Opening a retail TTC gift shop was billed as a way to earn some extra money and boost the Toronto transit agency’s brand, but staff recommend hitting the brakes on that proposal in favour of other alternatives.
In a report to be considered by the TTC board at its meeting on Tuesday, transit staff said they did a review of how other agencies sell merchandise, the current demand for TTC-themed items, and the general interest in such a store.
“The review suggests that, at this time, a standalone TTC brick‑and‑mortar retail location is not the most effective approach,” the report said in part.
“The option of a standalone retail location will continue to be assessed as market conditions and program maturity evolve.”
Instead, TTC staff recommended focusing on online promotions, vending machines, collaborations with existing retail stores, and brand licensing.
“In addition to direct revenue, merchandise programs enhance brand equity, which supports customer goodwill,” the report said.
“Elevating Torontonians’ allegiance through identity wear and product ownership mitigates reputational risk. When people demonstrate allegiance to a brand, they are more likely to engage in the brand community, express brand loyalty, and forgive occasional issues.”
Over a nine-year period starting in 2017, the TTC reported having the most royalty revenue in 2020 when the agency earned $39,334. Since then, figures have continually dropped. On average, the TTC gets $25,622 a year and royalties have all fallen below the annual average in the last three years.
“This decline reflects reduced strategic focus and internal and third-party limited staffing capacity,” the report said before going on to reiterate the proposed ways of selling merchandise.
In June, Coun. Josh Matlow suggested setting up a store at Davisville station (the TTC’s headquarters) or at another location.
“This is about bringing some revenue and also taking pride in our system, having fun and enjoying the iconic TTC brand (and) the stories that go along with it,” he said at the time.
“No, it will not change the world, admittedly, but if it can bring in some revenue and act in a way like our own Spacing store to promote and celebrate the system we love while bringing in some money, I think it’s something to consider.”
The TTC currently has an online gift shop where anyone can buy a variety of decoration items (including authentic maps and signs), clothing, accessories, children’s items and 100th anniversary commemorative items.
