Connect with us

Business

IKEA to close London pickup store at month's end – The London Free Press

Published

on


The Swedish home furnishings giant is closing its London pickup store, along with others in Ontario, it said Monday in a news release.


AFP/Getty Images


Ikea’s London experiment is over.

The Swedish home furnishings giant is closing its London pickup store, along with others in Ontario, it said Monday in a news release.

The London store opened in 2015 “as part of a global test” to learn more about how customers shop and “we gathered many valuable insights which will inform how we continue to evolve and adapt as a business,” read a statement from Ikea spokesperson Kristin Newbigging.

Now, however, the retailer will close pickup and order point stores in Kitchener, London, St. Catharines, Whitby and Windsor at the end of this month.

“We appreciate the support we’ve received from these communities over the past several years and we remain committed to serving them in the best possible way,” said Newbigging.

It cited “urbanization, technology and digitalization” as reasons for the closings and hinted it will have more of an online presence, saying it will “explore new solutions with a focus on enhancing our digital tools and improving our local service offer.”

With pickup points closing Jan. 29, the last day for customers to order is Wednesday.

In 2017 Ikea announced it planned a full-service store in London, south of Highway 401 and Wellington Road, near the Costco store. It owns a parcel of land next to Costco.


Then-London mayor Matt Brown and Stefan Stostrand, president of Ikea Canada, along with staff at London’s new pickup point, celebrate the opening of the outlet on Wonderland Road South on Dec. 2, 2015. (Free Press files)

JANE SIMS /

JANE SIMS

“We can confirm we do have a purchase agreement for the site. As you know, we had previously announced plans to delay the London store project. At this time, we have no additional updates to share on the status and that project is unrelated to the decision to close the pickup and order points,” said Newbigging.

Ikea cancelled the plan for a full-service store in 2018, amid suggestions the push to online sales with Amazon and Wayfair had changed the retail landscape.

“As we all know, we are in a rapidly changing retail environment. At Ikea in Canada and globally, we are transforming our business to ensure we are fit for long-term growth,” Newbigging added. “This includes shifting expansion plans, exploring new formats and investing in e-commerce and services.”

“We still see potential in the London market and we are committed to keeping the city and community updated on plans as we evaluate the best solution for the market.  In the meantime, our focus today is on enhancing our digital tools.

The London store was supposed to be part of Ikea Canada’s shift in smaller markets. Ikea opened stores in Halifax and Quebec City.

The nearest Ikea to London is in Burlington.

Parcel and home delivery options will still be available.

At the pickup store customers were able to get the home furnishings they had ordered online.

Let’s block ads! (Why?)



Source link

Business

Canada adds 950K jobs in June, unemployment falls amid coronavirus pandemic – Globalnews.ca

Published

on


Statistics Canada says the economy added nearly one million jobs in June as businesses forced closed by the coronavirus pandemic moved to reopen.

The agency says 953,000 jobs were added last month, including 488,000 full-time and 465,000 part-time positions.

Read more:
Need a job? Here’s who’s hiring right now in Canada

The unemployment rate fell to 12.3 per cent in June after hitting a record-high of 13.7 per cent in May.

As in May, even though more people found jobs, more people were also looking for work.






4:27
Canada’s $343 billion-dollar economic dilemma


Canada’s $343 billion-dollar economic dilemma

The average economist estimate for June had been for an addition of 700,000 jobs and the unemployment rate to fall to 12.0 per cent, according to financial data firm Refinitiv.

Story continues below advertisement

Statistics Canada says the unemployment rate would have been 16.3 per cent had it included in unemployment counts those who wanted to work, but did not look for a job.

© 2020 The Canadian Press

Let’s block ads! (Why?)



Source link

Continue Reading

Business

DavidsTea to close 82 Canadian stores amid coronavirus pandemic – Global News

Published

on


Insolvent beverage retailer DavidsTea is closing 82 stores in Canada and all 42 of its stores in the U.S. as it focuses on its e-commerce business and supplying grocery stores and pharmacies.

The Montreal-based company announced Thursday that it is sending notices to terminate the leases at the 124 stores to take effect in 30 days. The move would affect about half of its workforce of nearly 2,500, including all 366 employees in the United States.

It will also seek more favourable lease terms for the remaining 100 stores in Canada and may permanently shut additional locations if landlords are unwilling to negotiate suitable leases.

Read more:
DavidsTea files for bankruptcy protection while negotiating with landlords

It had warned in mid-June that it could begin a formal restructuring depending on the outcome of its talks with landlords.

Story continues below advertisement

The company said at the time that it hadn’t paid rent on any of its stores for April, May and June.

The store closures are part of its restructuring plan after it obtained court protection from creditors under the Companies’ Creditors Arrangement Act and Chapter 15 in the United States Bankruptcy Court for the District of Delaware.

“With the upcoming closure of 124 unprofitable stores across North America, we are certainly making good progress in creating a stronger business model for the future and ensuring the long-term success and sustainability of DavidsTea and our beloved brand,” company founder and interim CEO Herschel Segal said in a news release.






3:14
$343-billion deficit projected for 2020-2021 fiscal year


$343-billion deficit projected for 2020-2021 fiscal year

Chief financial officer Frank Zitella said that with the closure of “a significant number of money-losing stores” it will focus exclusively on e-commerce sale which had a penetration rate of close to 43 per cent in the market before COVID-19.

Story continues below advertisement

“All 100 remaining DavidsTea stores have been closed since March 17 due to the COVID-19 pandemic and will remain so until further notice,” he stated.

DavidsTea last month reported that it lost $23.2 million last year on $146.5 million in revenues. That includes a US$4.3 million loss in its fiscal fourth quarter on US$54.8 million of revenues.

The move by DavidsTea comes three years after Starbucks announced the closure of all of its Teavana brand stores. The coffee giant acquired Teavana Holdings in 2012 for US$620 million.

© 2020 The Canadian Press

Let’s block ads! (Why?)



Source link

Continue Reading

Business

Crude Oil Shortages Beginning To Bite In Key Markets – OilPrice.com

Published

on



Crude Oil Shortages Beginning To Bite In Key Markets | OilPrice.com

Alex Kimani

Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com. 

More Info

Trending Discussions

    Premium Content

    Europoort Refinery

    Last monthOPEC and its non-OPEC allies, known as OPEC+, agreed to extend their deep production cuts through July in an effort to rebalance oversupplied markets in the face of pandemic-hit demand. The cuts were supposed to take ~10% off the markets with July’s cut clocking in at 9.6 million bpd.

    But now there are signs that the pendulum could have swung a bit too far, with the markets beginning to experience shortages of key crude grades.

    There are growing signs that the markets are undersupplied with Urals and Arab Light thanks to continuing deep production cuts as well as a rebound in demand by key customers such as China and Northern Asia.

    The price of Urals, Russia’s flagship grade, has flipped to record premiums to the Brent crude benchmark, briefly changing hands at $2.40 a barrel above Dated Brent last week to reflect the undersupply. 

    That marks a sharp turnaround compared to a discount of more than $4.50 a barrel recorded in April. Urals for delivery to Rotterdam, the main oil refinery hub in northwest Europe, were selling at a premium of $1.90 by the end of June, matching a prior record high. This, in effect, means that Rotterdam Urals were selling at ~$45 a barrel, a far cry from the $15 a barrel they commanded in early April.

    Oil markets in backwardation

    A similar pattern is being observed for other sour crude grades, which are commanding premium prices even with global oil demand still 10% below normal levels.

    Under ordinary circumstances, medium-sour crude that Saudi Arabia and its OPEC partners pump is usually cheaper than light sweet crude with a lower sulfur content. However, OPEC, which mostly pumps medium-sour crude, has dramatically cut output to its lowest level since 1991. Further, Iran and Venezuela, which also supply medium and heavy sour crude, have both seen production severely curtailed due to U.S. sanctions as well as a lack of investment.

    Consequently, Saudi Aramco has been able to raise the price of the crude it sells to refiners for three months in a row. And now for the first time ever, Aramco is selling its most dense crude, known as Arab Heavy, at the same price as its flagship Arab Light, a clear indication of strong demand for medium-heavy sour grades. Under normal circumstances, Arab Heavy sells at a discount of $2-to-$6/barrel to Arab Light. Related: Big Oil’s Investment Risk Is Spiking

    To make matters even more interesting, medium-heavy sour crude for immediate delivery is commanding premiums to forward contracts, a situation known as backwardation. That’s a 180-degree turn from the situation just two and a half months ago when oil markets were in deep contango, meaning forward contracts were selling at a big premium to near-term contracts.

    Production cuts working

    CME data shows that oil futures in general are beginning to flirt with backwardation— a positive sign for oil markets. Back in May, the markets were in super-contango with futures for June delivery trading at just half the value of January 2021 futures; the situation is far less dramatic with futures for August delivery trading at $40.90/barrel compared with $41.54 for January 2021 futures.

    These data sets are encouraging signs that OPEC+ members could largely be sticking to their pledges. Last month, Saudi Arabia and Russia warned members of the cartel that there was no room for noncompliance whatsoever after May compliance clocked in at just 74% of agreed cuts. Notably, Iraq cut just 38% of its promised cuts while Nigeria fared even worse, cutting a mere 19% of its commitments. That said, the importance of dramatic cuts by U.S. producers cannot also be overstated. In May, Reuters reported that North American producers were on course to cut 1.7 million barrels per day by the end of June with the U.S. Energy Secretary Dan Brouillette estimating that U.S. production would drop by 2 to 3 million bpd by the end of the year.

    But more importantly, the latest oil price trends are confirmation that, indeed, the production cuts are working as intended by helping to rebalance the markets.

    The coronavirus pandemic has caused global oil demand to fall off a cliff, with U.S. consumption falling to levels last seen nearly four decades ago. With global oil production at record highs, supply quickly overwhelmed demand leading to an acute storage crunch that triggered the historic oil price crash into negative territory. 

    Source: Quartz

    Oil prices have recovered ever since but remain a long way off the $60/bbl level they were trading at last December. The current oil price of ~$40/bbl could be around the breakeven that Russia needs to balance its books but far from satisfactory for Saudi Arabia, which needs ~80/bbl or majority of U.S. shale producers who need $50-$55 per barrel to break even. 

    With the current level of cuts set to lapse at the end of July, it’s going to be interesting to see whether “OPEC+ is until death do us part,” as Prince Abdulaziz famously quipped a month ago.

    By Alex Kimani for Oilprice.com

    More Top Reads From Oilprice.com:

    Download The Free Oilprice App Today


    Back to homepage

    <!–

    Trending Discussions

      –>

      Related posts

      Let’s block ads! (Why?)



      Source link

      Continue Reading

      Trending