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BRIEF: Morphe Cosmetics & O bag Open 1st Canadian Stores, d’Anjou Sears Box Converting to Office Space

By
Retail Insider
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Retail Insider Brief

By Retail Insider

Morphe Cosmetics Enters Canada with 1st Store

Popular beauty brand Morphe Cosmetics has opened its first Canadian store at Square One in Mississauga. 

The 4,660-square-foot store, located between White House/Black Market and across from Sephora and MAC Cosmetics, carries the full range of makeup colours and brushes that have given the brand a cult following.

Morphe was founded in 2008 by artists and influencers, and The brand is popular partly because its price-points are kept reasonable. Known for its eyeshadow palettes (a vast variety, most priced below $50) as well as its brushes that are used by makeup artists globally. It also offers beauty tools such as brush cleaners, beauty sponges, makeup removers and tweezers, among other items. 

Morphe is expanding rapidly and plans to open several stores in the US as well as in the UK in the near future. More Canadian stores are on the way as well, and we’ll be interviewing the company soon to get more details (an interview couldn’t be coordinated prior to press time).

Square One is becoming something of a beauty destination with other retailers such as Urban Decay, Deciem, Kiehl’s, NYX, The Face Shop, Yves Rocher operating standalone units in the mall, as well as anchors Holt Renfrew and Hudson’s Bay that both feature large beauty halls. Not to mention the mall’s Walmart and Shoppers Drug Mart stores also feature an offering of beauty items. 

O bag Opens 1st Canadian store in Montreal

Popular Italian bag brand O bag has opened its first Canadian store at the Centre Rockland in Montreal. A second location will open at CF Carrefour Laval in suburban Montreal in the spring of 2019. 

The brand is popular because of its simple, stylish and practical bags that can be personalized through customization options. The bodies of the bags are made from a lightweight foam called XL Extralight®, which is soft and warm to touch, waterproof, strong, flexible and anti-microbial. Retail Insider recently profiled the brand and its Canadian expansion. 

Carmine Di Fruscia, who is also president of Mr. Pretzels in Canada, is rolling-out the O bag retail expansion with plans for about 50 stores in Canada over the next five years. For any landlords interested in having O bag as a tenant, contact Carmine Di Fruscia at: 514-349-3911 or email: carmine@ptg.ca.

Mackage Opens Montreal Flagship, More Stores Planned for 2019

Upscale Montreal-based fashion brand Mackage has opened an impressive multi-level flagship located at 1300 Sainte-Catherine Street West. It replaces a 3,000-square-foot BCBG store which formerly occupied the space (BCBG closed all of its Canadian stores last year). Jeff Berkowitz of Aurora Realty Consultants represented Mackage in this deal (and other deals), and Manon Parisien of Aurora Realty Consultants acted on behalf of the landlord. 

The new Mackage space is at a very prominent corner in Montreal. Located at the intersection of Sainte-Catherine Street West and Rue de la Montagne, Mackage will be across the street from the new ‘Holt Renfrew Ogilvy’ building, which is in the process of a renovation and expansion that will see it become the epicentre of luxury retail for the city centre.  

Mackage opened its first freestanding Canadian store in October of 2015 at CF Carrefour Laval, near Montreal. In the fall of 2016, two Toronto locations opened at CF Toronto Eaton Centre and at Yorkdale Shopping Centre. Most recently, Mackage opened at CF Pacific Centre in Vancouver and Oakridge Centre in Vancouver. Next year, a Calgary store will open at CF Chinook Centre. In the United States, Mackage operates two stores in New York City, one in the Mall at Short Hills (near NYC) and in Chicago (on prestigious Oak Street). 

CF Galeries d’Anjou Seeks to Answer the ‘What to do with Empty Sears Spaces’

Adjacent to the largest shopping centre in Montreal’s East End, at the junction of two major highways, sits an empty Sears Canada box — not unlike the others sitting empty across the country. Landlords have been trying to figure out what to do with the empty space, and CF Galeries d’Anjou is offering the area up for offices.

The south wing is a prime location, available with areas ranging from 20,000-square-feet to 127,230-square-feet over two floors. This upscale corporate environment is preserved thanks to the dedicated entrance to the office section, vast and free parking, and direct access to the mall.

Other key features of the space at 7999 Galeries d’Anjou is the unrivalled access to all imaginable amenities, signage options with prominent visibility from the boulevard, 24/7 security, fibre optics, and elevator access.

Contact André G Plourde, Senior Vice President, Chartered Real Estate Broker at Colliers Canada for more details. [Click to Download PDF Lease Package]

MARCELO LEONE, LEFT AND CESARE FAZARI, RIGHT, AT THE NEW STORE. PHOTO: CESARE FAZARI

Respect Your Universe (RYU) Apparel Opens at CF Sherway Gardens

Vancouver-based urban athletic apparel brand RYU Apparel Inc. has opened its second Toronto retail location at CF Sherway Gardens. The impressive store is located in the mall’s expansion wing that is anchored by Sporting Life and Harry Rosen, and is near recently opened locations for Tesla, Sandro and Maje. 

The attractive new store features the full assortment of RYU’s fashions and accessories, in a bright space that appears similar to the brand’s other retail stores. 

RYU Apparel’s first Toronto store opened at 361 Queen Street West in the fall of 2017. The company also operates four stores in the Vancouver area — its first opened at 1745 W. 4th Avenue in early 2015, followed by stores at 805 Thurlow Street (near Robson Street) in Vancouver, at Park Royal in West Vancouver, and at Metropolis at Metrotown in Burnaby. RYU opened its first store in the United States in August of this year in Venice Beach, California, and a second US store opened in the Williamsburg neighbourhood of Brooklyn NY in September. Next up is a store at Fashion Island in Newport Beach, California, and the company plans to open five units per year between 2019 and 2022 when it anticipates operating 29 stores. 

“We are delighted to announce this important second step in the growth of RYU in the biggest Canadian city,” said Marcello Leone, CEO and President of RYU. “Our brand is growing constantly and the response we received in our first location in Queen Street West, in combination with the RYU Underground, our Gym located downstairs, has been incredible: we felt the need to work harder to please the local community with a second location and we didn’t miss he chance to secure such a prestigious location”.

Originally founded in Portland, Oregon, RYU or ‘Respect Your Universe’, is an athletic tech-style apparel brand engineered for the fitness, training, and performance of the multi-discipline athlete. Marcello Leone, son of the founders of Vancouver-based multi-brand luxury retailer Leone, took the company over in 2014 and spearheaded an overhaul which saw its headquarters moved from the United States to Canada, choosing his hometown of Vancouver to be its new corporate address. RYU’s intention is to become the world’s top multi-discipline performance training and fitness brand, according to Mr. Leone. Jeri Brodie of Aurora Realty Consultants represents RYU as broker in Canada.

Cadillac Fairview Partners with Rideshare Provider Lyft

Landlord Cadillac Fairview and transportation company Lyft have partnered to create a dedicated Lyft drop-off zone at the CF Toronto Eaton Centre. 

It’s the first partnership of its kind for both parties, and will provide access to the downtown Toronto centre which is said to be the busiest in North America with more than 50-million annual visitors. The centre is accessible by transit, though getting to the centre and finding parking can be a challenge — and many people in Toronto are choosing not to drive their own cars. 

The Lyft pick-up zone will be on James Street at Albert’s Way, located outside of Aritzia at CF Toronto Eaton Centre’s west exit. An enhanced app experience allows riders to better select where they want to be dropped off and picked up based on what restaurant, office or retailer they are visiting and special offers will also be available shortly after the launch of the program. 

CF Toronto Eaton Centre was the proud winner of a 2018 Lyftie Award, celebrating North America’s most-visited destinations, in the ‘Only in Toronto’ category earlier this month. New Lyft users are invited to partake in the celebration and are eligible to receive $5 off their first four rides until January 31, 2019 with a Special Rider Code: RIDE2SHOP.

Automated Pizza Retail Concept Aims to Disrupt Industry [Photos/Video]

By
Craig Patterson
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An automated pizza concept has launched in Canada and it plans to disrupt the industry as it  grows rapidly. The first ‘flagship’ location in North America for ‘PizzaForno’ was unveiled last week in Toronto’s Bloor-Yorkville neighbourhood, and its goal is to expand to as many as 200 locations by the end of 2019. 

The concept is similar to a vending machine that makes pizzas on the spot, which can be purchased cooked or frozen to heat at home. It was tested recently in Toronto’s Entertainment District prior to securing permanent locations. 

The PizzaForno food tech innovation was created in France, producing fresh artisan pizzas that are ready in under three minutes. Customers can choose from four selections on a digital screen (including Chèvre-miel, BBQ Chicken, Pepperoni, and Mozzarella) with more options to be introduced next year. 

PHOTO: THE PIZZA FORNO FACEBOOK
CLICK FOR INTERACTIVE GOOGLE MAP

The 12-inch pizzas are made by hand with an ‘authentic Italian approach’ that includes a romana crust, locally sourced ingredients that are said to be natural and fresh, as well as quality cream-based and tomato sauces. Prices range from $11 to $14 for each pizza, including HST.

“PizzaForno will cause a pizzaruption in Canada because it’s the height of food tech and convenience offering uncompromising, authentic pizzeria quality 24/7 – with no tipping required,” said Les Tomlin, President of PFX Canada Inc.  

Each PizzaForno location holds 70 12-inch pizzas, which are crated using hand-stretched crusts made from Italian Caputo flour. The pizzas are freshly topped and stored in the refrigerated section of the PizzaForno. After a customer orders from the 32-inch interactive screen, a robotic arm takes their selection from the refrigerated section, conveys in to a patented oven where it is baked, placed in a box and delivered to the customer. Below is a video showing how it all works.

PizzaForno partnered with Regina-based FrontRunner Technologies for the new Bay Street location. FrontRunner is responsible for immersive digital content on the 20-feet of windows fronting onto Bay Street. We recently featured FrontRunner Technologies in Retail Insider, as the innovative company has been animating vacant store windows on urban street fronts in cities such as Vancouver and Toronto, with further expansion ongoing. 

The Bloor-Yorkville PizzaForno is located just north of the Calii Love restaurant at 1235 Bay Street (between Cumberland Street and Yorkville Avenue), occupying a relatively small amount of real estate in the front part of a retail space formerly occupied by a Persian rug retailer. The busy neighbourhood includes a mix of locals and visitors. Rapidly growing Bloor-Yorkville will see thousands of new residential units added over the next five years, and it is already a significant employment node for the city, as well as a popular (and in some cases high-end) shopping district. 

There are also other food options in the immediate area, including pizza restaurants such as Pi Co. which is located directly across the street. The PizzaForno’s value proposition includes speed as well as 24/7 availability, and it could take some market share away from competitors. 

  • PHOTO: THE PIZZA FORNO FACEBOOK

PizzaForno’s rapid expansion continues this week with the Monday opening at the Dixie Outlet Mall in Mississauga. The location will be PizzaForno’s first in North America in a mall, located in the food court area. The expansion will continue into January by opening in 20 PenguinPickUp retail locations, as well as additional retail and office locations in the Greater Toronto Area. 

Mr. Tomlin said that he will first focus on the Toronto area initially before expanding the concept into other parts of Canada. The goal is to have about 200 PizzaForno locations in the country before the end of 2019. PizzaForno is working with Suzanne Cayley, Vice President of Speciality Leasing at Aurora Realty Consultants on the expansion. Ms. Cayley explained via email to Retail Insider that PizzaForno is able to accommodate short and long-term locations on street-fronts, in enclosed malls, mixed-use buildings and residential buildings. Required square footage is generally only between 65 and 100-square-feet.

PizzaForno was first on our radar when we attended the International Council of Shopping Centres (ICSC) Toronto Convention in October of this year. The technology was demonstrated and free pizzas were given away as samples, and the exhibit was very popular. Mr. Tomlin explained that Aurora Realty Consultants had been retained for PizzaForno’s expansion about a week before the Toronto conference. 

Entrepreneurs Les Tomlin and William Moyer are responsible for introducing PizzaForno to Canada. The concept is based on technology from SAS Adial (based in Liseux, France). TFI Food Equipment Solutions from Brampton is the exclusive distributor partner in North America for Adial.

(Updated) Miniso Canada Claims to have Reached Preliminary Agreement After Bankruptcy Application Brought by Chinese Parent Company

By
Craig Patterson
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*Update [December 18, 2018] — Miniso Canada claims on social media that it has reached a preliminary agreement with ‘Miniso China’ in a case that could have forced the “Japanese” discount retailer’s Canadian division into bankruptcy. We have requested an interview with the company and will follow up on this story upon a satisfactory confirmation of the settlement claim. Sources quoted in this story maintain that Miniso Canada has been questionable in its business dealings in this country, both with commercial real estate brokers as well as with management. The original story is below, where we discussed the public filing of a Notice of Hearing of Application for Bankruptcy Order, which is a publicly accessible document on the BC Courts website.

*6:00pm December 18: We’ve tried repeatedly by phone and email to reach Miniso’s public relations division today (after an email was provided by Miniso Canada on social media) and the company has been unresponsive to our repeated requests.

The Chinese parent company for retailer Miniso Canada has brought an application to initiate bankruptcy of the Canadian division, claiming that the Canadian division has been fraudulent in its business dealings by transferring and hiding assets. The parent company is claiming debts owed in excess of $20-million, and has retained a law firm to proceed with the application for bankruptcy that will be heard next month. Sources are saying that Miniso’s Canadian division has a pattern of unethical behaviour, and some sources have speculated that the parent company is pulling out because of the recent arrest of the daughter of the founder of Chinese tech giant Huawei.

It’s a shocking twist to the story of Miniso, which entered Canada last year with audacious plans to open 500 Canadian stores within three years. Miniso opened its first Canadian store in Vancouver in the spring of 2017, and it now operates 48 stores in the provinces of British Columbia, Alberta, Ontario, Quebec and Nova Scotia where on Saturday, Miniso Canada opened its newest store at the Halifax Shopping Centre, with many more planned.

Miniso was somewhat controversial from the outset of its Canadian expansion. The company calls itself a ‘Japanese lifestyle brand’ although it is headquartered in China, and its branding and stores copy elements from retailers such as Uniqlo and Muji. Some even claim that Miniso’s Japanese co-founder was hired as an actor in order to align with the brand’s ‘Japanese’ positioning. Miniso is a value-priced retailer that offers a range of about 2,500 branded SKU’s such as electronics, clothing, toys, underwear and other accessories, with prices between $2.99 and $34.99.

JUNYA MIYAKE (FOUNDER/CHIEF DESIGNER: LEFT) AND YE GUO FU (MINISO PRESIDENT). PHOTO: MINISO LIFESTYLE SOUTH AFRICA. SOME CLAIM MR. MIYAKE IS A HIRED FIGUREHEAD FROM JAPAN TO LEND CREDIBILITY TO MINISO’S ‘JAPANESE LIFESTYLE’ CLAIMS.

On Wednesday, December 12, parent company Miniso International Hong Kong Ltd. and Miniso International (Guangzhou) Co. Ltd. filed an Application for Bankruptcy Order in the Supreme Court of British Columbia via its retained law firm Fasken Martineau DuMoulin LLP. A Notice of Hearing of Application for Bankruptcy Order is proposed to be held at the Vancouver Courthouse on the morning of Monday, January 7. The parent company brought the application against three parties in Canada — Miniso Canada Investments Inc., Migu Investments Inc. and Miniso (Canada) Store Inc. In the court documents, the Chinese parent company is referred to as the ‘Applicants’ and the three Canadian companies are referred to as ‘Debtors’. For simplicity in much of this article, we’ll refer to the Applicant as the ‘Chinese parent company’ and the three named debtors as ‘Miniso Canada’, with variations and in some cases naming individual parties for clarity.

According to the Application, if Miniso Canada doesn’t reply to the Notice of Hearing in time and/or does not show up to the hearing, the Chinese parent company has the opportunity to apply for an order of bankruptcy of Miniso Canada so that it may collect on substantial debts. In the filed Application for Bankruptcy Order, Miniso Canada’s records offices are stated to be 2700, 1055 W. Georgia Street in Vancouver, which are the offices of DS Lawyers Canada LLP.

In the Bankruptcy Application, the Chinese parent company claims that Miniso Canada owes the Canadian dollar equivalent of US $2.4-million in loans to the parent company, as well as the Canadian dollar equivalent of 91,785,280.32 Chinese Yuan Renminbi (which is a bit less than $18-million Canadian) in inventory, with an additional request by the parent company for costs, expenses and interest. The application states that the Canadian division ceased to meet their liabilities as they came due for both debts. Repeated demands were made by the parent company without success, the document states.

PHOTO: MINISO CANADA FACEBOOK

The Chinese parent company claims in the Application that the Canadian division has “committed acts of bankruptcy within the six months preceding” and that Miniso Canada had, “in Canada, made a fraudulent gift, delivery or transfer of the Debtor’s property, or part of it”.

The parent company claims in the Application that Miniso Canada transferred or “made a gift of inventory” that was provided by the parent company to the Migu Store Corporations. Furthermore, the Application claims that Miniso Canada has “assigned, removed, secreted or disposed” of the parent company’s property with the intent to “defraud, defeat or delay its creditors” by “assigning ‘or disposing” of inventory to Migu Store Corporations.

As mentioned above, the Chinese parent company claims that the Canadian division’s debt warrants initiating bankruptcy proceedings. Specifically, the parent company had agreements with the Canadian division (including a ’Supply Agreement’) to Mr. Maojia Lim and subsequently, these rights “have been transferred, assigned, or usurped by” the Canadian division without the parent company’s knowledge or consent, going against the agreements.

Furthermore, the Application claims that the Canadian division transferred the intellectual property rights of Miniso Canada to the Migu Store Corporations that was “in a manner contrary to the terms of the Licensee Agreement” and as a result, “the Migu Store Corporations are misusing the IP rights to the detriment” of the parent company’s brand and registered trade-mark. As well, it appears that the parent company may have terminated the rights for Miniso Canada to use the Miniso trade-mark in this country, though stores and branding remain in place.

Miniso’s parent company notes in the Application that they do not hold any security on the Canadian division’s property for debt repayment. Alvarez & Marsal Canadas Inc. has been appointed by the parent company to act as Trustee of the property of the Canadian division as set out in the Application document.

Henry Louis, founder and Editor-in-Chief of Canadian industry publication Insolvency Insider, said, “Applying for a bankruptcy order is not the most common way to deal with related party disputes, but it can be a powerful tool.” He went on to explain, “If the order is granted, the assets of the Canadian entities would vest in a Licensed Insolvency Trustee, who would then seek to realize on these assets for the benefit of all the companies’ creditors. The trustee would also be tasked with reviewing the bankrupt companies’ activities and would have the ability to reverse transactions that are deemed to be preferential to certain shareholders or creditors.”

If details in the legal filings are indeed true, it would fit an ongoing pattern of unethical behaviour by Miniso Canada that sources say have left a trail of financial destruction in Canada.

One source said that Miniso had been unethical when dealing with some commercial real estate brokers, and requested we not provide further details in this article in order for them to remain anonymous. Another source claims that Miniso Canada induced highly skilled retail professionals to leave secure employment in order to launch Miniso in a new province. Within six months of establishing several stores in the province, the retail professional’s employment would be promptly terminated so that the local licensee could take over the thriving operations. The ownership arrangement of Miniso Canada was said to be unique — the Canadian division would initially own a slight majority of the provincial franchise for Miniso and after opening several stores, the local partner would gain a majority share in order to continue with the operations.

Some sources we’ve spoken with for this story are speculating that Miniso’s Chinese parent is seeking to pull its assets out of Canada in response to the arrest of Meng Wanzhou, daughter of the founder/President of Chinese telecom giant Huawei. China has threatened Canada by saying that there would be ‘grave consequences’ after Ms. Wanzhou’s arrest in Vancouver on December 1, which was executed on the request of the United States as part of an extradition for alleged fraudulent dealings. However given the ongoing conduct on the part of Miniso Canada from sources we’ve spoken with, such speculation could be incorrect as there appears to be an ongoing pattern of deception prior to Ms. Wanzhou’s arrest.

We’ll follow up on this story as it progresses, and we also expect other media sources will be reporting soon, given the controversy.

BRIEF: Pusateri’s Fine Foods to Close Store, Drake’s OVO Opens to Crowds in Vancouver

By
Helen Siwak
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Upscale Grocery Pusateri’s Announces Closure of Oakville Location: Last week Pusateri’s Fine Foods owners Ida Pusateri and Frank Luchetta announced on their Facebook page that they would be closing the Oakville location of their family business. Opened in July of 2016, the 18,000-square-foot Oakville location was the first and only store for the company outside of Toronto. 

“We have truly appreciated the opportunity to share our wonderful foods and shopping experience with the Oakville community and would like to express our gratitude to our valued guests and the business community for all their support. We look forward to our remaining time at Oakville Place and will be fully operational to serve you through the holiday season.”

The company’s other Toronto locations, as well as the Saks Fifth Avenue food halls in CF Sherway Gardens and CF Toronto Eaton Centre are not affected by the closure.

Citing low sales as the reason for the closure on December 31st, Pusateri’s is engaging with commenters on social media feedback and say they are committed to providing relocation positions within their network for staff members.

Oakville is home to one of six Whole Foods locations in the GTA, and last week Farm Boy opened its first store in the city as well.

Cadillac Fairview Gets In the Spirit with CF ‘Gift Wrap Valets’: CF Sherway Gardens and CF Toronto Eaton Centre surprised shoppers on December 11th, during the annual holiday hustle with helpful random acts of kindness. A fleet of uniformed bellhops helped amplify the holiday spirit by helping guests with their holiday parcels and handing out complimentary vouchers for the CF Gift Wrap Valet.  

The CF Gift Wrap Valet at CF shopping centres across Canada is a pop-up service that provides a unique and efficient gift-wrapping experience. Guests are invited to bring their unwrapped gifts to be wrapped as part of a special white glove, valet service. Within the lounge, guests can relax, and a portion of the proceeds will go to WE, CF’s national charitable partner, supporting youth empowerment programming in Canada.

If you are leaving your shopping until the last minute, consider doing it at CF Toronto Eaton Centre on Thursday December 20th, because this is the second instalment of the holiday hustle and last day that the uniformed bellhops will be helping out.