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Strellson continues its Canadian expansion with a second location

By
Craig Patterson
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Hoarding over Bayview Village's new Strellson store, currently under construction. Photo: ACT7, Urban Toronto.Hoarding over Bayview Village's new Strellson store, currently under construction. Photo: ACT7, Urban Toronto.

Hoarding over Bayview Village’s new Strellson store, currently under construction. Photo: ACT7, Urban Toronto.

Upscale Swiss menswear brand Strellson continues its Canadian store expansion, with a second location opening soon at Toronto’s Bayview Village. Toronto will be the only city in the world to boast two free-standing Strellson stores, and furthermore, Toronto is North America’s only city to feature any free-standing Strellson locations. Strellson continues to work with a Toronto-based broker to open new Canadian stores, and as we reported last month, the brand wants to open an Ottawa flagship. 


Urban Toronto‘s ACT7 sent us a photo of the hoarding over Bayview Village’s new Strellson store, currently under construction. Strellson will locate in a large space within the mall, alongside upscale retailers such as Andrew’s and TNT The New Trend. Bayview Village is unique in that it carries many smaller, upscale stores and brands not found elsewhere. Bayview Village’s location is enviable, being close to some of Canada’s wealthiest neighbourhoods. 

Founded in 1993, Strellson is Switzerland’s largest menswear manufacturer. Owned by Holy Fashion Group, it produces mid-to-high priced menswear (both dressy and casual), accessories and related products, targeting men in the 25 to 40 age range. It retails in about 40 countries. 

According to Developers & Chains, Strellson is also looking for flagship retail space in Downtown Ottawa, either within the Rideau Centre or in a high-profile street location. Currently, Strellson’s only North American location is at 170 Bloor Street West in Toronto, at the base of the Park Hyatt Hotel, at the northwest corner of Bloor Street and Avenue Road. The 1,700 square foot store opened in November of 2012.

More Canadian Strellson locations are expected to follow, and we’ll update you when we learn more. 

CANADIAN RETAIL NEWS: Tuesday, July 15, 2014 [News from around the web]

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Major e-commerce brands are opening brick-and-mortar stores

By
Retail Insider
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Photo: www.modernfellows.comPhoto: www.modernfellows.com

Photo: www.modernfellows.com

By Steven P. Dennis

Amidst all the breathless pronouncements about the inexorable decline of brick and mortar retail emerges an interesting phenomenon: some of the fastest growing and most exciting internet-only brands are opening stores.

Recently, Bonobos raised $55MM largely to accelerate its foray into “Guideshops.” Other e-commerce innovators such as Warby Parker, Trunk Club, Nasty Gal and Bauble Bar are all expanding into physical store fronts. Expect more announcements soon, not only from earlier stage companies, but from larger direct-to-consumer brands as well. This seemingly counter-intuitive trend reflects a few realities.

First, most of these venture capital funded darlings have thrived in their first few years by exploiting a highly specific customer niche and leveraging the heck out of the advantages of a direct-to-consumer model. Alas, the number of customers who are willing to buy product sight unseen, without working directly with a sales person and lacking the instant gratification that physical stores provide, is comparatively small when it comes to product categories where fit, material quality and fabrication are important. For these brands to continue to grow–and have a chance for material profitability–physical locations aren’t a nice-to-do, they are a necessity.

Second, brick and mortar retail is different, not dead. In most product categories, for many, many years to come, the overwhelming majority of sales and profits will continue to come from, or be influenced directly by, physical locations. Regardless of whether a brand started as an actual store or as a virtual entity, the ones that will ultimately win will offer a tightly integrated experience across their various channels and touch-points. They will eschew traditional mass, one-size fits all strategies and embrace more personalized missions. There remains plenty of business to be done in brick and mortar locations–if you have something remarkable and meaningfully customer relevant.

Finally, when we think about the market or the customer we inevitably get it wrong. Global pronouncements about industry dynamics or the “typical” consumer are rarely particularly illuminating and almost never sufficiently actionable. The brands that are winning–the ones that are stealing share from you–go beyond the averages and the mega-trends. They understand how to apply technology to create frictionless commerce. They delve into data and apply customer insights that inform stronger acquisition, growth and retention tactics. They are committed to experimentation. They treat different customers differently. And on and on. None of this is fundamentally rooted in how a brand started or whether trends tend to favor its success.

Of course it’s far from certain that these previously web-only brands will successfully transition to an omni-channel world. Some will stumble mightily. A few will fail completely. Others will see their growth stall at only a handful of profitable locations.

The one thing for certain is that for quite a lot of customers, the benefits of physical shopping are here to stay. For traditional players the rush to close and down-size their store base may have some merit. But it’s equally likely the problem isn’t just the real estate portfolio.


Steven Dennis is a senior omni-channel retail executive and strategic growth advisor at SageBerry Consulting , LLC. . He is also a Former Chief Strategy Officer at Neiman Marcus. [More about Steven P. Dennis] Published with permission. This post originally appeared at Steven P. Dennis’ Blog on July 14, 2014. Copyright 2014. Follow Steven P. Dennis’ Blog on Twitter.

CANADIAN RETAIL NEWS: Tuesday, July 15, 2014 [News from around the web]

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Giorgio Armani to open 1st Canadian outlet

By
Craig Patterson
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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

By
Retail Insider
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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]

Trending Topics:

–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

By
Craig Patterson
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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?

By
Craig Patterson
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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

By
Craig Patterson
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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

By
Craig Patterson
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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

By
Craig Patterson
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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

By
Craig Patterson
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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. 

 

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