RioCan’s newest commercial development at the northeast corner of Yonge Street and Eglinton Avenue is now leasing space to retailers. The retail podium is at the base of the ‘E-Condos’ development, where RioCan has partnered with developers Bazis and Metropia on the 850-unit, twin-tower residential project. 

The high-traffic location is exceptional and will only get busier, according to RioCan leasing manager Oren Rubin. The Yonge and Eglinton intersection has the second-highest pedestrian footfall of any in the city, as well as considerable motor vehicle and subway traffic. Subway riders, in particular, are expected to increase with the opening of the Eglinton Crosstown LRT, according to Mr. Rubin, which is expected to be operational in about five years. 

The commercial component of E-Condos includes three levels. The ground level, accessed off of both Yonge Street and Eglinton Avenue East, features three retail spaces anchored by a large TD Bank – the podium’s first confirmed retail tenant. Other retail spaces include an 850 square foot space with lobby and Eglinton Avenue frontage, as well as a smaller 338 square foot space with Eglinton Avenue access as well as frontage to an office lobby (see plan below). Both spaces will see considerable visibility as well as pedestrian traffic via escalators leading down to the TTC subway station below. 

The concourse retail level features spaces for about seven retailers (space is customizable), which will see considerable pedestrian traffic from those accessing the subway, office tower, and the residential towers above. Hordes of people are expected to access this level on the way to-and-from the subway once the new entrances and escalators are operational. 

A second-level retail component is also available with multiple spaces, which will be accessed from ground-floor elevators. Both retailers and office tenants are being considered for these spaces, which will feature considerable natural light from large south and west-facing windows. 

For more information on leasing at E-Condos in Toronto, contact Oren Rubin at: orubin@riocan.com or by phone:  647.258.5124

RedFlagDeals.com has released survey results from June of 2016, where it surveyed over 1,000 consumers on their shopping preferences. The good news is that because of the low Canadian dollar and costs related to international e-commerce, many consumers plan on shopping in Canada over the US. The bad news for some Canadian retailers is that in the survey, respondents overwhelmingly expressed the desire to shop at discount outlets over full-priced stores and independent retailers. For reference, RedFlagDeals.com has over 775,000 registered users and sees over four million monthly visitors to its site.   

First, the good news. Over 85% of participants responded “yes” to the question: “With the current state of the Canadian dollar, are you planning to focus more of your spending locally instead of going across the border?” The remainder said that they’d continue shopping cross-border, primarily for goods not available in this country: 

For those who shop online at U.S. retailers, the respondents said that their biggest deterrent was shipping charges (33.96%), followed by exchange rates (31.9%), duty fees (29.94%) and customs delays (4.2%). 

Now for some potentially bad news for many Canadian retailers. Over 73% of respondents said that they prefer shopping at discount outlets, while 15.65% said that they prefer luxury retailers for the quality. The RedFlagDeals.com study also revealed that 10.87% of respondents shop at local independent retailers for unique products, as well as to support local merchants:  

Almost 71% of respondents said that they frequently use forums and deal sites to look for the best deals, and only 1.21% said that they don’t seek out deals. These numbers are likely skewed, however, given that RedFlagDeals.com solicited respondents from its site, which publishes thousands of deals over 70 categories: 

The study also asked respondents where they do the majority of their in-store shopping, with 53.12% of respondents saying that they shop in large chain stores. Of the same set of respondents, 34.48% shop primarily at discount outlets, 6.43% at high-end retailers, and only 5.96% said that they shop at local, independent retailers. 

The study examined online versus in-store shopping, with just over half of respondents saying that they shop both in-store and online, while 32.62% prefer shopping online only, and only 16.87% of respondents saying they shop exclusively in-store. This should be particularly concerning to retailers lacking e-commerce sites, which are more likely to be smaller independent retailers. The City of Toronto is hoping to get more local retailers online, for example, with its Digital Main Street initiative. 

The survey listed several stores set to open in Canada within the next couple of years. Almost 42% of respondents said they’d shop at none of these, which isn’t’ surprising considering that the top three retailers are confirmed to only be opening in Toronto at this time. Nordstrom Rack (opening its first Canadian location at 1 Bloor Street East in early 2018) got 28.91% of votes, while Uniqlo (opening this fall at CF Toronto Eaton Centre and Yorkdale Shopping Centre) got 27.02% and Saks Fifth Avenue (which opened two Toronto stores in February of this year) got 16.29% of votes. Almost 9% of respondents said they’d travel to shop at these stores, which is great for Toronto’s tourism numbers. 

Referring to the new retailers discussed above, 46.96% of respondents said that they wouldn’t increase their spending with the new openings, while 22.17% said they’d shop more during the hype of these store openings, and over 20% saying that they prefer to shop online, generally.  

The survey also asked respondents which retailers they’d like to see open in Canada, and which retailers they were most disappointed to see exit Canada in 2015. Regarding which stores respondents would most like to see open in Canada, 57.53% said they’d like to see Macy’s open here while 24.4% want JC Penney, 9.92% would like Barneys New York, and 8.51% would like Neiman Marcus to enter the Canadian market. Of the retailers which recently exited Canada, 46.87% of respondents were most disappointed to see Target leave, while 40.06% mourn the loss of Future Shop, 9.24% for Mexx and 3.83% for Grand & Toy (which continues to maintain an online retail presence). 

Canadian Retail News From Around The Web: July 27, 2016

By Jess Harris

There is nothing more satisfying than operating a successful retail business. Very few things can beat the feeling of making customers happy by offering the right mix of products at the right price.

At the same time, the retail business is one of the toughest endeavours you will ever undertake. As a retail business owner, you are always forced to juggle multiple tasks. Everything from dealing with disgruntled customers and handling suppliers to negotiating leases and managing employees all quickly become part of your expertise.

Perhaps the most critical task for a retail business owner is cash management. Being able to adeptly control the inflow and outflow of money is what separates thriving businesses from those that are just surviving. Retail is notorious for not providing a smooth inflow of capital though. This unsteady cash flow makes having a source of retail funding a must for every retailer.

Here are five ways retail funding can support your business:

1) Buying inventory

Having the capital available to purchase inventory at a moment’s notice is crucial for a retailer’s success. It is very easy to misjudge your customer’s appetite for a particular product, but not being able to restock your shelves with hot-selling items can significantly stifle your growth. While you can do your best to project future sales, it is a very inexact science. 

Also, your suppliers will likely have bargain deals available from time to time. Having the ability to jump on the deal instantly will enable you to get the best price possible.

2) Expansion

The old saying that if your business is not growing, it is dying, rings true in the retail world. Having a reliable and consistent source of retail funding can allow your business to expand quickly. Everything from locking down a location lease to outfitting the space with your design requires capital. Remember, the hot areas are always in demand. Being able to access the must-have capital when needed will enable you to stay one step ahead of your competition.

3) Making payroll

As a retail business owner, others may depend on you for their livelihood. Your hard-working employees rely on your business to support their families and lifestyle. The ability to never miss a payday is what builds trust and loyalty among your employees. 

Unfortunately, the unsteady cash flow of most retail businesses can make it difficult to meet payroll on a consistent basis. The smartest way to overcome this issue is to have a reliable source of retail funding always available.

4) Marketing

Retail business owners are entirely reliant upon their marketing efforts to attract new business. Even in today’s internet-connected age, marketing and advertising cost money. Sometimes this can be a substantial sum that may be beyond the company’s current capital. 

Right now, social media is where the smart retailers are spending their marketing dollars. Setting up and maintaining an online newsletter, targeted Google ads, Twitter accounts and Facebook profiles all require an outlay of capital, not to mention the inherent cost of hiring an expert to deal with this realm while you are operating the store.

Even traditional forms of marketing, such as window displays, have their costs. Customer-facing displays can draw clients and set you apart from competing stores. Another effective marketing tactic is placing a sidewalk board in front of your store to direct customers inside. An angle on this marketing method that borders on guerilla marketing is paying someone to stand outside of your store wearing a sandwich board marketing message. This method can be highly effective in locations that a regular sidewalk board is not permitted. 

To top it off, as you probably know, every form of marketing has a lag time. What this mean is that it takes a while for your marketing efforts to pay off. In fact, it sometimes takes much longer than you might expect before you see the first dollar returned from marketing efforts. Due to this delay, having a ready-to-use retail line of credit can be the ideal way to pay it forward with marketing.

5) Emergencies

Every retail business is exposed to a variety of potential emergencies. Things like a leaking roof or crashed computer can happen anytime. Having the security of a ready to use a line of credit can help manage any business emergency.

Retail funding can be key when facing a big or small cash flow situation. Since you are basically guaranteed to have slow weeks, or maybe even months, as well as booming periods, having a source of funds at the ready can help your retail business survive the ups and downs of this fast-paced industry.

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