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HAZELTON LANES UPDATE: COULD IT INCLUDE AN UPSCALE DEPARTMENT STORE?

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Retail Insider
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New Hazelton Lanes renderings, including the Avenue Road/Yorkville Avenue corner. Photo: Greybrook Realty Partners

Toronto’s Hazelton Lanes will grow even larger than anticipated, and it could include an upscale department store. We previously reported that Hazelton Lanes’ landlord was seeking to renovate the mall for luxury tenants, and we posted the originally proposed lease plans for the project. The mall’s owner has since secured space for further development. Hazelton Lanes will therefore become even larger than we expected, expanding to the corner of Yorkville Avenue and Avenue Road. 

Originally, that corner site was to be developed by landlords Empire Communities and Greybrook Realty Parnters. It would have included some retail underneath a luxury residential highrise. Empire/Greybrook have decided to align with Hazelton Lane’s landlord First Capital Realty to create a substantially larger Hazelton Lanes with a corner retail presence. This development was first mentioned in a Toronto Star interview, which was published on website Urban Toronto. 

This latest expansion will create a substantial amount of new retail space for the Yorkville area. However, being about two blocks north of popular Bloor Street, the expanded Hazelton Lanes may have difficulty attracting desired luxury tenants. A possible solution would be securing an upscale anchor which would attract more shoppers to Hazelton Lanes, thereby setting the stage for the luxury retail it desires. One such anchor would be a department store like Bloomingdale’s. This would be a score for the mall’s landlords. 

Bloomingdale’s stores have traditionally been over 200,000 square feet. Lately, though, Bloomingdale’s has been opening smaller stores. Its new Glendale and Palo Alto California stores will be about 120,000 square feet, and its Honolulu store will be 167,000 square feet. An expanded Hazelton Lanes could possibly offer space for such an anchor.

We would like to be clear that Bloomingdale’s at Hazelton Lanes is speculation. At the same time, we’ve been told that there are rumours that Bloomingdale’s may be part of the retail assortment being proposed to brokers seeking to fill Hazelton Lanes with luxury retailers. We doubt Bloomingdale’s would move in, though we’re keeping an open mind. We’ll keep you updated on the expansion and renovation of Hazelton Lanes. 

[Hazelton Lanes website]

VANCOUVER’S OAKRIDGE WANTS BLOOMINGDALE’S, SAKS FIFTH AVENUE OR NORDSTROM AS ITS 3RD ANCHOR

By
Retail Insider
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Floorplan: Henriquez Partners Architects. Red Lettering by Retail-Insider.com

The landlord for Vancouver’s Oakridge Centre is courting high-end American department stores including Bloomingdale’s, Saks Fifth Avenue and Nordstrom. We’ve highlighted part of a report noting this, in a new space estimated to be about 155,000 square feet. 

The image below is part of page 51 of the 74-page Oakridge Centre Retail Impact Assessment, prepared for the City of Vancouver by Coriolis Consulting Corporation. Oakridge Centre will substantially expand and is seeking the City’s permission to add new retail space, including three newly built anchor stores (and an adjacent grocery store).

These three department stores aren’t just random examples chosen for the report, according to source Van23H of Vancouver Skyscraper Forum. Oakridge wants one of these stores. We’ll do a quick analysis of the three possible anchors: 

Saks Fifth Avenue at Oakridge Centre: 

Saks Fifth Avenue will open its first Vancouver store within the current downtown Hudson’s Bay store. A second location at Oakridge might seem redundant, given its close proximity to Downtown Vancouver. It should be noted, though, that Oakridge’s expansion won’t be finished until after 2020 and Saks wants to be in Vancouver by late 2014. Given competition in Downtown Vancouver from Nordstrom and Holt Renfrew, it is possible that Saks could eventually exit Downtown Vancouver’s Bay to open a large Oakridge store by 2021. 

Nordstrom at Oakridge Centre: 

In our opinion, Nordstrom is the least likely of the three potential department stores to move into Oakridge. Nordstrom’s Downtown Vancouver store is simply too close to Oakridge, despite the somewhat differing demographic that shops at Oakridge versus Downtown Vancouver. We’re not saying ‘no’ to Nordstrom at Oakridge, but we’d be surprised if Nordstrom opened two stores within a few minute drive/Skytrain ride from eachother. 

Bloomingdale’s at Oakridge Center: 

We expect Bloomingdale’s to be the front runner for Oakridge, despite the new anchor only being about 155,000 square feet. Bloomingdale’s has already been looking at opening in Canada and its new stores are getting smaller. Three new American Bloomingdale’s stores will be 120,000-150,000 square feet each, making the 155,000 square foot Oakridge space large enough. 

Van23H of Vancouver Skycraper Forum tells us that Oakridge’s landlord Ivanhoe Cambridge isn’t interested in having La Maison Simons as the mall’s third anchor. We’ve gotten word, however, that Simons may have finalized a lease in another Metro Vancouver location. We’ll discuss this more in the next couple of weeks. 

Thank you to ‘jlousa’ of Vancouver Skyscraper Forum for directing us to Coriolis Consulting’s report for the City of Vancouver (.pdf)

[Oakridge Centre website]

‘ST JOHN’ TO RELOCATE ITS VANCOUVER STORE

By
Retail Insider
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Canada’s only free-standing St. John store will vacate its current Hotel Vancouver space. It will be replaced by a two-level luxury retailer. We’re not sure yet where St. John will move, though rumour has it St. John could replace Griffins, a restaurant in the hotel.

For those unfamiliar, St. John is an upscale American womenswear label known for its knitwear and classic designs, popular among affluent women over 40. It is carried at several Canadian retailers, including selected Holt Renfrew stores. It will be carried expansively in new Canadian Nordstrom stores, as most American Nordstrom stores feature large dedicated St. John areas. 

The Hotel Vancouver’s retail component, owned by Ivanhoe Cambridge, will see significant changes in the coming months. We’ll periodically announce new tenants slated to open in its newly configured, two-level retail spaces.

Source: Van23H, Vancouver Skyscraper Forum

[Hotel Vancouver website]

[St. John website]

ANOTHER URBAN-SIZED GROCERY STORE OPENS IN CENTRAL MONTREAL

By
Retail Insider
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Another smaller-format grocery store has opened in Montreal. This one is called Les 5 saisons (with a small s) and it is located at the base of the luxury condominium building, 1250 Avenue Greene, in Westmont. It opened Thursday, August 15th. 

This Les 5 saisons is only about 10,000 square feet. In comparison, suburban grocery stores are typically several times this size. This store is at the base of a condominium tower where units start at 1510 square feet and go up to 5089 square feet. Units were priced in excess of $1 million. Although there are only about 20 residences at 1250 Avenue Greene, we can safely say that Les 5 saisons has an adjacent population of millionaires.

We recently discussed the increase in urban-sized grocery stores in Canadian cities. Our last article mentioned Marché Adonis, which opened at the base of another condominium tower a few blocks east of Les 5 saisons. Our August 13th article provides further reading on our opinion and analysis of urban grocery store retail. 

[1250 Avenue Greene website]

[Les 5 saisons website]

PLENTY TO OPEN FIRST STORE OUTSIDE OF BC, IN CALGARY

By
Retail Insider
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Photo: Plenty

*****UPDATE: Plenty’s Calgary store opened August 30th 2013. Grand opening: Friday September 13th 2013***

Vancouver based Plenty will open its first store outside of British Columbia next month. It will be located in Calgary’s Chinook Centre. The store will be about 2,400 square feet and will be located on the mall’s second level near the new Nordstrom store, currently under construction. 

For those unfamiliar, Plenty is a women’s and men’s multi-brand retailer. It was started in 1989 and carries private label merchandise as well as other designer labels. It has four stores in the Vancouver area and one in Victoria. Calgary will therefore be Plenty’s sixth store location. 

Thank you to our source Ryan, aka Mr. Fabulous, for providing us with this tip. You can find his blog here: http://immrfabulous.com and you can follow him on Twitter. 

[Chinook Centre website]

[Plenty website]

DSW DESIGNER SHOE WAREHOUSE COULD OPEN IN CANADA

By
Retail Insider
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Designer Shoe Warehouse (DSW)

Colliers Canada anticipates that Designer Shoe Warehouse (DSW) will open stores in Canada, according to a report released yesterday. If it opens in Canada, Designer Shoe Warehouse will create significant competition in Canada’s discount-priced footwear market. 

For those unfamiliar, Designer Shoe Warehouse is hugely popular in the United States, with almost 380 stores in that country. Its name says it all – it sells designer shoes at discounted prices. Stores average at around 22,000 square feet and each store carries about 24,000 pairs of shoes. The company has hundreds of millions in cash and no debt. We’ve posted a brief video below explaining the store’s concept.

If Designer Shoe Warehouse opens in Canada, it will face increasing competition from other new retailers that will also sell discounted footwear. Nordstrom Rack, Off 5th by Saks Fifth Avenue, Hudson’s Bay Outlet and hr2 by Holt Renfrew will open stores nation-wide within the next three years. Nordstrom Rack will open up to 20 Canadian locations, Off 5th by Saks will open up to 25 locations, and hr2 is looking to open between 15 and 20 locations. That’s a lot of discounted designer footwear (and we at Retail Insider couldn’t be happier).

Given the success of Designer Shoe Warehouse in the United States amid extensive competition, we think Designer Shoe Warehouse will be successful in Canada. And though it wasn’t mentioned in the Colliers report, we’ve heard that Designer Shoe Warehouse is already considering Canadian retail space. 


[Link to Colliers report]


[Designer Shoe Warehouse website]

TOM FORD BEAUTY TO OPEN FIRST CANADIAN CONCESSION AT HOLT RENFREW, OCTOBER 1ST

By
Craig Patterson
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Image: Tom Ford Beauty

Tom Ford Beauty is about to launch concessions in Canada. Its first concession opens October 1st at Holt Renfrew‘s flagship Toronto store. More locations will follow within Holt Renfrew stores. 

Tom Ford Beauty was launched in November 2011 and is carried at selected locations throughout the world. It is operated by Estée Lauder. 

[Holt Renfrew website]

[Tom Ford website]

BIRKS REBRANDS AS ‘MAISON BIRKS’ AND OPENS MONO-BRAND STORES AMID INCREASED COMPETITION

By
Retail Insider
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Maison Birks, Mapleview Shopping Centre, Burlington Ontario. Photo: Maison Birks



Iconic Canadian jeweller Birks has just changed its name to ‘Maison Birks’, and it’s opening new boutiques carrying only Birks-branded jewelry. These moves are partly a response to increased competition within Canada’s premium jewelry market. 


The first “mono-brand” Maison Birks opened last week at Mapleview Shopping Centre in Burlington Ontario, and a second opens this week at Montreal’s Quartier DIX30. More mono-brand Maison Birks stores will follow. 


The new stores are relatively small. The Mapleview Birks is 1,385 square feet, and the Quartier DIX30 Birks is about 1,500 square feet. As a comparison, Birks’ largest stores are in the 15-20,000 square foot range.

New Maison Birks logo

Maison Birks has a new logo (inspired by a diamond – see above) and will commence a new advertising campaign. In addition, Maison Birks has launched 16 new jewelry collections that include bridal pieces featuring Canadian diamonds. Canadian diamonds have become popular in recent years and are being marketed by competitors including De Beers and Tiffany & Co. 


Speaking of Canadian diamonds, Canada’s fine jewelry market is becoming even more competitive. Tiffany & Co. has expanded substantially throughout Canada, opening both free-standing stores as well as smaller boutiques within several Holt Renfrew locations. Cartier is expected to open new Canadian stores including as many as two in Vancouver – one replacing an existing franchised Cartier store on Howe Street, the other possibly opening in Oakridge Centre. Diamond powerhouse De Beers will also open a store this fall in Vancouver, its first in Canada.

Maison Birks, Mapleview Shopping Centre, Burlington Ontario. Photo: Maison Birks



Fine jewelry competition will also come from the likes of Holt Renfrew, Nordstrom and Saks Fifth Avenue. Holt Renfrew will be expanding its jewelry offerings in order to carry more fine jewelry, while both Nordstrom and Saks Fifth Avenue will include fine jewelry departments within their new Canadian stores. Given this increased competition, Maison Birks will hopefully have found the right time to modernize its brand. 


Thank you to Retail Insider Ryan of blog http://immrfabulous.com for notifying us of Birks’ rebranding.


[Maison Birks website]

KIEHL’S OPENS AT HUDSON’S BAY, TORONTO

By
Retail Insider
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Image: Kiehl's Since 1851

Kiehl’s has just opened a shop at Hudson’s Bay’s Toronto (Queen Street) flagship store.

It is the third Kiehl’s concession within a Bay store, following shops in Montreal and at Downtown Vancouver’s Hudson’s Bay (which opened October 2012).  

For those unfamiliar, Kiehl’s is a popular American cosmetics brand that specializes in skin, hair and body care products. Once difficult to find, the brand has almost over-saturated the market with both free-standing shops as well as department store concessions around the world.   

[Hudson’s Bay website]  

[Kiehl’s website]

SAKS FIFTH AVENUE TO OPEN IN OTTAWA?

By
Retail Insider
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Hudson's Bay, Rideau Street, Ottawa. Image: Google

Ottawa could get a Saks Fifth Avenue store as part of its announced Canadian store openings. Ottawa’s Saks would likely be located within Hudson’s Bay on Rideau Street. Hudson’s Bay owns the 335,000 square foot Ottawa store outright, meaning Saks would pay no rent to occupy space within. 

Ottawa could be a desirable city for Saks Fifth Avenue, given they city’s relatively high incomes and a population exceeding one million. Ottawa’s incomes are high compared to most Canadian cities, largely as a result of relatively high paying civil service jobs. Ottawa also lacks many upscale shops and designers available in other Canadian cities, meaning Saks could secure many of the designers it would want without having to compete with other retailers. 
If a full-sized Saks opens within the Rideau Street Hudson’s Bay, it would be in the 75,000 to 120,000 square foot range. Saks could also possibly occupy a floor or more of the existing store, or operate as one or more Saks “departments” within the existing store (we’re not a fan of this option, given the vastly differing perceptions of Hudson’s Bay and Saks as retailers). 

Opening Saks within the Rideau Street Hudson’s Bay could be a good move, as competitor Holt Renfrew is far removed at 240 Sparks Street in Downtown Ottawa. Holt’s Ottawa store is only about 36,000 square feet over two floors, and it lacks many of the interesting features and designers found in larger Holt Renfrew stores. Holt’s also lacks some labels Saks would desire, most noticeably Louis Vuitton. We think a Saks in Downtown Ottawa could see shops like Louis Vuitton, Prada, Gucci, and Ferragamo, among others.

Saks would join the recently announced 157,000 square foot Nordstrom store, to be located across the street at Rideau Centre. La Maison Simons will also open across the street from Hudson’s Bay/Saks, though Simons carries mostly moderately priced, private-label merchandise. Saks’ primary menswear competitor would be Rideau Centre’s Harry Rosen store, set to undergo a substantial renovation as part of the company’s growth and improvement strategy. 

Saks Fifth Avenue’s opening on Rideau Street would further create an exceptional shopping experience for the area. With anchors like Nordstrom, La Maison Simons and a renovated Hudson’s Bay (as is planned) in the area, Saks as a fourth anchor, would likely make gains at Holt Renfrew’s expense. It should be noted that despite planned renovations to Rideau Centre, Hudson’s Bay will remain connected to the mall by an existing pedestrian walkway. Given the increased popularity of Rideau Centre, Hudson’s Bay (and possibly Saks) should be breathing a huge sigh of relief. 

[Rideau Centre website]
[Hudson’s Bay website]
[Saks Fifth Avenue website]

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