Saks Fifth Avenue‘s off-price division Saks OFF 5TH will open up to 8 Canadian locations in 2016, with plans to open up to 25 locations before the year 2021. Its first three locations were recently announced, and landlords continue to negotiate with Saks Canada-wide. 

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. 

OFF 5TH’S largest location to date is in Stamford, Connecticut, spanning an impressive 56,000 square feet. 

Jonathan Greller, President of Hudson’s Bay Company‘s (HBC) outlet division, told Women’s Wear Daily that Saks OFF 5TH will also open 20 U.S. locations next year, adding to the approximately 90 U.S. stores that it will operate by the end of this year. He also mentioned that the concept could go global, suggesting that Germany could be next following HBC’s recent purchase of the Kaufhof department store chain. 

According to Mr. Greller, Saks OFF 5TH’s real estate strategy extends beyond traditional outlet centres and in some instances, OFF 5TH could locate close to full-priced Saks stores. “Outlet centers are a big part of our go-forward strategy, but we also believe we can be in malls, in downtowns, in lifestyle centers, strip centers — non-outlet centers,” he said. “We think there is a big opportunity to open downtown. We just opened in downtown San Francisco and we opened our first mall store in Stamford, Conn., at the end of June.”

Mr. Greller isn’t concerned about its off-price division taking sales away from Saks’ full-priced stores. “I get real data. I can look at the data every single day and there is almost no cannibalization. Cannibalization is defined as having a customer from Saks Fifth Avenue walking over to Off 5th and never coming back to Saks Fifth Avenue. Our best customers are those that shop all channels,” he told Women’s Wear Daily. He also noted that the OFF 5TH shopper tends to be about 10 years younger than the typical full-priced Saks shopper, and how the off-price division may introduce some Millennials to Saks’ full-priced division. 

New OFF 5TH locations have a more open format and fewer walls, and also carry product not available in full-priced Saks stores.  “It’s easier to shop, you go to your size, you can see up to potentially 200 pairs [of shoes] sitting on the racks, you will see good, better and best price points, all in that size. Customers are buying, three, four and five styles at a time. Our penetration of shoes has more than doubled,” said Mr. Greller. He also explained how about 10% of inventory is clearance from Saks Fifth Avenue stores, with about 70% obtained from vendors and about 20% under its house label. Home products, traditionally only sold online, are being added to Saks OFF 5TH as impulse items at checkouts. These include soaps, small foods and tech accessories. 

HBC also operates two Hudson’s Bay Outlet locations. Its first location opened at Toronto Premium Outlets in August of 2013 and a second location opened at Premium Outlets Montreal in October of 2014. Mr. Greller said that it was ‘too soon’ to discuss what HBC has planned for the outlet concept, though he did indicate to Women’s Wear Daily that there is strategy in the works both for Hudson’s Bay Outlets as well as the four-store Lord & Taylor outlet division in the United States.             

The following infographic by Canadian company SMS Store Traffic (www.storetraffic.com) describes how apps can be used in-store to drive sales. The infographic describes why stores should have apps, and experts also weigh-in. 

On August 22, a unique ‘ecoluxury lifestyle’ concept boutique called THECloset YVR opens in Vancouver. It’s a bold move for the retailer which formerly only sold its wares online. The collaborative initiative will see partnerships with local as well as international designers, creating an experience unlike any other retailer in Vancouver. 

Entrepreneurs Helen Siwak and Vladimiros Xanthopoulos spearheaded the new retail initiative, securing an intimate boutique space at 360 Carrall Street in Vancouver’s Gastown, next to award-winning restaurant PiDGiN. 

THECloset YVR’s story began as a hobby, with its founders selling ‘thrifted’ luxury items on its website KitsilanoKittysCloset.com. The retailer’s exceptionally-curated collections quickly gained a loyal following, resulting in a series of pop-up stores and other temporary brick-and-mortar initiatives. As business continued booming, Ms. Siwak and Mr. Xanthropoulos saw the opportunity to better connect and create lasting relationships by opening a physical store where customers could browse collections at their leisure. The physical store also provides opportunities for events and personal styling. 

Collections will be ‘curated classic’ as opposed to trends, according to Ms. Siwak, with a focus on luxury brands rather than fast fashion. Only about 25% of the boutique’s floorspace is reserved for consignment, with the rest devoted to ‘ecoluxury’. Ms. Siwak explained the concept of ecoluxury and how every garment, accessory and item of footwear has passed through at least one set of hands (making it ecofriendly) while being a luxury item because of its quality and label. The ‘lifestyle’ component refers to all additional complementary products, including vegan grooming products, upcycled/recycled accessories, decorative homewares and artwork, created by artisans living in British Columbia.

 “We definitely saw an opportunity to add ecofriendly philosophy to an upscale resale boutique. Not only do Vancouver shoppers want luxury products but they also desire uniqueness at an affordable price point. They will be able to find this through ecoluxury resale.”  – Helen Siwak

THECloset YVR will also exclusively stock fashions by international designers such as Portland-based Michelle Lesniak (Season 11 winner, Project Runway) and Marita Mamuchashviili (Vancouver Fashion Week, from Tsiblisi, Georgia) and is in talks with Vancouver’s Sea Shepherd Conservation Society to be the only retailer of Sea Shepherd merchandise in Vancouver. In addition to modern luxury designers (including Giorgio Armani, Versace, Gucci and Dior), the boutique will carry pieces by legendary designers such as Mary Quant, Jean-Charles de Castelbejac, Courreges and Alberta Ferretti.

“We view ourselves not just as a resale boutique, but as an eco-shopping experience,” said Ms. Siwak. “Our mission is to provide our clients with a wide range of the highest quality in luxury garments and the opportunity to be assisted by professional stylists in a welcoming atmosphere with value-added services and refreshments.”

Clients will also be able to have their measurements and designer preferences added to the in-house VIP database, shop with the assistance of professional in-house ecostylists, and even arrange to have their purchases delivered to their home or workplace by DailyDelivery.ca the same day. With additional strategic alliances created with other Vancouver entrepreneurs, clients will also receive eco-coupons for Pressed & Proper executive mobile dry-cleaning and Diamond Bright Smile’s tooth whitening service. Consignment clients will have access to complimentary authentication and appraisals through two off-site professionals.

International stylist Dominique Hanke (of HankeStyle and Hive Mind Millinery) has joined THECloset YVR as lead in-house ecostylist. She will take consultation appointments each Monday and private appointments in the evenings for those who wish to purchase one of the various customizable ecostyling packages available.

Other unique features to THECloset YVR will be monthly mini in-store pop-ups by local designers and artists, the introduction of the private fashion lounge club to be named ‘THESalon YVR‘, the presence of a loveable security dog named Snickers (wearing custom upcycled fashion by designer Stevie Crowne), ‘No Tax Tuesday’, ‘Thoughtful Thursday’ charity shopping nights, and a new window display every Monday which celebrates the birth dates of legendary luxury designers.

With the affordable luxury resale market gaining momentum, unique niche market boutiques like THECloset YVR are positioned for expansion/franchising into cities with multiple large chain thrift stores and a strong artisan community to support the businesses. Ms. Siwak says that her company already has plans for expansion into Victoria, BC in late 2016, to take advantage of the city’s lack of high-end consignment boutiques and marketplace for high price point artisan goods.

On September 9 to September 11, VMSD Magazine is holding its 15th annual International Retail Design Conference  at the Hilton Austin in beautiful Austin, Texas. Retail Insider readers are invited to attend and if you use promo-code RETAIL2015 when registering, you will get a $200 discount. 

The conference is a great way to network as well as learn more about industry trends. Session topics include how design impacts ROI and drives growth, what makes a retail brand resonate with shoppers, what it takes to forge long-lasting relationships with customers, what to look for when buying or specifying the latest LED or OLED lighting, how to approach the design of cannabis retail spaces, and more. Seats are filling up fast, and the conference team is anticipating potentially record-breaking attendance numbers. The opening reception is on Tuesday evening, September 8, followed by three days of inspirational sessions, thought-provoking dialogue, roundtable discussions, and an on-site competition entitled the ‘Iron Merchant Challenge’. 

Speakers include design leaders from Toronto-based Cineplex Entertainment, Charlotte Russe, Chute Gerdeman, Dhamani, Kilwin’s Chocolates, Landmark Group, Little, Luxottica, Macy’s, MGM Resorts International, Nebraska Furniture Mart, Popeyes Louisiana Kitchen, Shikatani Lacroix Design, Target, Tempur Sealy International, Vera Bradley and more.

Austin, itself, is an attraction worth visiting. The progressive, young, tech-savvy, entrepreneurial and creative city is also one of America’s fastest-growing. As a result, Austin features many innovative independent retailers, and retail designers are excited to explore Austin’s unconventional retail and entertainment spaces, and to experience its ‘quirky’ culture firsthand. Given its progressiveness, many see Austin as providing a futuristic look at consumer trends, values, and preferences. 

Complete details about speakers, sessions, networking events, sponsors and the conference hotel are available at www.irdconline.com.
 
ABOUT VMSD 
Cincinnati-based VMSD (Visual Merchandising + Store Design) is the leading magazine for retail designers and store display professionals, serving the retail industry since 1922. Every month, VMSD showcases the latest store designs and visual displays, presents merchandising strategies and new products, and reports on industry news and events. Learn more at vmsd.com.

ABOUT IRDC 
Now in its 15th year, the International Retail Design Conference (IRDC) is the premier educational and networking event for the store design and visual merchandising community. Presented by VMSD magazine, IRDC combines educational sessions, roundtable discussions, case studies and networking events into three productive days, drawing 350+ attendees from the U.S. and abroad. Learn more at irdconline.com.

Canadian shopper marketing technology startup Linkett created the following infographic, conveying how North American shoppers use mobile devices in-store. Specifically, Linkett has identified what’s engaging today’s shopper in store, what shoppers are doing on their phones, and where shopping behaviour is going. 

Source: Linkett