For Monica Frangulea, the designer behind the Toronto-based fine jewellery line Musesa, jewellery is much more than an accessory. In her view, it’s a dramatic way of making a statement.
Monica Frangulea
“When you have a simple outfit, the moment you add a statement piece, it totally changes the look,” Frangulea says. “It adds glamour.”
Frangulea is an architect from Romania who made her foray into the jewellery business six years ago, with the launch of Musesa. The brand specializes in bold, unique statement pieces, which incorporate precious and semi-precious gemstones, such as rubies, emeralds, sapphires, diamonds, as well as elements of gold and sterling silver.
“Our pieces are very bold and very big,” Frangulea says. “Even the smaller pieces are very noticeable.”
Image: Musesa
Musesa’s line includes a broad array of necklaces, bracelets and earrings. The items feature colours ranging from neutral blacks, browns and greys to bold shades such as turquoise, red and purple – including some pieces that incorporate all colours of the rainbow. The pieces range in price from $40 to $600.
Given the bold style of Musesa jewellery, Frangulea says it captures attention when her customers wear it, and leaves a lasting impression. “The most important feature in Musesa jewellery is the design – it’s recognizable,” she says.
The name of the jewellery line – Musesa – stems from the word ‘Muse’. That ties in with the broader inspiration for the line, which lies in ancient Greece and other historical civilizations. Having spent much of her life in Europe, including several years in Greece, Frangulea was inspired by the history-rich Mediterranean surroundings in that part of the world.
Although Frangulea often replicates pieces that she has made using different colours and different stones, and each piece is unique. “You will never find exactly the same piece twice,” she says.
Frangulea’s architectural background comes in handy when creating jewellery, she says. When designing large, heavy statement pieces, in particular, she says it’s important to consider the positioning of each stone and the structure of the piece.
“You need to very carefully control the geometry, and the weight of the material, so it doesn’t lose shape,” Frangulea says. “That’s where my architecture background comes into play.”
Image: Musesa
Although the jewellery line was originally targeted towards a slightly older clientele, Frangulea says it has appeal among a broad range of customers.
“I was surprised to get a lot of younger clients,” she says. “My customers are millennials all the way to older generations.”
Musesa also offers e-commerce sales, which lets the jewellery line cater to customers across Canada and abroad. “I have clients all over the world,” Frangulea says.
British luxury heritage brand Belstaff has opened its first freestanding Canadian boutique, at Toronto’s Yorkville Village shopping centre. The 1,100 square foot storefront is operated in partnership with a prominent retail family that has been in business in the area for a generation. Belstaff is 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.
Toronto’s new Belstaff boutique features an expansive collection of fashions, footwear and accessories for men, including an impressive selection of outerwear, denim and sweaters for the fall and winter season (Belstaff Kids will launch in the spring of 2018, with more to come). Clothing ranges from the refined to rugged — Belstaff is known to be popular amongst motorcycle enthusiasts, though it’s also perfectly suitable for urban endeavours, be it daywear or a night on the town. The brand was founded in Longton, Stoke-on-Trent, Staffordshire in 1924, and it was the first company to use wax cotton in the manufacturing of waterproof apparel for motorcycling. Belstaff operates several boutiques globally and in the United States, Belstaff operates a freestanding store at 814 Madison Avenue in New York City.
Fixtures in the new Toronto Belstaff store were imported from Europe, and stay true to the brand. The store’s design is simple yet impactful — light grey walls contrast with black accents, both inside and out. The store’s facade features an elegant rounded corner that provides optimum visibility. Its location in Yorkville Village is also strategic — fitness concept SoulCycle has an entrance nearby, as does Galerie De Bellefeuille, Jean-Paul Fortin shoes, TNT Concept and North America’s first location for upscale Italian brand Eleventy. At the heart of it all, and directly across from Belstaff, there is the Chase Group’s latest restaurant concept, Palm Lane, which has a seating area that faces directly towards Belstaff.
Belstaff opened in partnership with the Zappacosta family, which has been in the retail business for more than a quarter of a century. It’s very much a family affair — brother and sister team Philip and Leandra Zappacosta act as image and lifestyle consultants, and also run the luxury menswear boutique ‘philip’ that opened at Yorkville Village in the summer of 2016. This fall, as well, the Zappacostas re-opened their upscale multi-brand retail concept ‘Nanni’ next door to Belstaff at Yorkville Village, with a connecting entrance between the two stores. Nanni opened its first store in the former Hazelton Lanes in 1991, and the Zappacostas have had a retail presence at the centre since then.
Belstaff is one of several highly successful brands once carried at the eponymous philip store, and its exceptional sales spearheaded the partnership to open Belstaff’s first freestanding Canadian store. Other brands have also approached the Zappacostas about opening stores in Toronto, and they’re in talks to potentially open other mono-brand luxury boutiques nearby. The family decidedly maintains their retail operations in Toronto’s Yorkville area, which they consider to be ground-zero for luxury retailing in Canada.
Belstaff’s CEO, Gavin Haig, explained how the timing was right to open a standalone Belstaff boutique in Canada, given the brand’s strong year-over-year growth at various wholesale partners. He praised the Zappacosta family as being entrepreneurial, successful “serious professionals”, and how a relationship was struck from their successful wholesale account that led to the Toronto Belstaff boutique partnership.
Mr. Haig said that he expects at least two more Belstaff boutiques in Canada, and that Vancouver is a target because it boasts a strong Asian population that responds to heritage brands.
On Thursday, October 26, Belstaff held a well-attended opening party in partnership with the Zappacosta family at the new Yorkville Village store. For those that missed it, more Belstaff Toronto events will follow.
Mackage (YORKDALE STORE IN OCTOBER 2016. CREDIT: CRAIG PATTERSON)
American Firm Acquires Canada’s Mackage:La Press reports that Montreal-based fashion brand Mackage, which also owns the Soia & Kyo brand, has been sold to American and Korean interests. La Presse says that Mackage wasn’t willing to grant an interview about the acquisition, so details are limited.
Mackage’s founders continue to run the business with a headquarters remaining in Montreal and APP’s majority shareholders include a numbered company owned by InterLuxe, SK Holdings (Korea) and PP Americas Plans (a fund owned by the Montreal Transit Corporation pension plans). The two largest minority shareholders are Elfaco Holdings (Elfassy family) and Elisa Dahan (co-founder of Mackage).
Sephora Opens 2nd Canadian TIP Store at West Edmonton Mall: LVMH-owned beauty retailer Sephora has opened its second Canadian ‘TIP’ concept store at West Edmonton Mall. TIP stands for “Teach, Inspire, Play” — Sephora describes the concept as being “where digital technology and services fuse, culminating in a truly revolutionary shopping experience for modern day beauty enthusiasts of all ages to beauty together”.
The West Edmonton mall Sephora also expanded from 5,860 square feet to 9,960 square feet, making it one of the largest Sephora stores in Canada.
Retail Council of Canada’s Shopping Centre Study will be released next month. For companies seeking exposure to retailers and landlords, this is a tremendous advertising opportunity — last year’s study saw over a million impressions, and was widely distributed while also extensively referenced in the press. For more information, email Mary Markou at: mmarkou@retailcouncil.org.
As well, Retail Council of Canada is hosting an interesting event on November 21 at Google’s downtown Toronto headquarters, discussing the future of brick-and-mortar retail in Canada, including the new 2017 study. Click here for more information.
David’s Tea: Two of Five Top Leaders Depart: According to a report in La Presse, two top executives at Montreal-based David’s Tea have recently left. Christine Bullen, Vice President of Operations and President of David’s Tea USA, and Edmund Noonan, Chief Property Officer, “have ceased to be employed by the company” according to La Presse.
On June 7 of this year, the Chief Financial Officer (CFO) Luis Borgen quit his job with the company.
Walmart Canada Launches Original Branded Content Digital Series:Walmart Canada is launching a scripted dramedy series this fall called Upstairs Amy, in partnership with Interac and APEX PR. The branded content series, available on Youtube, is described as “a modern comedy about millennial parents and the gap between who they are and who they want to be. Amy Zhang’s life is upended when the condo she shares with her husband Dean and their toddler is flooded, so they move several floors up in the same building – and meet their glamorous-but-mysterious new neighbour, Kaavya, who has all the confidence and ‘spark’ Amy wants for herself. Amy enlists her best friend Veronica to help her sleuth out Kaavya’s story, and chronicles it all in YouTube videos about their adventures – interspersed with her comedic takes on love, career, and parenting. In this irreverent, quirky series, Amy uncovers the mystery of Kaavya – and finds out if she can become the true ‘Upstairs Amy’.”
Heather Loosemore, Senior Director, Marketing Communications, Walmart Canada said, “The story of Upstairs Amy – and the many influencers we have engaged with for this program – reflects these core values in an authentic and entertaining way.”
The series is being produced by Shaftesbury (the Canadian studio was responsible for the vampire web series Carmilla) in association with Canadian debit card company Interac, and Ruckus Digital is leading development on media and social content for the series. Hamilton Beach is the official small kitchen appliance partner for the series and its products will be featured throughout, with links to Walmart Canada’s website. Real-life digital influencers were curated by APEX PR.
(NYC SHOWROOM. PHOTO: INDOCHINO)
INDOCHINO Announces Seattle Showroom — its largest to date: The world’s largest made to measure apparel company will unveil its downtown Seattle flagship on November 10 at 1801 5th Avenue, spanning 4,371 square feet. It will be INDOCHINO’s largest showroom to date, located just north of Nordstrom and near Amazon‘s global headquarters.
“We have a strong affinity with our neighbors south of the border, with thousands of online customers and hundreds more who travel north to take advantage of our Canadian retail locations,” said Drew Green, CEO, INDOCHINO. “We’re looking forward to introducing our experiential approach, innovative product and accessible price point to the next generation of Seattleites.”
Seattle is the eighth INDOCHINO location to open in major North American cities this year as the company continues to expand its innovative experiential retail concept, with the company aiming to open 150 showrooms globally in the next five years.
‘The Wool House’ is expected to see over 300,000 visitors at the Royal Agricultural Winter Fair (November 3-12) and will be curated by the Harris Tweed Authority and will be outfitted in wool products/garments designed and/or produced in Canada. Visitors will also be educated on the benefits of wool, including the positive impact on the environment to supporting local economies, as well as shown the journey of a garment from farm to closet.
DUER launches Kickstarter campaign for Performance Shirts, far exceeds goal: Vancouver-based fashion brand DUER launched a line of Performance Shirts in Kickstarter several days ago, with a goal of raising $50,000. The company reached that goal in less than 12 hours, becoming the 10th most popular projection Kickstarter as well as becoming number one in the fashion category. The campaign currently has over 1,100 backers with funds pledged being in excess of $130,000.
(DUER PERFORMANCE – INSTAGRAM)
The new line offers DUER’s take on the performance-infused streetwear for its bottoms, and brings it to three shirt silhouettes in multiple colours for men and women. Shirts have many of the same features as the company’s pants, including a patented gusset, performance stretch, and moisture wicking.
“We built this company to solve problems,” explains Gary Lenett, DUER’s Founder. “Technical clothing couldn’t be dressed up. Fashionable clothing lacked the performance features and comfort of technical clothing. DUER combines both, and I’m thrilled that we’ve been able to adapt the same formula to solving problems with shirts as we previously did for jeans and other pants.”
Standard Apparel Files for Bankruptcy: According to publication Insolvency Insider, Toronto-based wholesale showroom and apparel distributor Standard Apparel has filed for bankruptcy. The company, which was founded in 2007, is the exclusive Canadian distributors of brands Fred Perry, Filson, Hudson Bay Company Signature Collection, Aigle, Oliver Spencer, and several others. The company also operated standalone Fred Perry and Oliver Spencer fashion retail stores on Queen Street West in Toronto. According to its website, Standard Apparel operates a 20,000 square foot warehouse at 87 Wingold Avenue.
KSV Kofman Inc. is the trustee in bankruptcy, according to filings. Standard Apparel lists $5.3 million in liabilities, including owing about $1.7 million to the Bank of Montreal, and a factum states that the Trustee does not expect the Companies’ assets to be sufficient to fully repay that amount. [Subscribe to Insolvency Insider]
TORONTO'S QUEEN STREET WEST HAS SOME BEAUTIFUL HISTORICAL ARCHITECTURE. PHOTO: CONDO.CA
By Devon Johnson
Cushman & Wakefield has published a study ranking retail areas based on their ‘trend’ factor. The report examined 100 areas across North America, and several Canadian addresses made it on the list.
The study recognizes Millennial’s preferences for urban living, while also recognizing that some retailers are gravitating to trendy high streets to reach them, as opposed to shopping centres and busy commercial streets (such as Robson Street in Vancouver or Bloor Street in Toronto). The Urban Land Institute estimates that about 46% of Millennials would choose an urban setting, compared with 24% for suburban and 30% for rural environments.
In the report, each neighbourhood is assigned a level on a ‘Hip-O-Meter’, which reflects where the neighbourhood is in its development. The study also provides ‘livability’ scores, rates ‘retail flavour’, provides retail lease rate ranges, and provides a summary of demographics that includes population, income, education, percentage of renters, and percentage of Millennials living in the area.
Here’s a discussion of the Canadian component to the study, broken down by city. The study ranked Toronto’s ‘West Queen West’ as being the ‘coolest’ in Canada, with Vancouver’s Main Street/Mount Pleasant ranking second.
Each image below is a screen capture from the Cushman & Wakefield study.
TORONTO, ONTARIO:
Toronto’s ‘West Queen West‘ came out on top in Canada, referencing a report in Vogue naming West Queen West as Number two on its list of the Top 15 Coolest Neighbourhoods in the World. On the stretch between Bathurst Street and Gladstone Avenue lies “Canada’s largest concentration of independent art galleries, an abundance of independent boutiques, a flourishing restaurant and bar scene, and a couple of new hipster, boutique hotels”. The study goes on to quantify asking rents ranging between $30 and $60 per square foot, compared to top rents of about $120 per square foot on Queen Street West between University Avenue and Spadina Avenue.
An astonishing 75.9% of the area’s population is between the ages of 20 and 34, which is higher than almost every North American area studied.
Toronto’s eclectic Kensington Market scored highly, though the study claims that the area has ‘gone mainstream’. Many would debate that this isn’t the case, though a number of chains have recently moved into the area, and redevelopment threatens its outer edges.
Toronto’s Distillery District is up-and-coming, according to the study, ranking it as ‘edgy cool’. The area will become busier with considerable new residential development nearby, as well as improved public transportation in the area.
VANCOUVER, BRITISH COLUMBIA:
The Cushman & Wakefield study ranked Vancouver’s Main Street/Mount Pleasant as being Canada’s second-trendiest area. The report discusses how the area’s shift from working class to arts district began roughly 20 years ago, and that “this transition has been on steroids over the last five years”. Nowhere have the changes been more profound than near the intersections of Main Street and Broadway, says the report.
Asking rents range between $20 to $43 per square foot according to the study, but those rates “are increasing swiftly,” with Main Street as the epicentre of growth.
Vancouver’s popular Gastown, also its historic city centre, has a remarkably high number of Millennials living in the immediate area. New stores continue to open in Gastown, including edgy menswear, womenswear and high-priced furniture stores. Gastown is unique in how its north side is flanked by a busy waterfront port, while immediately to the south is Vancouver’s infamous Downtown Eastside, which is also Canada’s ‘poorest postal code‘.
MONTREAL, QUEBEC:
Montreal’s Plateau is consistently ranked as one of the hippest areas anywhere, which makes it surprising that the study saw it rank below areas in Toronto and Vancouver. Regardless, the area is popular with locals and tourists, and is known for its retail innovation and otherwise exceptional ‘cool factor’.
Montreal’s ‘Mile End‘ is also known for being hip, with the study ranking it as being ‘up and coming’. Watch for retail lease rates to rise as new retailers enter.
Montreal’s Little Italy area is ‘still cool’, according to the study. There’s a risk, however, that it could go mainstream.
OTTAWA, ONTARIO:
Ottawa’s Westboro area is the undisputed king of cool, in a city generally known for being a stuffy government town. Given its high ranking, its worth noting the rate of high home ownership in Westboro, as well as a population where only 21.1% is between the ages of 20 and 34.
Ottawa’s Hintonburg, west of downtown, is ‘still cool’ according to the study, though it risks losing that status as the area matures.
EDMONTON, ALBERTA:
Alberta’s capital city has the provinces ‘coolest’ retail street, according to the Cushman & Wakefield study. Whyte Avenue (82 Avenue) has a variety of stores, restaurants and bars. Renowned fashion and footwear retailer gravitypope began with a single store in the area in the 1990’s, and it continues to operate separate footwear and fashion locations. The area is beginning to see further development that, in the eyes of some, could threaten the historical nature of the area. At least Edmontonians can now boast that their street, and none in Calgary, made Cushman & Wakefield’s top 100 ‘coolest streets’ in 2016.
Dear paper flyer. – Or should I call you leaflet, circular, pamphlet, handout? Paper flyer is fine? Okay. So, you’ve been spreading your word, sharing the good deals and coupons (which we really do appreciate) since the late 1700’s, on paper. You’re easy to make, you’ve been mass distributed and you’ve been a marketing-winner in a paper-filled world. Yes, I know, you can be glossy and come in a variety of formats.
I also see you’ve got your feet wet, trying to go digital in the way of assuming the role as an online flyer. You’re even an app, these days. Congratulations. You took the first steps. But, here is something I’d like you to consider.
Picture not having to sit in a physical mailbox or linger patiently on a website until someone clicks there to view it. Picture not being hidden in an app icon, awaiting the first hurdle – to be opened, then the second hurdle – being seen amidst all the other flyers on the app itself. What if you could be sent directly and seamlessly to customers and be the only flyer that gets looked at when opened? What if you knew that you had a 95% chance of being opened?
More than half of the world now uses a smartphone and statistics show that SMS has a whopping 95% open rate. Pair that thought with the knowledge that you’re being sent to an opted-in customer list. These are loyal customers who want to read you.
You also have a wide range of options to time your messages. Outside of what day of the week you choose, you can be sent at a specific time that best fits your customers. For example, if you’re a grocery flyer, you may think it best to be sent on a Wednesday at noon, to prepare customers for a Thursday or Friday supermarket visit. Another thought to timing: You can be easily altered to account for sudden environmental or socioeconomic changes that could drive traffic for specific products – like shovels during a snowstorm, for example.
Another benefit of SMS, and of digital flyers in general, is the ability to track what customers have viewed on a flyer. Tracking what interests customers can lead to better offerings and ultimately benefits both customer and merchant. This along with the timing flexibility I mentioned, could eventually lead to preferences at the flyer level.
You’re asking, “Why not go the email route?” I can answer that one for you with some statistics. 10% of emails (in Canada) are doomed to the spam folder, while less than 15% even get opened.
Oh, is your paper starting to crinkle? That’s okay. For now, you are still a comfortable habit for customers, but you will become unmistakably thinner as people, more and more, are being drawn to digital flyers. Why not give SMS a try? The results will be astonishing and have you ditching the paper and going with SMS!
What to do with all that left-over paper lying around? Well – you can recycle it, of course!
At Raange, Inc., our goal is to elevate traditional brick & mortar retailers to quickly and easily transition to the latest marketing concepts and communication channels, to rebuild trusted dialogue with past, present, and future customers. Contact us about a PILOT today.
Let’s Talk About Boosting Your Flyers! Email @: Contact_Me@raange.com; Text @: (514) 613-3324 with Keyword ‘BOOST’
Luxury retailer Saks Fifth Avenue, operating under the Hudson’s Bay Company umbrella, has just announced the opening date of its Calgary store, as well as its new General Manager. Saks is looking to hire for over 120 positions for the new CF Chinook Centre location, which is scheduled to open on February 22, 2018. We’ve included seven renderings of the new store.
Saks Fifth Avenue opened its first two Canadian stores last year, both in Toronto. On February 18, 2016, Saks opened its 170,000 square foot downtown Toronto flagship at CF Toronto Eaton Centre, which occupies a portion of the east side of the massive Hudson’s Bay Queen Street building. On February 25, 2016, Saks opened a 143,200 square foot second store at CF Sherway Gardens.
The 115,000 square foot Calgary Saks store is being built in the mall’s former Target space — prior to Target, Zellers occupied that space. The new two-level Saks store will have a full-service restaurant and a salon, though it may lack the food halls found in Saks’ first two Canadian stores in Toronto. Renderings indicate that the Calgary store will look similar to its Toronto stores.
Saks just announced that Lydia Seifert has been appointed as Vice President, General Manager of Saks Calgary — she has nearly 20 years of experience in the retail industry.
A recruitment centre has opened in suite 701 of the CF Chinook Centre professional tower. Saks is seeking to fill approximately 120 full- and part-time career opportunities. Positions are available for selling managers and support managers, as well as sales and support staff in all departments, including men’s and women’s ready-to-wear, handbags, jewelry, shoes, cosmetics, personal shopping, merchandising, visual, alterations and asset protection. The recruitment centre is open for walk-ins and on-site interviews Mondays through Fridays. All interested candidates are encouraged to apply in-person or to submit a resume at www.hbc.com/careers or via this link.
Saks Fifth Avenue has said that it will open a 200,000 square foot flagship at the back end of Hudson’s Bay’s downtown Montreal flagship in 2018, though sources in the company say that there’s a delay, with more details to follow.
Saks has also said that it plans to open a store in Vancouver, though sources confirm that finding enough space is a challenge for Saks. One option would have been to insert Saks into Vancouver’s 637,000 square foot Hudson’s Bay flagship, though the option is now less likely given that WeWork will be taking the top two floors of Hudson’s Bay’s Vancouver store, reducing its size by about 140,000 square feet. Saks may end up building a freestanding store somewhere in the Lower Mainland, and downtown Vancouver is said to be a priority.
CF Chinook Centre is one of Canada’s top malls in terms of annual sales per square foot, according to Retail Council of Canada’s Shopping Centre Study. A 2017 study will be released this fall, and there are sponsorship opportunities available [sales kit] — last year’s study was widely read. As well, Retail Council of Canada is hosting an interesting event on November 21 at Google’s downtown Toronto headquarters, discussing the future of brick-and-mortar retail in Canada, including the new 2017 study. Click here for more information.
Renderings of the new Calgary CF Chinook Centre Saks Fifth Avenue are via Craig Nealy/Stantec.
The company now has more than 225 stores in Canada, with 46 in British Columbia, 28 in Alberta, 7 in Saskatchewan, 8 in Manitoba, 88 in Ontario, 37 in Quebec, 4 in New Brunswick, 2 in Newfoundland, 6 in Nova Scotia and one in PEI.
Over the past three years, Sherwin Williams has opened 48 new stores in Canada, and there’s no end in sight. The company is seeking to expand its presence within the province of Quebec, with a focus on the Greater Montreal and Quebec City regions. Sherwin Williams is working with brokerage Think Retail for its Quebec expansion (the company works with Webster Retail in Ontario) and is seeking sites in the 2,500 square foot to 4,000 square foot range along high streets and in open-air centres.
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.
Future Saint Laurent Boutique at Holt Renfrew 50 Bloor Street West (Image: Craig Patterson)
French Luxury brand Saint Laurent (formerly Yves Saint Laurent) will open a large boutique on the ground floor of Holt Renfrew in downtown Toronto this fall, featuring its own street-front entrance onto Bloor Street West. The Saint Laurent boutique is the latest addition to the 50 Bloor Street West Holt Renfrew flagship, which is about to see substantial renovations that will include the addition of several new luxury brand concessions.
Sources at Holt Renfrew say that the Bloor Street Saint Laurent boutique is expected to carry ready-to-wear as well as accessories. The space is quite large, taking over much of the west side of Holt’s ground floor that was, until recently, stocked with menswear. Holt’s men’s offerings have all been relocated to its dedicated 16,500 square foot men’s store, a block west at 100 Bloor Street West.
Saint Laurent has expanded its presence in Canada significantly over the past 15 months, having opened two boutiques, as well as a concession at Nordstrom in Vancouver. Saint Laurent opened its first standalone store in Canada in Vancouver at 746 Thurlow Street in July of 2016, spanning two floors and with 4,800 square feet of retail space. A second location at Toronto’s Yorkdale Shopping Centre, spanning 3,000 square feet on one level, opened in November of 2016. The company also recently amplified its Vancouver offerings with the addition of a new leased accessories boutique at Nordstrom in Vancouver’s CF Pacific Centre flagship, replacing a retailer-operated hard-shop that opened with Nordstrom in September of 2015.
(HOLT RENFREW, 50 BLOOR STREET WEST, ON OCTOBER 25, 2017. PHOTO: CRAIG PATTERSON)
(FLOOR PLAN: MORGUARD)
(UNDER WRAPS: A NEW LORO PIANA ACCESSORIES BOUTIQUE WILL BE OPENING SOON ON THE GROUND FLOOR OF HOLT’S AT 50 BLOOR STREET WEST. LORO PIANA ALSO RECENTLY OPENED A CONCESSION AT HOLT’S YORKDALE AND, SOON, IN VANCOUVER. PHOTO: CRAIG PATTERSON)
Saint Laurent’s new Bloor Street frontage will add an extra element of luxury to the part of the street between Yonge Street and Bay Street, which is undergoing unprecedented changes at a cost of hundreds of millions of dollars. On the south side of the block, the Manulife Centre is undergoing a podium transformation that will add new retailers, including a 50,000 square foot three-level Eataly (opening in early 2019) as well as an overhauled Birks jewellery store flagship. The Yonge-Bay stretch of Bloor Street West isn’t considered to be as luxury-focused as the stretch towards Avenue Road, generally — though Birks’ new store, which will feature street-front entrances for pricey shop-in-stores such as Van Cleef & Arpels and Breitling, will add an extra element of luxury to compliment Saint Laurent across the street.
(PODIUM OVERHAUL: LOOKING DOWN AT CONSTRUCTION AT MANULIFE CENTRE AT 55 BLOOR ST. W., WHICH WILL SEE EATALY OPEN A 50,000 SQUARE FOOT SPACE OVER THREE FLOORS IN 2019. BIRKS HAS TEMPORARILY RELOCATED TO THE CORNER OF BLOOR AND BALMUTO STREETS WHILE ITS FORMER SPACE IS OVERHAULED. PHOTO TAKEN OCTOBER 25, 2017 FROM THE CAFÉ AT HOLT’S BY CRAIG PATTERSON)
Holt Renfrew’s 50 Bloor Street West flagship is about to undergo a substantial renovation that will include the addition of several luxury brand concessions on its ground floor. A Loro Piana boutique is currently under construction on the east side of the floor near the store’s Prada and Miu Miu boutiques, and management from Celine were said to be in town this week to determine what they can do in terms of opening a substantial concession at Holt’s on Bloor, as well. Part of Holt’s new strategy appears to be to include multiple luxury branded concessions in its stores, creating a clustering that will attract wealthy clients to the store’s other departments and services. Upstairs on the second floor, as well, Brunello Cucinelli recently unveiled a bright, large women’s concession in retail space once occupied by Giorgio Armani and Tom Ford, and a Moncler boutique is under construction next to it. More changes will be on the way for the second level, as well, when Chanel relocates its expanded offerings to a massive new flagship that will open this fall at 100 Yorkville Avenue, though Chanel will also continue to retain a presence at Holt’s.
Luxury brands with street-facing entrances isn’t a new thing for Holt Renfrew — at one time, Giorgio Armani had a ground level boutique at Holt’s on Bloor, with access directly from the street. Last year, Chanel opened a 5,000 square foot street-level concession at Holt Renfrew in Vancouver that faces onto Dunsmuir Street, though it is only accessed from within the department store. In Montreal, as well, Holt’s features Sherbrooke Street West-facing retail spaces for Dior, Hermes and Gucci — though that will eventually change when Holt’s closes that store to merge with nearby Ogilvy. Sources confirm that the new Ogilvy will feature a number of large luxury brand concessions, with Chanel and others occupying large spaces on the store’s revamped ground floor.
A recent trend of suppliers/manufacturers setting up their own online stores is not going over well with bricks and mortar retailers who now have additional competition in the marketplace.
With a diverse inventory and minimal overhead, this is allowing suppliers to offer their products at a lower cost.
Fred Pritchard
Fred Pritchard, vice-president of Golda’s Kitchen Inc., in Mississauga, an online retailer of bakeware, cookware and cake decorating supplies, says some of the suppliers are aggressive about online sales and would have customers buy from them rather than the retailer.
(PHOTO: GOLDA’S KITCHEN)
“Those are the ones who are problematic suppliers. They also then typically want to orchestrate their policies around that ‘we’re going to sell on Amazon only, not you’ because they want the gravy of Amazon. They know that Amazon is a huge market and they won’t sell direct to Amazon as a vendor but they want to be the retailer on Amazon,” says Pritchard, adding that some suppliers are even opening their own physical stores.
“They now want the retail portion. So they explicitly exclude retailers from selling on Amazon or any other third-party marketplace platform and they pick up that work themselves because they’re greedy and they want to see extra profit. So they tell you, you can only sell on your website.”
Pritchard says Golda’s Kitchen is one of the longest established online retailers in Canada starting in 1999. It also has a bricks and mortar store in front of its warehouse.
The bottom line for many retailers is that it affects their sales and their bottom lines.
“When will that business dry up because the supplier has inundated the web with their product . . . It’s not about when that small retailer will lose that business. It’s not about if they will, it’s when. When will the consumer stop buying that product in their store because they can get it cheaper from the manufacturer?,” says Pritchard.
“My suggestion to the independent retailer is if you have a brand that’s intent on selling direct, get them out of your store as soon as possible and replace them with a brand that is going to respect the work you do, respect the effort you do educating consumers, talking up the product features, and working with customers either on your website or directly. And work with those types of suppliers. There’s enough suppliers out there who are not selling direct and you can fill your store with fabulous things and your consumers will be happy.”
(PHOTO: BOW CYCLE AT TV SHOW – BOW CYCLE INSTAGRAM)
John Franzky, one of the owners at Bow Cycle which has been in business 60 years in Calgary, says the trend has been a little hard to swallow since it first started as the retailer and the supplier are now both trying to sell to the same customer with two different means of operations.
“I’m supporting your brand. Paying my rent. And now I’ve got another competitor out there in the world wide web?,” says Franzky. “Obviously as a retailer I do have concerns about the web sales going out there, the Amazons and all of that.”
“I’ve been supporting these guys for years and I understand everybody wants to grow their sales but I have felt the slap in the face from a handful of manufacturers and distributors for decisions they’ve made to go after the business themselves.”
(PHOTO: BOW CYCLE CALGARY – BOW CYCLE INSTAGRAM)
But despite the increased competition, Franzky and other retailers feel there are still many consumers that like the look, smell and touch of bricks and mortar locations.
“The good bike shops are always going to have the smell of rubber. The Internet doesn’t have the smell of rubber. We’re definitely fearful of it. There’s no two ways about it. They’re taking market share,” he says.
Image: BraTopia
With time and the Internet and ecommerce, agencies and distributors for clothing stores are becoming more and more obsolete because the retailer doesn’t need a middle-man any more. This is the first business being threatened, says Colette Hamon, owner of BraTopia, a retailer of lingerie and swimwear which opened January 2011 in Calgary.
“These brands have moved a lot of their sales inhouse. Some of these companies have not only eliminated the agency distributor, they have also opened their own ecommerce sites so that you the consumer are going to go to their website to not only look at the product but you could also buy it off of their website,” she says.
Canadian plus size fashion brand Addition Elle is forging into the U.S. market, with a new e-commerce website, a new wholesale partnership with Macy’s, and the possibility of future brick and mortar stores.
“We always knew we had a strong following of U.S. customers interested in our brand,” says Roslyn Griner, vice president of marketing and visual presentation at Addition Elle. She notes that a large portion of the brand’s social media followers is comprised of U.S. residents.
The massive U.S. market presents a significant expansion opportunity for Addition Elle, which is well established in the Canadian market with 93 locations. The brand targets customers between the ages of 35 and 44, with a broad range of clothing ranging from office wear to casual wear, activewear and lingerie.
“There is so much potential growth in the U.S. market,” Griner says. “It’s one of the largest markets for plus sized, outside of Canada.”
Based on the success of the September pop up shop, the brand appears positioned to thrive in the U.S. The shop, which was located on Fifth Avenue in Manhattan’s Flatiron District, was stocked with every item from the Addition Elle fashion show, in every size. Customers could try on items in the store, and then make their purchase through the new e-commerce website.
“We wanted to start getting people to experience our fit, which we believe is our asset,” says Griner. The result, she says, was the highest ever level of e-commerce sales for Addition Elle. “We did the most sales online during that week of the pop up – more than we’ve ever done in the past.”
Addition Elle is not entirely new to the U.S. market. Wholesale partnerships with department stores such as Nordstrom and Dillard’s in the past couple of years have enabled Addition Elle to test the waters south of the border. A new partnership with Macy’s will expand that U.S. wholesale presence, with certain Addition Elle merchandise set to be carried in 50 Macy’s locations by the end of this year, and 150 locations as of spring 2018.
Without any standalone Addition Elle stores in the U.S., however, Griner says building brand recognition in the new market remains a challenge.
“The biggest challenge is that we don’t have brick and mortar stores there, so people can’t experience our fit on a day-to-day basis,” says Griner. “We’re competing with brands that have much bigger penetration.”
Standalone Addition Elle stores could be a possibility in the future, but before taking that step, Griner says the brand intends to monitor its online sales to identify regions where demand is strong.
“I think we need a year or two of online sales before we open up brick and mortar stores,” she says.
In the meantime, Addition Elle is focusing on boosting its profile through online and social media marketing, as well as partnerships with high profile influencers. For example, the brand has teamed up with prominent U.S. model Ashley Graham to produce several lines of intimate apparel.
North of the border, meanwhile, Addition Elle is focused on revamping some of its Canadian stores to improve the shopping experience for customers.
“We’re working on new concept stores,” Griner says.
