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Vancouver Port Strike will hurt Canadian retailing: Retail Council of Canada

Image: Port of Vancouver

Strike action by container truckers is scheduled to begin today at 12:00noon PST at the Port of Metro Vancouver‘s container terminals. The Retail Council of Canada (RCC) wants to avert the strike at Canada’s busiest port, as the resultant disruption of goods will have negative consequences for Canada’s retail industry. 

According to the RCC, this disruption of container traffic comes at a time when there is already a significant backlog of containers as a result of weather conditions in Central and Eastern Canada. According to Diane J. Brisebois, President and CEO of the RCC, “The operation of the Port of Vancouver is of vital importance to the retail industry across Canada. Retailers view the current labour dispute with growing concern.”

The Port of Metro Vancouver handles over $170-billion in goods annually. Even a few days’ disruption can have a major economic impact on Canada’s retail industry.   “Our greatest concern is that Canadian consumers will not be able to obtain the goods they require.  While it may be possible to re-route some containers through U.S. west coast ports, one inevitable consequence of doing so will be higher prices for consumers and lower economic activity in Canada,” Ms. Brisebois added.

The RCC noted that the strike will have an impact on Canadian consumers, and that there will also be potential consequences for retail employment if goods are not getting through.  

SOURCE Retail Council of Canada press release

Confirmed: Holt Renfrew to expand and renovate its Toronto Bloor Street flagship

Holt Renfrew president Mark Derbyshire confirms that Holt Renfrew is planning a major renovation and expansion of its Bloor Street flagship store in Toronto. Construction will begin in the fall of 2014, though some improvements are already underway. 

These renovations follow the announcement that Holt Renfrew will create a separate 14,000 square foot men’s store at 100 Bloor Street West, replacing a Roots flagship store. Holt Renfrew will continue carrying menswear at its 50 Bloor Street West flagship store as well, and last week it launched a new menswear area called the ‘White Room’ (not to be confused with Hudson’s Bay‘s men’s designer area called ‘White Space’), as well as a renovated men’s shoe area. 


New men's 'White Room' on the concourse level at Holt Renfrew, 50 Bloor St. W. [ Image Source ]New men's 'White Room' on the concourse level at Holt Renfrew, 50 Bloor St. W. [ Image Source ]

New men’s ‘White Room’ on the concourse level at Holt Renfrew, 50 Bloor St. W. [Image Source]

The 179,000 square foot Bloor Street Holt Renfrew store is expected to have several levels of new retail space, as well as a new facade that will heavily utilize glass and glazing. We’re awaiting further details on what Holt Renfrew has planned. Originally, Holt Renfrew envisioned an eight-floor store beside a substantial residential tower, though we’ve been told that these plans may have changed. 


Proposal for the 200,000+ sq ft renovated and expanded Holt Renfrew store (rendering: City of Toronto)Proposal for the 200,000+ sq ft renovated and expanded Holt Renfrew store (rendering: City of Toronto)

Proposal for the 200,000+ sq ft renovated and expanded Holt Renfrew store (rendering: City of Toronto)

Derbyshire briefly discussed the store’s proposed renovation and expansion to Women’s Wear Daily, which is our source for this article. We were unfortunately denied an interview with Derbyshire.

We’ll keep you updated when we learn more about Holt Renfrew’s Bloor Street expansion. 

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Space available (again) as Roots abandons 89 Bloor W. in Toronto

Image: 89 Bloor Street W

It appears that the long-vacant retail space at 89 Bloor Street West in Toronto is potentially available for lease, again. Last month we interviewed Roots Canada co-founder Michael Budman, and we asked asked him about a lease Roots had signed for a 1,700 square foot space at 89 Bloor Street West, formerly occupied by MAC Cosmetics.

Mr. Budman began by confirming what industry insiders already knew: that Roots Canada intended on opening a store in the narrow 89 Bloor retail space that was once a residential townhome. Despite the awkwardness of the space, it lies on one of Canada’s most prominent retail locations, alongside retailers such as Hugo Boss, Harry Rosen and Porsche Design (whose lease is expiring soon) and just up the street from super-luxury retailers Chanel, Hermes, Prada, Cartier and others. Now that Roots has announced that it will instead locate its Bloor Street flagship at 80 Bloor Street West (replacing a Gap Kids store), the 89 Bloor space may be available.

Mr. Budman also expressed that Roots may look to utilize 89 Bloor for some purpose, although we’re not sure what he might have in mind. We’ve also been informed by brokers that the space is available for sublease. If anyone is interested in subleasing this space, feel free to contact Craig Patterson at: craig@retail-insider.com and he’ll put you in touch with the right people. 

The Future of Retail Store Design: Interview with figure3’s Tara O’Neil

Grocery Store Concept Art

The store of the future will look different from what we know today. A store specifically designed to fit seamlessly into our lives may be next, according to figure3‘s Vice President of Retail Strategy and Design, Tara O’Neil. Ms. O’Neil discussed grocery retailing and how in the near future, we may see store layouts modified to enhance the grocery store shopping experience. As online grocery shopping becomes more commonplace (Loblaw is testing it, as is Amazon), bricks-and-mortar grocery stores will correspondingly need to adapt. We can expect an in-store retail experience that is both more ‘exciting’ and ‘personal’, as well as more logical and convenient.

Ms. O’Neil explained how Canadian grocery stores may require a ‘shot in the arm’, design-wise, to re-invigorate the bricks-and-mortar grocery shopping experience. She discussed how the customer needs to be taken into consideration when designing stores, and how stores need to become more intuitively laid out. If the consumer is shopping for dinner, for example, Ms. O’Neil suggests that the protein or meats at the centre of the consumer’s plate also be at the centre of the grocery store experience. The same would go for vegetables, be they fresh, frozen or canned, to make meal planning easier. She then went on to discuss how store planners need to think about how people think, and capture their thoughts and feelings in the store experience. Grouping food categories in one area of the store may be an answer, as they are often separated within Canadian grocery retailers.

Ms. O’Neil discussed an unexpected result of a design research project figure3 conducted, relating to how people conceive buying fresh food in cities. Some urban shoppers described their desire to become more ‘connected’ to the food they buy. Specifically, many shoppers now want to know where their food comes from, how it was grown, and even what farm it originated from. In a world where food may have come from thousands of miles away, many shoppers now want to experience (or re-experience, depending on their age and/or background) a localized experience regarding their food purchases. That is to say that they want to experience a certain level of knowledge (and thus power) regarding their food purchases. The increased popularity of farmer’s markets and the trend of buying local may become more common in grocery stores as surveys reveal this trend.

We discussed figure3’s design of Edmonton’s La Maison Simons store. We visited the West Edmonton Mall location in January and we were very impressed with its design, not to mention its merchandising and readily available, helpful staff. Figure3 put extensive efforts into the store’s design and it paid off – the store has won several awards including, most recently, the EuroShop Retail Design Award for being one of the top three retail stores of 2013 (the first time a Canadian design firm has been recognized for the top design award). Figure3 is also designing the new La Maison Simons stores that will open within the next couple of years at Square One in Mississauga, as well as Simons at Ottawa’s Rideau Shopping Centre.

Canada’s increasing urbanization is another trend we discussed. As Canadian city centres see an increase in their residential populations, grocery stores are adapting by opening smaller-format locations to fit these densely populated areas. We’ve already seen this in cities like Vancouver, where upscale grocery chain Urban Fare has opened 20,000-25,000 square foot stores and in Toronto, where stores like Sobeys continue to open smaller locations catering to local residents.

We lastly went on to discuss the difference between Canadian and American shoppers. Overall, Canadian shoppers tend to be less price-sensitive when shopping, as they are more likely to seek ‘value’ in their purchases. American consumers, on the other hand, tend to be more price-sensitive and it shows: coupon use among Americans is substantially higher than that north of the border. American retailers may have to recognize this difference when moving north of the border, as the Canadian consumer can be considered shrewd and educated.

The future of retail will be an exciting one. Figure3 and other innovative design firms will no doubt be designing stores that will utilize some of what was discussed above. 

North America’s Most Productive Shopping Centres in 2013


2North Grand Court Somerset North1.JPG copy_0.jpg2North Grand Court Somerset North1.JPG copy_0.jpg

By: Hilary Taylor

We’ve created an updated list of North America’s most productive shopping centres for 2013. Some of the per-square-foot sales numbers are lower than those from last year’s rankings. This might have something to do with different sources being used: our 2012 numbers were from KPMG and this year’s numbers have been either independently researched or directly confirmed by mall landlords themselves. Ryerson University’s Hilary Taylor contacted mall landlords and further researched this topic, coming up with this list of the 10 most productive malls in North America for 2013: 

  1. Bal Harbour Shops, Bal Harbour, Florida, USA: US$2,793 /sq. ft.
  2. The Forum Shops at Caesars Palace, Las Vegas, Nevada, USA: US$1,750 /sq. ft.
  3. The Grove, Los Angeles, California, USA: US$1,400 /sq. ft.
  4. Pacific Centre, Vancouver, British Columbia: C$1335 /sq. ft.
  5. Yorkdale shopping Centre, Toronto, Ontario: C$1300 /sq. ft.
  6. Toronto Eaton Centre, Toronto, Ontario: C$1275 /sq. ft.
  7. Mall at Millennia, Orlando, Florida, USA: US$1,250 /sq. ft.  
  8. Oakridge Shopping Center, Vancouver, British Columbia: C$1,132 /sq. ft.
  9. The Mall at Short Hills, Short Hills, New Jersey, USA: US$1,110 /sq. ft.
  10. Chinook Centre, Calgary, Alberta: C$1,108 /sq. ft.

    For the numbers above, all American malls are in US Dollars while Canadian malls are in Canadian Dollars. For most of 2013, Canadian and American currencies were similarly valued. This hasn’t been the case so far in 2014, so it remains to be seen how next year’s rankings may change.

    Examining the numbers further, Vancouver and Toronto are the only two North American cities to boast two top-10 malls. Vancouver’s Pacific Centre continues to be the most productive shopping centre in Canada with sales exceeding $1,335 per square foot. Toronto’s impressive Yorkdale Shopping Centre is second and not far behind. Yorkdale is expected to become North America’s top-selling mall with sales forecasts of $2 billion by 2018.

    Noticeably absent from our 2012 list was the Bal Harbour Shops, which is a privately-owned luxury mall near Miami. KPMG excluded them from its report. The Bal Harbour Shops is reportedly the most productive shopping centre in the world when viewed by sales per square foot.

    We will update this top-ten list at the end of 2014 to determine if bricks-and-mortar malls are being affected by an increase in online shopping. We’ll also have to take into account currency fluctuations as they arise over the course of the year. 

    Unfortunately, it appears that several American malls may have pulled ahead of Vancouver’s Pacific Centre as the most productive mall in North America. As an interesting side note, a substantial increase in the sales per square foot for Los Angeles’ The Grove this year may may be owed to the mall’s new TopShop/TopMan store. It opened in February of 2013 and according to therichest.com, the relatively small store location is estimated to be “the chain’s No. 2 performing outlet in the U.S. after New York”.

    Mall productivity numbers may shift as several malls see substantial changes over the next couple of years. Three of the four most productive Canadian malls (excluding Vancouver’s Oakridge Centre) will see Nordstrom stores open by 2016 or sooner, along with related mall expansions and renovations. Nordstrom (and possibly new Saks Fifth Avenue stores) may propel Canadian malls further above their American counterparts. 

    It should come as no surprise that malls this holiday season were full of ‘SALE’ signs- and not a mere 20% either – most sales started at 40% and escalated from there. And yet, even these sales didn’t provide the necessary push to bring consumers back in to the malls and away from their desktops. The Newsfactor Business Report provides some insight. “Online shopping is going to be the darling of the holiday shopping season,” said Marshal Cohen, chief retail industry analyst at The NPD Group. “It may grow a little more than the 20% that was expected before the season began. The consumer is spending more time online trying to find deals.” Retailers and mall landlords need to keep this retail trend in mind when forecasting future plans for sales per square foot as well as expansion. Are malls becoming product showrooms, or will consumers always reliant on the in-store experience? 

    *The top image is courtesy of The Somerset Collection in Troy, Michigan.

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    Hilary Taylor is a 4th year Retail Management student at Ryerson University in downtown Toronto. She is very passionate about the Retail Industry and decided to spend her free time writing posts for the Retail Insider because that is what gets her excited! She also spends her time studying hard at school and leading a team of students as the President of the Retail Students’ Association at Ryerson University. Eager and enthusiastic, Hilary is also looking for new opportunities to share her love for the Retail Industry. Follow her retail experiences on twitter @hhilarytaylor

    Suitsupply Toronto grand opening: review by Tristan Amato [with photo slideshow]

    By Tristan Amato

    Last week (February 20th, 2014), I was lucky to be invited to the opening of Suitsupply’s first Canadian location in Toronto. It is located at 9-11 Hazelton Avenue in Yorkville, one of Canada’s most exclusive shopping districts. The store itself is in an old mansion that has been converted into a classy modern space. Although the store isn’t big, the brilliant placement and use of mirrors inside, really helped to expand the space.

    Known for their controversial advertisements, two oversized floor to ceiling ads of scantily-clad women greet you in the main area giving the store a younger, more hip vibe. Their brightly coloured mannequins were also a nice touch to the stores appearance. Their colorful wall display of ties which resembled an art mural was my favourite display.

    Although the company’s target customer is a younger, well to do business type, the suits are still respectfully traditional in terms of colour and style and are very well tailored. Suitsupply provides well-crafted suits for any man wanting to look his very best.

    Suitsupply is definitely a store worth checking out next time you’re in Toronto.

    Article and photos by Tristan Amato, fashion student. 

    *To begin viewing the photo slideshow of the store, click the top image*

    RELATED: 

    [Suitsupply website]

    Toronto: Four floors of flagship retail space to be built below a new Queen Street condo tower


    Screen Shot 2014-02-26 at 10.12.33 PM.pngScreen Shot 2014-02-26 at 10.12.33 PM.png

    A condominium tower with four floors of retail space will replace a surface parking lot just off the corner of Queen Street West and University Avenue in Toronto. Its address will be 219 Queen Street West. The tower’s retail base will feature over 24,500 square feet of retail space, which is expected to be available some time in 2016. One tenant could occupy the entire retail podium, or the space could be divided for multiple retailers. 


    Screen Shot 2014-02-26 at 10.12.57 PM.pngScreen Shot 2014-02-26 at 10.12.57 PM.png

    It will be interesting to see which retailer or retailers will occupy this space. Situated between Toronto’s Financial District and the trendy Queen Street West shopping area, the location is prime: the pedestrian counts are high and the immediate area has seen a surge in new condominium dwellers. The tower immediately above 219 Queen West’s retail has been aptly named ‘Smart House‘. The 25-story tower will contain nearly 200 condominium units.


    Screen Shot 2014-02-26 at 10.13.50 PM.pngScreen Shot 2014-02-26 at 10.13.50 PM.png

    219 Queen’s retail space features dramatically high ceilings with extensive exposure along Queen Street West. Plenty of branding and signage opportunities will be available. The location is rendered even more exceptional by its close proximity to the TTC Osgoode subway station and the Queen Street streetcar line. Pedestrian access will also be easy, as 219 Queen West is adjacent to the Financial District and the Queen West shopping area. Shipping and receiving access for the retail space will be conveniently located to the rear of the building via a laneway off of Simcoe Street.

    Click the image directly above for a slideshow of each of the retail space’s four floors. For further details, including asking lease rates for 219 Queen Street West, you may contact one of the listing representatives at Ashlar Urban Realty Inc., below:

    ASHLAR URBAN REALTY INC. REAL ESTATE BROKERAGE, 166 Pearl Street – Suite 300, Toronto, ON M5H 1L3. T 416 205 9222. F 416 205 9228. www.ashlarurban.com

    Versace to open at Toronto’s Yorkdale Shopping Centre

    Image: Versace

    Versace will open a free-standing store at Toronto’s Yorkdale Shopping Centre, according to the City of Toronto Development Applications website. Versace will occupy space #160 in the mall’s ‘luxury hallway’ beside Salvatore Ferragamo and neighbouring luxury retailers Tiffany & Co., Burberry, Cartier, David Yurman, Mulberry and others. 

    According to Yorkdale’s lease plan, space 160 is about 2,500 square feet. We’re not sure if Versace will expand into the adjacent 3,873 square foot space formerly occupied by a Holt Renfrew ‘pop-up shop’. 

    This will be Canada’s second Versace store location, though it will technically be Canada’s only free-standing Versace store. Vancouver has a licensed Versace boutique located within Luxury retailer Leone at the Sinclair Centre. This Vancouver Versace location opened along with Leone in 1987. 

    Since the 1990’s, Toronto has seen several franchised Versace store locations. Versace locations on Hazelton Avenue, at the Hazelton Lanes shopping centre and on Bloor Street have opened and closed over the years. Rumour has it Versace is currently looking for Yorkville store space as well, though we can’t confirm a location. 

    Thank you to source ACT7 of Urban Toronto.

    Woman trapped in Hudson’s Bay store is rescued

    A woman became trapped in a Downtown Toronto Hudson’s Bay store after it closed Wednesday evening. Emily Keeler had been shopping at the Yonge and Bloor Hudson’s Bay store (which until recently was expected to become a Saks Fifth Avenue store) when she discovered that the store had been closed and she could not get out. Ms. Keeler fortunately had access to her Twitter account and provided comment and photos of her experience.

    We and others watched on Twitter while Ms. Keeler sought ways to exit the store. Some Twitter followers made light of the situation: for example, references to the popular 1980’s children’s TV show Today’s Special (which took place after hours at Toronto’s Simpson’s department store, now the flagship Hudson’s Bay ‘Queen Street’ store). 

    After various attempts to find her way out, a store manager (or managers?) set her free. The entire ordeal appears to have lasted about 40 minutes. Ms. Keeler has declined to provide interviews on her experience.

    [Hudson’s Bay website]

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    Clearly Contacts bought by French company for $430-million

    Vancouver-based Coastal Contacts (which also does business as Clearlycontacts.ca and Coastal.com) has been bought by a French company for $430 million. The buyer, Essilor International, is the world’s largest manufacturer of prescription eyewear lenses. Essilor payed a premium for Coastal Contacts, and the deal is expected to close within the next 90 days pending shareholder and regulatory approval.

    CEO Roger Hardy, who owns more than 10% of Coastal Contacts, stated: “The combination will enhance Coastal.com’s ability to achieve its goals while realizing a significant all-cash premium for our shareholders. I am confident this merger is the right decision for Coastal.com, our employees and our shareholders.” His company’s board of directors unanimously approved the sale.

    Coastal Contacts’ share price surged with the announcement of the deal. Essilor offered $12.45 cash per share. The company’s previous three-month, volume-weighted share price average was about $8.73 prior to the takeover announcement, while its six-month average was $6.78, only just over half of Essilor’s offer.

    Coastal Contacts has roughly 750 employees with about 400 in Vancouver, 80 in Blaine, Washington, about 200 in Sweden and a number of employees in Australia and in New Zealand, according to Mr. Hardy. “Eighty-five per cent of our employees are shareholders, so this is an exciting moment for them,” he said.

    Besides its onine business, ClearlyContacts.ca now operates bricks-and-mortar store locations in Vancouver and Toronto. It will open more Canadian stores as well as international locations. We’ll soon be announcing another Canadian ClearlyContacts.ca bricks-and-mortar store location, which will be its first store within a shopping mall.