HOURLY LABOUR MARKET INSIGHTS - MARCH 2015 EDITION - Mindfield
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HOURLY LABOUR MARKET INSIGHTS MARCH 2015 EDITION
HOURLY LABOUR MARKET INSIGHTS
MARCH 2015 EDITION
This report is primarily focused on the hourly labour market in North America, giving an overview of key trends, insights and
news articles surrounding this segment.
At the end of 2014, Canadian consumer debt was reported to have increased to $1.529 trillion, with the average
Canadian debt sitting at $20,967. In the first quarter of 2015, big box retailers such as TJX, Target and Walmart
announced increases to their minimum wage rates.
The Bureau of Labour Statistics released a report this month showing 4.3% of hourly workers in the retail trade earn
$7.25 per hour, which is the federal minimum. In comparison, 19% of hourly workers in the hospitality sector,
including food and accommodation, are paid $7.25 an hour or less. In Canada, the province of Ontario announced a
minimum wage increase from $11.00 to $11.25 starting in October. This increase places Ontario as the second
highest minimum wage rate in the country.
This month, two noteworthy Executive changes include Thomas Haig, COO at Danier Leather, moving to Giant Tiger
as COO, and Mario Grauso, President at Loblaw, transitioning to takeover Joe Mimran’s role with the Joe Fresh
brand.
EXPANSION
Quebec-based women's jewelry
CST Brands Inc., parent company of
brand, Bizou, is looking to grow their
Corner Stores, plans to open up to 40
retail reach from 120 stores by an
stores in the US and 12 in Canada this
additional 5 locations in Canada this
year.
year.
Grocery giant, Loblaw, announced it Fresh Market Inc. will close all stores
would invest $1.2B to build 50 new in California by March 31st, but plans
stores and remodel over 100 existing to open up to 19 stores concentrated in
stores this year. the eastern half of the US this year.
Women's fashion retailer, Juicy North West Company plans on
Couture, has international expansion investing $150M over the next 3
plans to open 133 stores over the years to increase the number of
next 5 years. Increasing their total stores they have and help create
store count to 335 by the end of 2020. 125+ permanent jobs.
Discount retailer, Dollar General, Fashion retailer, Express, looks to open
plans to add 730 locations this year over 100 new outlet stores in 2015 that
to remain competitive after Dollar focus on offering lower-priced items.
General and Family Dollar's recent
merger.
Sporting goods retailer, L.L. Bean, Designer Shoe Warehouse exceeded
will open 4 locations in the US this profit expectations in their last quarter
year with plans to expand to 100 and plans to open up to 35 locations in
stores by 2020. Each store will 2015.
require 80-130 employees.
HOURLY LABOUR MARKET INSIGHTS
MARCH 2014 EDITION !
Canadian retailer, Ingledew's Shoes, Coffee powerhouse, Starbucks, will
opened up a flagship location in expand globally with over 3,500
Vancouver to celebrate its 100th locations set to open in the Americas
anniversary. over the next 5 years.
Swedish fast fashion retailer, H&M, is GEOX will open 7 Canadian
expected to open 400 stores this year. locations this year, 3 of which will
A majority of them will be in China, be new stores and 4 store
with some store openings in the US. overhauls.
GameStop is looking to expand Benefit, an American cosmetic, salon
their technology brand segment by and spa services company plans to
350 locations, but plans to close open their first free-standing
around 200 of its 6,000 GameStop Canadian location this April. They
video locations this year. currently have 58 locations and
employ over 3,000 employees.
The Vancouver fashion retailer, Kit
& Ace, is set to add 10 more
locations in both Canada and the
US this year.
RETRACTION
Chico's, women's fashion retailer, will Due to poor expansion timing, Cache will
close 120 stores and cut 240 jobs by be shutting all 300 stores by May 31,
2017. Thirty-five of those locations will 2015. This women's fashion retailer has
be closed within 2015. started liquidating sales.
After experiencing a lost of $206.5M,
The Children's Place sped up their
the American teen fashion retailer
store closures to 200 stores over
Aeropostale is considering to close
the next 2 years. The clothing
50-75 stores this year.
retailer reported a 7% net income
increase to $56.9M for the full fiscal
year.
The supermarket chain, Fresh &
Foot Locker will close all of their
Easy, will close around 30% of
213 Lady Foot Locker stores in the
their stores. These 50 stores are
next 3 years. However, the
across California, Nevada and
footwear and apparel retailer will
Arizona. Remaining stores will be
be launching their own women's
redesigned.
yoga apparel brand.
Future Shop is an electronic retailer
that plans to close 66 stores and
convert remaining locations to the
Best Buy brand. This will affect 500
full-time and 1,000 part-time
Canadian employees.
HOURLY LABOUR MARKET INSIGHTS
MARCH 2014 EDITION !
ACQUISTION
Alimentation Couche-Tard acquired Versa Capital Management won the bid
over 1,500 locations across 13 states to purchase the bankrupt teen clothing
from The Pantry Inc. This takeover retailer, Wet Seal for $10M. Versa will
between the convenience store take over the chain's 140 locations.
operators amounted to $1.7B.
Heinz Co. acquired Kraft for $10B and La Vie en Rose has signed to
will have their headquarters in acquire swimwear retailer, Bikini
Pittsburgh. This will affect around 750 Village. This will keep their 48
full-time employees in Canada. Canadian locations open and
preserve over 400 jobs.
Aldi Inc. has bought 66 Bottom Dollar
Food stores from the Delhaize Group.
The global supermarket chain has
aggressive expansion plans and looks
to operate 2,000 locations by 2018 and
create 10,000 new jobs.
DOWNTOWN
Target Corp. is trying to restructure
The Second Cup Ltd. experienced an
and aims to decrease costs by $2B
annual loss of $27M last year. Total stores
over the next 2 years, which will affect
dropped to 347 from 356 cafes earlier in
thousands of jobs. Layoffs will
the year.
primarily take place at the corporate
headquarters and in India.
Staples Inc.'s sales fell for the 8th Due to increased freight costs and
straight quarter and is trying to promotional activities, Ann Inc.
finalize their acquisition of Office experienced a 94% drop in profit in Q4.
Depot for $6.3B to compete against The women's clothing retailer's net
big box retailers like Walmart and income dropped to $262,000 from
Amazon. $4.68M in the same quarter last year.
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