Saks Fifth Avenue has launched a Canadian website, featuring renderings of its first two Canadian stores. Although the website is fairly minimal, it provides a glamorous web presence for the retailer’s Canadian brick-and-mortar entry, expected as early as next February. 

Featuring Canadian supermodel Coco Rocha, the Canadian Saks site provides renderings of Saks stores at Toronto Eaton Centre and at Toronto’s Sherway Gardens. Both locations are currently under construction. 

Saks’ 150,000 square foot Toronto Eaton Centre store will span four levels on the eastern side of the Queen Street Hudson’s Bay building Its concourse level will feature a 25,000 square foot grocery floor to be operated by Pusateri’s Fine Foods, while its top three levels will be dedicated to fashion and accessories. We recently wrote an extensive article on how the store will be configured, including a ground-floor restaurant and valet parking on Richmond Street. 

Saks’ 130,000 square foot Sherway Gardens store will be located in part of the retail space formerly occupied by Sears. We’re awaiting further details on the store’s layout, and it’s confirmed that Pusateri’s Fine Foods will also operate a roughly 25,000 square foot grocery department at Saks’ Sherway location. 

Saks has also started advertising management jobs for Saks in Canada. All are in Toronto. 

We’ll continue to update you as we learn more about Saks Fifth Avenue’s Canadian store expansion. 

Despite recent press reporting on numerous Canadian retail store closures and bankruptcies, some retailers are experiencing considerable success. Exceptional customer service is key, as is an integrated cross-channel customer digital and off-line strategy. Retail expert Antony Karabus, CEO of HRC Advisory, a leading retail consulting firm, recently discussed the topic on BNN in the video above.

Mr. Karabus discussed the importance of having a ‘tight’ relationship with customers, while understanding exactly how each customer wishes to interact with the retailer. Exceptional customer service, well-located stores, strong product knowledge, and ease of transaction are key. Mr. Karabus specifically mentioned Lululemon, The Running Room, Canadian Tire, and Harry Rosen as standing out. 

Mr. Karabus discussed Canadian Tire, which he says is probably Canada’s most iconic retailer. Canadian Tire stores are well-located and the brand has worked with the Olympics and Skate Canada, for example, to build brand awareness and create a “key bond” with Canadians. Canadian Tire’s convenience, breadth of product, and top-of-mind awareness has contributed to its exceptional sales growth, he said. 

Mr. Karabus discussed upscale menswear retailer Harry Rosen, and what makes it successful. Mr. Karabus said that trust is key for the male luxury consumer, and Harry Rosen has created it through often multi-decade relationships, as well as offering a lifetime maintenance guarantee on its products.

Mr. Karabus went on to discuss social media and online retail, and how it’s critical for retailers to communicate in the way that customers want, and to be where their customers are. Canadian consumers are increasingly online and millennials, especially, are on social media. Mr. Karabus said that a retailer catering to tweens millennials need to be “ferociously” on social media such as Instagram, for example, to engage with consumers who are already there. 

Speaking to the topic of smaller retailers, Mr. Karabus indicated that he feels strongly that they can effectively compete with behemoths such as Walmart and Amazon.ca with personalized communications regarding merchandise from brands that the boutique owner knows the specific customer prefers. He said that although smaller retailers may not be able to compete with Walmart on price, for example, boutiques would be well served to let customers know when a new product will arrive, tailoring the message to the customer’s preferences. ‘One-to-one’ relationship building can differentiate smaller retailers from Walmart, for example, which is focused on mass appeal not one-on-one service. 

About our Expert: 

Antony Karabus is CEO of HRC Advisory, a leading retail advisory firm. He has advised retailers on strategic and financial performance issues for over 25 years and has assisted numerous North American retailers to create significant shareholder value during this time. Mr. Karabus has advised numerous national retail chains in key sectors, including department store, specialty apparel and hard lines, big box, and grocery. He can be reached at akarabus@hilcoglobal.com.

The following is a list of 28 retailers which are either new to Canada, or expanding their operations nationally. Although some of these retailers have recently been discussed in Retail Insider, most are new and haven’t been revealed until now.

The list is sponsored by Vancouver-based Peregrine, which custom designs and fabricates retail, display, furniture and architectural features for some of the country’s top retailers.

Victoria-based lifestyle brand Sitka is looking to expand its network of brick-and-mortar ‘community centre’ stores nationally, and it’s using a rather unique method to do so. The conservation-focused brand launched a crowdfunding campaign last week with the intent to move the brand into various Canadian markets, while continuing to promote and fund wilderness conservation. We spoke with the company’s co-founder to learn more. 

Founded as a surfboard brand in Victoria, B.C. in 2002, Sitka retails outdoor gear, clothing, and related accessories. The company says part of its mission is ‘wilderness activism’ with a portion of its profits going to conservation. It currently has three brick-and-mortar ‘community centres’, including two in Canada. Last week, Sitka opened its second permanent Canadian location in Vancouver, adding to its existing flagship in Victoria and a location in Auckland, New Zealand.

The 2,100 square foot Vancouver location, which opened on April 20 at 2127 W. 4th Avenue in Kitsilano, features sustainable wood furniture by a local woodworker and an interactive ‘cabin’ where a digital screen displays Sitka’s conservation projects.

The brand reportedly achieved sales of almost $4 million in 2013, with impressive growth forecasts. Besides its three brick-and-mortar stores, Sitka is retailed in over 200 stores across Canada, the U.S., Australia, New Zealand, Germany, South Korea and Indonesia.

We spoke with Sitka co-founder Rene Gauthier. He told us that the company is looking to open its ‘community centres’ in a number of Canadian locations, measuring between 2,000 and 3,000 square feet. Streetfront locations are most ideal, he says, though in some markets Sitka could move into shopping centres if the right opportunities come available. He says that another Vancouver location is likely in the cards and that a location in Whistler, B.C. could be next – depending on Sitka’s crowdfunding success. Future markets on his radar include Calgary, Montreal, and Southern Ontario. Being from Winnipeg, Mr. Gauthier says he’d like to see a ‘community centre’ there some day, as well. 

Mr. Gauthier also mentioned that the company’s goal is for 100% of its clothing products to be made in Canada or the United States by late 2016, up from a current 60%.  

Holt Renfrew will expand its Vancouver flagship to an impressive 190,000 square feet. When completed at the end of 2016, only a handful of North American luxury stores will be larger. The following is our analysis where we also discuss how Holt’s Vancouver location will also feature Canada’s largest leathergoods hall. 

For full details on Holt’s Vancouver expansion, we direct you to this article where we discuss the overhaul which will add about 40,000 square feet, as well as possibly a ground-level Chanel boutique with its own street entrance. 

In our analysis below, we have determined large American luxury retailers to include Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Barney’s New York. We have excluded Nordstrom and Bloomingdale’s, as both carry a considerable amount of mid-range merchandise. 

Only a handful of North American luxury stores exceed 190,000 square feet. These include the following: 

New York City:

• Saks Fifth Avenue: 646,000 square feet,
• Bergdorf Goodman 316,000 square feet, including a 250,000 square foot main store and 66,000 men’s store across the street,
• Barneys New York: 230,000 square feet.

San Francisco, California: 

• Neiman Marcus, Union Square: 252,000 square feet

Beverly Hills, California: 

• Saks Fifth Avenue, Wilshire Boulevard: 285,000 square feet, including a 175,000 square foot east store and 110,00 square foot west store.  

Houston Texas: 

• Neiman Marcus, Houston Galleria: 224,000 square feet
• Saks Fifth Avenue, Houston Galleria: 210,000 square feet, replacement location: 198,000 square feet (opening early 2016)

Dallas, Texas:

• Neiman Marcus, Northpark Center: 218,000 square feet

Atlanta, Georgia:

• Neiman Marcus, Lenox Square: 206,000 square feet

Although Vancouver’s Holt Renfrew will be the chain’s largest when completed at the end of 2016, Holt’s Bloor Street business will technically boast more square footage. The Bloor Street store includes 175,926 square feet at 50 Bloor Street West, about 3,800 square feet on the ground level of 60 Bloor Street West, and an estimated 4,000 to 5,000 square feet dedicated to personal shopping suites upstairs in 60 Bloor Street West. Holt Renfrew also operates a 16,500 square foot men’s store at 100 Bloor Street West, about 500 feet to the west of its 50 Bloor flagship. Therefore, Holt’s currently operates about 200,000 square feet on Bloor Street. The company plans to further expand 50 Bloor and sources at Holt’s say that details are still being finalized.

Furthermore, Montreal will see a 220,000 square foot combined Holt Renfrew/Ogilvy location in 2017, resulting in the closure of Holt’s nearby 84,000 square foot unit. Although the new Ogilvy/Holt’s is expected to carry a substantial amount of luxury product, industry insiders expect it will also carry a substantial variety of more moderately-priced brands. 

Business in Vancouver reports that Vancouver’s expanded Holt Renfrew will feature a 30,000 square foot leathergoods section — triple the size of its current offerings. If correct, it would be the largest department of its kind in Canada, including even those within Hudson’s Bay’s Canadian flagships.