(TORONTO QUEEN STREET WEST STOREFRONT. PHOTO: KOTN)
Unique Toronto retailer, Kotn, which sells high-quality everyday wear made from authentic Egyptian cotton, is looking at potential expansion across the country and into the United States as its concept gains popularity.
Rami Helali, one of the company’s co-founders, told Retail Insider “we’re currently looking in multiple other Canadian cities for more retail locations.”
The company opened its first bricks and mortar store at 754 Queen St W, Toronto in March 2017. The store is about 800 square feet.
“We are an online first business and since then what we’ve learned with that interaction with the customers and learning what the needs are and having that conversation and building that community is invaluable,” says Helali. “I think the future is in this omni-channel, multi-touch point kind of blurring the lines between analog and digital and that is kind of the direction we’re heading in.”
He says more than half of the company’s online sales are in the United States so that too is a market for potential future growth in bricks and mortar locations.
Kotn launched in Toronto in 2015 when founders Helali, Mackenzie Yeates and Benjamin Sehl noticed a gap in the marketplace – high-quality, well-fitting basics weren’t affordable for everyday wear.
Kotn set out to solve this problem, starting first with their Egyptian cotton T-shirt, which has the quality and cut of its designer counterpoints yet is affordable enough for consumers to pick up in multiples.
The brand partners directly with Egyptian cotton farmers in the Nile River Delta to keep costs low while helping to revive a struggling agriculture business.
“We run social audits on all of our manufacturing partners. We make sure everyone’s getting paid fair wages,” says Helali.
“For us, for the industry to really rebound in a sustainable way and to really have the impact we want on the ground which is long-term poverty alleviation and long-term education, we want to start with education. It’s an area with really high illiteracy rates especially within women and we believe the way forward for that region and the industry is to start there.”
Kotn is building schools in the region of Egypt where their cotton is grown to stop the illiteracy epidemic there. They opened their first school in 2017, providing education for 40 students. They have mandated that more than 50 per cent of the students are girls as the illiteracy rates are especially high for women in the region. Kotn funds the building of a school and its teachers.
For Black Friday/Cyber Monday, Kotn set a goal to completely fund their second school with sales – as a result they raised $56,330.52, enabling them to build their second school in the Nile Delta in 2018. Every single dollar will be invested into things like the school infrastructure, roads, instructor training, uniforms, books and supplies.
Kotn’s co-founders were named to Forbes 30 under 30 Class of 2018 in the retail and commerce category. The letters in the company name don’t stand for anything specifically but it’s the phonetic spelling of the Arabic word for cotton.
“We are an essentials company made out of authentic Egyptian cotton that is ethically sourced. For us, there was a gap or a need for well-made basics that didn’t cost an insane amount that were made well and when we say made well that means the quality is there and that the people along the way are treated well,” says Helali.
“We started literally with the white T and for the first year and a half we just had good T-shirts in three colours – black, white and grey. And we started online and that went well. We added some of these staples done well in multiple layers.”
The retailer says the authentic cotton, grown in the Nile Delta, is Egypt’s “white gold” – finer, softer, and more breathable than any other cotton.
“By working directly with cotton farming families in Egypt, we want to rebuild the industry from the inside. We make our own fabrics from raw cotton bought direct from farmers at guaranteed prices. Our model is like farm-to-table, but for your clothes,” says the company.
“Our cotton is then sent to our cut-and-sew factory outside Alexandria. The responsibly-run operation employs locals, securing their craft and their livelihood. By scrapping the middleman, we’ve ensured a fair wage for them, and an honest price for you.”
Cadillac Fairview is making a $17-million investment to revitalize the food court at CF Chinook Centre, saying the redevelopment will elevate the shopping experience for Calgary consumers by modernizing the area and transforming the space into a CF Dining Hall.
Paige O’Neill, general manager of the shopping centre which is one of Canada’s most productive, says the mall’s dining space is consistently one of country’s busiest and most productive food courts.
The new CF Dining Hall “will be open and inviting, with more communal spaces that better reflect the tastes of our shoppers and community,” she says.
CF Chinook Centre (RENDERING: GH+A DESIGN)
O’Neill says the food court will go from the current 19 establishments to 20 when the renovation is completed.
“We’re losing three or four of our existing clients to make room for more seating and we’re adding three or four new clients joining us,” she says. “The deals haven’t been signed yet so I can’t reveal who they are.”
Canadian design firm GH+A is designing the new space — the company has led renovations at several of the country’s leading malls.
The project is slated for completion over two phases to allow sections of the food court to remain in operation for the duration of the construction period. The first phase will start January 14 with the closure of the south half of the food court, with completion and opening scheduled for June. The second phase will start in June with the closure of the north side of the food court, with completion and opening scheduled for October.
The project will see the entire existing food court renovated, improving the aesthetics, design and capacity of the space. The renovation will include expanding and modernizing units, enhancing décor elements like tiling, upgrading furniture with communal tables and banquets, and the implementation of sorting stations to improve the overall experience for guests. The project will also include enhanced features including a revamp of the Centre’s existing outdoor patio. The 30,000 square feet of redeveloped space will feature 835 seats.
Because of the redevelopment, a children’s carousel which has operated in the food court for many years is no longer there.
“The food court is almost 18 years old and it’s definitely time for a refresh and a reno of that space to make sure we continue that great experience for our guests that come to Chinook,” says O’Neill.
CF Chinook Centre (RENDERING: GH+A DESIGN)
This redevelopment works with the newly-opened 61st Avenue S.W. pedestrian bridge over Macleod Trail that connects to Chinook Centre.
The Centre’s revamped dining space will have direct access to the new pedestrian bridge.
“With the catalyst of the pedestrian bridge, it’s probably going to become one of our number one entrances leading into the food court,” says O’Neill. “And we just renovated our food court washrooms. So it’s this sort of really nice timing. The renovation has been discussed and on the table for a number of years.
“With the food court being 18 years old, it’s just a great opportunity to re-invest and continue the re-investment in the Centre knowing that the Calgary economy and the Alberta economy will come back. We don’t have a problem with the food court because it’s still one of the highest-producing food courts in Canada but it’s definitely dated and we think this will be a great investment for not only the clients that remain in the food court and for the guests to come and experience a brand new area.”
The investment marks the latest major upgrade to the Centre’s food court since the last completed revitalization in 2000, says Cadillac Fairview.
“Dining is an essential aspect of the overall shopping centre experience and we are delighted to evolve the Centre’s food court into a signature CF Dining Hall where guests can enjoy culinary delights in a premium environment,” says Josh Thomson, Vice President, Development, Cadillac Fairview.
CF Chinook Centre (RENDERING: GH+A DESIGN)
Beside the food court revitalization, Cadillac Fairview is investing an additional $4.5 million to the south portion of the Centre this year with a major focus on new tiling and railings.
“They’re hiring. Their store is looking amazing inside. My understanding is that their restaurant will not make the opening date but will be open by early Spring,” says O’Neill. “We’re very excited to have them open in just over a month from now.
Saks Fifth Avenue store that will open at CF Chinook Centre on February 22 (courtesy of Craig Nealy/Stantec)Saks Fifth Avenue store that will open at CF Chinook Centre on February 22 (courtesy of Craig Nealy/Stantec)
“It will be a huge complement to Nordstrom, to Hudson’s Bay, to bringing in more clients into the Centre for overall shopping but it definitely helps I would say elevate the experience and elevate the shopping opportunities for people in Calgary.”
O’Neill says Chinook Centre has no other news right now on new retailers other than Saks Fifth Avenue coming to the mall.
“But I think with the opening of Saks, with the developments that are happening within the Centre and just within the city of Calgary, it’s definitely a place that we hope retailers will want to join us,” she says.
The retail industry as a whole is in a state of transition, and 2018 will prove to be an interesting year. Sears Canada is about to close all of its stores, releasing millions of square feet of space to fill. Off-price retailing is about to see unprecedented competition as Nordstrom Rack enters the market this spring. Legal marijuana retail stores will become a thing in Canada for the first time, the future of NAFTA is in question under the Trump administration, and Amazon continues to make moves that could see it further gain market share. We’ll be busily reporting on much of this, as we predict 2018 will be a dynamic year with plenty of highs and lows for the industry.
In our 2017 forecast, which we published almost 12 months ago to the day, we predicted that 2017 would be a “slow year for retail expansion” in Canada. We were wrong. More than 50 international brands entered Canada by opening stores or concessions in 2017, which could very well be record-breaking. Brands continue to work with brokers to seek real estate for new locations, and retailers that have already entered Canada are now in the process of seeking to open multiple locations in new markets.
While this all sounds exciting, it also represents unprecedented competition that could see more homegrown retailers struggle and ultimately shutter. Survival of the fittest has never been more relevant than today for retailers operating in Canada, and things are changing quickly — consumer tastes are changing, the cost of living is skyrocketing in some markets, technology and e-commerce continue to take hold, and those who do not adapt risk dying. There will no doubt be more store closures in Canada in 2018, after some unfortunate bankruptcies that took place last year.
Image: Miniso
International Brands Continue to Expand in Canada
As mentioned, more than 50 international brands entered Canada last year by opening stores, and there has been a momentum over the past several years where at least 20 new retailers a year have entered the country. Many of the brands that opened their first Canadian stores in 2017 will now seek to open more locations in various markets in 2018.
A few expansions have already been confirmed. Perhaps the most aggressive is value-priced Chinese variety retailer MINISO, which now indicates that it plans to open about 100 stores in Canada this year, with a goal to have about 500 stores by the year 2021. It’s an ambitious goal, and the company might even achieve it — the company is already a hit with a segment of the population that is buying everything from kitschy plush toys to home goods, at remarkably low prices and often of reasonably decent quality upon inspection.
Pricey streetwear brand Off-White, is an example of an already expanding retailer, and it will open its second Canadian store at the end of this month in a laneway in downtown Vancouver, after opening its first store last year in Toronto’s Yorkville neighbourhood. Aussie eyewear retailer Bailey Nelson has just expanded into the Vancouver and Toronto markets, and is expected to keep that momentum as it moves across the country. Another eyewear retailer, SEE Eyewear, is looking to Montreal and Vancouver after opening its first Canadian store in Toronto. DXL Men’s Apparel entered the Ontario market last year, with a national rollout planned. Woolrich’s President says that he anticipates a Montreal location opening in 2018 (followed by Vancouver a year later) and candy retailer Sugarfina, which opened in suburban Vancouver in late 2017, is expected to soon announce its first Toronto location.
An interesting trend is brands opening their own stores, which has been increasingly common over the past several years. Montreal-based outerwear brand Moose Knuckles opened its first store at Toronto’s Yorkdale Shopping Centre in the winter of 2017 for example, with Canada Goose opening its first store across the hall about a year before. We’ll likely see more of this in 2018 as brands seek to go ‘direct-to-consumer’, with some finding that they can see greater profits by “cutting out the middleman”, ie multi-brand retailers.
NORDSTROM RACK’S THIRD CANADIAN STORE WILL OPEN THIS SPRING AT 1 BLOOR ST. E. IN TORONTO. (PHOTO: FIRST GULF/FIRST CAPITAL REALTY)
Oversaturation of Off-Price Retail?
Over the past several years now, there’s been a rapid expansion of off-price retailers in Canada, making some question if we’ll see a saturation point. TJX Companies Inc., which operates Winners, Marshalls and HomeSense stores in Canada, plans to continue expanding into Canada in 2018 with an anticipated seven new Winners stores, eight HomeSense stores, and an additional 15 or so Marshalls stores, eventually resulting in more than 100 locations in Canada for each banner. Hudson’s Bay Company’s off-price division Saks OFF 5TH entered Canada in March of 2016 and already operates 16 stores here, and intends to operate 25 locations by the end of this year. Nordstrom’s off-price division Nordstrom Rack will open its first Canadian location at Vaughan Mills near Toronto on March 22 of this year, with a goal of eventually operating between 10 and 15 stores in Canada, depending on opportunities.
It remains to be seen how the off-price segment does in Canada with all of the competition, though many existing stores appear to be quite busy. One challenge in 2018 could be sourcing designer product for some of these stores, however, as some brands are seeking to tighten their distribution and limit off-price selling in order to elevate their brand image in the eyes of the consumer. For those off-price retailers that rely on such third party suppliers, particularly TJX, this could pose a problem in the future if they continue to expand and seek merchandise to fill their stores.
FreshCo (Image: JACKMAN REINVENTS)
Grocery Wars Ongoing
The grocery industry is a tricky one — there’s a lot of competition primarily from a few key players, and margins are often tight. With e-commerce on the rise and some cities seeing more people moving downtown, the face of grocery retail is changing. Sobeys recently announced that it will be expanding its value-priced FreshCo banner into Western Canada for the first time, and smaller entrants such as Farm Boy, Organic Garage, Nations Fresh Foods and Seafood City continue to make inroads.
Click-and-collect groceries is becoming more popular than ever in some markets, and some consumers are getting their groceries delivered — something that could become more common now that Amazon owns Whole Foods, which could lead to more industry disruption. With Sears closing all of its Canadian stores this year, we may see some grocery stores relocate into demised former Sears spaces.
E-commerce Gains, but it’s Expensive
We’ll no doubt continue to see e-commerce grow as a percentage of overall retail sales, though it still remains well below 10% of all Canadian retail purchases. If you think about it, e-commerce is somewhat inefficient — it costs money to ship a product directly to someone’s home, and things become even more complicated if the consumer wishes to return the product. Despite this, consumers continue to demand online shopping options and leading retailers are addressing this by improving their online experience.
Some formerly pure-play e-commerce brands have gone on to open physical retail stores with considerable success, supporting the notion that a hybrid or ‘omni-channel’ model is desirable. As the world is increasingly online, though, we might begin seeing this as a ‘single channel’ with a combination of physical and online retail being optimal, if not necessary in order to be successful.
Marijuana Stores (Legal Ones)
If all goes as planned, on July 1 of this year, you’ll be able to buy weed legally in a local store near where you live, as is the plan generally in various provinces. There appears to be anxiety out there as provinces decide how marijuana retail will be carried out (some provinces will operate government-run stores while others will allow for some private enterprise) and we’re hearing from some design firms that are seeking to make the retail experience exceptional.
With less than six months until the legalization date, it remains to be seen how many legal retail spaces will be open by then, where they will be located, and how distribution will be coordinated. In hindsight, legalization may have been announced in haste without proper distribution plans in place, and now there’s a rush to try to get things sorted by the legalization deadline.
(ROBSON STREET IN VANCOUVER ON JANUARY 2, 2018. PHOTO: LEE RIVETT FOR RETAIL INSIDER)
Neighbourhood Nodes:
A few of Canada’s key street front retail areas are expected to see new retailers this year, and there are a handful of locations that are seeing most of the activity.
In Vancouver, the city’s Robson Street strip will continue to see new retailers enter the market, adding to a few recent and highly anticipated additions. MUJI opened its largest store outside of Asia on Robson Street in the fall, a few doors down from Canada’s first Ladurée retail space. Several retail spaces remain empty for the short term — some will be replaced with new tenants, and at least one strip will end up being demolished for a new commercial development (details to follow). Forever 21 will close its Robson Street location in the middle of the month, and rumours are swirling that Indigo could replace it as a sublease with the company’s updated ‘cultural department store’ concept. Regardless if the rumour is true, Indigo is in the process of a significant expansion that will see new stores, as well as replacement locations as it rolls out the new concept and does away with the ‘Chapters’ nameplate.
Adjacent to Robson Street is Vancouver’s Alberni Street ‘Luxury Zone’, which will continue to see strong activity into 2018. UK-based luxury footwear retailer Jimmy Choo will move into a 1,500 square foot retail space alongside recently unveiled locations for the likes of Van Cleef & Arpels and Hublot, and jeweller Montecristo will move into a retail space recently vacated by the Italian Kitchen restaurant (which has relocated). An announcement will be made for the retail space currently occupied by multi-brand womenswear retailer Bluebird, which will be relocating up the street, and the momentum will continue into 2019 with new stores for Cartier and Hermes on Burrard Street, as well as other openings that will be discussed on Retail Insider throughout the year.
Further up Bloor Street West towards Avenue Road, more luxury boutiques will be opening in 2018. We’ve already reported on Dior’s plans to open a massive two level retail space at The Colonnade at 131 Bloor Street West, only steps away from a relocated William Ashley store that will be unveiled early this year. We’ll be doing a feature on Toronto’s Bloor Street West this winter as part of our ‘street tours’ series, which is ongoing.
Toronto’s Queen Street West, which represents a diverse range of retailers along its stretch between University Avenue and Ossington Avenue and a bit beyond, will continue to see some new retailers. More mainstream brands tend to locate along the stretch between University Avenue and Spadina Avenue, and we’ll be discussing two new retailers on the strip this month in articles. The stretch of ‘West Queen West’, towards Trinity Bellwoods Park is considered to be a “cool” area and over the past two years, several significant international retailers have opened their first Canadian stores along the strip. It will be interesting to see where this goes because some are already saying that nearby Dundas Street West could come into its own as the next ‘hot’ address as Queen Street West continues to gentrify and possibly become ‘mainstream’ itself.
Montreal’s Sainte-Catherine St. W. will look different by the year 2020.
Montreal’s Sainte Catherine Street West is about to ‘go under the knife’ as it were, with plans that include reconstructing the public realm with new sidewalks and landscaping. The project, which begins construction this week, will take several years and some retailers are concerned that disruptions could lead to lost business. Regardless of the street construction, big things are planned for the street. Saks Fifth Avenue has said that it will be opening a 250,000 square foot flagship at the back end of the Hudson’s Bay building downtown, and the flagship Birks jewellery store is being renovated and modified for the inclusion of a boutique hotel. In the middle of the strip, downtown Montreal’s La Maison Simons store will be seeing a renovation, and several blocks to the west, the new ‘Holt Renfrew Ogilvy’ will become Canada’s largest location in the Holt Renfrew chain with about 250,000 square feet of space (the nearby smaller Holt’s on Sherbrooke Street West will close with the merger).
Montreal has several other terrific pockets of local retailers, and one area to take notice of is the stretch of Sherbrooke Street West in the city’s Westmount area. Zadig & Voltaire just opened its first Montreal-based store on the stretch, and several interesting and upscale retailers are located in the immediate area. Zadig & Voltaire’s moving into the area could signal something bigger.
Canada’s Top Malls Remain Strong
Canada’s top malls continue to thrive, with Toronto’s Yorkdale Shopping Centre taking the top spot again in Retail Council of Canada’s 2017 Canadian Shopping Centre Study. With sales of $1,653 per square foot, Yorkdale rivals some of the top malls on the continent, not to mention globally. The study notes that there are numerous malls with annual sales exceeding $1,000 per square foot, and the study also discussed some of the trends that it is seeing amongst the most successful malls.
Some of those trends will see prominence in 2018, particularly the idea that considerably more space will be devoted to food-and-beverage offerings in Canada’s malls. We’re already seeing a rush of full-sized restaurants opening in malls (it’s still hard to get a table at the recently opened Cheesecake Factory at Yorkdale), and the next trend in malls will be food halls, not unlike those being seen in some malls south of the border, as well as overseas. ‘Food courts’ continue to be renovated in the country’s top malls — that is, if they haven’t already done so. The past five years has seen billions of dollars of investment into Canada’s top shopping centre properties, and that investment is expected to continue at some centres into 2018.
(PHOTO VIA OXFORD PROPERTIES GROUP)
Other additions to malls include entertainment options — in 2018, several of the country’s leading malls will see new VIP Cineplex cinemas open on site and as well, The Rec Room will be opening in several malls this year. It’s all part of an effort to turn malls into community gathering places where people will come, spend some time, and spend some money.
We’ll be reporting on a few mall expansions in Canada this year, as some landlords continue to see value in investing in their properties not only to enhance the consumer experience, but to also add space. And it’s not just retail space — in more expensive cities such as Vancouver and Toronto, we’re seeing some mall landlords looking to intensify sites by adding residential and office towers on-site. A mix of uses could see malls truly become the ‘community centres’ which in many respects was the vision of architect Victor Gruen, who is credited as having invented the modern mall.
On May 2 of this year, as well, a new mall will open just outside of Edmonton at the entrance to Edmonton International Airport. Premium Outlet Collection at Edmonton International Airport, which is a partnership with Ivanhoé Cambridge and Simon Property Group, will see about 428,000 square feet of leasable space. Tenants will be announced shortly (they toured some locals through the site last week, on a condition that they sign non-disclosure agreements).
(RENDERING OF THE CF CHINOOK CENTRE SAKS FIFTH AVENUE STORE, OPENING FEBRUARY 22, 2018. CRAIG NEALY/STANTEC)
Luxury Retail Continues to Flourish
The luxury segment continues to see gains in Canada, with new mono-brand store openings as well as activity with multi-brand luxury retailers, including large-format stores such as Holt Renfrew and Saks Fifth Avenue.
Luxury retail in Canada is contained primarily in the Toronto and Vancouver markets, with dozens of standalone luxury brand stores in both cities. Toronto’s Bloor-Yorkville area continues to see new luxury store openings, with several planned for 2018. Downtown Vancouver, as well, continues to see activity as luxury brands seek to open stores and as discussed in the past, one of Vancouver’s biggest challenges is finding the right space for the luxury brands that want to be in the city.
Montreal is also seeing increased luxury retail with the expansion of its Ogilvy store to become a luxury ‘Holt Renfrew Ogilvy’ flagship, which will include the installation of shop-in-store concessions for some of the world’s top luxury brands (some of which are currently up the street at the current 1300 Sherbrooke St. W. Holt’s). As well, it remains to be seen when Saks Fifth Avenue provides an update on its proposed Montreal flagship store, which would include an 80,000 square foot ‘Quebec-themed’ food hall.
Sears Canada Closure to Flood Market with Real Estate, and Job Losses
Sears Canada is in the process of closing its Canadian stores, and about 15 million square feet of real estate will be coming onto the market. The demise of Sears Canada has been a long time coming, unfortunately, though a silver lining is that landlords have had time to figure out what to do to replace their existing Sears stores. We’re already hearing from some landlords that they’ll be repurposing their Sears spaces by splitting them up for multiple tenants, or even demolishing them for redevelopment. From a real estate standpoint, 2018 will be an interesting year as we report on what landlords are doing with their Sears spaces — some of the country’s top malls have a Sears store as an anchor, and landlords are already telling us that they’ll be executing their plans this year to deal with the spaces.
One tragic aspect of Sears Canada’s demise is the thousands of job losses, and we wish everyone luck in getting things sorted.
More Bankruptcies/Store Closures:
Several retailers doing business in Canada went bankrupt in 2017, resulting in some store closures — we saw the likes of American Apparel, BCBG, Bebe, Express and a few others close Canadian operations. This year could be challenging to a few other retailers, both homegrown as well as international companies operating here.
While it might be too soon to speculate on which retailers may close stores and possibly exit the market, we take note that American fashion brand J. Crew, which has been struggling financially, has closed two Greater Toronto Area stores since August. A location at CF Markville in Markham closed in the summer, followed by more recently at CF Fairview Mall in Toronto (Edmonton’s only full-priced store also closed in late 2016). Some are questioning what, if anything, will happen next.
In summary, we expect 2018 to be an interesting year for Canadian retailing and despite the challenges and competition, we encourage everyone to try to remain positive. We’ll be reporting on the Canadian retail industry throughout the year and will provide updates on what’s happening both with our exclusive content, as well as our curated Canadian Retail News From Around The Web.
Cleveland, Ohio-based paint retailer Sherwin-Williams continues to open stores in Canada, and the province of Quebec will be a particularly important target for the retailer this year, according to brokerage Think Retail.
Sherwin-Williams’ growth in Canada is about 10% annually, prompting it to further seek locations. In Quebec, the company is looking to open two or three stores in 2018, and then between five and six in 2019. According to Think Retail, ideal storefronts are between 2,800 square feet and 4,000 square feet along high streets and in open air centres in several target markets.
Sherwin-Williams has more than 225 stores in Canada with 48 in British Columbia, 28 in Alberta, seven in Saskatchewan, nine in Manitoba, 88 in Ontario, 37 in Quebec, four in New Brunswick, two in Newfoundland, six in Nova Scotia and one in PEI.
Over the past three years, Sherwin Williams has opened 48 new stores in Canada.
Sherwin-Williams was founded in Cleveland in 1866, and it celebrated its 150th birthday last year. 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 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, and through more than 4,200 company-operated paint stores. The company boasts annual revenue in excess of US $15 billion.
(YONGE STREET ENTRANCE ON A PARTICULARLY CHILLY DAY IN TORONTO. PHOTO: CRAIG PATTERSON)
South Korea’s Samsung has opened its largest store in Canada at CF Toronto Eaton Centre, spanning about 21,000 square feet over two levels. The highly experiential retail space is Samsung’s sixth in Canada, and is considerably larger than its other Canadian stores.
The store features two entrances — a street level access point facing onto Yonge Street, as well as a separate entrance from within the mall, shared by Nordstrom, Uniqlo and H&M. Canadian design firm Quadrangle designed the new space, which is modern and bright, featuring ample windows overlooking Yonge Street and Dundas Square.
On the main floor, the interactive Samsung Gear VR and Gear360 zones ‘transport’ visitors across Canada, over rollercoasters and beyond — it’s already a hit among visitors since the store has been open. The store’s ‘luxe’ TV experience zone showcases Samsung picture, sound and design innovations.
CF Toronto Eaton Centre Lease Plan (Image: Cadillac Fairview)Samsung at CF Toronto Eaton Centre (Image: Samsung)
CF TORONTO EATON CENTRE SAMSUNG (SWEEPING STAIRWAY ANCHORS THE STORE. PHOTO: SAMSUNG)
There’s also a full lineup of Samsung smartphones and tablets, with an expansive assortment of mobile accessories to personalize guests’ favourite Samsung devices. Onsite Samsung Smart Service and trained Galaxy Consultants guide guests through the experience, answer questions and provide technical support and repairs for mobile products. In addition, Samsung mobile device owners are also able to coordinate 1:1, in-person sessions with Galaxy Consultants at CF Toronto Eaton Centre store.
A sweeping staircase guides visitors upstairs to the second level. The stairway acts as a focal point for the store, with warm wood contrasting with white railings.
One of the particularly unique features to the store is a fully functioning Samsung demo kitchen on the second level. Visitors can watch cooking demonstrations and engage with various events and activities that will be held in the store over the course of the year. None of Samsung’s other Canadian stores feature demo kitchens (partly due to lack of space).
The second level also includes seating areas as well as various demonstration areas, which can be modified depending on if there are any scheduled activities. Visitors are also encouraged to come in and relax on the store’s comfortable seating, offering a respite from the hustle and bustle of downtown Toronto.
Samsung at CF Toronto Eaton Centre (Image: Samsung)
Minimalist Japanese retailer MUJI has publicly announced that it will be expanding its first Canadian store, located at the Atrium in downtown Toronto, and that it will temporarily relocate into a temporary space during the construction. The expansion is expected to grow the Toronto store to become more in line in terms of size of MUJI’s two West Coast locations, which are both larger than its current four Toronto stores.
MUJI opened at the Atrium in November of 2014 in a 4,373 square foot retail space formerly occupied by a Blacks Camera store. MUJI then proceeded to open larger stores in some of Canada’s leading malls — its second Canadian location spanning 5,225 square feet opened 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.
MUJI cracked the 7,000 square foot mark in Canada when it unveiled a 7,770 square foot space to massive crowds in August of 2017 at Metropolis at Metrotown in Burnaby — the crowds were no doubt because this was MUJI’s first store on Canada’s West Coast. An impressive 14,507 square foot store opened on Robson Street in Vancouver in December of 2017, making the store MUJI’s largest outside of Asia.
MUJI’s current location at 20 Dundas Street in the Atrium will temporarily relocate to a space towards Bay Street, as per the floor plan below, while the current space is expanded.
Women’s retailer Long Tall Sally recently relocated from its 3,670 square foot retail space, adjacent to MUJI, to a new one across the hall. The combined retail spaces could see MUJI occupy more than 8,000 square feet and that is the case, this could become Canada’s second-largest MUJI location after the Robson Street flagship in Vancouver.
“After welcoming Muji to Canada with their first store at Atrium in 2014, H&R REIT and Atrium have continued to work closely with this iconic Japanese retailer. We recognize their exceptional performance and strong connection with the Canadian consumer. As Muji moves to a new interim location on the northeast corner of Bay & Dundas within Atrium, we will continue to work closely with their team to achieve optimal positioning and expansion at Atrium in concert with our overall redevelopment objectives,” said Mike Parker, President of MPA Inc., responsible for development and leasing at Atrium on behalf of H&R REIT, its owners.
Mr. Parker went on to further discuss the property, including its exceptional location.
“Atrium is a first class, mixed use office/retail complex of approximately one million square feet in the heart of Downtown Toronto, Yonge and Dundas and spanning a city block bounded by Yonge, Dundas, Bay and Edward Streets. Atrium is directly connected to the TTC Dundas subway platform, Toronto’s amazing underground PATH network, adjacent to Ryerson University and is immediately north of CF Toronto Eaton Centre. Earlier this year, Atrium welcomed Michael Jordan’s first store to Canada at 306 Yonge (approx 15,000sf) and is home to other first-class retailers including LCBO, Canada Post, CIBC, Rexall, The Kitchen Table, Long Tall Sally, Boathouse and more.”
In an interview with Retail Insider in late 2016, MUJI’s Canadian President Toru Akita revealed that the company plans to operate between 15 and 20 stores in Canada by the year 2020. MUJI currently operates 14 American stores, with more to follow as it expands in the US. Of the locations currently open, seven are in the New York City area, three are in the San Francisco Bay area, one is in Boston, and three are in southern California.
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 (with 422 in Japan and about 428 internationally), 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.
Keep Cool, with its style of providing a balanced, low-pressure gym without judgement or intimidation, says it is the perfect escape from life’s demands and pressures.
Tanguy Saillant, director of operations for Keep Cool Canada, says the Toronto location at 530 Yonge Street will open at the end of January or beginning of February in 6,500 square feet.
“We’d like to open two more locations next year in 2018 in Toronto. My plan at the beginning is to open three gyms in two years and after that I just need to know if the concept is working or not. If we have success or not, and if we have success probably we’ll actually open more and maybe go to franchising,” says Saillant.
(RENDERING OF SIGNAGE FOR THE NEW KEEP COOL AT 530 YONGE ST. IN TORONTO)
He brought the Keep Cool concept from France where it was established in 2002 and it currently has close to 150 gyms there as Franchising Manager.
The Toronto location is its first foray into the North American market.
The company used Montreal-based POTLOC‘s crowdsourcing platform to determine where the demand is for new locations.
POTLOC is transforming the way market research is done in the retail industry. Its mission is to build smarter neighbourhoods by giving consumers a voice. Every citizen in a defined trade area is asked to choose the next stores they would like to see open in their neighbourhood. These hyper-local consumers’ insights are then used by retailers, real estate companies and cities to optimize the local retail offering.
Image: Keep CoolImage: Keep Cool
“We’ve worked with POTLOC to help understand what could be the expectation of Canadian people in the gym. We wanted to understand what is most important for people,” says Saillant.
“For example, complimentary towels. We don’t do this in France but here it was the first thing people asked when I did the survey.”
Keep Cool’s motto is Le Sport Bonheur which translated to English means Sports Happiness. The Canadian motto, modified, will be ‘Fitness from France’.
In Toronto, it will include a bike studio, an elliptical studio, a studio gym, and several learning classrooms. It will have all the amenities of a modern fitness location – WiFi, TVs, Internet, private change rooms and showers, modern equipment, and a team of trainers.
Image: Keep CoolImage: Keep CoolImage: Keep Cool
“The gym is available from 5 a.m. to 11 p.m. every day. You can access the gym when you want and you can do what you want when you want,” says Saillant. “We are trying to create a very welcoming atmosphere.”
Here’s what the company says about itself on its Facebook account:
“We’re not extreme or hardcore. We’re not a tribe or cult. We’re a fitness community. Located in downtown Toronto, our gym is an open and welcome place without judgement or intimidation.
Image: Keep Cool
We believe in balance. In France, the importance of fitness is matched by the importance of wine. A healthy life shouldn’t be one without indulgences. We want you to get something from the journey, to enjoy the satisfaction of small wins and progress in your workouts. You don’t need another exercise or weight loss commitment to obsess over. You need a release from life’s demands and pressures.
You need empowerment, support and guidance from personal trainers who aren’t pushy. You need a gym that’s right for you. You need, Keep Cool.”
About 50 international retail brands entered Canada by opening stores in 2017, which could be a record. As a comparison, we counted 21 brands that entered Canada in 2016, 28 in 2015, and 20 in 2014 when we began counting.
The following list of 2017 international retailers that entered Canada is ordered roughly from the beginning of the year until December, and includes a brief description of each retailer, as well as a link to a Retail Insider article if we wrote about it, where applicable.
Winter 2017: The Winter of 2017 saw a diverse range of openings including very high-end, as well as value-priced retail.
Stefano Ricci
Stefano Ricci: In January of 2017, super-luxury men’s fashion brand Stefano Ricci opened its first standalone Canadian store. The 2,600 square foot boutique is located at 1139 West Georgia Street, next to the new Trump Tower in the city’s expanding ‘Luxury Zone’.
The store features Stefano Ricci’s pricey menswear as well as fragrances, accessories (such as leather goods and cuff links) and home goods such as porcelain and crystal dinner services, silverware and luxury linens. Every item in the store is made by hand in Italy, using the highest quality of materials. The store is co-owned and operated by Manuel Bernaschek, owner of popular Vancouver-based Showcase Pianos.
While there are no immediate plans for more Stefano Ricci locations in Canada, Mr. Bernaschek said that there’s a possibility that Toronto could be the next Canadian city to see a Stefano Ricci boutique.
Off-White
Off-White: In early 2017, luxury streetwear brand Off-White officially opened its first North American store in Toronto. Known for its edgy fashions that are a cross between “streetwear and high fashion”, featuring thick diagonal stripes, Off-White’s Virgil Abloh (who is also Kanye West’s creative director) launched the brand online in 2013 and held its first Paris showroom presentation in January of 2014.
Off-White’s Toronto store is located at 83 Yorkville Avenue, in an area that is rapidly adding luxury retailers. Virgil Abloh says that he chose Yorkville over other areas of Toronto for a few reasons. “The Off-White brand is an updated luxury concept,” he said. “I show in Paris because it’s about this younger generation’s influence on high fashion.” He snapped up the Yorkville space because of its proximity to other luxury brands, instead of locating on trendier but less affluent Queen Street West.
We coordinated a 3D tour of the Toronto Off-White space with Warren Vandal of GEOmarketing Solutions, who uses an innovative Matterport platform to photograph stores to make it appear that one is walking through the live space.
Towards the end of this month, Off-White will open a second Canadian store in Vancouver, in a laneway between Robson Street and Alberni Street.
galibelle
galibelle: Innovative Portuguese footwear brand galibelle (spelled with a lowercase ‘g’) opened its first Canadian boutique on Edmonton’s Whyte Avenue in early 2017, and a second in Kelowna shortly thereafter.
The concept is unique and simple — consumers first pick a desired shoe sole, then choose from a variety of potential top straps that interchangeably button onto the sole. With over 30 different sole styles and over 1,000 different interchangeable straps of various colours and materials, women are able to customize their sandals, heels or boots, depending on the occasion.
Canadian master franchisees David and Lisa Broesky brought the concept to Canada after discovering galibelle while on a holiday in Barcelona, Spain. The Edmonton store measures less than 800 square feet in size and carries a wide variety of galibelle styles, as well as the brand’s boots and accessories. The Kelowna store is a bit larger, spanning about 1,200 square feet. As the concept expands, stores could be as small as 500 square feet in size, said Mr. Broesky.
Style Encore (PHOTO: WINMARK)
Style Encore: Minneapolis-based Style Encore, operating under the Winmark Corporation umbrella, officially opened its first Canadian store last winter in Guelph, Ontario. The unique women’s resale retail concept is expanding its Canadian operations rapidly under a franchise model.
The Style Encore retail concept caters to women in their late 20’s and upwards, selling gently-used clothing, footwear, handbags and accessories. Fashions range from casual to dressy, with Style Encore buying items that have been in retail stores within the past couple of years in order to reflect current trends. Sizes range from size 0 to 4X, and the company also makes it clear that it doesn’t sell counterfeits by taking measures to ensure brand authenticity. Style Encore is working with Don Gregor of Aurora Realty Consultants as its Canadian broker.
SoulCycle
SoulCycle: American spin cycle fitness studio concept SoulCycle entered the Canadian market in early 2017 with a location on King Street West in Toronto. Two more have since opened — one in Toronto’s Yorkville area, and another in Vancouver’s Yaletown area.
“It’s exciting that SoulCycle is opening its first studio in Canada, in a premier brick and beam building along King Street West – right in the heart of the action in downtown Toronto”, said Hilary Kellar-Parsons of brokerage Avison Young, who negotiated the Toronto deal in partnership with Avison Young’s Tyler Sopik.
SoulCycle classes incorporate upper body exercises and high-energy music into each class, set in a dark candlelit room. SoulCycle is known for it’s cult following of riders, with a loyal clientele including names such as Michelle Obama, Oprah Winfrey, David Beckham, Demi Lovato, and Lady Gaga.
Liv Bicycle Boutique
Liv Bicycle Boutique: In January of 2017, Liv Vancouver Bicycle Boutique opened its first Canadian store on West 4th Avenue on Vancouver’s West Side. The store is also the first cycle store in Canada to focus on women.
The store deals exclusively in Liv bicycles, along with Liv and complementary brand clothing and accessories.
Spring 2017: The Spring of 2017 was a busy time for store openings in Canada, again with a mix of value-priced and luxury brands.
Miniso Storefront
MINISO: Chinese variety retailer MINISO, which positions itself as a ‘Japanese lifestyle brand’, opened its first Canadian stores in Vancouver in the spring of 2017, and has big plans for Canada. The company says that it could eventually operate as many as 500 stores in Canada — more than a dozen are now open in BC, Ontario and Alberta, and 100 are expected to be open by the end of 2018.
MINISO is a value-priced retailer that might be classified as a variety store, specializing in household and consumer goods that include cosmetics, stationery, toys and kitchenware. It was co-founded in 2013 by Japanese designer Junya Miyake and Chinese entrepreneur Ye Guo Fu, and is headquartered in Guangzhou, China.
Richard Mille
Richard Mille: One of the world’s priciest and most prestigious watch brands, Richard Mille, opened a freestanding store in Toronto’s upscale Yorkville area in the spring. Swiss-based Richard Mille features some watch styles that are priced in excess of $1 million.
The Toronto boutique opened at 118 Yorkville Avenue, at the base of the prestigious Hazelton Hotel. Jeweller Louis Black operates the Richard Mille boutique under a licensing agreement — both of them are on the move, and will soon relocate to the second floor of 135 Yorkville Avenue into a considerably larger retail space.
Richard Mille boutiques are quite rare, with locations in selected cities that boast affluent locals and tourists. In the United States, there are five Richard Mille boutiques in four cities.
Maison Valmont
Maison Valmont: Pricey Swiss cellular skincare brand Valmont opened its fourth La Maison Valmont location in the world at Vancouver’s upscale Oakridge Centre. More Canadian locations could follow, though growth will be slow as the company tests out the new format in various global markets, it says.
The Oakridge Centre La Maison Valmont retail space spans 1145 square feet on one level, and is located between Montecristo Jewellers and Shoppers Drug Mart beauty concept Murale. La Maison Valmont features two treatment rooms, a lounge area, and a retail space selling the brand’s skincare along with products by brand By Terry, as well as a selection of jewellery made in Murano, Italy.
Valmont was founded in Switzerland in 1985 by husband-wife team Didier and Sophie Guillon, and the brand is known for its high-performing anti-aging product range, with substantial price tags. Some creams cost in excess of $600 each.
The 2,800 square foot Vancouver store, located at 47 Water Street in the city’s hip and historical Gastown area, features custom furniture built from local salvaged wood, iron beams, wooden floors and imagery of Filson dating back to the late 1800’s. Street level windows will showcase apparel, bags, and accessories for both men and women. Filson’s second Canadian store opened in Toronto at 694 Queen Street West.
Filson (originally named ‘C.C. Filson’s Pioneer Alaska Clothing and Blanket Manufacturers’) was founded in Seattle in 1897, and is known particularly for its clothing and luggage, as well as its guarantee. The company designs, manufactures and distributes its products, which feature rugged designs with prices in the mid to upper-end range. Filson partnered with broker Tony Flanz of Think Retail for its initial Canadian expansion.
Footaction (PHOTO: CRAIG PATTERSON)
Footaction: New York City-based Foot Locker launched the first International location for its Footaction banner in the spring. Located at CF Toronto Eaton Centre in Toronto, the new space is unique in how it includes a number of its brands in separate shop-in-stores. The 6,500 square foot store is located on ‘Level 1’ of the mall.
The three shop-in-stores include Nike Kicks Lounge at Footaction, adidas Originals Collective at Footaction, and Puma Select at Footaction. As well, Footaction is launching “elevated event and retail storytelling spaces” in key North American cities called ‘Capsule’. Toronto’s is called Capsule|416 by Footaction and according to the company, it takes cues from local street style.
Bailey Nelson
Bailey Nelson: Australian eyewear retailer Bailey Nelson launched its corporate Canadian store expansion in the spring, with plans to expand into various markets over the next several years. Vancouver was the brand’s Canadian launch city, and a Toronto location followed on Toronto’s West Queen West in the fall.
The company will look to open multiple locations in each market it enters, she noted, clustering stores in order to build a customer base. Following Vancouver and Toronto, Bailey Nelson will seek to expand into Ottawa and other major Canadian cities.
Founded in Bondi Beach (Sydney) Australia in 2012, Bailey Nelson retails high-quality, on-trend glasses and sunglasses at a moderate price-point. It designs and manufactures its high-quality frames and uses top-quality lenses.
Ollie Quinn
Ollie Quinn: Value-priced UK-based eyewear retailer Ollie Quinn initiated a North American expansion that included launching nine boutiques in Canada in the spring. The company’s growth plans are ambitious, with an anticipated 30 stores expected to open in North America over the next two years, as well as an equal number in the UK.
Ollie Quinn was founded in London in May of 2013 by four friends, two of which are Canadian. Its Canadian operations launched in March of 2014, though its stores have only just recently been rebranded under the Ollie Quinn nameplate.
Kohler
Kohler: Renowned kitchen and bathroom fixtures brand Kohler opened its first Canadian Kohler Signature store in Vancouver in the spring of 2017. The 5,000 square foot retail space is located in the city’s upscale ‘South Granville’ retail area.
The store is owned and operated by EMCO Corporation. The retail space provides an upscale shopping atmosphere, as well as expert customer service. Consumers and design professionals are provided a hands-on opportunity to experience the latest kitchen and bath products exclusively from the Kohler Co. brands.
Le Labo
Le Labo: Estée Lauder-owned fragrance brand Le Labo opened its first freestanding Canadian store in Toronto in spring, at 876 Queen Street West. A Vancouver location is expected to be announced shortly.
The pricey Le Labo brand was founded in 2006 as a collection of 10 fragrances by Fabrice Penot and Edouard Roschi. The number in the fragrance name indicates the number of notes in its composition and the name of material (Vetiver, Jasmin, Labdanum) refers to the most prominent note within. The brand now features 45 perfumes, with its most recent having been created in 2015. Prices generally range between $100 and over $500 for fragrances and related products. Le Labo was acquired by New York City-based beauty conglomerate Estée Lauder in 2014.
Emily Masuda negotiated the deal — Ms. Masuda recently joined Marcus & Millichap as Senior Broker and Director, National Retail Group, and she’s been involved with other deals in the area.
Besides the new Toronto store, Illesteva operates eight store locations, seven of which are in the United States. Illesteva was founded in New York City in 2010, and it sells eyewear that is handmade in France and Italy. Designs include classic shapes that utilize contemporary materials (such as acetate, bamboo, wood, titanium and natural buffalo horn), resulting in a brand that is both trendy as well as pricey. The brand has recently expanded its offerings to include a line of hand-finished leather goods, umbrellas, backpacks and bags, transforming Illesteva into a lifestyle brand.
Oomomo (PHOTO: CONNECT2EDMONTON)
Oomomo: The ‘100 Yen’ Japanese variety store concept Oomomo entered Canada with a 6,000 square foot space at West Edmonton Mall in the spring of 2017. More are expected to follow, with the Albertan licensee saying that its focus will initially be on Alberta, prior to expanding elsewhere.
The store is located at busy entrance 48, which is said to be the busiest access point to the mall because it’s also next to a major transit stop.
MUJOSH was founded in 2010 and it already has over 700 boutiques globally, operating both freestanding stores as well as department store shop-in-stores. Its stores are in Mainland China, Hong Kong, Singapore, Thailand, Malaysia, Australia and now, Canada. We’re aware that other mall landlords have been in talks with MUJOSH to open stores.
DXL Men’s Apparel: In the spring of 2017, American multi-brand men’s plus-sized retailer DXL Men’s Apparel opened its first Canadian store in Ajax, Ontario. A second store followed soon after in Mississauga. The company is expected to expand across Canada over the next several years.
L’ Éclair de Génie
L’ Éclair de Génie: Popular Paris-based dessert retail concept L’ Éclair de Génie opened its first Canadian location in the spring at 1210 Robson Street in Vancouver.
Pastry chef Christophe Adam has opened over 20 of the éclair shops around the world, including Paris, Japan, Hong Kong, Milan, and Moscow.
“We have 257 kinds of éclairs, and I still have fun playing with new flavours, textures and colours,” said Adam in a press statement. “The éclair must have oomph, with a dazzling, modern look.”
Summer 2017: It was the summer of luxury retailers in 2017, with several pricey jewellery and watch brands opening stores in Toronto and Vancouver.
The boutique’s interior features pop art paintings by renowned American artist Kevin T. Kelly, and it is decorated with American walnut floors and quadrille wood paneling. Also included is a VIP seating area. Yorkdale’s Breitling is operated in partnership with local watch and jewellery retailer European Boutique, located in the western part of the mall.
Hublot
Hublot: LVMH-owned Swiss luxury timepiece brand Hublot opened its first freestanding Canadian boutique in Vancouver over the summer. Located in the heart of the city’s expanding ‘Luxury Zone’ at 1080 Alberni Street, the 2,800 square foot store is one of Hublot’s largest globally.
Hublot was founded in Switzerland in 1980 by Italian Carlo Crocco — a scion of the Italian Binda Group dynasty, best known for making Breil watches. Hublot is named after the French word for “porthole”, and the first watch that he created featured the first natural rubber strap in the history of watchmaking — a feat that took three years of research to create. In 1998, Hublot was acquired by French luxury conglomerate LVMH (Louis Vuitton Moet Hennessy), and it continues to operate as a subsidiary.
Lipault Paris
Lipault Paris: Lipault Paris, the upscale French luggage company, opened its first freestanding North American location at the McArthurGlen Designer Outlets in Vancouver in the summer. It’s the first phase of an eventual retail expansion into the North American market.
Lipault is distinctive for its monochromatic yet vivid colour scheme, designed as a lightweight alternative to more conventional luggage sets. Each line contains the complete set of travel accessories, from large suitcases and carry-ons to laptop cases and toiletries kits. The monochrome look and minimalist design adheres to the aesthetics of Parisian chic, while emphasizing efficiency and utilitarianism.
DBbabies
DBbabies: High-end children’s retailer from Dubai, DBbabies, made its debut in the Canadian market with a new boutique near Montreal, marking what was expected to be the beginning of a cross-country expansion for the brand. It didn’t last long, however — it appears that both of its locations in Montreal have closed.
DBbabies specializes in essentials for children ranging in age from newborns to eight years old. Co-founded by Montreal native Danny B. Haddad in 2007, the chain operates seven boutiques throughout the UAE and Oman, as well as an online store serving those regions.
Vistaprint: Dutch ecommerce brand Vistaprint opened its first ever brick and mortar retail space, and it chose Canada, specifically Toronto, as the launch city. The new Vistaprint Studio targets small businesses in the area with Vistaprint services, and also offers workshops throughout the year. Vistaprint says that the initiative is a “truly seamless experience between the online shop and retail space.”
Located at 720 King Street West, the new 1,700 square foot Vistaprint Studio is contained in a bright, south-facing retail space just west of Toronto’s downtown core. Consumers can touch and feel products, and get face-to-face assistance from ‘VP Coaches’. Vistaprint recognized that in a recent survey of the company’s North American customer base, 64% of business owners want more one-on-one in-person support when designing their new marketing materials.
Minotti
Minotti: Upscale Italian furniture brand Minotti launched a Canadian flagship showroom in the summer, with potentially more planned as the brand continues to establish itself in the Canadian market. Minotti recently opened at 102 Berkley Street in Toronto’s upscale King East Design District, joining a number of other high-end home furnishings retailers in the area.
Minotti’s new Toronto flagship showroom was opened under the direction of Roman Cholasta and Maryse Fafard — Roman’s family brought the brand to Canada almost two decades ago. The Berkley Street showroom is a relocation of the previous Minotti location on Davenport Road — the new space is roomier, and joins a number of new home furnishings retailers in the burgeoning King East Design District.
Michael Jordan/Jordan Brand
Michael Jordan/Jordan Brand: In June of 2017, Nike in partnership with Footaction (a Foot Locker subsidiary) launched North America’s second Jordan Brand store. The 9,000 square foot 306 Yonge Street Toronto location follows the successful 2015 launch of the Jordan Brand’s flagship store in Chicago.
Touted as a landmark for basketball culture in Toronto, the new store seeks not only to be a world destination for Jordan brand apparel and sneakers, but a hub for Toronto’s vibrant basketball community.
We coordinated a 3D tour of the Toronto Jordan store with Warren Vandal of GEOmarketing Solutions, who uses an innovative Matterport platform to photograph stores to make it appear that one is walking through the live space’s three levels.
Pablo Cheesetarts: Osaka, Japan-based Pablo Cheesetarts opened its first Canadian location in the summer on Dundas Street West in downtown Toronto. If its lineups are any indication, the concept could see a rollout Canada-wide.
We have yet to try it, and have heard mixed reviews — taste and consistency are subjective, feel free to comment at the end of this article with what you think.
Hyundai launched Genesis as a standalone marque in November of 2015 and in November of 2016, the company launched its Canadian eCommerce site.
“Genesis goes beyond offering exceptional vehicles by providing a human-centred purchase and ownership experience,” said Brand Director Michael Ricciutto. “Genesis delivers personalized service every step of the way with the Genesis-at-Home concierge service and now, with the first retail store in Genesis Downtown, luxury boutiques.”
By 2021, Genesis Motors anticipates operating 32 Canadian locations, according to Mr. Ricciutto. These will include freestanding stores (both mall and street-front) as well as showrooms in other dealerships. Genesis plans to have six new vehicle models by 2021, which the company expects to be a hit with its all-inclusive pricing, Genesis at Home concierge for sales and service, complimentary scheduled maintenance, and comprehensive warranty.
Lorna Jane: Australian activewear brand Lorna Jane has quietly entered the Canadian market with a new store that opened at CF Shops of Don Mills over summer, and a popup shop at Yorkdale Shopping Centre that ran for the month of December. The company also has retail spaces in Calgary and Vancouver under different licensees, resulting in a complicated situation with what appears to be a lack of communication amongst them (including coordinating with the press to discuss their local operations).
The company, which operates more than 220 stores across Australia and 20 stores in the U.S., offers what is says is high quality, fashionable activewear for women.
Fall/Winter 2017: The latter part of 2017 saw a whirlwind of store openings in Canada — 17 opened first stores in Canada in a period of less than four months.
Belstaff: British luxury heritage brand Belstaff opened its first freestanding Canadian boutique at Toronto’s Yorkville Village shopping centre in the fall. The 1,100 square foot storefront is operated in partnership with Zappacosta family that has been in business in the area for a generation. Belstaff was the first of several upscale boutiques that opened at Yorkville Village (formerly ‘Hazelton Lanes’) this fall, as the centre regains its position as the heart of the affluent Yorkville community.
“Since the launch of Eleventy North America, Toronto has been our top performing market. This is an exciting opportunity to offer the full line to the city that has shown its appreciation for Eleventy from the very beginning,” said Geoff Schneiderman, President of Eleventy North America. “The partnership with TNT to open our first freestanding boutique is a very natural marriage between the brands,” added Mr. Schneiderman.
Eleventy was founded in 2007 by Marco Baldassari and Paolo Zuntini, and it’s particularly known for its upscale casual fashion design with a soft sartorial style. Eleventy has a network of 20 mono-brand boutiques in Europe and Asia, and is sold in over 500 speciality and department stores worldwide.
Zadig & Voltaire (PHOTO: CRAIG PATTERSON)
Zadig & Voltaire: Paris-based fashion brand Zadig & Voltaire opened two standalone Canadian stores in the fall — one in Toronto at Yorkdale Shopping Centre, and another soon after in Montreal’s Westmount area on Sherbrooke St. West. The standalone store openings coincide with Zadig & Voltaire’s exiting Holt Renfrew as a vendor earlier this year.
Seafood City: California-based Filipino grocery chain Seafood City opened its first store in Canada in Mississauga in September. Considered to be ‘more than just a grocery store’, the wildly popular concept is expected to open locations in selected markets nationwide.
Located at Heartland Town Centre in Mississauga, the new 50,000 square foot Seafood City store features fresh seafood as well as meat, fruits and vegetables, and “special spices and ingredients that Filipinos grew up with and have learned to love,” according to the company. Included are “Traditional products that they have missed and remind them of home, but also new products from the different regions of the Philippines”.
More Canadian locations are planned, and the Mississauga store is said to be very busy.
RH Gallery
RH Gallery: RH, aka Restoration Hardware, opened a massive four-level Toronto Yorkdale Shopping Centre flagship in the fall. While it’s not the first location for the retailer in Canada, Yorkdale marks a first for the company’s super-sized flagship concept. The store looks like a spectacular mansion, with indoor and outdoor retail spaces, a courtyard café, interactive design atelier, and rooftop conservatory/park.
The flagship spans a total of almost 70,000 square feet of interior and exterior space, including entire floors dedicated to RH Interiors, RH Modern and RH Outdoor. This store also includes an interactive Design Atelier, offering professional interior design services in a studio environment.
The family business was founded in 2010 by father-son team Daniel and Jonathan Abbitan, with a goal of offering quality, affordably accessible eye and hearing care while also providing personalized, customer-centric service. Acuitis offers an ‘all inclusive’ service for its eyewear including eye examinations, mounting, lenses and any required adjustments. Glasses are often ready within an hour, with prices ranging from $120 to $550.
The 2,750 square foot retail space, designed by award-winning Burdifilek, aims to capture “the brand’s ethos for community, freedom, authenticity and balls-to-the-wall attitude,” by providing a “concept of a modern rebellion that emerges in this global brand concept”, according to Moose Knuckles. Flooring is real wood tiles, a wall is clad in raw steel, and there’s a deerskin couch covered in vinyl — it was explained that it was a take on ‘grandma’s sofa’.
The Yorkdale Moose Knuckles lease deal was negotiated by the broker team behind DWSV Remax Ultimate Realty Inc. (David Wedemire and Stan Vyriotes).
Cheesecake Factory
Cheesecake Factory: While not exactly retail, popular US-based restaurant chain Cheesecake Factory opened its first Canadian location at Toronto’s Yorkdale as well, spanning in excess of 10,400 square feet with two covered patios.
Cheesecake Factory replaced a Milestones restaurant that occupied a space facing north, near Yorkdale’s Hudson’s Bay store. The restaurant features imported limestone floors and custom wood columns, hand-painted murals and modern lighting.
Sugarfina (PHOTO VIA TONY FLANZ)
Sugarfina: Los Angeles-based luxury ‘grownup’ candy retailer Sugarfina opened its first freestanding Canadian retail location in the fall at Metropolis at Metrotown east of Vancouver. There are plans for more as the brand expands with the help of a newly announced $35 million growth equity financing from private equity firm Great Hill Partners, and Tony Flanz of Think Retail represented Sugarfina in its deal with Metropolis at Metrotown’s landlord Ivanhoé Cambridge.
Sugarfina confirms that the company intends on operating standalone stores in Vancouver as well as in the Toronto market, with as many as 10 locations in Canada in the coming years.
Sugarfina stores feature premium items made from high-quality ingredients, sourced directly from artisan candy makers around the globe. Products include gourmet chocolates, caramels, gummies, malt balls, licorice and other delicious confections. Champagne-infused gummies and maple bourbon caramels have been popular, with celebrity endorsements helping grow brand awareness. The Sugarfina concept has grown rapidly, now boasting 29 boutiques in the United States with three of those being located in Nordstrom stores.
Beretta: Firearms brand Beretta Italy opened its only boutique store-in-a-store in Canada at Al Flaherty’s Outdoor Store in Toronto in the fall of 2017. The boutique occupies about 300 square feet of space, while Al Flaherty’s exists in about 15,000 square feet which includes its warehouse.
The boutique offers a variety of the high-end Beretta product from firearms to clothing to shooting accessories and equipment.
Dyson
Dyson: UK-based household and technology ‘reinvention’ brand Dyson opened its first freestanding Canadian ‘Dyson Demo’ store at Toronto’s Yorkdale Shopping Centre in December. It’s Dyson’s fourth retail space in North America, as well as one of only 19 showrooms globally.
The highly experiential 1,720 square foot Yorkdale retail space is designed to encourage people to pick up, test, and understand Dyson’s technology. Interactive demonstrations bring to life the science at the core of Dyson machines, with ‘Dyson Experts’ on-hand to explain machines and provide recommendations that will best suit customers’ lifestyles.
Woolrich
Woolrich: America’s oldest outdoor clothing company entered the Canadian retail scene with its first store at Toronto’s Yorkdale Shopping Centre. The company’s president says he expects to open at least three stores in Canada by the year 2019, targeting Montreal in 2018 and Vancouver in 2019 for standalone Woolrich store locations.
The Yorkdale store occupies a 2,875 square foot retail space in Yorkdale’s Nordstrom Wing, between Warby Parker and Mendocino. Woolrich’s facade features the trademark red-and-black ‘Woolrich Buffalo Check™ similar to its Tokyo flagship, as well as a video screen above the storefront.
Located at 93 Bloor Street West, the new 2,150 square foot MCM flagship’s interiors feature trademark gold accent fixtures and bright lighting, housing the country’s most extensive collection of MCM fashions, including accessories, leather goods, ready-to-wear and even footwear. MCM says that the Bloor Street store is at its ‘Diamond Level’, which means it carries a full assortment with a focus on its highest quality product offerings.
The company intends on opening at least two more stores — one in Vancouver, as well as a second store in Toronto. MCM’s second targeted Toronto location is Yorkdale Shopping Centre, it says.
APM Monaco
APM Monaco: Monaco-based jeweller APM Monaco opened its first Canadian boutique in Toronto in the fall, with more expected to follow. The 1,700 square foot Toronto store is located at 89 Bloor Street West, across from Harry Rosen and Holt Renfrew Men.
APM Monaco’s store design is inspired “by the Monaco lifestyle” with a signature navy and white colour combination. APM Monaco was founded in 1982 by Ariane Prette as a jewellery brand specializing in creating traditional gold, diamond and precious stone pieces for other jewellers. It has over 160 stores worldwide, and it’s growing quickly — a rapid US store expansion is currently in the works and sources confirm that Vancouver is a target for at least one APM Monaco store location.
SEE Eyewear (PHOTO: CRAIG PATTERSON)
SEE Eyewear: In November, edgy and popular SEE Eyewear officially launched its Canadian expansion with its first standalone store, located in Toronto on Cumberland Street. SEE has set its sights on potentially more Canadian boutiques, as it carefully expands its operations by opening locations where it sees synergies.
SEE, which stands for ‘Selected Eyewear Elements’, was founded in 1997 by optical pioneer Richard Golden, with an aim to provide consumers with affordably priced, fashion-forward eyewear. The company’s prices encourage shoppers to create a ‘wardrobe’ of glasses, with a wide variety of styles available. In the Toronto stores, SEE’s collection ranges from $199 to $599 for eyeglasses and include single vision plastic or polycarbonate lenses, and all sunglasses are priced at a reasonable $149 per pair.
Targeted Canadian cities for SEE include Montreal and Vancouver, which could both see more than one location open, depending on if the right space can be acquired. Other cities could follow as the brand gains traction among Canadian consumers.
CEO Vincent Wauters explained that Hunter is seeking out store locations in a selection of the world’s most cosmopolitan cities, where locals and tourists can converge to experience the Hunter brand in its entirety. Having a retail store allows Hunter to showcase its brand in a way that isn’t possible in a multi-brand retailer.
Given the rainy climate on Canada’s West Coast, Vancouver could eventually see a Hunter Boots flagship store, explained Mr. Wauters.
Burton Snowboards: Burton Snowboards opened its first Canadian store in the fall at 98 Ossington Avenue in Toronto, in an innovative 1,400 square foot retail space. More are expected to follow.
Jake Burton founded Burton Snowboards out of his Vermont barn in 1977, dedicating his life to snowboarding. He’s been instrumental in growing snowboarding from a backyard hobby to a global world-class sport.
Loro Piana (HOLT RENFREW BLOOR STREET, PHOTO: CRAIG PATTERSON)
Loro Piana: Italian luxury brand Loro Piana has launched a retail expansion into Canada in the fall of 2017, and now operates four concessions at Holt Renfrew. Toronto’s Yorkdale Shopping Centre was the first Holt Renfrew location for a Loro Piana boutique, followed by shop-in-store boutiques in Vancouver, Toronto (50 Bloor Street West) as well as at Holt Renfrew in downtown Calgary.
The Holt Renfrew concessions carry a range of Loro Piana women’s ready-to-wear and accessories, in attractive branded environments.
While there are no immediate plans for standalone Loro Piana boutiques in Canada, sources confirm that the brand has many Canadian clients who buy Loro Piana internationally — Loro Piana has boutiques in many major US cities as well as globally.
The first Canadian store opened in LaSalle, Quebec followed by one in Montreal and then another in Pointe-Claire.
Optical Center has opticians and optometrists as well as audiologists. It sells eye frames, lenses and contact lenses online. About 12 years ago the company began to offer audiology services.
Montreal-based Construction Vergo built all three stores. “It’s our first stores in North America and we wanted to share this adventure with someone who truly understands our concept store. Working with them was one of our best decisions.”
Mr. and Mrs. Italy (PHOTO: CRAIG PATTERSON)
Mr. and Mrs. Italy: Pricey Italian luxury brand Mr. and Mrs. Italy opened its first Canadian store at Toronto’s Yorkdale Shopping Centre in December of this year. Toronto joins a handful of cities globally to boast having a Mr. and Mrs. Italy store location.
Mr. and Mrs. Italy was founded in 2007 in Milan and is known particularly for its parkas lined with fur detailing. Prices aren’t cheap — parkas are generally priced between about $2,000 and $6,000 each, with some approaching $10,000. The brand also features men’s and women’s ready-to-wear clothing and accessories, including collections of unique and expensive footwear that often features fur accents.
According to its website, there are only eight standalone Mr. and Mrs. Italy stores in the world, in seven cities. There’s one store location in Milan — its flagship, as well as locations in New York City, Bal Harbour Florida (Bal Harbour Shops), Paris, Shanghai, Beijing, and Hong Kong, which has two stores.
Have we missed any? It’s quite possible — feel free to comment below, or email Retail Insider’s Editor-in-Chief, Craig Patterson, at: craig@retail-insider.com. It remains to be seen if 2018 is as busy as 2017 as per above, and we’re already compiling a list and will be reporting on new store openings throughout the year.
Luxury brands have always been associated with status, quality and their uniqueness. However, changes in consumer behaviour and influence of the western societies have altered the definition of luxury to a great extent. ‘New luxury’ is synonymous to aspirations and experience.
Marketers realize that designing a luxury experience is a completely different proposition, counterintuitive to the managerial principles of mass marketing.
So where traditional management principles fail to flatter, how do luxury brands market to their consumers?
Strategies to market luxury brands
1. Sensory Branding: British Airways is encashing big on a recent study on sensory sciences by Oxford about how sound influences the taste of food. Based on the findings of this study, they launched a list of 13 in-flight tracks to enhance the taste of the meals served during the flight, providing a truly luxurious experience.
Soundwich in Portugal is another fine example of sensory branding. They deliver gourmet sandwiches packed in metal boxes that play music chosen by the chef when opened.
2. Storytelling: Rolex has completely nailed the art of storytelling. Each masterpiece on their website is associated with a celebrity and the reason why they own it. The brand establishes a clear connect between the owner and the product; at the same time endorsing it as one for the elite.
Brands like Chanel have often been quoted as perfect examples of storytelling too. The brand walks its visitors through ‘Inside Chanel’, where different artistic directors share their vision about the brand.
3. Advocating Beliefs: More than brand values, luxury marketers must spin their strategies to advocate beliefs through their marketing efforts. Consider the example of Ferrari. The brand believes in high-performance and advocates the same by investing in Formula 1 events.
Similarly, Louis Vuitton demonstrated its belief in ‘practicality’ by starting to produce only square-bottomed suitcases that are easy to stack. They also completely did away with the round-shaped bags.
4. Exclusivity: There is nothing better than the ‘just-for-me’ feeling that a consumer can get from a brand. Most luxury brands believe in giving the consumer just what he desires, irrespective of how much it adds to the price tag.
Le Labo perfumes, for example, are crafted for an unmatched, personalized experience. No two Le Labo perfumes are the same as each perfume is hand-blended according to the specifications placed by the consumer.
Talking of exclusivity, let’s not miss out on the Absolut Vodka. The brand has done a great job of designing four million unique bottles that are an absolute delight to own.
5. Customer Taste over need: Luxury marketing is different from regular marketing in the sense that you don’t pander to customer’s needs. The product or the marketing strategy are not made to fill any void that may exist due to individuals needing a certain product, but are focussed on high-brow taste, indulgence or affluence.
Your brand does not have to stand on a pedestal where everybody likes it. It only needs to be conditioned to suit very specific tastes. Sell excitement, not predictability.
Conclusion
Unlike a rational consumer, luxury consumers are tremendously impacted and motivated by the feeling of self-worth. They take pride in ‘owning’ a brand and associating it with self-identity and social comparison.
Of course, this is one piece of a much bigger puzzle. For every brand that requires an extra push, there needs to be an analytical report or metric that ensures the success of promoting the brand in this manner. But for all the marketing strategies, such as search engine optimization, press release distribution, social media marketing, business are pushing to get their product onto the next level, that feeling of exclusivity is a lot to do with how comfortable a customer feels with a brand.
Though quality and social status are still considered to be major buying motivations for the luxury consumer, experience too has become a vital factor for purchase. The strategies and examples given above show how some famous brands differentiate on the basis of experience, to market to the high-end consumer.
Have you seen another luxury marketing strategy that is worth mentioning here? Would love to know more about it too – Feel free to comment below.
Filipino fast food giant Jollibee has entered the Canadian market with its first two locations in Winnipeg and it plans further Canadian expansion including into the Greater Toronto Area beginning in the first half of 2018.
Dianne Yorro
Dianne Yorro, brand manager for Jollibee North America, says the company definitely intends to expand further into Canada.
“We’re going to open our first store in the Greater Toronto Area in the first half of next year – Scarborough and then Mississauga,” she says. “And then there are plans to open in Edmonton. We’re looking at 2019 to go to Edmonton.”
“We just opened our stores in Canada and we’ve seen very good response from those two stores in Winnipeg. And there are definitely plans to expand further in other areas of Canada. Vancouver is also an area we’re looking at but there are no definite plans yet . . . Canada is one of our key areas for expansion.”
GRAND OPENING OF FIRST CANADIAN RESTAURANT IN WINNIPEG
GRAND OPENING OF FIRST CANADIAN JOLLIBEE RESTAURANT IN WINNIPEG
Yorro says Jollibee has about 1,200 stores around the world with 37 in the United States and two in Canada.
The first Winnipeg store opened in December a year ago with the second store opening at the end of November, 2017.
Jollibee began when Tony Tan and his family opened a Magnolia ice cream parlor 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.
Today, it is the largest fast food chain in the Philippines and it has embarked on an aggressive international expansion plan in the U.S., Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei.
Its menu includes favourites Chickenjoy, Yumburger, Champ burger and Jollibee Spaghetti.
“It’s the largest Asian restaurant company in the world in terms of market capitalization,” says Yorro.
She says Filipinos who have moved to other countries eagerly anticipate the opening of Jollibee locations in different parts of the world because “it gives them a taste of home.”
“It gives them a chance to experience the Philippines again.”
**Photos provided by Jollibee Canada (via Facebook profile)
