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Holt Renfrew Closes Three Locations as it Embarks on $300 Million Expansion

By
Craig Patterson
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Over the weekend, Holt Renfrew closed three of its smaller locations. Yesterday (January 25) the luxury retailer closed its Ottawa and Quebec City stores and on Saturday, January 24, Holt’s shuttered its small Winnipeg shopping suite. Holt Renfrew will now focus on operating larger stores in a handful of Canadian cities, as it embarks on a $300 million expansion which will see its square footage increased by approximately 40%. 

Measuring only 33,000 square feet, Quebec City’s Holt Renfrew was located at the upscale suburban Place Ste-Foy shopping centre. Ottawa’s 36,000 square foot downtown Ottawa location was within the CD Howe Building at 240 Spark Street, and Holt’s 2,990 square foot downtown Winnipeg shopping suite (served by merchandise from other stores) was located within the struggling Portage Place shopping centre. 

Holt Renfrew was founded in Quebec City in 1837 and in the 1980’s had three locations in that city. Holt’s first opened in Place Ste-Foy in 1965. Holt Renfrew’s first Ottawa location opened in 1945 when the company acquired Simons Furs. Holt Renfrew’s first Winnipeg location opened in 1910 on Portage Avenue. 

Holt Renfrew is left with eight stores in five Canadian cities. Holt’s Vancouver flagship spans 140,000 square feet, with plans for a further expansion. Its Calgary store measures about 147,000 square feet, while its Toronto flagship measures over 180,000 square feet (excluding a separate 16,500 square foot men’s store up the street). Its Toronto Yorkdale store is about 120,000 square feet and its Square One Mississauga location, opening in 2016, will be about the same size. Holt’s 84,000 square foot Montreal location will close when a merged 220,000 square foot Ogilvy/Holt’s opens in 2017. 

Holt’s will also continue to operate two smaller locations. Company representatives say that its 33,670 square foot Sherway Gardens store in Toronto will remain open, as will its 35,000 square foot Edmonton Manulife Place store. Given that most Holt Renfrew stores will be in excess of 120,000 square feet, however, some analysts question the future of Holt’s Sherway and Manulife Place locations. Regarding Edmonton, Holt Renfrew president Mark Derbyshire said, “While its business as usual for Holt Renfrew Edmonton for now, we continue to explore options to expand our store presence in the Edmonton market.”

Analysts say that Holt’s focus on its larger and more productive locations is partly a response to Saks Fifth Avenue‘s intention to open as many as seven Canadian stores over the next several years, as well Nordstrom‘s intention to open up to 10 Canadian locations. Upscale menswear retailer Harry Rosen also continues to substantially upgrade its fleet of stores, including several replacement locations.

La Maison Simons to Open 2nd Edmonton Store

By
Craig Patterson
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Quebec City-based fashion retailer La Maison Simons will open its second Edmonton location at Londonderry Mall in the fall of 2017. The two-level 88,000 square foot store will replace part of the mall’s current Army & Navy location, as well as occupy space formerly occupied by Sport Chek. Londonderry Mall is undergoing a $130 million overhaul which will see the addition of various new retailers, as well as an innovative rebranding. 

Londonderry will be the third Alberta location for La Maison Simons, following the November 2014 announcement that a 92,000 square foot Simons will open in downtown Calgary in March of 2017. According to CEO Peter Simons, a second Calgary location could also open in the coming years, possibly at Southcentre Mall. 

La Maison Simons has substantial growth plans over the next several years. In an interview with Mr. Simons late last year, he stated that he’s looking to eventually operate as many as 20 Canadian locations. This is remarkable, considering that the brand currently operates nine stores — eight of them in the province of Quebec, as well as a 126,000 square foot location which opened at West Edmonton Mall in October of 2012. 

In August of this year, an 80,000 square foot Simons store will open at Les Promenades Gatineau in metropolitan Ottawa/National Capital Region and in October of 2015, a 100,000 square foot location will open at West Vancouver’s Park Royal. In March 2016, a 113,000 square foot Simons will open at Mississauga’s Square One and in August of 2016, a second Ottawa location, measuring just over 100,000 square feet, will open at Rideau Centre.

Londonderry Mall is in the process of undergoing a $130 million overhaul which will see completely new interiors, innovative new branding, and a variety of new tenants at various price points. The mall’s common areas, mall entrances, flooring, storefronts, escalators, elevators, washrooms, ceilings and seating areas will be fully renovated. A new full-service dining experience will be added, relocating the mall’s existing food court to the west side of the mall. Interior and exterior lighting will be converted to energy efficient LED, and a state of the art security surveillance system will also be added. The project involves a partnership between MMC Architects and GH+A Design. 

The 779,000 square foot two-level Londonderry Mall currently houses about 150 retailers and features anchors Hudson’s Bay (118,000 square feet), Army & Navy (60,200 square feet), Save-On-Foods (38,300 square feet), Winners (31,800 square feet) and Shoppers Drug Mart (17,000 square feet). It boasts in excess of 3,500 parking spaces.

When it opened in 1972, Londonderry was Canada’s largest mall west of Toronto, and the only two-level mall in Western Canada. The 85 store mall was anchored by Eaton’s, The Bay, Woolco, Safeway, and a movie theatre. In 1984, the mall added 65 additional stores and services.

Simons was founded in Quebec City in 1840. The retailer is unique in how it pairs its substantial private-label fashion with a handful of higher-priced designers. Despite its large floorplates, Simons stores lack cosmetics departments and the large footwear areas typical in similar-sized department stores. Simons currently operates nine stores, including eight in the province of Quebec and one in Edmonton. The company has over 2,000 employees.

 

Place Ste-Foy to Undergo $50 Million Redevelopment

By
Craig Patterson
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Ivanhoé Cambridge will invest over $50 million to redevelop and modernize the upscale Place Ste-Foy shopping centre in Quebec City. The first phase will include redeveloping some of the mall’s interior, including a vacant 68,000 square foot space formerly occupied by Les Ailes de la Mode. The mall’s food court will be relocated to the mall’s north wing, and new restaurants and retailers will be added. 

Besides the planned new work, the current replacement of flooring in the mall’s western section will continue. 

The mall will see new Lululemon and Nespresso locations. Several existing retailers will also expand, move or redesign their spaces. Atmosphere will relocate into a space 5,000 square feet larger, and Browns Shoes will undergo a complete renovation. The Gap will be moved and redesigned, and Jean-Paul Fortin footwear will move to a larger space. Délac-table will also move to a newly redesigned location. 

Upscale Place Ste-Foy is one of Canada’a most productive malls, with sales in excess of $665 per square foot annually. The mall sees more than 8.6 million visitors a year and boasts an occupancy rate of over 90%. The 590,000 square foot mall features 135 stores, including upscale shops such as Georges Rech, Steilmann, Rudsak, and La Maison Simons‘ world flagship. On January 25, the mall’s 33,000 square foot Holt Renfrew store will close forever. 

Ivanhoé Cambridge owns both Place Ste-Foy and neighbouring Laurier Québec. The two mall properties span a combined 1.84 million square feet with 369 retail outlet.

*both images are via Ivanhoé Cambridge. 

Edmonton Airport Outlet Mall to be Larger than Anticipated

By
Craig Patterson
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Ivanhoé Cambridge has announced that Edmonton’s Outlet Collection at EIA (Edmonton International Airport) will be larger than expected. The 100-store centre will be 65,000 square feet larger than originally announced, spanning an impressive 415,000 square feet. It will be Edmonton’s first-and-only ‘pure’ outlet centre. 

The enclosed mall will anchor the airport’s Highway Commercial Development project, a plan by EIA to create an expansive shopping, office, entertainment and hotel development adjacent to the Queen Elizabeth II Highway at Airport Road. 

The Outlet Collection at EIA will feature “warm modern fashion-forward districts” and a dining hall within the enclosed “industrial chic” shopping environment.  The property will benefit from two new services: 

1) An airport shuttle service which will provide quick access to airport travellers, including those on longer layovers, and 

2) A parcel storage service to accommodate shoppers who buy on the way through, with a pick-up service on the return leg of their travel. 

“We are very pleased with the momentum of this exciting project, a natural evolution of our Mills and Outlet Collection banners,” declared Paul Gleeson, Executive Vice President, Global Development, Ivanhoé Cambridge. “Based on the overwhelming success of our first Outlet Collection at Niagara, which opened in May 2014, and the Outlet Collection at Winnipeg which is to break ground this coming summer, we look forward to bringing this shopping experience with irresistible outlet brands to the people of the greater Edmonton market.”

We’ll report more on the outlet mall as details become available. 

*All photos via Ivanhoé Cambridge. 

Jaeger-LeCoultre to Open in Vancouver

By
Craig Patterson
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Swiss luxury timepiece brand Jaeger-LeCoultre will open its first Canadian boutique in Vancouver. Located at 1012 Alberni Street, Jaeger-LeCoultre will replace luxury legwear and knitwear brand Fogal of Switzerland, which vacated the small Alberni Street retail space in August of 2014.

Jaeger-LeCoultre is the latest luxury brand to land on Vancouver’s upscale Alberni Street, located at the heart of Vancouver’s ‘Luxury Zone’. Sources say that a number of other world-class brands are seeking retail space in the area, and that a number have already signed leases for retail space on Alberni Street and neighbourhing Thurlow Street, both within The Carlyle retail complex and Bentall Kennedy’s 745 Thurlow tower across the street. 

Founded in Switzerland in 1833, Jaeger-LeCoultre is now a subsidiary of luxury goods conglomerate Richemont. Jaeger-LeCoultre has eight locations in the United States. Of those, four are in the Miami area (Aventura, Bal Harbour, Miami Design District, Palm Beach), and two are in the Los Angeles area (Beverly Hills and South Coast Plaza). New York City and Las Vegas also each have one free-standing Jaeger-LeCoultre boutique. The brand is also carried in upscale retailers across North America.

Jaeger-LeCoultre representatives declined to provide comment for this article, though they confirmed its location. We’ll update this article when we learn of the store’s opening date. 

Innovative ‘No Hidden Retail Markup’ DirectBuy is Revolutionizing Canadian Consumer Spending

By
Retail Insider
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*Disclosure: This article is an advertorial which was paid for by DirectBuy.

With absolutely no hidden retail markup paid by its members, DirectBuy is looking to enhance its Canadian operations to support the company’s desire to grow and innovate in 2015. Instead of adding a profit margin to its vast offerings, DirectBuy makes its money primarily through membership fees that give consumers the ability to shop directly from hundreds of manufacturers and their authorized suppliers. DirectBuy is looking to grow its presence in Canada by offering an expanded assortment of products and services, as well as offering exceptional before and after purchase customer service. We spoke with DirectBuy’s CEO Mike Bornhorst. 

“Membership has its privileges” as some say, and in this case DirectBuy can offer substantial savings, especially to those building, renovating and furnishing their homes. Products such as kitchen cabinets, flooring, high-end appliances, TV’s and audio equipment, furniture and mattresses have substantial markups, especially in Canada. As DirectBuy grows in popularity in Canada, it could seriously gain market share from profit margin-reliant competitors.

Youtube video

In order to shop through DirectBuy, members pay an initial membership fee, followed by marginal membership renewal fees thereafter. DirectBuy also has 12 brick-and-mortar locations in Canada, though for convenience sake many members choose to shop online through the company’s e-commerce site, members.directbuy.com. In order to facilitate online sales, we’re told that DirectBuy has significantly increased its customer service offerings, both with making purchases and with after-sales service. A team of decorators and customer service representatives are on hand to assist members with making purchases and post-purchase customer service is also provided.

Last year, DirectBuy surveyed members to improve its business. What it learned is that members wanted more comprehensive customer service. DirectBuy responded by providing a new customer service team that is available during expanded hours and is trained to help members both before and after purchase. This Member Care Advocacy Team, as the company calls it, is supported by a team of product and design experts who work with members to coordinate designing kitchens, picking colours, and putting together living rooms, for example. DirectBuy gets over 80,000 calls per year now, and the company says member feedback is positive.

Members also asked for a more convenient e-commerce website. DirectBuy responded by investing over $1 million in improvements to its website, such as faster speed and enhanced search capabilities. The website also features a built-in algorithm where products offering members the most savings are shown first. Again, because DirectBuy charges a membership fee and doesn’t include hidden retail mark up in its products, it isn’t motivated by margins or volume sales.

DirectBuy is looking to grow its membership presence substantially in Canada, as well as vastly expand its product offerings. It already boasts about 1 million SKU’s (stock keeping units), versus about 75,000 for an average Walmart Supercentre. Currently focused on home-related products in Canada, DirectBuy is looking to expand into travel, home alarm systems, and possibly even apparel and luxury goods. As many of DirectBuy’s members are value-conscious upper-income Canadians, savings on travel and luxury purchases could also be very substantial.

In addition to the low prices members have access to every day, DirectBuy also works with vendors to offer limited-time price reductions called ‘Club Exclusives‘. These Club Exclusives arrive via email multiple times per work and offer specials on items such as big screen TVs, leather furniture, vacuum cleaners and appliances, and many others.

For those unfamiliar, DirectBuy was founded in 1971 in Indiana, and entered the Canadian market in 1996. It sells products for in and around the home to members with no hidden retail markup. 

*Note: This article is an advertorial which was paid for by DirectBuy. 



 

Saks Off 5th to Open in Ottawa

By
Craig Patterson
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According to the Ottawa Tanger Outlets website, Saks Fifth Avenue Off 5th will anchor the new Ottawa outlet centre. According to staff at Tanger, Saks’ discount store could open as early as this spring. 

Tanger’s website indicates that Saks Off 5th will occupy the mall’s largest space, unit 750. Lease plans provided by RioCan REIT indicate that at least one more anchor space is available, with some speculating that Nordstrom Rack will join Saks in the Ottawa outlet centre in 2017. 

Off 5th is the discount division of luxury department store Saks Fifth Avenue. Off 5th locations are typically in the 20,000 to 35,000 square foot range. According to Hudson’s Bay Company CEO Richard Baker, as many as 25 Off 5th locations could open in Canada over the next several years. 

Saks Fifth Avenue, itself, plans to operate as many as seven Canadian stores. Two Toronto locations are already confirmed: a 150,000 square foot store within Hudson’s Bay at Toronto Eaton Centre, as well as a 130,000 square foot location at Sherway Gardens. Both will feature 25,000 square foot food halls operated by upscale grocer Pusateri’s. 

Hudson’s Bay Company declined to provide comment for this article, or to confirm details of this or other Saks Off 5th store openings. 

Ottawa’s Tanger Outlets opened in October of 2014. The 350,000 square foot centre features about 75 retailers. 

We’ll update you when we learn more on Saks Fifth Avenue Off 5th Canadian store expansion.  

Chapters Books to Close Downtown Vancouver Flagship

By
Craig Patterson
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Indigo Books & Music Inc. has announced that it is closing its massive Vancouver flagship at 788 Robson Street on June 30th of this year. According to Indigo, a “very significant rent increase made continued profitability untenable“. Indigo says it will open another location in the “same Vancouver trade area” this year, though an exact location has yet to be revealed. 

The store opened in 1998, according to PCI Developments. PCI constructed the flagship at the base of an 89-unit residential building called Infinity. 

Indigo says that it will “temporarily transition the American Girl Specialty Boutique” located within. American Girl’s first Canadian location opened in Vancouver’s Chapters in May of 2014, along with a Toronto location at Indigo at Yorkdale Shopping Centre. 

Indigo’s Chief Executive Officer, Heather Reisman said, “As we gain great momentum with Indigo’s transformation strategy we are continuing to review all elements of our operations. With a very significant rent increase recently at our Chapters Robson store, the new terms are simply untenable for us to stay in that location. An increase of this magnitude would quite simply make this vibrant, profitable store unprofitable. As a result, we are actively pursuing another location to serve the Robson trade area which we fully intend to open in 2015. In other key markets we are also looking at new real estate opportunities for Indigo that will best serve our unique needs.”

Chapters’ Vancouver flagship boasts three levels of retail, including a dramatic entrance with soaring ceilings. The ground floor features a Starbucks shop-in-store, while the second level features an 1,800 square foot licensed American Girl doll shop. The store’s third level features wide open spaces with thousands of square feet. 

This follows the closure of Chapters’ Montreal flagship. Spanning about 35,000 square feet, the Montreal store will be replaced by the world’s second-largest Victoria’s Secret location. 

Chapters’ Vancouver flagship is at the southeast corner of Robson Street and Howe Street, across from the main entrance of Nordstrom‘s 230,000 flagship, scheduled to open this September. 

UPDATE: Business in Vancouver reporter Glen Korstrom confirms that FGL Sports has leased Chapters’ Robson Street space. FGL operates such brands as Sport Check, Atmosphere, Sports Experts and others. Although Mr. Korstrom couldn’t confirm which FGL brand(s) will occupy the Robson Street space, we’re told that the Sport Check and Atmosphere will vacate nearby Pacific Centre for an expansion of the mall’s flagship Holt Renfrew.  

King High Line to Transform Liberty Village [With Video]

By
Craig Patterson
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King High Line (Image: First Capital Realty)

First Capital Realty plans to transform Toronto’s Liberty Village area with new retail, housing, and office space, as well as an overhead pathway inspired by New York City’s popular The High Line. The Toronto project’s retail component will include space for a large anchor retailer, as well as several smaller retail spaces. Hundreds of residences will be located directly above. Adding value to this project is the King High Line itself, which will provide accessibility for pedestrians and cyclists from Liberty Village to trendy West Queen West. 

The entire Liberty Village area is under transition, and First Capital Realty will be integral to its future. Much like its plans for Yorkville, First Capital Plans to buy up much of the area’s retail, creating a world-class neighbourhood to live, shop and otherwise enjoy. First Capital certainly has a vested interest in the Liberty Village area, as its corporate headquarters is located on-site. 

Youtube video

The video, above, shows the location and functionality of the King High Line connection. Linking trendy West Queen West to Liberty Village, across King Street West and over the Georgetown rail corridor, the King High Line will connect the neighbourhoods of Parkdale, Liberty Village, West Queen West and King Street west with a cycling and pedestrian bridge, as well as expanded community green space. Starting at Liberty Village near Hannah Street, the King High Line will run over King Street, then along the back of the residential/retail development before rising over the rail corridor and descending at Sudbury Street, just east of Abell Street.

The video below provides details of the configuration of King High Line’s retail, as well as an overall view of the new project. In total, about 160,000 square feet of retail will be built, including space for an anchor which could measure up to 80,000 square feet. 

Youtube video

First Capital partnered with Toronto-based homebuilder Urbancorp for the project’s residential component. About 300,000 square feet of residential space, housing between 450 and 500 condominium and rental units, will be built above the project’s retail component. Formerly named Kingsclub Condominiums, the newly-named King High Line development is being designed by TACT Architecture. A selection of units will be large enough for family living, as the developers recognize that some prefer inner-city living over suburban communities with lengthy commutes. 

Besides retail and residential, First Capital will build about 20,000 square feet of new office space in the area. First Capital already owns about 110,000 square feet of office space in Liberty Village, and it seeks to further enhance the area as not only a place to live and shop, but to create a desirable area for companies to do business. In essence, First Capital is setting out to create a comprehensively integrated neighbourhood where one can work, live and play. 

Target Leaving Canada…Totally Predictable!

By
Retail Insider
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By J.C. Williams Group: 

Target leaving Canada is no surprise. Their stores were a real flop right out of the gate. Since the chain first opened its doors in March 2013, there were all sorts of basic issues: supply chain and empty shelves, dropping a fashion flyer with no advertised items in the store, summer fashion posters still up in November, etc. Behind this was an organization that was siloed—with marketing, merchandising and operations clearly not communicating and totally out-of-sync.

What has always been an amazing situation is that this phenomenal U.S. chain couldn’t even get Retail 101 right in Canada: in the Target store closest to my neighbourhood, the front and forward merchandise areas were empty and the high-traffic fixtures around the escalators were devoted to dollar store items. Even more astounding was the situation when I went to purchase a pair of jeans on the second floor men’s wear department. I was told that there was “no fitting room and that I would have to go to the lower floor women’s wear department.” What? A men’s wear area without fitting rooms? OMG!

We all hoped for an up-beat, creative, contemporary offering. What we got was a mess.

Unfortunately, they won’t be missed—because they never ever really arrived.

Some key learnings from Target:

  • Get the basics right!
  • Don’t be arrogant!
  • Don’t switch your culture!
  • Be nimble—or else!
  • If you have great resources—use them!
  • Never underestimate a competitor!

J.C. Williams Group is a well-known, full-service retail and marketing consulting firm. It offers clients practical, creative, and in-depth knowledge of retailing and marketing, including up-to-date know-how and techniques to make retail operations better and more profitable. You can also read their informative blog, Retaileye, here: retaileye.wordpress.com. 

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