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Sport Chek Plans More Innovative Flagship Locations

ROBSON STREET FLAGSHIP SPORT CHEK. PHOTO SUPPLIED.

Calgary-based, FGL Sports-owned Sport Chek is continuing to open innovative flagship stores in Canada, following the opening of its first location in 2014. Last week, Sport Chek opened an impressive store on Vancouver’s Robson Street and according to Vice President and head of Flagship and Special Projects, Eric Watt, several more flagships will open over the next three years. 

The Robson Street flagship is unique in the way that it’s designed, as well as how it opened, according to Mr. Watt. The three-level, 54,000 square foot store features an entrance ‘portal’ characteristic of Sport Chek’s flagships but in a modified format to suit an existing streetfront structure. The prominent Robson Street building, located at the southeast corner of Robson and Howe Streets (across from Nordstrom) was, until the summer of 2015, occupied by book retailer Chapters. Because of the design of the existing structure, the portal was inserted into the glass prism. The store’s opening week was also more ‘event driven’ than most openings according to Mr. Watt, with promotions for Fitbit and Nike last weekend, for example. 

Robson Street is Sport Chek’s fifth flagship location, along with previously opened stores at West Edmonton Mall, Metropolis at Metrotown in Burnaby BC, Yorkdale Shopping Centre in Toronto, and at Square One in Mississauga. Mr. Watt said that Sport Chek could open another seven or so Canadian flagship locations over the next three years, with the next set to open this summer at Toronto’s CF Sherway Gardens (spanning about 75,000 square feet), next to Saks Fifth Avenue in retail space formerly occupied by Sears

Mr. Watt said that he’d like to see a large Sport Chek flagship somewhere in downtown Toronto, and that the company would need to find the right sized real estate for such an endeavour. Sport Chek currently operates a 15,000 square foot location at CF Toronto Eaton Centre which he said will see renovations to become a ‘hero store’ — that is, a location featuring digital technology and other innovations, but lacking the square footage of a full flagship store, which are typically in the 45,000 to 80,000 square foot range. 

Sport Chek’s flagships reflect the most digitally-savvy store execution anywhere in the world, according to the company. Flagship stores feature digital installations to improve the customer experience, and it’s paying off — the company’s first two flagships have seen double-digit annual growth. Sport Chek’s first flagship opened at West Edmonton Mall in early 2014, measuring an impressive 80,000 square feet over two floors. A second flagship opened at Ivanhoé Cambridge‘s Metropolis at Metrotown in December of 2014, spanning about 48,000 square feet.

Nespresso Reinforces Canadian Presence, Plans Expansion

RENDERING OF THE YORKDALE STORE WHICH OPENED IN SEPTEMBER OF 2015, VIA NESPRESSO

Nestlé-owned Swiss coffee brand Nespresso has been expanding its Canadian brick-and-mortar operations of the past several years, and it’s not finished yet. According to Brand Manager Caroline Desvaux, Nespresso will look to expand its store base into Western Canada over the next two years, following solidifying its presence in Quebec and Ontario. Nespresso is working with brokerage Oakmont Real Estate Services for its Canadian store expansion. 

Ms. Desvaux explained Nespresso’s three store concepts: flagship ’boutique-bars’ (selling food, coffee drinks as well as coffee makers/pods), mall-based boutiques (selling coffee makers/pods), and partner shop-in-stores. Nespresso currently operates two large boutique-bars — its first opened on Montreal’s Rue Crescent in 2009, and a spectacular 14,000 square foot Toronto location (designed by Italian firm Goring & Straja) followed in the fall of 2013 in a former theatre on Yorkville’s Cumberland Street.

Nespresso operates five freestanding mall stores — at Yorkdale Shopping Centre and CF Sherway Gardens in Toronto, at CF Rideau Centre in downtown Ottawa, at CF Carrefour Laval in suburban Montreal, and at Place Ste-Foy in suburban Quebec City (which opened April 22 of this year, according to Maxime Frechette). Nespresso also operates eight shop-in-store locations at partner retailer Hudson’s Bay, selling pods and coffee machines in downtown Vancouver, Edmonton (Southgate Centre), Calgary (CF Chinook Centre), Toronto (Queen Street flagship at CF Toronto Eaton Centre, Yorkdale), downtown Montreal and at suburban Quebec City’s Laurier Quebec

Nespresso technically has a fourth store concept — it operates a series of pop-up shops and at the moment, has them at Metropolis at Metrotown in Burnaby BC, CF Fairview Mall in Toronto, and at CF Galeries d’Anjou in Montreal. 

NESPRESSO’S 14,122 SQUARE FOOT TORONTO CUMBERLAND STREET ‘BOUTIQUE-BAR’ IS ARGUABLY ONE OF THE MOST ATTRACTIVE RETAIL SPACES IN CANADA. PHOTO: NESPRESSO

Physical store locations provide the full Nespresso ‘brand experience’ according to Ms. Desvaux and because of this, they are critical to the brand’s Canadian expansion. Nespresso stores provide a connection to consumers that keeps them coming back, as well as offering pod recycling to be environmentally friendly. 

Moving forward, Nespresso is looking to enhance its presence in Western Canada according to Ms. Desvaux, following its reinforced Quebec and Ontario operations. An expansion won’t happen right away, she said, though the company expects to operate stores there either in late 2017 or early 2018.

Vancouver will be a key market, she noted, though it will depend on real estate opportunity whether or not BC’s largest city sees a large boutique-bar like in Montreal and Toronto, or a smaller mall-based boutique. Calgary will be next on the list after Vancouver, likely seeing a mall store not unlike those at Yorkdale or CF Carrefour Laval. 

According to Oakmont Real Estate Services, Nespresso is seeking retail space in the 2,000 to 3,000 square foot range, in malls and on high streets. Oakmont’s Ben Labrecque (1-514-917-5015) and Jim Murdoch (1-514-831-2001) are the broker contacts for the brand in Canada. 

Prada Opens 1st Canadian Saks Concession

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Italian luxury brand Prada has opened its first location within a Canadian Saks Fifth Avenue store. The ground floor accessories boutique at Saks Queen Street/CF Toronto Eaton Centre could be the first of several for Saks, as the retailer further expands operations into Canada. 

Toronto’s 170,000 square foot Saks flagship opened on February 18 of this year, though ground floor concessions for Prada and Dior were both latecomers. Dior still has yet to open and when it does, it will be one of two Dior concessions within the downtown Saks — this fall, Dior will also open a ready-to-wear women’s boutique on Saks’ third floor. 

Prada currently doesn’t have a concession within Saks at CF Sherway Gardens in suburban Toronto, Saks’ only other full-priced Canadian store. Prada could eventually open within other Canadian Saks stores, as the retailer expands operations outside of Toronto. Sources say that Saks is expected to soon announce a store location in a major Canadian city that will open in February of 2018, measuring in excess of 100,000 square feet. 

Prada is in the process of significantly expanding its Canadian operations. The Toronto Bloor Street flagship is adding a second level, growing the store from 5,889 square feet to 13,640 square feet, making it the largest in Canada. Prada opened a large two-level flagship in downtown Vancouver in March of this year. 

Prada currently operates concessions within five Holt Renfrew locations (Vancouver, Calgary, Toronto Bloor Street, Toronto Yorkdale, Montreal). Last year, sources said that Prada would open an expanded ground-floor concession with a streetfront entrance at Holt Renfrew’s Bloor Street flagship, featuring accessories, footwear and ready-to-wear. It’s unclear if that’s still the case. The Prada concessions within Holt Renfrew’s Vancouver store will expand as the store grows and renovates, and sources at Holt Renfrew say that Prada will open in an expanded Ogilvy/Holt’s in Montreal in 2017. 

Groupe Dynamite CEO, Andrew Lutfy, named Distinguished Canadian Retailer of the Year by Retail Council of Canada

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Retail Council of Canada (RCC) has announced that Andrew Lutfy, CEO of Groupe Dynamite Inc., will be the recipient of the 2016 Distinguished Canadian Retailer of the Year Award. He will be presented the award at this year’s Excellence in Retailing Awards Gala on May 31, as part of RCC’s RCC STORE Conference being held on May 31 and June 1 of this year in Toronto.

“RCC is thrilled to recognize Andrew Lutfy for his passion, his leadership, and his ability to embrace change in today’s retail landscape,” said Diane J. Brisebois, President & CEO, Retail Council of Canada. “Under his vision and direction the Groupe Dynamite brands, Garage and Dynamite, have grown from a handful of stores to close to 400 locations in Canada, the US and the Middle East,” added Ms. Brisebois. “Mr. Lutfy’s knowledge of the market and willingness to innovate have empowered the Groupe Dynamite team worldwide to understand their core customer and deliver exceptional service both in-store and online.”

Andrew Lutfy joined Groupe Dynamite in 1982 at the age of 18 as a stock clerk. He took an active management role which covered most functional areas of the business and quickly became an equal, ownership interest in the company; in 2002, he became the sole owner. In 2007, Andrew was presented with the Ernst & Young Entrepreneur of the year award which honours entrepreneurs who have shown outstanding skills and who have excelled in a wide spectrum of activities such as business expansion, risk taking, innovation and personal commitment towards their company and community.

Mr. Lutfy has been heavily involved in community service since the age of 18 when he co-founded the Montreal Youth Foundation. Since 1997, Mr. Lutfy has raised money for the Cedar’s Cancer Foundation; in 2014 he was recognized with great honour for his generous donation benefiting the new state of the art cancer centre. Today, through its “Make a Difference” program, Groupe Dynamite and its employees actively support a variety of local, national and international charitable initiatives such as the Cure Foundation, the Starlight Foundation, Centraide/United Way, and other local charities. To date, over $2 million has been raised for these organizations.

The Distinguished Retailer of the Year Award, sponsored by MasterCard, recognizes a retail leader who has led his/her company to outstanding business success and who has consistently demonstrated a commitment to the communities they operate within. The recipient is seen as a role model because of his/her exceptional leadership within the corporation, in the retail industry in Canada and in the community at large, through personal and/or corporate philanthropic activities. Groupe Dynamite joins a long line of passionate merchants across Canada receiving the award, including Leon’s, Harry Rosen, Canadian Tire Corporation and Aritzia.

The Distinguished Retailer of the Year Award will be presented to Mr. Lutfy at the Excellence in Retailing Awards Gala on May 31, 2016. The Gala, part of STORE Conference 2016, will take place at the Toronto Congress Centre from 6:15 p.m. to 8:30 p.m. ET on May 31. For further information and to purchase tickets: STOREConference.ca

Frank & Oak Reveals Innovative Brand Overhaul

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Montreal-based omni-channel men’s apparel brand Frank & Oak has announced that it has modified its name and logo, launched a new app with same day delivery, and has launched a new store concept that will be rolled-out nationwide. 

Frank & Oak is dropping the “&” in its name, replacing it with “+” for the new name ‘Frank + Oak’. The logo has been amended to reflect this and as well, the words ‘Frank’ and ‘Oak’ are staggered to represent a “step up” — highlighting the brand’s support for people who dare to take creative and entrepreneurial risks, according to a company press release. 

The retailer has launched a new app featuring immersive video, available for download at Canadian and U.S. App Stores for iPhone and iPads. The app offers ‘guided shopping’ via Frank + Oak’s stylist team (as well as bots), making recommendations through live chat. User’s personal tastes (based on prior purchases, profile and location) will provide ‘micro-personalization’ and suggestions of featured products. 

Frank + Oak is also offering two-hour delivery on an assortment of core apparel and grooming items, beginning with Montreal, Toronto and Vancouver. There will be a $3 charge for ‘Elevate’ members, though that fee is waived on orders of two or more items. Non-members pay $6 for the same service. The app home screen features a personalized selection of pieces available for same-day delivery on weekdays between 8:30 am and 4:30 pm, and the service will expand to all other Canadian and U.S. Frank + Oak retail markets by September of 2016. 

Frank + Oak is also launching a new flagship store format, “transforming the store into a channel for service” according to the company press release. Each flagship will be about 3,000 square feet and will feature four ‘zones’ — a private personal styling zone, a grooming zone, a browsing zone and a lounge zone offering third-party coffee and treats. Customers will also be able to make in-store appointments with trained personal stylists or barbers either on the app or on Frank + Oak’s website. Montreal will be the first city to see the updated retail concept (at Frank + Oak’s CF Carrefour Laval location), with other locations set to open in the coming months, either by converting existing stores or opening entirely new locations. 

Oberfeld Snowcap represents Frank + Oak as brokerage for its Canadian stores. 

Frank + Oak co-founder Ethan Song will be speaking at Retail Council of Canada’s STORE Conference 2016, being held on May 31 and June 1 in Toronto. Mr. Song will be part of a ‘fireside chat’ from 2:50 pm to 3:30 pm on May 31. For more information, visit: www.storeconference.ca/agenda

Below are photos of the CF Carrefour Laval store, supplied by Frank + Oak.

Esprit Re-Enters Canada, Plans National Expansion

WEST EDMONTON MALL STORE. PHOTO: SUPPLIED

Fashion brand Esprit has re-entered the North American market, having just opened its first location on the continent in Edmonton. The brand has partnered with Montreal-based Freemark Apparel Brands to coordinate expanding Esprit’s Canadian operations. 

The 2,000 square foot West Edmonton Mall store, featuring womenswear only, is strategically located between Samsung Experience Store and Oakley on the mall’s second level. Two doors down is Lululemon‘s highest selling store worldwide, boasting higher annual revenue than some large department stores. This month, Esprit also opened its second Canadian location at Ivanhoé Cambridge‘s Metropolis at Metrotown in Burnaby, BC, measuring about 2,500 square feet and featuring both men’s and women’s collections. Both stores feature casual west coast-inspired interiors with natural wood finishings, designed in Germany where Esprit’s corporate office is located. 

Esprit was founded in California in 1968, and retails clothing for men, women and children. Collections range from casual to dressy. The brand exited North America in 2012 and last year, partnered with Freemark Apparel Brands to re-enter the market. Freemark’s Vice President of sales and co-owner, Lawrence Routtenberg, said that Esprit’s previous store locations were often quite large and this time around, stores will generally be in the 1,500 to 2,500 square foot range to create more of an intimate boutique feel. 

WEST EDMONTON MALL STORE. PHOTO: SUPPLIED
CLICK FOR INTERACTIVE WEST EDMONTON MALL MAP.

Mr. Routtenberg revealed that long-term, Esprit will look to carefully open freestanding Canadian stores, while being respectful to the brand’s roughly 250 Canadian wholesale specialty accounts. Ultimately, he said that Canada could see about 30 or so Esprit stores, though exact numbers would be contingent on opportunity and the economy. Esprit wants only the ‘best’ locations for its stores and as a result, top malls will be targeted. For example, this fall, Esprit is confirmed to be opening its third Canadian store at Mississauga’s Square One Shopping Centre. Urban street front locations may also be considered, in such locations at Saint Catherine Street in Montreal, Robson Street in Vancouver and Queen Street West in Toronto. Eventually, outlet stores could be added to the mix, he said. 

Review: ICSC/CSCA Reseach Seminar, May 5 in Toronto

The International Council of Shopping Centres (ICSC) held a Canadian retail research seminar in Toronto on May 5 of this year. The seminar was presented by ICSC and the Centre for the Study of Commercial Activity (CSCA) at Ted Rogers School of Management at Ryerson University.

A total of 135 people registered for the event, which took place over the course of the day. Retail Insider analyst and GIS specialist Paul Amato attended the seminar and noted a few key takeaways. 

ICSC Vice President of research, Jean Lambert, said: “We are witnessing a more complex consumer journey” and according to Paul Amato, the seminar shined a light on this phenomenon, as it explored topics such as Food and Entertainment as the new anchor, who Millennials are and what drives them, The Customer Experience, and related topics. 

John Crombie, Senior Vice President OF Retail Leasing at Triovest Realty Advisors, presented on the topic of Canada’s Retail Leasing and Investment Market, and Mr. Amato provided us with the following key points from the discussion: 
•    National shopping centre sales is productivity are up 1.6% at $732 this year over last,
•    In 2016, there’s 9.3 million square feet of new space being added (mall expansions and redevelopments)
•    The HENRY’S consumer group (High Earners Not Rich Yet) account for the increase in consumer spending, however are the most volatile.
•    Big malls are getting bigger, focus on luxury retailers/goods
•    Urban mixed-use projects on the rise, as is the growth in fitness centres/clubs
•    Grocery battles for “click & collect” business heats up (+3% higher margins in pick-up versus home delivery)
•    Food and Beverage as the new anchor – with 2015 total spending at restaurants and bars having exceeded grocery for the first time (US)
•    Transportation hubs expanding the retail offer
•    Rental apartments now offer more retail
•    M&A activity continued in 2015-16
•    Experiential retail gains momentum (Starbucks, Barbie and UBISOFT)
•    Un-branding trend in retail, with Lululemon opening new store in New York offering bespoke and customizable fashions.

The seminar went on to discuss Food and Entertainment ‘as the new anchor’, with the following key points of discussion: 
•    Consumption of prepared foods on rise
•    Millennials and boomers, the two largest consumer groups, are both seeking curated quality meals
•    The hunt for hangouts and communal food experiences driving this trend
•    Food Halls – hybrid of supermarket, food court, farmer’s market and restaurant, that also carry lifestyle goods that complement the food experience:
-Stir Market, LA
-Latinicity, Chicago
-Chophouse, Seattle, and
-Bourbain Market, New York

Food in the department store trend, with Beaumont Kitchen in Saks Fifth Avenue at CF Sherway Gardens, Nordstrom’s three concepts (Habitat, eBar and Bazille), La Maison Simons with Cafe Eve — the objective is to encourage the “dwell and sell” objective of retailers, according to the presentation. 

The seminar then went on to discuss the consumer experience, and how it’s transforming brick-and-mortar retailing. Six major trends identified were: 
Consumer Experience – Transforming Bricks & Mortar
The 6 major trends:
o    Experience cramming – Frank & Oak
o    Minimal Consumption – H&M wedding dress (value-priced fashions)
o    Personalization – customizable shoes at Salvatore Ferragamo
o    Accessibility/cashless – Uber
o    Care for others – TOMS, Panera Cares
o    Mindful Living & Ecourban

For more information on the International Council of Shopping Centres and their related education programs and other initiatives, visit: www.icsc.org.

Saks OFF 5TH Announces Toronto and Edmonton Stores

Image: Saks OFF 5th

Saks Fifth Avenue‘s off-price retail concept, Saks OFF 5TH, has revealed two more Canadian locations, adding to 11 already announced. Included is OFF 5TH’s first Edmonton store, as well as one in Toronto. Saks says it plans to operate up to 25 Canadian OFF 5TH locations by the year 2018.

The 31,900 square foot Edmonton store will be at South Edmonton Common, and will open in September of 2016. South Edmonton Common is one of North America’s largest open-air retail developments, and is owned and operated by Cameron Development Group. The centre is anchored by a number of large retailers, including a massive Ikea store as well as an innovative new format Canadian Tire Store, also the largest in Canada. 

The 27,000 square foot Toronto OFF 5TH will open at 1950 Queensway at The West Mall in Toronto, also in September of 2016. That property is owned and operated by Fima Developments. Saks OFF 5TH will compliment the nearby full-priced 143,200 Saks Fifth Avenue store at CF Sherway Gardens, which opened in February of this year. 

Saks OFF 5TH has also announced plans for fall 2016 store openings at Tsawwassen Mills in South Delta, BC, at Calgary’s CrossIron Mills, and within the Hudson’s Bay building in downtown Ottawa. Saks OFF 5TH launched in March of this year with four locations in Ontario. 

Related (discussing all Canadian OFF 5TH stores) — Saks OFF 5TH Announces Vancouver, Montreal, Quebec City, Winnipeg Locations (December 3, 2015)

Reiss Opens 2nd Freestanding Canadian Location

PHOTO: CF SHERWAY GARDENS

British fashion brand Reiss has opened its second freestanding Canadian store as it expands its brick-and-mortar operations nationally. The store will host an opening event for the public on the evening of May 12. 

The 2,400 square foot store at Toronto’s CF Sherway Gardens follows the opening of Reiss’ first free-standing Canadian store at CF Toronto Eaton Centre in the summer of 2015. In October of this year, Reiss will open its third freestanding Canadian store at Toronto’s Yorkdale Shopping Centre

CLICK ABOVE FOR INTERACTIVE MALL MAP
LEASE PLAN: CADILLAC FAIRVIEW

Reiss has also partnered with Hudson’s Bay for its Canadian expansion. Last summer, Reiss also opened men’s and women’s concessions within Hudson’s Bay’s Queen Street flagship in Toronto, with more expected to follow.

When we reported on Reiss’ Canadian expansion last summer, the company said that it is examining a number of cities in which to possibly open free-standing stores, including Vancouver, Montreal and Calgary. Reiss is seeking retail space in the 2,500 square foot to 3,500 square foot range, ideally in busy shopping centres. Larger locations are ideal, as they allow the brand to showcase its comprehensive men’s and women’s collections.

Founded in London by David Reiss in 1971, the contemporary-priced, youthful brand sells women’s and men’s apparel, as well as accessories and footwear. The company recently launched made-to-measure men’s suits at selected locations. The company continues to be solely owned by Mr. Reiss.

Massive Canadian Fashion Trade Show Launching Early Next Year

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Launching in Calgary early next year will be inaugural biannual fashion trade show, PARKSHOWEXPO, that will celebrate Canadian fashion and encourage brands and retailers to keep dollars within the country. Taking place from February 27 to March 1 of 2017, the event invites buyers, retailers, designers, brands and consumers from across the nation to participate, bringing together the fashion industry under one roof for an inclusive business-to-business fashion exchange.

More than 350 fashion brands and distributors will showcase Autumn/ Winter 2017 men’s and women’s outerwear, attire and accessories to 2500+ industry professionals. Arts, culinary and educational programming will complement the trade show allowing national and international attendees a refreshing dialogue on Canadian fashion.

“There are no current opportunities within Canada where all the members of the fashion industry can come together, and much less for the consumer or international retailers and distributors to access Canadian brands,” says Megan Szanik, co-founder and CEO of PSE “PARKSHOWEXPO is flipping the traditional model on its head. We’re gathering all members in one place so we can inspire, connect and educate our colleagues on the changing fashion business. We believe that in this economy, it’s not only smart, it’s essential for Canadian retailers to keep dollars close to home and to showcase and encourage the export of sought after fashion that is designed and made in Canada.”

Apart from industry events, the public will be invited to explore style-focused installments, including PARKSHOP – the world’s biggest Canadian brand pop-up shop.

Brands, designers and retailers interested in participating in PARKSHOWEXPO can find more details at parkshowexpo.com