All of Canada’s large-format IKEA stores are currently located in the suburbs. Although the Swedish retailer will be testing small-format pick-up and order stores in several new Canadian markets, none are planned for downtowns, according to the company’s Canadian president Stefan Sjöstrand. This is a missed opportunity, according to one retail expert, as Canadian downtowns continue to thrive with the addition of thousands of new residents annually. 

Mr. Sjöstrand spoke at the Toronto Board of Trade last week, where he discussed the company’s plans for Canada. Included will be a doubling of its Canadian store count over the next 10 years, primarily through smaller-format pickup and order locations. IKEA is already seeing tremendous success in Canada, with annual sales of $1.795 billion at its 12 existing stores, plus an additional $103 million in e-commerce. 

IKEA’s full-sized Canadian stores average a whopping 323,000 square feet, with new pick-up stores to be in the 20,000 to 40,000 square foot range. All stores, including recently announced pick-up locations, will be in automobile-dependant suburbs. 

Paul Amato, a retail industry expert with a specialty in Geographic Information Systems  (GIS) attended the Board of Trade breakfast and asked Mr. Sjöstrand about his plans to open in urban cores. Mr. Sjöstrand explained that the company will monitor urban store initiatives in Hamburg, Germany and in Copenhagen, Denmark, and that it has no immediate plans for more downtown locations. 

Mr. Amato says that this is a missed opportunity for IKEA, especially given the retailer’s product offerings. Much of IKEA’s furniture caters to small-space living, and the retailer’s innovative storage solutions are geared towards small space efficiency. Canadian downtowns are seeing a residential renaissance with Toronto and Vancouver, especially, seeing substantial condominium and rental tower construction. Many of the new units are small, requiring efficient space utilization. 

Mr. Amato thinks there is definitely an opportunity for IKEA to open smaller downtown ‘Citystores’, adapted to reflect the needs and requirements of Canadian urban dwellers. These would operate primarily as showrooms and design innovation centres and would feature edited selections of furniture and housewares, complemented with speedy home delivery. Downtown IKEA stores would also be frequented by office workers, and some downtown businesses clients may also utilize the new urban stores out of convenience.

Mr. Sjöstrand told Mr. Amato that about 80% of shoppers arrive at IKEA’s new downtown Hamburg store by transit, bicycle and on foot, with substantial increases in services such as home delivery and and product setup and installations. The 194,000 square foot three-level Hamburg Citystore also offers vending machines selling spare parts, and customers can borrow bicycles with large integrated carrying platforms to bring purchases home — reinforcing IKEA’s commitment to service and accessibility. 

Similar retailers to IKEA are succeeding in Canada’s urban cores, with some operating substantially-sized stores. Costco, for example, opened its wildly successful 127,000 square foot store in downtown Vancouver in the fall of 2006, boasting covered vehicle parking in a city known for rain. Canadian Tire opened a large location at CF Toronto Eaton Centre the same year, along with Best Buy, at the base of an expansion that included Ryerson University above. Home Depot also recently opened a multi-level store in Chicago’s Lincoln Park area, featuring two levels and 91,000 square feet of retail with 10,000 square feet of offices and and 102,000 square feet of parking above. 

If IKEA were to operate smaller urban locations, Mr. Amato explained that it would be possible to find stacked retail space up to 150,000 square feet. Downtown Vancouver, for example, has several development proposals that could see IKEA as an anchor, and downtown Toronto has numerous opportunities for an IKEA Citystore. Mr. Amato noted that IKEA could locate in one of the new developments in Toronto’s expanding eastern waterfront, for example. 

IKEA isn’t the only retailer that could see profits from opening in Canadian downtowns. Several months ago, we consulted with Mr. Amato on a study about urban grocery store expansions for the University of Alberta School of Retailing Department of Applied Research. Mr. Amato noted that national grocery chains are seeing increased sales from locals who shop on foot, and how more retailers should be addressing the urban dweller as Canadian demographics shift and cities change. 

Nike plans to open its new Michael Jordan Brand concept store in Canada, following the launch last week of the brand’s first location. Located in Chicago, the flagship capitalizes on the mystique of the former Chicago Bulls star. Products in store feature a trademarked Jordan “Jumpman” silhouette, as opposed to the Nike swoosh.

Shoppers began lining up outside the 32 South State Street Chicago location the night before it opened. 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 store is a partnership with Footaction, features a hand-painted mural of Jordan’s dunk from the free-throw line and other artwork dedicated to Jordan. All of the product in the store has “been curated and chosen specifically by Michael,” according to Sarah Mensah, general manager of Jordan Brand North America. 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 will be 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 anyone else. Station 23 will also include a customization area that allows customers to add a personal twist to apparel purchased in store via patches, graphics, and more. 

Nike says it plans to open a Jordan Brand store in Toronto, as well as in New York City and Los Angeles. Nike hasn’t indicated if the Toronto location will be nearly as large as the Chicago store, or if it will feature Station 23 and other features. 

A source at Nike indicates that successful operations could see the concept roll out across North America.

Jordan Brand will also begin making footwear for women, according to Nike. Currently, women’s goods on the brand’s website are limited to bags, hats, visors, handbags, scarves and socks. 

All photos courtesy of Nike.

Montreal-based women’s fashion retailer Reitmans launched freestanding locations for its Hyba activewear line last month, conveniently placing them in former Smart Set locations. We interviewed a company representative to learn more about plans for the brand’s expansion, as well as how Hyba addresses a ‘white space’ in Canada’s activewear market. 

Jeannie Vondjidis-Miller, VP of marketing and visual presentation for Reitmans and Hyba, explained the concept as a well-priced, high-quality line of women’s activewear that saw initial success within Reitmans’ stores. The line, which launched in Reitmans stores about two years ago, responds to a need in the marketplace for style-focused yet affordable activewear that fits women in a wide range of sizes. Hyba speaks to women who are seeking to become more active without the pressure of becoming a ‘top athlete’, and is meant to encourage movement, fun and health. It offers a range of activewear apparel and accessories, including dry wicking performance gear, yoga attire, and style-focused athleisure looks. Sizes range from 2 to 20 — broader than competitors, and prices are mid-range with tops priced between $28 and $34, and bottoms priced $38 to $44. 

Hyba store interiors feature a combination of bright colours and soft wood, creating positive space that encourages activity. 

Last year Reitmans announced that it was shuttering its Smart Set banner of stores. A total of 17 former Smart Set locations were selected to be converted to the Hyba banner, and these locations have been opening over the past several weeks. Stores are located coast-to-coast, from Nova Scotia to British Columbia. Hyba Flagships are at CF Carrefour Laval and CF Galieries d’Anjou in suburban Montreal, and at CF Markville in Markham, Ontario. 

Ms. Vondjidis-Miller explained that Hyba plans to open more Canadian locations, and that it will do so carefully as the right real estate becomes available. Enclosed shopping centres are currently the brand’s target, though that could change as Hyba expands.

Activewear is the fastest-growing category in apparel today, according to Farla Efros, President of leading retail consultancy HRC Advisory. She explained how the yoga pant has ‘taken the market by storm’, and how they have replaced jeans in many respects as the ‘new black pant’. She noted how higher-end yoga pants average about $100 a pair, and that Reitmans could see tremendous success from the value-priced concept. Ms. Efros went on to say that Hyba could invigorate Reitman’s operations as a whole, leading the company to stronger sales and increased profitability. 

Popular European casual menswear brand JACK & JONES has opened a flagship location in Vancouver’s CF Pacific Centre. It is the fourth location in the Lower Mainland for the retailer, and its first in downtown Vancouver. 

The new store is located on the mall’s lower level adjacent to the recently opened expansion below Nordstrom. Prior to JACK & JONES, a Sony Store occupied the 2,521 square foot space. The location is strategic, being adjacent to CF Pacific Centre’s Canada Line Skytrain entrance, as per the mall map below. 

The CF Pacific Centre JACK & JONES flagship features the brand’s five sub-brands: JACK & JONES VINTAGE CLOTHING, PREMIUM by JACK & JONES, ORIGINALS by JACK & JONES, CORE by JACK & JONES and JACK & JONES TECH. All lines reflect current trends and are designed by independent design teams, featuring a full range of clothing, accessories and footwear. 

The location also sells some styles that are exclusive to JACK & JONES flagships such as those at CF Carrefour Laval in suburban Montreal, as well as at West Edmonton Mall. 

The store’s interiors feature grey stone flooring, rugged wood trim, and overhead lights that contrast with the store’s dark ceilings. The overall feel is subdued and masculine, with each of the JACK & JONES lines featured in their own dedicated sections. 

JACK & JONES’ other Lower Mainland locations include CF Richmond Centre in Richmond, Metropolis at Metrotown in Burnaby, and Guildford Town Centre in Surrey.

Founded in 1990 by family-owned Danish multi-brand company BESTSELLER, JACK & JONES is one of Europe’s leading menswear producers. It has more than one thousand stores in 38 countries, and JACK & JONES clothes are sold by thousands of wholesale partners all over the world.