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Free People Reveals Continued Canadian Expansion Plans

TORONTO YORKVILLE STORE. PHOTO: FREE PEOPLE

Popular American womenswear brand Free People is continuing a store expansion which will include larger stores as well as locations in new Canadian markets. We spoke with Beth Wehagen, Director of Retail, to get information on what’s in store for the brand in this country. 

Free People was established in 1984 and is known for its ‘bohemian-chic’ fashion. It sells women’s clothing, accessories, footwear, intimates, athletic wear and swimwear. The company is owned by Urban Outfitters Inc., also owner of retailers Anthropologie, BHLDNTerrain and Urban Outfitters, and is headquartered in Philadelphia.

The company’s first Canadian store opened in the summer of 2012 in Toronto’s Yorkville area and about three weeks later, a second Canadian location opened in Calgary’s CF Chinook Centre. In the fall of 2014, two Vancouver locations opened — one at West Vancouver’s Park Royal, the other on Vancouver’s tony South Granville shopping strip. 

Ms. Wehagen explained that Free People’s newer stores will be larger than previous ones. Canada’s first Free People locations measure in the 2,500-3,400 square foot range and moving forward, new stores will typically span in excess of 5,000 square feet. On October 30 of this year, Free People opened its largest Canadian stores, a 5,850 square foot location at CF Sherway Gardens and Ms. Wehagen revealed that next February, the brand will open a 5,400 square foot unit at CF Toronto Eaton Centre.

CF SHERWAY GARDENS STORE PHOTO: FREE PEOPLE

Ms. Wehagen explained that the company’s larger store format allows Free People to profile a broader range of fashions, including footwear and party dresses. The Eaton Centre location will also feature athletic ‘FP Movement wear’ when it opens, she said. 

Looking forward, Ms. Wehagen said several Canadian markets could see Free People stores. She specifically mentioned Edmonton, Montreal and Ottawa as possible markets, though the brand will carefully evaluate properties and markets before making expansion decisions. Free People locates its stores inside of shopping malls as well as on busy urban streets, providing ample opportunity for further Canadian expansion.

Photos below are of Free People’s lovely new CF Sherway Gardens location, provided by Free People. 

CF SHERWAY GARDENS STORE PHOTO: FREE PEOPLE
CF SHERWAY GARDENS STORE PHOTO: FREE PEOPLE
CF SHERWAY GARDENS STORE PHOTO: FREE PEOPLE
CF SHERWAY GARDENS STORE PHOTO: FREE PEOPLE
CF SHERWAY GARDENS STORE PHOTO: FREE PEOPLE

Versace Opens in Vancouver

Canada’s second Versace fashion store has opened in Vancouver. the 1,875 square foot boutique joins recently opened locations for Brunello Cucinelli and Strellson, all located in the base of the new 745 Thurlow Street office tower. Versace occupies municipal address 747 Thurlow Street.

Versace held a by invitation-only private cocktail party last week, hosted by Vogue Magazine, and Retail Insider’s Helen Siwak was in attendance.

Italian brand Moncler just opened across the street from Versace at 748 Thurlow Street, and a three-level Prada flagship is under construction at the southeast corner of Alberni Street and Thurlow Streets, in the area now referred to as Vancouver’s ‘Luxury Zone’. Sources say that more luxury brands are negotiating to open nearby. 

Canada’s first free-standing Versace fashion store, measuring 2,820 square feet, opened in the summer of 2014 at Toronto’s Yorkdale Shopping Centre. The Italian luxury fashion brand was founded by the late Gianni Versace in 1978, and it is seeing a resurgence as it opens stores around the world. Upscale Vancouver-based fashion retailer Leone continues to operate a Versace shop-in-store, and Versace Home opened last summer in Vancouver’s Gastown area. 

Installation of Italian lime plaster sealed with Marsi soap wax. Photo Darrell Morrison
PHOTO: DARRELL MORRISON

745 Thurlow is a 25 storey office tower encompassing 400,000 square feet at the southwest corner of Thurlow and Alberni Streets. The tower is designed to achieve LEED ‘Core and Shell’ Gold certification – the first office tower in downtown Vancouver to do so. 

Versace was represented by Stan Vyriotes and David Wedemire of DWSV Remax Ultimate Realty Incorporated, and Larissa Jacobson (604-661-5066) at Bentall Kennedy (Canada) LP handled retail leasing for the landlord. 

Victoria’s Secret Opens Massive Montreal Flagship [Photos]

America’s largest lingerie retailer, Victoria’s Secret, has opened its second-largest store in the world, in Montreal. Located at 1171 Sainte-Catherine Street West, Victoria’s Secret replaces a Chapters bookstore that formerly occupied the location

The new Montreal store spans a total of 33,162 square feet and of that, 21,346 square feet is dedicated to sales floor space. In comparison, the Vancouver Robson Street flagship, which opened in August of 2013 and was previously Canada’s largest, features a sales floor of 16,696 square feet. Both stores are smaller than the company’s 60,000 square foot Herald Square location in New York City and in November of 2016 Victoria’s Secret’s largest store, measuring 63,780 square feet, will open on Fifth Avenue in Manhattan. 

The Montreal store features three selling floors, including a basement level dedicated to the retailer’s PINK line. The company’s entire assortment of signature bras, panties and sleepwear are featured, as well as its sport, beauty and swim lines. A marble and glass staircase connects all three floors, and 45 video screens and over 2,000 mirrors surround the store. 

Sainte-Catherine Street West has seen several new retailers recently open, including large locations for Vancouver-based women’s fashion retailer Aritzia, Dutch denim brand G-Star, and H&M-owned COS. Many popular retailers line the street and to the west is department store Ogilvy (set to merge with Holt Renfrew) and to the east is La Maison Simons, Hudson’s Bay, Maison Birks‘ global flagship and, in the fall of 2018, Saks OFF 5TH will open a large location at Montreal Eaton Centre. The street will soon see a public realm revamp that will include more trees, street furniture, free WiFi and heated sidewalks. 

Montreal-based Aurora Realty Consultants represented Victoria’s Secret in the lease deal. 

Dollarama Reaches Store Count Milestone

Montreal-based dollar store chain retailer Dollarama reached a milestone at the end of the third quarter of 2015, surpassing 1,000 store locations nationally. The company says that it plans to eventually operate about 1,400 Canadian stores. 

Dollarama now operates 1,005 Canadian locations, having opened between 70 and 80 in the year 2015. Sales increased 6.4% during the third quarter ended Nov 1, 2015, up from a 5.9% increase the year prior. New store openings and same store sales increases saw Dollarama grow sales by 13% to $664.5 million, with net income rising to $100.1 million and earnings per share increasing 41.8% to 78 cents, from 55 cents the year prior. 

An increase in average transaction is credited, partially, for driving same-store sales growth. Almost 60% of sales came from items priced higher than $1.25. The retailer will increase its highest price point to up to $4 in the second quarter of 2017, it says — up from 2009’s per-item high of $2. “We have done very well so far this year with managing the significant deterioration of the Canadian dollar through the use of foreign exchange contracts in order to hedge the cost of merchandise paid for in U.S. dollars. Certainly our pricing strategy has contributed to some of the uplift seen in the gross margin so far in Fiscal 2016” said Dollarama CEO Larry Rossy. 

Dollarama is preparing to test accepting credit cards in British Columbia early next year at more than 80 stores. “What we’re looking for is to improve the shopping experience of our customers while stimulating more sales to offset the costs,” said CFO Michael Ross. Higher-priced items, and resulting higher margins, may facilitate this move. Dollarama currently accepts cash and debit cards for payment. 

Harry Rosen CEO Discusses Future [With Video]

Upscale Toronto-based multi-brand menswear retailer Harry Rosen‘s CEO, Larry Rosen, was recently interviewed on CBC’s The Exchange by host Bruce Sellery. The segment, titled ‘All in the Family’, discussed the family-owned business, competition, strategy, and the future of the retailer.

In the video segment below, Mr. Rosen discusses increasing competition, and how advanced notice gave Harry Rosen time to prepare for competitors Nordstrom and Saks Fifth Avenue‘s entry into Canada. A couple of years ago, Harry Rosen commenced a $100 million store overhaul that is almost complete, creating 17 state-of-the art men’s stores by renovating existing locations and in some instances, opening replacement stores. 

Mr. Rosen revealed an interesting innovation — the retailer wants to make e-commerce ‘personal’ by providing each sales associate the opportunity to have their own website to interact and further build relationships with clients. If it comes to fruition, Rosen’s may be the first retailer in the world to spearhead such an initiative. Relationship building is key to Harry Rosen’s business, said Mr. Rosen, and personalizing the online experience is key to the retailer’s omni-channel endeavors.  

Mr. Rosen revealed that he has received many offers to buy Harry Rosen, but he won’t sell the 62 year old family-owned company any time soon. He went on to say that at some point one or more of his sons may become involved in operating the chain, though he declined to provide further details except to say that “there will be more Rosens in the company”. Larry Rosen became CEO of retailer Harry Rosen in the year 2000 and prior to that, his father, Harry, controlled its operations. 

Larry Rosen then went on to discuss clustering in the Canadian retail industry, and how luxury retailers, in particular, are focused on a handful of key Canadian malls that continue to gain market share. Harry Rosen has created “great stores” that are part of that clustering and as well, Mr. Rosen said that the company is spending more on training to ensure that its service advantage is “that much higher” than the competition. 

Mr. Rosen concluded the interview saying that he “loves a fight” and that he’s determined to “win this battle”, referring to competition in the market. Given the strength of the brand, investment in bricks-and-mortar and omni-channel, and its investment in customer service and human capital, this world-class homegrown retailer will continue to thrive with the best of them. 

Study Shows Significant 2015 Black Friday Participation Increase in Canada

Vancouver-based think tank DIG360 partnered with NRG Research Group to ask Canadians about their participation in Black Friday 2015. Remarkably, the study found a significant increase in participation over last year.
 
A total of 1,003 adult Canadians were polled from the evening of November 30 through to December 4, with results weighed to reflect the distribution of Canadians by age, gender and region. 

The study noted that last year, 51% of adult Canadians actively browsed and bought – similar to 2013. This year, however, 70% of the adults questions said they participated in Black Friday sales.

While browsers who didn’t purchase remained constant at 24%, the increase in participation came from the 44% who stated that they have bought an item – up from 25% last year.
 
On November 24, we revealed DIG360’s forecast that Black Friday would see a plateau in Canada. Principal David Ian Gray said he was surprised with this year’s increase, and provided the following potential reasons:

  • Black Friday weekend expanded to a full week of deals, providing increased opportunity to participate,
  • Previous early adopters and early mainstream ‘plateaued’, with the late mainstream arriving this year, possibly because of extended buying opportunities,
  • There was an increase in online Black Friday participation (51% bought from or browsed a Canadian website in 2014, up from 42% in 2014)  

The study found that Canadians browsing or purchasing deals from Canadian stores remained constant at 58% for 2015, versus 61% in 2014.  Notably, the actual buyers still tended toward stores, which were the channel participated in by 69% of buyers of Black Friday deals. While online buying is up, a significant proportion of browsing Canadians were on both US (26%) and Canadian websites (63%) without buying.
 
Cross-border shopping remained the same between this year and last, with 8% of respondents making a trip to the United States. DIG360 figures this represents a particular consumer that is out for that “shopping adventure”. This event-driven anomaly stands in contrast to the 34% who report shopping less all Fall at US stores (and only 6% stated they have increased their cross border shopping over this time).
 
Median spend among shoppers questioned was $200, in line with DIG360’s expectations and ahead of 2014’s median of $175. About 46% of respondents stated that they shopped mostly for themselves, indicating that they still have more gift shopping ahead of them. The study also found that about a third (37%) of Black Friday buyers had postponed purchases in anticipation of this sales event.

Finally, the study asked respondents about Boxing Day 2015. Approximately half of Canadian adults said they’d buy on Boxing Day.  This proportion rises to 66% of Black Friday buyers, reinforcing the perception that a core segment of the population are dedicated deal hunters, as these also have a higher likelihood of cross border and US online shopping. Conversely, 50% of Canadians reported that they would not buy anything on Boxing Day this year.

Why International Labelling Standards Would Benefit Canadian Companies Expanding Globally

As Canadian brands and retailers become increasingly international, their products are being purchased by those who speak different languages. Besides potential confusion and mistranslation, individual country-by-country labelling standards are costing those in the industry who do business internationally, according to David Ceausu, President of leading Canadian based global apparel labelling company, Accent Labels
 
Mr. Ceausu noted that if a label reads differently in one country versus another, moving that product to another region could become complicated. Removing the label and replacing it with another takes time and money, not to mention that it could damage the product. Mr. Ceausu explained how international labelling standards and  utilizing symbols instead of words, could eliminate confusion and costs associated with multi-lingual labelling. A hybrid solution could also be acceptable, he said, utilizing localized labelling standards with an international label with easy-to-understand symbols. 

For example, if a Canadian company wanted to sell its wares internationally and a particular style didn’t sell in one country, moving it to another would require replacing labels and tags marked in the local language. Standardized labelling would allow the company to more easily move merchandise internationally, without the inconvenience of relabelling. This applies more to brick-and-mortar retailing,though standardization would also benefit e-commerce, according to Mr. Ceausu,to create consistency. 
 
Furthermore, Mr. Ceausu noted that standardized labelling could potentially eliminate confusion surrounding certain fabrics and other quality indicators. Although Canada’s Textile Labelling Act and the U.S. Federal Trade Commission may be of benefit to Canadians and Americans, countries such as India currently lack similar standardizing regulations. Standardized international labelling would provide consumers with insight into the fabric and care instructions, without the need for translation or for multiple/replacement tagging.

A recent study noted considerable differences among labelling standards, providing suggestions on how to streamline labelling standards for better international product movement. The study provided several potential solutions to try to create some uniformity, including ample use of percentages where appropriate, ASTM and ISO care symbols when possible, and even multiple tags for different country groups. The same study determined that ease of understanding and uniformity would be optimal and where possible, uniform labelling standards should be encouraged.  

Vancouver-based lawyer Ritchie Po noted that there could even be legal implications if mistranslation leads to false advertising or worse, someone is injured as a result of mislabelling. At the very least, mistranslation can lead to embarrassing situations — for example, translating ‘Made in Turkey’ into French could become humorous, if the translation results in the country being identified as a bird (dinde) as opposed to using its correct translation (Turquie). In the world of product labelling, however, humour and professionalism are often mutually exclusive.

As Canadian companies continue to move products internationally, at least partially standardized labelling would be of benefit. Mr. Ceausu explained that his company, Accent Labels, will adhere to any new industry practices that may involve new consistency standards.

 

Prada Colonnade Configuration Revealed

Prada‘s only freestanding Canadian location is expanding, and updates on its landlord’s leasing site shows a two-level retail space more than twice the size of Prada’s existing store. 

Located at The Colonnade at 131 Bloor Street West, Prada will take 7,751 square feet of additional space, according to Morguard‘s website. Prada’s current ground-floor store is 5,889 square feet, according to plans, and the new store will measure 13,640 square feet. 

Prada will occupy second-floor space in part of the former Japan Foundation as well as hallway space formerly leading to Chanel. The 7,400 square foot Chanel store will vacate The Colonnade for an 8,700 square foot location on Yorkville Avenue in early 2017. 

Prada will also open its second freestanding Canadian store in Vancouver next year within The Carlyle retail complex at the southeast corner of Alberni Street and Thurlow Street. Sources say that the Vancouver store will span approximately 8,200 square feet over two floors, in the same complex as De Beers, Tory Burch and a soon-to-open Moncler store

Prada also currently operates several concessions within luxury retailer Holt Renfrew. Sources say that Prada may open an expanded ground-floor concession with a streetfront entrance at Holt Renfrew’s Bloor Street flagship, featuring accessories, footwear and ready-to-wear. The Prada concession within Holt Renfrew’s Vancouver store is expected to expand as the store grows and renovates, and sources at Holt Renfrew say that Prada may also open substantial locations within Holt’s Mississauga Square One location when it opens in the spring of 2016, as well as at an expanded Ogilvy/Holt’s in Montreal in 2017. 

 

Michael Jordan Brand Store’s 1st Canadian Location Revealed

306 YONGE STREET, CIRCLED IN RED. PHOTO: GOOGLE STREET VIEW SCREEN CAPTURE.

*UPDATE: This store opens at 6:23 am on Friday, February 12, and will stay open 24 hours/day until 6:23pm on Monday, February 15 for the NBA Allstar Weekend. Here’s what the store looks like inside: Inside Michael Jordan’s First Canadian Store.

Our Original December article where we broke this story: 

Nike recently announced that it plans to open a Michael Jordan Brand store in Toronto. According to a City of Toronto application, the new store will be on Yonge Street, steps north of Dundas Street. 

With municipal address 306 Yonge Street at Atrium on Bay, the 15,000 square foot Michael Jordan Brand store will locate in a two-level space formerly occupied by fashion retailer Guess, which closed its store last year. Next to Jordan is Forever 21 and across the street is a busy Adidas store. Further south is one of North America’s busiest pedestrian intersections, Yonge and Dundas, with CF Toronto Eaton Centre located immediately to the south. 

CLICK IMAGE ABOVE TO ACCESS CITY OF TORONTO APPLICATION

Plans show a three-level retail space with a basement level dedicated primarily to storage, as well as a hallway for shoppers leading into the concourse level of the Atrium shopping centre.  The store’s ground floor will feature a doorway from Yonge Street, retail space, and a stairway leading to a second level. A 1,200 square foot, 40-person ‘workout space’ will be on the second level, according to plans, as well as retail space, a ‘retail lounge’, and multiple washrooms — three with showers. 

Michael Jordan Brand’s first store opened in late October in Chicago’s Loop. Shoppers began lining up outside the State Street location the night before and remarkably, some shoppers travelled from as far away as Baltimore and Las Vegas to stand in line for the opening. The 36,000 square foot multi-level Chicago store is a partnership with Footaction, featuring a hand-painted mural of Jordan’s dunk from the free-throw line and other artwork dedicated to Jordan. Products in store feature a trademarked Jordan “Jumpman” silhouette, as opposed to the Nike swoosh. 

INSIDE THE CHICAGO STORE. PHOTO: NIKE

In the Chicago store, decor includes game-worn sneakers, murals, and elephant print engraved door handles. The store’s second-level features ‘Station 23’, a 3,400-square-foot gym that is accessible to invited guests only, with an emphasis on young athletes who live in the Chicago area. Those who are granted access may receive exclusive jerseys and have the chance to try out new sneaker models before the general public. Station 23 also includes a customization area that allows customers to personalize apparel purchases. 

MAP: GOOGLE MAPS

There’s no word yet if the 1,200 square foot Toronto workout space will be branded as ‘Station 23’. 

Cadillac Fairview Malls See Success with Enhanced Food Options

Leading landlord Cadillac Fairview is seeing increased sales by adding restaurants and upgraded food components and as a result of these and other property upgrades, its malls are among Canada’s most productive. Finley McEwen, Senior Vice President of Development at Cadillac Fairview, explained how the landlord’s decade-long efforts are paying off and how Cadillac Fairview plans to continue upgrading its dining options to attract and keep shoppers in its malls. 

Several of Cadillac Fairview’s malls made it into Retail Insider’s 2014 list of Canada’s 20 most productive malls, and the same is expected for our 2015 list which will launch next month. This may come as no surprise, as the landlord has been upgrading and expanding its properties as well as adding new tenants. We spoke with Mr. McEwen specifically about Cadillac Fairview’s efforts to enhance its food options, which range from traditional and enhanced food court offerings to full-service, freestanding restaurants.

Mr. McEwen explained how, over the past decade, Cadillac Fairview has been upgrading its food offerings. While some dining areas feature traditional disposable utensils, several of the company’s recent renovations have included upgraded dining halls featuring porcelain dish-ware and full scullery service. Reusable utensils are better for the environment, explained Mr. McEwen, with waste reduction being a goal for Cadillac Fairview. Although scullery service and bussing can be costly and takes extra space, customers generally react positively to the enhanced dining experience.

Cadillac Fairview is also adding full-service restaurants to its properties which will serve not only to bring in shoppers, but to act as destinations unto themselves. We specifically discussed new restaurant offerings at CF Sherway Gardens, which recently revealed an impressive 210,000 square foot expansion. The Keg Steakhouse recently opened in the expansion, and a JOEY Restaurant will open in February of 2016. Cactus Club will open at the centre in 2017, and many are also eagerly anticipating the February 2016 opening of the 5,500 square foot Oliver & Bonacini restaurant within the mall’s newest anchor, Saks Fifth Avenue.

Early next month in Sherway’s new ‘Gourmet Fare’ food court, Bar Freddo Caffe will open a licensed premises serving artisanal Italian cuisine, gelato, and various alcoholic spirits. Mr. McEwen explained how a small, unique, independent tenant such as Bar Freddo is a welcome addition, mixing in with national and international chain tenants. 

Antony Karabus, CEO of leading retail consultancy HRC Advisory, recently commented on how food enhances the mall shopping experience, and how landlords are able to charge higher retail rents as mall improvements lead to more shoppers. Furthermore “These landlords are also spending heavily to add new food experiences, upgrade restrooms and common areas, to create a more luxurious experience to attract the kind of customers that will spend heavily at their tenants,” he said. 

Mr. McEwen revealed that Cadillac Fairview will continue upgrading its properties as well as its food experiences, in an effort to gain shoppers and enhance centre productivity. We expect Cadillac Fairview to dominate next month’s top Canadian mall productivity list, alongside landlords Oxford Properties and Ivanhoé Cambridge.