Montreal-based activewear brand Lolë (Live Out Loud Everyday) plans to more than double its Canadian store count and substantially grow its sales over the next several years. We spoke with President & CEO Bernard Mariette to learn more.
Founded in 2002 in Longueuil, Quebec, Lolë caters to the active urban customer. It specializes in apparel for yoga, running, swimming and other activities, as well as casual fashion apparel. All locations offer free exercise meet-ups twice weekly at a local park, as well as lectures given by yoga/pilates specialists, and nutrition experts. Tea and fruit are served daily at each store location.
The brand currently has 17 free-standing Canadian locations, and Mr. Mariette says that over the next several years the brand intends to operate between 30 and 40 Canadian stores. Lolë’s first choice for store locations is streetfront retail space – although with Canada’s weather, the brand is also open to enclosed malls and outlet centres. Lolë will concentrate its Canadian store expansion in Western Canada and Southern Ontario. Locations in Saskatchewan are being considered and according to Mr. Mariette, a Calgary location is “going to happen” in the next while. Lolë is represented by Montreal-based brokerage Think Retail, and seeks retail space in the 1,250 to 2,000 square foot range.
Lolë opened its latest location last month in Whistler, BC. Mr. Mariette says that Lolë stores do well in four-season resort areas, enjoying tremendous sales in Mont Tremblant, QC, and Banff, AB, for example. Being a four-season resort is key, according to Mr. Mariette, in order to ensure year-round sales. Winterwear, for example, has become a popular category at Lolë and being from Montreal, the brand endeavours to make its designs more fashion-forward than the competition.
Mr. Mariette explains that Lolë has a similar ‘DNA’ to Lululemon, but with a broader focus. About a third of Lolë’s sales are from yoga-related products, about a third are from jackets and winter-related apparel, and the remainder are from general sportswear and accessories.
Lolë currently operates 41 stores worldwide, including 17 Canadian locations. It also has 42 international ‘retail partnerships’, which are essentially shop-in-store locations for the brand. The company is looking to operate almost 100 free-standing stores worldwide by the year 2019, as well as over 80 retail partnerships.
Lolë’s sales have been stellar both in Canada and internationally, and they continue to grow. In 2009, Lole forecasted its 2014 sales to be about $97 million. The company exceeded that number, enjoying sales in excess of $105 million last year. The company’s sales forecasts for 2015 are about $125 million and for 2017-2018, the company predicts revenue of about $210 million. Lolë sees tremendous international growth opportunities, especially in the United States.
Lolë plans to open four or five Canadian locations in 2015, and we’ll update you when we learn more.
Upscale Montreal-based multi-brand retailer Alton Gray is looking to open as many as six Canadian locations. We spoke with its president, Ted Rozenwald, to learn more.
Alton Gray’s first store opened in September of 2013 at Le Carrefour Laval, north of Montreal. The 3,660 square foot store features luxurious interiors, highlighted by marble and wood, as well as a grand central chandelier.
The store features over 80 contemporary (including many European) brands for men and women. Collections are profiled in a variety of small departments, including a men’s and women’s denim room, a section dedicated to designer footwear, handbags and jewellery, and a L.A.M.B. shop-in-shop . Some housewares and gifting items are also carried.
Alton Gray president Ted Rozenwald says that he’d like to open about six Canadian stores. New locations could either be in malls or on urban streetfronts, depending on opportunity. Stores will ideally be in the 3,000 to 6,000 square foot range. Mr. Rozenwald says that he’d like to possibly open a store at Toronto’s Yorkdale Shopping Centre, given its strong sales and tenant mix. He also says that he’d like to open in fashion-forward Vancouver, either in a mall or on a streetfront location. Some day, Alton Gray could also expand into the United States, though no timeline is in place.
Alton Gray is owned by 25 year-old Montreal garment company Manhattan International. Mr. Rozenwald says he opened Alton Gray as a way to gain first-hand insight into consumer preferences and behaviours.
We’ll update you as Alton Gray opens new Canadian locations.
Popular Vancouver-based Saje Natural Wellness has announced that it will open 12 new locations, as it looks to grow to about 50 locations by the year 2018. Its aggressive expansion is especially impressive, considering that Saje had only 14 stores when we first reported on the company in September.
Ten of the 12 locations to open in 2015 include:
Kingsway Mall, Edmonton, AB
Market Mall, Calgary, AB
Metropolis at Metrotown, Burnaby, BC
Rideau Centre, Ottawa, ON
Connestoga Mall, Waterloo, ON
Limeridge Mall, Hamilton, ON
Mapleview Mall, Burlington, ON
Sherway Gardens, Toronto, ON
Toronto Eaton Centre, Toronto, ON
Oshawa Town Centre, Oshawa, ON
1 of 2
Photo: Saje Natural Wellness
Photo: Saje Natural Wellness
Saje will reveal the last two locations at a later date. In 2014, Saje opened a total of eight stores in West Vancouver, Calgary, Saskatoon, Winnipeg, as well as four locations in the Greater Toronto Area.
Founded in 1991, Saje retails hundreds of different natural wellness products, accessories and gift ideas. Products contain 100% natural ingredients, including plant-derived essential oils and base ingredients. With impressive revenue growth of 122% and unprecedented same store comparable sales of 57% in 2014, Saje currently operates 22 stores in Vancouver, Kelowna, Edmonton, Calgary, Red Deer, Saskatoon, Winnipeg, and the Greater Toronto Area.
Saje plans to continue its expansion, seeking space between 700 and 1,200 square feet in top tier malls and high traffic street front locations. Its current focus will be on Ontario, Alberta and Atlantic Canada, although it will also consider locations Canada-wide. John Snable is responsible for mall opportunities and Josh Campbell, VP Retail, is responsible for high profile street-front locations. For leasing enquiries, contact johnsnable@sympatico.ca or josh@saje.ca.
Total retail sales increased just 2.4% year-over-year in November 2014 on a not seasonally adjusted basis, according to the latest numbers from Statistics Canada. This seems to be a typical correction from immediately prior months. For the 3 months ending November, retail sales were still up 4.9% versus the same period a year ago. Nevertheless, it appears that Black Friday has topped out in and is no longer providing an extra boost.
The underlying 12 month trend (green line in the above chart) has now been improving for about a year and a half. The 3 month trend is still running ahead (orange line), indicating the up trend will continue.
The lackluster November gain was mostly due to an unusually slow month in the Food & Drug sector. Automotive & Related was also off from its previous pace, which was expected due to lower gasoline prices. Store Merchandise however continues to show improving retail sales gains.
Goodbye Target
The big recent news of course is that Target has decided to pull out of Canada, as quickly as possible it would seem, after burning through billions of dollars. Volumes have been written about what Target Canada did wrong. A more economical discussion would be: What did Target Canada do right?
Food & Drug Stores
The Food & Drug sector has a history of sales ups and downs, and in November 2014 “downs” from its two largest store types coincided. The result was that sector sales were down 0.3% for the month versus November last year, and this dragged down the overall retail average. For the 3 months ending November 2014 nevertheless, retail sales increased 2.5%. Although this is a very modest gain, the underlying trend (green line in the above chart) is still slightly better than it was a year or two ago, despite the November setback.
Supermarkets & grocery stores had a poor November, with retail sales down 1.0% year-over-year. While health and personal care stores gained 1.4% for the month, this was well off their previous year-to-date sales increase of 7.4%. Even beer, wine and liquor stores were down 2.8% in November. The only positive picture in this sector was in convenience stores, with sales up 6.1% for the month.
Store Merchandise
Retail sales growth in the Store Merchandise sector is still continuing to improve. The 3 month trend (orange line in the chart) continues to lead the underlying 12 month trend (green line), which is now at a 6 year high and still heading up.
Most store types in this sector had above average sales gains in November 2014, especially other general merchandise stores, clothing stores, shoe stores, and sporting goods, hobby, book & music stores. Only jewellery, luggage & leather goods stores and miscellaneous retailers had a sales decline.
In general, Store Merchandise appears to have strong positive momentum heading into 2015.
Automotive & Related
Sales growth in the Automotive & Related sector is flattening out, although at a level above the total retail average, at least for now. This is the net result of trends in its two largest store types.
New car dealers’ sales were up “only” 5.7% in November, but this came after two months of very strong gains. For the 3 months ending November, sales were ahead a stunning 11.0% from the same period a year ago. The recent slight decline in Canadian interest rates may extend this hot streak a little longer.
Gasoline station sales, on the other hand, declined 2.7% in November and are heading down fast due to the collapse in pump prices. This could be the scenario for up to year as comparisons will be to the relatively high gas prices that prevailed for the first part of the year. While many gas stations are also convenience stores, this side of the business is not nearly enough to make up the difference.
By The Numbers
Ed Strapagiel is a consultant specializing in applied marketing, business development and strategic planning. [Ed Strapagiel’s Website]
It’s official: Japanese fast-fashion retailer UNIQLO is coming to Canada. Its first two Canadian locations will open in the fall of 2016. More locations will follow as lease negotiations continue.
Canada’s first two confirmed Uniqlo flagship locations include a 28,000 square foot location at Toronto Eaton Centre, as well as a 24,000 square foot location at Toronto’s Yorkdale Shopping Centre.
Uniqlo’s Toronto Eaton Centre flagship will locate next to H&M at the corner of Yonge Street and Dundas Street West. It will be directly north of the mall’s new 213,000 square foot Nordstrom store, scheduled to open in the fall of 2016. The two-level store will be accessed via the mall’s main entrance near Dundas Street, with approximately 1/3 of the store being on the ground floor and the remaining 2/3 being upstairs. Saks Fifth Avenue will also open at Toronto Eaton Centre in 2016, occupying 150,000 square feet over four floors on the Yonge Street side of the Hudson’s Bay building. Below, we’ve indicated where Uniqlo will locate in Toronto Eaton Centre.
Uniqlo will compete with neighbouring fast-fashion retailer H&M, as well as Zara and TopShop/Top Man, all located within the downtown Toronto mall. Los Angeles-based fast-fashion brand Forever 21 is also just up the street. Canada’s first location for Japanese minimalist retailer MUJI is across Dundas Street from Toronto Eaton Centre, with some clothing styles noticeably similar to those carried at Uniqlo.
According to a press release, the Toronto Eaton Centre flagship store will carry a comprehensive selection of premium denim, Supima cotton T-shirts, Polo’s and fleeces, as well as Uniqlo’s proprietary collections: AIRism, HEATTECH, and Ultra-Light Down.
“We’re very pleased that UNIQLO has chosen the city of Toronto as its first entry into Canada and will be opening at Toronto Eaton Centre in the Fall of next year,” said Ron Wratschko, Executive Vice President of Operations at landlord Cadillac Fairview.
Uniqlo’s Yorkdale Shopping Centre flagship will span two floors at the north end of Yorkdale’s new $331 million, 298,000 square foot Nordstrom Wing, scheduled to open in the fall of 2016. Uniqlo will be joined by a number of first-to-market retailers in the new wing, and we’ll discuss these at a later date. Below are plans showing where Uniqlo will locate within Yorkdale Shopping Centre.
“We are very excited to welcome UNIQLO to Canada. Canadian shoppers and fashion enthusiasts have been anticipating this news for a while. I’m very proud that Yorkdale will be introducing UNIQLO to our shoppers,” said Claire Santamaria, Yorkdale Shopping Centre General Manager. “We have a proven track record for helping globally-renowned brands enter Canada for the first time and we’re very much looking forward to supporting the launch of UNIQLO in the same way.”
“Yorkdale Shopping Centre is one of the highest performing shopping centers in North America,” said Larry Meyer, CEO of UNIQLO USA and Canada. “We’re delighted to join this thriving fashion and retail epicenter bringing customers a comfortable and welcoming shopping environment and the high-quality, fashion apparel that UNIQLO is known for around the world.”
“Uniqlo is growing and I thought — we all thought — that Canada was a terrific market, especially starting in Toronto,” said Mr. Meyer. “It’s in reasonable proximity to our New York City flagship store on 5th (Avenue) and we thought it would be a natural expansion. My past has shown Canadians to be open people and very willing to welcome new brands,” he said. “I believe we have unique products with Uniqlo. We’re not just a mass merchandiser of branded goods. Our products are our brand.”
Uniqlo’s choice of American locations can be considered an indication of what it wants in Canada: prime retail space on busy streets and in prominent malls. Expect large Canadian Uniqlo flagships, as well as some smaller mall-based stores.
Mr. Meyer indicates that Vancouver could be the next Canadian market for Uniqlo, as well as various Canadian cities.
Sources inform us that Uniqlo is talking to various Canadian landlords as it searches for Canadian retail space. In March of 2014, the Financial Post reported that Uniqlo was in talks to open at Toronto’s Yorkdale Shopping Centre, and the article’s source was obviously correct. Toronto and Vancouver are ideal cities for the Japanese retailer: both see exceptionally high retail sales, large Asian populations, and considerable Uniqlo brand awareness. Other desirable markets include Montreal, Edmonton, Calgary, and possibly Ottawa and Winnipeg, as the company continues expanding.
Uniqlo’s goal is to become the world’s top-selling fashion retailer. As its popularity increases, it could meet this goal within the next several years. Currently, Spanish-owned Inditex (owner of Zara and other brands) holds that title.
Uniqlo currently operates 40 stores in the United States, including 26 locations on the east coast and 14 locations on the west coast. Many more will follow as Uniqlo expands into the American midwest this fall, when its second-largest U.S. location, measuring 60,000 square feet, opens on Chicago’s North Michigan Avenue.
Besides its American stores, Uniqlo has about 1,500 stores globally in Japan, Australia, China, France, Germany, Hong Kong, Indonesia, Malaysia, Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, and the United Kingdom. Canada will be Uniqlo’s 18th market.
Uniqlo is a brand of Japanese retail holding company Fast Retailing Co. Ltd., which designs, manufactures and sells clothing under various brands including Theory and Helmut Lang, in almost 2,900 stores worldwide.
In June of 2014, we analysed locations in various Canadian cities where Uniqlo might choose to locate. The article received tens of thousands of readers, speaking to the popularity of the Japanese brand.
Yorkdale’s leasing manager Greg Schmidt will be discussing the success of his mall at this year’s Thought Leadership Conference. The one-day retail-focused event will merge industry professionals and academics, including networking, talks by representatives of Google, Microsoft and Pepsi Co. and a social event to be hosted by Retail Insider and the University of Alberta School of Retailing. The conference takes place March 6 in a hotel connected to the terminal at Edmonton International Airport.
We’ll keep you updated as we learn more on Uniqlo’s Canadian store expansion.
Over the weekend, Holt Renfrew closed three of its smaller locations. Yesterday (January 25) the luxury retailer closed its Ottawa and Quebec City stores and on Saturday, January 24, Holt’s shuttered its small Winnipeg shopping suite. Holt Renfrew will now focus on operating larger stores in a handful of Canadian cities, as it embarks on a $300 million expansion which will see its square footage increased by approximately 40%.
Measuring only 33,000 square feet, Quebec City’s Holt Renfrew was located at the upscale suburban Place Ste-Foy shopping centre. Ottawa’s 36,000 square foot downtown Ottawa location was within the CD Howe Building at 240 Spark Street, and Holt’s 2,990 square foot downtown Winnipeg shopping suite (served by merchandise from other stores) was located within the struggling Portage Place shopping centre.
Holt Renfrew was founded in Quebec City in 1837 and in the 1980’s had three locations in that city. Holt’s first opened in Place Ste-Foy in 1965. Holt Renfrew’s first Ottawa location opened in 1945 when the company acquired Simons Furs. Holt Renfrew’s first Winnipeg location opened in 1910 on Portage Avenue.
Holt Renfrew is left with eight stores in five Canadian cities. Holt’s Vancouver flagship spans 140,000 square feet, with plans for a further expansion. Its Calgary store measures about 147,000 square feet, while its Toronto flagship measures over 180,000 square feet (excluding a separate 16,500 square foot men’s store up the street). Its Toronto Yorkdale store is about 120,000 square feet and its Square One Mississauga location, opening in 2016, will be about the same size. Holt’s 84,000 square foot Montreal location will close when a merged 220,000 square foot Ogilvy/Holt’s opens in 2017.
Holt’s will also continue to operate two smaller locations. Company representatives say that its 33,670 square foot Sherway Gardens store in Toronto will remain open, as will its 35,000 square foot Edmonton Manulife Place store. Given that most Holt Renfrew stores will be in excess of 120,000 square feet, however, some analysts question the future of Holt’s Sherway and Manulife Place locations. Regarding Edmonton, Holt Renfrew president Mark Derbyshire said, “While its business as usual for Holt Renfrew Edmonton for now, we continue to explore options to expand our store presence in the Edmonton market.”
Analysts say that Holt’s focus on its larger and more productive locations is partly a response to Saks Fifth Avenue‘s intention to open as many as seven Canadian stores over the next several years, as well Nordstrom‘s intention to open up to 10 Canadian locations. Upscale menswear retailer Harry Rosen also continues to substantially upgrade its fleet of stores, including several replacement locations.
Quebec City-based fashion retailer La Maison Simons will open its second Edmonton location at Londonderry Mall in the fall of 2017. The two-level 88,000 square foot store will replace part of the mall’s current Army & Navy location, as well as occupy space formerly occupied by Sport Chek. Londonderry Mall is undergoing a $130 million overhaul which will see the addition of various new retailers, as well as an innovative rebranding.
Londonderry will be the third Alberta location for La Maison Simons, following the November 2014 announcement that a 92,000 square foot Simons will open in downtown Calgary in March of 2017. According to CEO Peter Simons, a second Calgary location could also open in the coming years, possibly at Southcentre Mall.
La Maison Simons has substantial growth plans over the next several years. In an interview with Mr. Simons late last year, he stated that he’s looking to eventually operate as many as 20 Canadian locations. This is remarkable, considering that the brand currently operates nine stores — eight of them in the province of Quebec, as well as a 126,000 square foot location which opened at West Edmonton Mall in October of 2012.
Londonderry Mall is in the process of undergoing a $130 million overhaul which will see completely new interiors, innovative new branding, and a variety of new tenants at various price points. The mall’s common areas, mall entrances, flooring, storefronts, escalators, elevators, washrooms, ceilings and seating areas will be fully renovated. A new full-service dining experience will be added, relocating the mall’s existing food court to the west side of the mall. Interior and exterior lighting will be converted to energy efficient LED, and a state of the art security surveillance system will also be added. The project involves a partnership between MMC Architects and GH+A Design.
The 779,000 square foot two-level Londonderry Mall currently houses about 150 retailers and features anchors Hudson’s Bay (118,000 square feet), Army & Navy (60,200 square feet), Save-On-Foods (38,300 square feet), Winners (31,800 square feet) and Shoppers Drug Mart (17,000 square feet). It boasts in excess of 3,500 parking spaces.
When it opened in 1972, Londonderry was Canada’s largest mall west of Toronto, and the only two-level mall in Western Canada. The 85 store mall was anchored by Eaton’s, The Bay, Woolco, Safeway, and a movie theatre. In 1984, the mall added 65 additional stores and services.
Simons was founded in Quebec City in 1840. The retailer is unique in how it pairs its substantial private-label fashion with a handful of higher-priced designers. Despite its large floorplates, Simons stores lack cosmetics departments and the large footwear areas typical in similar-sized department stores. Simons currently operates nine stores, including eight in the province of Quebec and one in Edmonton. The company has over 2,000 employees.
Ivanhoé Cambridge will invest over $50 million to redevelop and modernize the upscale Place Ste-Foy shopping centre in Quebec City. The first phase will include redeveloping some of the mall’s interior, including a vacant 68,000 square foot space formerly occupied by Les Ailes de la Mode. The mall’s food court will be relocated to the mall’s north wing, and new restaurants and retailers will be added.
Besides the planned new work, the current replacement of flooring in the mall’s western section will continue.
The mall will see new Lululemon and Nespresso locations. Several existing retailers will also expand, move or redesign their spaces. Atmosphere will relocate into a space 5,000 square feet larger, and Browns Shoes will undergo a complete renovation. The Gap will be moved and redesigned, and Jean-Paul Fortin footwear will move to a larger space. Délac-table will also move to a newly redesigned location.
Upscale Place Ste-Foy is one of Canada’a most productive malls, with sales in excess of $665 per square foot annually. The mall sees more than 8.6 million visitors a year and boasts an occupancy rate of over 90%. The 590,000 square foot mall features 135 stores, including upscale shops such as Georges Rech, Steilmann, Rudsak, and La Maison Simons‘ world flagship. On January 25, the mall’s 33,000 square foot Holt Renfrew store will close forever.
Ivanhoé Cambridge owns both Place Ste-Foy and neighbouring Laurier Québec. The two mall properties span a combined 1.84 million square feet with 369 retail outlet.
Ivanhoé Cambridge has announced that Edmonton’s Outlet Collection at EIA (Edmonton International Airport) will be larger than expected. The 100-store centre will be 65,000 square feet larger than originally announced, spanning an impressive 415,000 square feet. It will be Edmonton’s first-and-only ‘pure’ outlet centre.
The enclosed mall will anchor the airport’s Highway Commercial Development project, a plan by EIA to create an expansive shopping, office, entertainment and hotel development adjacent to the Queen Elizabeth II Highway at Airport Road.
The Outlet Collection at EIA will feature “warm modern fashion-forward districts” and a dining hall within the enclosed “industrial chic” shopping environment. The property will benefit from two new services:
1) An airport shuttle service which will provide quick access to airport travellers, including those on longer layovers, and
2) A parcel storage service to accommodate shoppers who buy on the way through, with a pick-up service on the return leg of their travel.
“We are very pleased with the momentum of this exciting project, a natural evolution of our Mills and Outlet Collection banners,” declared Paul Gleeson, Executive Vice President, Global Development, Ivanhoé Cambridge. “Based on the overwhelming success of our first Outlet Collection at Niagara, which opened in May 2014, and the Outlet Collection at Winnipeg which is to break ground this coming summer, we look forward to bringing this shopping experience with irresistible outlet brands to the people of the greater Edmonton market.”
We’ll report more on the outlet mall as details become available.
Swiss luxury timepiece brand Jaeger-LeCoultre will open its first Canadian boutique in Vancouver. Located at 1012 Alberni Street, Jaeger-LeCoultre will replace luxury legwear and knitwear brand Fogal of Switzerland, which vacated the small Alberni Street retail space in August of 2014.
Jaeger-LeCoultre is the latest luxury brand to land on Vancouver’s upscale Alberni Street, located at the heart of Vancouver’s ‘Luxury Zone’. Sources say that a number of other world-class brands are seeking retail space in the area, and that a number have already signed leases for retail space on Alberni Street and neighbourhing Thurlow Street, both within The Carlyle retail complex and Bentall Kennedy’s 745 Thurlow tower across the street.
Founded in Switzerland in 1833, Jaeger-LeCoultre is now a subsidiary of luxury goods conglomerate Richemont. Jaeger-LeCoultre has eight locations in the United States. Of those, four are in the Miami area (Aventura, Bal Harbour, Miami Design District, Palm Beach), and two are in the Los Angeles area (Beverly Hills and South Coast Plaza). New York City and Las Vegas also each have one free-standing Jaeger-LeCoultre boutique. The brand is also carried in upscale retailers across North America.
Jaeger-LeCoultre representatives declined to provide comment for this article, though they confirmed its location. We’ll update this article when we learn of the store’s opening date.
