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Holt Renfrew to replace Toronto’s Roots flagship with a men’s store

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Retail Insider
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[ Image Source ][ Image Source ]

[Image Source]

 

Holt Renfrew has leased the corner retail location at 100 Bloor Street West in Toronto, and it has confirmed by Twitter that it will open a men’s store on the site. The space’s former leaseholder was Roots Canada. Few details are known about the new men’s store which will compete with menswear retailer Harry Rosen , who’s flagship store is directly across the street.

BREAKING NEWS We are excited to announce that we will be opening a standalone men’s shop this fall at 100 Bloor St W #holtsmen#comingsoon

— Holt Renfrew (@HoltRenfrew) February 6, 2014

We were first notified that Holt Renfrew was in negotiations for the 100 Bloor Street West retail space on January 13th. Immediately after, brokers and insiders began emailing us, asking for details on a new ‘menswear concept’ that they had heard would be opening in the former Roots space. Some speculated that Holt Renfrew’s men’s store would exit its 50 Bloor Street West flagship entirely so that it could relocate to 100 Bloor Street West. Not knowing details of the men’s store and realizing the space is substantially too small for an entire Holt Renfrew men’s store, we held off reporting on it until now, after the Globe & Mail revealed its research that a Holt Renfrew men’s store will open in the space.

According to lease plans provided by 100 Bloor’s landlord, the former Roots space is in excess of 15,000 square feet. The Globe & Mail reports that the adjacent Body Shop store will also close as Holt’s will occupy both retail spaces. Given the relatively small size of this retail space compared to the size of its flagship men’s store, we’re not sure exactly what Holt Renfrew has planned for the space.

For size comparisons, Holt Renfrew’s Vancouver men’s store is about 25,000 square feet. Its Calgary men’s store is just over 19,000 square feet, while its Yorkdale men’s store spans 18,000 square feet. Contemplating these sizes and also noting that Holt Renfrew plans to expand the size of its Bloor Street flagship, we were left scratching our heads wondering what Holt’s has in store for the former Roots space. We had suspected that the space could be devoted to the company’s new unisex ‘Holts Commons‘ concept, noting that Holts Commons had opened in a 7,000 square foot  space at Holt Renfrew’s Yorkdale store. At the same time, we doubted that the substantial rents for this prime Bloor Street corner location would be appropriate for the mid-priced Holts Commons concept.


Competitors Harry Rosen and Holt Renfrew will be close neighbours. Photo: Google StreetviewCompetitors Harry Rosen and Holt Renfrew will be close neighbours. Photo: Google Streetview

Competitors Harry Rosen and Holt Renfrew will be close neighbours. Photo: Google Streetview

Menswear retailer Harry Rosen‘s 55,000 square foot flagship store is directly across Bellair Street from this new Holt’s men’s store. Harry Rosen will continue to be a very strong competitor. Its flagship carries some of the world’s top menswear designers and features shops-in-store for such luxury labels as Tom Ford and Giorgio Armani Black Label. It will be interesting to see what Holt Renfrew will attempt with a space less than a third the size of Harry Rosen.

Both Holt Renfew and Harry Rosen may find some relief now that Saks Fifth Avenue has announced that rather than building a massive 300,000+ square foot flagship nearby, it will locate within Hudson’s Bay’s Queen Street flagship store. A source at the Hudson’s Bay Company tells us that they expect Saks Fifth Avenue will also try to compete head-to-head with both Holt Renfrew and Harry Rosen, as well as Nordstrom when it opens in Canada

.We’ll keep you updated on Holt Renfrew’s new menswear concept on Bloor Street, as well as its renovation and expansion plans for its 50 Bloor Street West flagship store.

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Harry Rosen kicks off its 60th anniversary celebrations

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Retail Insider
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Menswear retailer Harry Rosen is celebrating its 60th birthday, starting this weekend. We’ve been told that many new things will be in store and we’ll report on them over the coming weeks and months.


On Saturday, February 8th, Harry Rosen will begin celebrations by giving out cupcakes at its stores.


One of its biggest 60th birthday announcements, made already, is the construction of a new 18,000 square foot flagship store at Ottawa’s Rideau Centre. It will join new retailers at the mall including a 157,000 square foot Nordstrom store, as well as a 105,000 square foot La Maison Simons store.


We’ll also do an updated article on the company’s Yorkdale Shopping Centre store, which has seen substantial upgrades as well as a considerable expansion that now has it occupying more than 30,000 square feet.


Harry Rosen will no doubt see increased competition as Saks Fifth Avenue opens Canadian stores, and Holt Renfrew continues to expand. Holt Renfrew will open a menswear store directly across the street from Harry Rosen’s 55,000 square foot Toronto Bloor Street flagship, though Holt’s store will be considerably smaller.


We’ll keep you updated on what changes are in store for Harry Rosen as it celebrates 60 years of operations in Canada.


[Harry Rosen website]

Sears Canada takes on lululemon with new, moderate-priced yoga and athletic wear

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Retail Insider
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Photo: Sears Canada

Sears Canada appears to be taking on Lululemon and other athletic wear competitors with the launch of PURE NRG Athletics, a line of performance clothing for active women seeking high-quality fashionable workout wear at moderate prices.  

The PURE NRG Athletics line includes an assortment tank tops, t-shirts, shorts, pants, hoodies and zip-ups with functional features such as four-way stretch and Cool Effect® wicking fabric, flatlock seams to help prevent chafing, pants with a contoured waistband, tops with a breathable built-in power mesh bra and more. All of the pieces in the collection range from $10 to $50.

“We are excited to launch our PURE NRG Athletics line of activewear,” said Doug Campbell, President and CEO, Sears Canada. “Now Canadian women can get high-quality athletic wear at prices that are reasonable and as close as their nearest Sears store or their own doorstep if shopping on sears.ca.  We think our customers will see the combination of the quality and price of PURE NRG Athletics as filling a space in the marketplace that has not been otherwise addressed.  The development of private brands that provide superior features and benefits at affordable prices is a strategy Sears will continue to use to offer uniqueness and exclusivity to Canadians coast to coast.”

A comprehensive, innovative marketing strategy, including national advertising, PR, flyers, outdoor and digital campaigns will support the launch.  Additionally, Sears is activating media in local gyms and fitness studios within close proximity to top stores with advertisements in the change rooms. In select locations this is augmented with mannequin displays in the main gym area and instructors wearing the PURE NRG Athletics collection.

SOURCE Sears Canada press release.

Top image: Sears Canada.

[Sears Canada website]

Experiment is working: tariff reductions lead to big savings for Canadians

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Retail Insider
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Savings at the rink (CNW Group/Retail Council of Canada)

The Retail Council of Canada released information today that demonstrates tariff reductions are paying off for Canadian consumers.  In Budget 2013, the Minister of Finance introduced an important pilot project on the reduction of customs tariffs, with the first step being the elimination of duties on baby clothes and most sports and athletic equipment.  As we approach the first anniversary of that important decision (March 21, 2013), The Retail Council of Canada conducted a sampling of its members to assess the effectiveness of tariff reductions.

“The elimination of these tariffs, which ranged from 2.5 per cent to as high as 20 per cent, has made a real difference to the prices paid on products bought and used every day by Canadians.” said Diane J. Brisebois, President & CEO of the Retail Council of Canada.

Savings at the rink (CNW Group/Retail Council of Canada)

Highly-regarded Nielsen Canada has been contracted to conduct a study on the pass through of savings to Canadian consumers.  Nielsen, which is expected to report in fall 2014, is looking at a large number of items, measuring prices both before and after tariff elimination.

“While the Nielsen study will be the definitive analysis of the effect of tariff reduction, the Retail Council of Canada can say conclusively that the savings to consumers are already clear.  The Government made the right decision, for businesses and consumers alike,” Ms. Brisebois added.

Savings for families (CNW Group/Retail Council of Canada)

The Retail Council of Canada looks forward to working with the Government of Canada on future tariff reductions on a wide range of goods sold at retail. RCC will work to ensure that all players in the retail business, manufacturers, importers and wholesalers, join retailers in passing on savings leading to lower retail prices.

The Retail Council of Canada (www.retailcouncil.org) is the Voice of Canadian Retail. Founded in 1963, RCC is a not-for-profit association which represents more than 45,000 stores of all retail formats, including department, grocery, independent merchants, regional and national specialty chains, and online merchants.

SOURCE Retail Council of Canada

press release

Canada’s 4th Microsoft Store opens Saturday at Mississauga’s Square One

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Retail Insider
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Microsoft at Square One Map

Canada’s fourth Microsoft Store opens at 10:30am on Saturday, February 8th, 2014 at Mississauga’s Square One Shopping Centre. It will also be the second store location in the Toronto area. On Sunday, February 9th, American rock band Weezer will perform near the store, with gates opening for the performance at 12:00pm. 

The store is just over 3,500 square feet in size. 

Canada’s first Microsoft Store opened over a year ago in an expanded portion of Toronto’s Yorkdale Shopping Centre. A second location opened October 26th, 2013 at West Edmonton Mall. A third location opened November 7th, 2013 at Burnaby BC’s Metropolis at Metrotown.

Microsoft will be donating software to local community organizations during the ribbon-cutting ceremony. 

Photo: Microsoft Canada (via Twitter)

The following are some of the products and services one can see at a Microsoft Store:

  • A curated assortment of products, including Surface, Windows 8 PCs, Windows Phones, Xbox One, Office products, and more.
  • A range of tech trainings, business-ready PCs, phones and more. 

[Square One Shopping Centre website]
[Microsoft Store website]

Karen Millen to open Canadian stores. First location: Montreal’s Rockland Centre

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Retail Insider
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Karen Millen Montreal's Centre Rockland

Upscale British-based fashion house Karen Millen will open its first Canadian store at Montreal’s Centre Rockland. 

For those unfamiliar, Karen Millen is an upscale womenswear retailer with over 350 stores and concessions throughout the world. In North America it has over 20 stores and concessions. It is also featured within several Bloomingdale’s stores. 

Montreal’s Karen Millen store is also hiring a store manager. If you are interested, we’re including a link to its job posting. 

Thank you to source David Goldman. 

[Centre Rockland website]

[Karen Millen website]

Sport Chek opens its massive flagship at West Edmonton Mall

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Retail Insider
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Youtube video
Sport Chek has opened what it considers to be its flagship store at West Edmonton Mall. Also featured is its outdoor sports concept Atmosphere, which occupies about 21,000 of the store’s 77,000 square feet of retail space.  



Technology is prevalent throughout the store. In total, 800 screens populated by 220 channels display product images and deals, store-wide anthems, and local sports information. In total, the store boasts about 1,200 square feet of digital projection. 

Photo: Sport Chek



According to Sport Chek, about 250 in-store staff will use digital installations, interactive technology and product displays which will feature top brands to provide detailed and personalized service to customers. 


Youtube video
 

 

“Our new flagship store in West Edmonton Mall is the most digitally advanced and personalized retail experience in the world,” said Michael Medline, President of Canadian Tire Corporation (which owns Sport Chek). “We have created an energy filled experience for anyone who is passionate about a great customer experience and shopping for an unparalleled array of sporting goods.” (video above)

 

 

The store is located on the second floor of the mall’s ‘Phase III’, next to H&M.

Pedestrians or drivers: who is more important in retail environments?

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Retail Insider
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By David Fitzpatrick

According to several studies conducted on retail spending behaviour, customers arriving at street retail areas as pedestrians often spend more per week than drivers. In a recent article, we showed the results of one such study:

Research conducted by Transport for London illustrates transit users, cyclists, and pedestrians spend more per week on retail than car customers because they visit retail destinations and town centres more often. Similar findings have been seen in studies conducted in North America.

Although these figures are great for illustrating why pedestrian access should be taken seriously, there is an important qualifier that needs to be added. We know that drivers, on average, have higher per capita incomes than non-drivers. If this is the case, then why do pedestrians keep outranking drivers in spending in these studies? This discrepancy is a result of the geographic dispersion of retail spending, a factor which varies by mode of travel. By this I mean that households with access to vehicles will travel further to shop, spending money in more targeted clusters over a broader geographic region. Those on foot, however, tend to spend money closer to home due to their higher friction of distance. This variable is referred to as “distance decay”, or the probability that an individual will travel for a certain purpose by increasing distance. For more on this, check out: Access to Destinations: How Close is Close Enough? Estimating Accurate Distance Decay Functions for Multiple Modes and Different Purposes.

In planning retail and mixed use environments, it is important that we accommodate for all modes of travel. Studies have shown that there is a tendency among retailers to overestimate the volume of customers arriving by vehicle, and underestimate the numbers arriving by other modes. Combined with the significant infrastructure costs required to accommodate cars, this perception has historically led to strategically poor investments in road improvements and municipally subsidized parking garages.

On the flip side, urban planners often do not appreciate just how important vehicle drivers are to retailers. I am often told that parking isn’t necessary on good retail streets, or that vehicle traffic should be removed outright in favour of pedestrianization. Robert Gibbs, a recognized urban retail specialist, has written about the failed experiment of pedestrian malls across North America, highlighting that approximately 90% of attempts have been subsequently removed. Customer surveys show that even the most successful of retail streets still rely on vehicle drivers for sales, with examples including; 10% of customers in Toronto’s Annex and 21% in Bloor West Village, 53% of customers at Toronto’s St. Lawrence Market, 15% of customer’s at San Francisco’s Polk Street, and 20% of customers in downtown Vancouver. The recent addition of bike lanes into downtown Vancouver has been associated with a loss in sales of 4% to 10% among adjacent businesses, a decline described in this consultant study as “moderate based on industry standards and, in general, insufficient to create persistent vacancies“. I find this statement inconsistent with the realities of running a small business where that last 5% of sales can make all the difference in profitability.

At the end of the day, it is not about which customer segment is more important, so much as it is figuring out how to attract sufficient spending inflow in the most cost effective way possible. I believe that there is a very strong case to make for giving pedestrian movement more investment and focus than is typically the case in standard  planning and development practice across North America.  Parking is expensive, a relatively inefficient use of land resources, and can negatively impact the customer’s shopping experience. At the same time, be weary of anyone who claims that retail does not require vehicle access to thrive and offers seemingly simplistic solutions to a very complex issue.

[Source: Original article by David Fitzpatrick]

David Fitzpatrick is a registered urban planner and currently manages special projects within the Chief Planner’s Office at the City of Toronto. David has a passion for urban retail development, and has consulted on over a hundred projects around the world ranging from downtown revitalization strategies to new super-regional centres. On reurbanist.com, he combines his interests in urban planning and retail development, writing about how the intersection of these two fields can lead to positive outcomes for both people and cities. In addition to his professional work, David is the Chair of SALEA, a charity he founded with a friend in Tanzania to support legal aid in East Africa. LinkedIn Profile

Ogilvy & Holt Renfrew merger in Montreal: a winning strategy?

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Retail Insider
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Combined store rendering: City of Montreal

By Mounia Ayoub 

Montreal’s Ogilvy and Holt Renfrew stores will merge, forming one of the largest department stores in North America, slated for completion in late 2017. The Holt Renfrew store on Sherbrooke Street will close and the Ogilvy store located on the trendy Sainte-Catherine Street West will be revamped and expanded northward on the site of the former Hotel de La Montagne. It is the only Ogilvy/Holt Renfrew-merged store planned so far in Canada.

Ogilvy and Holt Renfrew are heritage brands founded in Quebec: Ogilvy in 1866 in Montreal, and Holt Renfrew in 1837 in Quebec City. Both now belong to Selfridges Group Ltd., owned by the Weston family of Toronto which also controls Selfridges in the United Kingdom, Brown Thomas in Ireland and 

de Bijenkorf in the Netherlands (and grocer Loblaw Companies Ltd. in Canada). The new department store will take the (long) name in French of Ogilvy, membre de la collection Holt Renfrew & Co.

The purpose of this merger is to boost sales in Montreal by combining and developing the strengths of both stores. As the Vice-President of Holt Renfrew, Joanne Nemeroff, pointed out in an interview with La Presse Affaires, the decision to merge both stores was made after a market study (confidential sources) showed that the Holt Renfrew customers wanted a larger range of products with a new assortment of brands while the Ogilvy customers were asking for a new dynamism. Moreover, according to Mark Derbyshire, President of Holt Renfrew, the strategy of targeting the customers of both stores the same way remains consistent since these customers have a lot in common. “We think we can offer them something bigger in one place instead of two,” as M. Derbyshire stated in his interview with La Presse Affaires.

Current Holt Renfrew store on Sherbrooke St. W

Holt Renfrew opened its store in Montreal on Sherbrooke Street in 1937; historically it has been the go-to place for fashion addicts in search of unique contemporary designer clothing and modern luxury accessories. On the other hand, Ogilvy has the reputation of offering a range of much more classic brands. We will see in the future if the regular Holt Renfrew customers will accept to change their shopping habits and leave the luxury Sherbrooke Street district to make their purchases on the less fashionable Sainte-Catherine Street.

What is more, this merger of the two stores in Montreal should allow the group to arm itself for the coming luxury battle with the arrival of its next big competitor, the New York-based luxury department store Saks Fifth Avenue. Saks was acquired by the Hudson’s Bay Co. (HBC) last November and 7 or 8 Saks Fifth Avenue stores are likely to open in Toronto, Montreal, Vancouver and possibly Calgary in the next few years. Two Saks Fifth Avenue stores should open in Montreal, one free-standing downtown store and one suburban store, possibly at Le Carrefour Laval.

Saks will be the main competitor of Holt Renfrew in Canada as it has the same luxury positioning, carrying the same prestigious brands, from Chanel to Prada to Gucci, including the same trendy designer labels such as Christian Louboutin, Manolo Blahnik, Jimmy Choo

 etc. Differentiation will therefore be difficult for both companies in Canada. We have reason to believe this Ogilvy/Holt Renfrew merger in Montreal is likely to facilitate the differentiation process as this new luxury megastore will add the classic, respected and well-established image of Ogilvy to the avant-garde spirit of Holt Renfrew.

Fortunately for the Selfridges Group, Seattle-based Nordstrom does not plan to open any high-end department store in Montreal so far. 

It will open only in Vancouver, Calgary, Ottawa and Toronto, taking over the mall’s Sears stores about to close in Canada (the first Nordstrom store in Canada should be opened in Calgary in 2014).

Besides the Saks issue, the other question raised with this Ogilvy/Holt Renfrew merger in Montreal is whether or not the market can support such a luxury megastore given Quebec’s market. With 220,000 square feet, the new Ogilvy/Holt Renfrew department store will be the largest luxury department store in Canada. Yet, according to EnvironicsAnalytics, only 4.1% of the population in Montreal had an income of $200,000 or more, compared to more than the double in Toronto, with 8.4%, and 5.6% in Vancouver in 2013. Moreover, 16.8% of the households earning more than $200,000 a year in Canada were living in Montreal against 44.8% in Toronto and 13.3% in Vancouver in 2013. Therefore one can wonder whether or not there is enough demand for luxury products in the area to warrant such a huge department store in Montreal.

The point is many Montrealers are used to shopping outside the city, whether it be in Toronto, the rest of Canada, or the United States. According to Alecsandra Hancas, Fashion Industry Analyst at the NPD Group, cross-border shopping is a serious issue in Canada overall since it represented an estimated $1-billion loss for Canadian retailers in the year to May 2013

1. Thus Ogilvy and Holt Renfrew’s executives expect that upscaling the luxury offering in Montreal will dissuade these customers from doing cross-border shopping and encourage them to make their purchases in this new Ogilvy/Holt Renfrew megastore instead.

In conclusion, this new Ogilvy/Holt Renfrew megastore will definitely change the luxury landscape in Montreal, and will probably contribute to the retention of the local customers who used to shop outside Montreal. The arrival of Saks in the next years will also upscale the retail market in the biggest city of the province of Quebec. In the meantime, this increasingly fierce competition in the luxury market will affect not only the department stores and their customers but also the suppliers, which will have to figure out how to distribute their collections without compromising past allegiances with Holt Renfrew or Ogilvy and without cannibalizing their current sales.

Mounia Ayoub is a luxury retail, fashion lover and a contributing editor for Retail Insider. Born in Paris and raised in Marseille, in the South of France, she is strongly attached to her Mediterranean roots. With a business background, she has worked for Marc Jacobs in Paris and contributed to consulting services at the French Trade Commission in Toronto for French luxury and cosmetic companies expanding their activities in North America. After living in Japan, New York City, Toronto and Paris, she has found in the multicultural city of Toronto the perfect pied-à-terre for now. 

Walmart to spend $500million on 35 Canadian supercentres and e-commerce

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Retail Insider
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[Image Source]

Walmart will invest close to $500 million to build 35 Canadian supercentres in 2014, as well as expand its distribution network and e-commerce projects. These projects will create more than 7,500 new store, distribution network, construction, and e-commerce jobs. The 35 supercentre projects will add about one million square feet of retail space to the Canadian market. 


The following is from Walmart Canada’s press release: 


Walmart Canada announced today that it plans to complete 35 supercentre projects in the company’s fiscal year which runs from February 1, 2014 to January 31, 2015. The company also announced it will expand its distribution network to support its growth and will continue to expand its e-commerce operation, walmart.ca. 


The projects will represent a combined investment of close to $500 million in the Canadian economy over the next year and will include the construction of new stores as well as the expansion, remodeling and relocation of existing stores.  The investments will include more than $376 million for store projects, $91 million for distribution network projects to grow Walmart Canada’s fresh food capability, and $31 million for e-commerce projects.  The combined expansion is expected to generate more than 7,500 jobs over the next year, including construction jobs.


“Customers in every region of Canada are looking to save money on their entire list of shopping needs,” said Shelley Broader, Walmart Canada’s president and CEO.  “Delivering on our commitment to help lower the cost of living is our top priority, and our growing network of supercentres and our expanding walmart.ca offering enable us to do just that.”


Walmart Canada’s supercentres provide an unparalleled one-stop shopping experience.  Each store carries more than 100,000 products ranging from groceries to apparel, home decor and electronics as well as specialty services such as pharmacies, garden centres and vision centres.


Walmart Canada’s online store — walmart.ca — is growing rapidly and offers more than 150,000 products including everyday needs such as toothpaste, shampoo, dry grocery items including gluten-free products, electronics, furniture, fitness equipment, barbecues, patio sets, and toys for children of all ages. The site offers a growing range of services including free shipping throughout most of Canada and easy Canada Post pick up.


The locations for specific store and distribution centre projects will be announced as specific projects become finalized.  Today’s announcement will bring Walmart Canada’s store count to 395 by the end of January, 2015, including 282 supercentres and 113 discount stores.


About Walmart Canada: Walmart Canada operates a growing chain of 389 stores nationwide, including 247 supercentres, serving more than 1.2 million customers each day.  In addition, Walmart Canada’s flagship online store, walmart.ca, is visited by 300,000 customers daily.


With more than 95,000 associates, Walmart Canada is one of Canada’s largest employers and is ranked one of Canada’s top 10 most influential brands.  Walmart Canada’s extensive philanthropy program is focused on helping Canadian families in need, and since 1994 Walmart has donated and raised more than $200 million to Canadian charities.  Additional company information can be found at walmartcanada.ca, facebook.com/walmartcanada and at twitter.com/@walmartcanada.


[Source: Walmart Canada press release]

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