Quantcast
Channel: RETAIL INSIDER
Viewing all 364 articles
Browse latest View live

LATEST CANADIAN MALL EXPANSION/RENOVATION: $280 MILLION GUILDFORD TOWN CENTRE OPENS TODAY

$
0
0
[Photo: Ivanhoe Cambridge]

Surrey BC's Guildford Town Centre reveals its $280 million renovation/expansion today, amid increasing competition amongst Canadian malls. Guildford's expansion adds over 200,000 square feet of retail space for about 70 retailers. New stores include H&M, Forever 21, Browns Shoes, Kiehl's, Sephora and a LEGO Store, among others. The expansion also includes a new food court with over 1,000 seats, new washrooms, and an overall modernized mall interior.

The mall will also see further redevelopment, scheduled for completion in 2014. We'll periodically provide updates as we receive them.

In addition, a 10,000 square foot 'living wall' will adorn the mall. It's one of the largest of its kind in North America and features more than 120 species of plants.



1.5 minute mall renovation/expansion 'fly-through'

Landlord Ivanhoe Cambridge will continue to spend a fortune renovating and expanding its retail properties across the country. One of its largest projects is Vancouver's Oakridge Shopping Centre, set to expand to more than double its current retail square footage while adding a third luxury department store. Ivanhoe Cambridge will also beef up the retail offerings at several Canadian hotel properties that it plans to eventually sell, including the Fairmont Hotel Vancouver.

Other Canadian shopping malls are also seeing significant expansions and renovations. One of the largest is at Toronto's Yorkdale Shopping Centre, which recently underwent an expansion before announcing another addition/expansion that will include a Nordstrom store. Mississauga's Square One will see the addition of a 120,000 square foot Holt Renfrew as well as other retailers. West Edmonton Mall is spending hundreds of millions while adding luxury tenants and courting Nordstrom and Saks Fifth Avenue, while Calgary's Chinook Centre looks to, again, expand its premises.

We'll soon be writing an article on the expansion of West Vancouver's Park Royal Shopping Centre, which will feature an outdoor 'town-centre' concept as well as the addition of a new retail anchor.

Guildford Town Centre's doors open at 10:00 am today, after a 9:30 am grand opening celebration.

[Press Release]

[Guildford Town Centre website]

FASHION INSIDER: Chloe Trujillo: The Designer That Saved Spring/Summer 2013 For Me

$
0
0
Chloe Trujillo Foulard [Image Source]



WATCH FOR ANGELA KREWENCHUK'S NEW WEBSITE, FASHION-INSIDER, LAUNCHING NOVEMBER 2013. IN THE MEAN TIME, CHECK OUT ITS FACEBOOK PAGE.

This article is from our Fashion-Insider Angela Krewenchuk. Angela provides Retail Insider with fashion updates on the latest trends with her own unique and knowledgeable fashion perspective

I’m going to be straight Dear Reader. The Spring/Summer 2013 ("SS 2013") offerings lacked panache for me and provided me little fashion inspiration  - THANK GOONESS FOR - Chloe Trujillo, who Singlehandedly put a breath of fresh air into a rather stale SS 2013 fashion season. It first became rather clear to me that the SS 2013 season was going to be under whelming around March 2013 when I was conducting research for a fashion show in Pennsylvania, where I served as its creative director. The fashion press predicted that there were going to be roughly 11 key looks for the season. The following list details some of my favorite looks:  

  • Cropped, shirts and Pencil skirts (preferably together) with just a sliver of mid-riff showing. 
  • Eighties inspired looks (which have been in fashion since roughly SS 2004). 
  • Iridescence, watch out if your carrying some excess water weight.
  • Mesh, been around for the past two years. 
  • Neon, who could outdo Kristopher Kane’s SS 2012 neon.  
  • The orient - ahhh, haaa -slightly new. The sixties done best by Moschino, and lastly:
  • The seventies by Hedi Silmane which I spent most of the 1990’s dressed in -Yawn. 

The dispiriting trends were graphics, bombers, flowers (aren’t they fashionable every SS?), white (you gotta be kidding?), summer trainers, and Easter Egg muted palates -common, I’m getting dressed for the day, not attending a baby shower.

Chloe Trujillo [Image Source]

In desperation, I searched and searched for something more spirited to rev up my wardrobe. My research brought me to a store on South Granville Street in Vancouver called Bacci's, where the owner Andrea turned me on to a line of gorgeous silk scarfs designed by Chloe Trujillo. For those not in the know, Chloe is the SMOKIN HOT talented artist and wife of Metalica's lead bassist Robert Trujillo. I ended up wearing her gorgeous SKULLS-IN-COLOR-SILK-SCARF in many different ways this SS and can wholeheartedly say that her scarf SINGLE HANDEDLY saved the season for me. I’m the type of gal that just cant be satisfied when fashion pundits proclaim that WHITE is one of the biggest fashion trends. Now I will share an interview with Chloe followed by my personal fashion adventures experimenting utilizing scarfs as an integral part of my look. 


[Image Source]

"Hi Chloe,

It's Angela Krewenchuk from Retail Insider / Fashion Insider. Here are a few interview questions, please feel free to be as brief or elaborate as much as you want.


1) Why scarfs - any other fashions to look out for in the future? Any more exciting things coming down your creative pipeline?

I've been selling giclees (reproductions of my original artwork on canvas) for a while and I thought, "how cool would it be to create a beautiful very high quality reproduction on silk?" My art could be wearable and so the idea came.... Plus I wear scarves all the time, they are my favorite accessory, I wear them wrapped around my head, in my hair, on my shoulders, around my waist, etc, etc.. The other fascinating thing that happened is as soon as the idea of making silk scarves popped in my head, my friend overseas emailed me the next day with the same idea along with an Italian high-end fabric manufacturer's number!! So I took action, called the number and within a few months I had my first scarf in my hands!

And yes, more to come of course! Very soon handbags and clutches are coming! I’m very excited about those!! And I made some jewelry prototypes, and clothing that I am still perfecting! Patience....


2) What inspires your art practice and when did you start it, who are your top three favorite artists?

I've always painted, or drawn for as long as I can remember... I used it a lot to express myself in the beginning, you know, to express things I couldn't express otherwise... Then it became almost a meditative practice, something that would clear my soul, clean my mind, and heal my self. Today all of this is still part of how I sometimes work, but the majority of the time, I have visions, I channel information and images that "need" to come out and be seen, so I let it all come through me and allow the creative source to take command.

For my top three artists, it's a difficult one to answer....I love so many artists, that I'm not sure I can narrow the number down to three?? To give you an idea, I love Hieronymus Bosch, Van Eyck's details, I admire Leornardo Da Vinci's body of work (not just the art, but all of his inventions and ideas...). I also love Albrecht Durer's engravery, Van Gogh's vibrancy of colors and energy, I've always loved the "Enluminures" of the Middle Ages, then again last year I went to Mexico city and saw Frida Kahlo's work and remembered how amazing she was... the list is endless... I also love the more underground artists scene nowadays! I go to as many exhibitions that I can with my busy schedule.


3) What medium have you always dreamed of working with?

I love texture, so working with thick oils for example. I really enjoy "knife" painting and don't do it as much as I'd like too, but now that I mentioned it I feel inspired....Now if you are asking me about something I haven't been working with yet, it would be clay for sculpting or some other medium to add dimension to a piece! Exploration is calling....


4) Please describe your creative process.

I constantly need a pen and paper with me; I draw and write all the time. I'm here traveling with one big sketchbook, three notebooks, a couple of fountain pen, some pencils and a good color selection of markers.

If I spend one day without sketching or writing down ideas, I get knots in my stomach and I don't feel right... It's crazy, it's a need! It's a true passion I guess, a way of living. Same thing with singing (except that there are some places where I can't really sing out, but I'll record melody ideas on my phone quietly and use or not use them later). I get ideas constantly; it's sometimes overwhelming, especially when you know you won't be able to bring all of these ideas to "life". Robert, my husband makes fun of me when he visits my studio because I always have a minimum of five projects in progress at the same time, minimum: painting, wood burning, designing, writing, wire-wrapping....

And as I mentioned earlier, I am in a state of channeling when I work, I allow the messages or images or melodies to come through and express themselves.


5) Living with another artist, are your creative processes separate or intertwined?

I think we feed off each other all the time. Nothing is separate, of course we each have our own style, our own way of creating things, but the basic process is the same. Robert lives with a bass guitar in his hands, plays all the time, writes new ideas as he is playing, I can hear him, so inevitably, he inspires me, the same way I inspire him when he sees my work.


6) Thoughts, remarks on Vancouver's style?

I've only been once to Vancouver and can't wait to visit again!! We loved it!!! So much that my sister and her family, after hearing me, are there on vacation right now!!! The people are so nice and friendly, the city is beautiful, and nature there is amazing!! We had the best experience there; I mean I was able to balance work and pleasure! I can say Vancouver is also a balance between nature and city. Stunning parks and vibrant metropolis! I also love the fact that the city is very eco-conscious! Lots of green facilities and practices, lots of organic foods and even great eco-fashion!!!!


6) I am DYING to know who your favorite 3 designers are?!

Coco Chanel, Riccardo Tisci and Alexander MacQueen. And many more too....I am here in Japan and can't help to think about Yohji Yamamoto for example or on a totally different vibe, Tsumori Chisato.


7) Last words.. What are three things you want people to know about you that I have I neglected to ask?

Music is such an important part of my life as well! My grandfather was a touring Opera singer and my first vocal coach! I am a singer and a songwriter, I've been singing on lots of different projects (blues, rock, musicals, classic, jazz, French cabaret, ..) and in different bands, and I am about to release my first solo album very soon! 

Second thing is my healing and psychic work. I studied many different healing modalities, explored different spiritual avenues from many different cultures throughout the world. I do readings as well. I apply all of this in my work, working with the color and sound vibrations, an uplifting, loving energetic field around my work whether visual, audible or wearable is very important to me. We are all connected, we actually are all One with everything, our environment, what we listen to, what we surround ourselves with, what we see everyday, and my goal is to really uplift, beautify, protect, bring peace, love, strength and overall positive and healing energy into the Universe, contribute as much as I can to reinforce the good.

The ups and downs of this roller-coaster called life. I love what I do, but it hasn't always been an easy road, and learning to turn the "bad" experiences into learning tools is essential. I am currently writing a book about some of these experiences along with the tools I used, and, of course, images and meanings of some of my work. Looking forward to accomplish this and bring it to life!

*****

Now: Here is my firsthand account experimenting with scarfs as an integral part of my waredrobe:

Movie still Release Great Gatsby wearing an urban turban [Image Source]

Back in mid May 2013 while flipping through Flare magazine a small fashion piece caught my eye. Essentially, the author was praising the aesthetic merits of a modernized turban fabricated using silk scarfs brought into vogue by the re-release of The Great Gatsby film.

Wide legged Gucci Jeans [Image Source]

Fashion inspiration had struck. The next thing you now I pulled out a well loved three seasons old pair of high waisted wide legged Gucci jeans and wrapped a Valentino scarf around my head and voila, instant, effortless, chic.


Valentino scarf [Image Source]

I wore the Valentino scarf and wide legged Gucci jeans out that day. Sure, I had a great outfit on but the ladylike silk Valentino scarf just didn’t feel like me. I yearned for something more punked out but had long ago tired of the only thing suiting this description on the fashion market (the Alexander McQueen Skull scarf) and its various knockoffs.


McQueen Scarf [Image Source]


That weekend I was wandering about the South Granville shopping district in Vancouver Canada with 'Mr. X of Retail insider' and we wandered into Bacci’s. Suddenly my eye zeroed in on a swath of silk fabric. It was a panacea in an otherwise dispiriting SS 2013 offering. I spoke with the owner of the store Andrea and she informed me that the scarf was designed by the distinguished artist Chloe Trujillo. I had found the ultimate cool, edgy silk scarf.


Chloe Trujillo Foulard [Image Source]

Although beautiful in its own right, I’m just not a fan of the $429 Gucci Flora scarf that was designed for Grace Kelly in 1966 as a gift after she visited the flagship store in Milan. Neither am I a fan of Hermes scarfs. They just do not align with my personal style – they are far too ladylike for my aesthetic preference.

Original Gucci Flora Scarf [Image Source]

Hermes Scarf [Image Source]

Around June, fashion reports came filtering in from various sources that the ultra cool global style tribes were wearing scarfs tied tightly around their heads. French stylist Catherine Baba was snapped during Paris fashion week wearing what was termed “the urban turban”; models in the Marc Jacobs SS 2013 show sported the urban turban.  The hipper than though zeitgeist whispered URBAN TURBAN and I couldn’t resist its magnetic pull.

Catherine Baba Paris Fashion Week [Image Source]

I got home and immediately contacted Chloe Trujillo, the artist behind the ultimate rock-n-roll silk scarf and asked if I could borrow one and put together various outfits around it for different social settings and write about my findings and then interview her for an article. She agreed and my scarf arrived in a gorgeous purple box less than a week later.


Outfit 1 . I attended an art show at Gallery Gachet in Vancouver:

For this event I wore a Floor skimming (flower child inspired) True Religion denim skirt,  a see through fetish inspired mesh top with a black lace cropped halter top underneath (otherwise known as the SS 2013 la Senza Bralette). 

A renowned fashion illustrator approached and told me she used to dress just like me in the 60’s and loved my look. 




Outfit 02. I went to an ULTRA glamorous lingerie and swimwear fashion show in Vancouver produced by: http://www.luvngraceaffair.com (Bernard’s event / eds pictures from HUSH /  coming later in the day https://www.facebook.com/events/590189431014435)

I wore the scarf around my head with a high-waisted black lambs leather pencil skirt with a slight flare around the bottom and a black-cropped top. My photo was taken by Ed Ng (http://www.edngphotography.com) for Hush Magazine (http://www.hushmagazine.ca) sitting beside Edward Quan of Styledrama (http://styledrama.com).  After the fashion event I went to a friend of a friends going away party and was hit on by several cute eligible gentlemen. This I attributed primarily to their level of inebriation and the fact that I GAVE GOOD FASHION that night. 




Outfit 3:

I wore the scarf out with my accomplished artist friend Garry Lee-Wilson pictured here who was Vancouver’s first celebrity hat designer in the early eighties and owner of Madame Hatters from 1983-1985. We went for coffee and a sweet treat at a hidden gem located in the heart of Vancouver’s West End. Walking down the picturesque streets we stumbled upon a construction dumpster with a few gorgeous midcentury modern furniture items in it. I was wearing the scarf around my head, a pair of Rag and Bone jeans with black suede insets and a black t-shirt. My dumpster diving proved to be artistic inspiration for my creative friend who insisted on snapping my photo so I obliged by striking a pose amongst the rubble.  HOW MUCH MORE rock and roll can a girl get!





AND THERE YOU HAVE IT DEAR READER:

Chloe Trujillo and her gorgeous Skulls in Color silk scarf saved my SS 2013 Fashion season.  This look is timeless and will be releant for FW 2013-2014.

STUART WEITZMAN: WEST EDMONTON MALL'S LATEST UPSCALE RETAILER

$
0
0
Photo: Katie Dadswell

Footwear retailer Stuart Weitzman will open a 1,500 square foot store at West Edmonton Mall before the 2013/2014 holiday season. Weitzman is the latest upscale tenant to open in the mall. It will be the 10th Stuart Weitzman store in Canada.

The Stuart Weitzman store replaces footwear retailer SoftMoc on the second level of the mall's 'Phase III'. It will be located next to a new Tiffany & Co. (which we recently announced will open in the mall). West Edmonton Mall is also undergoing interior renovations that will see it become more upscale.

For those unfamiliar, Stuart Weitzman is an upscale American shoe designer/retailer which sells at Canadian retailers including Holt Renfrew and Browns Shoes. It also has nine Canadian stores: Four in Toronto, two in Montreal, two in Vancouver, and one in Calgary. Store locations can be found here.

Thank you to our source Katie Dadswell for providing the tip and photo for this article.

[West Edmonton Mall website]

[Stuart Weitzman website]

RIBBON CUTTING AT WORLD'S 2ND-LARGEST VICTORIA'S SECRET STORE IN VANCOUVER

$
0
0
Photo: Dean Mclean

Yesterday (August 29th, 2013) was the official ribbon cutting for Vancouver's Victoria's Secret store. The 35,000 square foot retailer opened August 27th, and Fashion Insider Angela Krewenchuk was there.

We thought Chicago's flagship Michigan Avenue Victoria's Secret store was large, at 22,900 square feet. The Vancouver store is, impressively, 50% larger. 

Angela provided us with the following, including some interesting background on Victoria's Secret: It was founded by Roy Raymond, a Tuffs University Graduate and his wife Gaye in 1977 out of what Raymond considered to be 'necessity'. Eight years prior to founding Victoria's Secret, Raymond had been embarrassed when purchasing lingerie for his wife at a department store. In 1982, Newsweek quoted Raymond explaining: "When I tried to buy lingerie for my wife, I was faced with racks of terry-cloth robes and ugly floral-print nylon nightgowns, and I always had the feeling the department-store saleswomen thought I was an unwelcome intruder."  (Wikipedia)

Between 1980 and 1982 Victoria’s Secret was headed into bankruptcy. Raymond operated the business on the philosophy that it would succeed as a mail-order catalogue marketed towards men wanting to make purchases for the women in their life. In 1982 Victoria’s Secret was sold to The Limited for $4 million. After purchasing Vitoria’s Secret, the Limited changed their marketing efforts and focused their attention on a female clientele and transformed the burlesque aesthetic favoured by former owner Roy Raymond and began creating products with broader mainstream appeal. From this humble beginning Victoria’s secret has grown into the global entity it is today. In 2012 Victoria’s Secret declared a profit (operating income) of $277.8 million.

More from Angela Krewenchuk: The Ribbon Cutting ceremony in Vancouver today commemorates the first Victoria’s Secret location in Vancouver and the second largest Victoria’s Secret in the world. Model Lindsay Ellingson posed for photographers in downtown Vancouver today and cut the ribbon beautifully. The 750 Burrard Street location will carry all of their lingerie lines including Bombshell, Very Sexy, Dream Angels and the new Body By Victoria's Secret Collection. Specialists will be on site to assist clients by ensuring a perfect fit with all of their products.

Victoria's Secret states that customer service is their highest priority. That's why all change rooms are equipped with a call button for immediate assistance. The store will also carry their various scents and swimwear line. Furthermore, 7000 square feet will be dedicated to retailing the PINK line.

[Fashion Insider]

[Victoria's Secret website]

HMV RE-OPENS ON VANCOUVER'S ROBSON STREET. TEMPORARILY.

$
0
0

Music retailer HMV opens a temporary location on Vancouver's Robson Street today. It closed its enormous store across the street in early 2012, now occupied by a 35,000 square foot Victoria's Secret store which opened this week. We're not sure of the length of HMV's temporary lease, but its space will eventually be amalgamated with adjacent retail stores to create a flagship Lululemon store

The temporary HMV space, at 970 Robson Street, was until recently occupied by an Energie/Miss Sixty store. 

[HMV website]

HAPPY LABOUR DAY WEEKEND FROM RETAIL INSIDER

$
0
0
[Image Source]

We're wishing you a happy Labour Day long weekend. We'll be taking a well-deserved rest before publishing some new and exciting retail news and analysis. Behind the scenes, we do a lot of research. We have a lot to report on, and in September we'll be reporting on such topics as:

  • Holt Renfrew's next set of store expansions and renovations,
  • Internal struggles at Sears Canada, not yet reported by any other media sources,
  • New luxury retailers and retail space for Toronto's Bloor Street West and Vancouver's Downtown core,
  • The delayed expansion and renovation of Montreal's Ogilvy building,
  • Saks Fifth Avenue's expansion into Canada, including its first Toronto and Vancouver store locations,
  • The next batch of Canadian Target stores, set to open this fall,  
  • New innovations from Shoppers Drug Mart, as it attempts to compete head-to-head with Sephora for an increased share of Canada's cosmetics retailing market, 
  • The expansion of West Vancouver's Park Royal Shopping Centre, including the addition of another anchor store.

This list is by no means exhaustive. We'll also be revealing new retailers coming to market, innovations from current retailers, as well as our educated guesses as to what international labels will enter Canada next. 

2013 has been an incredible time for Canadian retailing, and we expect the same for 2014. Keep reading Retail Insider for updates. We occasionally drop hints and even report our research findings early on our Twitter and Facebook accounts. Consider following both of these for even more timely updates. 

We're still in the process of launching two new websites: a French-language version of Retail Insider, as well as Angela Krewenchuk's Fashion Insider, set to launch in November. Fashion Insider's Facebook Page is a sample of what you can expect. 

If you have any Canadian retail tips, please email them to: insider@retail-insider.com. We can credit you by name or keep your identity confidential, as you wish. 

Have an excellent weekend, and thank you for reading Retail Insider. 

TORONTO PEARSON AIRPORT LUXURY RETAIL UPDATE

$
0
0
Photo: Bernadette Morra, Fashion Magazine (via twitter)
Construction is underway for the luxury shops at Toronto's Pearson International Airport, Terminal 1. Last month we reported that the airport's duty-free concession was opening a luxury area with shops for various designers.

Bernadette Morra, Editor-in-Chief of Fashion Magazine (Canada), posted to twitter the above photo of a Bulgari shop currently under construction at the airport. It will join shops for BurberrySalvator Ferragamo and others. 


Toronto's airport will finally include the luxury retail found in major international airports around the world. We'll keep you updated on its progress, as well as its expected opening date. 


POSSIBLE SAKS FIFTH AVENUE LOCATION(S) FOR TORONTO

$
0
0
[Image Source]

It's confirmed that Toronto will be host to at least one Saks Fifth Avenue store, if no several. Toronto's first Saks store(s) will be located within existing Hudson's Bay store space, and purpose-built Saks stores could follow.

The following is our analysis both on potential shorter-term Saks Fifth Avenue store opening(s) in Toronto and some potential longer-term store locations. Longer-term stores could be newly built, including the possibility of one such Saks Fifth Avenue at the Yorkdale Shopping Centre.

So far, we know that Hudson's Bay intends to open two Canadian Saks stores towards the end of 2014. One will be in Toronto, the other in Vancouver. We expect both to be located downtown, with the possibility of one or more suburban stores to immediately follow. 

This is our analysis of possible Saks Fifth Avenue locations in the Toronto area:



Hudson's Bay, Queen Street, Toronto [Image Source]

1) Saks Fifth Avenue Within Hudson's Bay, Downtown Toronto, 176 Yonge Street (aka "Queen Street" store): We initially expected Toronto's Saks to replace Hudson's Bay's 342,000 square foot Yonge and Bloor store. Management we've spoken to are suggesting otherwise, meaning we could see Saks within Hudson's Bay's 851,000 square foot flagship 'Queen Street' store. It has room for a Saks store, though it would require an awkward reconfiguration of the store's current layout. Recently, the Queen Street flagship has added various concessions including a 19,000 square foot TopShop/TopMan, one of the world's largest women's shoe floors, and an outpost of the Drake General Store. In addition, it also recently announced that a 20,000 square foot Kleinfeld Bridal store will open next year on its 7th floor. Finding a contiguous 100,000-150,000 square feet for Saks within the Queen Street Bay may be challenging given the store's layout. In light of this, Hudson's Bay could create a series of "Saks departments" throughout its store, or Saks could occupy one or more entire floors at Hudson's Bay.



Hudson's Bay, Coquitlam BC. Uneven, dirty carpet and duct tape.

Hudson's Bay, Coquitlam BC. Broken glass, uneven/stained carpet and duct tape.

However, we think opening several "Saks departments" within any Hudson's Bay stores would be bad for the Saks brand. Saks' stores are famous for their customer service and upscale interiors, while Hudson's Bay is known for the opposite. The entire Saks brand could be devalued both for Canadians and Americans if Saks departments open in existing Hudson's Bay stores. Hudson's Bay Company CEO Richard Baker says that he'd like Hudson's Bay to be "Canada's Harrod's", indicating that he might consider merging the stores by opening Saks departments within Hudson's Bay stores. We think this would cause confusion for Canadian shoppers. We recently visited a Hudson's Bay store in Coquitlam, BC, where carpet was held together by duct tape, customer service was essentially non-existent, and mirrored pillars were broken (see images above). Hudson's Bay has a lot of work to do before Canadians can accept it as an upscale label in its own right, even if it inserts upscale Saks departments at several of its better stores.

Occupying one or more upper floors at the Queen Street flagship is possible but could also be a challenge. If located on an upper floor, Saks would lack a street-front entrance. We think it would be a disservice to Saks Fifth Avenue to deprive it of a glamorous street-front entrance, even if the store is only considered to be a "temporary" location before the opening a flagship further up Yonge Street.


Hudson's Bay, Yonge and Bloor, Toronto [Image Source]

2) Saks Fifth Avenue, Yonge and Bloor Streets: As mentioned above, Hudson's Bay's 342,000 square foot store at Toronto's Yonge and Bloor intersection could be converted into Toronto's flagship Saks Fifth Avenue store. If this happens, it's likely that the store's current concrete exterior would have to be substantially modified. Its bunker-like exterior and low ceilings might be remedied by selected demolition, though this would be expensive and challenging.  As we mentioned, Hudson's Bay wants Saks in Toronto by the end of 2014. A substantial remodelling of the Yonge/Bloor Bay would likely take longer. In the short term, a "temporary" Saks could open within the Queen Street Bay while the Yonge and Bloor store is properly renovated. Opening Saks at Yonge and Bloor would be strategic as it would go head-to-head with neighbouring Holt Renfrew, which will see a substantial expansion in the next few years. The area is also more "prestigious" than the areas near the Queen Street flagship. 



Hudson's Bay, Yorkdale (note: last week new 'Hudson's Bay' signage replaced the yellow logos in this photo) [Image Source]

3) Saks Fifth Avenue, Yorkdale Shopping Centre: The 303,000 square foot Hudson's Bay at Yorkdale has recently seen extensive renovations, including Canada's first full-sized TopShop/TopMan store. If Saks were to carve out, say, a 100,000 square foot portion of Yorkdale's Bay, that would still leave 200,000 square feet for the primary tenant. However, Saks would be up for significant competition at Yorkdale with a world-class renovation/expansion of the mall's Holt Renfrew store, the addition of a 188,000 square foot Nordstrom store and possibly the arrival of anchor La Maison Simons.

One or more "Saks departments" could be located within Yorkdale's Hudson's Bay on a more temporary basis while it secures space occupied by neighbouring Sears, which will close in a few months. Some have speculated that Saks could replace the entire Yorkdale Hudson's Bay store itself, though we think it's too large - there are no suburban Saks stores even close to 300,000 square feet in size.

Hudson's Bay, Square One Shopping Centre. Image: Google Streetview screenshot.

4) Saks Fifth Avenue, Sherway Gardens: The 223,000 square foot Sherway Gardens Hudson's Bay could see the inclusion of a Saks shop-in-store. A full-sized Saks is less likely here because even taking 75,000 square feet for a Sherway Saks would likely render Hudson's Bay too small. Opening Saks in Sherway could be a good move for Hudson's Bay, as competitor Holt Renfrew is expected to exit Sherway when it opens its Mississauga store in 2016. Nordstrom's 2016 Sherway Gardens arrival will boost the mall's popularity and Saks will more likely compliment Nordstrom than provide outright competition, given their limited brand cross-over.

Some are speculating that Saks could take over the entire Sherway Hudson's Bay store. We don't think this will happen, as 223,000 square feet is likely too large for a suburban Saks. Some also speculate that Saks could take over the 225,665 square foot Sears at Sherway and, again, we think it's too big. Subdividing Sherway's Sears for Saks and others is possible, though we're not aware of any such plans. 

5) Saks Fifth Aveneue, Square One Shopping Centre, Mississauga: The 201,000 square foot Square One Hudson's Bay could see a Saks shop-in-store. Despite Square One having Target and Walmart as anchors, Saks could actually fit in the mall now that Square One will include a 120,000 square foot Holt Renfrew store and possibly La Maison Simons. We're not sure how Saks could be configured into existing or new space, and we think Square One is the least likely of all locations discussed above to open Saks Fifth Avenue.

Our next Saks Fifth Avenue article will be on its Vancouver store opening(s).

[Hudson's Bay website]

[Saks Fifth Avenue website]

TIFFANY'S NEW TORONTO FLAGSHIP IS NOW OPEN

$
0
0
Photo: androiduk, UrbanToronto

Tiffany & Co.'s new Toronto flagship store is now open. The two-floor, 11,100 square foot store at 150 Bloor Street West replaces a four-floor, 13,450 space at 85 Bloor Street West. Despite its smaller size, the new store features more useable space as well as a more open, modern interior. It is the largest Tiffany & Co. store in Canada, and one of the highest-selling in North America

The store is about 3,000 square feet at the street level and 8,100 square feet on its second floor. Tiffany is located next door to a flagship Louis Vuitton Maison, which opened last year. The Vuitton Maison is also the largest in Canada. 

Tiffany & Co.'s first Canadian store opened in 1991 at 85 Bloor Street West. Tiffany signed a 15-year lease, which it extended by 7 years in 2006. The space is empty and is now for lease.

Since opening its first Toronto store, Tiffany has opened stores Canada-wide. Its second Canadian store opened in 1993 within Vancouver's Holt Renfrew and at 700 square feet, it was tiny compared the Bloor Street flagship. Tiffany has since opened free-standing stores across Canada including 3 in Toronto, 2 in Vancouver and one in each of Calgary and Montreal. A Tiffany store will open this fall at West Edmonton Mall. Smaller Tiffany boutiques, averaging 600-1,500 square feet, are also located within Holt Renfrew stores in Calgary, Ottawa, Montreal and Vancouver.

Photo: androiduk, Urban Toronto

[Tiffany & Co. website]

UPDATE: SEPHORA'S NEW STORE ON VANCOUVER'S ROBSON STREET

$
0
0
Sephora's development application signage on Robson Street

Sephora's new store on Vancouver's Robson Street will be one of the largest in Canada, if not the largest - we'll know more soon. Signage for the development application, posted on site, indicates that the store will be over 9,500 square feet and two floors. It will be fairly wide as well - plans indicate its width to be almost 70 feet. The Robson Street Sephora will be the largest in Vancouver. By comparison, the Pacific Centre Sephora store is 5,935 square feet.


Close-up of the development application billboard for the new Sephora building, on Robson Street

We first reported on the Robson Street Sephora store in June, where we revealed that Clearly Contacts's first store would be closing for demolition.

For those unfamiliar, Sephora is a Paris-based chain of cosmetics stores. It was founded in 1970 and purchased by the LVMH conglomerate in 1997. It has locations worldwide and opened its first North American store in New York City in 1998. It carries over 100 brands as well as its own private label products and includes makeup, skincare, fragrance, hair care, bath and body products and hair and make-up tools. 

Sephora will replace these Robson Street stores

Sephora will be located adjacent to the recently-completed retail complex that includes a flagship Forever 21 store.

[Sephora website]

MONTREAL'S OGILVY PROJECT IS DELAYED

$
0
0
Combined Ogilvy/Holt Renfrew/hotel/condo tower. Rendering: Carolyne Loubert

A project that could have seen the amalgamation of Montreal's Ogilvy and Holt Renfrew stores has been delayed. The building's owner, Selfridge's Group, is reevaluating plans to demolish an adjacent hotel for a new 17-story hotel and condominium tower. 

There have been rumours that Holt Renfrew's 83,000 square foot Sherbrooke Street West store would close so that a combined Holt Renfrew/Ogilvy store could operate on Sainte-Catherine Street. Holt Renfrew won't confirm these plans so we can't say that they were certain. We've been given word, however, that plans for the project, generally, will be modified. 

There's no word yet if the project's delay stems from Saks Fifth Avenue's revelation that it will open within the downtown Montreal Hudson's Bay store. Hudson's Bay is also on Sainte-Catherine Street, about 800 metres East of Ogilvy.


Proposed Holt Renfrew at Ogilvy, Avenue de la Montagne, Montreal. Rendering: Carolyne Loubert

A few months ago, we were provided with initial plans that indicated Ogilvy occupying much of its current space, with entrances to an adjacent retail space featuring an atrium and escalators. The image above reflects the exterior of the plans we viewed and, again, we're not confirming that Holt's will move beside Ogilvy. 

Holt Renfrew's Montreal store opened in 1937. Until an expansion in the mid-1990's, the store only had about 38,000 square feet of retail space over four floors. The store has expanded in stages, taking over the facades of adjacent townhomes and even expanding into a former theatre and the ground floor of an office tower. Despite the expensive additions and renovations, the store continues to be smaller and more awkwardly laid out than more contemporary Holt Renfrew flagships. 


Current Holt Renfrew store in Montreal [Image Source]

Ogilvy's 160,000 square foot store has recently seen renovations and continues to be a popular shopping destination for locals and tourists. Ogilvy was purchased by Selfridge's group in July 2011. Selfridge's Group also owns Holt Renfrew as well as Selfridge's in England, Brown Thomas in Ireland and de Bijenkorf in the Netherlands. 

We'll follow up this article with a historical analysis of Ogilvy, which once boasted such luxury shops as VersaceEscadaValentinoKrizia and others. We'll also do a more in-depth article on a previously proposed expansion of Montreal's Holt Renfrew store, which would have been close to 200,000 square feet and would have included a glass-fronted facade in front of some of its historical facades. 

[Holt Renfrew website]

[Ogilvy website]

LA MAISON SIMONS LIKELY TO ANNOUNCE VANCOUVER STORE THIS MONTH

$
0
0
[Image Source]

Quebec City-based La Maison Simons will likely announce its first Vancouver-area store in the coming weeks. If the deal has been signed (the mall's landlord won't yet confirm), it would be located in the suburbs at a relatively upscale shopping centre.

We were holding off on breaking this news but The Globe & Mail has just reported that Peter Simons may make a Vancouver store announcement in the coming weeks. We'll won't mention which Vancouver-area mall may feature Simons, though those familiar with the region can probably narrow their guesses to one of three or four malls.

Simons is also looking to open one or more Calgary stores. Possible locations include Chinook Centre and Market Mall, both owned by Cadillac Fairview. Winnipeg is a possibility for Simons as well, with a store most likely to open at Polo Park.

Currently, the only Simons store not in Quebec is at West Edmonton Mall. It's the largest in the chain at 118,000 square feet, and we've been told that its sales are stellar.

La Maison Simons continues its expansion across Canada, and it's in talks with mall landlords nation wide. We reported that Simons was in talks to open stores at Toronto's Yorkdale Shopping Centre and Mississauga's Square One, after Sears Canada sold its leases to those mall's landlords. Simons has secured a lease for a 105,000 square foot store at Ottawa's Rideau Centre (to open in 2016), and may open a second Ottawa-area store in Gatineau. Its ninth store opened last month at Montreal's Les Galeries d'Anjou.

Simons' combination of inexpensive, fashionable, private-label clothing and more expensive designer brands seems to be working. We think that as many as 10 new Simons stores will be open in Canada within the next five years.

[La Maison Simons website]

NORDSTROM TO START ADVERTISING IN CANADA THIS FALL

$
0
0
Nordstrom, S/S 2010 [Image Source]

Nordstrom will start advertising in Canada this fall, one year before its first Canadian store opens in Calgary. Nordstrom has hired advertising agency DDB.

Nordstrom has spent significant sums over the years on advertising, including strategically placed ads in such publications as Vogue magazine. In the mid-to-late 1990's, Nordstrom routinely placed full-page ads on the second page of Vogue to advertise luxury fashions and accessories, mainly from its women's Collector's department. Designers such as Valentino, Oscar de la Renta and Versace were prominently featured, helping lend credibility to Nordstrom's increased concentration on top-priced women's ready-to-wear and accessories. Nordstrom expanded its advertising into other national publications and hired Cuban-born artist Ruben Toledo to create fashion drawings of featured clothing for Nordstrom ads.


Nordstrom F/W 2008 [Image Source]

Nordstrom's first Canadian store opens in the Fall of 2014 at Calgary's Chinook Centre. Locations will follow in Ottawa and Vancouver in 2015, followed again by two Toronto stores in 2016. More Canadian locations are expected to be announced in the coming months.


[Photo Source]

Nordstrom has hired advertising agency DDB to handle this fall's advertising campaign, including updates to Nordstrom's Canadian website. When released, we'll follow up this article with DDB's first campaign for Nordstrom Canada.

[Press release]

[DDB website]

[Nordstrom website]

TARGET'S FALL 2013 STORE OPENINGS (INCLUDING 1ST QUEBEC & NOVA SCOTIA STORES)

$
0
0
[Image Source]

Target Canada has just announced when and where its next 23 stores will open. 14 stores open September 17th, and 9 open October 18th. Included are the first Quebec and Nova Scotia Target locations. Here's the list: 


Locations opening to the public on Sept. 17 include:
Quebec: 
  • Brossard - Place Portobello
  • Laval - Méga Centre Autoroute 13
  • Lévis - Galeries Chagnon
  • Montreal - Place Vertu
  • Saint-Georges - Carrefour Saint-Georges
  • Saint-Jérôme - Carrefour du Nord
  • Trois-Rivières - Les Rivières Shopping Centre

Ontario: 
  • Kanata - Hazeldean Mall
  • Orleans - Place D'Orleans
  • Ottawa - Billings Bridge Plaza
  • Smith Falls - County Fair Mall

Nova Scotia: 
  • Bedford - Bedford Place
  • Dartmouth - Mic Mac Mall
  • Halifax - Bayers Lake Power Centre

Locations opening to the public on Oct. 18 include:
Quebec:
  • Anjou - Galeries d'Anjou
  • Boisbriand - Faubourg Boisbriand
  • Gatineau - Les Galeries Gatineau
  • Joliette - Les Galeries Joliette
  • Montreal - Place Versailles Shopping Centre
  • Quebec City - Place Fleur de Lys
  • Saint-Bruno-de-Montarville - Les Promenades Saint-Bruno
  • Sainte-Foy - Place Laurier
  • Saint-Eustache - Carrefour Saint-Eustache

NEIMAN MARCUS NOT LIKELY TO OPEN IN CANADA, DESPITE NEW CANADIAN OWNERSHIP

$
0
0
[Image Source]

Yesterday, Neiman Marcus was sold to the Canadian Pension Plan (CPP) Investment Board and American private equity partner Ares Management LLC  (they acquired majority ownership of Neiman's for about $6 billion). Despite new Canadian ownership, we don't expect Neiman Marcus to open in Canada unless it takes over Holt Renfrew's store locations.

CCP's purchase of Neiman Marcus makes for a substantial number of international department stores owned either wholly or partly by Canadian companies. Well, sort of. Selfridges Group, owned by Canada's Weston Family, owns Holt Renfrew and Ogilvy as well as Selfridges in England, Brown Thomas in Ireland and de Bejenkorf in the Netherlands. The Hudson's Bay Company (Canadian, but now mostly American owned) recently bought Saks Fifth Avenue, and it already owns American retailer Lord & Taylor.

Dallas-based Neiman Marcus has over 40 full-line American stores, including several productive flagships (some over 200,000 square feet) and New York City's iconic Bergdorf Goodman store.

The only way we think Neiman Marcus would even consider opening in Canada is if it were to buy Holt Renfrew's Canadian store locations. Holt's largest stores are about the same size as Neiman Marcus stores. Even if Neiman's bought Holt's, Neiman's would face a disadvantage to Saks - Saks will initially pay no rent for its Canadian store locations as they will be located within Hudson's Bay-owned real estate. Holt Renfrew rents most of its store space. 

If Neimans took Holt's stores, we think it would only want the following six Holt Renfrew locations: Vancouver, Calgary, Toronto (Bloor Street, Yorkdale Shopping Centre and Square One in Mississauga), and Montreal. Holt Renfrew's Edmonton, Ottawa and Quebec City stores are too small for Neiman Marcus, and it would be too expensive and complicated to expand these to a Neiman Marcus-sized 100,000-125,000+ square feet.

This isn't the first time in recent history that upscale American department stores have been owned by Canadians. In the mid 1980's, Robert Campeau took control of Federated Department Stores and Allied Department Stores, including Bloomingdale's. However, Campeau was responsible for their subsequent bankrupcy.


[Source: Forbes]

[Neiman Marcus website]


HUDSON'S BAY'S SAKS PURCHASE IS FINALIZED: 40 DAY "GO-SHOP" PERIOD EXPIRES

$
0
0
[Image Source]

The 40-day "go-shop" period is over, and The Hudson's Bay Company (HBC) now owns Saks Fifth Avenue. After its purchase by HBC, Saks had 40 days to consider other takeover options. 

HBC can now move forward with expanding Saks into Canada, as well as determining how it will maintain expanded operations. HBC paid a lot of money for Saks at a time when North American luxury spending appears to be on a slight downturn. Some experts we've spoken to say they're concerned about HBC's future, as it has assumed Saks' substantial debts. Hopefully a real estate investment trust spinoff will allow for business to succeed, including much needed capital improvements to Canada's Hudson's Bay stores.

Despite the prestigious Saks Fifth Avenue name, we don't consider Saks to be America's top luxury department store. We'd give that title to Neiman Marcus. Neiman's consistently earns more money per square foot than Saks, and has closed far fewer stores over the years. Saks has opened, then closed, a substantial number of stores since the 1990's. Neiman Marcus has also secured more luxury concessions than Saks, including boutiques for Giorgio Armani Black Label, Van Cleef & Arpels, and Tom Ford's men's and women's ready-to-wear.

We can now expect more concrete answers as to where Saks Fifth Avenue's first Canadian locations will be. We'll be watching closely and we'll report any findings immediately, so keep reading.


[Hudson's Bay Company website]

[Saks Fifth Avenue website]

GETTING UNDER NORDSTROM: RETAILERS ARE HESITATING

$
0
0
Source: Cadillac Fairview

 A source tells us that Vancouver's Pacific Centre is struggling to secure tenants for its new retail space, to be located directly below Nordstrom. The 48,000 square feet of new retail will be accessed from the mall as well as by an escalator descending from Robson Street. 

Our source says that Pacific Centre's landlord, Cadillac Fairview, only wants "individual brands" as tenants, rather than national retailers. Some brands have shown interest but have yet to sign leases. We're waiting to hear who will sign, and what stores will follow. 

Proposed lease plan (space below Nordstrom). Source: Cadillac Fairview

This may eventually prove to be a good idea on the part of the landlord. Securing individual brands, rather than retailers available elsewhere, may help differentiate Pacific Centre's new retail. It appears, however, that retailers may be holding back on signing leases for the new spaces. This may partly be due to the retail being located in the basement of the mall, even though it's located below Nordstrom with Robson Street access. There might also be a "wait and see" situation emerging, where retailers are waiting to see who bites first for the basement retail space.

We think being below Vancouver's flagship Nordstrom store is a good thing, especially with escalator access to Robson Street. We've heard the names of a few brands interested including AllSaints, and we'll update you on who's moving downstairs. 

[Pacific Centre website]

TIPS FOR EMPLOYEE ENGAGEMENT IN THE RETAIL SECTOR

$
0
0

[Image Source]

***** The following article is guest written by Bimal Parmar, VP of Marketing at Celayix Workforce Management Solutions.  He manages its global marketing strategy and execution, and is a brilliant source of knowledge . We enjoyed the following and hope you do as well *****


A good number of retail bosses who claim their customers are at the heart of their strategy, often neglect the ‘face’ of their business- their ground staff. And when the top management misses the point, things can be in limbo forever.
 
A recent report by Gallup says that only 30% of the workforce in the US is fully engaged with their work, the rest is –actively disengaged or not engaged.

Whether it’s a result of the warped economics of insufficient remuneration or no/low benefits, most employees seem to reciprocate in a similar vein.
Here are some quick tips on how to engage your retail staff- 

Revamp: ‘Smart’ is the new ‘Efficient’ in Leadership

We all know what efficient leadership is. It’s about inspiring confidence, trusting and supporting your people, and the likes. It works, but it’s a bit passé. Try focussing on the following instead-


a)  Listen to your star performers- They’ve earned their value and credibility, so discuss your plans with them.  But, do what ultimately suits you. If that sounds like playing favorites, so be it. You can get by with paying less head to your cantankerous lot (don’t worry they’ll stick around). More often than not, the complaining lot isn’t the most capable one.

b) Make everyone accountable- Employees should be made architects of their own situation, and not victims. Let them know they’re equally accountable. For this, clearly define their chores. Employees who know their roles have a stronger chance of outdoing their duties. But, this sort of an arrangement works only if they feel you’re concerned about their growth.

c) Aim for a 100% Collaborative Environment - Despite their best efforts,organizations aren’t democracies. Employee votes do count in decision making, but not necessarily. Even employees know it. So try and aim for an environment where your employees collaborate, instead of imposing verdicts on them. In other words, keep them with you. A low-friction atmosphere will mean more productivity.

d) You can’t create a ‘Utopia’ – Do anything, but you can’t get away from the differences, disagreements, conflicts or arguments. Some people will always feel disgruntled. It’s a human trait, it doesn’t originate in workplaces. Make sure, at least delegating responsibilities become smooth. Schedule them properly in the right shifts so no last minute hiccups don’t occur. Employing a retail scheduling software can be a good option .

Besides, hurdles aren’t bad all the time, adverse circumstances teach you the most. Try your best and don’t be dissuaded by troubles on your work floor. 
Foster a ‘Passion’  for Serving well

Retail Industry, especially the service industry is fuelled by passion. Starbucks is known for its excellent customer service, that focuses on offering an experience. And this experience is created by its employees on the floor.

It’s always better to have a lively staff. Even Sir Richard Branson feels customer service is everything .
In the retail sector, your employees make all the difference. They are the relationship builders. Being a retailer you must tell your staff what’s exactly expected of them in terms of behavior and values, besides work. They are the voice and face customers see and hear, their enthusiasm has to be contagious.

You staffers are your best brand ambassadors. They carry your firm’s image wherever they go- whether they’re inside your eatery, out on a delivery or ringing a doorbell. If they smile and deliver the order. Your company looks like an amiable place. 

Something  for the-‘Top Management’

One month of bad sales and everyone at the board down to the middle level makes a scapegoat out of the ground staff. Unfortunately, the people who perform these ground duties are very marginally different from one another throughout the world, in their motivation and aspirations. They only carry out the orders.

But, what really differentiates lucky and unlucky businesses is the capability of the people above them. Educated, well-motivated managers who spend considerable time in the growth and development of their teams should be brought in. Best retail employers  are all about the progress and well being of their employees.

The businesses who complain generally make half baked efforts that are around for donkey’s years. The management must realize most of their ground staff workers have a house to run, bills to pay, bring up children. If they don’t find enough encouragement at work, they end up becoming slaves to their paychecks.

The result- your business would do OKAY but not exceed expectations.     

Wrapping Up


An enthusiastic employee is the personification of your Brand Promise. The best way is to confront the obstacles and confide in them. Tell them you’re in this together. Pepper it with positivity and enthusiasm.

Firms like Costco are thriving examples of employee friendly companies who remained unflinching when many solid brands fell apart.

Don’t let your employees feel lost. It has cost companies before and will cost them again. Walmart is a living disaster.

Just get involved, get your employees involved and you’d be surprised at the talent you’ve unlocked.


About the Author

As VP of Marketing, Bimal Parmar manages the global marketing strategy and execution at Celayix. With over 20 years industry experience, Bimal is responsible for making sure the world learns about the benefits of Celayix’s solutions that include: advanced employee scheduling, time and attendance, employee communication as well as integration modules for payroll and billing.

Before joining Celayix, Bimal was Vice President of Marketing at Faronics, a leading provider of IT solutions for the Education vertical where he helped grow revenue over 50% and launched exciting new solutions. Prior to that Bimal held senior marketing and product roles at technology companies such as Business Objects and McAfee Security where he gained significant international experience working with global companies such as Microsoft, Dell, Sony, HP, Orange, Telefonica and Ricoh. 


[Celayix blog]

[Celayix website]









HUDSON'S BAY VS. HOLT RENFREW: TIME TO DECLARE WAR?

$
0
0
Diamond encrusted boxing gloves [Image Source]


We're noticing that Hudson's Bay and Holt Renfrew are starting to carry many of the same upscale designers. At first, Hudson's Bay's then-president Bonnie Brooks said she wasn't competing with Holt Renfrew by upscaling Hudson's Bay. We don't think this is true, at least not any more - both stores after the same higher-end customer, and we're seeing many of the same designers are at both Holt's and Hudson's Bay's flagship stores.

Rather than analyse all product categories at once, we'll do a series of articles with our observations as to how Hudson's Bay and Holt Renfrew are targeting the same wealthy customer. And now that Hudson's Bay owns Saks Fifth Avenue, we think there will be even more of a war for luxury labels in Canada. Some smaller, local luxury retailers will be hurt as a result. 

We'll keep this article brief but we'll first mention women's cosmetics. We've gotten word that Hudson's Bay is negotiating with Estée Lauder to bring expensive women's skincare line La Mer into some of its stores. Hudson's Bay also wishes to expand the Bobbi Brown label to several of Hudson's Bay's more productive locations. Both La Mer and Bobbi Brown were, until recently, only carried at Holt Renfrew in Canada.

More cosmetics label concessions previously only carried at Holt Renfrew will open at Hudson's Bay. We'll discuss this in the first of a series of articles analysing how Hudson's Bay is courting the Holt Renfrew shopper.


[Hudson's Bay website]

[Holt Renfrew website]

MACY'S SAYS "NO" TO CANADA

$
0
0
[Image Source]

Last month we reported that Macy's could possibly open in Canada by buying Sears Canada. We've got an update which may disappoint - Macy's has no interest either in Sears Canada or in opening Canadian stores.

Macy's has been looking at opening in Canada over the years and has examined numerous possibilities, from buying The Hudson's Bay Company to opening newly-built stores at selected Canadian malls. In the early 2000's, Macy's thought it had secured almost 20 Canadian locations within Cadillac Fairview malls. Negotiations stalled and the deal fell through.

Macy's CEO Terry J. Lundgren says that the company no longer has interest in the Canadian retail market, especially now that so many other American retailers have moved north of the border. Nordstrom will open Canadian stores, Saks Fifth Avenue will open within selected Hudson's Bay real estate, and Hudson's Bay itself is similar to Macy's in many ways.

Hudson's Bay and Macy's are both large-format department stores generally catering to the middle market, with some luxury thrown in for good measure. Some of Macy's flagships carry more comprehensive designer selections. Same for Hudson's Bay. Macy's is spending a fortune to renovate its New York City flagship, and Hudson's Bay is doing the same with its Toronto and Vancouver flagships (though not nearly as much as Macy's $400 million Manhattan store renovation, the most expensive in retailing history).

Canada's population is about the same as the state of California's, and our land mass is huge. Canadians' income and wealth is, on average, slightly above Americans. Our population is, however, generally less likely to display expensive designer labels, limiting most of Canada's luxury retailing to Toronto and Vancouver. We may appear to be a desirable retail market, but we're small, spread-out and more likely to save our money or put it into homes and leisure.

Target is already finding its Canadian business challenging, and Nordstrom has expressed frustration coordinating its Canadian expansion. In hindsight, Macy's might be smart not moving into Canada, at least for now.

We don't expect many more foreign department store announcements for Canada in the next while. La Maison Simons is expanding, Holt Renfrew will spend hundreds of millions on store expansions/renovations, and Hudson's Bay will hopefully increase spending on store renovations to bring stores into the 21st century. Buying Saks Fifth Avenue may have been what Hudson's Bay needed for an update, and we'll report more on this soon.

So don't expect Neiman Marcus or Barney's New York to open in Canada, though if they did, we'd be first in line for their openings.

[Macy's website]
Viewing all 364 articles
Browse latest View live