Home Blog Page 1377

WHAT IS YOUR IMPRESSION OF TARGET’S CANADIAN STORES?

By
Retail Insider
-
Target: (Photo: David Goldmann)

Target opened its first Quebec stores yesterday, as we reported would happen last week. A reader sent us feedback and a photo. We’re curious to hear your feedback about Target’s Canadian stores as well. 

David Goldmann emailed us to let us know his reaction to his visit to Laval’s new Target store. He said it was very busy, and that merchandise was selling well. Perhaps too well – he indicates shelves will need to stocked quickly to keep up with demand. 

Two weeks ago we visited a Target store in Coquitlam, BC. Perhaps we had high expectations because our initial impressions were less than stellar. The store had an odd smell, shelves were only half-stocked and their clothing selection left much to be desired. 

Target is in the process of opening stores across Canada, and will continue to open Canadian locations periodically throughout the year. Here is a list of Target stores scheduled to open October 18th. 

To send us your comments on your experiences at Canadian Target stores, please feel free to leave them on our Facebook page, or to tweet them to our Twitter account. This is the link to comment on Facebook specifically about this article. 

[Target Canada website]

ClearlyContacts.ca Announces Retail Expansion Plans After Achieving $2,000/sq ft in Sales

By
Retail Insider
-
Photo: ClearlyContacts.ca

Canada’s largest online eyewear retailer, ClearlyContacts.ca today released sales figures from its first North American brick and mortar store. Figures show ClearlyContacts.ca is now generating over $2,000 per square foot, ranking it among retail giants such as Tiffany & Co. and Lululemon Athletica Inc. In addition to sales figures, the company also announced its retail expansion plans. This includes moving the Robson store in November to a larger, permanent location beside the newly opened Victoria’s Secret, as well as a second retail store which opened in Vancouver last week.

“Although the online shopping experience is growing in popularity, many shoppers are using multiple channels to shop and still value the ability to interact with the product,” said Roger Hardy, founder and CEO of ClearlyContacts.ca. “We accredit strong sales to the adoption of the omni-channel model and the importance we’ve placed on developing our business to serve our customers in a way that is convenient for them.” 

ClearlyContacts.ca made the transition to the omni-channel model with the opening of its first brick and mortar location last March. To date, the sales at the brick and mortar location have increased month over month by as high as 20 per cent. A report released by UPS states that 44 per cent of consumers are more likely to shop with a retailer if they can buy online and pick up their purchase in a retail location. These findings support the notion that consumer behaviour is evolving which is why business leaders are choosing to transition to the omni-channel model providing consumers with multiple channels to shop from including: the internet, bricks and mortar and mobile applications.  

“We are pleased with the results of our Robson store and have achieved leading industry standards,” said Steve Wallace, Vice President of Sales at ClearlyContacts.ca. “These results lead to the opening of our second location in Vancouver and are now seeking other markets across Canada.”

Glen Korstrom at Business In Vancouver Magazine wrote an excellent article providing more details. The link to his article is here, including details as to where Clearly Contacts’ permanent Robson Street location will be. 

[Clearly Contacts website] 

SAKS REPS IN VANCOUVER TO DETERMINE POTENTIAL SAKS SPACE

By
Retail Insider
-
Hudson's Bay (Photo: CBRE)

A source tells us that representatives from Saks Fifth Avenue are visiting Vancouver this week to determine how Saks will be configured within the existing flagship Hudson’s Bay department store. Rumour has it Saks might take up one single floor of the eight-level store, and this floor would be above level two and below level six. 

The store’s floorplates are each about 70,000 square feet, according to our measurements. If Saks does, indeed, take just one floor, Vancouver’s (first) Saks store will only be about 70,000 square feet. As a comparison, Vancouver’s Holt Renfrew is just over 140,000 square feet. 

If Saks is to be located on an upper floor of downtown Vancouver’s Hudson’s Bay, something will have to be done with the store’s current elevators. Not to be negative, but the elevators need an overhaul. To put a more positive spin on things, Saks could be the motivation to complete ongoing renovations on the enormous Bay building. 

We’ll keep you updated when we find out more. 

[Hudson’s Bay website]

[Saks Fifth Avenue website]

BREAKING: SAKS APPOINTS NEW CEO FROM HARROD’S AND NOT BONNIE BROOKS

By
Retail Insider
-

Despite speculation that former Hudson’s Bay president Bonnie Brooks would become CEO of Saks Fifth Avenue, the job has been given to Marigay McKee, ‘chief merchant’ of Harrod’s. She will begin her duties at Saks in mid-December of this year. 

Saks CEO Stephen Sadove and president/chief merchant Ronald Frasch will both leave Saks after the sale is completed later this fall. Sadove stands to gain almost $23 million for his exit, while Frasch will gain almost $10 million. 

Boards of directors for Saks and the Hudson’s Bay Company have approved the Saks purchase by HBC. Saks shareholders still have to vote on the sale to HBC, and it’s expected to pass. A 40-day “go shop” period recently expired, clearing the way for the deal’s completion. 

We reported in July that HBC bought Saks Fifth Avenue for about $2.9 billion. This paves the way for Saks Fifth Avenue stores to open accross Canada. 
[Source: Drapers]

Further to the above, we were also provided this press release after we published the article above: 

HBC Announces Future President of Saks Fifth AvenueEstablishes Office of the Chairman
New organizational structure in place for growth

TORONTO–(BUSINESS WIRE)–Hudson’s Bay Company (TSX: HBC) (“HBC” or the “Company”) today announced the appointment of Marigay McKee as the future President of Saks Fifth Avenue. The appointment will take effect shortly after completion of the planned Saks acquisition, which is expected to close before the end of the calendar year, subject to approval by Saks shareholders, regulatory approvals and other customary closing conditions.

“I am delighted to join Hudson’s Bay Company to head up Saks Fifth Avenue and work with their dedicated team”

“Marigay McKee’s experience as an effective world-class leader in the international luxury retail space is well-aligned with our vision for the Saks Fifth Avenue brand,” said Richard Baker, Governor and CEO of Hudson’s Bay Company. “She has a proven track record of success at the highest level of luxury and I’m very excited for her to head up our Saks business at HBC.”

McKee joins Hudson’s Bay Company with an extensive resume in the luxury retail sector and over 20 years of management and merchandising experience. As Chief Merchant of Harrods, she has overseen the planning and implementation of the merchandising and creative strategies since 2011. She has served on the company’s Board of Directors since 2005, where she worked closely with the company’s shareholders and owners to set the strategic vision for the organization.

McKee joined Harrods in 1999 and was appointed General Merchandising Manager of Beauty in 2000. Over the next several years she added responsibilities for accessories, jewelry and womenswear. McKee was given responsibility for all beauty and fashion merchandising in 2007, where she doubled key businesses, and drove profit and growth strategies. She also oversaw brand and merchandising strategy, marketing and visual merchandising. McKee is a member of the British Fashion Council board, Chairman of the BFC/Vogue Fashion Fund Mentoring Committee, a luxury advisor to the Financial Times, and has done consultancy work in Russia with TSUM and Mercury Group.

“I am delighted to join Hudson’s Bay Company to head up Saks Fifth Avenue and work with their dedicated team,” said McKee. “Saks Fifth Avenue is one of the world’s preeminent luxury retailers with a rich history and tradition of exceptional customer service.” McKee added, “Saks presents a great opportunity as a world class brand with new frontiers for development. I’m excited for this unique challenge as we embark on this new chapter at the company.”

New organizational structure in place for growth

In addition, HBC announced the creation of a new Office of the Chairman, consisting of Richard Baker, Governor and CEO, and Donald Watros, Chief Operating Officer. The senior executives of HBC’s retail businesses, as well as other key holding company executives and the heads of certain shared services units, will report to the Office of the Chairman. This new organizational structure is designed to advance the Company’s development as a growing, premier North American retailer and ensure a seamless merger process with Saks.

Mr. Baker added, “With the Office of the Chairman we are creating a robust leadership team that will focus on managing and growing HBC, along with our strong and expanding portfolio of brands. Our goals for this new structure are to maintain the unique identity of each retail brand, to build an effective and cost-efficient platform of shared services, and to position the Company for growth and expansion.”

Don Watros noted, “By creating a well-coordinated operating structure reporting to the Office of the Chairman, we can ensure that each business is managed in a consistent fashion aligned with HBC’s corporate goals. Furthermore, this structure will provide each brand with the resources and investment it needs to best serve its customers and realize its growth potential, maximizing the performance of the Company overall.” He added, “I’m pleased to welcome Marigay to HBC and am confident that she is well positioned to lead the Saks team, in keeping with our goals to operate and grow Saks as a separate business unit under the HBC umbrella.“

Additionally it has been announced that Marc Metrick, currently Executive Vice President of HBC, will become Chief Administrative Officer reporting to the Office of the Chairman. In his new role, Mr. Metrick’s principal responsibility will be integrating the Saks business into the HBC portfolio.
Jennifer de Winter, currently EVP, Director of Stores for Saks, Inc. will take on the role of EVP, Chief Merchandising Officer of Saks Fifth Avenue, where she will report to Marigay McKee.

“Our team is structured to ensure business as usual at Saks Fifth Avenue. We will continue to focus on customer service and fashion leadership, along with ensuring a seamless transition both internally and externally. Don and Marc were formerly executives at Saks Inc., and bring with them a total of nearly 25 years there. Combined with Jennifer’s 18-year history with the company, we have a strong bench of executives with a deep appreciation for Saks’ culture, traditions and strengths,” Baker noted.

The following key positions will report to the Office of the Chairman:

  • Holding Company and Shared Services
  • Chief Administrative Officer
  • Chief Financial Officer
  • Human Resources
  • General Counsel
  • President—Real Estate
  • Executive Vice President—Store Planning, Construction & Design
  • Executive Vice President—Shared Services Group
  • Retail Business Units
  • President—HBC Department Store Group (responsible for the Hudson’s Bay and Lord & Taylor banners)
  • President—Saks Fifth Avenue (subject to approval of the merger transaction)
  • Executive Vice President—Outlets
  • Senior Vice President—Home Outfitters

Additionally, it has been announced that Steve Sadove, Chairman & CEO of Saks Incorporated, and Ron Frasch, President and Chief Merchant of Saks Fifth Avenue, will not continue with the company following the close of the transaction. Baker said, “I want to thank Steve and Ron for their contributions to the success of Saks Fifth Avenue and wish them well in their future endeavors.”

About Hudson’s Bay Company
Hudson’s Bay Company (HBC), founded in 1670, is North America’s longest continually operated company. In Canada, HBC operates Hudson’s Bay, Canada’s largest department store with 90 locations, unsurpassed in its fashion, beauty, home and accessory designers and brands, as well as thebay.com. HBC also operates Home Outfitters, Canada’s largest home specialty superstore with 69 locations across the country. In the United States, HBC operates Lord & Taylor, a department store with 48 full-line store locations throughout the northeastern United States and in two major cities in the Midwest, and lordandtaylor.com. With approximately 29,000 Associates in Canada and the U.S., Hudson’s Bay Company banners provide stylish, quality merchandise at great value, with a dedicated focus on service excellence. Hudson’s Bay Company trades on the Toronto Stock Exchange under the symbol “HBC”.

About Saks Fifth Avenue
Saks Fifth Avenue, one of the world’s pre-eminent specialty retailers, is renowned for its superlative American and international designer collections, its expertly edited assortment of handbags, shoes, jewelry, cosmetics and gifts, and the first-rate fashion expertise and exemplary client service of its Associates. Today, Saks operates 41 full-line stores in 20 states, five international licensed stores, 69 Saks Fifth Avenue OFF 5TH stores and saks.com, the company’s online store.

YORKDALE BECOMES FIRST CANADIAN MALL TO ACCEPT CHINA’S UNIONPAY CARD

By
Retail Insider
-
Photo: Yorkdale Shopping Centre

Yorkdale Shopping Centre announced today the launch of a new Tourism Program designed to further elevate Canada’s leading shopping centre as a global destination for international visitors. As a part of Yorkdale’s tourism strategy, the shopping centre will become the first Canadian shopping centre to accept UnionPay cards, the only domestic bank card in China and the leading card that visitors from China and other Asia-Pacific countries use while travelling abroad.

Yorkdale’s Tourism Program will also launch with exclusive shopping packages for tourists, multilingual website translation, and personalized tours for pre-registered groups, with additional services to be announced in the coming months.

“We recently surveyed visitors over several weekends and learned that approximately one fifth of tourist shoppers come to Yorkdale from outside North America,” said Lesley Boughen, Tourism Manager, Yorkdale Shopping Centre. “Many international visitors consistently rank shopping as a top activity while visiting Toronto. Our new tourism offerings will ensure that Yorkdale continues to be on the map for fashion lovers from around the world.”

“The Government of Ontario is committed to strengthening our tourism industry as a significant economic driver across the province,” said Michael Chan, Minister of Tourism, Culture and Sport.  “Through our efforts, we received Approved Destination Status in China which has led to substantial increases in tourism and economic activity over the past three years.  This new program addresses the needs of our guests from China and encourages them to explore and experience our unique retail industry – boosting business, economic activity and tourism in Ontario.”

With the launch of UnionPay cards at Yorkdale, it is now easier for visitors from Asia-Pacific countries to make purchases in Yorkdale’s 250 stores. UnionPay cards are accepted in-store by several Yorkdale retailers, or shoppers can simply visit Guest Services to purchase a Yorkdale gift card in a desired amount using their UnionPay card.  China represents one of the fastest growing tourist markets for the Toronto region with visitors from the country increasing by 55 percent in the past three years.[i] Chinese travelers spent $486 million while in Canada in 2012, a 19.2 percent increase compared with 2011.[ii] More than one third of Yorkdale’s tourist shoppers visit Toronto to primarily see friends and families (36 percent), while one fifth of tourist shoppers visit Toronto as a part of their vacation (twenty-one percent).[iii]

Attracting more than 20 million visitors annually, Yorkdale is one of the Greater Toronto Area’s most prominent tourist destinations because of its extensive retail mix and numerous exclusive-to-Canada stores.
The spring and summer of 2013 saw Yorkdale open a number of first-in-market retailers, including AllSaints, and Zara Home, while Canada’s first John Varvatos and White House|Black Market are scheduled to open before the holidays. Other prominent new stores include Canada’s second Massimo Dutti, Mulberry, and the city’s first Ferragamo boutique. The centre will break ground on a $331 million, 298,000 square foot retail expansion in early January 2014, which will be anchored by Nordstrom and open in fall 2016.

About Yorkdale Shopping CentreWith more than 250 shops and services Yorkdale Shopping Centre is Canada’s premier shopping destination. Yorkdale recently underwent a $220 million expansion – the largest and most significant expansion in its history –  growing to a total of 1.6 million square feet of retail space that features some of the world’s best fashion, technology and luxury brands. Offering 7,400 parking spaces, valet parking and seating reservations at the Dine on 3 food collection, everything about Yorkdale is designed to enhance shoppers’ experiences. Yorkdale is co owned by Oxford Properties and Alberta Investment Management Corporation (AIMCo) and managed by Oxford Properties Group. Yorkdale is located at 3401 Dufferin Street, off Allen Road, near the 401. For more information, download the Yorkdale app, visit www.yorkdale.com, or follow @YorkdaleStyle on Twitter, Facebook or Pinterest.

[i] Source: Statistics Canada.[ii] Source: Canadian Tourism Commission Tourism Snapshot: 2012 Year-in-Review.
[iii] Source: Yorkdale Shopping Centre Visitor Survey, 2013.

AGENT PROVOCATEUR TO OPEN IN TORONTO

By
Retail Insider
-
Photo: Agent Provocateur

***** Update: This store opens the evening of Thursday, November 14th 2013*****

British-based lingerie retailer Agent Provocateur continues its cross-Canada expansion with a store set to open this fall at Holt Renfrew in Toronto. It will the the third Agent Provocateur store in Canada, following Vancouver and Toronto stores. 

A 148 square foot Agent Provocateur concession opened in Vancouver’s Holt Renfrew in March 2012, and a second small Canadian location opened in October 2012 at Holt Renfrew in Montreal. 

Free-standing Canadian Agent Provocateur boutiques could come next, according to a source in the company. 

These Agent Provocateur concessions are owned and operated by Agent Provocateur itself. A franchised Agent Provocateur store opened on Vancouver’s Alberni Street in late 2007, only to close in the Summer of 2011. 

For those who are unfamiliar, Agent Provocateur is considered to be a ‘premium’ lingerie company. It was started in 1994 by the son of British fashion designer Vivienne Westwood. It is known for its potentially ‘racy’ ad campaigns, including the video below starring Kylie Minogue.

HOLT RENFREW MAY KEEP ITS SHERWAY STORE

By
Retail Insider
-
Photo: Holt Renfrew Sherway Gardens

Holt Renfrew could keep its location at Toronto’s Sherway Gardens open, contrary to what we reported in April. A source tells us that despite its opening a 120,000 square foot store at Mississauga’s Square One in 2016, Holt’s may keep and enlarge its Sherway Gardens store as well. 

If Holt Renfrew keeps its Sherway store, it will make for a total of 10 full-sized Holt Renfrew stores in Canada.

Holt Renfrew’s Sherway Gardens store is currently one of its smallest, at 33,670 square feet. It is located in a part of the mall currently under expansion. No word yet on the size or configurtion of a renovated Sherway Gardens store if it does, indeed, stay in the mall. 

Holt Renfrew is in the process of a substantial expansion that will see its square footage expanded by 40% via a budgeted $300 million. It is doubling the size of its Yorkdale store in Toronto and will likely expand its Vancouver store over the coming 24 months. More on the possible Vancouver store expansion will follow shortly. 

[Sherway Gardens website]
[Holt Renfrew website]

LA MAISON SIMONS TO OPEN AT PARK ROYAL IN WEST VANCOUVER

By
Craig Patterson
-
Image: Park Royal Shopping Centre

Image: Park Royal Shopping Centre La Maison Simons‘ first Vancouver-area store will open in the fall of 2015 at West Vancouver’s Park Royal Shopping Centre. It will be about 105,000 square feet. It will be located in Park Royal South: the mall is comprised of a disconnected north and south portion, separated by West Vancouver’s Marine Drive. 

By 2015, it will be the third Simons store to be located outside of the province of Quebec. Its first out-of-Quebec store opened last year at West Edmonton Mall, and a Simons store will open at an expanded Rideau Centre in Ottawa in 2015. 

We hinted at Simons’ opening at Park Royal last week when we published an article mentioning that we thought Simons would unveil plans for a Vancouver-area store this month. Astute readers noticed we included a photo of West Vancouver in the article, and we even tagged Park Royal for readers to potentially pick up the clue. The announcement is official so we’re now able to openly report on it. 

Simons is continuing its cross-Canada expansion and is currently negotiating for space at Toronto’s Yorkdale Shopping Centre and Mississauga’s Square One Shopping Centre. Simons is interested in space that will be vacated by Sears Canada, which sold its leases back to landlord Oxford Properties in both of the above malls. 

Simons is also said to be seeking retail space in Calgary and possibly Winnipeg. We’ll elaborate more on this soon. 

La Maison Simons will be part of a $150 million renovation and expansion of Park Royal Shopping Centre. The project will see new stores, new brands and a modernization of the shopping complex. We’ll follow up this article with renderings and floorplans of parts of the expansion. In all, the project will include about 300,000 square feet of new and reconfigured retail space, including an outdoor “village” shopping area. 

Park Royal is the second-largest mall in the Vancouver area. It’s about 1.2 million square feet and has over 280 stores. The mall is located in West Vancouver, one of Canada’s wealthiest municipalities. The mall’s expansion will bring it to over 1.3 million square feet. 

Today (Friday) we will interview Peter Simons to obtain further details on his company’s cross-Canada expansion. 

[Park Royal website]

[La Maison Simons website]

MACY’S SAYS “NO” TO CANADA

By
Retail Insider
-
Image: Macys

Last month we reported that Macy’s could possibly open in Canada by buying Sears Canada. We’ve got an update which may disappoint – Macy’s has no interest either in Sears Canada or in opening Canadian stores.

Macy’s has been looking at opening in Canada over the years and has examined numerous possibilities, from buying The Hudson’s Bay Company to opening newly-built stores at selected Canadian malls. In the early 2000’s, Macy’s thought it had secured almost 20 Canadian locations within Cadillac Fairview malls. Negotiations stalled and the deal fell through.

Macy’s CEO Terry J. Lundgren says that the company no longer has interest in the Canadian retail market, especially now that so many other American retailers have moved north of the border. Nordstrom will open Canadian stores, Saks Fifth Avenue will open within selected Hudson’s Bay real estate, and Hudson’s Bay itself is similar to Macy’s in many ways.

Hudson’s Bay and Macy’s are both large-format department stores generally catering to the middle market, with some luxury thrown in for good measure. Some of Macy’s flagships carry more comprehensive designer selections. Same for Hudson’s Bay. Macy’s is spending a fortune to renovate its New York City flagship, and Hudson’s Bay is doing the same with its Toronto and Vancouver flagships (though not nearly as much as Macy’s $400 million Manhattan store renovation, the most expensive in retailing history).

Canada’s population is about the same as the state of California’s, and our land mass is huge. Canadians’ income and wealth is, on average, slightly above Americans. Our population is, however, generally less likely to display expensive designer labels, limiting most of Canada’s luxury retailing to Toronto and Vancouver. We may appear to be a desirable retail market, but we’re small, spread-out and more likely to save our money or put it into homes and leisure.

Target is already finding its Canadian business challenging, and Nordstrom has expressed frustration coordinating its Canadian expansion. In hindsight, Macy’s might be smart not moving into Canada, at least for now.

We don’t expect many more foreign department store announcements for Canada in the next while. La Maison Simons is expanding, Holt Renfrew will spend hundreds of millions on store expansions/renovations, and Hudson’s Bay will hopefully increase spending on store renovations to bring stores into the 21st century. Buying Saks Fifth Avenue may have been what Hudson’s Bay needed for an update, and we’ll report more on this soon.

So don’t expect Neiman Marcus or Barney’s New York to open in Canada, though if they did, we’d be first in line for their openings.

HUDSON’S BAY VS. HOLT RENFREW: TIME TO DECLARE WAR?

By
Retail Insider
-
Diamond encrusted boxing gloves

We’re noticing that Hudson’s Bay and Holt Renfrew are starting to carry many of the same upscale designers. At first, Hudson’s Bay’s then-president Bonnie Brooks said she wasn’t competing with Holt Renfrew by upscaling Hudson’s Bay. We don’t think this is true, at least not any more – both stores after the same higher-end customer, and we’re seeing many of the same designers are at both Holt’s and Hudson’s Bay’s flagship stores.

Rather than analyse all product categories at once, we’ll do a series of articles with our observations as to how Hudson’s Bay and Holt Renfrew are targeting the same wealthy customer. And now that Hudson’s Bay owns Saks Fifth Avenue, we think there will be even more of a war for luxury labels in Canada. Some smaller, local luxury retailers will be hurt as a result. 

We’ll keep this article brief but we’ll first mention women’s cosmetics. We’ve gotten word that Hudson’s Bay is negotiating with Estée Lauder to bring expensive women’s skincare line La Mer into some of its stores. Hudson’s Bay also wishes to expand the Bobbi Brown label to several of Hudson’s Bay’s more productive locations. La Mer is carried only at Holt’s in Canada, and Bobbi Brown is carried at Holt’s and Sephora (thank you for noticing a previous error, reader comments below). 

More cosmetics label concessions previously only carried at Holt Renfrew will open at Hudson’s Bay. We’ll discuss this in the first of a series of articles analysing how Hudson’s Bay is courting the Holt Renfrew shopper.

[Hudson’s Bay website]

[Holt Renfrew website]

1...1,3761,3771,378...1,416Page 1,377 of 1,416