MUJI Announces Downtown Toronto Mega-Flagship [Rendering]

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August 1, 2018

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Minimalist Japanese retailer Muji has provided an update on the expansion of its downtown Toronto store, including a rendering showing how it will have a significant presence on Dundas Street when it opens this fall. The expansion will more than quadruple the size of the store at 20 Dundas Street West, which was Canada’s first Muji location when it opened in November of 2014.

Muji confirms that the two-level store will span a whopping 19,125 square feet, which the company confirms makes it the largest Muji location outside of Asia. Renderings show that a considerable amount of its retail space will be on the second level of the Atrium complex in which Muji is located — the retail space is being created out of office space in the large mixed-use complex.

The 19,125 square foot store is considerably larger than the original 4,373 square foot store which opened at 20 Dundas in 2014 — back then, Muji stores were generally smaller and have been progressively getting larger as the company continues to open stores.

The store’s location is strategic, being located steps off of the busiest pedestrian crossing in Canada — Yonge Street and Dundas Street, and is across the street from the CF Toronto Eaton Centre which, with more than 50-million annual visitors, is the busiest shopping centre in Canada. Several major brands operate flagships in the immediate area including H&M, Michael Jordan, Adidas, Samsung, Uniqlo and Nordstrom, among others.

The expanded Toronto flagship will surpass the size of Muji’s Robson Street flagship in Vancouver, which opened in a one-level 14,507 square foot space in December of 2017. Muji hasn’t yet revealed what departments will be included in the expanded Toronto flagship, though the Robson Street flagship might provide some insight — books, custom monogramming and live plants can all be found in the downtown Vancouver store, which has become an attraction on Robson Street’s 1100 block.

Some Muji stores in Asia feature food and beverage offerings (including its ‘Café & Meal’ concept) and in Japan there are even fresh grocery offerings. A Muji store in Osaka, spanning more than an acre in size with about 46,300 square feet of retail space, is currently the retailer’s largest store globally.

Muji is said to be doing stellar sales in Canada, and particularly on the West Coast where it recently announced that its Metropolis at Metrotown unit, which spanned 7,770 square feet when it opened in August of 2017, will be expanded this fall to an impressive 12,305 square feet on one level. The idea is to bring the store in line with the experience, product selection, and footprint of the Robson Street flagship.

Muji’s Canadian stores have been growing progressively larger as they open in Canada. As mentioned above, Muji entered the Canadian market with a 4,373 square foot store in downtown Toronto in November of 2014. That was followed by a 5,225 square foot store at Mississauga’s Square One in November of 2015, followed by the October 2016 opening at Toronto’s Yorkdale Shopping Centre (6,375 square feet) and the Summer 2017 debut of a 6,000 square foot space at CF Markville, north of Toronto. A store at Scarborough Town Centre, measuring about 6,800 square feet, opened in March of this year.

On Canada’s West Coast, Muji currently operates three stores — Metropolis at Metrotown was the first when it opened last August, followed by the Robson Street store in December and most recently, a 6,355 square foot store at CF Richmond Centre which opened in April of this year.

Brokerage CBRE has been involved with MUJI’s negotiations across Canada, led by Arlin Markowitz, Senior Vice President of CBRE’s Downtown Toronto Urban Retail Team. CBRE Vancouver‘s office, including Martin Moriarty and Mario Negris, were involved in the three Vancouver deals.

Last year, Muji’s Canadian President, Toru Akita, said that he expected MUJI to operate between 15 and 20 stores in Canada by the year 2020, and a source working with the company says that the retailer has already mapped out many of the locations where it plans to expand, which may include malls as well as urban street front locations.

Known for being innovative and its products being affordable and unbranded, Muji carries various household items, furniture, appliances, stationery and apparel. With hundreds of stores worldwide, it saves money by spending little to nothing on market research and advertising. MUJI is short for Mujirushi Ryohin, or ‘no-brand superior items’, and was founded in 1980 as the private-label brand of a major supermarket chain.

iQ to Open Flagship and Expand Operations

By

Craig Patterson

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August 1, 2018

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By Craig Patterson

Toronto-based healthy eating concept iQ continues to grow its operations, with more locations in the works as it ramps up an expansion which could see it become a national brand. The company will unveil its largest location yet at Toronto’s Yorkdale Shopping Centre towards the end of the summer, and founder/CEO Alan Bekerman says that more iQ locations are in the works.

Mr. Bekerman founded iQ in 2011 and since then, the company has opened seven locations in seven years. Its first location opened in 2011 at the TD Centre in Toronto’s Financial District in about 460 square feet, and it was a hit from the very beginning. A second location opened nearby at Brookfield Place in 2012 and in 2014, iQ unveiled a considerably larger location at the base of the 18 York office tower in Toronto’s burgeoning SouthCore, south of Union Station.

*Food Prep Team Leader at TD Centre Location*

In 2016, iQ partnered with Toronto-based Greenhouse Juice to open a joint location at First Canadian Place in Toronto’s Financial District — by that time, it was clear that workers in Canada’s business centre had embraced iQ’s healthy food options as well as Greenhouse Juice’s offerings (that company is also expanding). In 2016, as well, iQ opened a 300-square-foot concession at the Equinox fitness centre at Yorkville Village in Toronto, marking iQ’s first foray outside of the tight geographic clustering of its first four locations. In 2017, iQ opened a larger-than-usual location at 613 King Street West, in an historic area which is rapidly transforming to become one of the most interesting and densely populated areas of the city.

Towards the end of the summer, iQ will unveil its flagship location at Toronto’s Yorkdale Shopping Centre, marking the brand’s first location outside of Toronto’s downtown core. The Yorkdale location will span almost 2,300 square feet in a strategic corner location across from the mall’s stunning RH (aka Restoration Hardware) and Sporting Life stores. Mr. Bekerman explained that a flagship is ideally a ‘best location’ for a brand and while this might be true for the Yorkdale location when it opens, he says that the goal is for every new location to be better than the last as each is a learning experience.

iQ’s retail spaces vastly range in size, and Mr. Bekerman explained that each of these have been used to test the concept prior to an even greater rollout. While the smaller locations have been wildly successful, future locations will ideally be in the 2,500 square foot range, he said.

Larger iQ locations allow for more of an “experience” he explained, by offering seating, a place for customers to line up, and the ability to play music in order to create a curated environment. Shopping centres have been transforming over the past several years, and now landlords are seeking to add food and beverage offerings through their mall properties in order to create foot traffic to other retail categories, not to mention give shoppers a place to relax and refuel.

Mr. Bekerman also expressed gratitude to iQ’s broker Vanessa Oliver of Regent Street Retail and Restaurant Real Estate Solutions, who is working with iQ’s expansion under mandate and has negotiated multiple lease deals on behalf of the retailer.

King Street West Location:

iQ’s popularity is, in many respects, a product of the company’s simplicity. Mr. Bekerman explained that he founded the company out of frustration with the lack of health food options in downtown Toronto — he himself worked in Toronto’s Financial District when he decided to launch a concept that would utilize the highest quality ingredients such as whole grains, lean proteins, and good fats, offering healthy food that is also served quickly and conveniently. The company’s website notes that its menu shifts with the seasons, and that it devotes itself “to scratch cooking + embracing the type of food that we feel good about eating everyday”. Nutritional content is the focus with dishes that are “clean, colourful and light”. iQ partners with local farmers and suppliers where it can, and it also proudly serves Pilot Coffee at its locations.

Two more Toronto iQ locations are in the works, and their exact locations will be announced shortly. One will be in midtown Toronto, Mr. Bekerman said, while the other will be up in North York.

Looking to the future, Mr. Bekerman said that he’s working with broker Vanessa Oliver of Regent Street to eventually expand the concept outward beyond the Greater Toronto Area. While nothing is confirmed as of yet, locations could some day open in other Canadian provinces and maybe even beyond as iQ continues to perfect its concept.

Craig Patterson, now based in Toronto, is the founder and Editor-in-Chief Retail Insider. He’s also a retail and real estate consultant, retail tour guide and public speaker.

Follow him on Twitter @RetailInsider_, LinkedIn at Craig Patterson, or email him at: craig@retail-insider.com.

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Kenneth Cole Expands Canadian Operations Including 1st Retail Stores

By

Craig Patterson

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August 1, 2018

New York City-based fashion brand Kenneth Cole is expanding its wholesale and retail network in Canada, which includes opening standalone stores in major Canadian cities. The company has just unveiled its first standalone store in Canada on Queen Street West in Toronto with a second location already confirmed, and this fall 16 men’s shop-in-stores will debut at Hudson’s Bay stores across the country.

The 1,800 square foot Toronto flagship, located at 315 Queen Street West, carries ready to wear clothing, footwear and accessories for both men and women under the Kenneth Cole New York label. The store’s interior is punctuated with raw steel, concrete, brick and glass, aiming to create a welcoming environment which also speaks to the Kenneth Cole brand. Kennth Cole joins a rapidly growing roster of national and international brands that have located standalone stores on the more ‘popular’ section of busy Queen Street West. Ryan McGrath of Northwest Atlantic acted on behalf of Kenneth Cole in the lease deal, with Brandon Gorman of Cushman & Wakefield acting on behalf of the landlord (The Pearl Group).

The store’s interior references Kenneth Cole’s “trailer story” — designer Kenneth Cole began selling women’s shoes in the back of a production trailer in December 1982, and the Toronto store’s interior is a nod to the brand’s heritage. That includes the “use of clean lines, strong artistic works and purposeful messaging,” according to the company.

The Kenneth Cole flagship store will be located at 315 Queen St. West in Toronto (CNW Group/Kenneth Cole Productions Inc.)

Kenneth Cole has already secured a second store location at Vaughan Mills just north of Toronto, according to Daryle Perrin, Vice President of Licensed Brands, of Haggar Canada. That store is scheduled to open in September. Kenneth Cole signed an expanded agreement with Haggar Canada Co. to manufacture, market and distribute men’s and women’s apparel and distribute men’s and women’s footwear in this country.

He said that the Queen Street location “represents modern street front retail” in an area that is extremely diverse. Toronto’s bustling Entertainment District is directly to the south, and the area is seeing a population explosion that is adding thousands of new residents to the area. To the north is the Art Gallery of Ontario, Ontario Collage of Art and Design and neighbourhoods such as Kensington Market and Chinatown, and a few blocks to the east is the City’s Financial District, which is considered to be Canada’s most important business address.

Mr. Perrin said that more standalone Kenneth Cole locations are expected in Canada’s larger cities. The Vancouver market is strong and includes a substantial tourist component, while the more ‘traditional’ Calgary market is another example of a city where the brand has taken hold.

Kenneth Cole’s standalone store expansion is part of a greater effort to expand the brand further into Canada. This fall, Kenneth Cole will unveil 16 ‘soft shops’ at Hudson’s Bay stores nationwide, recognizing the importance of the retailer to the brand, not to mention Hudson’s Bay being the remaining traditional department store retailer in Canada. The soft shops will include some of the design elements seen in the Queen Street flagship, including the use of raw steel in its fixtures.

Hudson’s Bay also carries Kenneth Cole’s men’s footwear line in most of its stores, and Kenneth Cole women’s footwear is now carried in 10 Bay stores, according to Mr. Perrin, with plans to further expand the brand into Hudson’s Bay as well as other independent retailers in the country.

Kenneth Cole’s fashions are sometimes referred to as being an ‘Urban Uniform’ which features mix-and-match pieces made from fabrics that are intended to be comfortable for a busy person on the move. Designs are ‘modern classic’, which should resound with downtown Toronto residents as well as many Canadians that are seeking out reasonably priced, versatile fashions.

Online shopping is also an important component to Kenneth Cole’s business and as part of its Canadian expansion, its website is also seeing an expanded focus. Ultimately the goal is to be an omnichannel retailer with components of direct-to-consumer, wholesale and e-commerce.

We’ll be following this brand as it continues to expand its presence in Canada.

Grocery Disruption in Canada as Retailers Fight for Online Dominance

By

Sylvain Charlebois

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August 1, 2018

One after the other, grocers are going virtual. All of them, at some point over the last 12 months, have announced some sort of commitment to an e-commerce strategy. Costco launched its home delivery pilot in Ontario, while Maxi’s, Loblaws‘ discount stores in Quebec, were the latest to jump on the virtual bandwagon with their Click and Collect program. In other words, grocers are no longer content with waiting for customers to walk through the door, ready to spend money on food. Grocers are now accepting that they must increasingly go after and work harder for the money.

The proverbial wake up call for food retailers came a year ago when Amazon purchased Whole Foods in the U.S. in August 2017. The biggest concern among grocers was that it would drive down prices, even in Canada. This has not yet happened, at least not in any direct way. Food inflation is not strong, but neither is the sector experiencing any deflationary pressures.

SAVE ON FOODS (OVERWAITEA) ONLINE STOREFRONT.

What is happening: consumers gradually walking away from the average traditional grocery stores. Some are drawn to specialty stores, but many are buying online, and often from suppliers selling unique products not available through the major outlets. Habits are changing. Some estimate online food sales to be at about 1.5% of all food retail sales in Canada, with some grocers seeing online sales growth reach double digits. Given that we are one of the most connected nations in the world, the current 1.5% of sales could go up to 7% within the next 10 years, which equates to approximately $10 billion in sales. This would represent over 800 decent-sized stores in today’s food distribution landscape.

Canada is essentially catching up to several other industrialized countries. Ireland and the United Kingdom are at 7.5% in online grocery sales. France is at just over 5.5%. Canadians are nowhere near that level, as most of us never considered online food shopping until just recently. Now, it’s in the media almost every week, enticing Canadians to think differently about food outlets and how they might want to shop.

Grocers weren’t overly enthusiastic in embracing e-commerce either. Other than Sobeys in Quebec and Longo’s Grocery Gateway in Ontario, not much virtual shopping was going on. Reluctant grocers were concerned about lost foot traffic and reduced same-store sales, precious metrics in the business. But Amazon’s clear commitment to food retailing changed everything. The sector is now playing defense and retailers are trying to embrace their new reality. Basically, an online shopper is more rational and strategic. Senses and emotions can trick you into buying certain products you don’t need or “shouldn’t” be buying in the first place. In a physical store, want overpowers need, much more often than you might think. Online, however, impulse buying is almost impossible. Grocers are slowly having to learn how to add on sales while transacting with a customer who has access to neatly presented information in real-time, all the time — a scary thought for the conservative type in the industry.

For some Canadians though, saving money through online shopping is not that easy. On the one hand, free applications allow the tech-savvy to save. On the other hand, the process excludes certain consumers. It involves some research, knowledge of software use, and especially time. Some are comfortable with this, but not everyone. But since the Internet and social media have become so prominent in our lives, chances are that, over time, the number of shoppers willing to buy food online will outnumber those reluctant to do so.

Location means something different in food retailing now. More competition will only make things more complicated for grocers. If it’s death by a thousand cuts for the industry, everyone wants to be the one holding the blade. Loblaw and WalMart have very dissimilar approaches — no surprise — driven by in-house thinking. While Metro has been a little quiet compared to others, Sobeys has entered a partnership with U.K.-based Ocado, a powerhouse in online shopping. This could make for an interesting duo in the sector. Costco has now announced it wants to play in the online space which could also be damaging for the establishment.

Everyone wants in, but in the end, only a few will deploy an e-commerce strategy that will “click” with Canadian consumers.

Miele Unveils First-in-the-World Flagship Prototype [Photos/Video]

By

Craig Patterson

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July 30, 2018

Miele Canada-Miele Canada opens Toronto Flagship Store with new — Miele at Yorkdale Shopping Centre (CNW Group/Miele Canada)

High-end appliance brand Miele has unveiled a new first-in-the-world interactive ‘Miele Experience Centre’ flagship at Toronto’s Yorkdale Shopping Centre, which will act as a prototype for future Miele locations in major markets globally. The highly experiential space could represent the future of experiential retail, which includes an interactive experiential component and even food that is made and served throughout the day.

The 2,200 square foot retail space is located in Yorkdale’s latest expansion wing, which features new locations for RH (aka Restoration Hardware) and Sporting Life. Miele describes its flagship as “digital first, but human at heart”, with a combination of digital elements, product experience and expert advice. “The new Miele Experience Centre is truly a unique showcase demonstrating excellent quality, technology and service”, says Yves Dalcourt, President of Miele Canada. “The experience we will give our customers will change the way people will look at buying appliances and will set a new standard within our industry.”

Yorkdale’s Miele Experience Centre is highly interactive — visitors are encouraged to try out appliances ranging from laundry and floor-care appliances to kitchen products through to ‘Smart Home’. It almost feels like a technology playground while at the same time, being a retail store where customers can buy the products.

As with many homes these days, the store’s kitchen area is the ‘heart and soul’ of the new store. Several times a day, a chef demonstrates cooking and baking in the dedicated space and as an added bonus, freshly prepared culinary treats ranging from croissants to homemade soup to pasta can be sampled by customers during their visit. There’s a lounge area adjacent to the store’s kitchen that encourages one to pause and enjoy.

Technology, including various digital elements, are an important part of Miele’s new space — ambient lighting and videos change with the time of the day, with five video screens grabbing the attention of visitors. Interactive displays throughout the store showcase the latest in Miele technology. At the ‘Swiping Cooktop Screen’, it’s possible to perform virtual cooking and to experiment with the various Miele induction cooktops on display. A 46-inch touch screen display on the ‘M-Touch Wall’ shows the product range with the eponymous technology in full size and illustrates the function of the controls which simplify the operation of numerous built-in appliances. This is new to Miele, as is the ‘Miele CareCollection Consumables Wall’ which, with the aid of short videos, informs visitors about Miele’s various cleaning and care products. Visitors can launch video demonstrations by simply scanning items using the NFC scanner provided.

Brand/retail consultancy FITCH designed the storefront as well as the series of playful, interactive spaces created to enable guests to explore and experience Miele products in action.

What’s interesting is while this store is ‘direct-to-consumer’, it’s not in competition with other retailers that sell Miele products. Miele utilizes a chartered agency system, where all products sold in third-party retailers actually interact with Miele itself. As a result, someone shopping at a multi-brand retailer might go to the Yorkdale location to test out some products, and Miele is able to track if the consumer came from that multi-brand store.

The store is Miele’s first ever to be located in a ‘premium shopping mall’ according to the company (Miele’s Calgary, Montreal, Toronto and Vancouver Experience Centres are in less-prime locations), and Yorkdale makes sense. The shopping centre is home to more luxury brands than any centre in Canada and the clustering has led to a loyal base of shoppers that are also considerably wealthy. A representative from Miele noted that in some instances, a Miele chef will attend a purchaser’s home to show them and any domestic staff how to use appliances, including creating a multi-course meal for educational purposes.

Miele representatives also explained that Yorkdale was chosen because it’s a busy mall with about 18-million annual visitors. The mall is also Canada’s most productive in terms of annual sales per square foot, which may continue to be the case as another Canadian Shopping Centre Study is in the works for 2018.

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About 30-40 more Yorkdale-like Miele Experience Centres are expected to open globally in the world’s major centres. Yorkdale is expected to be the only such experience centre in Canada, however, according to the company.

Miele is considered to be the world’s leading manufacturer of premium domestic appliances including cooking, baking and steam-cooking appliances, refrigeration products, coffee makers, dishwashers and laundry and floor care products. The Miele company was founded in 1899 and has eight production plants in Germany as well as one plant each in Austria, the Czech Republic, China and Romania. Its annual turnover in 2016/17 was about 3.93-billion Euros with sales outside of Germany accounting for 70% of that amount. Miele is represented with its own sales subsidiaries and via importers in almost 100 countries — the Miele company, now in the fourth generation of family ownership, employs a workforce of around 20,200, with 11,200 of those being in Germany. The company headquarters are located in Gütersloh/Westphalia, Germany.

Cutting-Edge Chicago-Based Fashion Designer Opens Retail Space in Toronto [Photos]

By

Craig Patterson

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July 30, 2018

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By Craig Patterson

Cutting-Edge and unique fashion designer Shernett Swaby, based out of Chicago, has opened a boutique in Toronto. The store is called Swaby and is located at 632 Queen Street West, and it showcases some of the boldest fashion designs we’ve seen.

The concept itself is unlike anything in Canada to date. When someone purchases a garment from her brand, Swaby offers free alterations for the life of each garment and in some instances, Ms. Swaby herself will create a new design out of a garment at no additional cost. For example, a pair of pants may be turned into a skirt, lining in a garment might be replaced, or if someone’s body shape changes, garments can be modified. It’s part of an effort to make her clothing last for years by updating older pieces that might otherwise be discarded, with the longevity of garments, making Swaby both cost-effective as well as environmentally friendly.

Photo:  Alff Henry Exposure Network — *Photo: Alff Henry Exposure Network*

The company’s website states that it believes “that every woman should feel confident and beautiful whenever they get dressed, regardless of what size they are,” and that complimentary alterations are provided “including zipper replacements and lining replacements ‘and any other changes that might be needed to keep you enjoying your Swaby garment for the life of that garment”.

Prices range from a bit over $100 for a simple shirt to well into the thousands for bolder designs which even include impressive evening gowns. Ms. Swaby was in the new Toronto store last week to meet with clients and it’s clear that she’s passionate about her work as well as very skilled in her trade. Even during an opening event at the store, she was fitting clients with her unique designs, and shoppers we spoke with were impressed with the individual attention as well as the one-of-a-kind designs found in the store.

Shernett Swaby was born in Jamaica and grew up in Canada. She started sewing at age eight by making clothing for her dolls, as well as mending her own garments. Ms. Swaby’s mother was a seamstress who also acted as inspiration while teaching tricks of the trade. As an adult, Ms. Swaby continued to perfect her craft by creating garments that ‘celebrate individualism’ with an artistic flare.

Ms. Swaby was a top-five finalist on TV Series ‘Project Runway Canada’ about a decade ago and following that in 2009, she opened her first boutique in Chicago (she had been in business several years prior to the show, it should be noted). She continues to operate a store there at 750 Franklin Street in Chicago’s upscale ‘River North’ neighbourhood, which is known for its art galleries, clubs and now more than ever, luxury condominium buildings which in some instances have only one unit per floor.

Personalization remains key to swaby’s value proposition and remarkably, all of the garments and accessories that are sold at Swaby’s showroom are designed and manufactured on the premises. Ms. Swaby herself will be traveling regularly to meet with clients and Toronto will become something of a ‘second home’ with the opening of her Queen Street store.

Spanning about 1,100 square feet, Swaby’s Toronto store is located in what some say is one of the world’s ‘hippest’ areas, located alongside trendy stores and food establishments in the ‘West Queen West’ retail strip. Swaby’s Toronto store features a simple white interior which sets off her fashions, which change yearly as new themes are released. This season there are ‘ropes’ that adorn some pieces and ‘balls’ was the theme from last year — though given the customization possibilities, we’re told that almost anything is possible in terms of design, and that most requests can be accommodated.

Swaby also has a line of leather goods such as bags and belts that are hand-made by Ms. Swaby herself and this year, one of the themes is ‘origami’. Several of her creations are available in the store at the moment, some featuring a branded logo.

What sets Swaby apart from other design houses is the personalization that Shernett Swaby herself provides to her clients, and she has plans to grow her business to other major centres. Toronto is likely to be the only location in Canada for the brand, and next year she says she has her heart set on opening her first store in New York City. After that, the goal is to open Swaby stores in Paris and London.

Swaby’s new Toronto showroom is at 632 Queen Street West.

Photo: Alff Henry

Craig Patterson, now based in Toronto, is the founder and Editor-in-Chief Retail Insider. He’s also a retail and real estate consultant, retail tour guide and public speaker.

Follow him on Twitter @RetailInsider_, LinkedIn at Craig Patterson, or email him at: craig@retail-insider.com.

FOR MORE OF TODAY’S CANADIAN RETAIL NEWS:

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Sporting Life Announces 1st Store Location in British Columbia

By

Craig Patterson

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July 29, 2018

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Upscale Toronto-based sport and fashion retailer Sporting Life is expanding into new markets. The company has just announced that its first store in British Columbia will open in the fall of 2019 at The Amazing Brentwood in Burnaby, east of Vancouver. It’s all part of an expansion to position Sporting Life as a national brand that will soon have stores in four provinces.

“Vancouver’s renowned active and health conscious population provides an ideal foundation for launching Sporting Life on the West coast,” said Sporting Life co-founder and CEO David Russell. “We’ve had our eye on this city since Patti (co-founder of Sporting Life) and I lived in Vancouver years back. We see the value in this market and believe in the retail environment. We hope to ultimately have three stores in the greater Vancouver area.”

The Brentwood Sporting Life store will span about 44,000 square feet according to the company, and will open in 2019. The store will feature attractive interiors and an assortment of designer brands, as with the company’s other stores.

Last summer, The Amazing Brentwood’s landlord SHAPE announced that it had partnered with the L Catterton group, which is a private equity firm linked with French luxury conglomerate LVMH (Louis Vuitton Moët Hennessy) and Groupe Arnault. The new $2 billion The Amazing Brentwood will become the focal point of a community that will include over a million square feet of retail space, considerable office space, as well as multiple residential towers for thousands of new residents. The first phase is scheduled to open in the spring of 2019.

The Amazing Brentwood’s retail component will house more than 250 stores, a ‘culinary collection’, and a one-acre plaza. An entertainment focus will also include the addition of Cineplex VIP Cinemas, as well as The Rec Room entertainment centre. Brentwood is eyeing luxury brands to move into the centre, placing it directly in competition with QuadReal’s Oakridge Centre on Vancouver’s West Side, which intends on becoming the region’s second ‘luxury node’ to complement the downtown Vancouver ‘Luxury Zone’.

Sporting Life was founded in 1979 and sells apparel and footwear, as well as equipment geared towards runners, cyclists, skiers, snowboarders and hikers. It has a large selection of outerwear, fleece and coats from popular brands Moncler, Canada Goose, Arc’teryx and The North Face, among others. It also carries a mix of high-end and casual clothing brands such as Barbour, Bogner, Hugo Boss, Mackage, John Varvatos and others. Fairfax Financial Holdings Ltd. bought 75% of Sporting Life in December of 2011.

Sporting Life operates stores on Toronto’s Yonge Street (2665 Yonge Street and ‘Bikes & Boards’ at 2454 Yonge Street) as well as at Toronto’s CF Sherway Gardens (which relocated to a new space in September of 2015), Yorkdale Shopping Centre, Collingwood ON (222 Hurontario Street), Markham ON (CF Markville), Richmond Hill ON (Hillcrest Mall), Ottawa (Lansdowne) and two Calgary stores — one at Southcentre Mall and another at CF Market Mall. The Yorkdale and CF Market Mall stores are the chain’s two newest stores and both opened in the fall of 2017.

Sporting Life is in a growth phase that is seeing stores opening across the country. This fall, Sporting Life will open its first store in the Province of Quebec in a one-level retail space at Quartier DIX30 in suburban Montreal. It will be Sporting Life’s 11th store location as the company looks to double its store count over the next several years.

In a previous interview, David Russell said that Sporting Life will look to eventually operate about 20 stores Canada-wide. He explained that the Sporting Life brand will become truly national as it expands into the Vancouver/British Columbia market in 2019, with plans for three store locations in the Lower Mainland. While the Calgary market will be adequately served with two stores, an Edmonton location was a goal for the company, he said at the time (a downtown Edmonton deal unfortunately never materialized). The Greater Toronto Area has room for between two and three more Sporting Life locations, according to Mr. Russell, and the Montreal region could see as many as three stores as well. Store locations will ideally be in the 44,000 square foot range, he said.

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In an interview with Marina Strauss of the Globe & Mail [Paywall], Mr. Russell revealed that Sporting Life’s current annual revenue is about $160 million annually, and that the company intends to eventually see sales numbers of about $400 million from its 20 or so stores. The company is profitable and store sales are increasing at low-single-digit rates. E-commerce currently makes up about 15% of sales and Mr. Russell told Ms. Strauss that he expects that number to reach about 20%.

Sporting life is working with brokerage Northwest Atlantic for its Canadian expansion plans, with Chris Wood handling Western Canada and Sam Windberg handling Sporting Life’s eastward real estate expansion.

Shoppers Drug Mart Opens at the Base of Luxury Rosedale Building [Photos]

By

Craig Patterson

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July 29, 2018

Shoppers Rosedale — Shoppers Drug Mart Rosedale Rendering

Shoppers Drug Mart has opened a new store along the commercial strip of Toronto’s Rosedale area at the base of a multi-use luxury building which is in the process of being completed. The new store adds an expansive assortment of beauty products for those living nearby, as well as an assortment of grocery items for an area that probably could have used it.

The new store is located at the base of the ‘Hill and Dale’ building located at the southeast corner of Roxborough Street and Yonge Street, about a block north of the Rosedale TTC subway station. Hill and Dale, with a name derived from adjacent ’SummerHILL’ and ‘RoseDALE’ features six levels including a ground level with retail space, middle floors for offices, and upper-most floors featuring 17 luxurious residences with prices surpassing $2,000/square foot in many instances.

*FRONT ENTRANCE, FEATURING A STRONG AND UPSCALE GRANITE FEATURE WALL. PHOTO: CRAIG PATTERSON*

The new store is accessed from a corner location boasting high-end finishes including dark granite steps leading up to the store’s entrance. Inside, high ceilings showcase the store’s ‘BeautyBOUTIQUE’ cosmetics area which encompasses almost a third of the entire store. The back of the store features traditional drug store wares as well as a pharmacy.

Being under the same ownership umbrella as Loblaw, Shoppers Drug Mart has added a grocery area to the new Rosedale store that features refrigerators housing a variety of food items, ranging from packaged goods to vegetables. It’s a welcome addition to the area which generally lacks grocery stores, save for the nearby Harvest Wagon which is known for its high-quality groceries at expectedly high prices.

Shoppers Drug Mart Rosedale PHOTOS: CRAIG PATTERSON

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Expanding its food offerings has seen Shoppers Drug Mart address potential food deserts in some Canadian communities. Rather than a standalone grocery store having to set up shop and take a risk, Shoppers Drug Mart is able to utilize its own space to carry grocery items that might otherwise not be available in the area. This is proving particularly useful in some downtown areas such as in Edmonton, where Shoppers Drug Mart recently unveiled a two-level store at Edmonton City Centre which features an in-store grocery area. It’s no doubt a welcome addition to those living nearby, who would otherwise have to travel some distance to meet their basic grocery needs.

PHOTO: CRAIG PATTERSON

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The Rosedale Shoppers Drug Mart replaces a recently-shuttered location at 817 Yonge Street, which is a few steps south of the intersection where Yonge Street intersects with Church Street (to the west) and Davenport Road (east of Yonge). That 9,000 square foot retail space is currently being offered for lease, in an area that is seeing explosive growth in the forms of several thousand new condominium units to be finished over the next few years.

Shoppers Drug Mart is also adding other stores to the area, including a multi-level store at the southwest corner of Yonge Street and Charles Street which is under construction and will feature a heritage facade. Another two-level, 12,000 square foot Shoppers Drug Mart will open at the base of ‘The Britt’ residential tower under construction at the northeast corner of Bay Street and Wellesley Street. When finished, both stores will serve the densely-populated and highly-educated residential area which is adjacent to the University of Toronto, Government of Ontario, and several significant research hospitals.

BRIEF: Canada’s Largest Online Beauty Store Unveiled, Ikea Shelves Planned London Store

By

Helen Siwak

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July 26, 2018

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By Helen Siwak, Retail Insider Brief Editor

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Ikea Shelves Planned London Store: Swedish retailer Ikea has halted plans to open a 270,000 square foot store at Wellington Road and Highway 401 in London, Ontario. It was supposed to be under construction this year on a site that would have included a relocated and expanded Costco store.

Ikea told the London Free Press that Ikea still sees potential for a store in the London market, but that it is studying “new solutions” — the company is still said to be purchasing land on the PenEquity site, though details as to what’s going there are unclear at this time. It’s unfortunate news for locals who’d been looking forward to the store for years — for now they’ll have to be satisfied with locations being closer to and in Toronto.

Ikea has also just announced that its Quebec City store will be opening August 22 — Ikea is starting to open stores in secondary markets, and London was to be one of them.

It’s unclear what Ikea has planned for London, not to mention what will happen regarding the planned Costco store.

Shoppers Drug Mart Launches Monumentally Massive Online Beauty Store: Shoppers Drug Mart, Canada’s leading beauty and pharmacy retailer, unveiled a new e-commerce platform that brings together a wide selection of the company’s mass market cosmetics with an already vast range of luxury beauty products.

The new site—shoppersdrugmart.ca/beauty—is the country’s largest online beauty shopping destination, providing Canadian shoppers with hundreds of mass and luxury private label and international beauty brands.

Other perks of this powerful new location are the ability to earn and spend PC Optimum points, free shipping with minimum purchase of $50, free returns in store, and free samples (prestige purchases) and gifts with purchase.

Shoppers Drug Mart Corporation is one of the most recognized names in Canadian retailing, with more than 1,300 Shoppers Drug Mart and Pharmaprix stores operating in prime locations in each province and two territories.

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Jollibee Opens its 2nd GTA Location to Huge Crowds: The Greater Toronto Area’s second Jollibee location has opened inside of the Seafood City supermarket in Mississauga, and it continues to see crowds and lineups a week after opening. The Filipino restaurant chain recently told Retail Insider that it plans to open about 100 Canadian locations in five years.

BUILD IT by Design, known for its high-end retail and restaurant projects, built the space and supplied photos for this article. We’ve reported on several notable projects by BUILD IT by Design, which is expanding its own operations rapidly as new brands continue to rapidly enter Canada.

Jollibee began when Tony Tan and his family opened a Magnolia ice cream parlour at Cubao in 1975 which became the first Jollibee outlet. In 1978, Jollibee was incorporated as a 100 per cent Filipino-owned company with seven fast food restaurants within Metro Manila as its initial network.

In 2015, it reached its 1,000th store with its first location in Dubai, UAE, and now has more than 1,300 locations globally.

Read Retail Insider’s report on Jollibee’s aggressive Canadian expansion — the Philippines’ biggest restaurant chain is going to give homegrown brands a run for their money.

Ædelhard Pop-Up in Toronto Marks the First Brick-And-Mortar Location for Brand: Vancouver-based technical apparel men’s brand Ædelhard, which was launched several months ago in partnership with former Lululemon / Kit and Ace executive Darrell Kopke and Michael Nguyen (behind Toronto’s Garrison Bespoke), will have a temporary location in Toronto that will be open until Saturday and possibly beyond.

A ‘temporary menswear experience pop-up’ is now open at the TEN X TORONTO space at 107 Princes’ Blvd. in Toronto — until now, Aedelhard has sold exclusively online. The pop-up features numerous activations outside of selling apparel, such as a Corporate Tennis Tournament on July 27th that features celebrity tennis players wearing Aedelhard suits.

Ædelhard says that it aims to solve the problem of ill-fitting, uncomfortable business attire, and it appears to have solved it well. The brand currently features a selection of separates that can be mixed-and-matched with ease — Mr. Kopke wore a suit that he explained felt like a sweatsuit, and has been tested in the gym. Aedelhard applied bespoke tailoring to technical stretch fabrics to make the “world’s most comfortable suit.”

The line includes suit jackets, trousers, shirts and accessories, at a contemporary price point that makes it accessible to many. The collection can be viewed at Ædelhard’s website: aedelhard.com.

Could the Toronto pop-up lead to permanent Ædelhard stores? Stay tuned as we track the progress of this unique Canadian fashion brand.

MVMT Adds Brick & Mortar to Its Canadian Strategy: With their hipster name and ultra-cool styling MVMT Watches (pronounced Movement) is tick-tocking their way beyond online e-commerce and launching on August 15th in Watch It, department store La Maison Simons, and 90 of Hudson’s Bay’s locations across Canada.

MVMT was founded by two college dropouts in 2013 as a direct to consumer e-commerce company. Now, as the fastest growing watch company with an online community of more than 3 million fans, MVMT’s in-store launch is a direct response to growing demand for the brand’s premium, on-trend products and proves that physical retail experiences are still valued by consumers.

Loved by millennials, trend-setters and adventurers alike, MVMT watches are designed and crafted to compliment all styles and feature straps in leather, nylon, silicone, and stainless steel; a variety of color selections, and five sizes to suit anyone’s wrist.

Joe Fresh Expands Activewear Category to Include Extended Sizes: The beloved Joe Fresh activewear category – a collection that is all about cool, comfortable pieces that makes it super simple to take your activewear, anywhere, has extended its selection to offer extended sizes (0-22, XS-3X) to its customers. The extended size activewear collection became available Thursday, July 19th both online, and in-stores.

Founded in Toronto in 2006 by Toronto’s Joe Mimran, Joe Fresh started by providing a uniquely accessible shopping concept to fashion consumers in Canada. Today, the brand is one of Canada’s leading fashion retailers, with products available at over 1,450 retail locations, including over 350 Loblaws locations, 1,100 Shoppers Drug Mart locations, and 11 freestanding stores.

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Pyrrha Jewelers Launches 100% Sustainable Fine Jewelry Collection: After 23 years creating jewelry, and more than a decade since the launch of its iconic signature talismans, the designers behind Pyrrha, Danielle Wilmore and Wade Papin have introduced their newest ‘Fine Jewelry Collection.’

The company proudly espouses the circumvention of the damaging impacts of mining by casting their jewelry from 100 percent reclaimed precious metals, source conflict-free precious and semi-precious stones and freshwater pearls. Their business is Vancouver-based with a Los Angeles flagship and operates with transparency, sustainability, and has grown organically.

Crafted by hand using old world techniques, the new jewelry features a striking black ceramic design element and is comprised of a large selection of delicate 14K talismans cast using authentic wax seals and imagery from the Victorian era.

Pyrrha can be found at leading boutiques around the world and around the necks of major celebrities such as Chris Hemsworth, Katie Holmes, Jodie Foster, Lady Gaga, and Taylor Swift.

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Save the Duck says %*&$% to Wearing Real Duck Down: Save the Duck, a Milan-based outerwear company that is 100% green is distributing its Fall/Winter 2018/2019 STD Collection through its fashion office in Montreal. The vegan line is distributed throughout Canada by La Maison Simons, Hudson’s Bay Company, Holt Renfrew, and Quebec’s Sportium.

Save the Duck does not use traditional goose down feathers and instead uses their proprietary Plumtech® technology. The brand’s 100% cruelty-free faux-down jackets are lighter, warmer, more breathable, and perfect for the cold weather. This Italian brand also offers a line of jackets made of recycled polyester and are perfect for traveling in all weather conditions as well. They fold easily into a small carry-on or a medium bag.

Not only are Save the Duck jackets eco-friendly and fashionable, but they are also among the most sustainable and durable jackets on the market. Succeeding where even leading brands Mountain Hardwear, Europe’s Rab, and North Face have been unable. Save the Ducks’ completely animal-free suit took professional mountaineer Kuntal Joisher all the way to the top of Mount Lhotse, the world’s fourth tallest mountain.

Today the company claims to have saved over 3M ducks from 2011 to 2017. That is nothing to quack about!

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Wicker Emporium Assets For Sale: As reported in Insolvency Insider, MNP, in its capacity as CCAA monitor of Halifax, Nova Scotia-based Wicker Emporium, is soliciting offers for the sale of the company’s assets to a party interested in continuing to run the company as a going concern. In addition to acquiring the assets which include inventory and store fixtures, interested parties should be prepared to maintain the remaining lease obligations and employees. Further details can be found HERE. The deadline for offers is August 10.

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Helen Siwak is the publisher of EcoLuxLuv.com Magazine, a freelance content creator specializing in retail and luxury lifestyle. She is a regular content contributor to Boulevard Vancouver (English & Chinese), Retail-Insider, BLUSH Vancouver, and has lifestyle blogged for StyleDemocracy and Daily Hive. When not writing, she is attending fashion events, traveling, and advocating for animal/human rights. helensiwak@yahoo.com.

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Canadian Retail Sales Continue Weakening Trend

By

Craig Patterson

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July 26, 2018

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By Ed Strapagiel

The most recent Statistics Canada numbers show an uptick in Canadian retail sales in May 2018. Is this a turnaround? That’s not too likely. First of all, it’s not at all unusual to hit a particularly hot or cold retail sales month at any time, and one month does not a trend make. Secondly, and more importantly, the recent uptick was nowhere near enough to compensate for weak sales growth in the immediately preceding months.

After 5 months, 2018 year-to date total Canadian retail sales are up 3.6%. That’s not great, and it’s significantly less than the 6.2% growth recorded after the first 5 months last year.

The 3 month growth trend (orange line in the chart above) shows the recent uptick, but it’s still running well below the underlying 12 month trend (green line). At this rate, 2018 could end up being the slowest year in recent history.

Food & Drug

Retail sales in the Food & Drug sector were up only 0.8% year-to-date through to May 2018, one of the lowest results ever for the first 5 months of a year. The 3 month growth trend (orange line) has declined unrelentingly since the middle of last year, and the underlying 12 month trend (green line) is following suit.

The largest component of this sector is supermarkets & other grocery stores, but their retail sales were down 0.8% year-to-date. In contrast, retail sales at the small specialty food stores group were up 11.1%.

At one time, health & personal care stores were the sales growth leaders in this sector. Those days appear to be over now. Their retail sales recorded a flat 0.0% change year-to-date after 5 months of 2018.

Store Merchandise

After 5 months of 2018, year-to-date retail sales in the Store Merchandise sector were up 4.7%. This is “not bad”, but still not as good as the 6.5% annual gain recorded last year.

The trend lines however are discouraging. The 3 month growth trend (orange line in the chart above) has been steadily weakening since about the middle of last year. The underlying 12 month trend (green line) peaked in Q1 2018 and is now starting a downward slide.

On a year-to-date basis, only electronics & appliance stores are doing exceptionally well, with retail sales up 11.7% after 5 months of 2018. At the other end of the spectrum, shoe stores sales declined by 3.5%. Retail sales at general merchandise stores, which account for about 1/3 of the Store Merchandise sector, were up a relatively modest 2.8% year-to-date.

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

Much of the accelerating growth rate of Canadian retail sales in 2016 and 2017 was due to The Automotive & Related sector. Since late last year however, the 3 month growth trend has significantly weakened. The underlying 12 month trend is now heading downward, about as fast as it came up in 2017.

Sales at new car dealers appear to have suffered a major reversal of fortune. After 5 months of 2018, their year-to-date retail sales are up just 1.6%, after annual increases of 10.0% and 9.4% in the previous 2 years. Things are unlikely to turn around soon, given rising interest rates and possible tariff issues.

Year-to-date retail sales were up 10.8% at gasoline stations after 5 months of 2018. This is all due to higher gas prices at the pump, rather than any real economic gain. Nevertheless, it helped to keep up overall retail sales numbers.

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.

For definitions of store types, see Statistics Canada NAICS.

Canadian E-Commerce Stats

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 2.7% of total Canadian retail sales for the 12 months ending May 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 12.6% year-over-year for the 3 months ending May 2018, but this is much less than the 33.4% 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 may be 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 May 2018, electronic shopping and mail-order houses had an estimated $9.41 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 May 2018, this group had an estimated $7.08 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $16.50 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 83.1% 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 57.1% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 42.9%.

For more explanation on the e-commerce numbers, see Statistics Canada: Retail E-commerce in Canada.

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.

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