Niche Toronto-based bakery chain Sorelle & Co. is continuing to grow—just two years after making its debut—with a new location that opened in Etobicoke last week.
The bakery and cafe chain, which now operates four locations throughout the Greater Toronto Area, specializes in gluten-free, soy-free, vegan, nut-free and preservative-free baked goods—with an elegant twist. The cafes are designed to be beautiful, sophisticated spaces—reminiscent of high-end tearooms—and the baked goods themselves are colourful and artistic.
“It’s a unique approach to food, where we mix refined elegance with healthy organic ingredients,” says Jean-Charles Dupoire, culinary director at Sorelle & Co.
Although the chain’s target market includes customers with allergies and dietary restrictions, Dupoire says Sorelle’s offerings appeal to everyone.
“Taste and texture is not compromised,” he says. “It is not only geared to people with allergies or Celiac, but for all to indulge on desserts that contain quality ingredients.”
Sorelle opened its original location—the flagship—in mid-2016 in Vaughan. It was founded by a mother of five daughters, all of who suffered from various food allergies, such as gluten, dairy, egg, soy and nuts. Having had trouble finding restaurants and bakeries that were free of all of those ingredients, she decided to launch Sorelle as a destination for people struggling with similar allergies and food sensitivities.
Since day one, it’s been clear that there’s a significant market for allergen-free foods, Dupoire says.
“We wish there where more places for people to go to feel safe, hence why we have opened four locations in two years,” says Dupoire.
Sorelle offers both sweet and savoury items, and offers high tea service. The chain also makes custom cakes to order. Some of the most popular items include brownies, donuts, cookies and pies.
Following the launch of its Vaughan flagship, Sorelle opened a concession in the Pusateri’s Food Hall at Saks Fifth Avenue in downtown Toronto, followed by a location at the base of the former Four Seasons Hotel on Avenue Road in Toronto’s Yorkville neighbourhood.
“Yorkville to us was the perfect location to feature our brand, not to mention satisfy the downtown customers,” says Dupoire.
The newest bakery is located on The Queensway between Islington Avenue and Kipling Avenue – a high traffic retail area in Etobicoke, at the base of a condo building.
The standalone locations range in size from 1,300 to 2,700 square feet, with between 20 and 42 seats for customers. They’re designed to be bright and spacious, dominated by shades of white and gold, with floor-to-ceiling windows, elaborate chandeliers and classic floral arrangements.
“The inspiration behind the design was to create a special place that people could get the feeling they are celebrating,” says Dupoire.
In addition to its own locations, Sorelle is exploring distribution partnerships with various hotels, grocery stores and catering ventures.
“Most kitchens in banquet halls, hotels and grocery stores are unable to produce pastries and desserts that are allergy friendly or celiac friendly because they don’t have a space that is contained to avoid contamination to guarantee customers’ safety,” Dupoire says. “This is why we are receiving so much interest—our kitchen is 100% free from all of these ingredients.
Canadian retail sales keep stumbling along at a modest pace, according to the latest Statistics Canada data. For the 3 months ending August, total Canadian retail sales were up 3.7% on a non-adjusted basis. This is about half the 7.1% gain recorded for last year overall.
The 3 month growth trend (orange line in the chart above) continues to track below the underlying 12 month trend (green line), which in turn has been on a consistent slide since the start of the year. The upcoming 2018 holiday sales season doesn’t look too promising at this stage.
Rising gasoline prices are also masking the general deterioration in retail. For the first 8 months or 2/3 of 2018, year-to-date retail sales were up 3.6% with gas stations included, but up only 2.6% when gas stations are excluded. In other words, gas price increases are adding a full percentage point to total retail sales growth than would otherwise be the case. The chart below shows the trends without gasoline stations, and this betrays an even steeper slide in retail sales growth in 2018.
Food & Drug
The Food & Drug sector has had a tough time so far in 2018. Retail sales are up only 1.2% year-to-date to August 2018, after 2/3 of the year. While the 3 month growth trend (orange line) has had a small uptick lately, it is still at a relatively low point. The underlying 12 month trend (green line) weakened last year and this has become an even steeper descent so far in 2018.
Just over 75% of the sales in this sector are in two store types, both of which have experienced actual retail sales declines thus far in 2018. Supermarkets & other grocery stores’ sales were down 0.3% after 8 months of the year, while health & personal care stores were down 0.1%. Mama, don’t let your babies grow up to be grocers or pharmacists.
The smaller store types in the Food & Drug sector however are doing comparatively well. Specialty food stores, convenience stores, and beer, wine & liquor stores are all up 5% or better year-to-date.
Store Merchandise
Retail sales growth in Store Merchandise is higher than for the Food & Drug sector. After 8 months of 2018, the Store Merchandise sector’s retail sales were up 4.3%, which however represents a decline from the 6.5% annual growth recorded for 2017. Nevertheless, current retail sales growth levels are in line with prior years.
The 3 month growth trend (orange line in the chart above) has steadied since about Q2 2018. After a remarkable run in 2017, the underlying 12 month trend (green line) has declined, but should stabilize by the end of the year.
Electronics & appliance stores continue to do well, with retail sales up 10.8% after 8 months of 2018. The murky miscellaneous store retailers also recorded an above average 9.1% year-to-date sales increase, while clothing stores gained a respectable 5.5%.
On the other hand, retail sales at shoe stores are down 1.2% year-to-date thus far in 2018, and sporting goods, hobby, book & music stores barely got ahead with a 0.3% gain.
Note that Statistics Canada is now suppressing the breakdown of general merchandise stores for confidentiality reasons. The figures in the table below are estimates based on previous trends.
Automotive & Related
When gas prices go up at the same time as when new vehicle sales are hot, the Automotive & Related sector booms. This was the case last year, in 2017. But this started to change late last year when new car dealers’ retail sales hit the brakes. After 8 months or 2/3 of 2018, year-to-date sales at automobile dealers are up only 1.4%.
Gasoline stations, on the other hand, made up for a big portion of this. Their year-to-date retail sales are up 16.8%. It’s all due to higher gas prices at the pump however, not because of drivers somehow wanting to buy that much more fuel for their vehicles. Gasoline prices are now stabilizing however, and retail sales gains are likely to flatten out. This in turn will bring down overall total retail performance statistics.
By The Numbers
Special Note: Statistics Canada has made updates to 2017 numbers, and has also moved retail storefronts of telecom companies out of electronics & appliance stores and into a non-retail category, Telecommunications (NAICS 513). Retail trade statistics have been revised back to January 2012.
Canadian E-Commerce Sales
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 2.8% of total Canadian retail sales for the 12 months ending August 2018, 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 13.5% year-over-year for the 3 months ending August 2018, but this is much less than the 3.9% gain recorded in the same period a year ago. E-commerce retail sales gains are still in double digits, and are still much higher than for location based retail, but growth is slowing down.
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 August 2018, electronic shopping and mail-order houses had an estimated $9.8 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 August 2018, this group had an estimated $7.2 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $17.0 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 businesses.
For electronic shopping and mail-order houses, an estimated 83.3% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that just 1.2% of their total sales come from 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 57.7% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 42.3%.
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.
CHINOOK CENTRE STOREFRONT. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
Paris-based luxury brand Louis Vuitton has opened its first standalone store in Calgary as it shifts its strategy to open standalone stores in major malls. The beautiful 4,450 square foot CF Chinook Centre store was busy on its opening weekend, according to shoppers in the mall, and its success could lead to other luxury brands looking to open in the centre.
At the same time, Louis Vuitton’s ground-floor concession at Holt Renfrew in Calgary’s CORE shopping centre has closed, marking the end of the brand’s run in the city’s downtown where it has been doing business for many years. The brand operated a small concession at Holt’s former downtown Calgary store which, in 2008, relocated to a much larger space that was originally created for now defunct department store chain Eaton’s.
Vuitton’s CF Chinook Centre store took up four former retail spaces and is located on the mall’s ground level across from the mall entrance to anchor Saks Fifth Avenue, which opened in February of this year. The impressive Vuitton store features a curved facade consisting of a combination of Lacewood in a stitch pattern with brushed copper and pale gold trim with an integrated flower pattern metal mesh.
CHINOOK CENTRE STOREFRONT. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
LOUIS VUITTON MARKED IN BLUE. CLICK IMAGE FOR INTERACTIVE CF CHINOOK CENTRE FLOOR PLAN
The store includes a room dedicated to travel with an on-site hot stamping machine. For the first time in Calgary, the store features a footwear department for men and women, and it also carries a range of leather goods and accessories. The store lacks Vuitton’s ready-to-wear collections, however, which are only found at its standalone flagships at 150 Bloor Street West in Toronto as well as at the Fairmont Hotel Vancouver.
Retail Insider’s Mario Toneguzzi wrote about the Calgary store’s opening last week, where a retail expert and mall management commented on the opening, as well as what it represents for the centre and the city.
Vuitton’s move to CF Chinook Centre could help landlord Cadillac Fairview secure other luxury brands for the mall, which already houses prestige retailers such as Tiffany & Co., Burberry and Harry Rosen. Nordstrom opened its first store in Canada at CF Chinook Centre in September of 2014 and its other anchors include Saks as well as a Hudson’s Bay store, which offers the most upscale offerings of any Bay store in Alberta.
CHINOOK CENTRE STOREFRONT. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
CHINOOK CENTRE LOCATION INTERIOR. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
CHINOOK CENTRE LOCATION INTERIOR. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
CF Chinook Centre sees about 14-million visitors annually. While the downtown CORE might claim higher numbers, many of those are office workers whereas CF Chinook’s footfall is, for the most part, consumer driven. Weekends at CF Chinook Centre can be packed while the downtown core feels a lot quieter.
Louis Vuitton operates stores across Canada. The luxury brand opened its first Canadian store at 110 Bloor Street West in Toronto in 1983, spanning about 2,000 square feet. A second location opened as a concession at Holt Renfrew in downtown Vancouver in 1987 and in 1989, another concession opened inside of the Ogilvy department store in downtown Montreal. Louis Vuitton’s second standalone store in Canada opened in 1996 at the Fairmont Hotel Vancouver and in late 2010, it was expanded to 10,000 square feet, making it the first ‘Maison’ in Canada and Vuitton’s 12th globally at the time (to mark the occasion, the company spent $1.5-million on a party that included a trip on a 70-year old steam engine train).
In Toronto the spring of 2012, Louis Vuitton vacated a 6,000 square foot flagship store at 111 Bloor Street West for an 18,000 square foot ‘Maison’ flagship location at 150 Bloor Street West where it continues to operate to this day. Louis Vuitton also operates concessions at Holt Renfrew stores in Vancouver (which was vastly expanded in 2016), Edmonton, and at two Holt Renfrew stores in Toronto (50 Bloor Street West and Yorkdale Shopping Centre). In Toronto, as well, Louis Vuitton operates a 1,200 square foot concession inside of Saks Fifth Avenue at CF Toronto Eaton Centre (it opened in February of 2016, facing the southwest corner of Queen Street West and Yonge Street) as well as a 3,200 square foot concession at Ogilvy in Montreal.
And while the CF Chinook Centre store is the only standalone location for the brand in Alberta, Vuitton operated a 3,000 square foot store at Banff’s Cascade Plaza shopping centre which closed in the spring of 2011.
CHINOOK CENTRE LOCATION INTERIOR. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
CHINOOK CENTRE LOCATION INTERIOR. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
CHINOOK CENTRE LOCATION INTERIOR. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL
Louis Vuitton is picking up the pace with its expansion in Canada. Last fall, it opened a men’s shop-in-store at Holt Renfrew in Vancouver, which remains one of only a handful in the world to date. That Vancouver concession marked the beginning of a significant expansion for the brand in Canada that will continue well into 2019.
Towards the end of this year, Louis Vuitton will unveil a substantially expanded concession at Holt Renfrew at 50 Bloor Street West in Toronto and according to a building application, it will encompass about 2,650 square feet. Standalone units in Edmonton and at Toronto’s Yorkdale Shopping Centre are also in the works, according to Louis Vuitton, and the brand will also grow its presence at the new ‘Holt Renfrew Ogilvy’ which is under construction in Montreal.
Louis Vuitton is a division of luxury conglomerate Louis Vuitton Moet Hennessy (‘LVMH Group’), which includes several leading luxury brands under its corporate umbrella. Louis Vuitton was founded by a man of the same name in 1854, and now boasts a network of nearly 500 stores globally. The company saw revenue somewhere between $9.28-billion and $11.6-billion (US dollars estimates) in 2017, placing it as either the top or second luxury brand in the world in terms of annual sales — Chanel saw sales of nearly $10-billion US dollars last year, according to the company. Italian luxury brand Gucci, which is seeing explosive growth, is expected to surpass both of them by the end of this year after seeing about $7.1-billion US dollars in revenue in 2017.
Leon’s Furniture Limited, Canada’s largest furniture and appliances retailer, is investing heavily in e-commerce to grow the company’s business in that platform.
It announced last week that Shopify will power all of its portfolio of online stores, including leon’s.ca, thebrick.com and furniture.ca on the Shopify Plus platform, which powers large and growing online stores and brands.
Edward Leon, President and CEO of Leon’s Furniture, told Retail Insider that the company has been in the e-commerce business for well over 20 years.
“Our sister company The Brick started in it before Leon’s did,” said Leon. “So we’ve had experience growing up in the business. It’s undeniable. Obviously there’s continued increased interest and awareness around what the web can do for both the retailer and the consumer at large. It’s something that we’ve embraced and wanted to expand our capability.”
Leon said the company is also working on the development of dedicated apps that will significantly improve customers’ online shopping experience. Some of these enhancements include intelligent room planners, virtual decorating, and augmented reality capabilities where shoppers can place items from the online store against a backdrop of their own rooms. Additional features that will be offered to customers on LFL’s online stores include instant deferred payment options, and enhanced delivery features.
“Emerging technologies and changing shopping behaviour forces retailers to re-think how they operate and transform their business to create a truly seamless shopping experience between the online website and traditional brick and mortar store. To win in the retail space, and specifically in the industry segment in which LFL operates, requires mastering both our chain-wide in-store customer experience and our e-commerce offerings across all of our online properties,” said Leon.
Leon’s Furniture Limited is the largest retailer of furniture, mattresses, appliances and electronics in Canada and operates under the following retail banners: Leon’s; The Brick; The Brick Mattress Store; and The Brick Outlet. With the Midnorthern Appliance banner alongside the Appliance Canada banner, it is also the country’s largest commercial retailer of appliances to builders, developers, hotels and property management companies. LFL has 304 retail stores from coast-to-coast in Canada.
286 FAIRWAY ROAD LOCATION IN SOUTH KITCHENER, ONTARIO. PHOTO: LEON’S FACEBOOK
LEON SAID THE COMPANY IS WORKING ON THE DEVELOPMENT OF DEDICATED APPS
Leon said the company selected Shopify partly because of what it could offer Leon’s but also because of “their willingness to want to be the leaders in terms of refining that customer experience.”
“It aligned itself well with what we were trying to do and so right from the get go it seemed like a very natural partnership,” he said.
“Times are changing especially with the demographics of a younger crowd. More tech savvy. More comfortable dealing over the web than perhaps more traditional customers. It was very obvious to us that we had to be strong because we are Canada’s leader. We are the largest retailer in our category of goods and we’re obviously very protective of that and we don’t want to go backwards. We want to lead the way. So that’s what this whole initiative is about.”
In Canada, in Leon’s industry, e-commerce sales are tracking less than five per cent of the overall business that’s being done which is about half of what it is in the U.S., explained Leon.
“If you want to include accessories and all home furnishing like products, if that’s a $17 billion business, you can do the math to find the size of the market today and potentially where it can be,” he said. “I think we’ve lagged behind the U.S. for many years but I think you’re going to see in the next few years us shortening that gap – the difference between what percentage of business is done online in our industry here versus what it is in the U.S.”
Leon said there are still markets in the West, particularly for Leon’s, and in the East, for The Brick, that the company can grow its physical footprint across the country.
“We might downsize some of our physical requirements from what we have historically done because part of the e-commerce strategy is to augment the in-store experience by means of opening up a virtual unlimited showroom to consumers and therefore not requiring the size of the showrooms that we had in the past which all plays well because in retail your cost of operation is critical to your success and unfortunately rents aren’t coming down too quickly any time soon,” said Leon.
“We have to be mindful of always expanding in a profitable, long-term way that makes sense. And we believe a smaller footprint in addition to whatever augmentation we can add through the web or digital experience in-store is something we’re going to invest in a big way.”
Montreal-based jewellery retailer Birks is expanding its presence in Vancouver this fall with the unveiling of two luxurious jewellery and watch brands. An official boutique for UK-based diamond retailer Graff will open on West Georgia Street, and Swiss luxury watch retailer Patek Philippe will open next to it. Both are set to open towards the end of November, and both will have separate street-facing entrances.
It’s the first time that Graff will have a presence in Canada. The brand is showcasing a selection of its jewellery and timepieces at Birks’ Yorkdale Shopping Centre store in Toronto until November 11, prior to the the Vancouver store opening. Graff and Birks’ representatives were in Toronto this week to show the impressive Graff collections.
Geneva-based Patek Philippe, which sells some watch styles in excess of $100,000 each, has a presence in a handful of high-end jewellers nationally. A selection of premium timepieces will also be showcased in the new official Patek Philippe salon, which will be one of only a handful globally for the brand.
The Graff and Patek Philippe boutiques will be connected internally, though from the outside, they will have their own entrances and retail signage. Inside, they will share the same cashiers as part of Birks’ operations.
The 575 square foot Graff salon will feature a selection of Graff jewellery, engagement rings and timepieces, and “will house decadent, brushed- gold vitrines, showcasing one-of-a-kind high jewellery suites, irresistible fine jewellery collections and ground-breaking timepieces” according to the company. Some pieces on display in the Vancouver Graff salon will be one-of-a-kind, including an impressive jewelled necklace we were shown that was priced at just under $1-million. Pieces selling for in excess of $1-million are expected to follow as the store tests the market, though it also has some less costly items with prices beginning at about $6,000. Graff is expected to do well in Vancouver — the brand is popular with an affluent Asian demographic, and Vancouver is known to be a significant target for Asian tourists as well as residents who have chosen to live in the city either full-time or part-time.
Chairman Laurence Graff and CEO François Graff at official opening of Hong Kong Central flagship.
Graff’s CEO, Francois Graff, said, “Canada is an important market with a discerning and international clientele; this is a prominent retail destination for Graff and we are delighted to be exclusively represented by Birks Group, whose name is synonymous with luxury.”
“We are proud to be the only retailer to carry such an elite brand such as Graff,” said Jean-Christophe Bédos, President and CEO at Birks Group Inc. “We are committed to bringing brands to Canada that house innovation and quality and that will ultimately elevate the luxury shopping industry.”
Graff’s website has listed its Vancouver address as being 1014 W. Georgia Street, which is part of the ‘Burrard Building’ which houses boutiques for brands such as Tiffany & Co., Jimmy Choo, and accessory retailer Artino. At least three more luxury brands are confirmed to be moving into the base of the Burrard Building in 2019.
Vancouver is seeing an unprecedented number of luxury brands moving into its downtown core, many of which focus on jewellery and watches as well as leather goods and other accessories. West Georgia street is now finding itself becoming a luxury retail address of its own, located a short block north of the Alberni Street ‘Luxury Zone’ that has been undergoing a transformation for the past several years.
Graff was founded by Lawrence Graff in London in 1960, and the company operates a highly selective network of standalone stores and concessions worldwide. Graff boutiques can be found in major world luxury capitals and in the United Staes, Graff operates six standalone stores in New York City, Bal Harbour FL, Chicago, Las Vegas, Palm Beach and San Francisco, as well as concessions at Saks Fifth Avenue stores in New York City, Beverly Hills, Greenwich CT, Houston, and at Tyson’s Corner in suburban Washington DC. Graff is a highly respected company which says that its diamonds are sourced ethically, and it publishes a bi-annual client magazine called ‘Graffiti’ both in English and in Chinese. Lawrence Graff was said to be worth US $5.6-billion as of April 2018.
Geneva, Switzerland-based Patek Philippe was founded in 1851. The company designs and manufactures timepieces and movements, including some of the world’s most complicated watches. As such, it is considered to be one of the world’s most prestigious manufacturers and prices of some of its designs are astronomical. The company has been owned by the Stern family since 1932, and it has distribution in more than 400 retailers globally. The company operates only a handful of storefronts globally and Vancouver will become one of few cities in the world to have a standalone space dedicated to the brand.
The massive Royalmount mixed-used development in the Town of Mount Royal in Montreal is set to begin construction in the spring, paving the way for the city’s future world-class lifestyle and shopping hub.
On Thursday, Carbonleo and L Catterton Real Estate, the developers of the project, announced that site preparation is underway at the southwest corner of Décarie Expressway and Highway 40 to prepare for the construction of this new urban destination. The developers say the privately funded project will become a world-class lifestyle hub and a state-of-the-art destination for the surrounding community, the city as a whole, and visitors from abroad.
The first steps in preparing the site for construction will be the demolition of buildings located at 8400 and 8600 Décarie Boulevard while those at 8300 and 8500 will be preserved for future integration into the Royalmount project, said Nicolas Désourdy, Carbonleo’s Executive Vice-President & Partner, Leasing.
“The project has actually started,” said Désourdy. “Demolition has started on the biggest building on site, at 8400 Decarie, which we’re tearing apart as we speak − and 8600 Décarie is going to go under demolition very shortly. When you put all that together, I think it’s a pretty exciting time. It’s a spectacular mixed-used retail project that will redefine how Montrealers shop and are entertained. Our first deals are signed and it’s happening.”
He said no less than 80 per cent of the materials – concrete, wood, glass, steel, copper and aluminum – will be recuperated on site and recycled.
“While continuous discussions are underway with local partners and authorities, plans are in place to keep inconveniences down to a strict minimum for local businesses and residents during terrain preparation for Royalmount,” said Désourdy.
Royalmount is located in the heart of the island of Montreal, transforming a former industrial district into a cultural and commercial hub of mixed-used development in about 3.6 million square feet of retail, hotel, hospitality and office space. The developers control over 74 acres of land at the site and the project will create 15,000 new jobs.
Désourdy said the retail component will consist of about 1.4 million square feet of space with most of it enclosed in a mall environment with a “mid to high-end offering and flagship stores.”
“In that retail, there’s a large food and beverage component with over 100 food and beverage options including a food court, a food hall, sit down restaurants, cafes and bars,” he said.
A piazza and high street area will make the site a popular and vibrant destination for shoppers, people dining out, and for simply hanging out in what will be Montreal’s newest hot spot.
Désourdy said there are plans for five to seven hotels on the site with the potential of up to 1,500 rooms.
Two buildings on site will be kept for office space with over 240,000 square feet of space.
PHOTO: CARBONLEO
PHOTO: CARBONLEO
“We’re going to add probably another 250,000 square feet and then we have the ability to add another million. We could go up to 1.5 million square feet but with office space it’s a little bit different because it’s market driven. It depends on the demand,” said Désourdy.
The Royalmount development will be about four years in the making with opening expected in the fall of 2022.
“If you look at the site, it’s the epicentre of Montreal. It’s centrally located on the island. It’s next to one of the city’s wealthiest neighbourhoods. Also, in being next to Highway 15 and Highway 40, it offers the best visibility in the province,” said Désourdy. “It’s 360,000 cars per day passing through this interchange.”
Royalmount will also be directly connected to the subway.
PHOTO: L CATTERTON REAL ESTATE
PHOTO: CARBONLEO
“The other interesting part for Montreal is the whole luxury market. If you look at Montreal and you compare it to Toronto which has many luxury nodes . . . Montreal really has only one place to go which is a shop-in-shop experience at Holt Renfrew next to our Four Seasons project. There’s really a void in Montreal for the luxury market and what we’re seeing so far is a very strong interest from the luxury retailers. Retailers are ready to commit to projects that have a vision and that integrates the mixed-use component, the public transport connection, the food and beverage, the entertainment, the hospitality. They see the added value and really, what they want is traffic coming into their stores. By combining all these uses that’s what we’re bringing to them and they see the added value. They’re actually ready to engage in this project.”
The developers say the hub of Montreal’s new Midtown will be reminiscent of other famous world class central boroughs such as Midtown Manhattan, Tokyo Midtown, and Midtown Toronto. Montreal’s new Midtown will complement other iconic city boroughs such as the Mile End and the Plateau-Mont-Royal, said the developers.
Carbonleo is a private Quebec-based property development and management company with a track record of developing successful next generation mixed-use developments. The company, which employs 50 people and was founded in 2012, has numerous projects in its stable including Quartier DIX30, Royalmount, as well as Four Seasons Hotel and Private Residences Montreal.
L Catterton Real Estate has over $15 billion of equity capital across six fund strategies in 17 offices globally. It is the largest and most global consumer-focused private equity firm in the world. Since 1989, the firm has made over 200 investments in leading consumer brands. L Catterton was formed through the partnership of Catterton, LVMH (Louis Vuitton Moët Hennessy) and Groupe Arnault.
The long awaited Nordstrom Rack store in Edmonton, Alberta is officially opening on October 25, 2018. The off price store’s opening was first announced back in 2016.
The store is located in the South Edmonton Common power centre. South Edmonton Common is a 2.4-million-square-foot power centre and is owned by Cameron Development Group and operated by CREIT (Canadian Real Estate Investment Trust). The store is situated on a triangular shaped pad flanked by the 19th Avenue Fly Over and Gateway Boulevard. This prime location allows cars travelling north on Gateway Boulevard to see the Nordstrom Rack store from the Highway. Over 200,000 vehicles will pass by the store daily. There are dedicated entrance and exit points that were built to accommodate the traffic flow. The store was built from the ground up starting in spring 2018 and is over 35,000 square feet with 143 dedicated parking stalls.
As the off-price division of Nordstrom, Nordstrom Rack offers everyday savings of up to 70% off. The Edmonton location carries an incredible selection of designer and brand name apparel, accessories and shoes for the entire family. There is also a beauty and home section as well. The product assortment is 30% from the main line Nordstrom store and 70% specially purchased product for the store. 38 of the top 50 brands that are available at Nordstrom full line stores are also available at the Edmonton Nordstrom Rack including Ray-Ban, Cole Haan and Theory. Nordstrom has said the store is strategically merchandised by grouping merchandise by gender and category (e.g., jeans, coats, etc.). This allows customers to be more efficient in their shopping and potentially find more treasures.
For men’s fashions, brands included Hugo Boss, Michael Kors, Ted Baker and Zanerobe. With the Athleisure trend still in fashion, the store also carried a wide selection of both men’s and women’s active wear brands including C&C California, Lole and Nike.
The shoe department is stocked with an impressive 27,000 pairs of shoes. For women’s shoes, there is a dedicated designer aisle with brands including Manolo Blahnik, Jimmy Choo and Tod’s. A unique point of differentiation for men’s shoes is that this location stocks shoes up to Size 16. You do not find such a large range of shoe sizes in many stores.
The beauty section carries both department store brands such as Stila and Korres. The store also features the Grab + Go beauty rounder. This assortment of deluxe sizes of premium beauty products which allows customers the opportunity to try these products without the commitment of buying a full sized product. In addition, if customers are interested in the full sized version, they can purchase the products at a full-line Nordstrom store. This strategy helps to increase customer engagement between all Nordstrom stores.
The Edmonton store represents the newest generation of Nordstrom Rack stores. The fixtures are all on casters so that they can be easily flipped out as the merchandise changes. To assist with moving fixtures quickly and efficiently, the entire store floor is polished concrete. There is wayfinding signage around the entire store to assist customer movement instore as well as to delineate the departments. The wayfinding combines being bold and friendly along with the clean signature Nordstrom Rack look. To align with Nordstrom Rack’s strategy of customer convenience, the fitting rooms are self-service and unisex. Nordstrom notes that fitting rooms are used by over 75% of women with men only accounting for 25% of usage. This allows the fitting rooms to be flexed if there is more demand. Another unique feature is there is an area outside of the fitting rooms with a charging table for those waiting for their parties as they are using the change rooms. There is also complimentary Wi-Fi which helps to make the wait times go faster.
The checkout experience is enhanced as there are mobile checkout stands similar to the technology used by Apple Stores throughout the store, allowing associates to cash out customers from anywhere in the store via a mobile device. The mobile checkout stands align with Nordstrom Rack’s strategy of customer convenience. There is still the traditional checkout stand available for larger orders. There are also new payment methods available at Nordstrom Rack including Alipay and WeChat Pay. This should attract international customers that are shopping in Canada.
The selection of South Edmonton Common as the first Edmonton Nordstrom Rack location is ideal. South Edmonton is an affluent quadrant of Edmonton with an average annual income of $114,794 and a population of over 640,000 people within a 20 minute drive. There is a mix of young families, affluent, middle-aged suburban and exurban families that live in this area. The area population is expected to grow by 7% by 2022. The Edmonton market is unique for Nordstrom as it does not have a full line Nordstrom store. In markets across Canada, there are both Nordstrom Rack stores and Nordstrom Department stores which encourage customers to cross shop the stores. With these demographics and unique product mix, this location could be quite successful and be in the running as a top-selling store. If sales prove successful, this may provide the green light for a full-line Nordstrom store to be built in Edmonton. There are many attractive locations in Edmonton especially due to the bankruptcy of Sears Canada which vacated Southgate Centre. This shopping centre is a premier fashion and lifestyle destination in South Edmonton.
The Edmonton store marks the sixth Nordstrom Rack store in Canada with other stores located in Vaughan Mills in Toronto, One Bloor West in Toronto, Deerfoot Meadows in Calgary, Ottawa Train Yards in Ottawa and Heartland Town Centre in Mississauga. While the company says that it could eventually operate as many as 15 Nordstrom Rack locations in Canada, none have been announced.
Head office on dufferin Street in Toronto. Photo: Android Dave
By Mario Toneguzzi
A new trend is emerging in ecommerce in Canada – small to medium-sized online stores are following major ecommerce retailers and moving into brick and mortar spaces.
An example of this is StickerYou, a global e-commerce leader in die-cut sticky products, including stickers, labels, iron-ons and temporary tattoos.
The company will be among the first in the highly-competitive, largely ecommerce-based industry to move into a physical store.
“About eight or nine years ago, we saw that ecommerce was really the future and that you could sell anywhere around the world, you could create the technology. People could order and it would get shipped directly to them,” said Andrew Witkin, the company’s founder and CEO. “We still think that’s incredibly powerful but one thing looking at the future we sort of look at retail differently than maybe it’s kind of been interpreted in the past.
“We actually believe as a company that more like traditional retail we can actually launch a retail store that is different than any other retail store in the world. We would basically be the first dedicated sticker store in the world for purely stickers. Think of about a thousand different stickers in the store. High quality stickers. The kind you might see on people’s laptops or cars or water bottles. They’re all from different artists and different types of themes . . . Given different people’s lifestyles, there will definitely be one if not many different types of stickers that they would find appealing. There’s enough breadth there that it would be quite the experience they would not be able to find anywhere.”
Witkin said StickerYou is currently in final negotiations for a lease to open a store before the end of the year in Toronto.
“Our plan is definitely to do more than one store but that to start from one store, learn from the user experience at that store, how people interact with it, what people want and need, the kind of space we need in the location,” he said. “We’ll look at the first six months as being that evolutionary almost like a test phase and based on what we learn we would then either evolve it to a larger store or a different format and/or also start to expand to other cities.
“We might want to do one or two stores in the city but we don’t look at this as being 10 or 20 stores in a city. It’s a destination to go to in a city and we think with learning from the first store we’ll be able to do that in multiple cities.”
The company’s ecommerce website was launched in 2010. The company is based in Liberty Village in Toronto.
“We built a proprietary ecommerce platform for die-cut products. They include things like die-cut stickers, die-cut labels, decals, separate tattoos, badges, patches. Not that we did all those in 2010. We started with stickers but the technology that we built allowed people to go onto our website, design a sticker, or upload a logo and get a die-cut sticker of it and we can produce that probably more affordably, if you’re ordering let’s say short run, than anyone in North America because we’ve automated a lot of the production process for making that product,” said Witkin.
Online retailers go brick-and-mortar: Above: Toronto-based Fresh City Farms is now opening physical locations and below, Vistaprint opened its very first store in the world in Toronto last year.
The company is a vertical one both producing the product and retailing it at the same time which allows StickerYou to produce it and price it affordably. Unlike some retailers who have a supply chain that stretches out overseas, StickerYou can update and refresh its merchandise based on what’s selling and what’s trending in the market. And it can do that weekly.
“That’s one more reason people might find it experientially a lot more fun to come because you’re always going to see stuff that’s new. The other dimension to the store is we also want to inspire you on the kinds of things you can do with cuts and products via StickerYou,” said Witkin.
“So we’ll not only give you an ability to test out the product and see the quality of the materials we use and how they can be applied to wood or cement or plastic or glass to know they’re a good quality but we also show you different types of things that people can make for their business, for their organization, for their lifestyle. And I think once people see the power of what they can do on a customized basis it inspires them to make things that are very important to their life and order those. But they just kind of need to get a stimulation to it.”
Mario Toneguzzi, based in Calgary has 37 years of experience as a daily newspaper writer, columnist and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, city and breaking news, and business. For 12 years as a business writer, his main beats were commercial and residential real estate, retail, small business and general economic news. He nows works on his own as a freelance writer and consultant in communications and media relations/training. Email: mdtoneguzzi@gmail.com
In Toronto as well, Muji is preparing to open its largest store outside of Asia at The Atrium complex on Dundas Street West near Yonge Street. A temporary location will close on October 29 and when the new one opens late fall, it will span a whopping 19,110-square-feet over two levels. It will be the first two-level Muji in Canada and will feature a central escalator well.
In a press release, Muji said, “MUJI Atrium will offer many products and services never seen before in Canada. Additional details regarding the store will be released at a later date.”
Oakridge & QuadReal To Launch Exhibition with Kengo Kuma Fazioli
In mid-November, QuadReal Property Group will unveil the next step of the Oakridge Centre transformation. The Westbank Exhibition Centre will be assembled and housed in the former Zellers location and will feature a series of installations, which will culminate with the unveiling of a Kengo Kuma designed Fazioli piano commissioned through Showcase Pianos. The world-renowned Japanese architect designed the case which was built of Hinoki Wood over a one year period and comes with a price tag of $890,000.
Currently dismantled and residing in the Showcase Piano’s warehouse in a series of boxes, owner Manual Bernaschek will oversee the assembly of the piano at the location. After the exhibition space is closed, the Fazioli will be moved to the lobby of the ‘Kengo Kuma’ building which is under construction at 1550 Alberni Street.
The exhibition is part of the transformation of Oakridge Centre, which is a 574,000-square-foot shopping centre, which sits on 28 acres of land in the heart of Vancouver’s affluent West Side. It will be transformed into a major 4.5-million-square-foot hub of retail, residential, workspace, parks, and civic space.
Included will be a massive community centre, public library, performance facility, dance academy, daycare, 100,000-square-feet of curated culinary experiences and an approximately nine-acre park — as well as office space and residential towers that will house about 6,000 people in more than 2,600 homes. Oakridge will anchor an up-zoned neighbourhood that is projected to grow by more than 50,000 people within a kilometre radius over the next two decades. QuadReal partnered with Westbank Corp. and together have engaged Henriquez Partners Architects, Tokyo-based interior design firm Wonderwall, and other design partners for this initiative that will be a model for future high-density retail mixed-use redevelopments globally.
Boucheron Parters with Holt Renfrew on Vancouver Pop-Up
Paris-based luxury jeweller Boucheron has popped-up at Holt Renfrew’s mega-productive Vancouver flagship at CF Pacific Centre. Boucheron could end up with a permanent presence at Holt’s if things work out as planned. It is also on display at the Yorkdale store in Toronto.
A source in the industry said that Holt Renfrew has an established budget of $5-million for Boucheron jewellery and will carry several millions more worth of “exceptional jewellery pieces in trunk shows across its top stores in Canada”. If Holt’s sells enough over the eight-month window, Boucheron could end up opening at least one standalone boutique in Canada, according to the source.
The tiny Vancouver Boucheron boutique is located on the store’s ground floor accessory hall, which is said to do astronomical sales numbers in its shop-in-store and concession environment. Vancouver’s Holt Renfrew is said to be selling about $400-million annually in its 188,000-square-foot space anchoring the north end of CF Pacific Centre.
Holt’s Vancouver store also recently launched a Givenchy shop-in-store and this fall, a Valentino accessory ‘hard shop’ will be opening as well — a first for Holts. Valentino ‘hard shops’ are also located at Nordstrom in Vancouver and Toronto (Yorkdale) as well as at Saks in downtown Toronto. In several weeks, Valentino’s first standalone store in Canada will open at Toronto’s Yorkdale Shopping Centre.
The two photos below (Valentino and Givenchy) and the top image of Boucheron were taken by Helen Siwak last week.
WAXON Taps Laser Technology and Relaunches as WAXON Laser + Waxbar
After a year of planning and raising capital WAXON Laser + Waxbar, has added laser services at all 13 of their Canadian locations. With the introduction of Vectus Laser machines and providing state-of-the-art technician training for staff, WAXON now offers fast, convenient and pain-free permanent hair removal solutions for all skin and hair types in under 10 minutes a session.
In September 2018, MarketsAndMarkets Inc. reported that by 2023 the medical aesthetic market internationally would be worth 17.07 billion dollars. The transition from manual beauty services to technology-assisted offerings is how small business like WAXON will stay competitive in the increasingly lucrative beauty business.
The use of the laser provides clients with high volume permanent hair reduction in fewer sessions, saving time and cost. Each Vectus Laser comes with Skintel technology that reads skin melanin levels, which allows technicians to tailor the treatment to each client’s needs, achieving effective results on average within just four to six sessions.
In addition to single service pricing and interest-free financing options for laser treatments, WAXON provides flexible BAR TAB packages for both waxing and laser, giving the brand an additional edge in the hair removal industry.
Cashmere Collection Celebrates 15 Years of BT Couture for Breast Cancer
The 15th annual Cashmere Collection fund- and awareness-raiser for the breast cancer cause showcased Canadian designers with a theme of ‘crystal.’ This year’s collection was curated by Canada’s own Mosha Lundstrom Halbert; the New York-based internationally recognized fashion director, editor, writer, and stylist.
Hosted by CTV News Anchor and breast cancer survivor Beverly Thompson with Toronto diamond jeweler Kimberfire generously donating more than 60,000 crystals to make this year’s collection sparkle, the audience of more than 200 Canadian fashion industry leaders, influencers, designers and media turned out for this eagerly anticipated annual runway debut. Produced by Kruger Products, the maker of Cashmere Bathroom Tissue, the collection is a heartfelt display of the brand’s commitment to nurturing Canada’s fashion industry while inspiring citizens to support and contribute to the breast cancer cause.
Wardrobe Apparel Joins Haberdasher & Co in Classy Colo
Gastown’s Wardrobe Apparel has moved to Yaletown, colocating in a 1600-square-foot space with men’s wear company Haberdasher & Co, with an official launch event planned for November 1, 2018.
The space boasts floor-to-ceiling windows, beautiful hardwood floors, and luxe furniture. Wardrobe Apparel focuses on clothing that is custom curated and personally styled for the well-travelled career woman, and Haberdasher & Co. offers a world-class custom suit program with a wide array of premium fabrics and details to make suits unique to each man.
Both business owners Alexandra Thompson (Wardrobe Apparel) and Bobbie Long (Haberdasher & Co) have developed, and maintain a VIP feel to their businesses, through appointment only fittings and custom orders with hand-selected designers and materials.
Wardrobe Apparel custom curates from top brands such as Canadian luxury designers Greta Constantine, award-winning London jeweler Imogen Belfield, and costume jeweler to the stars Alan Anderson, and much more. While Haberdasher & Co. curates Canadian made clothing from companies such as Coppley, and Paul Betenly.
Walmart Supercentre Takes Over Target Space at Burnaby’s Metropolis at Metrotown
Officially opened earlier this month, the new Walmart Supercentre occupies 2-floors and 118,000-square-feet in Metropolis at Metrotown in the space formerly occupied by Target in the east wing on ground level. This is the latest of the now 20 stores now open across the Lower Mainland with the location easily accessible by vehicle and by foot via the Metrotown sky train station.
On the ground level first floor – accessible from the mall entrance and Central Boulevard – shoppers can find groceries and fresh produce, home supplies, and seasonal items.
The second floor is accessible by escalators/elevator and is dedicated to bath and decor, clothing and footwear, entertainment, baby products and toys, and health and beauty.
Hey Archive! Launches Vancouver’s First Consignment Warehouse Sale
The first week of November will be exciting for those on the west coast with an interest in sustainability, especially in fashion. Randa Salloum (CIEL Creative Marketing) has partnered with Kelly Turner of Fall for Local Markets to create the city’s first and largest consignment warehouse sale – ARCHIVE to be held at WerkLab facility on Venables Street. Different from a market, which is defined by a vendor/kiosk arrangement, all pieces for ARCHIVE will be tagged and hung together in style categories for easier shopping by attendees.
Salloum, a well-known lifestyle influencer in marketing/PR, decided to partner with Turner in an attempt to access the thriving west coast market community to expose Vancouverites to a fun way to get involved in sustainable fashion and the circular economy of textiles.
On Friday, November 2nd, ticketholders are invited to ‘rethink retail’ at an evening event which includes a Vancity Credit Union moderated Shopping & Sustainability Panel with local bloggers and slow fashion advocates Elim Chu, Tijana Popovic, Laila Potvin, and Helen Siwak, with the opportunity to advance shop, and network.
Saturday, November 3rd from 10 am to 5 pm the public will converge on WerkLab to buy women’s and men’s apparel and accessories ranging from contemporary – think Aritzia and Lululemon – to designer luxury brands like Gucci, Jimmy Choo, and Dior.
Using edgy marketing techniques and social media to attract interest, the event capped consignor participants at 20 persons bringing over 1,000 items, plus two local retailers, and a special guest from an international luxury brand who will be selling from their personal collection.
The future of US fashion brand J.Crew in Canada is in question after it recently closed its CF Chinook Centre store in Calgary recently. The brand has closed several Canadian locations over the past couple of years in Toronto (CF Fairview and CF Markville) and at West Edmonton Mall, and sources are saying more closures are to come.
The brand is struggling south of the border, though it’s seeing some attention with news reports of celebs such as Megan Markle wearing the brand. Nevertheless, J. Crew terminated its Canadian PR contract last year and other retailers are said to be eyeing its valuable real estate — if there’s one thing J. Crew did well, it picked great retail spaces in malls and on high streets. Rumours persist that Canada Goose is looking at J. Crew’s CF Toronto Eaton Centre location, for example.
J. Crew still operates a network of full-priced stores as well as outlets in Canada, at least for now.
The global brand, which had been located in the downtown Holt Renfrew store for many years, will have its first standalone store in an enclosed mall in Canada based on the main level of the popular shopping centre.
“The long-anticipated opening of the Louis Vuitton store has set off a buzz in the Calgary luxe shopping community and complements an emerging high-end pocket of retail sizzle at the Chinook Centre,” said Michael Kehoe, an Alberta-based retail specialist and broker of Fairfield Commercial Real Estate in Calgary. “Chinook Centre has been pursuing luxe retail for several years. The Centre’s emerging higher-end tenant cluster led by the new Louis Vuitton store enjoys the synergistic traffic benefits of being nestled in by Nordstrom and Saks Fifth Avenue.
“The retailing stars align with some of the basic elements in place at Chinook with the City’s only Canada Goose boutique and Tiffany store among others. Chinook has significantly differentiated itself from the other regional shopping centres in the Calgary market and potentially gaining an edge in luxe retailing over the downtown Holt Renfrew. The relocation of Louis Vuitton to Chinook Centre from the downtown Holt Renfrew will have little effect on Holt Renfrew. I would expect that space to be quickly re-leased to a notable international brand such as Fendi or Chanel. There is significant wealth in the energy capital of Canada and Calgary shoppers need to show it as the market experiences a modest growth in the luxury retailing segment.”
In a statement, Louis Vuitton said the new store will offer leather goods, accessories, fragrance and two new categories for Calgary, shoes and fragrance for both women and men.
“The dramatic façade, characterized by a large sweeping curve, will be composed of a combination of Lacewood in a stitch pattern with brushed copper and pale gold trim with an integrated flower pattern metal mesh,” said the company. “The mesh offers a semi-transparent, screen like quality that brings a softness to the large façade and allows light into the store. Louis Vuitton Calgary, crafted with the finest materials, also features a number of new and vintage design pieces from talents such as Carlo Mollino and Jens Risom.
Louis Vuitton – Chinook Centre Interiors
Photo: Courtesy of Louis Vuitton / Paul Warchol
Louis Vuitton – Chinook Centre Interiors
Photo: Courtesy of Louis Vuitton / Paul Warchol
Louis Vuitton – Chinook Centre Interiors
Photo: Courtesy of Louis Vuitton / Paul Warchol
“In the spirit of Louis Vuitton, the store will have a room dedicated to travel which features an on-site hot stamping machine, allowing clients to personalize their leather goods and watch the process. This room will also feature a rainbow of Louis Vuitton luggage tags. In 2017 Louis Vuitton released the British Columbia Travel Book featuring images shot by photographer Solve Sundsbo. The store will feature prints from the book.”
Louis Vuitton has been operating in Canada for 35 years.
Darryl Schmidt, vice-president of national leasing for Cadillac Fairview which operates CF Chinook Centre, said Louis Vuitton will occupy about 4,200 square feet in Chinook Centre.
“We relocated four clients to make way for them,” he said. “We’re excited because we get some consolidation of market share down to Chinook. And this is their first true free standing store in an enclosed mall in Canada.
“There’s no question it’s going to add new traffic. It’s going to expand our reach in terms of secondary trade areas and into our primary trade area. It’s a great lead tenant with which to build upon the existing luxury merchandising mix. We’ve got other groups, luxury players, that are looking at Calgary and looking at Chinook Centre as a result of the Louis Vuitton signing. So there’s no question they’re an industry leader, a market leader, and we can build on our merchandising mix based upon that tenancy.”
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