Black Sheep Developments, with Bruce Firestone on the team, is planning a new sports centre on Mer Bleue Road between Innes Road and Brian Coburn. The new centre, designed by Louis Cardinal, will feature Tumblers as one of its main anchor tenants, to continue to address the area’s growth. Groleau, smilingly, looks forward to the new space, expected to open by summer 2018 or January 2019.