Jimmy Choo to Open 2nd Freestanding Toronto Store

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March 16, 2017

UK-based luxury footwear and accessory brand Jimmy Choo will open its second freestanding Toronto location next year. The store will join a number of top brands on Yorkville Avenue, which is rapidly becoming one of Canada’s top luxury retail destinations.

Jimmy Choo’s first Toronto store, which is also Canada’s only freestanding location, opened in August of 2014 at the luxury-heavy Yorkdale Shopping Centre. The 2,250 one-level store is in the heart of the mall’s Holt Renfrew-anchored ‘luxury wing’, between Tiffany & Co. and Moncler.

In late 2018, Jimmy Choo’s second Toronto store will open at 102 Yorkville Avenue, in a newly constructed commercial building by First Capital Realty. The two-level Jimmy Choo will be about 2,400 square feet in size, and will be next to a new 8,700 square foot Chanel flagship that will open in a few months.

Stan Vyriotes and David Wedemire of DWSV Remax Ultimate Realty Inc. acted on behalf of retailer Jimmy Choo in the deal with landlord First Capital Realty.

First Capital Realty owns several properties along Yorkville Avenue, and it plans to redevelop some of them for new retail spaces over the next several years. Demolition of the buildings at 102-108 Yorkville Avenue is expected to commence this spring. These will be replaced with a commercial building that will include three street-facing retail units, and Jimmy Choo will occupy the eastern-most space of the three, closest to Chanel.

First Capital Realty owns other commercial buildings on the street and, most recently, it acquired a 50% stake in 101 Yorkville Avenue, which it will eventually demolish to construct a 35,000 square foot building for multiple luxury retail tenants. First Capital Realty continues to acquire sites in the area, complementing its Yorkville Village shopping centre complex, formerly called Hazelton Lanes. The landlord is leasing retail space both on urban storefronts as well as within the enclosed shopping centre, which is seeing ongoing renovations costing well in excess of $100 million.

chanel will move into the former teatro verde retail space at 100 Yorkville avenue this year. the building’s facade is from the former mount SINAI hospital that once occupied the site.

102-108 Yorkville avenue. Jimmy choo will occupy the two level corner space.

Yorkville Avenue is becoming a luxury shopping destination, with a number of brands opening stores in the area. Luxury footwear and accessories brand Christian Louboutin opened its two-level Canadian flagship at 99 Yorkville Avenue over the summer, in a building directly across the street from the new Chanel and Jimmy Choo. Chanel will open its flagship at 100 Yorkville Avenue sometime this summer, in a deal that was also coordinated by Mr. Vyriotes and Mr. Wedermire. Luxury streetwear brand Off-White ‘softly opened’ its 83 Yorkville location in December of 2016, though the store has yet to officially announce its opening. Luxury timepiece brand Richard Mille (a boutique licensed by Louis-Black) is expected to open at the base of the Hazelton Hotel sometime next week, joining prestigious names such as Kiton (at V Hazelton) and Carrera y Carrera, located nearby.

Jimmy Choo, which was co-founded by designers Tamara Mellon and Jimmy Choo in 1996, has stores globally, including 33 in the United States. In Canada, the brand can also be found in selected retailers such as Holt Renfrew, Saks Fifth Avenue and Nordstrom.

Deciem Opens 1st Mall-Based Store

By

Craig Patterson

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March 16, 2017

Toronto-based Deciem, the self-proclaimed ‘Abnormal Beauty Company’, has opened its first shopping mall-based store at Square One in Mississauga. The company’s four other Canadian boutiques, all in Toronto, are urban street-front locations.

Deciem’s first store opened in July of 2016 at 881 Queen Street West, in the heart of the city’s hip ‘West Queen West’ area. Street-front locations followed when Deciem opened stores in Cabbagetown (242 Carlton Street), Kensington Market (285-A Augusta Avenue) and in Yorkville, at 1240 Bay Street, fronting onto Bellair Street.

Since last summer Deciem has also opened five international stores, including two stores in Australia (Sydney and Melbourne), as well as locations in Seoul, South Korea, Mexico City, and in London, UK, at the Old Spitafields Market.

Last week, Deciem opened at Mississauga’s Square One, in a high-traffic area between the mall’s Hudson’s Bay and Walmart stores as per the floor plan below. Climate-controlled shopping centres are proven traffic generators, and Square One is no exception. The busy mall sees about 24 million annual visitors, according to Retail Council of Canada’s most recent shopping centre study. Those numbers translate into strong sales for Square One, which boasts productivity in excess of $1,000 per square foot annually.

Stan Vyriotes and David Wedermire of DWSV Remax Ultimate Realty Inc. are representing Deciem in its Canadian expansion negotiations, as well as selected international markets.

A number of other brands that typically locate on urban street fronts are choosing space within shopping centres. Vancouver-based custom suit retailer Indochino, which began its brick-and-mortar expansion with street-front stores, opened its first mall store (also at Square One) in the summer of 2016. In December of 2016, eyewear retailer Warby Parker deviated from its typically street-front real estate strategy when it opened at Toronto’s Yorkdale Shopping Centre, while Vancouver-based Arc’teryx also opened its first mall store at Yorkdale last fall. Sources confirm that Australian skin care brand Aesop is in negotiations for its first Canadian shopping centre store — its current Canadian locations are all on high streets. Luxury brands, as well, are increasingly expanding into Canadian malls, particularly in the Greater Toronto area.

Deciem was founded by entrepreneur Brandon Truaxe in 2013, and its products are carried at more than 20,000 stores in 18 countries. The United Kingdom is currently Deciem’s largest market (in the summer of 2016, only about 3% of its sales were in Canada), though that will increase as it opens more stores. Deciem features nine beauty brands under its corporate umbrella, ranging in price-point and focus. In an interview last summer, Mr. Truaxe explained that he’s looking to expand the brand “opportunistically”, and that part of the company’s strategy is to gain brand awareness from establishing several store locations in each city, before moving into new markets. He explained that storefronts also act as ‘advertising’ for the brand, as well as providing a comfortable environment for consumers to become educated on its products.

Old Navy to Launch 8 Canadian Stores in 2017

By

Craig Patterson

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March 16, 2017

image-asset - 2021-03-04T223329.925 — Photo: Old Navy

Value-priced Gap-owned fashion retailer Old Navy is expanding into Canada in a big way this year, with store openings to continue over the next several years. The retailer currently operates 78 stores in Canada, and there are plans for a further eight this year alone. Sources say that by the year 2020, Old Navy hopes to operate at least 100 stores in this country, if not more.

It’s an impressive and ambitious goal, at a time when a number of retailers have been closing stores and in some cases, exiting Canada entirely. Old Navy’s wide assortment of value-priced, casual clothing for men, women and children, are apparently a hit. “Business is booming,” says one source at Old Navy, speaking to the company’s plans for an unprecedented Canadian store expansion. Old Navy’s success may by further evidence that Canada’s retail is polarizing — while a number of mid-market retailers are struggling and in some instances shuttering, higher-end and value-priced retailers continue to see success.

In May of this year, Old Navy will open two stores in Western Canada — at Calgary’s CrossIron Mills, as well as at the new Outlet Collection Winnipeg. CrossIron Mills is classified as a ‘hybrid outlet centre’ (mixing full-price and outlet stores), while the Winnipeg centre, scheduled to open on May 3 of the year, will be Western Canada’s second American-style designer outlet mall.

A source at Old Navy confirms that a further six stores are expected to open in Canada over the next nine months or so. In October of this year, Old Navy will open its first store in Sherbrooke, Quebec, at Carrefour de l’Estrie. Other markets set to get new Old Navy stores include the Montreal region (three stores: CF Galeries d’Anjou, Les Avenues Vaudreuil and Carrefour Angrignon), Toronto (Toronto Premium Outlets), as well as a location in suburban Edmonton.

As Canada continues to embrace Old Navy stores, a source says that the company’s president Sonia Syngal has set a goal of opening 100 locations by the year 2020. If opportunities present, the company could actually end up opening more, according to the source. As of now, Old Navy has 78 stores across Canada.

Old Navy’s ambitious expansion speaks to a level of optimism, and also may provide evidence that there’s a continued polarization in the Canadian retail industry. Value-priced brands such as Zara, H&M, Forever 21, Uniqlo and others continue to expand, while off-price retailers such as Winners, Marshalls and Saks OFF 5TH also continue to open stores in an aggressive fashion. At the same time, luxury brands are opening mono-brand stores in Canada’s largest cities, as the upper-end of the Canadian population continues to see exceptional income growth. Mid-market retailers — specifically those that fail to establish a value proposition — continue to close as competition increases for a limited piece of Canada’s retail pie.

Saks Flagship Wins International Design Award [Video/Photos]

By

Craig Patterson

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March 14, 2017

Saks Fifth Avenue’s CF Toronto Eaton Centre flagship was a winner at this year’s EuroShop RetailDesign Awards, held last week in Düsseldorf, Germany. The Toronto store opened in February of 2016 within the Queen Street Hudson’s Bay building, and was designed by Cincinnati-based FRCH Design Worldwide, in collaboration with Saks Fifth Avenue’s internal design and planning teams.

Saks was one of three winners that were chosen over 80 submissions from 27 countries. According to EuroShop, the winners excelled in appealing “to a specific target group,” with “a clear message about the product range, a consistent store concept and a mix of architecture, materials, lighting, colours and visual merchandising that effectively conveys the establishment’s story to the customer.” The other two winners included Primark in Madrid, as well as Rose Biketown in Bocholt, Germany.

EuroShop described Toronto’s Saks flagship as combining “exclusive objects of art with natural materials to create an impressive overall picture,” describing the installations and hand-crafted materials as being “inspired by Toronto’s natural environment”. EuroShop went on to describe how the store’s diverse materials, including warm/cold as well as matte and polished, were juxtaposed to give each department an individual look that is matched to the given products on display.

(Video below)

Saks occupies portions of the ground floor, second level, and third floor of the massive Hudson’s Bay building, which was once the flagship location for Robert Simpson Company. About 25,000 square feet on the store’s concourse level houses the beautiful GH+A designed Saks Food Hall, which is operated by Toronto-based Pusateri’s Fine Foods.

According to RCH, the store features three “design stories” — the ripple effect of the rain, the rough texture of the surrounding forest, and the anticipation of movement during a storm. Local and international artists were commissioned to bring the space to life.

The ground floor, featuring a beauty hall, jewellery, leather goods and accessories, includes an atrium with a dramatic OLED sculpture that was handcrafted by lighting company, Blackbody. Called “iRain”, the installation is meant to evoke the experience of a light spring rain shower, encased in an architecturally enhanced ‘totem’ column that is adorned with textured and mirror-finished bronze panels and encased in vertical framing.

Walls on the ground floor feature ‘ripple effects’, as viewed between luxury boutiques for brands such as Dior, Saint Laurent, Valentino, Chloé, Céline, and Prada.

The store’s second level features a 25,000 square foot men’s department as well as an 8,500 square foot women’s shoe section. Custom full-length illuminated vitrines and floor-to-ceiling screens help to delineate the space in the men’s areas, while women’s shoes feature the trademark hanging glass balls characteristic of Saks’ popular 10022-SHOE departments.

Saks’ women’s-focused third level was particularly praised by EuroShop, with its “stylised metal trees and wavy pieces of glass in the shape of icicles that call to mind the surrounding forests”. The ‘forest’ inspired installation, utilizing curved handmade metal tree forms (built by UnitFive Design) creates a “secret gate to Eden.” Rippled glass shards are suspended from the ceiling, along with a custom rug that highlights the store’s luxury designer area, featuring some of the world’s priciest fashion designers.

EuroShop also praised Saks’ “open floor plan, which allows light to flood in,” along with “services like personal shopping advice offer customers additional luxury and convenience.

The Saks flagship at CF Toronto Eaton Centre is one of two to have opened in Toronto in February of 2016. A beautiful 143,200 square foot Saks also opened at CF Sherway Gardens, featuring fashions as well as an 18,500 square foot Pusateri’s-operated Saks Food Hall.

Saks is confirmed to be opening at least two more Canadian stores in 2018 — a 115,000 square foot Calgary unit will open early next year, as will a 200,000 square foot downtown Montreal flagship, complete with an 80,000 square foot ‘Quebec-themed- food component. Saks is also expected to announce a Vancouver flagship once details are finalized. It will be interesting to see if these stores will be similar in design to the award-winning Toronto flagship.

Yonge Street Hard Rock Cafe to be Replaced with Flagship Shoppers Drug Mart

By

Craig Patterson

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March 13, 2017

Hard Rock Cafe Toronto (Image: Hard Rock Cafe)

The iconic Hard Rock Cafe at 279 Yonge Street in downtown Toronto has been leased to Shoppers Drug Mart, according to sources. It’s the first time in over 35 years that the retail space has been available for lease.

The 22,000 square foot multi-level retail space has considerable exposure on busy Yonge-Dundas Square, which many consider to be Toronto’s answer to New York City’s Times Square. According to CBRE marketing materials, the site offers exposure to over 60 million potential customers, annually.

Hard Rock’s lease on the 22,000 square foot property expires in June of 2017. The asking rent for the space was $2 million annually — about twice what Hard Rock Cafe was paying, according to a source. The space includes a ground floor of 7,503 square feet, a second floor of 7,126 square feet, and a lower floor of 7,373 square feet. There is also a third floor office space within the building. The site includes a frontage of about 60 feet along Yonge Street, as well as more than 125 feet facing onto Dundas Square, which is animated with various activities throughout the year.

A source says that the landlord wished to lease the space to one large tenant, hence why it chose Shoppers Drug Mart rather than divide the space for multiple smaller tenants. Hard Rock Cafe is said to be looking for a new space in Toronto’s core, which has been met with some challenges.

It’s unclear if Shoppers Drug Mart will occupy the entire three floors of retail space, though given its prominent location, the retailer is likely to do something grand. The company is about to launch a new beauty concept that is expected to be part of the new store announcement. Shoppers Drug Mart also operates several stores in the immediate area, including one across Dundas Square at 10 Dundas Street East, as well as a store at the busy CF Toronto Eaton Centre.

The Yonge-Dundas intersection is the busiest pedestrian area in Canada, and is anchored by North America’s busiest shopping mall — the CF Toronto Eaton Centre, which sees an estimated 50 million annual visitors. New arrivals to the area include a 220,000 square foot Nordstrom flagship, Uniqlo’s first Canadian store, Saks Fifth Avenue’s Canadian flagship, and an expanded H&M flagship that is the chain’s top unit in the country. More announcements will be made for the area, as two major sporting goods brands are set to announce flagships nearby.

Adidas Launching Unique-to-Canada Store Expansion

By

Craig Patterson

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March 13, 2017

German athletic and fashion brand Adidas is launching a uniquely Canadian store expansion that will include new ‘experiential’ locations, renovated and repositioned existing stores, as well as a new focus on hockey-related uniforms and team gear in selected locations. Adidas has partnered with the National Hockey League (NHL) for a period of seven years and beginning with the 2017-18 season, Adidas will become the official outfitter of the NHL’s on-ice uniforms, as well as the official supplier of licensed apparel and headwear.

John Summers, Vice President of ‘direct to consumer’ for Adidas Canada, explained that Adidas has three types of stores in Canada — ‘sport performance’ branded stores, outlets, and fashion stores. The company’s outlet stores have seen tremendous growth over the past several years, prompting the company to further expand and refocus its sport performance-branded stores in Canada’s largest cities, as well as its fashion stores which operate under the Adidas Originals nameplate.

The company’s sport performance-branded stores are located in Toronto (10 Dundas St. East), Vancouver (860 Granville Street, currently focused on running) and in Oshawa ON (at Oshawa Centre, which opened in October of 2016). Mr. Summers explained that the company’s sport performance stores will see a new focus geared towards hockey, with a considerable amount of product catering to both on and off-ice training, coming into stores this summer. Adidas’ Canadian operations will continue to see a considerable focus on hockey as part of its ongoing NHL partnership.

*(ADIDAS’ TORONTO FLAGSHIP, AT THE ICONIC NORTHEAST CORNER OF YONGE AND DUNDAS STREETS. PHOTO: GOOGLE STREET VIEW)*

Adidas will open a new hockey-focused sport performance store in Toronto’s Scarborough Town Centre in a few months, said Mr. Summers, and a new downtown Montreal flagship is also priority for the brand. Adidas is working with brokerage Oberfeld Snowcap on its Canadian store expansion, and new sports stores will ideally be in the 5,000 square foot to 8,000 square foot range, according to Mr. Summers.

Adidas also operate three ‘fashion-focused’ stores dedicated to the Adidas Originals brand, with locations in Toronto (389 Queen Street West), Montreal (1258 Ste-Catherine St. West) and Vancouver (848 Granville Street). All three of these stores will be undergoing renovations this year, creating experiential “neighbourhood” stores that will reflect their demographics and surroundings. The Toronto Queen Street store will be “trend savvy” as per the area’s demographics, while the Vancouver Granville Street store will cater to a similarly ‘hip’ demographic. The Montreal fashion store will see an “elevated execution” to address the high-fashion shopper on Ste-Catherine Street West, Mr. Summers explained. Adidas Originals launches often see long lineups for limited-edition product launches, reflecting strong brand loyalty among a segment of consumers.

These ‘neighbourhood’ stores will also be ‘experiential’, with a mixture of art and music thrown in for good measure. Creating in-store experiences is a trend being seen among stronger retailers in Canada as of late, particularly in light of enhanced competition from new retailers, as well as the expansion of eCommerce.

*(VANCOUVER ADIDAS ORIGINALS STORE. PHOTO: VANCOUVER CITY SHOPPING GUIDE)*

Adidas recently opened a massive 45,000 square foot store in New York City. Mr. Summers explained that none of the Canadian stores will reflect its design, as Adidas’ Canadian sport stores will feature more of a hockey focus, while the new Manhattan Adidas flagship caters to a variety of sports popular in the United States, while also catering to a considerable number of tourists. Canada’s Adidas stores are also considerably smaller — the Yonge and Dundas flagship in Toronto, for example, is 8,240 square feet on one level.

Looking to the future, Mr. Summers explained that Adidas could open more stores in new markets with its new hockey focus. Existing locations, which are particularly sneaker-focused, will also see an expanded assortment of hockey-related apparel and footwear, appropriate for both on the ice, as well as in the gym. There are also opportunities to expand the company’s Adidas Originals and outlet concepts in Canada, as Adidas seeks to be the “best sports brand in the world”, he said.

Saks OFF 5TH Announces 2 More Canadian Stores

By

Craig Patterson

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March 10, 2017

Saks OFF 5TH South Edmonton Common — Saks OFF 5TH (Image: South Edmonton Common)

Hudson’s Bay Company’s off-price retail concept Saks OFF 5TH has announced two more Canadian stores, both set to open in 2018. The retailer plans to operate about 25 Canadian stores by the end of 2018, and it’s well on its way towards that goal.

In 2018, Saks OFF 5TH will open stores in suburban Toronto and Calgary, both within Cadillac Fairview-managed shopping centres. A 27,000 square foot Saks OFF 5TH will open at CF Markville centre in Markham, north of Toronto, and a 26,600 square foot location will open at Calgary’s CF Market Mall next year, as well.

Saks OFF 5TH is aggressively expanding nationally. This week, it opened two stores in suburban Toronto — at Pickering Town Centre, and at Bramalea City Centre. This spring as well, Saks OFF 5TH will open stores in Winnipeg, Edmonton and Quebec City, as discussed in detail in an article last month. When all five are open by this May, Saks OFF 5TH will have opened 14 stores in Canada — an impressive number, considering that its first Canadian stores opened about 12 months ago.

Saks OFF 5TH typically locates its US locations in outlet centres as well as freestanding units, which is a slightly different strategy than what we’re seeing in Canada. Both CF Markville and CF Market Mall are considered to be traditional shopping centres, and Saks OFF 5TH has also announced a number of other stores to open in mainstream malls in this country.

Nordstrom Rack will enter Canada in early 2018 with its first Canadian stores, with plans to operate between 10 and 15 Canadian stores. TJX-owned Winners and Marshalls also continue to open stores in Canada, as the off-price market sees unprecedented competition in this country.

*Top photo via South Edmonton Common.

CF Market Mall Announces Expansion

By

Craig Patterson

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March 9, 2017

Cadillac Fairview and co-owner Ivanhoé Cambridge have announced new tenants to open at Calgary’s CF Market Mall. Several will located in space left vacant by Target, which exited Canada in 2015.

New tenants will include a massive Zara, Sporting Life and Saks OFF 5TH, as well as replacement locations for HomeSense and Sport Chek. The new Sport Chek will become Calgary’s first flagship for the brand.

Zara will open one of its largest Canadian stores at CF Market Mall this fall, spanning 30,000 square feet over two levels. It will be the second Zara store in Calgary, and will be considerably larger than the 14,300 square foot Zara at CF Chinook Centre.

Sporting Life will open a 40,000 square foot store in the mall this fall, and it will be the second location for the retailer in Calgary. Sporting Life opened its first store in the city in October of 2016 at Southcentre Mall, and sources say that it is doing very well.

Calgary-based Sport Chek will open a new 60,000 square foot flagship, which will be the first of its kind in the city. The new store will replace an existing 33,300 square foot location in the mall. Last week, Sport Chek opened its first women’s only store at Calgary’s CF Chinook Centre, as the retailer continues to expand and innovate with its Canadian operations.

TJX-owned HomeSense will move into part of the mall’s former target space, to be replaced by a 26,600 square foot Saks OFF 5TH, which will open in 2018.

An additional 83 underground parking stalls will also be added to the centre.

CF Market Mall is one of Canada’s most productive shopping centres, according to a recent Retail Council of Canada shopping centre study. The mall is approaching sales of $1,000 per square foot annually, making it the region’s second-most productive mall, after CF Chinook Centre.

Outlet Collection Winnipeg Announces Opening Date and List of Tenants

By

Craig Patterson

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March 9, 2017

Ivanhoé Cambridge has officially announced the opening date for its new 100-store Outlet Collection Winnipeg, which will be Canada’s second pure outlet centre West of Ontario. Hiring is ongoing for various retailers, and there will be a job fair this month to fill various positions.

The enclosed 400,000 square foot centre opens to the public on the morning of Wednesday, May 3, and Ivanhoé Cambridge has confirmed the first group of 45 retailers. About half of the new stores will be new to the Manitoba market. Outlet Collection Winnipeg will also feature six anchor tenants, including Saks OFF 5TH*, Old Navy, F21 Red by Forever 21*, DSW Designer Shoe Warehouse* and Winners. Other retailers will include:

Aldo
Ardène
Banana Republic Factory Store*
Bentley*
Bluenotes
Boathouse
Bombay
Bowring
Browns Outlet*
Call it Spring Outlet*
Calvin Klein Outlet*
Chatters Salon & Beauty Supply
David’s Tea
Dynamite/Garage
Ecko Unlimited
Famous Footwear Outlet
Gap Factory Store*
GNC
Guess Outlet*
La Vie en Rose
Levi’s Outlet*
Lids
Lindt Outlet
Lucky Brand Jeans Outlet*
Michael Hill*
Mountain Warehouse*
Naturalizer Outlet
Perfumes 4 U*
Quarks Outlet*
Roots*
Samsonite Outlet*
Skechers*
SoftMoc Shoe Rack*
Suzy Shier
The Body Shop*
Think Kitchen*
Tommy Hilfiger Outlet
Under Armour*
Urban Kids
West 49

In the list above, first-to-market retailers have an asterisk (*) beside their name. Winners will open in September of 2017.

Western Canada’s first pure outlet centre is the McArthurGlen Designer Outlet Vancouver, which opened in the summer of 2015. Ivanhoé Cambridge also operates two hybrid outlet centres (mix of full-price and outlet stores) in Western Canada — CrossIron Mills outside of Calgary, and Tsawwassen Mills outside of Vancouver.

<br />

The Winnipeg project also created a lot of jobs. Overall, more than 1,300 full- and part-time retail jobs and 400 construction related jobs will have been created by the project.

“Job creation is the backbone of every economy and we are proud that the significant investment we and our partners have made in Winnipeg has translated into thousands of construction and retail employment opportunities for its residents,” commented Blair Forster, President, Forster Projects.

*Images via Ivanhoé Cambridge

Canada’s Growing Affluence Supports Expanding Luxury Retail

By

Craig Patterson

-

March 8, 2017

Property consultancy Knight Frank’s ‘The Wealth Report 2017’ provides evidence of growing affluence in Canada, which may support the notion that there’s more room for luxury retail in Canada. This country is outpacing the United States in terms of overall wealth growth among those with net assets surpassing US $30 million, as it has been for a number of years.

The report addresses overall growth among various groups, including ‘High Net Worth Individuals’ (HNWI) with net assets in excess of US $1 million, as well as ‘Ultra High Net Worth Individuals’ (UHNWI) with net assets exceeding US $30 million.

Canada is home to a rapidly increasing population of affluent residents, with growth numbers surpassing that of the United States. A total of 335,800 Canadian residents had net assets surpassing US $1 million in 2016, which is expected to grow to 503,700 by the year 2026. Those in the UHNWI category (net assets surpassing US $30 million) stood at 4,110 in 2016, with a forecasted 50% increase to 6,170 UHNWI’s by 2026. In 2016, Canada had 483 individuals with net assets surpassing US $100 million, forecasted to grow to 725 by 2026. Last year as well, Canada had 40 billionaires (in US dollars), which is forecasted to grow to 60 billionaires by 2026.

Between 2015 and 2016, alone, Canada saw a 15% increase in UHNWI — a significant number, which may partly explain the rapid increase of luxury brands entering and opening stores in Canada. Canada also saw a 50% increase in UHNWI between 2006 and 2016, which may be explained both by asset growth as well as immigration.

The United States, for comparison, saw 30% growth in UHNWI’s between 2006 and 2016, with 5% of that between 2015 and 2016. The Knight Frank study estimates that the United States will see a 30% increase in UHNWI between 2016 and 2026 — trailing Canada in terms of percentages.

The same study examines the affluence of Toronto and Vancouver, and may provide insight into why both cities are leaders for Canadian luxury retail expansion. Toronto is particularly wealthy, rivalling and in some instances surpassing that of some of the world’s largest cities. In 2016, Toronto had an estimated 109,300 individuals with net assets surpassing US $1 million, 3,910 individuals with net assets surpassing US $10 million, and an estimated 1,500 UHNWI’s with net assets surpassing US $30 million. Toronto is forecasted to have 2,250 UHNWI by the year 2026 — a 50% increase. Between 2015 and 2016, Toronto saw a 15% increase in UHNWI’s.

*(RENDERING OF VANCOUVER’S EXPANDED TIFFANY & CO. FLAGSHIP AT BURRARD AND ALBERNI STREETS. WHEN COMPLETED THIS SPRING, IT WILL BE THE COMPANY’S LARGEST CANADIAN STORE)*

Vancouver boasts a considerable number of wealthy individuals as well. Knight Frank estimates that there are 31,100 individuals with net assets surpassing US $1 million, about 1,110 individuals with assets surpassing US $10 million, and 430 UHNWI’s with net assets surpassing US $30 million. In 2026, the study estimates Vancouver will have 731 UHNWI’s — a 70% increase over 2016. Vancouver also saw a remarkable 23% increase in UHNWI’s between 2015 and 2016, though it’s unclear what effect a recent 15% residential foreign buyer tax and ‘Empty Home Tax‘ may have on future numbers.

Interestingly, Toronto appears to have more ultra-wealthy people than Paris, France. Knight Frank estimates there are 110,900 individuals with net assets of over US $1 million, with 1,320 of those being in the US $30 million+ UHNWI category. The study also forecasts a 10% reduction in UHNWI’s between 2016 and 2026, after seeing a 12% reduction between 2015 and 2016. Paris is likely to always have luxury retail, however, given that it is the headquarters for a considerable number of luxury brands, not to mention one of the world’s top shopping destinations for international tourists.

*(ROLEX RECENTLY OPENED ITS LARGEST NORTH AMERICAN STORE ON ALBERNI STREET IN VANCOUVER. PHOTO: RITCHIE PO)*

Toronto and Vancouver still trail behind New York City, San Francisco and Los Angeles in terms of wealth, however, according to the study. Both Canadian cities also trail behind much smaller cities in Switzerland — Zurich and Geneva — which both have a surprisingly high number of very wealthy individuals.

Local affluence is only one component of what luxury brands look for when determining where to open stores. Spending patterns, demographics, mobility, incomes, and tourism also play significant roles. As tourism numbers are forecasted to increase in Canada, particularly among high-spending Chinese tourists, Vancouver and Toronto stand to gain. The US Trump administration’s recent border-related entrance denials/detainments could also further enhance Canada’s tourism, as international visitors may see Canada as a friendlier and more accessible destination — and our low dollar only makes us more attractive to high-end shoppers.

In the coming weeks we’ll be touring Canada’s ‘luxury retail nodes’, and we’ll report on each of these in separate articles. We’ll discuss both freestanding luxury brand boutiques, as well as concessions operating within larger host retailers. About 18 months ago we coordinated a study on behalf of a Canadian consultancy, where we ranked Canada’s ‘luxury nodes’ in terms of number of brands with stores. We’ll update and expand on that here on Retail Insider, as there have been a number of new ‘luxury nodes’ added — including CF Toronto Eaton Centre, which now houses Saks Fifth Avenue, Nordstrom, and Links of London as new luxury destinations. Other areas of discussion will include Toronto’s Bloor-Yorkville and Yorkdale Shopping Centre, Vancouver’s Alberni Street ‘Luxury Zone’, Montreal’s Rue de la Montagne/Sherbrooke Street West, and a handful of other streets and malls in major centres.

Retail InsiderCanada's Most-Read Online Retail Industry Publication.

Jimmy Choo to Open 2nd Freestanding Toronto Store

Deciem Opens 1st Mall-Based Store

Old Navy to Launch 8 Canadian Stores in 2017

Saks Flagship Wins International Design Award [Video/Photos]

Yonge Street Hard Rock Cafe to be Replaced with Flagship Shoppers Drug Mart

Adidas Launching Unique-to-Canada Store Expansion

Saks OFF 5TH Announces 2 More Canadian Stores

CF Market Mall Announces Expansion

Outlet Collection Winnipeg Announces Opening Date and List of Tenants

Canada’s Growing Affluence Supports Expanding Luxury Retail

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