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.
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 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.
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.
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.
A source tells us that Vancouver’s Pacific Centre is struggling to secure tenants for its new retail space, to be located directly below Nordstrom. The 48,000 square feet of new retail will be accessed from the mall as well as by an escalator descending from Robson Street.
Our source says that Pacific Centre’s landlord, Cadillac Fairview, only wants “individual brands” as tenants, rather than national retailers. Some brands have shown interest but have yet to sign leases. We’re waiting to hear who will sign, and what stores will follow.
This may eventually prove to be a good idea on the part of the landlord. Securing individual brands, rather than retailers available elsewhere, may help differentiate Pacific Centre’s new retail. It appears, however, that retailers may be holding back on signing leases for the new spaces. This may partly be due to the retail being located in the basement of the mall, even though it’s located below Nordstrom with Robson Street access. There might also be a “wait and see” situation emerging, where retailers are waiting to see who bites first for the basement retail space.
Proposed lease plan (space below Nordstrom). Source: Cadillac Fairview
We think being below Vancouver’s flagship Nordstrom store is a good thing, especially with escalator access to Robson Street. We’ve heard the names of a few brands interested including AllSaints, and we’ll update you on who’s moving downstairs.
***** The following article is guest written by Bimal Parmar, VP of Marketing at Celayix Workforce Management Solutions. He manages its global marketing strategy and execution, and is a brilliant source of knowledge . We enjoyed the following and hope you do as well *****
A good number of retail bosses who claim their customers are at the heart of their strategy, often neglect the ‘face’ of their business- their ground staff.
And when the top management misses the point, things can be in limbo forever. A recent report by Gallup says that only 30% of the workforce in the US is fully engaged with their work, the rest is –actively disengaged or not engaged.
Whether it’s a result of the warped economics of insufficient remuneration or no/low benefits, most employees seem to reciprocate in a similar vein. Here are some quick tips on how to engage your retail staff-
Revamp: ‘Smart’ is the new ‘Efficient’ in Leadership We all know what efficient leadership is. It’s about inspiring confidence, trusting and supporting your people, and the likes. It works, but it’s a bit passé. Try focussing on the following instead-
a) Listen to your star performers– They’ve earned their value and credibility, so discuss your plans with them. But, do what ultimately suits you. If that sounds like playing favorites, so be it. You can get by with paying less head to your cantankerous lot (don’t worry they’ll stick around). More often than not, the complaining lot isn’t the most capable one.
b) Make everyone accountable- Employees should be made architects of their own situation, and not victims. Let them know they’re equally accountable. For this, clearly define their chores. Employees who know their roles have a stronger chance of outdoing their duties. But, this sort of an arrangement works only if they feel you’re concerned about their growth.
c) Aim for a 100% Collaborative Environment – Despite their best efforts, organizations aren’t democracies. Employee votes do count in decision making, but not necessarily. Even employees know it. So try and aim for an environment where your employees collaborate, instead of imposing verdicts on them. In other words, keep them with you. A low-friction atmosphere will mean more productivity.
d) You can’t create a ‘Utopia’ –
Do anything, but you can’t get away from the differences, disagreements, conflicts or arguments. Some people will always feel disgruntled. It’s a human trait, it doesn’t originate in workplaces. Make sure, at least delegating responsibilities become smooth. Schedule them properly in the right shifts so no last minute hiccups don’t occur. Employing a retail scheduling software can be a good option .
Besides, hurdles aren’t bad all the time, adverse circumstances teach you the most. Try your best and don’t be dissuaded by troubles on your work floor.
Foster a ‘Passion’ for Serving well Retail Industry, especially the service industry is fuelled by passion. Starbucks is known for its excellent customer service, that focuses on offering an experience. And this experience is created by its employees on the floor.
It’s always better to have a lively staff. Even Sir Richard Branson feels customer service is everything . In the retail sector, your employees make all the difference. They are the relationship builders. Being a retailer you must tell your staff what’s exactly expected of them in terms of behavior and values, besides work. They are the voice and face customers see and hear, their enthusiasm has to be contagious.
You staffers are your best brand ambassadors. They carry your firm’s image wherever they go- whether they’re inside your eatery, out on a delivery or ringing a doorbell. If they smile and deliver the order. Your company looks like an amiable place.
Something for the-‘Top Management’ One month of bad sales and everyone at the board down to the middle level makes a scapegoat out of the ground staff. Unfortunately, the people who perform these ground duties are very marginally different from one another throughout the world, in their motivation and aspirations. They only carry out the orders.
But, what really differentiates lucky and unlucky businesses is the capability of the people above them. Educated, well-motivated managers who spend considerable time in the growth and development of their teams should be brought in. Best retail employers are all about the progress and well being of their employees.
The businesses who complain generally make half baked efforts that are around for donkey’s years. The management must realize most of their ground staff workers have a house to run, bills to pay, bring up children. If they don’t find enough encouragement at work, they end up becoming slaves to their paychecks.
The result- your business would do OKAY but not exceed expectations.
Wrapping Up An enthusiastic employee is the personification of your Brand Promise. The best way is to confront the obstacles and confide in them. Tell them you’re in this together. Pepper it with positivity and enthusiasm.
Firms like Costco are thriving examples of employee friendly companies who remained unflinching when many solid brands fell apart.
Don’t let your employees feel lost. It has cost companies before and will cost them again. Walmart is a living disaster. Just get involved, get your employees involved and you’d be surprised at the talent you’ve unlocked.
About the Author As VP of Marketing, Bimal Parmar manages the global marketing strategy and execution at Celayix. With over 20 years industry experience, Bimal is responsible for making sure the world learns about the benefits of Celayix’s solutions that include: advanced employee scheduling, time and attendance, employee communication as well as integration modules for payroll and billing. Before joining Celayix, Bimal was Vice President of Marketing at Faronics, a leading provider of IT solutions for the Education vertical where he helped grow revenue over 50% and launched exciting new solutions. Prior to that Bimal held senior marketing and product roles at technology companies such as Business Objects and McAfee Security where he gained significant international experience working with global companies such as Microsoft, Dell, Sony, HP, Orange, Telefonica and Ricoh.
CCP’s purchase of Neiman Marcus makes for a substantial number of international department stores owned either wholly or partly by Canadian companies. Well, sort of. Selfridges Group, owned by Canada’s Weston Family, owns Holt Renfrew and Ogilvy as well as Selfridges in England, Brown Thomas in Ireland and de Bejenkorf in the Netherlands. The Hudson’s Bay Company (Canadian, but now mostly American owned) recently bought Saks Fifth Avenue, and it already owns American retailer Lord & Taylor.
Dallas-based Neiman Marcus has over 40 full-line American stores, including several productive flagships (some over 200,000 square feet) and New York City’s iconic Bergdorf Goodman store.
If Neimans took Holt’s stores, we think it would only want the following six Holt Renfrew locations: Vancouver, Calgary, Toronto (Bloor Street, Yorkdale Shopping Centre and Square One in Mississauga), and Montreal. Holt Renfrew’s Edmonton, Ottawa and Quebec City stores are too small for Neiman Marcus, and it would be too expensive and complicated to expand these to a Neiman Marcus-sized 100,000-125,000+ square feet.
HUDSON'S BAY'S SAKS PURCHASE IS FINALIZED: 40 DAY "GO-SHOP" PERIOD EXPIRES
The 40-day “go-shop” period is over, and The Hudson’s Bay Company (HBC) now owns Saks Fifth Avenue. After its purchase by HBC, Saks had 40 days to consider other takeover options.
HBC can now move forward with expanding Saks into Canada, as well as determining how it will maintain expanded operations. HBC paid a lot of money for Saks at a time when North American luxury spending appears to be on a slight downturn. Some experts we’ve spoken to say they’re concerned about HBC’s future, as it has assumed Saks’ substantial debts. Hopefully a real estate investment trust spinoff will allow for business to succeed, including much needed capital improvements to Canada’s Hudson’s Bay stores.
Despite the prestigious Saks Fifth Avenue name, we don’t consider Saks to be America’s top luxury department store. We’d give that title to Neiman Marcus. Neiman’s consistently earns more money per square foot than Saks, and has closed far fewer stores over the years. Saks has opened, then closed, a substantial number of stores since the 1990’s. Neiman Marcus has also secured more luxury concessions than Saks, including boutiques for Giorgio Armani Black Label, Van Cleef & Arpels, and Tom Ford‘s men’s and women’s ready-to-wear.
We can now expect more concrete answers as to where Saks Fifth Avenue’s first Canadian locations will be. We’ll be watching closely and we’ll report any findings immediately, so keep reading.
Target Canada has just announced when and where its next 23 stores will open. 14 stores open September 17th, and 9 open October 18th. Included are the first Quebec and Nova Scotia Target locations. Here’s the list:
Locations opening to the public on Sept. 17 include:Quebec:
Brossard – Place Portobello
Laval – Méga Centre Autoroute 13
Lévis – Galeries Chagnon
Montreal – Place Vertu
Saint-Georges – Carrefour Saint-Georges
Saint-Jérôme – Carrefour du Nord
Trois-Rivières – Les Rivières Shopping Centre
Ontario:
Kanata – Hazeldean Mall
Orleans – Place D’Orleans
Ottawa – Billings Bridge Plaza
Smith Falls – County Fair Mall
Nova Scotia:
Bedford – Bedford Place
Dartmouth – Mic Mac Mall
Halifax – Bayers Lake Power Centre
Locations opening to the public on Oct. 18 include:
Quebec:
Anjou – Galeries d’Anjou
Boisbriand – Faubourg Boisbriand
Gatineau – Les Galeries Gatineau
Joliette – Les Galeries Joliette
Montreal – Place Versailles Shopping Centre
Quebec City – Place Fleur de Lys
Saint-Bruno-de-Montarville – Les Promenades Saint-Bruno
Nordstrom has spent significant sums over the years on advertising, including strategically placed ads in such publications as Vogue magazine. In the mid-to-late 1990’s, Nordstrom routinely placed full-page ads on the second page of Vogue to advertise luxury fashions and accessories, mainly from its women’s Collector’s department. Designers such as Valentino, Oscar de la Renta and Versace were prominently featured, helping lend credibility to Nordstrom’s increased concentration on top-priced women’s ready-to-wear and accessories. Nordstrom expanded its advertising into other national publications and hired Cuban-born artist Ruben Toledo to create fashion drawings of featured clothing for Nordstrom ads.
Nordstrom has hired advertising agency DDB to handle this fall’s advertising campaign, including updates to Nordstrom’s Canadian website. When released, we’ll follow up this article with DDB’s first campaign for Nordstrom Canada.
Quebec City-based La Maison Simons will likely announce its first Vancouver-area store in the coming weeks. If the deal has been signed (the mall’s landlord won’t yet confirm), it would be located in the suburbs at a relatively upscale shopping centre.
We were holding off on breaking this news but The Globe & Mail has just reported that Peter Simons may make a Vancouver store announcement in the coming weeks. We’ll won’t mention which Vancouver-area mall may feature Simons, though those familiar with the region can probably narrow their guesses to one of three or four malls.
Simons is also looking to open one or more Calgary stores – one suburban and one possibly in the downtown core. Winnipeg is a possibility for Simons as well – Polo Park is our best guess but it could also go into a newly-built retail complex.
Currently, the only Simons store not in Quebec is at West Edmonton Mall. It’s the largest in the chain at 118,000 square feet, and we’ve been told that its sales are stellar.
Simons’ combination of inexpensive, fashionable, private-label clothing and more expensive designer brands seems to be working. We think that as many as 10 new Simons stores will be open in Canada within the next five years.
