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Giorgio Armani to open 1st Canadian outlet

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Giorgio Armani‘s first Canadian outlet opens late next month at the Toronto Premium Outlets. Armani is currently recruiting management and staff for the new store, and will be holding a job fair towards the end of this month. Armani’s Toronto outlet could be the first of multiple Canadian locations, as it rolls-out the concept throughout North America. We consulted with a retail expert on the new store, who explained how Armani must maintain exceptional customer service and merchandising so as to not devalue its brand.

Reviewing Giorgio Armani’s career website, it seems to suggest that the brand is growing its outlet store division, with several new US locations. Giorgio Armani has 46 outlet stores worldwide, including 10 US locations. As many as four new American outlets could open by this fall, from what we see on the website. 

Sources at Giorgio Armani’s corporate office in New York City wouldn’t confirm what collections will be carried at Toronto’s outlet store, nor where the product would come from. In Canada, Giorgio Armani’s pricey Black Label women’s collections are currently carried in shops-in-stores at Holt Renfrew in Toronto, Montreal and Vancouver. The Black Label men’s collection is carried in select Harry Rosen stores. Its less expensive Armani Collezioni, Emporio Armani, Armani Junior and Armani Jeans lines are carried at various retailers in Canada. As well, Canada is home to 12 A/X Armani Exchange locations, the company’s least expensive label. 

Sources speculate that Toronto’s Armani outlet could be the first of multiple Canadian locations. Currently under construction and scheduled to open this fall, the Montreal Premium Outlets will feature upscale outlets including Max Mara, Ralph Lauren and Coach. Vancouver’s luxurious McArthurGlen Designer Outlets are scheduled to open in the spring of 2015, and is the first North American project for the British-based outlet developer. We can’t confirm if either will house Armani outlets, at this time. 

Retail expert Suzanne Sears, owner of Best Retail Careers International Inc., provided us with an excellent analysis of Armani’s first Canadian outlet. Ms. Sears says that the success of Armani’s outlet store will partly depend on which, if not all, Armani banners are included in the store. The challenge for Armani’s outlets, according to Ms. Sears, is to find the local ‘Euro street style’ shopper who isn’t already buying Giorgio Armani either at full price on Bloor Street, in major malls, or on their travels abroad. These consumers are likely familiar with what Armani fashions are from what season, and their time is as valuable as any potential outlet discounts. If an Armani outlet doesn’t deliver, it risks devaluing the entire brand. 

Ms. Sears says that Armani cannot compromise on service and presentation, if it wants its outlets to succeed. Some brands, according to Ms. Sears, believe that that lower outlet prices mean that they can hire less experienced staff, as well as pay less attention to the presentation of the outlet’s merchandise. Ms. Sears says that a top complaint from many outlet mall shoppers, when shopping for luxury brands, is that they want value without compromising the quality of display and service associated with the brand, right down to the packaging of the product. Ultimately, she says: “Armani is a brand people respect and want to own. If they are able to deliver a full service experience and hire and train top people, they should do very well.”

Today’s retail news from around the web: July 14, 2014

Our article of the day: 

Giorgio Armani to open 1st Canadian outlet

 

Top Stories – Canada: 

Women’s clothing retailers face tough year, more bankruptcies: analysts [Huffington Post]

Infant formula bottles with broken seals prompt food safety warning.
Canadian Food Inspection Agency issues warning after containers found with tamper-proof seal broken [CBC]

Review: BMW’s all-electric i3 now in Canada, offering good range at a reasonable price [CTV]

How American Apparel fell into ‘dangerous trap’ of retail expansion hype [Financial Post]

Canadian News – Region-By-Region:

Construction to revamp Ste-Catherine St. worries merchants [CBC Montreal]

Bilingual signs aim to attract wider range of customers to Vancouver’s Chinatown grocers (with video) [Vancouver Province]

Update on Ottawa’s Lansdowne Park (including a retail component, anchored by Winners) [Ottawa Citizen]

Student’s business plan turns into a pop-up bike store at The Forks market in Winnipeg [Winnipeg Free Press]

Eaton family member creates a scarf line referencing the former Canadian retailer [National Post]

Dov Charney’s American Apparel fate hinges on three unknown directors: Chain’s reshaped board will evaluate the findings of a probe into his conduct and vote on his fate [Montreal Gazette]

Wal-Mart offers lower prices to online customers [Retail Dive]

Walmart Sees Gold in Small Neighborhood Grocery Stores [Triple Pundit]

Gap Store Sales Unexpectedly Fell In June [Business Insider]

Amazon seeks delivery drone permission from FAA [CBC]

Interesting Articles: 

69% of shoppers would switch brands to earn points [Fierce Retail]

Shopping Cart Abandonment: Online Retailers’ Biggest Headache Is Actually A Huge Opportunity [Business Insider]

Burberry shareholders revolt over pay package for new CEO Christopher Bailey [CTV]

Seattle’s First Legal Pot Shop Runs Out Of Marijuana [Huffington Post]

Levi’s jeans struggles to find its identity in a saturated denim market [Business Insider]

Interview: DSW Designer Shoe Warehouse’s Canadian expansion

Image: DESIGNER SHOE WAREHOUSE.

We interviewed Town Shoes President and CEO Bruce Dinan about DSW Designer Shoe Warehouse‘s Canadian store expansion. In April, DSW bought a 49.2% stake in Town Shoes, paving the way for DSW’s entry into Canada. Mr. Dinan says that DSW stores will eventually roll-out across the country, and that its Canadian stores will essentially be the same as those in the United States. Its first two Canadian locations open early next month and, later, DSW will launch its Canadian e-commerce website. 

DSW’s strategy for entering Canada is initially a cautious one. Its first two locations, both in suburban Toronto, will test the market before it opens other Canadian stores. DSW will ensure that these first stores are able to provide the same quality experience of its US locations and once confident enough, DSW will open stores Canada-wide. Its first two Canadian locations open August 7th at Heartland Town Centre in Mississauga, and at Woodland Hills Shopping Centre in Newmarket. 

According to Mr. Dinan, DSW’s Canadian stores will be about the same size as its American locations. Its first two Canadian stores, both about 20,000 square feet, are only slightly smaller than DSW’s average store size of 22,000 square feet. DSW ultimately seeks Canadian retail space in the 18,000 to 24,000 square foot range. 

Although DSW’s first two Canadian stores are suburban, Mr. Dinan says that he isn’t averse to opening inner-city locations, provided that the right space becomes available. In the United States, DSW has urban locations in areas such as San Francisco’s Union Square, Washington DC’s Georgetown, Downtown Boston, as well as several Manhattan stores. In Canada, busy centres such as Downtown Toronto and Vancouver could therefore house urban DSW stores.

Buying Town Shoes was a strategic move on the part of DSW. Not only does DSW gain Town Shoes’ Canadian market expertise, it also secures its pre-existing national distribution network. Mr. Dinan says that as far as he’s aware, DSW intends to purchase all remaining shares of Town Shoes. The 62 year old Town Shoes brand will also continue to grow and expand in Canada, as will company-owned The Shoe Company, Shoe Warehouse, and Sterling Shoes.

Each Canadian DSW store will have over 22,000 pairs of shoes. Handbags and accessories will also be carried. About 80% of the brands in DSW’s American stores will be carried in Canada. Canada’s DSW stores will also carry some brands exclusive to Town Shoes. 

DSW is hugely popular in the United States, with 410 stores in that country. Its name indicates its business model – it sells designer shoes at discounted prices. The company has hundreds of millions in cash and no debt. 

DSW’s Canadian e-commerce site launches later this year, with thousands of shoes available to purchase online. Over 180,000 Canadians are already enrolled in the company’s rewards program. 

John Varvatos to open more Canadian stores?

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Upscale New York City-based menswear designer John Varvatos could open more Canadian stores. Varvatos’ first Canadian location opened last year and according to sources, the brand seeks to further expand its Canadian presence. A free-standing Vancouver store may be in the works, and the brand will also be carried at Nordstrom and possibly in Saks Fifth Avenue‘s Canadian stores. 

John Varvatos’ first Canadian store opened last November in the newest wing of Toronto’s Yorkdale Shopping Centre. Yorkdale management specifically courted Varvatos for the mall, visiting New York City to sell the idea of a Toronto location. The 3,600 square foot Varvatos sits prominently in some of the mall’s most valuable retail space, in-between AllSaints and the mall’s Apple Store, across the hall from the busy Tesla Motors showroom. 

Interestingly, John Varvatos’ Toronto store opened before any others in prominent American cities such as Chicago and Washington, DC. Varvatos recently told Women’s Wear Daily that a Chicago store is in the works, however, as is a new Beverly Hills unit. 

Inside Yorkdale’s John Varvatos store.

The Varvatos brand launched in 2000 with a store in New York’s Soho. The brand has since expanded into footwear, leathergoods, eyewear, watches and fragrances. Varvatos currently has 15 boutiques worldwide, including 13 American stores and two other locations in London and Toronto. Varvatos will soon open in Bangkok, Thailand and Houston, Texas.

Prices for Varvatos’ collections vary. In its Toronto store, prices range from $75 for a t-shirt to just under $2,500 for a suit to close to $3,000 for a leather jacket. 

Detroit-born John Varvatos began his fashion career when he joined Polo Ralph Lauren in 1983. He moved on to Calvin Klein in 1990, where he was appointed head of menswear design and oversaw the cK brand. During his time at Calvin Klein, Varvatos is credited for having invented the ‘boxer brief’ style of men’s underwear, simply by cutting the legs off of a pair of long john underwear. Varvatos returned to Ralph Lauren in 1995 as head of menswear design and created the Polo Jeans Company, before starting his own label in 2000. 

A recent article in Women’s Wear Daily mentions what several sources have told us: that John Varvatos could open a Vancouver store. Speculation persists that Varvatos could open at Vancouver’s Pacific Centre, though we can’t confirm this. A source at Nordstrom says that, as far as they’re aware, the Varvatos brand will be carried at the company’s Canadian stores. Another source says that Canada’s Saks Fifth Avenue stores may carry Varvatos, though this isn’t certain. John Varvatos is currently carried at upscale Canadian retailers including Holt Renfrew and Harry Rosen

CANADIAN RETAIL NEWS: Thursday, July 10, 2014 (Updated Continuously)

 


Holt Renfrew to bring luxury shopping ‘Apartments’ to its stores

THE APARTMENT AT HOLT RENFREW, YORKDALE. PHOTO: JANSON GOLDSTEIN ARCHITECTS.

In an effort to become even more exclusive, Holt Renfrew will create luxury shopping ‘apartments’ in its Canadian stores. Referred to simply as The Apartment, the spaces will be accessible only to a handful of Holt’s top customers, pending management approval. According to Holt Renfrew president Mark Derbyshire, the concept will provide “unparalleled luxury” that will eventually roll-out in all markets that Holt Renfrew serves. 

Holt Renfrew’s first ‘apartment’ opened in January at the renovated and expanded Yorkdale Shopping Centre Holt Renfrew. The 1,000 square foot space, designed by New York City-based architectural firm Janson Goldstein, features a living room, spacious dressing room with a larger private dressing area, kitchen, and an en suite bathroom. For each client’s booking, fresh flowers and food of the client’s choice are provided. The space can be used for a variety of purposes including wardrobing, personal styling, trunk shows, and small parties. 

HOLT RENFREW’S FIRST ‘APARTMENT’ OPENED IN JANUARY ON THE SECOND FLOOR OF ITS EXPANDED AND RENOVATED YORKDALE SHOPPING CENTRE LOCATION. PHOTO: JANSON GOLDSTEIN ARCHITECTS.

Mr. Derbyshire recently told Women’s Wear Daily: “Everything is completely tailored to meet the needs and tastes of our customer. It’s an escape where you can take a friend or 10 friends. But we are very discreet as to who has access to this apartment”. Mr. Derbyshire went on to say that the apartment concept will be rolled out in other Holt Renfrew stores. “At this point, we see Apartments in all of our markets. That’s our intent. Some may be bigger, some smaller. Our Bloor Street Apartment might be 1,500 square feet”. 

According to the Globe & Mail, The Apartment will be available on a complimentary basis to Holt Renfrew’s “high-value client” – that is, the store’s big spenders and longstanding customers. New York City-based retail consultant Robert Burke told the Globe & Mail: “Department stores have realized for quite some time that a small percentage of customers can make up 65 to 70% of the luxury business. The department stores have become very focused on marketing and appealing to that high-net-worth spender.”

Holt Renfrew’s Apartments address Canada’s luxury consumers at a time of unparalleled competition. Saks Fifth Avenue will open as many as seven Canadian stores within the next several years, and Nordstrom will open several stores here, as well. Harry Rosen will expand and/or renovate many of its stores within the next couple of years, while smaller independent luxury retailers are also looking to up their game. Vancouver’s luxury retailer Boboli, for example, has temporarily relocated its popular South Granville store to give it a complete overhaul. Furthermore, a considerable number of luxury brands are looking to open mono-brand stores, all targeting Canada’s wealthy consumer.

Canada will have North America’s only mall with Walmart and a luxury anchor

PHOTO: SQUARE ONE/OXFORD PROPERTIES.

Mississauga’s Square One Shopping Centre will become North America’s only mall to feature both a luxury anchor and a Walmart store. A 120,000 square foot Holt Renfrew flagship is scheduled to open in the mall in the spring of 2016 and as far as we’re aware, the mall’s 225,000 square foot Walmart Supercentre will continue to operate. 

While researching this article, we examined every American mall anchored by Saks Fifth Avenue, Neiman Marcus, Barney’s New York and Bloomingdale’s stores. Not one mall includes Walmart. In Canada, there are currently no shopping malls anchored both by Walmart and Canada’s luxury department store, Holt Renfrew. 

Most of America’s better fashion malls include mid-to-upscale anchors. Some luxury-anchored American malls also have J.C. Penney and Sears as anchors, for example. Only two American malls, both in California, include both Target and a luxury anchor: Glendale Galleria is anchored by Bloomingdale’s and Target, while Westfield Topanga features Neiman Marcus in the same mall as Target. 

Besides Walmart, Mississauga’s Square One’s current anchors include a 191,000 square foot Hudson’s Bay store and a 164,000 square foot Target store. Until recently, a 145,000 square foot Sears store anchored the northwestern part of Square One. It will be replaced by a 113,000 square foot La Maison Simons, scheduled to open in the spring of 2016

HOLT RENFREW’S NEW SQUARE ONE STORE, OPENING IN THE SPRING OF 2016. RENDERING: JANSON GOLDSTEIN ARCHITECTS.

Speculation persists that Square One’s landlord, Oxford Properties, may seek to eventually remove Walmart from the mall. We’re unaware of any plans to remove Square One’s Walmart, especially as it’s one of the store’s top performers. 

Will Square One’s mix of luxury and downscale anchors start a trend among North American shopping malls? We consulted with retail expert and acting Executive Director of the University of Alberta School of Retailing, Emily Salsbury. Ms. Salsbury noted that with most North American malls (especially those with luxury anchors), there is limited opportunity to add new anchor stores unless current anchors leave.

Given that very few upscale North American malls also include downmarket anchors, and that almost no new North American malls are being built, Square One’s anchor mix is unlikely to be replicated. Although Saks Fifth Avenue and Neiman Marcus may look to open new North American stores, it’s unlikely they will locate in malls already anchored by Walmart or even Target. The same goes for Canada, as we’re unaware of any other mall, anchored by a Walmart, that could eventually house a luxury anchor.

 

Versace to open 5 Canadian stores within 5 years

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Italian luxury brand Versace plans to open five Canadian stores within the next five years, and possibly even sooner. Its target cities include Toronto, Montreal and Vancouver, and perhaps another Canadian city. Toronto will likely see two Versace stores: the company has already confirmed one, while it searches for a large downtown flagship space. A source tells us that all five Versace stores could be open in as little as two and a half years. 

Versace’s first free-standing Canadian store will open next month at Toronto’s Yorkdale Shopping Centre. We first learned of the 2,820 square foot store through the City of Toronto Applications website. Yorkdale management later confirmed its Versace store, along with several other first-to-Canada luxury retailers. 

Versace is seeking retail space in Toronto, Vancouver and Montreal. In Toronto, the brand wants a large space on Bloor Street West. In Vancouver, Versace seeks space ideally in the city’s ‘luxury zone’, located between the Hotel Vancouver and the Shangri-la Hotel. In Montreal, we’re not sure if Versace will open a street-front shop, or if it will choose to locate within an expanded Ogilvy/Holt Renfrew store, expected to be completed in 2017. Montreal currently lacks a street-front luxury zone, save for a handful of upscale retailers in the vicinity of the Ritz Carlton Hotel on Sherbrooke Street West.

Our source can’t confirm which fourth Canadian city could see a new Versace location. Our best guesses would be Calgary, possibly at Chinook Centre, or in Edmonton, at West Edmonton Mall. Both properties have aggressive leasing teams actively looking to secure new luxury tenants. This is more speculation on our part, however, and we’ll update you when we learn more. 

Canada’s only Versace store is a large shop-in-store within Vancouver-based luxury retailer Leone. Versace has operated out of the Sinclair Centre retailer since 1987. There’s no word yet on what will happen to Leone’s current Versace shop. 

Canada has had several Versace stores in its past. In the 1990’s, Toronto had franchised Versace locations on Bloor Street West, on Hazelton Avenue, and within luxury retailer Chez Catherine at Hazelton Lanes. In Montreal, Versace once operated shops on Sainte Catherine Street West and within a Chez Catherine concession at Ogilvy


Ted Baker to open at Toronto Eaton Centre

Ted Baker London (Image: CARGOCOLLECTIVE.COM)

According to the City of Toronto Building Application website, Ted Baker’s new Toronto Eaton Centre location may replace womenswear retailer Melanie Lyne in a 3,800 square foot space, next to Harry Rosen on the mall’s top level. Urban Toronto‘s ACT7 initially alerted us to the building application. Ted Baker representatives won’t confirm if this information is correct. 

In the United States, Ted Baker has 15 free-standing stores, 25 concessions within Bloomingdale’s stores, and 5 outlet stores.

Ted Baker’s first Canadian location opened in October of 2012 in the newest expansion of Toronto’s Yorkdale Shopping Centre. The roughly 3,200 square foot store is across from the hall from the recently expanded Holt Renfrew store. Ted Baker’s only Canadian outlet store opened in August of 2013 at the Toronto Premium Outlets

 

“Reverse Showrooming”: A Bricks & Mortar Retail Benefit

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Photo: Callison ArchitecturePhoto: Callison Architecture

Photo: Callison Architecture

“Reverse Showrooming”: A Bricks & Mortar Retail Benefit

by Janet Valenza, President, Pop-Up Artists

We’ve all heard the Bricks & Mortar retail complaints about “showrooming.” Someone comes into the store to see, touch and experience the product, only to return home to the Internet to shop the price and buy it elsewhere. Yes it’s true, and a real drag. But what if that same Retailer could use “showrooming” to his or her advantage?

The good news is Retailers can! How you ask? By displaying samples of eCommerce Brands, taking orders through the existing eCommerce Brand website and getting a cut of the deal. The Retailer can even charge a base rent, calculated on sales per square-foot, using the same model that Bloomingdale’s uses for its shop-in-shops. Any sales above the base would be eligible for a cut to be earned by the Retailer.

Test New Categories

Here’s how the Retailer wins. First he or she can test new categories, without any financial inventory risk. That’s right: No inventory risk! The biggest risk in retail is removed! Not only that, instead of laying out cash for inventory, the Retailer can take it in with the base rent, adding to profitability.

In a clothing boutique, for example, the Retailer can test jewelry. A small sample presentation can be created, and remain live for six weeks in Bricks & Mortar, with the store staff taking orders through the existing Brand’s website. If it works the Retailer can continue the relationship. If not, the Retailer simply opts to bring in a new brand. The Bricks & Mortar Retailer now has a risk-free way to build their assortment and their business!

Another benefit to the Retailer is ‘newness.’ The sample presentation creates another reason to invite the customer back into the store. It’s a traffic driver. And it’s newsworthy, for publicity purposes.

Turn it over to a PR agency, along with some well-planned events and you can blow the doors off!

Expand Business, Not Footprint

Now that you understand the basics of this type of arrangement let’s take it a step further. What this arrangement amounts to for a Bricks & Mortar Retailer is a vehicle to expand their business using the existing footprint. In other words, without adding any square feet at all, the possibilities to expand the business across categories is virtually (no pun intended) unlimited!

Picture this: Some beautiful, adjacent well-merchandised little nooks displaying a dozen samples each from multiple new categories with a handy tablet (perhaps mounted on the wall) for a sleek look, along with a well-trained incentivized store sales staff to help the customer “round out the brand” using the tablet and close the sale! That means each and every square foot in your store becomes endlessly efficient. All at no risk to you!

Perhaps you are concerned that you keep your customer relationships intact. If they are not already customers then just enter new customers into your own database when they make a purchase. Your customer is also likely buying stuff online anyway. Why not be the resource that introduces them?

I refer again to the old adage: Although your business needs new customers too, it’s much easier to sell more of what they want to your existing customers than it is to get a new customer. What I call e-Pop-Ins is the perfect vehicle to put it to work.

Today in a meeting of CEOs sponsored by the Luxury Marketing Council, I heard Robin Lewis say, “The United States is overstored.” He backed it up with the following statistic. There is 46 square-feet of space for every American citizen compare to 3 feet in the UK. Here is a way for you to expand without adding more space in an already over-saturated market!

Besides that, as a Bricks & Mortar Retailer, you are providing a very valuable benefit to brands growing up online. That is a chance to see, touch and try on the brand. Or in the case of cosmetics, even to smell it! Or, for spices to taste it! What a way to create a memorable in-store experience. The latest buzz is all about “experience and entertainment” over “acquiring.” But I believe that the most exciting stores have the best merchandising combined with the best experiences. Sensory experience leads to emotion which leads to buying and loyalty.

This value cannot be underestimated. From new product launches to new geographic markets, a physical presentation is a critical element for a brand growing up online.

Why is this important to the store? Because that brand by definition, must support the presentation to acquire new customers. When they support it, they drive new customers to your store. So an added benefit for the traditional retailer is new customers too!

A Look at the Future

Let’s take it even one step further and paint the picture of the future. If in fact the store can spend less time on the trade of buying inventory and turning around and selling it and more time getting to know the customer better, wow, now we have something.

The store can really start to understand how that customer lives. What style home do they have? Do they commute to work? From where to where? How? What do they do for fun? How about for relaxation? Are they married? Do they have children? Where do they vacation? The list goes on and on. The retailer can get to know them as a friend instead of constantly worrying about inventory.

What is the benefit in all of this for the store? Well birthday, anniversary and holidays gifts for starters. Secondly, if you sell a certain type of clothing what’s the best fit in terms of home décor? What does your customer like for their homes? What about resortwear? And for the fitness inclined, how about activity trackers?

The point is, the more the focus goes to the customer and the less the focus goes to the management of inventory, the better off you are.

I see it going even one step further. The store become the front-end and the brand website becomes the back-end. What that means is that the store becomes a sophisticated database of details related to customers’ lifestyles with the appropriate “registry” along with a well-segmented and executed online marketing program.

And from a creative standpoint another big WOW! The more the store can understand the customer’s lifestyle the more exciting and focused the merchandising can become. And, the more focused the in-store events can become. Not only is the experience better but your store now becomes the destination for your customer for the way they live.

In this way, as an independent Bricks & Mortar Retailer, you can get everything the big guys get. Now that’s how to make showrooming work for you!


Pop-Up Artists is a strategic marketing agency that creates focused physical shops integrating e-commerce, for retail and luxury brand clients.  Janet Valenza, president, is a former c-suite executive from the Young & Rubicam family of companies.  She can be reached at 917.497.5319 or janetv@pop-upartists.com.   

 

 

CANADIAN RETAIL NEWS: Friday, July 4, 2014 (Updated Continuously)

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Most Canadian Fruits & Passion locations rebranded as TheFaceShop

PHOTO: WWW.LAURIERQUEBEC.COM

In June of 2013, Fruits & Passion’s parent company, S.C. Johnson & Sons Inc., sold the brand to South Korean conglomerate LG Corp. LG is parent company of TheFaceShop. A handful of franchised Fruits & Passions locations, including its store at Place d’Orléans in suburban Ottawa, will remain. The Company’s Quebec stores will also continue operating under the Fruits & Passion name for the foreseeable future. 

PHOTO: WWW.HILLCRESTMALL.CA

Interview requests with the company were denied, though staff at some former Fruits & Passion locations confirm that the brand has struggled in much of Canada. Many Quebec Fruits & Passion locations continue to see strong sales, partly due to its exceptional brand identity and market coverage. 

According to its website, the TheFaceShop has over 2,300 stores in 29 countries.