My Year End Predictions For Retail
With the death of Sears Canada, had become obvious that retail is changing way quicker than anticipated by economists.
Back in the 90’s, I suspected something was going on in the industry because one of the stores I had expected to have a future went under a few years after I had left the company.
Consumers Distributing was a chain of stores in Canada and the United States that operated with catalogs like Sears but dedicated only a small portion of their retail space to displays at all of their stores. And most of their merchandise could be found stacked on shelves the back of their outlets, which were brought forward by associates to the consumer, who chose their products from catalogs located in the retail space.
Had they survived into the 2000’s, I suspect they would have progressed from their six-digit catalog system, where people physically presented order slips to an order desk or called an order in using their credit cards, to a touchscreen system that simply gave consumers an order number. And I suspect Amazon would have simply purchased the company, automating the warehouse space further.
Unfortunately, the 212 store chain went under because Sears Canada had a foothold in the catalog market and it just could not survive both the recession of the time and Walmart’s expansion into the Canadian market. But I suspect Amazon may have a limited number of retail outlets that closely resemble Consumer’s Distributing stores in the future, where people could place orders and pick up purchases 24/7 from coded lockers.
Amazon Pickup Point locations already exist in Canada and the United States. And I believe they will likely expand these to Whole Foods locations, a chain that was recently purchased by Amazon.com, creating one stop shop locations in the major cities.
I’m personally hoping they’re going to convert my local Sears Home store here in Western Ottawa to a Whole Foods/Amazon outlet. But I doubt they will consider taking over that many Sears retail stores because the large department store format is pretty much dead.
Consumers are previewing merchandise online so retailers will not need to provide as many displays as they did before. And with 3D technology, I suspect people will scroll through merchandise on virtual reality headsets with customized 3D imagery before 2020.
Optometrist retailer sites already offer services in which people can place frames on their faces and all one would need to do in the very near future is to provide their measurements for virtual models, who would wear clothing for consumers to preview.
Norstrom currently offers a service where clothing is set aside for people to try out and I suspect other stores will offer this convenience shortly through their website, with the aforementioned virtual modeling. And I wouldn’t be surprised some stores would offer perks like high-end coffee and/or liquor through these services as well.
In regards to drones and self-driving vehicles, I don’t know if drones would be the best choice for our weather.
Not only does it get quite cold in most of Canada’s major cities during the winter, it also gets quite windy.
Those who have tried to take digital photographs in the cold here can attest to issues related to draining batteries and I’m sure that drones would be constantly slammed on the side of buildings and into trees by the wind in my suburb. We even get the occasional microburst here.
Self-driving vehicles are currently being tested in my community and I’m expecting pizza/food delivery to be the first service in my area to take advantage of this new technology. But I doubt I’ll be seeing drones delivering goods in my area before 2020, especially fragile items.
The Transport Canada regulations to fly drones are quite tight and I believe we are more likely to get deliveries from our grocery stores and pharmacies in normal vehicles for quite some time. Several of my local grocery stores have only recently started offering click and collect services.
I personally don’t see many advances in music retail either.
As you may or may not know, I had originally wanted to have a career in music retailing. But when the MP3 came along I knew stores would likely go online.
Vinyl sales will continue to expand slightly until higher resolution recordings become the norm and offer the depth of vinyl. And High Definition radio will eventually become the norm, requiring consumers to purchase equipment to listen to the higher resolution recordings, although most stations will likely continue to broadcast in FM and simply include high definition recording data on the same signal.
I don’t believe Canada will follow Norway’s example and go all digital because we haven’t gone all digital when it comes to television in the minor markets. And the government will probably want as much access to Canadians as possible for emergency and weather-related broadcasts so I won’t personally be purchasing an HD radio compatible device for some time.
Even if I wanted to purchase a receiver now they’re over $100 at the moment and there are only three of four HD radio stations in my city. It just isn’t a priority for most and will not likely be until well past 2020, although virtual reality multi-cam live concerts could be a “thing” soon.
4k cameras are getting incredibly compact and can be placed in multiple discrete locations at venues, enabling broadcasts to fans via the internet now. Mostly static front row, mezzanine, and other multiple angle shots but we can just imagine what they’ll be able to do soon with VR headsets. 360-degree 4k live shots of entire performances from the front row or stage, perhaps?
I don’t expect everything to happen next year but it’ll be quite interesting after 2020.
Canada Post & Vinyl LPs
It appears that Canada Post may have decided to classify record LPs as fragile items, in essence removing their liability as per their section 12.1.2 (c) of their General Terms and Conditions :
“Canada Post shall have no liability for damage of shipments containing Fragile Items. Fragile Items include but are not limited to ceramic, glass, porcelain, mirrors, crystal, pottery, china, perishable items or items requiring refrigeration or temperature-controlled transportation.”
I have personally never received broken LPs by mail, having last received a rape LP in the summer. But this causes me to be a bit nervous, although i’m sure most retailers will do their best to package vinyl correctly.
I guess I would suggest that you choose a courier other than Canada Post/Xpresspost or Purolator when shipping rare items that are fragile. The later also has a policy removing liability on fragile items and “Collectors’ items”.
Federal Express will insure collectible items up to $100 according to their policies (pdf) and UPS will require prior approval on these items. But shipments originating from the United States may have better coverage through these services so you might want to investigate your options when you order vinyl records and collectibles from abroad.
Net Neutrality Still Under Attack
It appears that Americans will have no choice but to subscribe to services dictated to them by their internet providers. And that Canadians will be up for a fight to retain fast access with the states.
That’s right, not only are these Americans limited in regards to their choice of internet providers but these providers will be able to throttle sites that compete with sites they own or have business relationships with, which include Canadian sites.
Although this is being sold as an improvement to the internet by the Federal Communications Commission in their official November 21st, 2017 statement (PDF), most experts know that this is yet another call for deregulation, a process that eventually results in parties imposing themselves on the consumer, without a means for the consumer to defend himself/herself.
In this statement, the FCC claims “the FCC would simply require Internet service providers to be transparent about their practices so that consumers can buy the service plan that’s best for them and entrepreneurs and other small businesses can have the technical information they need to innovate” yet nothing is mentioned about the lack of competition is some states or the possibility of fees being placed on accessing certain sites like Netflix, iTunes or even Amazon.com, who also stream content to Americans.
The bill itself calls for the US Government “to prohibit the Federal Communications Commission from reclassifying broadband Internet access service as a telecommunications service and from imposing certain regulations on providers of such service” with no information on how it proposes to regulate internet providers that currently hold a monopoly on high speed internet access in some areas or how it would prevent some internet providers from blocking certain competitors or redirecting traffic to their sites.
As Canadians we should also be conserved about these content providers because whatever happens in their primary market can determine how much we pay for their services here. And it appears that quite a few of the content providers are spending considerable amounts fighting the so called “Restoring Internet Freedom Act” because it hinders not only their freedom but the freedom of their customers.
In what way is the average consumer having his or her freedoms hindered by net neutrality ?
The claim that access is being withheld because internet providers are unable to fund their infrastructure is made dubious by the amount of profit these companies release every quarter. They can easily afford expanding but won’t because they want to re-direct their customers to more profitable in house services, whose cable television services have been suffering because of the new content providers.
In other words they’re asking the FCC to give them their cable television customers back by enabling them to throttle and block their competition, which could easily include streaming broadcasts from television networks they do not own. This is a rather vague, slippery slope situation that could be so litigious as to cause subscription fees to skyrocket beyond the inflation rate. And the North American Free Trade Agreement talks won’t help either.
If you have American friends, please encourage them to visit Open Media and to contact their local representatives in regards to this issue.
Thank you.
The Best of French Canadian/Quebecois
This month a Universal Music compilation celebrating Canada’s 150th was released. But unfortunately, it didn’t include one French song and many complained that it should at least include a few. This Spotify playlist includes the songs I would have considered had I compiled this CD set :
I’m sure I forgot a few but I’ll add them to the playlist later. Enjoy.
Net Neutrality Simplified
Imagine this situation – You want to rent a blockbuster and your internet provider’s film rental site offers this film for $6.99 in HD whilst another film rental site offers it for $4.99, also in HD. And thinking that because they’re both listed as HD you rent from your internet provider’s competitor only to notice pixelization caused by slow download speeds.
Now imagine you’re completely fine paying more to rent films and one day hear about this great flick that everyone’s raving about on the internet. But you can’t find it on your internet provider’s film rental site and have no choice but rent it from one of your internet provider’s competitors, subjecting yourself to the aforementioned issues.
This would be the norm if net neutrality was abolished.
Internet providers with a larger market share would use this status to demand payment for access to their customers and would shut out film rental companies that didn’t pay up, including the companies set up by their competing internet providers.
You’d be at the mercy of media conglomerates fighting each other, as they hinder the speeds of each other’s services and fight for the exclusive rights to certain films, music, and services.
You’d have dropouts whilst streaming and slow transfer issues accessing your own files on cloud services because these services didn’t pay up or is owned by the competitors of those that did. And this would only get worse when you’re on the go and use wi-fi services from different providers at your favorite hotspots.
Seriously, travelers would also see their speeds drop if they happen to choose an American hotel whose internet is throttled, especially when they throttle sites on which operating system and security software updates are hosted.
They’re not lowering their prices, they’re making it harder for people to access services that do and making content providers pay to access their share of the market, in many cases resulting in a reduction of royalties for artists, composers, writers, etc. And who knows if publicly funded internet like those at public libraries will be subject to internet traffic management practices?
How exactly is this progress?
As it stands, Net Neutrality in Canada is supported by the Canadian Radio and Telecommunications Commission, several last mile internet providers and three political parties, the Liberals, NDP and Green Party. And both Rogers and Bell made statements that they would end throttling in late 2011 and early 2012.
Netflix is currently keeping track of the speed of our internet providers accessing their services and publishing their results on their Netflix ISP Speed Index site and I’m guessing if push comes to shove more of those sites will appear.
Hopefully, the internet providers in the states will figure out this is all counterproductive because people that eventually find out that they’re being throttled needlessly get more demanding and all it takes for their competition to nab their customers are anti-throttling policies.
Canada Day – Recommended Reading
It’s Canada’s 150th and Montreal 375th anniversary this year so I thought I’d recommend some of my favorite Canadian music history books:
– “Oh What A Feeling – The Next Generation” by Martin Melhuish
Originally released in conjunction with a four-CD compilation to commemorate the 25th anniversary of The Juno Awards, “Oh What A Feeling – A Vital History of Canadian Music” featured a year by year chronological account of Canada’s music history as well as information on the Juno Awards from 1971 to 1996.
“The Next Generation” is an updated version that was released in 2014, with additional information relating to upcomming artists, notable births and deaths, Hall Of Fame inductees and Juno Award Winners. Available from Amazon.ca / Amazon.com / Chapters-Indigo
– “Music From Far and Wide” – by multiple authors
This official Canadian Academy of Recording Arts and Sciences book was released in 2010 to celebrate the Juno Award’s 40th Aniversary and provides an in-depth history of the organisation and creation of the Juno Awards, with a list of Juno Award winners up to 2010 as well as a listing of Board of Directors from 1975 to 2010.
This book can be found at some local book stores, at Amazon.ca and Amazon.com.
– “Is This Live?” by Christopher Ward
As the Nation’s music station, Much Music had been the epicenter for music in Canada from the mid-1980’s to mid-1990’s. And this book by VJ and songwriter Christopher Ward not only discusses the history of the station but makes notes of many events that occurred at the infamous 899 Queen Street West.
This is a must for Canadian fans of 80’s music. Available from Amazon.ca / Amazon.com / Chapters-Indigo
– “Canadian Pop Music Encyclopedia” by Jaimie Vernon
Originally released as the “Encyclopedia of Canadian Rock Pop & Folk Music” in 2004 by Rick Jackson, this artist by artist account of Canadian music history has now become a multiple volume compilation, the first two listing artists alphabetically from “A Thru K” and “L thru Z“, respectively, and a recent celebration of the country’s “Vinyl Years“.
Published in 2011, the first two volumes include information on specific artists (brief history and discography) up to 2010 whilst the third volume concentrates on artists whose vinyl releases were popular up to 1996. All three volumes are available from Amazon.ca and Amazon.com.
– “Top 40 Hits” / “Top Albums” by Nanda Lwin
These reference guides list the chart activity of domestic and international artists in Canada up to 1999 for singles and 2003 for albums. These are of course a must for people who are interested in Canadian music history and altough they are out of print, you can still find “Top 40 Hits” at Alibris, Amazon.ca and Amazon.com. And other chart information can be obtained from the RMP database on Library and Archives Canada and from a blog simply entitled “Canadian Music Blog“, which also contains a wealth of chart information including the best selling singles and albums by year and decade.