We’ve received word that American retailers Saks Fifth Avenue and Bloomingdale’s have been inquiring into obtaining Canadian retail space. For example, both stores recently expressed interest in the proposed third anchor store space in a substantially expanded Oakridge Shopping Centre in Vancouver. These retailers have also made enquiries with other Canadian mall landlords.
Saks’ inquiries have been ongoing in Canada for the past 24 months, though they may cease temporarily now that the company is organizing for a possible sale. Saks could find Canadian business difficult since many of its core designer labels already have exclusivity agreements with Holt Renfrew, Canada’s answer to Saks.
Saks Fifth Avenue would likely struggle in Canada given the popularity (and current profitability) of Holt Renfrew. Holt Renfrew’s nine Canadian stores each generate between $800 and $1000+ per square foot according to inside sources, considerably higher than most Saks Fifth Avenue stores. Holt Renfrew’s per square foot sales are some of the highest in the world for such a retailer.
Bloomingdale’s inquiries into selected Canadian retail space began not long after its negotiations with Hudson’s Bay fell through. Hudson’s Bay had wanted to bring Bloomingdale’s concessions into Canada and had even earmarked its Yonge and Bloor Hudson’s Bay store to be converted into Canada’s flagship Bloomingdale’s store. After talks stalled, Bloomingdale’s began examining the possibility of an independent Canadian entry. Even more speculation surrounding the situation is that parent company Macy’s could look to enter the Canadian market. This could be done possibly by buying out selected mall stores from a retailer such as Sears Canada, not unlike what Cadillac Fairview did to escort Nordstrom’s Canadian entrance.
Our in-house retail analyst doubts we’ll see either Saks or Bloomingdale’s come to Canada any time soon. Meanwhile, we’ll keep an ear to the ground and report on any new developments since we’ve been told both retailers are still showing interest in Canada.
