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Indigo to Overhaul 6 Flagships, Open 4 American Girl Stores

PHOTO: URBANTORONTO.CA

Toronto-based book and gift retailer Indigo will renovate, expand and re-brand six key Chapters/Indigo locations, as well as open four American Girl doll shops-in-stores. Initiatives are scheduled to be completed by this fall. 

Each store will see its book assortment bolstered by thousands of additional titles, and additional retail space will be allocated to home décor, gift, paper, fashion, kids toys and gourmet. According to Indigo, Chapters locations at 2505 Granville Street in Vancouver, Edmonton’s West Edmonton Mall, Calgary Chinook Centre, and Calgary at 5005 Dalhousie Drive N.W., will be re-branded as Indigo. These locations, as well as Indigo flagships at Toronto’s Yorkdale Shopping Centre and Toronto Eaton Centre, will see substantial renovations. Both the West Edmonton Mall and Chinook Centre locations will also see 5,500 square foot additions. 

American Girl shops-in-stores will open at Indigo’s renovated Granville Street, Toronto Eaton Centre, Chinook Centre, and West Edmonton Mall locations. Each American girl boutique will measure between 1,400 and 1,800 square feet. When finished, Indigo will house six American Girl shops – Yorkdale and Ottawa Rideau Centre Indigo locations already house American Girl boutiques. 

PHOTO: CRAIG PATTERSON

Started 25 years ago as a line of dolls and books depicting pre-teen girls in historical times, American Girl is now a wholly-owned subsidiary of Mattel. Contemporary dolls have since been added. Its dolls are expensive, retailing at $125 for larger ones and $90 for its ‘Bitty Baby’ line, marketed to younger children. Doll clothing, books and movies are also available, as well as an in-store doll hair salon. Doll hairstyling costs between $5 and $25, while doll ear piercing costs $14. 

“Given our strong performance in Canada, we’re excited to partner with Indigo to open additional specialty boutiques,” said Jean McKenzie, president of American Girl. “These new locations will help us celebrate even more girls, and we look forward to creating a fabulous new opportunity for area families to shop and experience American Girl.”

Founded in Toronto in 1996, Indigo employs over 6,500 people across Canada. Indigo is a public company, traded on the Toronto Stock Exchange under the symbol IDG. The company operates about 90 superstores (averaging 24,000 square feet) under the banners Chapters and Indigo, as well as 130 small format stores under the banners Coles, Indigo, Indigospirit, SmithBooks, and The Book Company. The Company also operates indigo.ca, offering millions of products including books, eBooks, toys, stationery, home décor, gourmet confections, CDs, DVDs, and more.

Kiton Opens 1st Free-Standing Canadian Location

Italian luxury menswear brand Kiton has opened its first free-standing Canadian store in Toronto. Located at the northeast corner of Hazelton Avenue and Yorkville Avenue, the boutique is one of only five free-standing Kiton locations in North America. 

Founded in Naples, Italy, in 1956, Kiton is considered to be one of the world’s most expensive menswear brands. Known for its high-priced suits, Kiton offers off-the-rack styles that can approach $10,000, while its made-to-measure suits can sell for well over $20,000 each. Men’s dress shirts are generally priced in the $600-1000 range while trousers are generally priced in excess of $1,000 and blazers, $7,000+.

Located at 114 Hazelton Avenue, Toronto’s Kiton boutique is operated by adjacent menswear retailer V Hazelton. Located at 5 Hazelton Avenue, the luxury menswear retailer will soon open a Santoni Shoes shop-in-store, the second of its kind in North America.

Remarkably, we were informed by staff at V Hazelton over a year ago that Toronto’s Kiton location was supposed to open “late spring or early summer” of 2014. Kiton hoarding went up on the space in April of 2014, and Toronto lawyer Anjlit Patel informed us of the new boutique when she noticed the hoarding while driving by. Urban Toronto‘s ACT7 investigated further and continued providing details on Kiton’s progress, as well as updates on the new Santoni Shoes shop. 

In Canada, Kiton is carried at Harry Rosen in Toronto, Henry Singer in Edmonton, and at L’Uomo in Montreal. Harry Rosen will open a Kiton shop-in-store in Vancouver this fall. Kiton currently has four American store locations: in New York City, Bal Harbour, Florida, Las Vegas, and San Francisco. It is also carried at upscale American stores including Neiman Marcus and Saks Fifth Avenue. There’s no word yet if any Canadian Saks stores will carry Kiton.

Canada’s Top 20 Most Productive Shopping Centres

CF TORONTO EATON CENTRE
CF TORONTO EATON CENTRE. PHOTO: HOMETOWN TOURIST

Although some may claim that shopping centres are dying, Canada’s top malls are doing better than ever. The following is a list of Canada’s 20 most productive shopping centres.

It’s not surprising that most are located in Canada’s largest and wealthiest cities. Of the 20 malls, nine are in the Toronto area, four are in the Vancouver area, and two are in Calgary. Only one mall was located outside of a large city. 

Here’s our list of top Canadian malls by sales per square foot, annually: 

1) Pacific Centre, Vancouver, BC: $1,498

2) Toronto Eaton Centre, Toronto, ON: $1,420

3) Oakridge Shopping Centre, Vancouver, BC: $1,395 

4) Yorkdale Shopping Centre, Toronto, ON: $1,356

5) Southgate Shopping Centre, Edmonton, AB: $1,117 

6) Chinook Centre, Calgary, AB: $1,083

7) Rideau Centre, Ottawa, ON: $1,002

8) Holt Renfrew Centre, Toronto, ON: “over $1,000” says landlord.

9) Market Mall, Calgary, AB: $942

10) Sherway Gardens, Toronto, ON: $935

11) Square One, Mississauga, ON: $910

12) Peter Pond Mall, Ft. McMurray, AB: $887

13) Metropolis at Metrotown, Burnaby, BC: $886

14) Polo Park, Winnipeg, MB: $873

15) Le Carrefour Laval, Laval, QC: $865

16) Fairview Mall, Toronto, ON: $843

17) Richmond Centre, Richmond, BC: $833

18) Royal Bank Plaza, Toronto ON: $820

19) Toronto Dominion Centre, Toronto, ON: $818

20) Bayview Village, Toronto, ON: $810

Sources say that although West Edmonton Mall‘s sales are $725 per square foot in total, sales are about $1,200 per square foot when excluding  Phases I and IV. 

Our most recent numbers show substantial gains at several Canadian malls. Last year we reported that sales at Pacific Centre were $1335 per square foot, Yorkdale at $1,300 per square foot, Toronto Eaton Centre at $1,275 per square foot, Oakridge Centre at $1,132 per square foot, and Calgary’s Chinook Centre at $1,108 per square foot. Canada’s first Nordstrom location opened at Chinook Centre last September. 

For the past two years, we’ve discussed top North American malls, where about half were Canadian. Because of recent currency fluctuations, we’ve decided to limit our research to Canadian mall properties. That, and, new numbers show that some top American malls boast significantly higher sales than Canada’s top properties. 

Forbes recently listed its top 10 ranking for U.S. malls, with Bal Harbour Shops at the top with sales in excess of U.S. $3,000 per square foot. Other top U.S. properties included The Grove in Los Angeles (U.S. $2,100/sq ft), Pioneer Place in Portland, OR (U.S. $1,855/sq ft), Woodbury Common (an outlet mall) near NYC (U.S. $1,550/sq ft), Forum Shops at Caesars Palace Las Vegas (U.S. $1,515/sq ft) and Aventura Mall in Miami (U.S. $1,500/sq ft). 

Despite reports claiming that competition such as power centres and e-commerce are killing malls, some Canadian shopping centres are experiencing better than ever sales. We spoke with retail expert Farla Efros, COO of HRC Advisory, a leading retail consulting firm. She noted that most of Canada’s top 20 malls have seen recent enhancements to keep them relevant, and that most could be considered to be relatively upscale.

Ms. Efros noted that with the demise of anchors such Woodward’s, Eaton’s, Simpson’s, Zellers and some Sears locations, many malls have had to essentially reinvent themselves. The result has been improved properties with more ‘mini-anchors’, some boasting substantial sales. Ms. Efros mentioned Forever 21, H&M, Zara, and Uniqlo as examples.  She also mentioned Apple Stores which in some Canadian malls, see sales exceeding $50 million in only 5,000 to 10,000 square feet of space.

Ms. Efros noted that malls also have inherent built-in advantages over online sales, including socialization and immediate gratification. Many consumers prefer to experience brands in person, handling products and being able to take them home immediately after purchase. Malls are also adding other experiences to compete with online and power centres, including upgraded food experiences, enhanced movie theatres, valet parking, concierges, and other amenities intended to provide shoppers with a pleasurable, convenient, and increasingly upscale experience. Furthermore, shopping centres provide a social experience which is unmatched online. 

Aritzia Opens Massive Saint Catherine Street Flagship

PHOTO: ARITZIA

Popular Vancouver-based multi-brand women’s fashion retailer Aritzia has opened its biggest Canadian store to date in Montreal. Although currently the country’s largest, Aritzia’s expanded Vancouver store will rival its size when completed next year. 

Aritzia’s new Montreal flagship spans in excess of 10,000 square feet over two levels in the former Mexx location at 1125 St. Catherine Street West. The store has a glass storefront and its main floor features a concrete floor finish, planted terrariums and custom video installations. A new escalator and a custom staircase lead to the studio-inspired second floor featuring a natural white oak floor and casual fixture arrangements. Custom millwork, graphic finishes and curated artwork are found throughout the space.

Aritzia will open several other Canadian locations this year, including a flagship at Halifax Shopping Centre as well as stores in Oshawa (Oshawa Centre), and Promenades Saint-Bruno in suburban Montreal. 

PHOTO: ARITZIA, VIA INSTAGRAM

Although it will be the largest in Canada, Montreal’s Aritzia flagship won’t be the largest in the chain. That honour goes to two Manhattan locations, with one set to substantially expand further. Currently, Aritzia’s Fifth Avenue flagship is the chain’s largest, spanning 13,500 square feet. Its 10,680 square foot SoHo unit will expand to 18,320 square feet this year, however, making it the largest in the company. 

RENDERING VIA ARITZIA.COM

Aritzia’s Vancouver location will expand to about 10,000 square feet in early 2016. If including the adjacent Wilfred store (a brand owned by Aritzia), the Robson space will measure approximately 13,000 square feet. 

Founded in 1984, Aritzia’s target market is women aged 14 to 30. Much of the clothing sold in its stores are its own exclusive brands, including TNA, Talula, Babaton, Wilfred, Wilfred Free, Community, Le Fou, La Notte, Sunday Best, Paradise Mine, The Castings, Six Eleven, and Auxiliary. Stores also carry clothing from brands such as Citizens of Humanity, Mackage, Marc by Marc Jacobs, Nike, Levi’s, Ebbetts Field, A Gold E, Havaianas, and J Brand Jeans.

Saks Fifth Avenue Reveals Renderings of its First Canadian Stores, on New Website

Saks Fifth Avenue has launched a Canadian website, featuring renderings of its first two Canadian stores. Although the website is fairly minimal, it provides a glamorous web presence for the retailer’s Canadian brick-and-mortar entry, expected as early as next February. 

Featuring Canadian supermodel Coco Rocha, the Canadian Saks site provides renderings of Saks stores at Toronto Eaton Centre and at Toronto’s Sherway Gardens. Both locations are currently under construction. 

Saks’ 150,000 square foot Toronto Eaton Centre store will span four levels on the eastern side of the Queen Street Hudson’s Bay building Its concourse level will feature a 25,000 square foot grocery floor to be operated by Pusateri’s Fine Foods, while its top three levels will be dedicated to fashion and accessories. We recently wrote an extensive article on how the store will be configured, including a ground-floor restaurant and valet parking on Richmond Street. 

Saks’ 130,000 square foot Sherway Gardens store will be located in part of the retail space formerly occupied by Sears. We’re awaiting further details on the store’s layout, and it’s confirmed that Pusateri’s Fine Foods will also operate a roughly 25,000 square foot grocery department at Saks’ Sherway location. 

Saks has also started advertising management jobs for Saks in Canada. All are in Toronto. 

We’ll continue to update you as we learn more about Saks Fifth Avenue’s Canadian store expansion. 

Nordstrom Reveals Details of Vancouver Charity Gala

Nordstrom will host a massive charity gala two days prior to the opening of its Pacific Centre flagship. Taking place on the evening of Wednesday, September 16, the event will be held within the Vancouver store and will feature cocktails, dinner, desserts, live entertainment, fashion presentations and the opportunity to shop. 

Tickets go on sale June 24. Tickets for the Calgary and Ottawa galas were $100 each.

The Vancouver gala benefits four local charities – BC Children’s Hospital Foundation, BC Women’s Hospital + Health Centre Foundation, Covenant House Vancouver and Vancouver Art Gallery. The entire cost of the gala is underwritten by Nordstrom, meaning that all of the proceeds from ticket sales go to these charities.

Vancouver’s 230,000 square foot Nordstrom is scheduled to open at 10:00 am on Friday, September 18. The three-level store will be the largest in Canada. Canada’s first Nordstrom store, measuring 140,000 square feet, opened at Calgary’s Chinook Centre in September of 2014. We attended its opening gala as well as its store opening. Nordstrom’s second Canadian location, measuring 157,000 square feet, opened in March of this year at Ottawa’s Rideau Centre. Following the opening of the Vancouver store, Nordstrom will open three Toronto-area stores. In the fall of 2016, Nordstrom will open a 213,000 square foot store at Toronto Eaton Centre, as well as a 188,000 square foot store at Yorkdale Shopping Centre. In the spring of 2017, Nordstrom’s sixth Canadian location, measuring about 138,000 square feet, will open at Toronto’s Sherway Gardens. 

How Some Leading Canadian Retailers are Experiencing Customer Success [With Video]

Despite recent press reporting on numerous Canadian retail store closures and bankruptcies, some retailers are experiencing considerable success. Exceptional customer service is key, as is an integrated cross-channel customer digital and off-line strategy. Retail expert Antony Karabus, CEO of HRC Advisory, a leading retail consulting firm, recently discussed the topic on BNN in the video above.

Mr. Karabus discussed the importance of having a ‘tight’ relationship with customers, while understanding exactly how each customer wishes to interact with the retailer. Exceptional customer service, well-located stores, strong product knowledge, and ease of transaction are key. Mr. Karabus specifically mentioned Lululemon, The Running Room, Canadian Tire, and Harry Rosen as standing out. 

Mr. Karabus discussed Canadian Tire, which he says is probably Canada’s most iconic retailer. Canadian Tire stores are well-located and the brand has worked with the Olympics and Skate Canada, for example, to build brand awareness and create a “key bond” with Canadians. Canadian Tire’s convenience, breadth of product, and top-of-mind awareness has contributed to its exceptional sales growth, he said. 

Mr. Karabus discussed upscale menswear retailer Harry Rosen, and what makes it successful. Mr. Karabus said that trust is key for the male luxury consumer, and Harry Rosen has created it through often multi-decade relationships, as well as offering a lifetime maintenance guarantee on its products.

Mr. Karabus went on to discuss social media and online retail, and how it’s critical for retailers to communicate in the way that customers want, and to be where their customers are. Canadian consumers are increasingly online and millennials, especially, are on social media. Mr. Karabus said that a retailer catering to tweens millennials need to be “ferociously” on social media such as Instagram, for example, to engage with consumers who are already there. 

Speaking to the topic of smaller retailers, Mr. Karabus indicated that he feels strongly that they can effectively compete with behemoths such as Walmart and Amazon.ca with personalized communications regarding merchandise from brands that the boutique owner knows the specific customer prefers. He said that although smaller retailers may not be able to compete with Walmart on price, for example, boutiques would be well served to let customers know when a new product will arrive, tailoring the message to the customer’s preferences. ‘One-to-one’ relationship building can differentiate smaller retailers from Walmart, for example, which is focused on mass appeal not one-on-one service. 

About our Expert: 

Antony Karabus is CEO of HRC Advisory, a leading retail advisory firm. He has advised retailers on strategic and financial performance issues for over 25 years and has assisted numerous North American retailers to create significant shareholder value during this time. Mr. Karabus has advised numerous national retail chains in key sectors, including department store, specialty apparel and hard lines, big box, and grocery. He can be reached at akarabus@hilcoglobal.com.

 

Analysis: Expanded Retail at ‘The One’ Could be Valued at $1.2 Billion

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According to a recent TD Securities Equity Research report, the retail component of Toronto’s One Bloor Street West could become valued at over $700 million. If developer Mizrahi Developments is successful in securing adjacent retail space, the project’s retail podium could become worth considerably more. If Mizrahi is successful, the combined nine-level retail space could become some of Canada’s most valuable commercial real estate. 

One Bloor Street West, also known as ‘The One‘, will include nine levels of retail with 72 levels of residential above. Located at the southwest corner of Yonge Street and Bloor Street West, The One will feature five large retailers at its base, including an unnamed 30,000 square foot corner anchor. Each retail level will boast 22 foot ceilings and no columns, given the building’s exoskeleton construction. 

According to TD Securities, The One is expected to have about 168,000 square feet of retail, with an average floorplate of about 21,000 square feet. This represents 19% of the tower’s total projected square footage of just under 880,000 square feet. 

Despite being less than 20% of the project’s size, TD estimates The One’s retail space to be considerably more valuable than the proposed residential above. The chart above estimates The One’s retail podium to be valued at $721.9 million. Remarkably, its ground floor is assessed at a whopping $236.3 million, given an estimated net rent of $450 per square foot. We should note that these numbers are estimates and furthermore, TD’s study fails to identify The One’s concourse level, which will also feature retail space connected to Toronto’s PATH system. 

TD Securities values The One’s 72-floor residential component, as a comparison, at $539.1 million. The tower will feature roughly 500 residential units, depending on demand and customization, featuring columnless interiors and 10 foot clear ceilings without bulkheads. Prices, according to Mr. Mizrahi, will average $1,000 per square foot, with a penthouse measuring up to 15,300 square feet costing in excess of $30 million. We would guess such a large penthouse would sell for closer to $40-45 million, given prices per square foot for penthouses in similar buildings. 

TD Securities estimates The One’s site area to be 27,640 square feet. This includes the former Stollerys building as well as retail space south to 768 Yonge Street, as well as neighbouring 11 Bloor Street West to the west.

Mr. Mizrahi recently indicated to us that he’s open to expanding The One’s retail component westward all the way to Balmuto Street, annexing land currently housing an H&M store and neighbouring Scotiabank. 

H&M is located at 15 Bloor Street West, and Scotiabank occupies 19 Bloor Street West. Their combined site area is approximately 14,000 square feet. Excluding concourse retail space, as done in the TD Securities analysis, the new retail space would span just over 110,000 square feet. Using the same valuation per square foot ($4,297) as the retail podium calculations above, this 110,000 square foot addition could be worth approximately $472.7 million.

Adding the 110,000 square foot $472.7 million addition to the proposed 168,000 square foot $721.9 million retail podium, the combined 278,000 square foot retail space could see a value of almost $1.2 billion. 

List of Retailers Opening and Expanding in Canada

The following is a list of 28 retailers which are either new to Canada, or expanding their operations nationally. Although some of these retailers have recently been discussed in Retail Insider, most are new and haven’t been revealed until now.

The list is sponsored by Vancouver-based Peregrine, which custom designs and fabricates retail, display, furniture and architectural features for some of the country’s top retailers.

STORE NAMELOCATIONS TO OPEN IN CANADANEW OR EXPANDING?ESTIMATED # OF LOCATIONS POST-EXPANSION
Abercrombie & FitchVancouver (Summer 2015)Expanding5+
AllSaintsVancouver (Summer 2015)Expanding2+
AritziaVancouver, Montreal, Halifax, Oshawa, Saint Bruno, QCExpanding60+
Atlantic FabricsTruro, N.S. (Spring 2015)Expanding5+
Bailey Nelson EyewearToronto (now open)Expanding2+
Cabela’sAbbotsford BC (fall 2016), Calgary (fall 2015), Moncton NB (May 28, 2015), Ottawa (Spring 2016)Expanding11+
Choices MarketVancouver (Commercial Drive)Expanding10+
Cole Haan OutletVancouver (Richmond: Summer 2015)Expanding3+
Consonant SkincareToronto (now open)Expanding2+ (unknown)
COS by H&MToronto (fall 2015), Montreal (winter 2015)New4+
DollaramaAcross CanadaExpanding1200+
Drake General StoreToronto (Union Station, spring 2015)Expanding5+
DSW ShoesSherwood Park AB, Victoria BC, Moncton NB, Barrie ON, Toronto, London ON (all fall 2015)Expanding40-50 estimated
Famous FootwearVaughan, ON (March 2015)ExpandingUnknown, but substantial
Kit and AceToronto, Vancouver, Edmonton, Calgary, Regina, Saskatoon, Winnipeg, Halifax, possibly Kelowna – all by early 2016Expanding15+
LEGO StoreWinnipeg, TorontoExpanding11+
LodingToronto (3rd location), MontrealExpandingUnknown
NordstromVancouver (1+), Toronto (3+), Edmonton speculatedExpanding7 to 10
Pan Am Games StoreTorontoNewOne?
Polo Ralph Lauren OutletVancouver (Richmond: Summer 2015), Edmonton TBDExpanding5+
Rider StoreSaskatoon (May 2015)Expanding5+
Saks Fifth AvenueToronto (Spring 2016), Etobicoke ON (Spring 2016), Vancouver (TBD), Montreal, Calgary TBDNew7 estimated
Secret Location OutletVancouver (Richmond, Summer 2015)NewPossibly only one
SitkaVancouver (now open), possibly Calgary, southern Ontario, and another Vancouver unit.ExpandingUnknown
Strong’s MarketNorth Vancouver, BC (early 2016)Expanding2+
Urban FareCalgary (Mount Royal Village)Expanding6+
VersaceVancouver (TBD)Expanding5 estimated
West ElmCalgary (Mount Royal Village)Expanding4+

Outdoor Lifestyle Brand Sitka Looks to Expand Across Canada

Victoria-based lifestyle brand Sitka is looking to expand its network of brick-and-mortar ‘community centre’ stores nationally, and it’s using a rather unique method to do so. The conservation-focused brand launched a crowdfunding campaign last week with the intent to move the brand into various Canadian markets, while continuing to promote and fund wilderness conservation. We spoke with the company’s co-founder to learn more. 

Founded as a surfboard brand in Victoria, B.C. in 2002, Sitka retails outdoor gear, clothing, and related accessories. The company says part of its mission is ‘wilderness activism’ with a portion of its profits going to conservation. It currently has three brick-and-mortar ‘community centres’, including two in Canada. Last week, Sitka opened its second permanent Canadian location in Vancouver, adding to its existing flagship in Victoria and a location in Auckland, New Zealand.

The 2,100 square foot Vancouver location, which opened on April 20 at 2127 W. 4th Avenue in Kitsilano, features sustainable wood furniture by a local woodworker and an interactive ‘cabin’ where a digital screen displays Sitka’s conservation projects.

The brand reportedly achieved sales of almost $4 million in 2013, with impressive growth forecasts. Besides its three brick-and-mortar stores, Sitka is retailed in over 200 stores across Canada, the U.S., Australia, New Zealand, Germany, South Korea and Indonesia.

We spoke with Sitka co-founder Rene Gauthier. He told us that the company is looking to open its ‘community centres’ in a number of Canadian locations, measuring between 2,000 and 3,000 square feet. Streetfront locations are most ideal, he says, though in some markets Sitka could move into shopping centres if the right opportunities come available. He says that another Vancouver location is likely in the cards and that a location in Whistler, B.C. could be next – depending on Sitka’s crowdfunding success. Future markets on his radar include Calgary, Montreal, and Southern Ontario. Being from Winnipeg, Mr. Gauthier says he’d like to see a ‘community centre’ there some day, as well. 

Mr. Gauthier also mentioned that the company’s goal is for 100% of its clothing products to be made in Canada or the United States by late 2016, up from a current 60%. Â