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$350million Expansion/Renovation for Toronto’s Sherway Gardens

Image: Sherway Gardens (Cadillac Fairview)

Tomorrow morning (Tuesday, October 23rd) Cadillac Fairview will announce a $350million expansion and renovation of its Sherway Gardens mall in West Toronto.

We previously reported on this renovation/expansion, which will include a vastly expanded Holt Renfrew store, new Harry Rosen and Sporting Life Stores, and boutiques for Louis Vuitton, Burberry, Kate Spade and others. 

We don’t have much else to report on this expansion except we appear to have beat Cadillac Fairview’s announcement by a few weeks.

We’ll continue to update you on commercial real estate news from retail insiders. 

Sherway Gardens website: http://www.sherwaygardens.ca
Cadillac Fairview website: www.cadillacfairview.com

Will Buying Hudson’s Bay Stock Be a Bad Investment?

Hudson's Bay store, Winnipeg. Image: jefpit, Flickr

Buying Hudson’s Bay (“HBC”) stock might not be a good investment, according to one Toronto-based journalist and business expert.

Sean Silcoff of The Globe and Mail notes that HBC’s revenues per square foot may appear to have progressed from 2009-2011 (from an average of $122 to $133 per square foot) but that this increase may have been a result of Canada coming out of the ‘Great Recession’ rather than good business.

That, and HBC had per square foot average revenues of $165 in 2005, the last time per square foot stats were made public before HBC became privately owned.

In its prospectus, HBC’s stated per square foot ‘goal’ for the next 3-5 years is $170-180  per square foot. That’s not much more than the 2005 average. It’s food for thought… we see amazing progress in Hudson’s Bay’s store renovations, yet we now question if the chain’s performance is investment worthy or just a result of a better economy.

We’ll defer that answer to financial experts, and keep watching changes in store.

Hudson’s Bay (Company) website: www.thebay.com

Nordstrom, Simons,Target or Walmart in New Downtown Toronto Mall?

Proposed Oxford Place. Image: Oxford Properties

We have received word that Oxford Properties’ proposed new Downtown Toronto shopping centre is already being eyed by retailers such as Nordstrom, La Maison Simons, Target and Walmart. A new 1million square foot shopping centre is being proposed by Oxford (along with convention/office/residential/hotel space and possibly a casino) which may rival The Toronto Eaton Centre for patrons and possibly exceed its size. The mall would be located on a mult-use, 11 acre site beside the Rogers Centre and the CN Tower.

Nordstrom, Simons, Walmart and Target are actively seeking downtown Toronto space and have expressed frustations at lack of retail availability. The Toronto Eaton Centre is space-limited, and Sears doesn’t seem willing to give-in to Cadillac Fairview’s offer to buy-out its lease for a new flagship Nordstrom store (or for Simons, also eying a chunk of Sears’ space). We reported earlier that Nordstrom is seeking 225-270,000 square feet, while Simons wants 100,000+ square feet in Downtown Toronto.

The Toronto Eaton Centre’s non-anchor square footage is 582,000 square feet (Sears, Canadian Tire and Best Buy add another 1.035million square feet). The proposed Oxford Place would be around 1 million square feet, making it possibly ‘grander’ than Toronto’s Eaton Centre’s non-anchor retail portion. More importantly Oxford Place could become home to substantial anchor-tenants, ranging from lower-end big box retailers to large luxury retailers, depending on what the landlord deems marketable.

Oxford is in the preliminary planning stages of its new project, and we’ve been told that it is being pressured to bring forward its planning application to Toronto City Hall ‘asap’ by potential tenants desperately seeking large downtown retail spaces. We will keep you updated on what might become a very exciting Canadian retail development.

Oxford Properties website: www.oxfordproperties.com

Toronto Eaton Centre website:  www.torontoeatoncentre.com

La Maison Simons website: www.simons.ca

Maison Simons Opens New Edmonton Store on October 31

Image: Simons

Maison Simons opens its $30million, 115,000 square foot West Edmonton Mall store on October 31st 2012. The opening has been delayed twice already (it was supposed to open late summer 2012) and we’ve been told the store will look fabulous.

The store will include changing stalls that descend from the ceiling and photo studios allowing customers to photograph themselves in outfits to send to friends for opinions. 

The store will be located at the West-end of the mall. We have provided a floorplan of the mall, below. 

Image: Simons

The store will also include some interesting art work, differentiating the interior from competitors Holt Renfrew and Hudson’s Bay (Formerly known as The Hudson’s Bay Company). 

For those unfamiliar with Simons, its owner Peter Simons describes it as: “a junior department store with a full range of price points in apparel, accessories and home decor. It combines affordable chic with designer fashions and private label brands for men and women.”

Art exhibit within Edmonton’s new Simons. Image: Simons

Check out their website to see their private label and designer merchandise. The website also includes excellent photos of the beautiful interiors of other Simons stores. 

Stay tuned for more info on the grand opening, as well as an analysis of this unique store strategy. 

Maison Simons website: www.simons.ca
West Edmonton Mall website: www.wem.ca

The Hudson’s Bay Company Drops ‘Company’ From Its Name

New 'Hudson's Bay' sign at Downtown Vancouver store

We found out today that Canada’s 342 year-old Hudson’s Bay Company will drop the word ‘Company’ from its name, now to be known simply as ‘Hudson’s Bay’. The store will also deviate away from calling itself ‘The Bay’ as it has for an eternity.

The name change will coincide with a mid-November initial stock offering of Hudson’s Bay. 
The decision to amend the company’s name responds to The Bay’s somewhat unfashionable brand image. Recent store upgrades will continue to upscale the store to make it more competitive with Holt Renfrew and the entry of Nordstrom into Canada

Hudson’s Bay (Company) website: www.thebay.com

Store Renovation Money For The Bay To Come From IPO

Image: Hudson's Bay Company

Canada’s Hudson’s Bay Company (“The Bay”) is seeking about $400-500million to further upgrade its stores and merchandise strategy, as well as pay off debts. The retailer will raise fund via an initial public offering (IPO) in mid November 2012, via the Toronto Stock Exchange (TSX).

The $400-500million represents about 20% the value of the company. The Bay has just released financials, and sales are doing well enough that ‘now is the time’ for them to raise further funds to invest into further store improvements as well as for hiring more sales staff. Some also speculate that The Bay is looking to do some ‘cashing out’ before the Canadian entry of Target and Nordstrom stores.

Per square foot revenues for The Bay were only about $133/square foot in 2011. The store would like to see that increase that to $170-180/square foot in three-to-five years, with substantially higher numbers expected for its downtown flagship stores (Toronto, Montreal, Vancouver and Calgary). 

The Bay currently has 90 department stores across Canada. About 80 of these stores will see substantial renovations from some of the proceeds of the IPO. The other 10 stores may be ‘let go’ for lack of productivity. These locations have yet to be announced and will likely be closed slowly by lease expiry or with sublease agreements with other retailers. 

We will keep you updated on The Bay’s stock offering, as it might actually be a decent investment… the company is doing ok and owns substantial real estate holdings.

Hudson’s Bay Company website: www.thebay.com
Toronto Stock exchange website: www.tmx.com

Kiehl’s Opens Vancouver Location Inside the Hudson’s Bay Company

Kiehl's at The Bay, Vancouver (Downtown) Image: Hudson's Bay Company

Today Kiehl’s opened a 900 sq ft concession on the ground floor of Downtown Vancouver’s Hudson’s Bay Company (The Bay) department store. The boutique includes the full range of Kiehl’s products. And for those not familiar, Kiehl’s is an American cosmetics brand retailer that specializes in making/branding skin, hair and body care products.

Jason Matlo, one of Vancouver’s top fashion designers, has created a limited-edition T-shirt for sale at the shop, with all proceeds being donated to a summer camp for youth with cancer.

This is the first Kiehl’s at The Bay, and other locations will follow in Toronto, Montreal and Calgary within the next 12 months. We will provide new Kiehl’s Bay store openings as we get further information. 

Kiehl’s website: www.kiehls.ca

Jason Matlo website: http://jasonmatlo.com
Hudsons Bay Company website: www.thebay.com

Holt Renfrew Attempting to Expand Vancouver Store

Holt Renfrew Vancouver. Photo taken from basement-level men's floor. Image: ibigroup.com

We have received word that Vancouver’s Holt Renfrew would like to expand its Vancouver store via annexing space currently occupied by a sports retailer. The sports retailer’s lease expires in about a year and Holt’s wants more space.

The current store is just over 137,000 square feet. An expansion would see the store expand to about 175-180,000 square feet. This means it wouldn’t be much smaller than the new Nordstrom store set to open at the other end of Pacific centre Spring 2015.

The proposed expansion would include expanded space on the store’s ‘ground floor’ and basement level. A retail insider speculates the main-floor space would at least partly become a large women’s shoe floor, as Holt’s current shoe floor is small for its high level of sales. The possible basement level expansion may become storage and space for an expanded men’s floor and restaurant.

We had speculated that this proposed expansion would mean a third-level restaurant could open at Holt’s. This may not be the case, as a Holt’s insider tells us that the top-floor restaurant didn’t open partly because of a lack of proper freight elevator and other potential code infractions. If the expansion happens, hopefully a restaurant would be included on a lower-level.

We think Holt’s shoe salon should include several dedicated luxury shoe boutiques such as Prada, Gucci, Jimmy Choo and others. Luxury department stores around the world have done the luxury shoe shop-in-store concept with success, including London’s Selfridges and Ireland’s Brown Thomas stores, both owned by Holt’s Weston family.

Check out the 21,500 sq ft women’s shoe space opened September at Breuninger department store in Stuttgart, Germany. It’s got 6 shops including Prada, Prada Rossa, Miu Miu, Gucci, Jimmy Choo and Tod’s. This video of the grand opening shows some very interesting ceiling lights, as well. We’d love a shoe floor like this in Canada, as we have nothing yet that compares.

Holt Renfrew website: www.holtrenfrew.com

Breuninger website: www.breuninger.com

Blast From The Past: Holt Renfrew, Bloor Street Toronto

144 Bloor St. West. Image: tobuilt.ca

Holt Renfrew stores used to be smaller. Considerable smaller. This week in ‘Blast From The Past’, we look at Toronto’s Bloor Street Holt Renfrew.

Before its current location at 50 Bloor Street West opened in 1979, Holt Renfrew had a 60,000 sq ft store at 144 Bloor Street West. The building is still standing… it’s now got a Burberry store in the front and soon a Nespresso boutique in the back. It was also once home to Cumberland Cinemas…

Holt Renferw fist building on the left. Image: City of Toronto Archives

The 144 store expanded by opening a small, separate men’s store at 110 Bloor Street West. These stores closed when Holts opened its then 115,000 square foot flagship location at 50 Bloor W. in 1979.

If you look carefully on the side of 144 Bloor, you can still barely make out the words ‘Holt Renfrew’.

Next week we’ll profile other former Holt’s stores, as the company has an interesting past.

Current Holt Renfrew store at 50 Bloor St. W, Toronto. Image: Holt Renferw

We’re copying and pasting a brief store floor guide from the 144 Bloor Holt’s in 1979. It’s from ‘The Department Store Museum’, one of our favourite blogs:

Holt Renfrew & Company, Ltd.
144 Bloor St. West
Toronto, Ontario
BLOOR STREET STORE DIRECTORY (60,000 sq. ft.)Street Floor
Gloves • Hosiery • Handbags • Fine Jewellery • Costume Jewellery • Small Leathers • Millinery • The Shoe Salon • Cosmetics • Perfumes • Gift Collections • Gourmet Shop
The Men’s Shops Men’s Accessories • Men’s Furnishings • Men’s Sportswear • Men’s Clothing • Men’s Shoes

Second Floor
The 1300 Collection • Ports International • Sportswear • Blouses • Sweaters • Fur Salon

Third Floor
Fashion Salon Dresses • Coats • Suits
H.R. Boutique (luxury designers) • Christian Dior Boutique • Cachet (younger/trand) • Model Millinery • Wig Salon • Bridal Salon

Fourth Floor
Intimate Apparel • Corsetry Salon • Little Girls • Big Girls • Little Boys • Big Boys • Children • Children’s Shoes • Toys • Beauty Salon

Fifth Floor
Miss Renfrew Miss Renfrew Prêt-à-Porter • Miss Renfrew Sportswear • Shoe Stack • Bar Rouge

Holt Renfrew website: www.holtrenfrew.com

Department Store Museum website: http://departmentstoremuseum.blogspot.ca

Ottawa’s Rideau Shopping Centre to Expand

Expansion location for Ottawa's Rideau Centre. Image: Ottawa Citizen

Retail Insider has the flu, so we’re going to post text to an existing article and bring you some new content hopefully tomorrow.

We’ve just got confirmation that, after two Sears Canada execs resigned today, the road may be paved for one or two more Nordstrom announcements in Toronto. We may have information about a Toronto Eaton Centre Nordstrom as early as Friday. We’re going to rest in bed now after posting this story…

“OTTAWA — The owners of the Rideau Centre have revealed plans for a massive, $250-million renovation and proposed expansion of the downtown shopping mall, adding further fuel to Ottawa’s red hot retail boom.

“We’ve had a grand vision for the property,” Sal Iacono, eastern portfolio manager of Cadillac Fairview Corp. Ltd., told the 19th annual Ottawa Real Estate Forum on Thursday.

The project is spurred by the planned 2015 opening of an outlet by upscale American retail chain Nordstrom in the top two floors of a space now occupied by Sears, which is closing its Rideau Centre outlet. The $100-million renovation will relocate the mall’s food court to the ground floor of the former Sears store, closer to the Apple Store. The rest of the mall will also be updated.

Iacono also revealed a planned 180,000-square-foot expansion of the mall on the corner of Nicholas Street and Rideau Street, now the site of a parking lot. The company has earmarked $150 million to build the addition.

Mall general manager Cindy VanBuskirk was quick to point out that the conference marked the first public disclosure of the expansion plan. She said the mall still needs to win approval from city council and hold public consultations before it can move ahead with construction.

However, Iacono revealed a fairly aggressive time frame for the construction. Cadillac Fairview wants to have shovels in the ground as early as next spring and hopes to open the expansion in time for Nordstrom’s arrival in 2015. The expansion will bring the mall to 837,000 square feet from its current 657,000 square feet.

Preliminary artist’s renderings of the new shopping area reveal that trendy clothing chain H&M will be a tenant. The drawings portray a three-storey building that wraps around the corner of Nicholas and Rideau, with two levels of underground parking below. An H&M logo is prominently featured as the anchor store in the rendering.

Cadillac Fairview showed the drawings at the conference but declined to provide copies to the Citizen.

H&M has reportedly been looking to come to Ottawa for nearly nine years, but has yet to publicly announce when and where it will setup shop in the capital. Asked for a timeline for the store’s arrival, Iacono would only say: “To answer your question, we are hoping to open our expansion in spring of 2015.”

The project is the latest example of a booming retail evolution that is attracting numerous international retailing chains to Ottawa.

Bayshore Shopping Centre is in the midst of expanding to 1.1 million square feet from 722,000 square feet to accommodate a Target store and other retailers. Tanger Outlets has partnered with RioCan Real Estate Investment Trust to build a 350,000-square-foot outlet mall, with as many as 15 American-style outlet shops, on 50 acres north of Highway 417 near Scotiabank Place. The company hopes to have the outlets ready for shoppers by 2014.

Ikea recently opened its largest Canadian outlet — at least until an expanded Montreal location opens — at the Pinecrest Shopping Centre.

“Ottawa is a lucrative market,” said Barry Nabatian, director of the market research division at Shore-Tanner & Associates. “More than half of the labour force work in high paying jobs.”

Nabatian said the average income of a household in Ottawa is $98,000. More than 40 per cent of Ottawa households bring home more than $100,000 annually.

Ottawa shoppers spend more than $15.3 billion on retail annually. Stores in the capital collect, on average, $475 per square foot in retail sales annually. Other Canadian cities see shoppers spend between $250 and $350 per square foot of retail space on an annual basis.
Nabatian and other forum speakers said Victoria’s Secret, Anne Taylor, J Crew and U.S.-based Mexican food chain Chipotles are among the chains looking for new or further Ottawa locations.

Bryce Dymond, principal with retail real estate consulting firm Northwest Atlantic (Canada) Inc., said Nordstrom’s choice of Ottawa as one of its first four Canadian cities will set off alarm bells for other American retailers and make the capital even more attractive.
“Nordstrom will do what Apple did for malls years ago,” said Dymond. “If it’s good enough for Nordstrom, its good enough for anyone.”

He said Nordstrom’s arrival may even push other upscale U.S. retailers such as Macy’s to move north.

The forum attracted a record crowd of 525 real estate professionals to the Hampton Inn and Conference Centre on Coventry Road to discuss where the Ottawa market is heading. Other speakers included Mayor Jim Watson, Mario Lefebvre, director of the Conference Board of Canada’s centre for municipal studies, and Cal Kirkpatrick, president of Colonnade Development.