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ONLY 6% OF CANADIANS WILL DO THEIR HOLIDAY SHOPPING ONLINE THIS YEAR, VS. 94% IN-STORE

Toronto Eaton Centre, Holiday 2012

By Adam Ramsay

In what may come as a surprise to many, a new survey of 4,013 people by Angus Reid Global has determined that less Canadians will complete the bulk of their holiday shopping online this year, when compared to our neighbours in the United States and friends across the pond in the UK. While more than 20% of Brits and 14% of Americans claim that they will do most, if not all of their purchasing in e-stores rather than bricks-and-mortar locations, only 6% of Canucks vow to do the same.

The poll doesn’t shed much light on why Canadians are more hesitant to shop online compared to our counterparts, or rather, if there is still simply a bigger desire in this country to cross items off of lists using the more traditional outlets of retail malls and shopping centres. There is also little evidence that Canadians will ‘showroom’ this year – browse in store and then purchase online – or vice versa. 

One interesting piece from the survey noted that almost one in three shoppers in this country only buy from physical stores. Mark Startup, who is the vice-president of the B.C. office with the Retail Council of Canada, says the growing perception that people are staying away from physical locations isn’t accurate. “There’s a lot of people predicting the end of bricks-and-mortar shopping,” he said. “But when you look at the stats, and you segment them by commodities and so forth, you begin to see a different picture.”

While Canadians may be among the nations that will do the least amount of online buying this Christmas, they will lead in the category of credit card use for the purchases they do make. In fact, Canadian respondents claimed that almost half (41%) of all their Christmas gifts will be paid for with plastic. That number is compared to only 30% in the US and less than 22% in in the UK.

Many of Canada’s largest shopping malls, retail centres and communities in general are continuing to see a rise in new square footage and commercial development which will continue into 2014, and will only help some of the biggest retailers in this nation to not only maintain, but also grow sales from their physical locations. How that will affect e-commerce growth in this nation remains very closely watched.


[Source: Angus Reid Global]

SEARS: PARKING AVAILABLE FOR LACK OF CUSTOMERS

Image: Sears Canada

We found this Sears commercial both amusing and a bit sad for the fact that it states “Sears always has parking.” Despite the subsequent shopping spree, the reality is that Sears stores are struggling and more Canadian store closures are likely.

This Bloomberg news article indicates that Sears Canada may choose to close even more store locations. Sources tell us that Sears Canada is likely to announce substantial store closings and layoffs in the New Year, including more suburban store locations than may be initially expected. Sources also indicate that Sears Canada could be sold to a large Canadian retailer in 2014, and we’ll update you more when we are better able to confirm this.

(Thank you ‘Skeezix’ of Urban Toronto for posting this article)

[Sears Canada website]

STARBUCKS CANADA EXPECTS THURSDAY TO BE ITS BUSIEST FOR GIFT CARD PURCHASES

Image: Starbucks

Starbucks Canada anticipates Thursday to be its busiest day of the year for gift card purchases. Last year, more than 2 million Starbucks cards were sold on a single day, representing nearly 1,500 Starbucks cards sold per minute.

The following is information from their press release:

TORONTO, Dec. 17, 2013 /CNW/ – With many Canadian schools and businesses preparing to break for the winter holidays this Friday, December 20th, Starbucks anticipates record purchases and activations of Starbucks® Cards on Thursday, December 19 – historically the single busiest day of the year for Starbucks gift card sales.  Last year, more than 2 million Starbucks® Cards were purchased in the U.S. and Canada on the Thursday before Christmas – representing nearly 1,500 cards purchased per minute in the U.S. and Canada

“With only eight days of holiday shopping left in the year, this is the time when so many of us are looking for great stocking stuffers and last-minute gifts our teachers, friends and colleagues will enjoy. Starbucks gift cards are the perfect option,” says Richard Burjaw, vice-president of Marketing, Starbucks Coffee Canada. “We are predicting that this Thursday and next Monday, Dec. 23, will be our busiest days for Cards sales, with Christmas Eve andChristmas Day being our busiest days for Starbucks Card eGifts.”

Since Starbucks® Card launched 12 years ago, $16 billion U. S. has been loaded on 450 million cards in 27 countries worldwide. Of that $16 billion U.S., more than $4 billion U.S. was loaded onto Starbucks® Cards worldwide in the past year.

“Available to purchase at more than 80,000 places in North America alone, a Starbucks® Card is a convenient, thoughtful and simple way to finish your shopping for everyone on your holiday list – from teachers to neighbors to the closest of friends and family,” said Cliff Burrows, group president Americas, EMEA & Teavana. “Customers can find Starbucks Cards in our retail stores, in their local grocery store, drugstore and even online. Our store partners, e-commerce teams and social gifting channels are ready for strong activity in these final days before Christmas.”

[Starbucks Canada website]

SOBEYS OPENING SMALL-FORMAT GROCERY STORES

Image: IGA Express

By Adam Ramsay

Stellarton, Nova Scotia based Sobeys has announced plans to open new, small-format grocery stores that will offer ready-to-eat meals as well as a “table ready in 20” section of quick meal solutions for shoppers on the go. The stores, called ‘IGA Express’, will also feature a Shell service station, and are described as “a cross between a supermarket, a convenience store and a fast food restaurant.”  The first four locations have already opened in Quebec, and can be found in the communities of Franklin, Lebanon, Trenton and Monroe.

Sobeys plans to open 60 IGA Express locations over the next five years (averaging about one per month). It will spend roughly $100 million to do so. Stores will be 3,500-4,000 square feet, only about 10% the size of a regular IGA Extra store. 

Sobeys says the new stores will be run by independent retailers, and are the result of ongoing worldwide research of the best grocery formats in existence. The chain added that it plans to roll out an even smaller version of their new express format, ‘IGA Mini’, in some existing full-size IGA locations.

It’s been a big 2013 for Canada’s second-largest food retailer. In addition to teaming up with Target to supply their new 124 stores with grocery items through the Sobeys distribution network, they’ve purchased the Safeway chain of stores in Western Canada, and have finalized the acquisition of the above-mentioned Shell gas stations in Quebec and Atlantic Canada. They’ve also sold off their Theatre business (through parent company Empire) to Cineplex and have recently opened the first of their new ‘Sobeys Extra’ format stores in Burlington, Ontario. Earlier this fall it was announced that long-time company executive Marc Poulin – who became the President of Sobeys in June 2012 – would take over as the head of parent company Empire with the retirement of Paul Sobey. 

RELATED: 

[Sobeys website]


[IGA Express website (including info used for this article)]

WHAT ARE CANADA’S TOP RETAIL STORIES FOR 2013?

We’re taking suggestions for Canada’s top retail stories of 2013. We’ll report them towards the end of the month. We expect that a few suggestions will be obvious, including such stories as Loblaws buying Shoppers Drug Mart and Sobeys buying Canada Safeway.

What news stories do you think we should include in our top 10 of 2013? Please feel free to submit your choices below, on our Facebook page, or to our Twitter feed. 

LULULEMON’S TOP SELLING STORE IS AT WEST EDMONTON MALL

Photo: Lululemon, West Edmonton Mall

By Melissa R.

Sources tell us that the 3,200 square foot Lululemon store at West Edmonton Mall has sales of approximately $26 million, making it the highest selling store in the company. It also makes it one of the most productive retail spaces in North America with sales of about $8,125 per square foot/year.

The store is on the mall’s second level, steps east of its skating rink called ‘The Ice Palace’.


Lululemon currently enjoys some of North America’s most productive retail space. Sales average US$1,936 per square foot/year, behind Tiffany & Co. at $3,017 a square foot per year and Apple Stores at $6,050 per square foot.
It has been an interesting year for Lululemon, which lost approximately $67 million this year due to the Luon sheer pant recall. CEO Christine Day subsequently announced she would be stepping down, founder Chip Wilson came under fire for comments blaming the sheerness of the pants on the size of women wearing them, and the company is still receiving complaints over the Second Chance pants that were made to replace the original Luon pants. Last week, Chip Wilson resigned from his position as Chairman. 

RELATED: 

[West Edmonton Mall website]
[Lululemon website]

DAVID YURMAN OPENS FIRST CANADIAN STORE

David Yurman, Yorkdale Shopping Centre. Photo: David Yurman

David Yurman‘s first Canadian store has opened at Toronto’s Yorkdale Shopping Centre. The 1,837 square foot store enjoys a corner location in close proximity to other upscale retailers including Salvator Ferragamo, Cartier, Tiffany & Co., Burberry, Mulberry and Tumi. 

For those unfamiliar, David Yurman is a NYC-based designer of fine jewellery and luxury timepieces. The company was founded in 1980. There are 26 David Yurman store locations in the United States as well as two stores in France and one in Hong Kong. Collections are also carried at fine jewellers and American department stores such as Saks Fifth Avenue, Neiman Marcus and Bloomingdale’s. David Yurman products can also be found at selected Holt Renfrew stores in Canada. 

David Yurman was first announced as a Yorkdale tenant in March 2013. A source tells us that David Yurman could open further Canadian store locations, including possible store locations in Toronto’s Yorkville area as well as in Vancouver. 

“We’re proud to make a home for ourselves in Toronto,” says David Yurman’s President and Chief Commercial Officer,Carol Pennelli. “The decision to expand into this market was driven by a loyal and avid following of Canadian clients that have been shopping with us for years in the US. We’re thrilled to be a part of this diverse and vibrant community, and look forward to introducing our brand to an entirely new customer base.”

RELATED: 

Toronto’s Yorkdale Mall to Open David Yurman, All Saints, Varvatos, Ferragamo and Other New Stores…

[Source: Press Release]

[Yorkdale Shopping Centre website]

[David Yurman website]

RENDERINGS OF HOLT RENFREW AT MISSISSAUGA’S SQUARE ONE

Rendering: Jason Goldstein LLP



Renderings have been released of the proposed 120,000 square foot Holt Renfrew store at Mississauga’s Square One Shopping Centre. The store will anchor an expansion of the south-west portion of the mall.


The Square One Holt Renfrew is being designed by New York City-based architect Jason Goldstein. Goldstein appears to have become Holt’s architect of choice for store design. His projects have included purpose-built Holt Renfrew stores in Vancouver (2007) and Calgary (2009), as well as Holt Renfrew’s Yorkdale store expansion.

Rendering: Jason Goldstein LLP
Rendering: Jason Goldstein LLP

Holt Renfrew announced its new Square One store in April. For further details of the store and the mall’s expansion, we direct you to our previous article.


Thank you to officedweller of Urban Toronto for posting the Jason Goldstein renderings. 


RELATED:



[Square One Shopping Centre website]


[Holt Renfrew website]


TOP 10 STORES YOU WANT TO SEE IN CANADA

Bloomingdale's, Chestnut Hill MA. Photo: Callison

Last month we asked readers what stores they’d like to see in Canada, and responses flooded in. Here are your top 10 choices:

1) Uniqlo

2) DSW Designer Shoe Warehouse

3) Muji

4) Bloomingdale’s

5) Trader Joe’s

6) Kohl’s

7) Macy’s

8) Marks & Spencer

9) Madewell

 (by J. Crew)

10) Barney’s New York

Many of these choices are of no surprise to us. Our articles about Uniqlo consistently have the highest readership on Retail Insider and given Uniqlo’s popularity, it’s very surprising it hasn’t already opened in Canada. We’ve been told that Uniqlo could still be introduced to Canada through the Hudson’s Bay Company, though we’re not aware of the progress of any current negotiations.

DSW Designer Shoe Warehouse was also an expected choice. The company carries thousands of pairs of shoes. We’ve got good news: DSW is already looking to expand into Canada To make things even better, The Shoe Company is reportedly looking to open a chain of similar shoe stores Bloomingdale’s could open in Canada and for a while it was in talks with The Hudson’s Bay Company to open in-store concessions. The deal unfortunately fell through, though Hudson’s Bay instead bought Saks Fifth Avenue, which it will bring to Canada within the next couple of years.

Specialty grocery store Trader Joe’s is definitely a top pick of ours, and we think reasonably priced organic food would do well in Canada. We’re not yet aware any intentions for the company to open in Canada. Interestingly, an attempt by a Vancouver-based entrepreneur to sell Trader Joe’s products in Canada was met with litigation Kohl’s is looking at the Canadian market, though it may be deterred by recent problems encountered by Target’s Canadian expansion. We’ve been told that Kohl’s could be a possible purchaser of Sears Canada, though we’ve also been informed that Sears Canada could be purchased by a large Canadian retailer (and we don’t mean Hudson’s Bay).

Macy’s was a surprising choice in our opinion, given how similar it is to our own Hudson’s Bay. Having visited both stores regularly, we’re seeing Hudson’s Bay actually surpassing Macy’s as a retailer in many respects, and we’ll do an article specifically discussing this.

We’ll be contacting these retailers directly, letting them know that you want them in Canada. Are there any other stores you’d like to see open in Canada? We’ll update this article in the New Year. Please leave your comments below or follow this link to our Facebook page. Also, you can leave comments via our Twitter

SIMONS POSTPONES RIDEAU CENTRE STORE OPENING BY A YEAR

Rendering of the Rideau Centre Simons. Rendering: Rideau Centre/Cadillac Fairview

The opening date of La Maison Simons‘ store in Ottawa’s Rideau Centre has been delayed. It is now scheduled to open in August 2016, where it had originally been scheduled to open in the spring of 2015. It will therefore be the second Simons store to open in the Ottawa area, about one year after the recently announced Simons at Les Promenades Gatineau which will open in the spring of 2015.

The Rideau Centre Simons store will be about 105,000 square feet and will feature a reconstructed facade of the historic Ogilvy building formerly occupying the store’s site. Rideau Centre’s mall expansion will include 230,000 square feet of new retail space over four levels, as well as a modernization of the mall’s common areas. A 35,000 square foot upscale food court with 16 eating establishments seating 850 (complete with ceramic dishes, glassware and metal cutlery) will be available to shoppers as well as a new three-level underground parking garage. Joining Rideau Centre will be a 157,000 square foot Nordstrom store, which is still scheduled to open in the spring of 2015.

Rendering of the interior of Rideau Centre Simons. Rendering: Rideau Centre/Cadillac Fairview

We were alerted to the delay in the Rideau Centre Simons’ opening after a press release was issued claiming that Mississauga’s Square One Shopping Centre would be the first Ontario location for Simons. That press release appears to have been correct.

RELATED:



[La Maison Simons website]