TORONTO EATON CENTRE OPENING, SEPTEMBER 1, 2015. PHOTO VIA TORRID
Popular plus-sized U.S. retailer Torrid plans to open a substantial number of retail locations in Canada, following the recent opening of its first international location in Toronto. We spoke with CEO Lisa Harper to gain insight into Torrid’s plans to dominate Canada’s plus-sized womenswear market, and how recent changes to the company have led to increased success.
Torrid was founded by retailer Hot Topic in suburban Los Angeles in 2001. Torrid quickly grew to become a lifestyle brand, now carrying a wide variety of ready-to-wear (sizes 12-26), footwear, undergarments, beauty products and accessories. The company is particularly known for following the latest fashion trends, head-to-toe. Torrid boasts over 320 stores in the United States and by the end of 2015, it will have opened 80 locations, including five in Canada.
We asked Ms. Harper why she chose Canada to launch Torrid’s international expansion and she explained that about half of all of Torrid’s international e-commerce business was already in Canada. Furthermore, Canadians overwhelmingly requested that Torrid open here and given the success of its stores close to the Canadian border, the company felt it was time to expand beyond the United States.
Torrid’s first Canadian location opened September 1 at Toronto Eaton Centre. Ms. Harper revealed that in October, locations will open at Upper Canada Mall in Newmarket, Ontario, as well as at Vaughan Mills, just north of Toronto. She said that two more Ontario locations will be revealed shortly, both to open this year.
Ms. Harper then went on to say that Torrid will open about 10 Canadian locations in 2016, targeting British Columbia, Calgary and Edmonton. She said that, ultimately, Torrid will look to operate between 40 and 50 locations in Canada, ideally in the 3,000 square foot to 3,500 square foot range. She noted that space in Canadian malls is a bit tighter than in the U.S., so some Canadian locations may be slightly smaller than the typical American Torrid store. Furthermore, markets where Hot Topic is located will generally be first to see Torrid locations, given pre-existing knowledge of those markets. Hot Topic currently operates nine stores in Southern Ontario and Alberta, and about 700 locations in the United States.
Torrid modified its business model about two and a half years ago, according to Ms. Harper, resulting in significantly increased sales. The company became more trend-focused and expanded its offerings, and women were immediately receptive. She explained how fashions are now ‘younger and sexier’, and how the ‘full-wardrobing’ approach had led to increased customer loyalty, prompting the company’s aggressive expansion plans.
Hamilton Ontario-based luxury multi-brand women’s fashion retailer Milli is revamping its operations, including opening a replacement location in Toronto’s posh Yorkville area. We spoke with Milli’s Vice President to gain insight into how the small, independent retailer is beating competition through exceptional designer product curation and personalized customer service.
Milli Gould
Retail store Milli was founded by Milli Gould in 1964 in Hamilton. Ms. Gould traveled to Europe to get the best brands possible, fostering relationships with some of the world’s top fashion houses. Milli’s taste and brand selection soon caught the attention of affluent Toronto women, who would make the 45-minute drive to Hamilton to shop at Ms. Gould’s store. Lunch would be served in the Hamilton store, and women would spend the afternoon shopping for unique pieces from top international brands.
As traffic congestion became increasingly worse in Southern Ontario, however, the trip from Toronto to Hamilton became increasingly arduous. In order to better serve her Toronto clients, Ms. Gould opened a boutique in 2002 at 100 Bloor Street West in the city’s upscale Yorkville area. The 100 Bloor space faces north onto Village of Yorkville Park, with exposure onto Cumberland Street.
Milli Toronto Rendering (Image: Milli)
We spoke with Milli’s Vice President (and son of the founder) Ben Gould, who revealed that Milli has purchased a nearby property to relocate its Toronto operations. Some clients complained that parking and accessibility was a challenge at 100 Bloor, and the new store will feature on-site parking. Located at 231 Avenue Road (corner of Roxborough Street), the new 2,200 square foot two-level Milli location will open this fall. The new store is especially strategic, as it is even closer to affluent clients who live in nearby areas such as South Hill/Casa Loma, Forest Hill and Rosedale. Renderings of the new store in this article are courtesy of STAMP Architecture.
MILLI HAMILTON STORE. PHOTO: WWW.THELABELFINDER.COM
Mr. Gould revealed that Milli’s 5,000 square foot Hamilton store will see changes by the fall of 2016 as the retailer refreshes its existing operations, though details have yet to be finalized. Some new brands may be added to both locations, though Milli’s roster of designers is already impressive. Labels such as Valentino, Alberta Ferretti, Brunello Cucinelli, Erdem, Etro, Lanvin, Missoni and others are carried, with a selection catering to Milli’s fashionable clients. Adding to this is Milli’s exceptionally personalized customer service, resulting in tremendously loyal customer base. Although expansion outside of Toronto and Hamilton is a possibility at some point in the future, Mr. Gould said that his company will first focus on making Milli’s two locations the best that they can be.
La Maison Simons is confirmed to be opening its first Calgary location at The CORE shopping centre in spring of 2017. Simons’ somewhat awkward configuration has been revealed on landlord 20 Vic Management‘s leasing website. Plans show a five-level retail space carved out of a heritage office building and existing retail space and as well, Simons will occupy some of the public corridors which currently provide pedway access to neighbouring Scotia Centre and Hudson’s Bay to the east.
We have provided ‘before and after’ floor plans to each of Simons’ floors in this article. You can click on each plan for a PDF lease plan of the entire CORE centre. The first plan of each floor will be of Simons’ new retail space, followed by a recent plan from the fall of 2014 showing what was there prior. The fall 2014 plans are each marked ‘before’, to hopefully avoid any potential confusion.
In the fall of 2014, we revealed that Simons will occupy five levels (four above ground, one below) within the historical 10-floor Lancaster Building, connected to the CORE on multiple levels. Each of Lancaster’s floorplates are less than 10,000 square feet, hence necessitating annexing adjacent retail space to create the approximately 96,000 square foot Simons store.
Simons at The Core Simons at The Core
Level ‘P1′ (basement, plans above) features about 9,700 square feet of retail space for Simons within the Lancaster Building, including some adjacent storage space. Level P1 otherwise primarily includes parking, loading dock and storage space for other centre tenants. Our best guess is that Simons’ P1 space will be for offices/services/storage, as it appears to lack escalator access.
Simons’ ground floor (plans below) features mall retail space merged with most of the Lancaster Building’s ground floor, with room left for elevators and a lobby to the Lancaster Building upper tower office levels. Simons will occupy mall retail space which, for years, was occupied by TD Canada Trust and some smaller retailers. In total, Simons will occupy about 31,270 square feet at street level, with new escalators to all retail floors above accessed via Simons’ Lancaster Building component.
Simons’ 22,070 square foot second-level (plans below) features space in the Lancaster Building, mall space, and the public corridor currently used to access neighbouring Scotia Centre and Hudson’s Bay via an above-ground pedway (the +15 as it is called, being about 15 feet above the street). It appears that Harry Rosen‘s retail space has been downsized by about 3,000 square feet for the expansion, as evident in the ‘before’ and ‘after’ plans shown below.
BELOW IS THE “BEFORE” PLAN
Simons will occupy about 23,000 square feet on its third level (a.k.a +30 Level, plans below), again merging mall retail space with space in the Lancaster Building and public walkway into Scotia Centre/Hudson’s Bay. A substantial portion of the the hallway beside Harry Rosen will be eliminated for Simons’ expansion. Plans indicate that Harry Rosen’s retail space on this level will remain the same.
Simons’ top floor (Level +45, plans below) will only occupy space in the Lancaster Building, and will measure approximately 9,800 square feet. The adjacent mall level is occupied by the Devonian Gardens.
Several months ago, La Maison Simons President and CEO Peter Simons said that he was interested in opening a second Calgary location at Southcentre though at the time, nothing was confirmed. Given that Southcentre is under the umbrella of Oxford Properties Group, however, it could almost be expected that Simons would join the Calgary mall. By the year 2019, five of Oxford’s 11 Canadian malls will feature Simons as an anchor, including Galeries de la Capitale (Quebec City), Les Promenades Gatineau (opening this month), Square One in Mississauga (spring of 2016), Scarborough Town Centre (2018) and Yorkdale Shopping Centre (2019).
Upscale German women’s fashion brand Marc Cain plans to enter the Canadian market with five free-standing locations, beginning with two stores in the Province of Quebec. The company continues to seek real estate across the country, and it has retained a brokerage to coordinate its Canadian expansion.
Founded in Bodelshausen, Germany in 1973, Marc Cain operates almost 200 stores in 34 countries, as well as over 300 shops-in-stores. The company did sales of 246 million Euros in 2014. Brokerage Oberfeld Snowcap represents Marc Cain in Canada and according to its website, Marc Cain seeks retail space in enclosed malls, outlets/power and lifestyle centres, and urban streetfronts. Stores will ideally be in the 1,500 square foot to 1,800 square foot range, according to Oberfeld Snowcap.
Marc Cain (PHOTO: WWW.BUEHLER-INNENAUSBAU.DE)
Marc Cain’s first two Canadian locations will open on October 1 at Montreal’s Carrefour Laval and Quebec City’s Place Ste-Foy. On October 15, the company will open at Calgary’s Chinook Centre. In early 2016, two Toronto-area locations are confirmed – one opening March 15, 2016 at Mississauga’s Square One and on April 14, 2016 at Toronto Eaton Centre.
Thank you Urban Toronto‘s ACT7 for being a source for this article.
On September 22, the Fraud 360 World Tour comes to downtown Vancouver to deliver a free half-day seminar on their trademark 360° view of fraud. A complimentary continental breakfast and lunch will also be provided. Register quickly because seating is limited.
The seminar will be held at the Hyatt Regency Hotel, located at 655 Burrard Street. Bring your notepad and questions and learn from fraud experts about current data, global trends, changes in Payment Card Industry compliance and future forecasting affecting transactions.
Schedule:
8:30 am – Registration / Breakfast 9:00 am – Sessions 1 & 2 10:30 am – Break 10:45 am – Sessions 3 & 4 12:15 pm – Lunch / Q&A
Sessions will provide an overview on timely topics and best practice standards that you can adapt to your business.
1) Cross Border – Out of the country, Out of control
Speaker: Steve Casco, Chief Executive Officer, CardNotPresent.com Steve Casco explores the opportunities and challenges inherent in selling globally. Hear about the rise of Asia and an opportunity gap your business could exploit, how mobile is driving cross-border sales and how finding the right partners can grease the rails of international expansion.
2) Staying Out of Chargeback Hell
Speaker: Don Bush, Vice President of Marketing, Kount Chargebacks are the number one indicator of a fraud problem, but the way chargebacks are reported to merchants makes it difficult to determine how and why they occurred. We’ll review common symptoms of fraud that can cause chargebacks and best practices to avoid them in the future.
3) Merchant Case Study: Fraud in the Omni-Channel, The Source
Speaker: Greg Coles, Director of E-Commerce Operations, The Source Electronics For almost 23 years, Greg has been a part of The Source, working with fraud detection for the last 8 years. Greg has seen his company adapt and innovate to the changing environments, including the migration to E-Commerce and Mobile purchasing. His breadth of knowledge and experience is beyond reproach and will provide a unique insight into the fraud landscape for a successful heavily targeted Omni-Channel retail business.
Given the usefulness of the topics and the fact that it’s free, available spaces will fill up quickly. Register now and reserve your space at Fraud 360™ in Vancouver.
Whistler Creekside Village shops with shoppers and children (Image: Dave Steers Photography)
A particularly ‘Canadian’ retail centre is being re-merchandised in Whistler, British Columbia. Called Whistler Creekside Village, the 66,000 square foot centre will focus on independent retailers and emerging concepts, as opposed to multinational chains. Given that rents are about a quarter of what’s charged in nearby Whistler Village, and given its exposure to affluent locals and visitors, some retailers may find Creekside to be strategic and profitable.
Technically, Creekside isn’t a new phenomenon, given that it was Whistler’s initial townsite. Whistler Village relocated to its present site in the 1960’s, while Creekside Village continued to serve locals. Retail repositioning plans are now underway, recognizing Creekside’s strategic location at the entrance to the Whistler area from Vancouver.
Image: Whister CreeksideImage: Whister Creekside
The area’s market size is estimated to be 200,000 annually (including visitors), in effect making it one of B.C.’s largest retail trade areas. Four upscale hotels are nearby, boasting 350 rooms and 1,750 ‘pillows’. Visitors are estimated to spend $350 daily per person, providing lucrative opportunities for retailers. In total, an estimated 2.7 million unique visitors come to the four-seasons destination region, with 60% of those visiting during the summer season, providing year-round revenue opportunities.
Whistler Creekside Village (Image: Dave Steers Photography)
The area is also home to about 10,000 full-time residents, 2,700 annual transient workers and 11,500 second-home owners. Creekside’s adjacent residential areas are also among the most exclusive in the region, featuring multi-million dollar homes and even a residential area accessed via gondola.
Image: Whistler Creekside Village
Creekside Village is seeking to differentiate from Whistler Village by being “totally unique and/or uniquely Canadian”, according to Retail real estate consultant Peter Morris of Greenstead Consulting Group. The 66,000 square foot centre boasts over 1,400 free surface and underground parking stalls, as well as heat-traced pedestrian walkways laid out in an easy-to-navigate, intimate village stroll. Existing tenants include a full-service grocer (Creekside Market), a B.C. Government Liquor Store, Scotiabank, Starbucks, CAN-SKI and other resort amenities. Canadian retailers and those carrying Canadian products (local diamonds, for example) will be considered first, as the centre looks to create a localized tenant mix which is unique to the area. Priority uses include the following:
-‘Signature’ style full service restaurant with lounge, -craft brew gastropub, -unisex adventure wear or resort wear, -personal services, -quick food service, -healthy food service, -unique gifts, -art gallery, -jeweller, and -salon and spa.
Pricey Italian luxury brand Stefano Ricci will open its first free-standing Canadian store next spring. The franchised location will be next to Vancouver’s Trump Tower on the 1100 block of West Georgia Street, in the city’s rapidly expanding downtown ‘Luxury Zone’.
Founded as a tie manufacturing firm in Florence (by designer Stefano Ricci) in 1972, the family-run company strives for quality to the point of perfection, with prices to match. Attention to detail is key and the brand only uses the finest leathers, skins and fabrics. It retails menswear (including suits, dress shirts, jeans, polo shirts, casual wear and neckties), accessories (including leathergoods and cufflinks), fragrances and home goods such as porcelain and crystal dinner services, silverware and luxury linens. Prices can climb well into the thousands, with bags in exotic skins retailing for close to $50,000. The brand currently operates two North American locations, in New York City and Beverly Hills. The remainder of its stores are in Europe, the Middle East and Asia.
Stefano Ricci (PHOTO: WWW.HANWHAGALLERIA.CO.KR)
Operated by franchisee Manuel Bernaschek, owner of Showcase Pianos, the 2,600 square foot Vancouver Stefano Ricci store will join other new luxury retailers in the area including Prada, Versace, Brunello Cucinelli, Moncler, Jaeger-LeCoultre, and others. Stefano Ricci will be slightly removed from the rest of these luxury brands, though more similar retailers may now choose West Georgia Street after Ricci’s recent lease signing.
SCREEN CAPTURE, STEFANO RICCI WEBSITE
HRC Advisory President Farla Efros explained how Vancouver’s wealth (including many high net worth individuals), coupled with the city’s designer-driven Asian population and tourism, make Vancouver an ideal spot for Stefano Ricci’s third North American store. Vancouver is increasingly becoming known for its sophisticated luxury clientele, according to Ms. Efros.
STEFANO RICCI
Sources say that the Canadian franchisee could eventually look to open a second Canadian Stefano Ricci location in Toronto, though there are no immediate plans.
Thank you Helen Siwak, owner of ecoluxury retailer THECloset YVR, for being the source of this tip.
REISS AT TORONTO EATON CENTRE LOCATION. (PHOTO: REISS)
A favourite of Princess Kate Middleton Duchess of Cambridge, British fashion brand Reiss plans to expand across Canada. The retailer has signed a number of free-standing store leases and it has also struck a concession partnership with Hudson’s Bay.
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.
REISS CREATIVE DIRECTOR JAMES SPRECKLEY AND INTERIOR DESIGN AGENCEY, D-RAW WERE BEHIND THE TORONTO STORE DESIGN CONCEPT. RENDERING: REISS
Reiss has chosen Toronto as its Canadian launchpad. Its first Canadian location, measuring about 2,500 square feet, opened late last month at Toronto Eaton Centre. According to the company, two Toronto locations will follow in 2016 — at Yorkdale Shopping Centre and Sherway Gardens.
Reiss has also partnered with Hudson’s Bay. This month, Reiss opened men’s and women’s concession within Hudson’s Bay’s Queen Street/Toronto Eaton Centre flagship. The company says that other concessions could follow as it continues to examine opportunities.
Longer term, Reiss has big plans for Canada. According to a company representative, Canada is “an exciting new market for Reiss, and we are already looking at opportunities to extend our store, online and concession offer.” The company also said that it is examining a number of cities to possibly open free-standing stores, including Vancouver, Montreal and Calgary.
PHOTO: REISS
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.
NEW STORE DESIGN RENDERING VIA HUDSON'S BAY COMPANY/SAKS FIFTH AVENUE
Saks Fifth Avenue‘s off-price division Saks OFF 5TH will open its first Western Canadian location at Calgary’s CrossIron Mills. Opening in September of 2016, the 30,000 square foot store is the fourth Canadian location confirmed by Saks, which plans to operate up to 25 OFF 5TH locations in Canada over the next five years and open as many as eight locations in 2016.
The store will reflect OFF 5TH’s redesigned aesthetic, which features an open and modern layout. The store will carry more than 800 brands, according to Saks. New arrivals will be shipped to the store daily.
CrossIron Mills is Calgary’s only outlet concept. The 1.2 million square foot centre sees about 9 million visitors annually and has yearly sales of in excess of $300 million.
RENDERING VIA HUDSON’S BAY COMPANY/SAKS FIFTH AVENUE
Saks OFF 5TH’s first Canadian locations will include a 28,000 square foot location at Tanger Outlets Ottawa, a 32,500 square foot store at Outlet Collection at Niagara in Niagara-on-the Lake, Ontario, as well as a 35,000 square foot location at Vaughan Mills, just north of Toronto. All locations will open in the spring of 2016, along with full-priced Saks Fifth Avenue stores at Toronto Eaton Centre and Sherway Gardens.
SAKS FIFTH AVENUE AT HUDSON'S BAY QUEEN STREET (RENDERING: HUDSON'S BAY COMPANY)
Saks Fifth Avenue‘s Canadian flagship brand mix is almost set and according to company president Marc Metrick, it will feature “a designer assortment worthy of Saks at its best”. Mr. Metrick also revealed that Saks’ Toronto flagship will be 20,000 square feet larger than originally anticipated, though still smaller than Holt Renfrew‘s Canadian flagship. We spoke with HRC Advisory president Farla Efros to get her opinion on the luxury label wars in Canada, including why Holt Renfrew will particularly be affected by Saks’ successes.
Saks’ Canadian flagship is scheduled to open in early 2016 at Toronto Eaton Centre, occupying four floors at the eastern end of the mall’s Hudson’s Bay building. We recently did an in-depth article describing the store floor-by-floor, including its basement-level food hall to be operated by Pusateri’s Fine Foods.
NEW PEDWAY LINKING TORONTO EATON CENTRE WITH SAKS/HUDSON’S BAY. RENDERING: HUDSON’S BAY COMPANY
SECOND-FLOOR ENTRANCE VIA EATON CENTRE PEDWAY, SHOWING SAKS ON THE LEFT AND FRONT, HUDSON’S BAY ON THE RIGHT. RENDERING: HUDSON’S BAY COMPANY
Mr. Metrick recently told Women’s Wear Daily: “I feel really good about the brand lineup that we are going to have at the Queen Street store. It’s pretty much set. Our designer ready-to-wear lineup is flagship level, as is leather goods. It represents what Saks stands for.” Mr. Metrick expressed that it is premature to disclose the labels, though he indicated that Saks’ success in securing brands was at odds with Holt Renfrew, which continues to make efforts to fortify its luxury dominance in Canada.
SAKS/BAY GROUND-FLOOR QUEEN STREET ENTRANCE. RENDERING: HUDSON’S BAY COMPANY
Mr. Metrick also revealed that Saks’ Toronto flagship will measure an impressive 170,000 square feet, with sales volumes anticipated to be similar to the company’s Bal Harbour (Florida), Boston, Beverly Hills and Chicago locations. If accurate, Saks’ Canadian flagship could see sales in excess of $100 million annually which would be remarkable, considering that about five years ago the massive Queen Street Hudson’s Bay saw annual sales of about $140 million.
HOLT RENFREW’S CANADIAN FLAGSHIP AT 50 BLOOR STREET WEST IN TORONTO. PHOTO: CONDOPULSE.CA
Holt Renfrew’s 50 Bloor Street West flagship measures just under 180,000 square feet in size, according to landlord Morguard. Holt’s Bloor Street overall presence is larger, however, taking into account 3,800 square feet occupied on the ground floor of the adjacent 60 Bloor Street West building, Holt’s personal shopping suites upstairs in the 60 Bloor tower, and the recently opened free-standing 16,500 square foot Holt Renfrew Men’s store at 100 Bloor Street West. In total, Holt’s occupies an estimated 205,000 square feet along Bloor Street West, and it has plans to expand its current flagship over the next several years.
GROUND-FLOOR SAKS/BAY CONCIERGE. RENDERING: HUDSON’S BAY COMPANY
Not long after Hudson’s Bay Company purchased Saks, buzz had it that Saks would become ‘more luxurious’, including higher pricepoints on a variety of designer products. Mr. Metrick presented a somewhat different point of view to Women’s Wear Daily, saying: “Elevating product doesn’t mean going back to the old nine-box grid, and doesn’t mean focusing on the top of the pyramid. It means delivering fashion. It means delivering quality. It means delivering the product people want”.
In early 2016, Saks will open a second Canadian location at Toronto’s Sherway Gardens. Saks is expected to eventually operate seven Canadian locations in Toronto, Montreal, Vancouver and possibly Calgary. As well, the company intends to operate approximately 25 of its off-price Saks OFF 5TH outlets in Canada, with eight locations expected to open next year.
SAKS ‘PUSATERI’S THE FOOD HALL’. RENDERING: HUDSON’S BAY COMPANY
Farla Efros, expert and President of leading retail consultancy HRC Advisory, explained how Saks’ strong, long-term relationships with brands in the U.S. likely helped secure top labels for its Canadian stores. She said that Saks will look to carry similar brands in its Canadian and American stores, so as to not potentially alienate Canadian shoppers who are familiar with Saks in the United States. Ms. Efros also said that that although Holt Renfrew is updating its stores and related operations, the size of Holt’s overall business isn’t large enough to maintain exclusive distribution of some of its top designers — unless Holt’s commits to certain dollar volumes for these brands, which is challenging. As a result, Ms. Efros indicated that it’s no surprise that Saks was successful in its endeavours to secure top brands in Toronto.
In light of the new competition, Ms. Efros painted a particularly challenging picture for Holt’s. She explained how for decades, Holt Renfrew has been the ‘only game in town’, outside of luxury brands’ free-standing stores. She discussed how brand exclusivity has been paramount to its success and now that Nordstrom and Saks Fifth Avenue are expanding into Canada, Holt’s will need to differentiate itself with better customer service and an enhanced online presence. Holt Renfrew’s ecommerce operations are minimal, though it plans to launch an enhanced website in the coming months. Holt’s will have to evolve its operations across all channels, according to Ms. Efros, as both Saks and Nordstrom will be aggressive in targeting the high-end Canadian consumer — Holt Renfrew’s core shopper.
