After a year of unrelenting declines, Canadian retail sales growth may have finally hit bottom. But it’s too early to tell when things will perk up. Here’s my updated analysis.
The latest numbers from Statistics Canada show that overall retail sales growth in Q2 2019 was just 1.5% year-over-year on a not seasonally adjusted basis. This was even lower than the dismal 1.8% increase for Q1 of the year, although both are slightly ahead of the 1.3% gain recorded for Q4 2018. All these low growth rates are less than price inflation plus population growth and should not be sustainable, but you never know.
The 3 month sales growth trend (orange line in the chart above) and the underlying 12 month trend (green line) showed some recovery earlier in the year, but this has turned out to be a red herring. Both trends are now weakening and there doesn’t appear to be much cause for optimism moving forward. Automotive & Related is the main drag on total retail sales, but other retail sectors are not picking up the slack either.
After 6 months of 2019, total Canadian location-based retail sales are up just 1.6% year-to-date versus a year ago. This is even lower than the 2.9% annual gain recorded for 2018.
Food & Drug
The Food & Drug sector’s retail sales were up a modest 2.0% year-over-year in Q2 2019. This was significantly lower than the 3.5% increase recorded for Q1 of the year.
The 3 month trend (orange line in the chart) has taken somewhat of a dive recently. The underlying 12 month trend (green line) improved modestly at the start of the year but now appears to be dropping off.
These results are due to the main store types in this sector simply failing to post better numbers. Supermarkets & other grocery stores’ sales were up 2.0% in Q2, but this was less than half of their 4.7% gain in Q1. Health and personal care stores gained just 1.5% in Q2, down from a 2.3% increase in Q1 of the year.
The highest Q2 gain was by the small specialty food stores group, up 4.1%, and not nearly enough to offset low growth in other areas of Food & Drug.
Store Merchandise
Store Merchandise has held up slightly better than the other major retail sectors. In Q2 2019, retail sales were up 2.5% year-over-year, up moderately from a 2.0% gain in Q1.
The 3 month trend (orange line in the chart) appears to have improved compared to some of the low growth rates seen at the end of last year. The underlying 12 month trend (green line) seems to be steadying after its precipitous plunge in 2018. There’s hope yet in Store Merchandise.
A few store types had a particularly solid Q2. Furniture stores’ retail sales gained 5.8% year-over-year in the quarter, while general merchandise stores were up 4.9%. Miscellaneous store retailers gained a robust 9.8%, mostly due to the addition of new cannabis stores (this effect will be in place until at least the end of 2019 when year-over-year comparisons catch up).
On the other hand, retail sales at electronics & appliance stores continued to languish, down 9.2% year-over-year in Q2 2019. Shoe stores’ sales also declined, down 3.0% in the quarter.
Note that Statistics Canada is now suppressing the breakdown of general merchandise stores for confidentiality reasons. The figures in the “By The Numbers” table below are estimates based on previous trends.
Automotive & Related
The Automotive & Related sector seemed to be climbing out of a hole at the start of the year, but then took a beating in Q2 2019. Year-over-year retail sales were up a very slim 0.3% in the quarter
New car dealers gained just 0.8% in retail sales on a year-over-year basis in Q2 2019. This was worse than their modest 2.7% Q1 increase. Specialty used car dealers did much better with a 10.1% gain in Q2, but other motor vehicle (mostly recreational) dealers saw their sales decline 0.6%.
Gasoline station retail sales however are the most responsible for the latest plunge in Automotive & Related. Their sales were down 2.9% year-over-year in Q2 as gas prices continue to remain moderate.
By The Numbers
Special Note: Statistics Canada revised historical data with the February 2019 release. Unadjusted monthly data were revised back to January 2018, while seasonally adjusted data were revised back to January 2015. Those keeping score should update their files. The analysis in this report is always based on unadjusted data.
StatsCan started providing ecommerce retail sales data in January 2016. While the amount of data is limited, some trends appear to be emerging. Here are some results.
Overall, e-commerce represented about 3.2% of total Canadian retail sales for the 12 months ending June 2019, including both pure play operators as well as the online operations of brick & mortar stores. Canadian consumers however also buy online from foreign websites which is not captured in these numbers.
Canadian e-commerce sales were up 24.0% year-over-year for Q2 2019. This was much higher than for location based retail which gained 1.5%.
Note that location based retail is the same as that in the preceding large “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. For the 12 months ending June 2019, electronic shopping and mail-order houses had an estimated $12.1 billion in e-commerce sales.
But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the 12 months ending June 2019, this group had an estimated $7.6 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $19.8 billion in e-commerce sales by Canadian operators over the year. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian operations.
For electronic shopping and mail-order houses, an estimated 85.5% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that just 1.3% of their total sales are attributable to e-commerce.
In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 61.3% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 38.7%.
This analysis is updated monthly as new numbers are published by Statistics Canada. If you would like notification of when an update becomes available (and you’ve read this far), please connect with Ed Strapagiel on LinkedIn.
U.S.-based outdoor specialty retailer L.L.Bean has unveiled its first Canadian storefront, and it saw lineups of excited shoppers on its opening day last week.
Canadian distributer The Jaytex Group says that it could open as many as 20 L.L. Bean stores in Canada in the coming years. L.L. Bean has also partnered with retailer Hudson’s Bay to operate L.L. Bean branded shop-in-stores, with more than 50 of them either open or in the process of being merchandised. L.L. Bean is also currently distributed in Sporting Life, and MEC stores, while also operating a new a direct-to-consumer e-commerce site as L.L. Bean blitzes the market ahead of the busy fall shopping season.
L.L. Bean’s first Canadian store is located at Oakville Place in Oakville, which is an affluent community located between Hamilton and Toronto. The L.L. Bean store spans just over 14,000 square feet in a retail space formerly occupied by upscale Toronto-based grocery chain Pusateri’s Fine Foods. The popular ‘Bootmobile’ was on hand to greet the store’s guests at the grand opening.
PHOTO: GEORGE PIMENTEL
The L.L.Bean lease deal at Oakville Place was negotiated by brokerage Oberfeld Snowcap under the direction of Andrew Laudenbach. Oberfeld Snowcap represents L.L.Bean in Canada for its expansion.
The Oakville Place store features branded hunter green signage both on its rounded curved exterior, as well as from its interior mall entrance. Flooring is of light wood that contrasts with dark fixtures and wood slat ceilings. The space appears modern yet ‘outdoorsy’ as per the photos supplied for this article by George Pimentel.
L.L.Bean partnered with Toronto-based distributor The Jaytex Group on the Canadian expansion, including L.L.Bean’s current wholesale distribution as well as a retail expansion. Privately-owned Jaytex Group was founded in 1978 and features a portfolio of private label and lifestyle brands licensed in Canada.
L.L.BEAN’S FIRST CANADIAN STORE AT ONTARIO’S OAKVILLE PLACE ALL PHOTOS: GEORGE PIMENTEL
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Howie Kastner, President of Jaytex Group, told Retail Insider that the company plans to have shop-in-shop L.L.Bean stores in every Canadian Hudson’s Bay location by next spring and will expand to about 20 standalone stores in the country within 10 years.
Mr. Kastner explained that Jaytex had worked out a deal with Hudson’s Bay where the best of L.L.Bean products in all categories would be sold in self-contained branded shops ranging from 300 square feet up to 2,000 square feet. Recent social media posts from J2 Merchandising have showcased some of these displays.
“The Hudson’s Bay locations that we’re rolling out this fall will cover the top 57 stores from coast to coast right from the flagships in Toronto, Calgary, Montreal and Vancouver down to mid-size and smaller stores,” he said. The brand is also now available on thebay.com.
PHOTO: GEORGE PIMENTEL
PHOTO: GEORGE PIMENTEL
Mr. Kastner told Retail Insider journalist Mario Toneguzzi, “Ultimately our plan is to get to 20 standalone stores within a 10-year period and it’s really all going to depend on getting the right locations, the right deals, and the right space. We’re going to focus on Ontario first by opening four or five stores, and then start to branch out across the country. We have the postal code data from L.L.Bean from their online and catalogue business. We know where the L.L.Bean customer is.”
“We’ve historically had an active and loyal customer base in Canada,” said Steve Smith, President and CEO of L.L.Bean. “Developing a true omnichannel presence that includes a wholesale component, as well as new brick and mortar retail stores and a dedicated Canadian website will give our Canadian customers a better overall L.L.Bean experience and make it much easier to shop in the channel that’s most conducive for them.”
Family-run L.L.Bean was founded by Leon Leonwood Bean in 1911 when he developed the brand’s flagship product, the Maine Hunting Shoe, which combines rubber bottoms with leather uppers to ensure one’s feet remained dry while hunting. L.L.Bean was officially founded in 1912 and has been in business for nearly 107 years.
L.L.BEAN’S FIRST CANADIAN STORE AT ONTARIO’S OAKVILLE PLACE ALL PHOTOS: GEORGE PIMENTEL
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The company’s original Maine flagship complex has been open since 1917, spanning 220,000 square feet and is open 24 hours a day, 365 days a year. The motivation behind L.L.Bean’s always-on hours was to accommodate visiting sportsmen who would drive all night and wanted an early start the following day. The store has been open continuously since 1951.
L.L.Bean also operates 41 locations across the United States as well as 10 outlet stores. L.L.Bean opened its first international location in Tokyo, Japan in 1992 and manages 28 stores and outlets in that market. The outdoor retailer hosts special events like clinics and demonstrations in all of their stores throughout the year.
About 75% of L.L.Bean’s manufacturing is overseas, much of it in China. The company’s signature boots and other products are still manufactured in the United States, however, producing about 600,000 pairs of boots annually at its factories in Maine.
PHOTO: GEORGE PIMENTEL
L.L.Bean’s retail outlets feature education programs and activities where customers can sign up to participate in various outdoor activities such as archery, clay shooting, fly casting and sea kayaking, with all equipment and instruction provided.
Oakville Place is managed by landlord RioCan. The enclosed shopping centre spans more than 460,000 square feet with almost 2,300 parking spaces. The population within 10 kilometres of the centre is in excess of 335,000 people boasting an average household income of nearly $150,000, according to RioCan marketing materials, with a median age of 42.
L.L.Bean is the latest international brand to enter the Canadian market by opening stores. In 2017, Canada saw more than 50 brands open standalone stores or concessions, and last year, we tracked more than 30 entrants. This year is shaping up to be similar as retail becomes more global and brands look to Canada to drive growth.
Kering-owned French luxury brand Balenciaga will open its first standalone flagship store in Canada towards the end of the year as it expands its presence in this country. Balenciaga is also opening leased concessions in Canada’s Holt Renfrew stores as the brand goes direct-to-consumer, marking a significant trend.
In December, Balenciaga will open a store encompassing nearly 4,700 square feet at Toronto’s Yorkdale Shopping Centre. The retail space will carry a full range of ready-to-wear fashions from the brand for both men and women, as well as an expansive assortment of bags, accessories and footwear. The store’s design will reflect Balenciaga’s most updated brand aesthetic that is being rolled-out in major markets globally, as well as in the brand’s leased concessions that are being rolled-out in Holt Renfrew stores.
The new Yorkdale Balenciaga will replace a Hugo Boss store that recently relocated to a larger space nearby. Balenciaga will be located directly across from Yorkdale’s Holt Renfrew store, which recently saw the opening of new ‘world of’ boutiques for Gucci and Fendi that both have mall-facing entrances and, soon, a ‘world of’ Dior will join them. Immediately beside Balenciaga are Canada’s first standalone flagship stores for Bottega Veneta and Valentino, which both opened recently and were featured in Retail Insider. A Ted Baker boutique is currently located on the other side of the new Balenciaga, with Baker set to relocate this fall to a new space nearby that will be nearly double the size. A well-known luxury brand will soon be announced for the current Ted Baker space.
Balenciaga will be located in Yorkdale’s 2012 expansion wing that saw the addition of new retail locations for brands including Apple, Microsoft, Tesla, Longchamp, John Varvatos, Stuart Weitzman, Club Monaco, and others. In 2012, Holt Renfrew also grew its presence at Yorkdale when it expanded from about 65,000 square feet to about 120,000 square feet. Landlord Oxford Properties is positioning the 2012 expansion wing as a new luxury corridor to complement Holt Renfrew’s latest expansion as well as the addition of some of the world’s biggest fashion names, many of which do not operate stores anywhere else in Canada.
CLICK IMAGE FOR INTERACTIVE YORKDALE MALL MAP
CONSTRUCTION HOARDING AT TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO: CRAIG PATTERSON/RETAIL INSIDER
This has been an important year for Balenciaga in Canada. The brand opened its first ‘world of’ leased concession at Holt Renfrew’s highly productive Vancouver flagship in late 2018. Located in the main accessories hall on the street level of the CF Pacific Centre Holt Renfrew, the open concept Balenciaga boutique features the brand’s range of clothing for men and women as well as footwear, bags and accessories.
In Toronto last week, as well, Balenciaga opened a ‘world of’ leased concession at Holt Renfrew’s 50 Bloor Street West flagship store that also carries all categories for the brand. The boutique occupies a large space in excess of 2,000 square feet in part of the store’s overhauled main level. Renovations to Holts’ Bloor Street flagship are ongoing and will be completed in the spring of 2020.
‘WORLD OF’ BALENCIAGA CONCESSION AT HOLT RENFREW IN VANCOUVER. PHOTO: HELEN SIWAK
In Montreal, Holt Renfrew Ogilvy recently unveiled a 40,000 square foot men’s floor that includes a Balenciaga concession, with new accessory and women’s boutiques to follow. Holt Renfrew has adopted a concession model where luxury brands operate direct-to-consumer shop-in-stores with Holts acting as a landlord while taking a cut of sales. It’s a model seen more in other parts of the world like Asia and Europe. Holt Renfrew’s sister retailers Selfridges in the UK and de Bijenkorf in the Netherlands also feature similar leased departments for such brands, for example.
Balenciaga can also be found in other high-end retailers in Canada, though distribution is via wholesale. Saks Fifth Avenue’s flagship at CF Toronto Eaton Centre includes a women’s Balenciaga ready-to-wear boutique on its third level, as well as a selection of men’s fashions on its second level and a collection of bags and accessories on its street level. Both Saks and Nordstrom also carry a range of Balenciaga shoes, bags and accessories. Nordstrom’s Vancouver flagship at CF Pacific Centre, which is said to be the top performing unit in the chain, includes a Nordstrom-operated Balenciaga shop-in-store for accessories on its main level, as well as a women’s ready-to-wear boutique upstairs. Balenciaga can also be found in selected high-end retailers in Canada such as SSENSE in Montreal.
Balenciaga is said to be looking to possibly open more corporately owned standalone units in Canada. Sources say that Balenciaga has been looking at opening a flagship store in Toronto’s Bloor-Yorkville area, though no deals have been signed. The Vancouver market is also a target for Balenciaga, given the city’s high-spending brand-focused Asian population. Space for a standalone store may be challenging in Vancouver’s Alberni Street ‘Luxury Zone’, though a developer is said to be considering creating a luxury retail development nearby.
BALENCIAGA’S NEW ‘WORLD OF’ CONCESSION AT HOLT RENFREW, 50 BLOOR ST. W. IN TORONTO. WITH MORE THAN 2,000 SQUARE FEET, THE BOUTIQUE CARRIES CLOTHING FOR MEN AND WOMEN AS WELL AS SHOES, BAGS AND ACCESSORIES. PHOTO: RETAIL INSIDER
In the Vancouver area as well, ‘The Amazing Brentwood’ by co-developers SHAPE and L Catterton are said to be targeting brands including Balenciaga either for a standalone storefront or as a concession within a larger to-be-named host retailer. At the International Council of Shopping Centres conference in Toronto last year, landlord QuadReal showcased a future luxury wing for Oakridge Shopping Centre that included no-name branded storefronts for what appeared to be some of the world’s biggest luxury brands. One had the appearance of what a Balenciaga boutique might look like if it were to locate there.
In Montreal, developer Carbonleo recently began construction on its massive its massive Royalmount project, which will include a luxury retail component that is said to be seeing interest from some of the world’s biggest luxury brands. While Montreal’s luxury retail market isn’t as strong as that of Vancouver and Toronto, the city is home to many wealthy households who may choose to shop locally for high-end goods rather than travel abroad as new high-end retailers expand in the region.
Toronto’s Yorkdale Shopping Centre boasts the highest concentration of luxury brands of any place in Canada, and its roster of big names continues to grow. Sources say that more announcements will be made as Yorkdale also positions another mall corridor for luxury brands that currently includes retailers such as Disney and Fairweather. A recently announced Furla boutique will kick-off that luxury corridor expansion and at least one very big-name luxury brand announcement for the wing is expected to be revealed shortly.
French multi-national conglomerate Kering owns the Balenciaga brand, as well as other big names that are also expanding into Canada. Spanish fashion designer Cristóbal Balenciaga opened his first storefront in San Sebastián, Spain, in 1917, prior to expanding into Madrid and Barcelona. The Spanish Civil War forced Mr. Balenciaga to move his operations to Paris where he opened a couture house on Avenue George V in 1937. Balenciaga has morphed over the years from a brand known for elegant evening gowns to one featuring a wide range of fashions, including streetwear. Some have criticized the brand for designing ‘ugly sneakers’, for example, with many styles surpassing $1,000 per pair. The fashion world can be fickle and recently, Lyst ranked Balenciaga as the world’s third hottest brand, trailing Gucci at top spot and Off-White in second place. Gucci is also owned by Kering and as sales begin to flatline after phenomenal growth, some are predicting that Balenciaga could rise to the top of Lyst’s list in 2020.
West Edmonton Mall's Santa Maria is an exact replica of Christopher Columbus' flagship used to sail to the Americas in 1492
A retail evolution for 2019 is happening at North America’s largest mall, West Edmonton Mall located in Edmonton. These changes are showcasing how West Edmonton Mall is adapting to the changing retail landscape while securing its place as a global leader in the realm of ‘retailtainment’ — something other shopping centre landlords are doing to bring in shoppers to spend time and spend more money.
Luxury Retailers
One of the most exciting additions to West Edmonton Mall is the recent opening of French luxury brand Louis Vuitton in Phase 3. The store officially opened on June 7, 2019. As reported by Retail Insider in June, the store took over part of the the former 6,270 square foot Banana Republic space on the upper level. Banana Republic has not relocated within the mall. Louis Vuitton occupies approximately 4,500 square feet and carries an expanded assortment of leather goods and accessories for both women and men.
There is also a dedicated jewelry, footwear and perfume selection. For the opening, in addition to the monogram collections, the Louis Vuitton store introduced a variety of exotic handbags that ranged from $9,000 to $15,000. There was even a queue for customers waiting to enter the store during its opening, as is still the case on some days. For the remainder of 2019, Edmonton will have two Louis Vuitton stores. The Louis Vuitton Holt Renfrew Edmonton store will operate until the end of December 2019. The strategy of operating two stores in the interim will help to transition existing customers to the West Edmonton Mall location as well as start building a new customer base. Partly as a result of Louis Vuitton’s exit from downtown Edmonton, Holt Renfrew will close its Manulife Place in January.
Taking over the remaining space formerly occupied by Banana Republic is WORKHALL Studio, which was relocated from beside the mall’s LOFT store. WORKHALL Studio is an Edmonton-based fashion company with the mission of transformable and purposeful clothing. The clothes are designed and tailored in-house and produced in Los Angeles. The relocated store opened in April of 2019. It is interesting to note that many of the structural elements of the store were recycled from the previous Banana Republic store including the large pillars in the interior of the store, which saw a refresh including a salmon-coloured paint job.
PHOTO: CHRISTOPHER LUI
CLICK IMAGE FOR INTERACTIVE WEST EDMONTON MALL FLOOR PLAN
PHOTO: CHRISTOPHER LUI
To complement the arrival of Louis Vuitton, multi-brand premium jeweller GemOro Goldsmith relocated in May 2019 to its new upper level location across from the new Louis Vuitton store. GemOro’s previous location was on the main level in Phase 1 near the Centre Stage by Hudson’s Bay. GemOro is a premier destination for luxury timepieces and fine jewellery from brands including Cartier, Omega, Tudor, Breitling, Zenith, Tag Heuer, Gucci, and Mikimoto pearls. GemOro is also an Official Rolex Retailer and this location boasts a separate Rolex shop-in-shop.
In this up-and-coming luxury cluster, Canada Goose will open a 5,000 square foot store beside the Michael Kors Mens store soon. As reported by Retail Insider in April 2019, the large Canada Goose location will feature a ‘cold room’ where visitors can try on parkas in sub-zero temperatures. This will be the second Canada Goose store in the country to feature such an installation, following the opening of a Montreal Canada Goose flagship in November of 2018. To generate excitement prior to the open, the hoarding also has a View-Master set up displaying images of Canada Goose product.
In the Spring 2019, there were vacancies in this area with the relocation of True Religion Jeans and the closure of Rudsak which sold outerwear, handbags, clothing, footwear & accessories. The True Religion space has been leased to Matt & Nat which is a Montreal-based eco-friendly accessory fashion brand. As reported by by Retail Insider in April 2019, Matt & Nat was founded in 1999 and its name is derived from the words “mat(t)erial” and “nature”. Matt & Nat is known for not using leather or any other animal-based materials in its bag and accessory designs. Moving into the Rudsak space is Mackage which is another Montreal-based fashion retailer focused on luxury outerwear, women’s ready-to-wear, and leather goods. Founded by Eran Elfassy and Elisa Dahan in 1999, Mackage is stocked in 27 markets. It has six own-brand stores in the US and Canada and 943 stockists globally. Mackage officially opened at West Edmonton Mall on Friday.
The addition of these new luxury retailers in West Edmonton Mall’s up-and-coming ‘luxury area’ bode well and complement the existing upscale retailers including Coach, Kate Spade, Marc Cain, Michael Kors, Stuart Weitzman and Tiffany & Co.. Other high-end brands are said to be looking at spaces near Louis Vuitton as a high-end cluster of retailers develops on the mall’s upper level, according to mall management. In addition, with the closure of Holt Renfrew Edmonton in January 2020 as reported by Retail Insider in May, these West Edmonton Mall luxury tenants will help to attract the luxury customer to the mall and as a result, away from Edmonton’s downtown core.
Other luxury retailers joining West Edmonton Mall include SJP by Sarah Jessica Parker. The 2,440 square foot luxury shoe store opened on June 8, 2019 and replaces a former Town Shoes store which was located adjacent to BRBN st., a food and beverage area with a New Orleans theme. Town Shoes shuttered all of its 38 stores earlier this year after parent company DSW announced that it was closing the chain.
The shoe styles at SJP by Sarah Jessica Parker primarily feature high-heels and are priced in the $400-$700 range per pair. To celebrate the opening of her new store, Sarah Jessica Parker traveled to West Edmonton Mall on on June 15, 2019. She hosted a fashion show and select customers had a chance to shop with her. For more details on the event see this this Retail Insider article.
CONSTRUCTION HOARDING FOR THE NEW UNIQLO STORE AT WEST EDMONTON MALL ALL PHOTOS: CHRISTOPHER LU...
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New Retailers
Other new fashion retailers joining West Edmonton Mall include UNIQLO which is a Japanese clothing retailer. As reported by Retail Insider in June 2019, this 17,000 square foot store takes over the space formerly occupied by Murale, Laura and Brown’s Shoes. UNIQLO is a popular Japanese fashion retailer that focuses on high quality affordable casual wear from underwear to outerwear. The store’s grand opening is Friday September 27. The focus for UNIQLO’s expansion in Canada was to create brand awareness in larger cities such as Toronto and Vancouver and expanding now into secondary markets such as Edmonton and soon, Montreal. Yuichiro Kaneko, CEO of UNIQLO Canada states that “Our entry in Alberta represents an important step in our company’s expansion strategy in Canada, and we are very pleased and excited to further show our commitment to Canadians by expanding in a new province. We look forward to introducing UNIQLO and our high quality, affordable LifeWear apparel to Edmontonians and the people of Alberta and welcoming them in our new store in the fall.”
Edmonton-based salon and spa concept Evelyn Charles will relocate its EvelynCharles Academy to West Edmonton Mall in the winter. The 10,000 square foot space, which will provide education in areas including hair, cosmetology and aesthetics, will be located in part of the mall’s former Target space. The EvelynCharles Academy in downtown Edmonton, located in the Edmonton City Centre shopping and office complex, will close as a result.
An education-focused retailer Scholar’s Choice will also be opening in the mall, with details to follow.
BROWNS SHOES JUST OPENED ONE OF ITS LARGEST STORES AT WEST EDMONTON MALL, IN A SPACE FORMERLY OCCUPIED BY WILLIAMS SONOMA. PHOTO: CHRISTOPHER LUI
UNTUCKit opened on July 2, 2019 beside the future Canada Goose store. As reported by by Retail Insider in June 2019, UNTUCKit is a New York City-based men’s casual brand known for its shirts that are meant to be untucked. This store carries the full line of UNTUCKit men’s apparel, including shirts, sweaters, pants, outerwear and other categories. Brokerage Oberfeld Snowcap is leading UNTUCKit’s expansion within Canada.
Morphe Cosmetics opened in the former Indochino space in Phase 3 at West Edmonton Mall. Founded in 2008, Morphe is an LA based beauty retailer that offers professional-grade makeup at an affordable price. Initially launching in Canada through Sephora, Morphe is looking to grow its store count in Canada.
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
Alternative retailers are opening up in West Edmonton Mall as well. This fall, Aurora Cannabis is slated to open in Phase 4 in the former MyPet space. Although hoarding is up, the official opening date has not been announced. The opening of the store is impacted by two factors, previous zoning bylaws and the provincial licensing process has been suspended by Alberta Gaming, Liquor & Cannabis Commission since November 2018.
As of February 2019, the City of Edmonton has updated it separation distances for cannabis stores allowing them to open in shopping centres. The provincial government has not yet begun to release new licenses. According to Heather MacGregor, Director of Communications for Aurora Cannabis, the vision for the West Edmonton Store is to create a retail space which incorporates an educational experiential environment along with selling cannabis in accordance with all regulations.
A smaller electronics retailer Markit10 opened in Phase 1 in June 2019. An Edmonton based company, its focus is being a destination for all things mobile with a focus on price and shoppers who prefer an in-person shopping experience. This is a marked shift from other retailers who are shifting to an exclusively online presence. The retailer’s website does not include online shopping. This is an interesting strategy and time will tell if they are successful as their target market must visit the mall. The retailer’s main point of differentiation will need to be customer service as they are an exclusively in-person shopping experience.
Akianne Styles is another fashion retailer opened in Phase 1 in the previous Perisan carpet store. The Edmonton-based retailer focuses on fast fashion and carries women’s, men’s and kid’s wear and also wigs and weaves.
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
Adding to the mix of food retailers, an Edmonton based French style bakery, Reinette Cafe & Patisserie opened in the former DNA Tea space located in Phase 1. Previous to DNA Tea, this space was occupied by Teavana which was shuttered by Starbucks in 2017 and was subsequently sued by Cadillac Fairview for vacating CF’s mall properties. DNA Tea briefly relocated to a kiosk location near the Ice Palace, however it closed in the spring of 2019. Reinette serves a variety of French pastries, specialty coffee, and even nitrogen infused cold brew coffee and tea. Customers can order items to go or enjoy them in a cozy seating area.
The former Sweet Jesus Ice Cream shop in Phase 2, which opened to much fan fare, has been replaced with another ice cream shop, Dragon’s Breath. The new concept’s point of differentiation is adding frozen liquid nitrogen to its treats so that when customers consume the ice cream and breathe through their nose, the vapour is expelled similar to a dragon creating a smoke effect. The mall has two locations of Dragon’s Breath with another store also in Phase 2 near the Galaxyland amusement park. Time will tell if this is another food fad or if this trend is here to stay.
BRBN st. is adding a new restaurant to the mix. Japanese Village, which is an Edmonton based chain of Teppanyaki restaurants, is opening soon. Teppanyaki is an interactive dining experience where food is cooked on an iron griddle in front of diners. This restaurant fits perfectly for the shoppers at West Edmonton Mall since it appeals to both young and old looking for a unique dining experience. In a mall filled with international brands, it is great to see Edmonton based companies also opening up shop.
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
SWEET JESUS ICE CREAM WAS REPLACED BY A UNIQUE CONCEPT. PHOTO: CHRISTOPHER LUI
New fast food retailers also have joined the Food Courts in both Phase 1 and 3. In Phase 1, Explore India, which is local Edmonton food truck turned brick and mortar, opened on Tuesday August 13, 2019. Explore India specializes in East Indian Cuisine. Also joining the Phase 1 Food Court is Basil Box which serves Southeast Asian Thai and Vietnamese flavours. This concept is following in the customization and personalization trend in retail, as they offer a mix and match concept in building your entrée.
Gangnam Street Food, which is an Edmonton based restaurant, opened in Phase 3 earlier in August 2019 and serves Korean street food. In addition, a fast food concept called Bourbon St. Grill is also opening soon. However this concept has no affiliation to Triple Five Corporation, which is the developer and owner of West Edmonton Mall. Innovated Restaurant Group, Inc. (IRG) operates Bourbon St. Grill, which serves Cajun and Creole cuisine. These new food retailers add additional international flavours to the food court in a fast food style. In addition, they are in tune with 2019 Food Trends focusing on Pacific Rim and international flavours which will appeal to shoppers.
Adding to its entertainment offerings, West Edmonton Mall is converting the former West 49 space which had 2 levels and an underground skate park into a Go Kart track. In its former life, this was a movie theatre space. The development permit from March 7, 2019 indicates that the mall is developing the space. There is hoarding around the space with a race track theming however an opening date has not yet been announced. To keep shoppers onsite, entertainment options are a great way to enhance their shopping experience.
YET ANOTHER ENTERTAINMENT CONCEPT COMING TO WEST EDMONTON MALL’S PHASE 3. PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
Relocated and Renovating Retailers
The addition of new retailers in the mall also involves relocating existing tenants. The addition of Matt and Nat meant that True Religion Jeans needed to be relocated. The new store is now on the main floor in Phase 3 beside The Gap combination store which includes both Men’s, Women’s and Children’s fashions.
Filling the second level space of the former 149,000 square foot Sears space will be The Brick. The Brick is currently located in Phase 3 near Professor Wem’s Adventure Golf. The current store is a massive 45,000 square feet with three levels. As an original tenant to West Edmonton Mall in 1985 with the mall’s Phase 3 expansion, this store was expanded in the 2000s into a larger concept store which was one of ten in Canada at the time. To accommodate the additional space required by The Brick, the additional floors were added by digging underneath the main level. This decision was made as the mall did not want to expand upwards as it would have impacted the Europa Boulevard themed section that is directly above the store. There are currently two levels of selling space with the remaining third level used as warehouse space. According to then The Brick President, Kim Yost, The Brick faced an issue by adding a basement floor, “everybody in furniture retail knows that you don’t want anything off the entrance-level floor.”
Founder Bill Comrie created a unique main entrance from within the mall. The main entrance is a suspended floor-lit catwalk which opens below to the lower floor. This creates a feeling of openness so that customers can see that there is an additional floor below. To create additional impact, a bank of 96 television monitors was added to the back wall. By creating a unique entrance, The Brick is able to draw shoppers into their store. During the initial opening, there was even a wall completely covered with mattresses. In addition, there was scale model house built in the store with a series of galleries with professionally decorated rooms. The relocated store in Phase One opens on Friday September 6, 2019 at 5:00 pm.
West Edmonton Mall management says that it is exploring options for the former Brick space, and is close to a lease deal for the main floor of the mall’s former Sears space.
THE FORMER THE BRICK STORE AND CONSTRUCTION HOARDING FOR THE NEW STORE ALL PHOTOS: CHRISTOPHER ...
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To celebrate the grand opening, of the newly relocated Brick, shoppers will have the chance to meet Tessa Virtue, the 2018 Olympic Champion and 3-Time World Champion, on Saturday September 7. Additional grand opening events will continue all weekend. With their relocation to Phase 1, it will be interesting to see what retail concepts will be used for this new space as the store will be on the second level. The footprint of the Brick store has also been evolving during the renovation. It does not appear that The Brick will be occupying the entire second floor footprint of the former Sears space.
To accommodate the space required by UNIQLO, Melanie Lynn and Laura operated by Laura Canada moved into the former Express location — Express closed its Canadian stores in 2017. This 15,000 square foot space is ideal as Laura Canada’s strategy is to position Laura, Laura Petites and Laura Plus all under one roof. In addition, there is enough space for their Melanie Lyne brand to be located beside as well. This strategy allows shoppers to have access to a wide variety of sizes within the same store. In addition, it also allows Laura Canada to maximize operational efficiencies including human resources.
With the influx of luxury retailers to the mall, Hugo Boss renovated its current location in Phase 2 to reflect its newest branding and store design.
PHOTO: CHRISTOPHER LUI
NEW MELANIE LYNE. PHOTO: CHRISTOPHER LUI
NEW LAURA STOREFRONT PHOTO: CHRISTOPHER LUI
THE NEW HUGO BOSS STORE AT WEST EDMONTON MALL FEATURES A SIMILAR DESIGN AS THE NEWLY OPENED CANADIAN FLAGSHIP AT TORONTO’S YORKDALE SHOPPING CENTRE. IMAGE: WEST EDMONTON MALLFORMER WILLIAMS SONOMA SPACE, WHICH IS NOW OCCUPIED BY BROWNS SHOES. PHOTO: CHRISTOPHER LUI
Store Closures
West Edmonton Mall has seen a few store closures this past year. However they do not seem to impact the mall overall. Most notably, high end kitchenware retailer Williams Sonoma closed its only Edmonton location several months ago. The store opened to much fanfare in September 2012. Starting in 2017, Williams Sonoma Inc. said that it was in the process of closing 80 underperforming stores across North America as the retailer’s leases expire within the next three years. From the perspective of the mall, the space was quickly leased by Brown’s Shoes which relocated from its previous space beside Pottery Barn, creating one of the largest Brown’s stores in the company.
Located in Phase 2, Murale closed in March 2019. Murale is a free-standing luxury beauty chain owned by Shoppers Drug Mart Corp. This space was 5,000 square feet over 2 levels, including a mezzanine. Shoppers Drug Mart has been slowly closing Murale stores across Canada and is expected to shutter the chain entirely in the coming months. This high traffic space has already been allocated to the new UNIQLO store.
In Phase 3, an Edmonton luxury women’s boutique Rozah Boutique closed at the end of July 2019. The retailer carried European high end brands including Versace, Seventy and Chiara Boni. It occupied a space that was formerly an HS Henry Singer store, which is a high end men’s retailer. Both retailers have consolidated their locations to Downtown Edmonton with Henry Singer in Manulife Place and Rozah Boutique in Commerce Place.
Henry Singer was supposed to vacate Manulife Place for ‘The ICE District’ for an expansion of downtown Edmonton’s Holt Renfrew store, which never ended up materializing.
Food and beverage concept Cacao 70 recently closed at West Edmonton Mall, though it could reopen under the ownership of a different franchisee, according to mall management.
SHUTTERED ROZAH BOUTIQUE. PHOTO: CHRISTOPHER LUI
SHUTTERED MURALE STORE IN THE SPRING PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
PHOTO: CHRISTOPHER LUI
Social Media
To attract the millennial shopper, West Edmonton Mall has also added Instagram Walls right outside Galaxyland and Guest Services in Phase 2. Branded as the Photo Shoppe at West Edmonton Mall, there are four rooms that have various themes around colour as per photos above. There is currently a pink and blue room.
Shoppers are encouraged to take photos and upload them to social media using the hashtag #WEMPS with a chance to win weekly prizes. Currently the space is also being used to promote a Back to School promotion. This is a great way to attract shoppers to this section of the mall and also create Instagrammable moments that will be widely shared online. Although the mall is large, there are not too many Instagrammable walls throughout.
Conclusion
There has been an accelerated pace of change for West Edmonton Mall in 2019 which features an impressive assortment of retailers, restaurants and entertainment concepts. According to the Retail Council of Canada Shopping Centre 2018 Study, the mall ranks in number 2 with over 28 million shoppers visiting in 2018 and number 30 with sales per square foot at $767.
Landlord Triple Five confirms that the mall’s central corridor delivered annual sales averaging $1,182 per square foot for the 12 months ending June 30, 2018. With all of these changes, it will be interesting to see if West Edmonton Mall can top these numbers.
West Edmonton Mall’s landlord Triple Five Group also owns the massive Mall of America in suburban Minneapolis, as well as the American Dream retail and entertainment complex that is set to open in suburban New York City in late October. The developer also plans to open another mega-complex (co-owner Don Ghermezian prefers to not use the word ‘mall’) in suburban Miami, Florida, and more could follow in the years to come, according to sources familiar with the developer.
A small business reaching a successful milestone is a heartwarming story for anyone to hear. In Canada, one such business has reached new heights by selling candles, essential oils and other bath and body products both locally and online.
Demand grew so much in 2019 alone that production has ramped up further than ever before. Now, its retail partners are having a hard time keeping their products on shelves. For any business looking to make it big, C&C Candle Co. is a fantastic success story to learn from.
Offerings From C&C Candle Co.
Offerings From C&C Candle Co.
Offerings From C&C Candle Co.
Offerings From C&C Candle Co.
Offerings From C&C Candle Co.
The Alberta, Canada-based C&C Candle Co. makes wide range of products. It carries three different collections of candles, three different types of essential oils, bath bombs, bath salts and a whole range of supplies to make candles. Helping other candlers learn to make DIY products has been a significant boost for C&C Candle Co.’s target demographic.
Another lesson we all can learn from C&C Candle Co. is how open the company is to questions and feedback. If you’re trying to learn how to make candles or have recommendations for new products, their lines are always open. They even offer a men’s line called Gentlemen’s Torch that’s still new, but has products most other candlers don’t usually carry.
THE GENTLEMAN’S TORCH PHOTO: C&C CANDLE COMPANY INC. VIA FACEBOOK
PHOTO: C&C CANDLE COMPANY INC. VIA GOOGLE MAPS
Growing Demand
The owner of C&C Candle Co., Bridget Calvank, has been making these candles for 15 years. Only when demand rose to staggering heights in early 2019 did she decide to branch out into full-scale production. Now she has two locations, one being a 6,400-square-foot manufacturing facility.
“In the last year we have grown very quickly due to the overwhelming success we have had with London Drugs,” Calvank told Retail Insider. “We started out with five products in September 2018 and have quickly expanded to 24 products in all 80 of their locations as of August 2019!”
“I believe one of the biggest reasons for this [success] is we custom design the product to go into the stores so it’s always different and unique for each retailer,” Calvank says. “Making their clients come back to them for that product again and again. Plus we manufacture the products right here in Calgary, so we can control the quality and it matters to the customer that we are Canadian. We have also recently engineered our packaging to be 100% recyclable as of July 2019 we are the first in our industry to do this.”
C&C CANDLE COMPANY INC. PRODUCTS AT LONDON DRUGS PHOTO: C&C CANDLE COMPANY INC. VIA FACEBOOK
Contact
“When I started out in my basement almost 20 years ago it started as a hobby,” Calvank says, “but I always knew I wanted to make it into more because I loved the idea of making people feel great when they used our products.”
If you’re in the Calgary area, you can find C&C Candle Co. at Unit 19 2015 32 Avenue Northeast. If not, you can still buy any of their products online, but don’t forget discount codes. All online orders are 2% off when you use the promo code ONLINE. You can also get 5% off online orders of over $300 by using the promo code 300.
No matter what you decide to order or how you want to buy, C&C Candles Co. makes the shopping experience easy, personal and fun. For those thinking about getting into candle-making, this might be one of the best resources you could find. C&C Candle Co. already helps out its local community.
Calvank says C&C Candles Co. will be at the Spruce Meadows Christmas Market all three weekends in November this year. “[I]t’s our first year there and we are hoping for a great success,” she says.
If you want to follow their journey, connect to C&C Candle Co. on Facebook, Twitter, Instagram, email or just use the chat menu option on their website. Depending on your circumstances, you can find them wherever or whenever you need help.
Kayla Matthews
Kayla Matthews is a researcher, writer and blogger covering topics related to technology, smart gadgets, the future of work and personal productivity. She is the owner and editor of ProductivityTheory.com and ProductivityBytes.com. Previously, Kayla was a senior writer at MakeUseOf and contributing freelancer to Digital Trends. Kayla’s work on smart homes and consumer tech has also been featured on Houzz, Dwell, Inman and Curbed. Additionally, her work has appeared on Quartz, PRNewswire, The Week, The Next Web, Lifehacker, Mashable, The Daily Dot, WIRED and others.
Since its establishment in 1888, Toronto-based furniture manufacturer Inscape has built a reputation on innovative designs and pieces that meet a business’s evolving needs. Inscape knows that change is the only constant, and it’s crucial to build furniture to match that reality.
In other words, companies should feel that they can confidently navigate changes without feeling limited by their furniture.
Those business ideas helped drive Inscape’s decision to open a new multipurpose retail space in the heart of Toronto’s action-packed downown Financial District.
Image: INSCAPE
Turning Consumers Into Confident Purchasers
This new space on the 13th floor of the TD Centre at 220 Bay Street is primarily a retail showroom. It features dedicated zones such as a kitchen and a client waiting area. Many of the sections have nature-inspired elements, such as plants and natural wood. Also, the furniture arrangements help people envision how they might use the pieces in their workplaces. That approach could help drive sales.
“The multi-functional showroom-meets-office-meets-event space truly articulates Inscape’s promise to its customers: flexible design,” says David Gerson, Chief Brand Officer at Inscape. “The showroom highlights the many ways businesses lay out their offices based on function, whether as individual workstations, hotel desking, or closed collaboration or executive offices. However, what is unique about Inscape is that each system can adapt to business’ many changing needs.”
Image: INSCAPE
Research from Google indicates that consumers move through various stages of the furniture-buying process. Many of them happen online first. For example, people watched more than 13 million hours of home furnishing-related YouTube videos in 2016. Many of them do that because they want to visualize how pieces would look in their space.
Inscape has a YouTube channel, but the opening of its new space means people can visualize the options in ways that are more helpful than merely watching a video. They can request product demonstrations, analyze the dimensions of the pieces that interest them most, feel textures and more.
Getting this informed about furniture helps the showroom’s visitors feel excited and well equipped to purchase things for their offices. They also have the opportunity to immediately have questions answered by the showroom’s employees.
PHOTO: INSCAPE
More Than a Showroom
Inscape also had other things in mind when planning how to use its showroom. It tasked figure3, an interior design firm, with designing the 6,000-square-foot space to meet multiple needs.
“The space needed to be truly multi-functional, as not just a corporate furniture showroom, but an office and co-working space for employees, training hub, and event venue,” says Gerson. “In addition to a variety of uses, Inscape wanted to create an environment where clients would feel welcomed and at home.”
One of the standout features is a meditation room surrounded by a dichroic glass film. That design element adds a continually changing colour spectrum to the boundaries of that peaceful area. Additionally, people can perch on the window seats of the veranda and marvel at views of the Toronto skyline and nearby Lake Ontario.
PHOTO: INSCAPE
People Can See for Themselves
Inscape’s business focuses on customizable office furniture. This new showroom is an extension of Inscape’s brand promise that individuals can experience firsthand.
If consumers are in the market for appealing, purposeful office furniture or want to learn more about the options Inscape offers, it’s worth checking out the showroom at 220 Bay St. First, however, people should book a showroom tour by emailing toshow@myinscape.com.
Kayla Matthews is a researcher, writer and blogger covering topics related to technology, smart gadgets, the future of work and personal productivity. She is the owner and editor of ProductivityTheory.com and ProductivityBytes.com. Previously, Kayla was a senior writer at MakeUseOf and contributing freelancer to Digital Trends. Kayla’s work on smart homes and consumer tech has also been featured on Houzz, Dwell, Inman and Curbed. Additionally, her work has appeared on Quartz, PRNewswire, The Week, The Next Web, Lifehacker, Mashable, The Daily Dot, WIRED and others.
There is no denying that recent years have seen a huge shift in the Canadian retail landscape. Values and consumer habits have moved away from the cut and dry materialism of the 20th century and now experiences are the new cultural currency. We have also seen other trends take root, such as the overload of hyper immersive “Instagrammable” pop ups, and we’ve lived through the disruption of the digital age which has led to the “retail apocalypse” and the downfall of the department store.
This year, 2019, is the first year that millennials have outnumbered baby boomers, according to the Pew Research Centre. We also have Gen Z, the school-age young adults of the next generation, poised to shake up the industry even more. While we can’t predict the future, the statistics of how and where we shop are telling of what consumers these days find necessary as part of their retail journey. To begin to understand what comes next, we must first thoroughly understand our consumers.
Canadians today are focused on self-care and living a more balanced life. They are also now consciously seeking natural alternatives and companies that are environmentally responsible. There are creative ad campaigns plugging everyday items that have been reinvented for a generation that wants to give back to the community, demands transparency and would rather pay an extra dollar to ensure that what they’re buying into is the real deal.
This has resulted in the rise of singular branded, formerly mundane household items now reframed as their own niche markets that can elevate our experience. For example, we can now treat ourselves to toothbrushes made with sustainable bamboo handles and organic charcoal bristles. Before making a purchase, we ask ourselves: Would we rather support mega corporations? Or would we rather support small businesses and those that care about sustainable development and strive to enhance health and wellness? What will make us feel better?
Most of our current retail clients are ones that operate from a wellness-based perspective. The retail market in Canada is recognizing this shift in shopping habits and companies that are experiencing growth are offering products and services which are focused on the foundations of health and wellness or embed it into their brand identity.
Here’s a snapshot of some retailers who are shaping the future of retail in Canada and how they’ve incorporated wellness into the design and roll-out of their projects.
Wellwise, formerly known as Shoppers Home Health Care, was known for selling utilitarian medical aids but has recently repositioned their brand. Their new bright and uplifting spaces empower Canadians to age powerfully and to live active and healthy lifestyles. We designed accessible stores with homey elements like warm wood flooring and millwork and drum shade lighting. Each product category is clearly defined with a corresponding bold colour and icon, making the store easy to navigate. Adjustable store fixture components and shelving provide flexible merchandising options for product displays.
The large-format stores include a mock-residential apartment, helping shoppers visualize how they can adapt their homes to accessible living while also allowing the store to push typical merchandising boundaries. We also included a garage space with an open car trunk where customers can test out loading their mobility devices.
Mad Radish is a quick service restaurant geared towards busy professionals who want quick and healthy alternatives to the typical fast food fare. They work with local farmers to source organic and sustainable ingredients, their packaging and cutlery are 100% compostable, and they donate fresh produce to low-income communities when you order through their app. The design of the space complements the fresh and organic menu with light-coloured, clean finishes that pay homage to natural elements. Biophilia is referenced in the design, emphasizing the use of fresh ingredients in the menu. We helped the client find efficiencies for the floor plan layout, finding a natural and efficient flow for customers looking to maximize their precious time.
Saje Natural Wellness promotes healing through plant-based sources with their essential oils. The stand-out design feature of their stores is a living wall. While there are many brands that incorporate floral walls in a bid to entice shoppers with an Instagrammable backdrop, the purpose of Saje’s living wall is to reflect the value they place on biophilia. Instead of the typical photogenic flora and fauna often seen on social media, they opt to fill their stores with plants and herbs that complement their product lines, such as sage, lavender, and eucalyptus. Light finishes in natural oak wood further support the company’s plant-based focus.
These brands are now at the forefront of creating a standard for design and wellness in the retail market in Canada and capturing how that translates from the store to our everyday lives at home, at work and on the go. Designing for health and wellness in retail allows us to connect with the public at large and allows us to relate with consumers on all levels. We look forward to continuing this journey with our clients and future collaborations that transform traditional retail store formats and elevate them to unique lifestyle experiences.
Marcella Au and Shannon MacLean are designers at Quadrangle, the firm responsible for the design and roll-out of Wellwise and roll-outs of Mad Radish and Saje Natural Wellness, pictured above.
The history of Tepperman’s home furnishings store started as a dream when Nate Tepperman began his peddling career selling door-to-door in Windsor, Ontario in 1925.
Today, Tepperman’s has become one of Canada’s largest home furnishing stores with a unique way to do business going back to the company’s roots.
Andrew Tepperman, grandson of the founder and current company president, said his grandfather left Russia right after the Revolution in that country and came to Canada.
“I think he had a Grade Five education. English was not his first language. No money. I think he worked at odd jobs. We don’t know a lot and then in 1925 he started going door to door selling rugs and blankets,” said Tepperman.
RIBBON-CUTTING AT THE ANCASTER MEADOWLANDS LOCATION PHOTO: TEPPERMAN’S VIA FACEBOOK
“This is really interesting. He needed to differentiate what he was doing. So he would sell it on credit and every week he would go back and collect a nickel and what’s amazing fast forward to today we use that exact same model and we still do in-house credit where everyone else uses banks. We follow the exact same thing he did from 1925. So, when times get tough, we work very closely in a different way with our customers and that’s always been a differentiator for us.”
Tepperman said his grandfather eventually got a bicycle so he didn’t have to walk door to door and then got a pickup truck and eventually opened his first brick and mortar store – all within the same area in Windsor.
“He never expanded. He went from 1925 to 1970 one store, one location in Windsor. And he unfortunately drowned in 1970 when he was 70 years old. He was on vacation in Florida. So my father Bill Tepperman was 36 at the time and was kind of thrust into the leadership position of the business and my father continued to build up on the legacy and then in 1983 he expanded to Chatham and then 1992 expanded to Sarnia and in 1997 expanded to London,” he said.
“In 2006, my father retired, and I took over as president and my brother took over as secretary-treasurer. We had four stores at the time, and we continued to grow the stores. We outgrew London so we closed the store that we had been in for 10 years and in 2008 we built a very large facility in London just down the street and today it’s our largest store. It’s 85,000 square feet of showroom and 150,000 square feet of distribution space. It’s pretty large. It’s joined together.”
PHOTO: TEPPERMAN’S VIA FACEBOOK
In 2016, the company moved into Kitchener and recently it opened in Ancaster, taking over an old 40,000-square-foot Sears Home store and renovating it. Don Gregor of Aurora Realty Consultants negotiated the lease deal on behalf of Tepperman’s.
Within each of the six Tepperman’s stores, a second brand operates that used to be called the Bargain Annex, which was developed in 1984, but today is called Outlet at Tepperman’s.
“The Outlet is a separate entity. Different salespeople. Different dress codes. Different products. Everything’s completely different. It’s located within the store and a lot of the stores have separate entrances too,” said Tepperman.
The company carries furniture, appliances, bedding and electronics.
TEPPERMAN’S NEW ANCASTER MEADOWLANDS LOCATION ALL PHOTOS: TEPPERMAN’S VIA FACEBOOK
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“In terms of what we do, if you combined Leon’s, The Brick, Best Buy, Sleep Country, and put them all together, that’s really the type of categories of what we sell and a very similar demographic,” said Tepperman.
“What’s different with us – it’s not just history as we’re 94 years old and Leon’s is 105 years old – but about four years ago we hired a designer out of New York who gave us this really interesting concept that we tested in Kitchener and it was so inspirational, the showroom, that we’ve rolled it out now to all of our stores. So there’s this consistent approach.”
“With all the online challenges going on today, we had to make a choice. Invest more in the online world or are we going to create an amazing store experience? We put a lot of money into the showrooms so when you walk in everything from the treatments – the lighting, the colours – we try to create a really nice, inspirational fun environment.”
Tepperman’s has courtesy electric car chargers, free popcorn and coffee all day, a kids’ movie and colouring area. There is a welcome information centre when customers arrive. Courtesy candies.
PHOTO: TEPPERMAN’S VIA FACEBOOK
“It was interesting. I was doing some work with Junior Achievement the other day and I was teaching some Grade Five students about business and there were 25 kids in the class, so I asked them all have you heard of Tepperman’s. And all of them put their hands up because we’re in Windsor and we’ve been here forever, and I asked what do you like about it. And every one of them said popcorn,” said Tepperman.
“It was amazing. It’s sort of like this is my farm team for the future. Twenty years from now they’re going to remember that and come back I think.”
Tepperman said there is a lot of vacant retail space that keeps popping up. Ancaster was not on the company’s radar initially as it was looking more towards Guelph or Brampton for expansion. But when Sears went out of business, all of a sudden this “amazing location next to Costco” was too good to pass up.
“We always operate on a 10-year plan. Our current 10-year plan ends in the year 2025. And it’s more let’s wait to see what comes up, what opportunities come up, rather than us aggressively going into Burlington or Barrie or something,” he said.
PHOTO: TEPPERMAN’S VIA FACEBOOK
Stores start at about 40,000 square feet up to 85,000 square feet for the showrooms.
The company also has two distribution centres. One in Windsor which is 100,000 square feet which has been in the same location since 1950. The London distribution centre is 150,000 square feet.
Tepperman said two other big differentiators for the company are its work within the community and environmental leadership.
“We do a ton in the community. We would need days for me to tell you everything we do. Some big things would be like our scholarship program where we’ve given out almost $700,000 in post-secondary education scholarships to kids,” he said.
“Also our sustainability programs are really interesting. One of our six guiding principles is about environmental leadership. One of our goals is to divert 100 per cent of our waste from landfills by 2025.”
COS WILL OCCUPY 9,000 SQUARE FEET IN TWO RETAIL SPACES. THAT WILL INCLUDE THE ENTIRE A/X ARMANI EXCHANGE SPACE AT 1070 ROBSON STREET THAT SPANS 6,000 SQUARE FEET OVER TWO LEVELS, WITH AN ADDITIONAL 3,000 SQUARE FEET ON THE SECOND LEVEL OF A SPACE FORMERLY OCCUPIED BY BCBG. IMAGE: GOOGLE STREET VIEW
H&M‘s upscale fashion brand COS (‘Collection of Style’) will open a two-level flagship store on Vancouver’s Robson Street in late 2019. Construction is already underway for the store that will occupy two high-profile retail spaces on the busy shopping street. It will be the second COS storefront in Vancouver, and the brand’s seventh location in Canada.
In all, the new Robson Street store will occupy about 9,000 square feet in a unique configuration. That includes the entire two-level retail space at 1070 Robson Street that was formerly occupied by retailer A/X Armani Exchange that closed last year, as well as the upper level of the adjacent 1080 Robson Street storefront that was formerly occupied by women’s retailer BCBG.
COS will occupy about 3,000 square feet on its main level in the former A/X Armani space, as well as about 6,000 square feet on the second level in the adjoining spaces formerly occupied by A/X Armani and BCBG. This week, construction commenced to join the two second-level retail spaces which will require removing an elevator shaft in the former BCBG space. Negotiations are ongoing for a tenant to occupy the 3,000 square foot street-level former BCBG space at 1080 Robson Street.
COS representatives said that the Robson Street flagship would have about 5,000 square feet dedicated to retail space. Martin Moriarty and Mario Negris of CBRE in Vancouver negotiated the deal for both the retailer and the landlord.
The Robson Street COS store will be the second in Vancouver. In March of 2017, COS unveiled a store at 18 Water Street in the city’s historic Gastown area. That store occupies 4,130 square feet with just over 3,000 square feet dedicated to retail space on one level, and has a basement area of an additional 2,330 square feet.
In Canada, COS currently operates six stores, including three in the Greater Toronto Area, two in the Montreal area, and one in Vancouver as mentioned above.
Shortly after the opening of COS’s Vancouver Gastown location, the retailer opened its second Montreal-area store at CF Carrefour Laval in the summer of 2017. In the fall of 2017, COS opened a location at Square One in Mississauga.
The three-level Bloor Street COS flagship is the largest in the country to date, occupying a four-level building with more than 13,000 square feet, with three-levels above grade. The retail space itself spans 6,738 square feet, according to COS.
COS’ Canadian stores include fashion collections for women, men and children. Store designs are open featuring minimalist white walls and mid-century modern furniture.
Parent company H&M launched the COS store concept on London’s Regent Street in March 2007. The brand has a wide product range that is divided into a number of different concepts, incorporating fashion essentials, reinvented classics and modern trends for men and women.
In the Vancouver area, sources confirm that COS is in discussions to open another location that would span nearly 7,500 square feet on one level. The retailer has yet to expand into secondary markets such as Calgary, Edmonton and Ottawa.
Leon’s Furniture, Canada’s largest retailer of furniture, appliances, and electronics, has officially launched a new tech-heavy concept store at 1395 United Boulevard in the Vancouver suburb of Coquitlam. Similar concept stores could be rolled-out into other markets.
Though typically known for its large-scale stores, the new reduced-in-size 15,000-square-foot space includes a curated collection of affordable on-trend furniture and appliances while additional technological features allow customers to shop the full product range.
This advanced retail technology gives customers access to a selection usually reserved for larger Leon’s locations. Shoppers can browse through the entire collection and obtain any desired product QR codes on one of four touchscreen stations. The interactive experience also introduces customers to additional products and custom colours not available on the showroom floor.
ALL PHOTOS: LEON’S
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Leon's store. Photo: Leon's
The cutting-edge showroom has an 11-foot video wall that allows shoppers to view any product from Leon’s in real size and in any colour the product is available in. This installation aims to provide a new way for shoppers to interact with Leon’s product line.
With the use of a standard tablet, Leon’s Sales Associates also show customers products in augmented reality (AR) alongside other pieces in the showroom to help with room planning. This feature is fantastic for visualizing room composition without being overwhelmed, as is sometimes the experience in large showroom environments.
PHOTO: LEON’S
PHOTO: LEON’S
The use of e-tags (electronic) on appliances assists customers in getting the best, most competitive price, along with Leon’s 60-Day Price Guarantee. Checking out is also more efficient with new mobile point-of-sale tablets, which are voice-activated to help speed up the completion of order/payment/delivery forms.
Leon’s smart service continues with its delivery program. Customers have access to delivery management online or on their phones with Clear Destination, which gives a more accurate delivery window.
The new flagship will act as a test store for other locations, with the potential of implementing the latest tech advantages to existing stores across the country.
PHOTO: LEON’S
PHOTO: LEON’S
Leon’s opened its first store in Ontario in 1909 and then became Canada’s first ‘Big Box’ retailer in 1973 after introducing its first large-scale store. The company now has 51 corporately owned retail stores across the country, with 34 franchise locations. Moreover, with a focus on expanding in British Columbia, this is Leon’s fifth store in the province.
With multi-million-dollar inventory levels, Leon’s can provide customers with quick delivery and its computerized systems and procedures are on the leading edge of retail technology.
The company has been in business for over 100 years with retail banners including The Brick, Brick Outlet, and The Brick Mattress Store. Leon’s employs 10,000 people and operates 302 retail stores from coast to coast.
The new concept store, which is expected to be replicated in other markets in Canada, includes tech innovations and experiences not found in other furniture retailers in Canada. Leon’s is innovating at a time of unprecedented competition in the Canadian furniture segment. Vancouver based Article, the online home furnishings retailer, is seeing explosive growth from its web channel. Other brick-and-mortar retailers ranging from Ikea to Bad Boy Furniture are also expanding their presence in Canada. Armani Casa and King Living are opening stores in Canada, addressing the high-end consumer. Retail Insider also recently reported on Montreal-based Bois & Cuir, which could open as many as 10 more stores over the next 16 months, according to the retailer.
