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Why Best Buy Shuttered Future Shop: Industry Expert Q&A

By
Retail Insider
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We spoke with retail industry expert Antony Karabus, CEO of HRC Advisory, to get his opinion on why Best Buy shuttered Canada’s Future Shop locations. We also asked him about Best Buy’s strategy to close stores without warning, as well as the future for electronics retailers in Canada. 

As a background, on Saturday, March 28, Best Buy closed all Future Shop locations, announcing that 65 of the chain’s 131 Canadian locations would be converted to Best Buy nameplates. The other 66 locations will remain closed, resulting in about 1,500 job losses.

We asked Mr. Karabus why Best Buy closed Future Shop’s stores. He explained the inefficiencies of operating two nameplates carrying essentially the same product, sometimes within close proximity. He believes that when Best Buy bought Future Shop, operating both brands was a strategic opportunity to gain market share. As Best Buy became increasingly familiar to Canadians, maintaining both became irrelevant. Closing Future Shop will likely free up significant capital for Best Buy, according to Mr. Karabus.

Furthermore, Future Shop sales consultants were paid on commission (according to the www.futureshop.ca website), as opposed to Best Buy’s hourly staff. Mr Karabus believes that as Canadians increasingly research potential electronics online prior to purchasing, commission-driven sales staff will generally become unnecessary. 

Mr. Karabus explained that electronics retailers have increased competition from both e-commerce as well as hybrid brick-and-mortar competitors. Furthermore, there is also increasing competition from bricks-and-mortar retailers such as Walmart, Costco, London Drugs, The Source, as well as Tech departments at Chapters/Indigo. Apple Stores are also increasingly becoming competitors, as the brand becomes more popular and continues to open new and larger Canadian stores. 

Mr. Karabus notes that electronics purchases are down, generally, as there haven’t been significant product innovations recently. Anything new has primarily involved upgraded or modified technology. As a result of the above challenges, Best Buy was best served to streamline its operations. 

We asked Mr. Karabus’ opinion on Best Buy’s without-notice Future Shop closure. He explained that it may have been a good financial decision for Best Buy to immediately shutter Future Shop’s operations to concentrate on one brand. On a human resources level, however, Mr. Karabus notes that Best Buy’s actions were “harsh”, as many lost their jobs with no advance warning. Recent job losses from Target, Smart Set, Jacob and others have already caused considerable grief. We asked him if Best Buy’s actions will hurt its brand and Mr. Karabus felt that while some may be disappointed, customers are generally quick to forget. Given that Best Buy is now Canada’s only Big Box specialist electronics-focused retailer, it will likely not suffer from this decision, according to Mr. Karabus. 

We asked Mr. Karabus about the future of consumer electronics retailers in Canada, given increased online price transparency and the ease of buying online. He feels strongly that there is still a meaningful role for brick-and-mortar consumer electronics retailers in Canada, especially well-stocked locations providing “advice and consultation”, building trust by suggesting the “right” product. After sales service, in particular Best Buy’s Geek Squad, is a brilliant weapon to fight pure-play online retailers, further enhancing trust in Best Buy’s brick-and-mortar operations and related in-store customer service, according to Mr. Karabus.  

About Our Expert: 

Mr. Karabus became CEO of HRC Advisory in January of 2013. He has been a trusted and passionate advisor to retailers on strategic and financial performance issues for over 25 years. He has assisted numerous North American retailers to create significant shareholder value during this time. He has worked with numerous well known retail chains in key sectors such as department store, specialty apparel and hard lines, big box chains and food and convenience.

Antony began his career at Arthur Andersen in Cape Town, South Africa and moved with the firm to Toronto, where he founded Karabus Management as a Canadian retail advisory firm in 1990. In 2001, Karabus Management expanded into the United States, where the firm became a leading North American specialist retail consulting firm. In 2008 he sold the firm to an International Accounting/Consulting firm where he served as the leader of that firm’s Retail Consulting Services practice until he left the firm in December 2011.

Antony conducts annual surveys of Retail CFO and CEOs to determine key priorities in assisting their business to enable substantive value creation.

Antony is a recognized speaker and a published author providing thought leadership at industry forums, including the National Retail Federation, Retail Council of Canada, World Retail Congress and the Fashion Institute of Technology and providing content to The Wall Street Journal, The New York Times, Stores Magazine, The Globe & Mail, Chain Store Age, National Post, Toronto Star and Women’s Wear Daily, among others.

About HRC: HRC Advisory is a specialist boutique retail advisory firm. Together with its predecessor firms, it has been assisting Canadian and US Retail Chains to improve their profitability and strategic positioning for more than 25 years. Many of HRC’s senior advisors were previously at Senn Delaney Retail Consultants and Karabus Management following retail leadership roles. Other senior advisors at HRC have a mix of retail leadership and retail consulting experience gained with other leading firms
 
HRC has significant retail depth in strategic planning, buying, merchandise planning and inventory management, indirect procurement, store operations and omni-channel processes, supply chain/logistics and fulfillment, and comprehensive cost optimization services. HRC has worked extensively with both healthy top performing chains as well as developing and executing turnaround mandates at a number of retailers in difficult situations. For more information, please visit www.HRCadvisory.com.

With Future Shop and Target Closing, do Big Box Stores have a Future in Canada?

By
Craig Patterson
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It turns out that big box stores are perhaps not as invincible as they seemed just a decade ago. On the morning of Saturday, March 28, Future Shop announced it would be closing all locations effective immediately, although 65 of the stores will be converted to the Best Buy banner. Many of Canada’s urbanists are gleefully writing the obituary of big box stores at the moment on twitter – and who could blame them – but I would be hesitant to make this prediction too quickly. Just look at department stores which still seem to be hanging on against all odds, and in certain cases, perhaps even recovering.

Online shopping in Canada is growing faster than individual consumer expenditures, meaning each year more sales divert to e-Commerce and fewer dollar are available for “bricks & mortar stores” (i.e. physical stores). If done right, online commerce can be far more cost efficient than physical store retailing. Walmart, for example, has 4.5 employees for every $1 million dollars in revenue. Amazon achieves the same amount of revenue with only 1.3 employees. As anyone who has stood in a Future Shop searching for product information on their smartphone can attest (either because you can’t find a sales representative, or because you don’t think they actually have a clue), its no real surprise that online shopping is killing big box consumer electronics stores.

While its fairly easy to bring consumer electronics retailing online, its not so straightforward to deliver someone eggs and milk. Costco is definitely not going anywhere anytime soon, and while Walmart isn’t doing stellar at the moment, its very far from being a Target. We recently did some research on the status of large format stores in Canada and it may be of some interest given today’s news. I should caution that I’m sure some of this information is already out of date (for example Future Shop’s public plans prior to today were to close just 8 stores in Canada and move towards smaller format locations). Feel free to point out corrections or information on stores we have missed in the comments section.

DYING: 

Future Shop
Brand is being consolidated under Best Buy, which I should add was the original plan when they were bought out in 2001. 66 locations will close permanently, 65 will convert to Best Buy.

Best Buy
In 2013 they announced plans to close 7 Canadian stores but to open more Best Buy Mobile locations over the next three years. Looks like they have 65 for more locations now!

Target Canada
Is currently shuttering 133 stores, affecting 17,600 employees. The company had racked up over US$2-billion in losses in just two years in Canada.

Staples Canada
Recently closed 15 of 331 Canadian stores, focus will be to move towards online sales.

Rona
2014 – closed 11 unprofitable stores in Ontario and BC (Derek Dley of Canaccord Genuity of says “This to me shows that they’re just not able to compete on the big-box level with the likes of Home Depot and Lowe’s in those key markets anywhere outside of Quebec”).

Linens ‘n Things
Now online only, all stores are closed.

Grand and Toy
Now online only.

Zellers
Essentially dead, but has a couple of locations still open as a liquidator for Hudson’s Bay and Home Outfitters. Ironically, Zellers may actually outlive Target Canada.

Chapters / Indigo
Closing stores, including some flagship locations.

AT RISK: 

Movie Theatres
This is more personal speculation (and I have heard there are fewer openings than in the past) but I just can’t imagine how teenagers of the future will still want to go and sit in a movie theatre. It seems so archaic in an era of instant on-demand Netflix gratification.

EXPANDING: 

Costco
2013 – announced plan to build 25 more outlets in Canada, bringing their total to 110 locations.

Walmart Canada
Just opened 11 new supercenters across Canada. This will complete its previously announced plan for opening 35 supercenters in the region by January 2015. Total store count of 394 by February 2015, including 280 supercenters and 114 discount stores.
February 2014 – announced investment of $500 million over the year. Of the total investment, $376 million was allotted for store projects, $91 million for distribution networks to expand fresh food capability, and $31 million for e-Commerce projects.

Lowe’s Canada
Spring 2015 – will open three new stores in Alberta, Saskatchewan and Ontario. Lowe’s opened 1st store in Canada in Dec 2007; now has 37 stores in Ontario, Alberta, Saskatchewan and BC.

Canadian Tire
Still opening big box stores, but has been diversifying its retail presence by exploring smaller formats in urban locations, and expanding sports stores under the Forzani Group banner.

Holt Renfrew Triples its Montreal Footwear Footage [With Photos and Video]

By
Craig Patterson
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Image: Holt Renfrew

Holt’s Renfrew‘s footwear salon in Montreal has seen an overhaul, including a substantial expansion and the addition of new brands. The footwear salon will only be open for a couple of years, however, as a newly built, combined Ogilvy/Holt’s down the street will coincide with Holt Renfrew’s Montreal flagship closure. 

According to Holt Renfrew, the expanded footwear salon now measures about 4,300 square feet of selling area, excluding backroom storage space. This is almost triple the size of its previous Montreal space. The expanded salon includes new footwear brands such as Aquazara, Alexander McQueen, Balenciaga, Chloé, Gianvito Rossi, and Kenzo. Holt’s already carried luxury brands such as Christian Louboutin, Dior, Gucci, Prada, Miu Miu, Saint Laurent Paris, Lanvin, Ferragamo, Tod’s, Manolo Blahnik, and others. 

The expanded Montreal space is smaller than Holt’s Yorkdale footwear salon, in Toronto, for example, which spans an impressive 10,000 square feet and includes shops-in-stores for brands Manolo Blahnik, Jimmy Choo, Christian Louboutin, Gucci, and Salvatore Ferragamo. Holt Renfrew also has plans to grow several other footwear salons, according to sources in the company, including expanded departments in its flagship Bloor Street, Calgary and Vancouver locations. All three stores will see renovations and expansions between now and 2018 as Holt Renfrew continues its $300 million initiative to expand store space by approximately 40%. 

Below is a video, and more photos. 

Montreal will likely see a considerably larger Holt’s shoe offering when the combined Ogilvy/Holt Renfrew opens in late 2017. The 220,000 square foot store, substantially larger than Holt’s current 83,000 square foot Sherbrooke Street location, will include a substantial women’s footwear presence. There’s no official word yet on what will happen to Holt’s existing Montreal flagship which is owned by the company, though some speculate that it could be redeveloped into luxury condominiums and upscale retail. 

Italian Footwear Brand GEOX Launching 7 Canadian ‘Concept Stores’

By
Craig Patterson
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Photo: GEOX

Moderately-priced ‘breathable’ Italian footwear brand GEOX will open seven new ‘concept stores’ in Canada this year, including three new locations and four store overhauls. When completed, GEOX will operate 32 free-standing Canadian locations. 

The three new stores will include locations at Scarborough Town Centre in Toronto as well as two Vancouver locations – one at McArthur Glen Designer Outlet at Vancouver International Airport, and the other at West Vancouver’s Park Royal Shopping Centre. 

Expanded and redesigned concept stores locations will include three GEOX locations in the Greater Toronto Area (Vaughan Mills, Square One and Sherway Gardens) as well as the existing space at Quebec City’s Place Ste-Foy. They will be modelled on the successful Carrefour Laval concept store in suburban Montreal which launched last year. 

“In twelve short years, GEOX has grown to be one of Canada’s leading shoe brands, thanks to our commitment to providing a world-class retail experience for consumers,” explains Gino Stinziani, COO for GEOX Canada. “We are excited to strengthen our leadership by offering our fans a unique, more memorable shopping experience.  The new store designs have already proven to be a big hit with our existing clientele and new customers.  It effectively presents the GEOX breathable shoe and outerwear technology, and offers a great overview of the brand under one roof. ” 

Photo: GEOX

Founded in Montebelluna, Italy in 1995, GEOX is known for its breathable footwear. It has stores around the world. In Canada, it wholesales at retailers nationwide and also operates free-standing boutiques in Vancouver, Edmonton, Calgary, Winnipeg, Toronto, London, Ottawa, Montreal and Quebec City. 

Images in this article are of the new Carrefour Laval GEOX location, provided by GEOX. 

The Kooples to Open Free-Standing Canadian Stores

By
Craig Patterson
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PHOTO: THE KOOPLES, VIA FACEBOOK

French contemporary brand The Kooples will reportedly open three free-standing Canadian locations this year. The Kooples already does exceptional sales at Holt Renfrew and Hudson’s Bay, prompting a brick-and-mortar expansion. 

Founded in Paris in 2008, The Kooples features trendy designed men’s and women’s ready-to-wear, as well as outerwear, accessories, leathergoods and footwear. The company anticipates explosive growth, from an anticipated 220 million Euros in 2015 to an estimated 550 million Euros for the fiscal 2019/2020 year. The Kooples entered the U.S. market two years ago via Bloomingdale’s and currently operates five free-standing U.S. locations – two in New York City and three in California. 

According to Women’s Wear Daily, the three Canadian Kooples locations will open “in late 2015 or early 2016. According to Style.com, Toronto and Vancouver are the brand’s first priority. 

PHOTO: THE KOOPLES

The Kooples CEO and cofounder Nicolas Dreyfus also told Style.com: “We want to open 20 flagship stores within the next five years in the U.S. We should open in Hawaii, Miami, Dallas, Chicago, and probably one more in California.” 

The Kooples wholesales at Hudson’s Bay in Vancouver and Toronto, and operates separate men’s and women’s concession shop-in-stores at Holt Renfrew locations in Toronto (Bloor Street, Yorkdale), Vancouver, and Calgary. It also operates a boutique at Montreal’s Ogilvy, owned by Holt Renfrew’s parent company Selfridges Group. 

We’ll update you when we can confirm the locations of The Kooples’ first three Canadian locations. 

BMO Launches Beautiful figure3-designed Flagship at Canada’s Financial Crossroads

By
Craig Patterson
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Bank of Montreal's impressive new 21,000 square foot flagship at Toronto's First Canadian Place

Although not the traditional type of retail we report on at Retail Insider, the following is a revelation of Bank of Montreal‘s impressive new 21,000 square foot flagship at Toronto’s First Canadian Place. 

According to the space’s design firm figure3, banks today are facing many of the same challenges as “traditional” retailers: fierce competition for share of mind and wallet – and, as e-commerce expands, more consumers turning to the convenience of online to shop and carry out transactions. figure3 designed a storefront which it says helps in “developing meaningful relationships between businesses and customers, the needs of both can be successfully merged”.  

In working with BMO, figure3’s retail design team was charged with ‘seeing what others don’t,’ in order to make intelligent, evidence-based decisions for the redesign of the BMO flagship at First Canadian Place.

This meant developing a design strategy that changes the way BMO’s customers think, feel and behave in the new 21,000 square foot branch – a direct function of design research identifying a need for clarity in the banking experience.

“The new First Canadian Place branch is designed with the customer experience in mind, featuring a layout that removes physical barriers and ultimately fosters deeper, more valuable advice-based conversations,” said Tony Tintinalli, Regional Vice President, BMO Bank of Montreal. 

The corner of King Street and Bay Street is one of downtown Toronto’s busiest and most crowded corners. The illuminated branding (see image at the top of this article), BMO blue racing stripe and digital signage grabs the attention of passersby while the floor-to-ceiling windows provide a clear view of what is happening inside. 

Once inside, customers are struck by the openness of the bank – “we have pulled back the curtains,” says Marjorie Mackenzie, figure3’s VP of Retail. No longer is banking something that happens in back rooms – customers immediately feel empowered; like the integral part of the banking experience that they are.

By breaking up the long, transactional “us vs. them” counter and offering seating, traditional physical and emotional barriers are reduced and customers are invited to share in a more collaborative interaction with the staff.

The Business Banking area functions as a “bank-within-a-bank.” The intimate, seated interaction space allows people to comfortably engage in more comprehensive conversations, encouraging them to stay a little longer and spend time learning about products and services they care about. 

The inclusion of new omni-channel elements (like the tablets pictured), helps make the transition from online to in-store more streamlined, offering customers a compatible banking experience with direct access to apps and online banking as well as in-store offerings.

The meeting pods are a conscious nod to the delicate balance of transparency and privacy in a banking experience. While the pods are situated within the open environment, the custom furniture offers acoustic and visual privacy in a comfortable, relaxed setting. Added mobile technology allows for movement between pods, streamlining information sharing.

Comfortable, free meeting areas (a.k.a. “hives”) with custom seating and storage created by figure3 principal Chris Wright and Senior Team Leader, Steve Tsai, enhance the ability to exchange information in a fluid, collaborative way. 

Canadian Retail Sales Are In Good Shape … Except for Gasoline Stations

By
Ed Strapagiel
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By Ed Strapagiel

Reports that the sky is falling in Canadian retail sales are greatly exaggerated. Almost all the recent decline in total retail growth is due to lower gas prices, while other retail sectors are performing within or better than their normal range of variation. Gasoline stations account for about 12.5% of total retail, so a major sales decline in this subsector is a significant drag on the overall total. 

Gasoline station retail sales declined 21.3% in January 2015 versus a year ago on a not seasonally adjusted basis, so that total retail was up only 0.5% for the month. Excluding gas stations however, the rest of retail was up 4.2% in January year-over-year, and up 4.9% for the 3 months ending January. 

The underlying 12 month trend for total Canadian retail sales (green line in the above chart) is now headed downward. The 3 month trend (orange line) has weakened considerably, indicating more of the same ahead, at least until gas prices recover. 

While Automotive & Related suffers however, the Food & Drug and Store Merchandise sectors are actually stable or strengthening. 

Food & Drug Stores

The Food & Drug sector continues to crawl along, but at least it’s crawling in the right direction. The underlying 12 month trend (green line in the chart above) has been slowly improving for about a year and a half, and is up to 3.0% for the 12 months ending January 2015. This is hardly spectacular, but it is a 4 year high. 

Food & beverage stores had a good January, with retail sales up 5.2% year-over-year, which is almost double their average. On the other hand, health & personal care stores had a relatively slow month, up 1.6% from January last year, or roughly half their previous average. These ups and downs are typical for the sector. 

Store Merchandise

The Store Merchandise sector is emerging as the place to be for 2015. The 3 month trend (orange line) is still running ahead of the underlying 12 month trend, which has been improving for about 18 months and is now at a 5 year high. 

Almost all store types had respectable sales gains in January 2015 compared to the same month a year ago, particularly clothing stores, jewellery, luggage & leather goods stores, and electronics and appliance stores. Only miscellaneous store retailers turned in a decline for the month. 

 The Automotive & Related sector appears to have fallen off a cliff. This is almost all due to lower gasoline prices, particularly as compared to the very high prices in place a year ago. 

At the same time, new car dealers’ sales were up “only” 4.7% in January 2015 year-over-year. This would be a good result for most retailers, but it is well off the 8.5% gain new car dealers recorded for 2014 overall. Used car dealers and other motor vehicle dealers also had an off month in January. 

For definitions of store types, see Statistics Canada. 

Monthly Update Notification

This analysis is updated monthly as new numbers are published by Statistics Canada. If you would like notification of when an update becomes available (and you’ve read this far), please connect with Ed Strapagiel on LinkedIn. 

Moores Launches Men’s Made-to-Measure in its Canadian Stores

By
Craig Patterson
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PHOTO: URBANTORONTO.CA

Popular mid-priced Canadian menswear retailer Moores has launched made-to-measure clothing in its stores, potentially competing with custom suit makers and pricier menswear retailers. It’s a ‘brilliant move’ according to luxury retail expert Farla Efros, who notes that it could enhance Moores’ customer loyalty at a time when competition heats up in the Canadian menswear market. 

Moores has partnered with New York City-based Joseph Abboud to launch the new custom line, called Joseph Abboud Custom, which is now available at Moores locations nationwide. Suits, sport coats, dress trousers, vests, tuxedos, dinner jackets and formalwear trousers will be available custom-order. After determining a desired fit, customers may select from a variety of Italian fabrics (including 100% wool ranging from super 100s to super 150s) as well as detailing such as pick stitching and button holes. Product is manufactured in a Montreal-based, family owned factory which was founded in 1913.

The starting price is $695 for suits, $500 for sport coats and dinner jackets, $195 for trousers and $150 for vests. 

JOSEPH ABBOUD. PHOTO: WWW.QUAZOO.COM

Luxury retail expert Farla Efros, COO of HRC Advisory, tells us that Moores’ moving into custom clothing is a brilliant move. Custom menswear has become a trend, growing significantly faster than off-the-rack clothing. This is partly a result of men becoming more discerning when it comes to the fit of their clothing. Moores’ custom initiative allows it to differentiate from mid-priced competition, grow loyalty and offer something unique in the mid market – making the customer feel special and likely to return. 

Moores is also addressing substantial new competition, as custom suit makers such as Vancouver-based Indochino continue to grow and open brick-and-mortar stores. At the higher-end, upscale menswear retailer Harry Rosen has recently seen an increase in made-to-measure sales, now accounting for about 20% of its suit business. Menswear competition in Canada will continue to increase as international retailers such as Loding and Suitsupply continue to expand, not to mention upscale department stores such as Saks Fifth Avenue, La Maison Simons and Nordstrom, all of which are increasingly carrying considerable menswear offerings. 

With the ad slogan “Well made, Well Priced, Well Dressed”, Moores was founded in Mississauga, Ontario in 1980. It now operates over 120 locations nationwide. The menswear retailer carries a full selection of suits, sport coats, furnishings and accessories, and is also the largest provider of tuxedo rentals in Canada. Although it is headquartered in Toronto, Moores was bought by Texas-based Men’s Warehouse in 1999. 

Technology Met Retail at Toronto’s Dx3 Conference

By
Retail Insider
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By Naomi Turner, J.C. Williams Group

During the recent Dx3 tradeshow and conference, held at the Metro Toronto Convention Centre in Toronto, March 11–12, J.C. Williams Group encountered a number of exciting product demonstrations and displays on the latest technologies that will be rocking the retail world.

Here are a few of the most notable booths we encountered at the tradeshow.

Holographic Displays

The Virtual Messenger

The Virtual Messenger provides companies with the ability to incorporate interactive visual presentations in their marketing and sales efforts. Products includes 3D holographic avatars, live windows (i.e., interactive holograms on glass or rear window of car), and virtual kiosks.

WATCH THIS VIDEO to see Virtual Messenger’s holographic avatar in action.

Virtual Messenger provides retailers and brands with an interesting and entertaining way to interact with, attract, and engage consumers, advertise products, and display or present information.

Use Virtual Messenger to:

  • Introduce a new product to customers in-store
  • Greet guests at an exclusive event
  • Grab attention while highlighting specials at a restaurant

Holographic Technologies

Holographic Technologies provides customized holographic display solutions.

The 3D holographic image is shown above centered in a prism-like display case. The 3D image rotates and can be viewed from any angle when navigating around the display. An interactive touchscreen pad allows the user to manipulate the holographic display (i.e., view different products or actions).

While the interactive touchscreen is an optional function, it does provide a fun and entertaining way for retailers to educate and entice consumers on product assortments and brand extensions while in the store.

It also reduces the need for products to be shipped out in physical format in order to showcase it. With the touch of an email you could send the necessary files to your counterparts to showcase your brand!

Augmented Reality

According to Icreon Tech and Deloitte among others, Augmented Reality (AR) has been cited as one of the top technology trends to take off in 2015.

Blippar

Blippar provides a complete line of services for retailers to launch their own immersive AR campaigns. Using the camera on a smartphone, tablet, or wearable device to recognize images that are “blippable,” users are provided with a response that can range from “unlocking” videos, exclusive offers, interactive games, 3D experiences, product information, and more.

WATCH THIS VIDEO to see some of Blippar’s amazing mobile augmented reality campaigns.

Regardless of the intended purpose of this technology, there is no denying that it offers new and creative ways for retailers to interact with consumers and enhance the overall customer experience. As this trend continues to grow, retailers should not only keep this on their radar, but also start thinking of creative ways to implement their own AR strategies.

Peek Augmented Reality

Peek provides retailers with the ability to “pop-up shop in consumer places and spaces.” (Peek)

Similar to the 2014 IKEA Catalog app, users can arrange, rotate, and remove objects in a photorealistic setting that takes into account the correct scale and lighting conditions.

WATCH THIS VIDEO to learn more about PEEK.

Swivel by FaceCake’s Virtual Dressing Room and Beauty Bar

Virtual dressing rooms have been in the market for some time but have yet to gain full-blown adoption by retailers. However with advances in technology, the experience it provides continues to improve. Swivel by FaceCake’s virtual dressing room and Beauty Bar are the latest examples of this fun, useful, and innovative technology. It is more realistic than previous models and offers new features such as social sharing and built-in links for easy purchases.

WATCH THIS VIDEO to learn more about Swivel by FaceCake’s virtual dressing room and digital beauty bar.

Will this technology replace physically trying on clothes or having a professional make-up artist apply cosmetics? No, but it provides another avenue for consumers to research products and brands.  It enables “trying on” certain merchandise like accessories (e.g., handbags, scarfs) and jewellery, as well as experimenting with different shades and combinations of cosmetics and providing assistance in finding the perfect outfit or “look.” The only downside to this technology is that at this time it cannot perfectly adjust to body shape and size, or mimic various application techniques of cosmetics.

3D Printing

In the past few years, we have seen the 3D printing revolution unfold. Though still in its early stages, as this technology continues to advance and new uses and benefits for this technology are realized, the impact of this technology could become yet another game-changer in retailing.

3DMakeable

3DMakeable designs and develops custom 3D printed products and offers custom workshops where they teach attendees how to build, configure and calibrate their own 3D printer.

Is the idea of a 3D printer becoming a staple in every consumer household premature? Perhaps, but giving the rapid growth we saw in smartphone penetration or personal computers, it’s not crazy.

3D printers in general provide many benefits for entrepreneurs, R&D, product designers, manufacturers, etc., but on the consumer side, this technology introduces an alternative to current e-commerce practices – buy online, print at home. Now that’s instant gratification that even “same-day shipping” can’t compete with. With the assistance of a 3D printer, consumers would have the ability to buy the product design online directly from the retailer or supplier, and print instantaneously in the comfort of their own home. The application spans across many industries, such as hardware and toys.

In Summary

What do all of these technology tools have in common? They all work to enhance the customer experience, whether at home, online or in the store. With increasing competition and the rapid shifts in consumer behavior, technology plays a key role in differentiating brands and retailers. Brands that are out-of-sync with today’s retail technology or unaware of the massive changes coming rapidly down the road, risk being put out-of-business.

J.C. Williams Group is a well-known, full-service retail and marketing consulting firm. It offers clients practical, creative, and in-depth knowledge of retailing and marketing, including up-to-date know-how and techniques to make retail operations better and more profitable. You can also read their informative blog, Retaileye, here: retaileye.wordpress.com.   

Interview with Sam Mizrahi, Builder of ‘The One’ Tower at Bloor and Yonge

By
Craig Patterson
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MIZRAHI DEVELOPMENTS
RENDERING: MIZRAHI DEVELOPMENTS

On Friday we interviewed developer Sam Mizrahi of Mizrahi Developments about his proposed super-tall Toronto tower, called ‘The One‘. Located at One Bloor Street West (intersecting Yonge Street), the 80-story, 1043 foot tall Foster + Partners/Core Architects-designed tower will feature a nine-level retail podium with 72 floors of luxury condominiums above. We’ll discuss both the retail and residential components of The One, as revealed by Mr. Mizrahi in our interview. 

Mr. Mizrahi revealed that the retail base of One Bloor West will span about 140,000 square feet. The nine-levels of retail will include eight levels above-ground, as well as a lower-level concourse connecting to Toronto’s underground PATH system, with access to the Yonge and Bloor subway lines. The ground level up to and including level five, as well as the concourse, will be dedicated to large retail stores. Levels six through eight will be occupied by restaurants and ‘food services’, according to Mr. Mizrahi. 

The lowest six levels of the retail podium will be occupied by only five or so large retailers, each occupying at least two levels. The ground floor will host three retailers, including one unnamed international brand which will occupy the corner retail space, spanning four levels and over 30,000 square feet. 

The retail podium looking east along Bloor Street, as seen from the rooftop of Holt Renfrew.

Mr. Mizrahi says that if a retailer wanted, it could have as much as 50,000 square feet within the complex, as space is customizable. 

What’s remarkable about One Bloor’s retail component is its ceiling heights and lack of interior columns. Each of the nine levels will feature 22-foot ceilings, including the concourse level. The building’s exoskeleton design allows for column-free interiors, providing retailers with customizable spaces providing clean, ‘uncontaminated’ sight lines and better opportunities for pedestrian visibility. Prior to this space becoming available, a number of retailers complained that they were unable to find appropriate “brand experience” retail spaces in Toronto as much of Bloor Street’s existing retail space is older, smaller, and lacks dramatic ceiling heights. 

Mr. Mizrahi said that the five or so large retailers will be “international brand experience stores” found on streets such as Fifth Avenue in New York City and North Michigan Avenue in Chicago. Mr. Mizrahi would not discuss these retailers as he is bound by confidentiality, and he says that they may be revealed to the public as early as this summer. 

Mr. Mizrahi revealed that he paid about $207 million for the 27,640 square foot property, combining several land parcels. The largest parcel, located on the southwest corner of Bloor and Yonge Streets, recently housed storied menswear retailer Stollerys. Besides the Stollerys property at 1 Bloor Street west, Mr. Mizrahi owns the neighbouring 11 Bloor Street West building (formerly housing a French Connection store) as well as all of the retail buildings south of Stollerys up to 768 Yonge Street. Mr Mizrahi said that his new one-million square foot tower will cost a further $1 billion to construct. 

The project’s retail podium will be intersected by a 196 foot high atrium which will act as a public space. Mr. Mizrahi said that this space will be somewhat similar to New York City’s Rockefeller Center Plaza. During the winter holiday season, for example, a Christmas tree will be installed and at other times of the year, various festivities may occur. A living wall will adorn the new atrium, helping to create a warm and inviting space for guests. The atrium will also provide an access point to residents of the luxury condominiums to be located upstairs. 

We asked Mr. Mizrahi specifically about the tower’s residential component, spanning 72 floors above its retail podium. Mr. Mizrahi indicated that the residences will be luxurious, boasting 10 foot clear ceilings with no bulkheads – something unusual among even Toronto’s best luxury towers. These high, bulkhead-free ceilings will be obtained by creating floor-to-slab heights of about 12 feet. Penthouses and sub-penthouses will have even higher ceilings, likely spanning 12 feet — also without bulkheads. There will be approximately five penthouse floors with these extra-high ceiling heights, according to Mr. Mizrahi, depending on final tower design. Suite floor plans will be customizable, as there will be no interior columns because of the building’s exoskeleton design. Mr. Mizrahi noted that floorplan customization was also available at his two most recent projects in Yorkville, 133 Hazelton Avenue and the neighbouring 181 Davenport Road, both of which have sold out. 

GROUND FLOOR OF ONE BLOOR’S ATRIUM. RENDERING: MIZRAHI DEVELOPMENTS

A 10-level, 600-space parking garage will be operated by a valet service. Residents will therefore not own a particular space in the garage. 

Mr. Mizrahi revealed that prices for these residences could average in the $975 to $1,000 per square foot range, depending on market demand, though some units will be priced at over $2,000 per square foot. Unit prices could start somewhere in the $600,000 range according to Mr. Mizrahi, and could go to over $30 million for a penthouse spanning 1.5 floors or even two full floors. Each floor plate in the building will span about 9,000 square feet and given that 15% of this will be devoted to common areas (hallways, stairs, elevators, utilities), each floor will feature about 7,650 square feet of residential living space. A two-level penthouse, if built, could therefore span an impressive 15,300 square feet, being among the largest in North America. 

About a thousand feet back down to the ground, Bloor Street’s recently installed granite sidewalks and landscaping will be extended southward down Yonge Street alongside The One. Current 8.5 foot wide sidewalks on Yonge Street will be extended to a width of almost 17 feet while Bloor Street’s 14 foot sidewalks will widen to over 27 feet. Remarkably, for those unfamiliar, similar granite sidewalks and landscaping will also be installed on neighbouring Hayden and Charles Streets between Yonge Street and Church Street, helping transform the entire neighbourhood into something iconic and more upscale. 

We’ll update this article when we’re permitted to reveal the identities of The One’s retail tenants, as well as discuss any interesting new developments. A public consultation on the project in scheduled in May, and considerably more information on the project will be revealed this summer, according to Mr. Mizrahi. 

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