859 BANK STREET LOCATION (OTTAWA). PHOTO: MAD RADISH FACEBOOK
The founder of DAVIDsTEA has a mission to change the way Canadians eat.
David Segal started Mad Radish, a chain of salad shops, in Ottawa a year ago in July and today it has three locations in the capital city. The next step for his expansion plans includes opening a store in Toronto in October at 2293 Yonge Street, just steps north of Eglinton.
DAVID SEGAL. PHOTO: LINKEDIN
“First we’re going to change what people crave. It’s all about eating healthy. Too often it feels like it’s taking your medicine and I think that has to change,” said Segal. “We’re trying to give you really tasty food . . . Getting access to a high-quality, great tasting, nutritious meal shouldn’t be a burden for busy Canadians. That’s why we created Mad Radish, and that’s why we’re so passionate about bringing Mad Radish to more and more cities.”
The new food establishment offers an ingredient-focused and chef-driven menu of fresh salads, seasonal warm bowls, stews, soups and healthy snacks, sides and desserts. Prices range from $3.75 to $14.
The locations do have some seating for people who want to eat in but much of the company’s business is takeout.
“It’s healthy food for busy people,” said Segal, who left DAVIDsTEA in 2016.
Segal said he’s not sure how many more stores will be rolled out after Toronto.
“It’s a tough question to answer. We really don’t know right now. Right now, we’re way more focused on producing great food that people love and that makes them feel great,” he said.
“The number of stores will evolve and take care of itself if we focus on the product and the service . . . We’d like to certainly (expand across Canada). Diet is the biggest health issue of our time and we feel we can have a big impact by giving people food that doesn’t make them compromise on having that joie de vivre, that sort of pleasure of eating and tasting great food, but does impact their health in a positive way, giving them energy and vitality and makes them feel great.
KENT & SLATER LOCATION (OTTAWA). PHOTO: MAD RADISH FACEBOOK
“We’re also cashless and we’re trashless. All of our packaging is 100 per cent compostable. Everything. We went cashless so we could speed up the lineup really quick. We also have our own app where you can pre-order your food and it’s ready for you with your name on it. You just grab it and go. You don’t have to talk to anybody. And we’ve partnered with a very interesting organization called Community Food Centres Canada . . . so every time you order with Mad Radish on our app we donate a serving of fresh vegetables to someone who needs it in your community.”
Before joining Mad Radish, head chef Nigel Finley ran kitchens at some of Toronto’s top fine dining restaurants, including Catch and The Chase Fish & Oyster. He has overseen the Mad Radish menu development since the brand launched just over a year ago.
The company says that under his culinary leadership, menu items such as the Smoky Caesar (a smoky twist on a classic Caesar made with smoked mushrooms, garlicky chickpeas, salty capers and savoury cashew “parmesan”) and the Fired Up Chicken (hot sauce marinated, family farm-raised chicken mixed with rice, roasted sweet potato, crisp red cabbage, pickled radish and a roasted corn and bean salsa) have become cult favourites in Ottawa.
“For every salad place, there’s 10 burger joints and I think the time’s come. Canada wants and deserves better, healthy food and that’s what we’re really on a mission to do,” said Segal.
“The radish is not angry contrary to what people think. Mad as in we’re a little bit crazy . . . We do interesting products that you wouldn’t necessarily always expect. We’re innovative in the marketplace. That’s where the mad comes in. We’re really trying to do something special . . . Sometimes we’re going to do things that are unexpected.”
Segal was co-founder of DAVIDsTEA in 2008 with the chain’s first location Toronto.
“To be honest with you, I loved DAVIDsTEA. I learned so much there and . . . it was very successful. But I’m even more excited about Mad Radish. I think it has the potential to impact a lot of people and that really excites me,” he added.
Cleveland, Ohio-based paint retailer Sherwin-Williams continues to open stores in Canada as it sees remarkable growth in all regions. At a time when many retailers are shrinking their base of stores, Sherwin-Williams is seeing an annual growth rate of about 10% in Canada, with global total revenue growth of 34.4%. Canada’s building boom, both commercial and residential, might be part of the reason.
The company now has more than 240 stores in Canada, which is impressive considering that Sherwin-Williams celebrated the opening of its 200th Canadian location in the summer of 2016. The plan is to open stores across the country, with a strong focus on Quebec, Ontario and British Columbia.
Of its 240 Sherwin-Williams locations in Canada, 48 stores are in British Columbia, 27 are in Alberta, seven are in Saskatchewan, nine are in Manitoba, 90 are in Ontario (two opened in the last six months), 37 are in the province of Quebec (two more stores in the last six months), four are in New Brunswick, two are in Newfoundland, six are in Nova Scotia and there’s one Sherwin-Williams store in the province of Prince Edward Island.
Sherwin-Williams was founded in Cleveland in 1866. The company is technically a year older than Canada, and has a unique Canadian connection – Sherwin-Williams opened a manufacturing plant in Montreal in 1894, and its second CEO was Canadian.
Sherwin-Williams is now considered to be the largest producer of paint in the world, and its products are sold through a wide network of distributors including, home centres, independent retailers, mass merchandisers, as well as through more than 4,624 company-operated paint stores. The Fortune 500 Company boasts annual revenue in excess of US $15 billion in 2017 and the company opened 101 stores globally during its most recent fiscal year.
Total revenue growth for Sherwin-Williams last year was 34.4% — that puts it in third place on the list of fastest-growing US retailers (according to an eMarketerRetail report). Home retailer Wayfair took top spot with 43.7% annual growth, and Amazon came second with 35.5% revenue growth.
Paint stores often indicate areas that are seeing building booms, and that might be reflected in the number of Sherwin-Williams stores in parts of Canada. British Columbia has a disproportionately high number of locations, which could be expected given the multi-year building boom in the province which includes new residential as well as commercial buildings. Downtown Vancouver continues to add office space in order to address record-low vacancy rates and various new residential developments are addressing high population growth, particularly in the Vancouver/Lower Mainland.
Ontario —and more specifically Toronto, is seeing a remarkable building boom which can be attributed to population growth as well as economic expansion. The city is adding thousands of new residents annually, many of them immigrants, and Toronto is said to have more construction cranes in the air than all of New York City, Los Angeles and Chicago combined (no city comes close to Toronto in North America, with Seattle trailing). Toronto is also seeing a commercial building boom as new office buildings are built in Canada’s Financial Centre, which is also seeing a tech boom (more tech jobs were created last year in Toronto than any place in North America).
Sherwin Williams is looking to continue opening stores in Canada over the next several years. Ideally stores are in the 2,800 square foot to 4,000 square foot range along high streets and in open-air centres. The company is working with three brokerages in its three focus-provinces. In Quebec, Sherwin-Williams is working with Tony Flanz of Think Retail. In Ontario, Sherwin Williams is working with Webster Retail and in British Columbia, it’s working with Greenwood Realty on further site selection.
Bikini Village new store design, store front (CNW Group/Bikini Village)
Canada’s largest swimwear retailer, Bikini Village, has opened its first Calgary location with plans to open two more in the Alberta city in October as part of the company’s national expansion plans.
The first store launched Friday August 17 in CF Chinook Centre and the other stores will open in CF Market Mall and CrossIron Mills, which is located just outside Calgary’s city limits in the Balzac area of Rocky View County.
Roméo Di Liello-Roberge, General Manager of Bikini Village, said the company currently has 59 retail locations in Canada with the majority of them in the Ontario and Quebec markets – 28 stores in Quebec and 17 stores in Ontario.
The retailer has one store in West Edmonton Mall which opened about a year and a half ago.
He said the company chose Calgary as a key focus of its expansion plans due to the city’s young population, strong retail sales and economic growth forecasts, which are expected to lead the country over the next five years.
CF CHINOOK CENTRE (CALGARY) – MALL MAP
“Our new Calgary locations strengthen our presence in one of the strongest retail markets in Canada. The stores ideally complement our e-commerce business, maximizing choice and convenience for our customers here,” said Di Liello-Roberge. “Expanding our online offering into a physical location allows us to serve customers who may prefer to take advantage of the selection and expertise we offer in store.”
“We believe the market of Calgary is dynamic and is getting back really strongly and will keep growing and this is why we decided to invest in this market.”
The Montreal-based company was founded in 1978, acquired in 2015 by Boutique La Vie en Rose Inc., and sells brand-name swimwear, beachwear and accessories for both women and men. Di Liello-Roberge said customers range from their teens to mature adults.
When asked if he sees further growth in Calgary in the future, he said: “We’ll see how the market reacts. Calgary is quite a good market. We’ll start with three stores and then eventually if there’s space for a fourth store we’ll see but we don’t want to cannibalize the stores that we have open.”
“We think the customers in Calgary are really fashion savvy and are looking for quality products and this is actually exactly our target customer.”
Di Liello-Roberge said Bikini Village is also looking at expanding in the Edmonton market. It is exploring opportunities at Southgate and Kingsway malls as well as in Vancouver.
“We’re really strict in our locations. We pick our locations specifically. We sign long-term rents and we want to make sure that when we sign for a store we are signing for a good market,” he said.
“My goal will be to have 75 stores in Canada. It’s really by opportunity. The challenge is with working with landlords. That’s the main challenge right now. They’ve been a good partner but sometimes want to grow faster than the offer that we have. I think in the time of two to five years (for full expansion).”
The retailer’s real estate needs are handled by brokerage Oberfeld Snowcap.
“We developed a new concept store two years ago and we’ve been improving that concept store and this experience over the last two years and right now we opened our newest store concept in Calgary and we think with that concept we offer a really interesting experience that I personally think is not offered on the market. We plan to offer a better shopping environment, a better experience and a better offer in terms of collection and that’s what differentiates us,” said Di Liello-Roberge.
The company said Bikini Village offers specialized swimwear consultants in-store providing a more personalized service and welcoming atmosphere.
L’Oréal owned, New York City-based beauty/skin care brand Kiehl’s has partnered with multi-brand beauty chain Sephora in Canada for the first time. As part of the arrangement, Kiehl’s products will be carried in five Sephora stores, as well as online. It’s the latest move in the hyper-competitive beauty industry in Canada that is seeing innovation as new brands enter the market and existing companies compete for limited market share.
The first phase of the partnership begins this month with Kiehl’s products being carried for the first time on the Sephora.ca website — the busy website sees customers from across the country and will give Kiehl’s a boost in brand awareness, which has been a goal for the brand as it expands its network of distribution which includes standalone stores as well as wholesale at various multi-brand retailers.
In September, five Sephora stores will carry the Kiehl’s line in ‘gondolas’ that will display the brand’s range of skin care products. Those stores will include two in Toronto — at 77 Bloor Street West and CF Toronto Eaton Centre, as well as a location at CF Markville, just north of Toronto. The Sephora store at Southgate Centre in Edmonton will also be getting the Kiehl’s line, as will the Sephora store at the Park Royal centre in West Vancouver.
Three of the five Sephora stores are in the Greater Toronto Area, which makes sense — it’s Canada’s largest region in terms of population, and it’s also said to be one of Sephora’s top markets globally. In 2016 Sephora launched a ‘takeover’ initiative where it added new stores and expanded other locations. As part of the ‘Toronto Takeover’, a Bloor Street store was relocated from The Colonnade at 131 Bloor Street West to a larger 8,900 square foot space at the base of the 77 Bloor Street West office tower (Jeff Berkowitz of Aurora Realty Consultants represents Sephora as broker) and the CF Toronto Eaton Centre Sephora was expanded and renovated — the latter is one of Sephora’s top-selling in North America, which might not be surprising considering that it’s in the busiest shopping centre in North America in terms of annual visitors.
77 BLOOR STREET WEST IN TORONTO. PHOTO: CRAIG PATTERSON
KIEHL’S INTERIOR.
SEPHORA INTERIOR. PHOTO: FUTURE BRAND
Southgate Centre is Edmonton’s most productive shopping centre in terms of sales per square foot, and is the city’s second-busiest mall after West Edmonton Mall. What’s interesting is Sephora chose Southgate for Kiehl’s, considering that the West Edmonton Mall store was recently expanded and is one of only a handful in North America to feature Sephora’s innovative ‘TIP’ ‘Teach, Inspire, Play’ concept “where digital technology and services fuse, culminating in a truly revolutionary shopping experience for modern day beauty enthusiasts of all ages to beauty together”. Sephora’s first ‘TIP’ store in Canada opened in August of 2016 at Toronto’s Yorkdale Shopping Centre.
Sephora may have chosen West Vancouver’s Park Royal because the mall currently lacks a standalone Kiehl’s store — Kiehl’s operates several stores in the BC Lower Mainland. Kiehl’s also operates standalone stores at CF Toronto Eaton Centre as well as at Yorkdale, Southgate Centre and at West Edmonton Mall.
“We are excited to be welcoming Kiehl’s to Sephora Canada” said Jane Nugent, VP merchandising at Sephora Canada. “Our goal is to bring our clients the most requested and effective products for their beauty goals. Kiehl’s is an iconic brand in the industry, with a rich history rooted in natural ingredients and effective formulations. We are thrilled to now offer our clients the full Kiehl’s collection of skin, body and haircare products.”
Kiehl’s was founded in New York City in 1851, and now boasts retail and wholesale accounts worldwide. The company entered the Canadian market via Ogilvy in Montreal in 1996, then Holt Renfrew in the early 2000’s and in 2004, opened its first freestanding Canadian store on Toronto’s Queen Street West. Kiehl’s operates a network of freestanding Canadian stores, as well as dozens of points-of-sale in host retailers such as Hudson’s Bay, Holt Renfrew, Saks Fifth Avenue and Nordstrom. Kiehl’s also operates a robust e-commerce site, with plans for growth.
In an interview last year, Kiehl’s Canadian GM Alexandre Ratté explained that the company is seeking to enhance its brand awareness Canada-wide, though it would limit opening standalone stores as it’s already in most of Canada’s leading malls.
LVMH-owned Sephora, which operates stores globally, continues to open stores in Canada. Most recently, it opened its 70th Canadian store in Kamloops, BC.
Canada is seeing an unprecedented boom in beauty and skincare brands, all of which are fighting for market share. In the next while we’ll provide an in-depth analysis of the industry in Canada, which is seeing growth both with standalone stores as well as expanded distribution in concessions and wholesale accounts.
“Our retail strategy is based on a series of touchpoints that together create a unique ecosystem. This includes owned retail stores, online commerce, and partnerships in our existing retail networks that span across Canada,” said Patrick Sills, Manager Retail Spaces Development for the company.
“Our owned retail spaces have an open, clean and simple concept that allow the consumer to discover and learn about our product. Because our product is technical and falls in a highly-regulated category, we need to be able to explain it to the consumer. This takes time. Our stores are designed to be comfortable, making it easy for the consumer to discover the product while getting hands-on support and assistance.”
CALGARY 17TH AVENUE LOCATION. PHOTO CURTIS COMEAU PHOTOGRAPHY VIA CUTLER. MILLWORK BY PEREGRINE.
Sills said the corporate goal is to eventually phase out cigarettes and switch all current adult smokers who choose to continue smoking to smoke-free alternatives as soon as possible.
“We sell a product called IQOS – an electronic device that heats tobacco rather than burning it. It has three main components: a heat stick called a HEET, an IQOS holder, and a charger that is around the same size as a cell phone. Using the device is fairly close to the ritual of smoking and offers a cleaner alternative to smoking cigarettes. However, IQOS is not risk-free and the best way to reduce tobacco-related health risks is to quit tobacco altogether. But, for those Canadians who would otherwise continue smoking switching completely to IQOS is a better choice,” he said.
“The basis of our smoke-free product is heat-not-burn technology. This product still allows adult smokers to enjoy the true taste of tobacco without fire, ash or smoke and far less smell than a conventional cigarette.”
The company’s first Canadian store opened in April 2017 at Queen West and Peter Street in downtown Toronto. Its second Toronto store opened later in the year at Yonge Street and Wellesley Street.
“We have since expanded to cities across the country including Vancouver (Yaletown), Calgary (17th Avenue), and Edmonton (Jasper Avenue). The expansion into new geographical areas are based on our commercialization strategy and includes new locations in Richmond, BC and Markham, Ontario. We expect our first IQOS store in a commercial mall to open in the West Edmonton Mall by the end of 2018. We are always looking at new opportunities in retail and will expand into new areas when the support and resources are aligned,” said Sills, adding that its retail stores will sell devices, heat sticks, and accessories.
CALGARY 17TH AVENUE LOCATION. PHOTO CURTIS COMEAU PHOTOGRAPHY VIA CUTLER. MILLWORK BY PEREGRINE.
“We are committed to converting every current adult smoker in Canada to using IQOS so there are retail potentials across the country. Retail is just one format in which the consumer can learn about our product. We also have an online publication at IQOS.com.”
Sills said each store in its portfolio is approximately 1,500 to 2,000 square feet with 1,000 square feet of retail space and adequate back-of-house space for employees to work.
“The large space allows for an open and fresh environment which is part of our overall experience. We use natural materials and clean lines. Our stores are located in both high street locations and up and coming areas,” said Sills.
Editor’s Note: Vancouver-based design firm Cutler has been working with IQOS on its Canadian store design. Peregrine supplies much of the millwork for IQOS locations.
Quebec-based clothing retailer WLKN has launched a kids’ collection in its own stores as well as with another retailer.
WLKN has diversified its strategy in an effort to grow the brand and stay ahead of its competition. The kids’ collection is now also in Boutique Clément – a top children’s retailer in Quebec with about 30 locations. It hopes to expand that reach to other retailers in Canada in the new year.
WLKN is also growing its footprint as it will open the company’s eighth store in Sherbrooke, Quebec, in September.
“It’s the first time we’ve sold our WLKN brand in another retailer,” said Maxime Bourdeau, creative director and co-owner of the retail company, adding that initial sales of the kids’ collection were tremendous.
Max Bourdeau.
“We’ve started to work on a second collection for Spring 2019 and we are now searching for other retailers in Canada that can carry our brand.”
WLKN opened in November 2010 in Quebec City and the multi-brand store offers a wide range of streetwear and sportswear clothing brands, footwear and accessories. It has 150 employees.
Pierre Mercier, the company’s CEO, said the Sherbrooke store will open in mid-September.
“The name is from walking into a big closet. We took the WLKN. It was that simple. In the first place, we wanted a name that can go through the times. So if different styles change we’ll stay no matter what the style of what we’re selling,” said Mercier. “The logo also with the W at first is a powerful letter. We’ve been around for eight years and the logo still stays strong when people recognize it and look at it,” said Bourdeau.
“We still dress people for all kinds of different activities. When people come in, they’re probably going to find something even though maybe they’re not sure because we have multi styles.”
WLKN CHILDREN CLOTHING (PHOTO: WLKN)
The kids’ collection was very popular.
“Max had a little boy approximately two years ago,” said Mercier. “We are in the clothing business. So we decided to make some styles for his kid. It was where we started in the first place. A lot of our customers were asking about kids clothing. People who were coming in and asking and through social media. Max also is an influencer and a lot of people follow him. People wanted kidswear.”
The kids’ collection was so popular it sold out in stores in two weeks.
WLKN Locations
He said kidswear has opened a new way for WLKN to grow its business and the company is searching right now for other retailers in Canada – in Ontario, Calgary, Vancouver – to perhaps carry the kids’ collection in February 2019.
“Our industry is a tough industry. It’s tough for everyone. Even us. We still will open new stores but we try to negotiate with all the landlords differently because the rent is often the biggest expense for the company,” said Mercier. “So we try to work with them and the big malls to have percentage rent. So with that we control the risk versus opening new stores.
“But we would like to have stores in every province in Canada first. Maybe around like 25 locations across Canada. We’re working a lot right now with a new website. The sales online is not what we expect yet but we’re pushing a lot online to be sure.”
Asian-themed grocery chain T&T Supermarket opened to massive crowds in Richmond, BC on the morning of Thursday, August 16.
The lineups can be attributed to some freebies that were being given out as part of the celebrations, including free tote bags, a $7.98 lobster special, and $10 gift cards to the first 400 customers.
The 70,000 square foot store, which is the largest T&T location in the country, is located at Landsdowne Centre in suburban Vancouver. According to T&T, the new Richmond store is the company’s flagship and is located in part of the mall’s former Target space which was vacated in early 2015.
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OPENING DAY CROWDS. PHOTO: RITCHIE PO
OPENING DAY CROWDS. PHOTO: RITCHIE PO
PHOTO: AIR
The giveaways were no doubt part of the reason why so many shoppers lined up for the store’s opening — T&T Supermarket already has two stores in Richmond and a total of 11 in the Lower Mainland, including two that operate under the ‘Osaka’ nameplate. T&T Supermarkets also operates seven stores in the Greater Toronto area and one in Ottawa, with two more on the way for Southern Ontario. There are also five stores in Alberta — two in Calgary and three in Edmonton, with the busy West Edmonton Mall location said to be doing sales in excess of $50-million annually.
T&T Supermarket is considered to be Canada’s largest chain of Asian grocery stores. The company was founded by Taiwanese-Canadian entrepreneur Cindy Lee in 1993 and in July of 2009, it was acquired by Loblaw Companies for $225-million in consideration (including $191-million in cash and $34-million in preferred shares). The name T&T stands for the names of Ms. Lee’s two daughters — Tina and Tiffany.
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THE FUTURE OF LANSDOWNE CENTRE WILL BE LESS MALL AND MORE CITY-BUILDING. RENDERING: VANPROP INVESTMENTS / CITY OF RICHMOND
It’s unlikely that T&T Supermarket will be at Lansdowne Centre forever, however. The mall’s landlord has indicated that it plans to close the centre in the year 2025 and eventually demolish the shopping mall for a new mixed-use urban development that will include a substantial residential component as part of a new street-grid that will expand Richmond’s downtown core.
In 2014, we spoke with the head of a major big-box retailer which was expanding its operations into Canada, and he said that Lansdowne’s landlord wasn’t agreeable to long enough lease terms — as a result, the retailer opened a store nearby.
It’s not clear how long T&T’s lease is at Lansdowne Centre and weather or not it will remain for a longer period as the centre is demolished in stages, though it’s obviously a good enough deal for both parties that an agreement was reached.
Retailers are preparing to occupy the nearly-completed Asian themed King Square shopping centre in Markham, just north of Toronto. When it opens to the public in several months time, King Square will be the second-largest such shopping centre in Canada. The retail component to the project is ‘phase one’ of what will eventually become a ‘complete community’ that will include offices and residential buildings as well as a community centre, medical offices and a significant park component.
The project has been ongoing for about eight years — King Square Ltd. was formed in 2010 as part of an initiative with Fortress Real Developments, where the company began to acquire various parcels of land in suburban Markham. The company ended up securing 11.47 acres at 9390 Woodbine Avenue in Markham, which is at the northwest corner of Woodbine Avenue and 16th Avenue.
The original design would have seen King Square become the largest Asian mall in North America spanning nearly a million square feet over multiple levels. More than 1,000 retail units, mostly Asian-themed, were planned for the centre, which was positioned as being upscale.
PHOTO: FORTRESS REAL DEVELOPMENTS FACEBOOK
INTERACTIVE GOOGLE MAP
While King Square isn’t as large as was initially planned, it nevertheless reflects the developers’ initial vision of creating a mixed-use community in order to drive traffic to the area at all times of the day and year. That includes eventually adding homes and work places, as well as attractions to draw visitors from the region.
Phase 1 of King Square includes the 340,000 square foot, 500+ unit commercial complex which spans three levels. Included are about 1,500 surface parking spaces. Excavation for the project commenced in 2013. New funding from Fortress was secured in the summer of 2014 in order to make the project possible, as there had been some delays, according to the developer. Exterior cladding and window installation was nearing completion in April of this year, and retailers are expected to open either before the end of this year or early next year, depending on individual construction and occupancy.
King Square has sold hundreds of condominium retail spaces over the past several years. According to Oswin Tong, Planning Manager for King Square Ltd. and the founder of the project, the developer holds a selection of units that it plans to rent out as well, providing a hybrid ownership/rental model depending on the desires of tenants.
Retail tenants will include an Asian-themed supermarket, food court, cafeteria, and several full-sized restaurants. The individual tenant mix will be dictated where tenants have secured their units, be it condominium or rental. As such, Mr. Tong said he didn’t yet have the names of all of the confirmed tenants.
The goal, according to the developer’s website, is to create “the GTA’s most vibrant lifestyle destination featuring a luxury collection of retailers, restaurants, offices and entertainment venues. It’s a “one stop for Asian goods,” according to Mr. Tong.
As part of this, King Square will include some unique elements such as a 10,000 square foot community centre on its third level, a banquet hall, performance stage, medial centre and pharmacies, and a large park. The 50,000 square foot park, which will take the form of a Chinese garden, is dedicated to the late Dr. Norman Bethune — the Canadian doctor was a frontline surgeon in China during the Spanish Civil War (including developing a mobile blood-transfusion service) while bringing medicine to rural China.
PHOTO: FORTRESS REAL DEVELOPMENTS FACEBOOK
Future phases of King Square will include a hotel, offices and residential buildings which, according to Mr. Tong, will be built on the site’s existing ground-level parking component. King Square’s parking will be moved underground as its site is intensified for future development phases.
King Square’s ‘community’ design is part of an effort to drive traffic to the centre from multiple sources, which is something seen more in shopping centres in places like China. There, shopping centres have become ‘downtowns’ for some rapidly expanding communities, with families spending their free time at various venues, including retail stores. In North America, examples of such mega-malls include the likes of West Edmonton Mall and Mall of America in Minneapolis, which feature a dynamic mix of products and services that also include substantial entertainment components such as amusement parks and even casinos. In Asia as well, food and beverage plays a greater role in many malls and in some instances, may take over an entire floor in some multi-level shopping centres. Mr. Tong noted that food and beverage will also be an important draw for King Square in Markham.
King Square was built partly to address the substantial and growing Asian population in Markham and nearby Richmond Hill. The surrounding area is very multicultural and Markham is already home to one Asian-themed mall — Pacific Mall, which spans about 270,000 square feet and houses hundreds of tenants. Pacific Mall was recently raided by police seeking counterfeits.
The area’s Asian population is one of the reasons why the developer chose to open there, according to Mr. Tong. The 2016 Census for Markham showed that of the 330,000 people who live in the city, about 67% are Asian compared to just 20% for ‘European’.
Nearby Richmond Hill, with more than 200,000 residents, also features a substantial Asian population with 82% of respondents being Chinese, South Asian, West Asian or Korean. Both communities boast substantial average household incomes and both are also growing rapidly, as is the more expansive trade area.
PHOTO: KING SQUARE
King Square will be the second-largest Asian-themed mall in Canada. The largest to date is the Aberdeen Centre in Richmond, south of Vancouver, which spans about 380,000 square feet over several levels. Richmond’s demographics are Asian-heavy, as is the case with Markham and Richmond Hill.
Several other cities in Canada have either seen Asian-themed malls open, or have seen proposals. In Calgary, the recently completed Asian-themed New Horizon Mall spans about 320,000 square feet and is located on a suburban site north of the city. Several years ago in Dundurn, Saskatchewan, a developer proposed a 6.4-million square foot mixed-use centre with 340 outlets about 40 km south of Saskatoon (the project has since been shelved).
We’ll provide updates on King Square as it readies to open to the public in several months time.
Toronto’s famed ‘Mink Mile’, representing a portion of the Bloor Street West roughly between Yonge Street to the east and Avenue Road to the west, is seeing substantial changes with significant new construction and new retailers changing the face of the area. New development is having something of a ‘snowball effect’ in the neighbourhood, including new commercial buildings as well as the addition of thousands of new residents — retailers are now said to be looking at the area with fresh eyes.
The Mink Mile is home to some of Canada’s most prestigious retailers including the flagship locations for Holt Renfrew and Harry Rosen. It’s the only area in the city to have a dedicated expanse of granite sidewalks, which elevates the street beyond that of a typical Toronto neighbourhood.
2 Bloor St. W — watch for some significant changes to this corner. Photo Craig Patterson
This article will update some of the things happening at what some consider to be Canada’s answer to New York City’s Fifth Avenue. Consensus among brokers is that Bloor Street is transitioning to become an address for large major brand retailers with a mix of luxury brands as well as some popular national and international brands. The ‘tour’ will begin at the Yonge Street and Bloor Street West crossroads, and will head westward towards the Avenue Road intersection which is anchored by the Royal Ontario Museum and the Park Hyatt Hotel, which is seeing an overhaul.
The Yonge and Bloor intersection, located above Toronto’s busiest subway stations, has seen considerable changes over the past couple of years. The 1 Bloor Street East retail podium, which was acquired by First Capital Realty in August of 2016, now houses Canada’s flagship Nordstrom Rack store right at the corner in a 38,600 square foot two level retail space. A Mark McEwan grocery store is under construction and will open in a few months — the duo behind DWSV Remax Ultimate Realty Inc., David Wedemire and Stay Vyriotes, acted on behalf of the retailer and have been key brokers for luxury retailers in the area. First Capital Reality is leasing out more retail spaces in the complex, and Eric Sherman is the contact person.
Proposed changes to the retail podium at 2 Bloor Street West.
Developer Sam Mizrahi’s ‘The One’ is now under construction at 1 Bloor Street West and when it’s done, the complex will include a multi-level retail podium as well as a boutique hotel (Costar says Hyatt brand Andaz is negotiating) and a luxury residential tower that will soar to a height of more than 1,000 feet above the street. The same Costar article notes that Apple is said to have leased the corner anchor space with plans to open a multi-level flagship of about 20,000 square feet, though neither the retailer nor Mizrahi Developments will go on the record to confirm. Above the anchor space will be a retail concept which will be discussed at a later date.
[Above: Video standing at the north west corner of Yonge Street and Bloor Street West]
At the northwest corner of the Yonge and Bloor intersection, Kingsett Capital will be updating the retail podium of 2 Bloor Street West/Cumberland Terrace, with details to be released at a later date. Across Mayfair Mews from 2 Bloor is the construction of an expanded Aritzia flagship, which will span about 11,440 square feet when it opens next year. Dianne Lemm of Northwest Atlantic handled the deal on behalf of Aritzia with the Holt Renfrew Centre’s landlord Morguard. Ms. Lemm says she thinks within the next five years Bloor Street will be a ’world class’ retail destination that will house a mix of luxury and major-brand stores in flagship-sized retail spaces — a sentiment shared amongst several brokers we spoke to.
[Above: Proposed changes to the retail podium at 2 Bloor Street West. Listing broker: Brandon Gorman, VP, Retail Services, Cushman & Wakefield]
Morguard’s Holt Renfrew Centre and adjacent 60 Bloor Street West office tower will be seeing some significant changes over the next couple of years. The 190,000 square foot Holt Renfrew store which anchors much of the Holt Renfrew Centre at 50 Bloor Street West is seeing a significant renovation which will include updated interiors (with several new and luxury boutiques), a new facade to replace the existing white marble, and the re-introduction of menswear to the main store. Holt Renfrew opened a standalone men’s store at 100 Bloor Street West in the fall of 2014 and it recently announced that it will be moving menswear back to 50 Bloor.
Holt Renfrew at 50 Bloor St. W. – photo, Craig Patterson
[Above: video taken from the south east corner of Bloor St. W. and Balmuto Street]
The 60 Bloor Street West office tower, which includes a three-level Gap flagship store at the corner of Bloor and Bay Streets, is seeing some updates that will include a new facade. A 3,800 square foot retail space at the base of the tower, adjacent to the recently opened Saint Laurent street front boutique at Holt Renfrew, is available for lease by landlord Morguard.
On the south side of Bloor Street at the corner of Balmuto Street, a roughly 3,000 square foot retail space at 19 Bloor Street West is currently available for lease. Arlin Markowitz of CBRE explained that it is a terrific space for a variety of potential retailers — Mr. Markowitz’s team sold the building a couple of years ago for $74-million and Scotiabank intends on continuing to lease space in the building. Mr. Markowitz explained that the surrounding changes, including renovations to Holt Renfrew and the Manulife Centre, are generating considerable interest for the 19 Bloor Street property as well as the area in general.
The Manulife Centre at 55 Bloor Street West is seeing a transformation that is adding retail space in an expanded podium that will soon house Canada’s first Eataly (spanning about 50,000 square feet over three floors) as well as a new location for Over the Rainbow Jeans, and an updated Birks jewellery store which will feature street-front facades for Breitling, Van Cleef & Arpels and Cartier. These luxury boutiques, as well as the Saint Laurent boutique at street level at Holt Renfrew, add an element of luxury in an area which also houses more affordable brands such as Zara (which recently renovated) and H&M. A large corner retail space at the corner of Bloor and Balmuto Streets is available, as well as some retail spaces inside the Manulife Centre complex.
[Above: Video taken from the south west corner of Bloor St. W. and Bay Street]
Crossing Bay Street on the north side of Bloor Street is David’s Footwear, which is considered to be one of the most prestigious shoe retailers not only in Canada, but globally. The award-winning store is expanding into the adjacent former Capezio space — David’s recently shuttered its Capezio chain as part of a brand repositioning in partnership with Harry Rosen, with Larry Rosen now acting as CEO for both retailers. Watch for David’s to become a national brand with its first location outside of Toronto to open this fall at Ottawa’s CF Rideau Centre.
[Above: Video taken from the north west corner of Bloor St. W. and Bay Street]
The current office tower at 80 Bloor Street West, which houses Roots and a Banana Republic store, is proposed to be demolished to be replaced with a 66-storey tower above a 50,000 square foot retail podium. It’s unclear when or if this proposed project might get off the ground and there’s likely no hurry, given that the site houses an income-producing office tower with retail tenants.
Next door at 82 Bloor Street West, Harry Rosen’s 55,000 square foot flagship continues to see ongoing renovations, including the addition of several impressive branded luxury boutiques over the store’s four levels of retail. In the winter we profiled newly updated second floor which houses luxury boutiques such as Loro Piana, Zegna, Moncler and Brunello Cucinelli, and the store’s Tom Ford shop-in-store is also in line for a renovation. CEO Larry Rosen explained that the Bloor Street Harry Rosen Tom Ford shop competes with Bergdorf Goodman in New York City and Harrod’s in London for top shops-in-store sales globally.
[Above: Video taken from in front of the Harry Rosen flagship (82 Bloor St. W.) at the corner of Bellair Street]
On the south side of Bloor Street across from Harry Rosen, a large Hugo Boss store at 83 Bloor Street West will become available when the store closes this year, and CBRE is listing the building as it seeks a new tenant. CBRE is also selling the three-level COS building next door at 85 Bloor Street West, with owner RioCan looking to divest that particular asset.
The stretch of stores beside COS on Bloor Street’s south side has seen a few changes over the past year. European jeweller APM Monaco opened its first Canadian store last year (Jordan Karp of Savills Canada represented the retailer and says that he’s bullish on Bloor as well as the Yorkville area generally) and two doors down is Canada’s first MCM store (CBRE’s Arlin Markowitz, Alex Edmison and Jackson Turner acted on behalf of the retailer).
Next to Holt Renfrew men is the Hermes flagship which opened in November of 2017 and this fall, a Zegna boutique will open next to it. Photo Craig Patterson
Looking to the north side of Bloor Street across Bellair Street from Harry Rosen is the 100 Bloor retail podium. It’s considered to be one of the most important retail addresses in Canada and as such, Hermes opened its Canadian flagship there in November of 2017 and this fall, a Harry Rosen-operated Ermenegildo Zegna flagship will open next to it (Arlin Markowitz of CBRE negotiated both transactions). Holt Renfrew currently operates a 16,500 square foot men’s store at the corner of Bloor Street and Bellair Street, and the space is currently for sublease. Barry’s Bootcamp will open its second Toronto location at the rear end of the 100 Bloor podium, and the remainder of the Bfloor Street frontage west of the new Zegna store is available for lease. 100 Bloor Street West is such an important address that we’ll be dedicating a feature article about it soon.
[Above: Video taken from the south east corner of Bloor St. West and St. Thomas street looking north]
At 102 Bloor Street West, beauty retailer L’Occitane en Provence recently renovated its store. The building next to that is 110 Bloor Street West, which houses what is said to be one of the top-performing Winners/HomeSense locations in the entire company. Further down at 130 Bloor Street West, a Gucci flagship will see an expansion and renovation next year, and the former Hermes space next to Gucci, which now features 2,500 square feet of space, is available for lease by CBRE.
[Above: Standing in front of The Colonnade looking north towards Gucci and other retalers]
Across the street at 131 Bloor Street West is Morguard-owned ‘The Colonnade’, which was Canada’s first mixed-use building when it opened in 1963. Some consider it to be the most prestigious retail address in Canada, which is one of the reasons why Christian Dior leased a 13,400 square foot two-level space which will become its largest store in North America when it opens in several months time (Dianne Lemm,of Northwest Atlantic, negotiated the Dior lease deal in partnership with Hanna Struever of California-based Retail Portfolio Solutions, Morguard is the landlord). The Colonnade includes retailers Coach, Mulberry and Prada, the latter which recently completed an expansion and renovation to its store which now spans 13,630 square feet over two floors. William Ashley, which recently unveiled a beautiful new store at The Colonnade, relocated from the Manulife Centre where it had operated for years. Last fall, Moncler opened at The Colonnade and there are three retail spaces available [See Lease Plan]
[Above: Rendering of the new Dior flagship that will open at The Colonnade, as well as an interior rendering, via Dior]
[Above: Video of The Colonnade at 131 Bloor St. W.]
[Above: Video panning from Dolce & Gabbana at 111 Bloor St. W., past the new Dior at the Colonnade]
To the west of The Colonnade is the 151 Bloor Street West building, which houses Max Mara, Stuart Weitzman and a Montblanc boutique which was recently renovated to reflect the luxury brand’s newest concept. A retail space next to Montblanc is available for lease (listed by CBRE). Next to Montblanc is Club Monaco, which operates a large two-level store in a heritage building owned by the University of Toronto, and is currently under tarp for a facade refresh.
[Above: Video taken in front of Club Monaco at 157 Bloor St. West, at the south east corner of Avenue Road]
[Above: Video taken in front of The Church of the Redeemer on Bloor St. West, at the north east corner of Avenue Road]
That takes us to the corner of Bloor Street West and Avenue Road, which is anchored by the Church of the Redeemer on the corner, and an 18,000 square foot Louis Vuitton Maison is next to it. Across Avenue Road on the south side of Bloor Street is the Royal Ontario Museum and to the north, is the Park Hyatt Hotel. Oxford Properties owns the Park Hyatt property with plans to renovate the hotel facing Prince Arthur Avenue while turning the former circa 1929 hotel building facing Bloor Street into a high-end residential rental tower. The entire commercial podium of the Park Hyatt, spanning along Avenue Road, will be expanded and renovated and it will be interesting to see what kind of retailers Oxford Properties will secure for this prominent corner.
Louis Vuitton and Tiffany & Co. anchor 150 Bloor St. W., PHoto Craig Patterson
We’ll follow up this article with some smaller articles discussing properties such as 100 Bloor Street West as well as other changes in the area. As well, in September, we’ll provide an update on what’s happening in Yorkville generally, which is seeing a retail renaissance along Yorkville Avenue as well as at the Yorkville Village centre formerly called ‘Hazelton Lanes’.
INDOCHINO, a global leader in made-to-measure men’s apparel, is broadening its product range beyond formalwear to include casual clothing.
The push beginning September 5 will include made-to-measure chinos plus a refreshed selection of custom overcoats.
And Drew Green, the company’s president and CEO, said the continuing evolution of INDOCHINO will likely move to the adoption of women’s wear in the future.
Image: Indochino
He said expanding into new product categories is something the retailer’s customers have been waiting for.
“It’s a lot of the continuation of what we have been doing. We’ve set out to change the way a generation of men build their wardrobe and it really started with a set of garments that we felt historic in some way. A suit for a man is something that we all partake in points in our life or even perhaps every day and of course you need a nice dress shirt to go with that suit,” said Green.
“About two and a half, three years ago, we started focusing on blazers and suit separates. Pants. Blazers. Really what we wanted to do before we went any further was really to perfect made-to-measure suiting and shirting and I think we have. We deliver our product in under three weeks now and that used to be six weeks. Twenty four per cent of our product this year was shipped in one week or less. Eighty per cent in two weeks or less and then 99.6 per cent in three weeks or less which is our consumer promise. We really honed in and executed on suiting and shirting. I really felt like it was our opportunity to expand and really provide customers with casual wear which we’re doing this fall.
“The khaki pant has been a staple of a man’s wardrobe for decades . . . We wanted to bring that back to life in a made-to-measure, customized and personalized way. So we really zoned in on that this past year, perfecting the first iteration of our khaki pant and we also announced that outerwear is now going to be a staple within our collections.”
Green said INDOCHINO will also be announcing casual shirting within the fall – both shirts you don’t tuck in as well as other options.
“We’re growing. 2018 we’ll have averaged almost 50 per cent year-over-year growth since 2015. So four years. Compound annual growth. So the company’s growing . . . We just see an opportunity. The demand for our suits is relentless frankly,” he said.
“We’ve opened 31 showrooms now across North America. We’re opening another five before the end of the year. Another 20 next year. Just in North America. We constantly, and I constantly, speak with customers and they just love the fact that they can get a garment that fits them perfectly and that they can create their own. They’ve been asking for other products. And I think it’s always a wise idea to listen to your customer. We wanted INDOCHINO to be a bigger part of a man’s wardrobe.”
So does Green see women’s wear in the company’s future?
“It’s a great question and it’s probably the number one question I get both through the media as well as from our customers,” said Green. “And I think for us we really have stayed focused on men’s apparel. I think women’s is part of our future. Women’s custom clothing is part of our future. We don’t have official plans for this year or next year for women’s wear but definitely as we evolve the brand globally we see that as an opportunity.
INDOCHINO has opened 12 stores so far in 2018 and plans to end the year opening five more for a total of 36 showrooms. These include Newport Beach, CA, Atlanta, GA, and Madison Avenue, NY, all launching in September.
