Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 outbreak causing retail store closures and supply chain disruptions (factory closures in China, increased freight costs, merchandise delivery delays).
• Poor operating results from plus-size banners due to unsuccessful strategic brand initiatives.
• Weakening Canadian dollar impacting merchandise costs.

Mitigation Strategies

• Suspended dividend payments.
• Temporarily laid off 90% of retail store employees and 30% of head office employees.
• Minimizing purchases.
• Actively seeking additional financing.
• Exploring alternative financing options (mortgage financing).
• Re-organized plus-size leadership team and implemented corrective actions to improve operating results.
• Investing in e-commerce fulfillment and technology improvements.
• Managing foreign exchange market risks through U.S. dollar foreign exchange forward contract purchases.

Supply Chain Management

Responsible Procurement

• Guidelines requiring compliance with applicable environmental laws and regulations.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Impact of COVID-19 and its variants on operations, consumer behavior, and online shopping
• Adapting to changing customer preferences
• Managing cash flow and controlling expenses
• Managing inventory to reflect changes in demand

Mitigation Strategies

• Accelerating merchandise deliveries to mitigate transportation disruptions
• Renegotiated retail store leases after exiting CCAA proceedings
• Monitoring cash position and controlling expenses

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on operations, financial position, and business activities.
• Supply chain disruptions.
• Changes in consumer shopping behavior and demand, including online purchases.
• Economic uncertainty related to COVID-19.

Mitigation Strategies

• Obtained financial assistance from federal programs (Canada Emergency Wage Subsidy, Canada Emergency Rent Subsidy, and Tourism and Hospitality Recovery Program).
• Adapting to new customer preferences.
• Closely monitoring cash position and controlling expenses.
• Managing inventory to reflect changes in demand.
• Renegotiated retail store leases after exiting CCAA proceedings.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability focused products
• Diversity and inclusion

Climate Goals & Targets

Environmental Challenges

• Global supply chain delays
• Natural disasters
• System failures
• Cyber security or data breaches
• Changes in consumer shopping patterns
• COVID-19 outbreaks
• Inflationary trends
• Heightened competition
• Changes in government regulation
• Merchandise sourcing from Asia
• Cyber security threats

Mitigation Strategies

• Improved sourcing practices and reducing costs
• Managing exchange market risks
• Investing in e-commerce fulfillment and technology
• Managing inventory levels to meet customer demand
• Strong marketing campaigns
• Controlled spending in property and equipment and intangible assets
• Renegotiating leases
• Security measures, including employee training, monitoring and testing, maintenance of protective systems and contingency plans

Supply Chain Management

Responsible Procurement

• Guidelines that require compliance with all applicable environmental laws and regulations

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Inflation and rising interest rates negatively impacted discretionary consumer spending.
• Increased promotional discounts in a highly competitive environment.
• Decreased foot traffic in stores and online.
• Lower average transaction value.
• Increased markdowns and promotional activities.

Mitigation Strategies

• Modernization of digital technology (including 3D design capabilities) and implementation of a new point-of-sale system.
• Investments in infrastructure, including a $14 million investment in simplified handling equipment at its distribution center.
• Efforts to improve sourcing practices and reduce costs while continuing to offer value to customers.
• Management of foreign exchange risk by entering into forward foreign exchange contracts to hedge a portion of its exposure to fluctuations in the value of the US dollar.

Supply Chain Management

Responsible Procurement

• Commitment to ethical sourcing principles and compliance with laws of countries where suppliers operate.
• Guidelines on sourcing and other business practices to ensure suppliers do not use forced or child labor and comply with applicable laws and regulations.

Climate-Related Risks & Opportunities