Nordstrom Rack delays Canadian store openings until 2017

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March 21, 2014

Nordstrom has delayed opening Nordstrom Rack stores in Canada until 2017. Target’s struggles in Canada are partly to blame. Sources relayed this information to us in early March, and it’s now confirmed by the Globe & Mail via an interview with a Nordstrom spokesperson.

Nordstrom Rack managed to secure several Canadian locations, and we expected its first stores to open in 2015. We delayed reporting on these locations, as some landlords were negotiating related leases. Nordstrom recently walked away from its Nordstrom Rack deals and it now expects to open its first Canadian Nordstrom Rack stores in 2017.

Target‘s struggles in Canada are partly to blame. “We want to ensure we understand how to best serve Canadians,” said Nordstrom spokesperson, Brooke White, in an interview with the Globe & Mail. Target lost about US$941 million last year and the company continues to experience supply chain issues, as well as negative perceptions by some Canadians. Nordstrom Rack wants to ensure that its distribution and replenishing systems are optimal before its Canadian debut.

“There are enough differences for us in our distribution and systems that virtually everything that we do in the States we have to alter somehow for Canada, and we had underestimated that,” said Ms. White to the Globe & Mail.

Nordstrom Rack stores are very productive. Sales per square foot at Nordstrom Rack are estimated to be US$553 per square foot, while Nordstrom’s full-line department stores earn about US$372. We credit the Globe & Mail for providing these numbers.

Nordstrom Rack stores are typically in the 30,000-50,000 square foot range. The company anticipates opening 15-20 Nordstrom Rack stores in Canada.

Nordstrom Rack’s delay may be a gain for Off 5th by Saks Fifth Avenue. Saks plans on opening up to 25 Off 5th outlets in Canada over the next few years, some as early as next year. Saks has one advantage over Nordstrom: real estate. Sources tell us that Saks could open Off 5th stores in current Hudson’s Bay Company real estate, including rebranding some of its Home Outfitters locations as Off 5th outlets.

Source: Globe & Mail article by Marina Strauss

[Nordstrom Rack website]

Target to open a large Downtown Toronto store

By

Craig Patterson

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March 20, 2014

Target will open a 145,000 square foot store in Downtown Toronto. It’s expected to open in October of 2016. It will be a full-sized Target store, as opposed to the smaller ‘City Target’ locations that have recently opened in the urban cores of cities such as Chicago, Los Angeles and Seattle.

The store will be located in a 200,000 square foot retail space at the base of Harbour Plaza‘s One York Street, a large multi-use project that will eventually feature a 35 story office tower as well as two 60+ story residential towers. Harbour Plaza will connect to the neighbouring Air Canada Centre as well as Union Station, via the city’s PATH system.

The area surrounding the new Target store has seen an explosion of new condominium units. By the time Target opens in 2016, it’s expected that there will be about 15,000 condo units within a one mile radius.

Target CEO Tony Fisher said: “It will be one of our largest stores in the entire country,” noting that the new store will be easily accessible from the Financial District.

“Because of its location, the limited availability for new retail and minimal existing competition, and significant market growth, this development offers a very rare and strategic opportunity for Target,” according to Target.

[Source: Toronto Star]

[Target Canada website]

Will Uniqlo open in Canada via Nordstrom?

By

Craig Patterson

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March 20, 2014

Sources tell us that Japanese fast-fashion retailer Uniqlo will open in Canada, and that it will arrive via Nordstrom. We cannot confirm this information, though we have been contacted by sources from across Canada (as well as one in the United States) notifying us of Uniqlo and Nordstrom’s potential business relationship. If these sources are correct, we could see Uniqlo open stores in Canada within the next two years.

One source informed us that Nordstrom has “purchased the rights” to open Uniqlo stores in Canada, not unlike Hudson’s Bay‘s licensed operation of Canadian TopShop/TopMan stores. Our source would not confirm if Uniqlo would open locations within individual Nordstrom stores or if Nordstrom would open free-standing Uniqlo stores.

Nordstrom will open its first Canadian location at Calgary’s Chinook Centre on September 19th, 2014. Its second Canadian store will open at Ottawa’s Rideau Centre in the spring of 2015. Its third location, the largest in Canada, will open in the fall of 2015 at Vancouver’s Pacific Centre. Following these will be three Nordstrom stores in Toronto: two in the fall of 2016 (at Toronto Eaton Centre and at Yorkdale Shopping Centre) and one in the spring of 2017 at Sherway Gardens. At least two more Canadian Nordstrom locations are expected to follow.

Again, we must make it clear that this is speculation and that none of our sources will go on record to confirm Uniqlo arriving in Canada via Nordstrom. We are nevertheless publishing this information, as all of these unrelated sources have essentially relayed the same message. If you can provide any further information on this topic (or if you have any retail-related tips in general), please email us here.

[Nordstrom Canada website]

[Uniqlo website]

Yorkdale to feature one of Canada’s most advanced security systems

By

Craig Patterson

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March 20, 2014

Toronto’s Yorkdale Shopping Centre will soon feature one of the most advanced security surveillance systems in Canada. It will cost approximately $3.4-million to implement.

The new surveillance cameras, some of which are capable of providing up to 29 megapixel images, will allow security to zoom in on incidents and the individuals involved to capture images in remarkable detail. In addition, licence plate recognition technology now exists at every parking lot entry point which Toronto Police Services has indicated will prove extremely useful in police investigations.

The new security installation at Yorkdale Shopping Centre features three key innovations:

Complete 360-degree coverage delivering almost 100 per cent surveillance coverage of public spaces
Exceptionally high resolution image capture that allows magnification in remarkable detail; up until now, surveillance images didn’t always provide sufficient detail to assist police investigations
A surveillance room staffed by trained security officers monitoring live feeds 24/7 from all surveillance cameras

“Shopper safety is our number one priority and this security installation will make Yorkdale a very undesirable place for criminal activity,” said Anthony Casalanguida, Oxford Properties’ Director of Retail. “We now have the one of the most technologically advanced surveillance coverage systems available to help deter crime, assist police investigations, and help people feel safe.”

“Yorkdale has always had excellent security and surveillance,” said Superintendent Selwyn Fernandes of Toronto Police Services 32 Division.“Yorkdale is raising the bar in private security and the kind of detail its security team can now deliver will be a real deterrent to criminal activity and, when needed, will be an asset to police investigations. We applaud the management and security team for making this investment.”

[Yorkdale Shopping Centre website]

Sears Canada executive salaries doubled last year, while thousands lost jobs

By

Craig Patterson

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March 20, 2014

The top five executives at Sears Canada earned about $4.8-million in 2013, compared with about $2.4-million in 2012. During the same period, the company laid off over 2,200 workers.

CEO Douglas Campbell got a 47% pay increase when he was promoted from COO to CEO in September of 2013. His base salary is now $654,000 plus a $238,000 annual bonus. If his employment was to be terminated without just cause, he would get a $3-million ‘golden handshake’, including a $2.2-million bonus.

VP Klaudio Leshnjani got an 85% raise, earning $775,000 in 2013. VP Salim Maherali got an 86%, earning $581,000 in 2013.

Sears Canada’s five-year share price increased 30% while the S&P/TSX index grew by 82% over the same period. At the same time, Sears Canada’s revenues fell 8.2% to about $4 billion during fiscal 2013, while store sales fell about 6.4%. Profits increased more than fourfold, however, to $447 million, mainly due to the company selling-off store leases.

The above information is from a circular released prior to the company’s upcoming April 24th shareholder’s meeting. We’ll report more on this closer to that meeting.

[Source]

Harry Rosen: 60th anniversary to be marked with new stores, store expansions and renovations

By

Craig Patterson

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March 19, 2014

Upscale menswear retailer Harry Rosen will renovate and expand several of its stores as it celebrates its 60th anniversary. These renovations and expansions will take place over the next three years. We’ll soon provide specific details from an interview with Harry Rosen CEO Larry Rosen.

In the next three years, two new Harry Rosen stores will open: at Ottawa’s Rideau Centre and at Toronto’s Sherway Gardens. Several existing Harry Rosen stores will be expanded, including its Montreal and Calgary (Chinook Centre) locations. The company will renovate stores at West Edmonton Mall, on Toronto’s Bloor Street and at Vancouver’s Pacific Centre. Its recently renovated and expanded Yorkdale Shopping Centre store is currently being unveiled.

We interviewed CEO Larry Rosen on the company’s specific plans surrounding its store expansions and renovations. We’ll reveal further details in the coming days. From what Mr. Rosen has told us, these store improvements will solidify Harry Rosen’s position as one of the world’s top menswear retailers.

[Harry Rosen website]

Canada’s 3rd Kate Spade store to open at West Edmonton Mall

By

Craig Patterson

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March 19, 2014

A Kate Spade Store will be opening soon at West Edmonton Mall. The store will be Canada’s third Kate Spade store location, and the first to be located outside of Toronto.

West Edmonton Mall’s Kate Spade will be located on the mall’s second level in its ‘Phase II’ as per the mall map below. It joins an increasingly upscale set of tenants that will include DKNY, Tumi, Tiffany & Co., Michael Kors, Stuart Weitzman and others. Kate Spade will replace part of the retail space formerly occupied by clothing retailer Bluenotes.

Kate Spade’s first Canadian store opened in November of 2012 at Toronto’s Yorkdale Shopping Centre. A second, 4,000 square foot flagship location opened in May of 2013 at 138 Cumberland Street in Toronto’s upscale Yorkville area. A Kate Spade outlet store is also located at the Toronto Premium Outlets.

For those unfamiliar, New York City-based Kate Spade is a popular mid-priced designer label that features handbags and accessories, women’s ready-to-wear, footwear, stationery and address books, fragrances, eyewear and a home collection. Given the company’s variety of offerings, it has become referred to as a ‘lifestyle accessories and fashion brand’.

We’ll update you on further Kate Spade store openings in Canada.

Walmart marks 20 years in Canada with a summit devoted to frugal living

By

Craig Patterson

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March 19, 2014

Walmart Canada (Image: edmontonrealestate.com)

Walmart opened in Canada for 20 years, and this fall it will host something called ‘The Lowering the Cost of Living Summit’. According to Walmart, the summit will “generate new thinking and solutions and bring new attention to improving the financial health of Canadians.”

Walmart entered the Canadian marketplace on March 17, 1994 with the purchase of the Woolco Canada chain of retail stores. Starting with a base of 122 Woolco stores and 16,000 employees, Walmart Canada has grown to 389 stores and more than 95,000 associates across Canada.

Walmart will host The Lowering the Cost of Living Summit in Toronto in the fall of 2014. The event will bring together consumers, business leaders, financial specialists, academics, economists, non-governmental organizations and government representatives to examine real solutions to help Canadian families tackle their financial challenges. The full day summit will feature plenary sessions, panels, workshops and networking events designed to stimulate new ideas and the sharing of best practices. Event details will be released over the coming months.

“Our mission is to save Canadians money so that they can live better,” said Shelley Broader, president and CEO of Walmart Canada. “As we enter our 20th year in Canada, we want to help find new ways to help lower the cost of living for Canadians.” According to a recent nationwide poll conducted by Research Management Group (RMG), 36% of Canadians feel they can only afford to pay for the basic necessities, and 43% feel they tend to live from paycheque-to-paycheque. The RMG survey was conducted for Walmart in late February.

“In addition to this poll, our consumer research shows that 72% of Canadian moms – our core customer – say that Walmart is the top retailer to help them stay on budget,” said Ms. Broader. “We want to build on this commitment to find new ways to make life easier for our customers.”

[Walmart Canada website]

RETAILERS: University of Alberta School of Retailing wants you on April 3rd

By

Craig Patterson

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March 17, 2014

Retailers are wanted to participate in the University of Alberta School of Retailing Career Fair on April 3rd, in Edmonton. The School of Retailing produces some of Canada’s brightest and best-educated retail-focused grads. We strongly believe it’s worth a retailer’s time to participate in this event.

If you’re a retailer and are able to participate, contact Emily Salsbury at: 1 (780) 248-1238, or email her: schoolofretailing@ualberta.ca

The event will take place in the University of Alberta School of Business Atrium, located on the university campus. You’ll have the potential to choose among Canada’s best new talent, and meet students who have studied at the country’s top retail school.

If you’d like to participate, act fast: registration for this amazing opportunity closes shortly. To learn more about the School of Retailing’s Career Fair, visit: http://www.retailcareerfair.ca

Oakridge Centre expansion approved by Vancouver City Council

By

Craig Patterson

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March 17, 2014

Vancouver City Council has approved an expansion of Oakridge Centre. The mall will see its retail component expand substantially, including at least two newly-built department stores. Other features and amenities will be added to the project with a total estimated cost of about $1.5 billion.

To view a slideshow illustrating the mall’s expansion, click the image above. All images are by mall landlord Ivanhoe Cambridge.

The mall’s retail component will more than double in size, from about 604,500 square feet to about 1.365 million square feet. A new department store anchor at the southern end of the mall was originally proposed to be about 155,000 square feet. Oakridge had been targeting Nordstrom, Saks Fifth Avenue or Bloomingdale’s as this department store anchor, though we’ve been told that these plans may have since been changed. Hudson’s Bay and Target will both get newly constructed store spaces at the north end of the mall, while the possible third unnamed department store and a grocery store will anchor the mall’s south end.

Click the photo above for the mall’s tentative second level floor plan, as well as a plan of what will go above the mall.

Outdoor retail will also be featured at the mall, providing the opportunity for stores and restaurants to remain open after the mall closes. This outdoor component may also include ‘neighbourhood stores’, complementing the indoor mall that is expected to attract even more national and international retail chains. Impressively, the mall will employ about 2,200 people when completed.

In total, 14 residential towers between nine and 44 stories will be built above the expanded mall, housing an estimated 6,200 people in over 2,900 residential units. In addition, there will be a nine-acre rooftop park, a community centre/senior’s centre, library, daycare and other new amenities at Oakridge.

The entire project is expected to be completed by 2024.