Former Nordstrom at CF Pacific Centre in Vancouver BC (Image: Lee Rivett)
Seattle-based Nordstrom faces a potential shift in ownership as family members propose a $3.76 billion privatization deal.
The Nordstrom family, who currently own 33.4% of the company’s outstanding common stock, has offered to buy out shareholders at $23 per share. The proposal represents a premium of nearly 35% over the stock price since rumours of the transaction first emerged in March.
Backing the Nordstrom family in the venture is El Puerto de Liverpool, a prominent Mexican retail group. With over 300 stores in Mexico and a robust credit card business boasting 7.2 million active accounts, Liverpool already holds a 9.6% stake in Nordstrom stock.
Founded in 1901 as a shoe store, Nordstrom has evolved into a major player in the upscale retail sector in the US. Fourth-generation family members Erik and Peter Nordstrom currently lead the company as CEO and president, respectively.
In their letter to the board of directors, the family cited the passing of their father, Bruce Nordstrom, as one of the driving forces behind this move. Bruce Nordstrom, who served as chairman, died in May at the age of 90.
The proposed deal includes commitments for $250 million in new bank financing, demonstrating the group’s confidence in Nordstrom’s future prospects.
The move follows financial struggles that led to Nordstorm exiting its Canadian operations last year. That included an online business as well as six full-priced stores and seven Nordstrom Rack locations. Spaces are now being back-filled, including announcements that La Maison Simons would occupy parts of the CF Toronto Eaton Centre and Yorkdale Nordstrom boxes in Toronto.
On the Run location in Florida. Photo: Parkland Corporation
Canadian fuel retailer Parkland Corp. has announced plans to sell its Florida-based operations. This move is part of the company’s strategy to divest non-core assets and improve shareholder returns.
The Calgary-headquartered firm reported significant interest in its Florida assets on Tuesday. These include about 100 retail locations, nine cardlock facilities, and four bulk storage plants and warehouses across the state.
Parkland says it expects to complete the sale within the next 12 to 18 months. This divestiture aligns with the company’s ongoing efforts to streamline its portfolio and focus on high-growth areas.
The fuel retailer operates approximately 4,000 fuel and convenience retail stores across Canada, the United States, and the Caribbean. It also runs an oil refinery in Burnaby, British Columbia.
To date, Parkland’s divestiture program has generated about $200 million in proceeds. With the addition of the Florida business, the company now projects its divestiture program to exceed $500 million by the end of 2025.
“Parkland continuously reviews all parts of its portfolio,” the company stated in a news release. “By divesting non-core assets, the company continues to focus on areas with the highest growth potential and strongest synergies with its core business.”
The move comes amid calls for more action to improve Parkland’s performance. U.S.-based activist investor Engine Capital LP and Parkland’s largest shareholder, Simpson Oil Ltd., have urged the company to conduct a review of strategic alternatives, including a potential sale.
However, Parkland maintains that such a review is unnecessary and does not align with the best interests of the majority of its shareholders. The company faces additional challenges, including a lawsuit filed by Simpson Oil in August.
The Cayman Islands-based Simpson Oil, which owns about 20% of Parkland’s shares, seeks to overturn voting restrictions that are part of a 2019 board governance agreement between the two companies.
This week US-based multinational membership-only wholesale retailer Costco implemented its first membership fee increase since 2017 for Canadian and U.S. customers. This move comes alongside new measures to prevent non-members from accessing its warehouses.
The company revealed in July that annual membership fees would rise by $5 to $65 for three of its plans: “Gold Star,” “Business,” and “Business Add-On.” These changes took effect for new members signing up on or after September 1 and for renewals occurring after that date.
Costco’s premium “Executive Membership” also saw a price hike, increasing by $10 to $130 annually. However, Executive members will soon benefit from an increased annual reward cap of $1,250, up from the current $1,000 limit.
The fee increase is expected to impact approximately 52 million memberships, with Executive members accounting for slightly more than half of this figure. Costco has long relied on membership fees as a significant profit generator, using this revenue to offset expenses and maintain competitive pricing.
In the previous fiscal year, Costco’s membership fee revenue reached US$4.6 billion, marking an 8% increase from 2022. This substantial income stream plays a crucial role in the company’s business model, allowing it to offer competitive prices on a wide range of products.
Alongside the fee increases, Costco is implementing stricter access controls to curb membership sharing. The company plans to introduce membership scanning devices at warehouse entrances, requiring all members to scan their physical or digital membership cards before entry.
“Over the coming months, membership scanning devices will be used at the entrance door of your local warehouse,” Costco stated. This new policy aims to ensure that only valid members and their guests can access Costco’s facilities.
For members whose cards lack a photo, Costco advises bringing a valid photo ID. The company says it encourages these members to visit the membership counter to have their photo taken, streamlining future visits.
Additionally, Costco now requires all guests to be accompanied by a valid cardholder when entering its stores. This measure is designed to prevent non-members from using membership cards that don’t belong to them.
As of September 2024, Costco operates a vast network of 884 warehouses globally. This includes 611 locations in the United States and Puerto Rico, and 108 in Canada — representing a higher penetration of stores per capita. The company’s international presence spans several countries, including:
40 warehouses in Mexico
33 in Japan
29 in the United Kingdom
18 in Korea
15 in Australia
14 in Taiwan
7 in China
4 in Spain
2 in France
1 each in Iceland, New Zealand, and Sweden
Costco’s e-commerce operations complement its physical presence, with online platforms serving customers in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, and Australia.
Sales of alcohol will be launched in Ontario grocery stores on October 31 this year.
Winder says the move will be a disruptor offering consumers convenience but with a limited assortment.
The question is going to be what the price of alcohol will be.
For grocery stores, the margins for alcohol are not high and as of January bigger grocery stores will have to add a return element to their locations.
Winder says the consumer response is mixed right now as other provinces like Quebec have been doing it for a long time. Some negative responses include what it means for residential neighbourhoods as well as social concerns over drinking.
“Today is a milestone for consumers and convenience stores in the province of Ontario. It marks the end of antiquated, prohibition-era rules that have precluded the province’s 7,500 convenience stores from responsibly retailing beverage alcohol.
“Allowing beer, wine, and coolers to be sold in our stores will create new revenue streams for our local businesses and meet customer demands in an increasingly competitive marketplace. It will also give thousands of Ontario retailers and producers opportunities to secure and grow their businesses. According to economic research prepared for CICC by Cascadia Partners, expansion will result in an additional 9,300 new jobs in the province. It is a true win-win-win: for convenience stores, for local producers, and for consumers.
“We commend Premier Doug Ford and Minister Peter Bethlenfalvy for working with CICC closely and delivering on their commitment to increase both convenience and choice to Ontarians.
“Today is just the start. There are still issues that need to be addressed to ensure the retail framework works for everyone. As the voice of convenience stores in Ontario, we will continue to work with the government to provide our industry expertise moving forward to address our concerns around pricing and distribution.”
The Convenience Industry Council of Canada (CICC) is the voice of Ontario’s convenience industry and represents 7,500 retailers in Ontario that generate $16.8 billion in annual sales, employ 65,700 Ontarians and collect $4.3 billion annually in taxes for the provincial government.
Kits at Yew and Cornwall in Vancouver, BC (Image: Kits.ca)
Vertically integrated Vancouver-based KITS Eyecare Ltd. has announced an upward revision to its Q3 2024 revenue guidance. The Toronto Stock Exchange-listed company (TSX: KITS) now expects to surpass its previously projected range of $39 million to $41 million.
The revised outlook anticipates a year-over-year growth rate exceeding 32%. The adjustment comes on the heels of a record-breaking week of ordered sales, totalling approximately $3.5 million for the week ending August 31, 2024. Notably, KITS achieved record sales in Canada during this period, significantly boosting confidence in the company’s Q3 performance.
Initially, KITS had provided a Q3 2024 revenue guidance range of $39 million to $41 million in its Q2 earnings release. However, as the quarter draws to a close, stronger-than-expected demand and improved performance have prompted management to revise the outlook upwards.
While revenue projections have been adjusted, the company maintains its outlook for Adjusted EBITDA as a percentage of revenue between 3% and 5%. The stability in profitability expectations alongside increased revenue forecasts suggests effective cost management and operational efficiency.
KITS’ upward revision aligns with its strategy to deliver consistent growth and operational excellence.
KITS operates as a digital-first eyecare brand, offering customers a vast selection of contact lenses and eyeglasses. The company’s product range includes exclusive KITS-designed items and leverages a robust suite of online vision tools. By employing an efficient digital platform backed by industry-leading manufacturing capabilities, KITS can offer competitive prices and personalized products to Canadian consumers.
The company’s focus on innovation is evident in its pursuit of cutting-edge technologies. KITS continually develops and implements online eyewear fitting tools and virtual try-on features for glasses.
KITS’ primary market is currently Canada, and the company’s growth strategy and digital-first approach positions it for potential expansion. KITS’ performance in Canada may serve as a benchmark for similar ventures in other markets.
Hillcrest Mall in Richmond Hill, Ontario. Photo: Oxford Properties
Hillcrest Mall has been the heart of Richmond Hill’s flourishing community for the past 50 years.
Recently the shopping centre celebrated that milestone as it has developed over the years into an important community gathering destination for local residents.
Ryan Da Silva
“In 1974, we opened as the largest mall north of metro Toronto and for the past 50 years, Hillcrest Mall has stood as a cornerstone of Richmond Hill, evolving and growing alongside the city. Since then, we’ve seen tremendous growth including an HBC renovation and redevelopments of our South and North Wings, bringing popular brands like H&M, Indigo and Sporting Life closer to our community,” said Ryan Da Silva, Hillcrest Mall’s Director and General Manager.
Hillcrest is a regional shopping centre which features a mix of 120+ fashion, lifestyle and food retailers. Strategically located in the heart of Richmond Hill, the shopping centre provides an unparalleled opportunity to capitalize on the region’s lucrative economy and growing affluent
population, says the mall which is about 585,000 square feet.
Sought-after brands including Sporting Life, Indigo, HomeSense/Marshalls, West Coast Kids, H&M, Hudson’s Bay, lululemon, Aritzia and Sephora continue to highlight Hillcrest as a shopping destination in York Region.
Photo courtesy of Hillcrest Mall
Hudson’s Bay department store at Hillcrest Mall in Richmond Hill, Ontario. Photo: Oxford Properties
Hillcrest is co-owned by Oxford Properties and Montez Corp and managed by Oxford Properties Group.
Oxford Properties Group is a leading global real estate investor, asset manager and business builder. It builds, buys, and grows defined real estate operating business with world-class management teams. Established in 1960, Oxford and its portfolio companies manage approximately C$82 billion of assets across four continents on behalf of their investment partners.
Oxford’s owned portfolio encompasses office, logistics, retail, multifamily residential, life sciences, hotels and credit in global gateway cities and high-growth hubs. Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario’s municipal employees.
Opening day. Photo courtesy of Hillcrest Mall
In August, Hillcrest Mall celebrated its 50th anniversary with a number of activities, a back-to-school fundraising initiative and made a $5,000 contribution to Sandgate Women’s Shelter in York Region.
Hillcrest Mall was decked out with gallery timeline walls, a large gold 50 installation and a Rose Photo Wall paying homage to Richmond Hill’s reputation as the rose capital of Canada. From August 1 to 25, guests were invited to donate backpacks filled with supplies, clothing and toiletries near Guest Experience Desk to help the families of Sandgate Women’s Shelter.
Da Silva said Hillcrest was the largest mall north of metro Toronto and “for the past 50 years Hillcrest has stood as a cornerstone of Richmond Hill.”
“It continues to evolve and expand in a growing city,” he said, adding that mall occupancy is about 97 per cent. “The mall is bustling. Quite busy.”
“We have a lot in the works,” he said. “We have a few more but nothing we can name at this time . . . Our most recent expansion was our north expansion which included Marshalls, Mark’s, Indigo and Old Navy.
“We continue to invest at Hillcrest Mall and we’re currently looking at adding residential. That would definitely complement our shopping centre and the density surrounding the shopping centre which would work hand in hand in terms of shopping and a live, work, play element.
“The mall continues to evolve based on market conditions and we look to add various elements. Food and beverage. We continue to look at it which drives traffic to the shopping centre. We have a lot of great retailers including Sporting Life, SportChek, Marshalls, HomeSense. All the staples that you would need and find in a shopping centre.
“We continue to work with the city of Richmond Hill. We’re still making progress on obtaining municipal approvals and that would be for a proposed 588-unit purpose built rental. Two towers – 26 and 30 storey towers.”
He said the former TD location along Yonge Street will have two new restaurants in the future – 7,000 square feet added to the mall.
Image illustrating the tension between Canada imposing tariffs on Chinese electric vehicles and China's retaliation on Canadian canola.
Canada’s decision to impose tariffs on Chinese electric vehicles (EVs) last week was a predictable move. Ottawa fully anticipated retaliation, which came swiftly as China announced an anti-dumping investigation into Canadian canola exports. While there is no evidence of actual dumping, the facts are largely irrelevant in this case. China will proceed with sanctions regardless of the explanations provided by the Canola Council or Canadian diplomatic channels. Much like in 2019, when Canada faced a similar impasse, we could see borders close again for Canadian agricultural exports.
In March 2019, after the arrest of Meng Wanzhou in the Huawei incident, China abruptly halted Canadian canola shipments, citing pest contamination as the official reason. The Canadian canola industry suffered losses estimated between $1.54 billion and $2.35 billion in sales, with price declines persisting until August 2020 due to the suspended export licenses. Pork exports were also affected, but canola has always been a primary target for China in these diplomatic standoffs.
Canola holds a special place in Canada’s agricultural identity, and targeting it first is a calculated move by China. The crop was developed in Canada, and its very name—derived from “Canada” and “ola” (referring to oil low in acid)—underscores its deep national significance. As the world’s largest exporter of canola, Canada plays a pivotal role in both global food markets and biofuel production. Conversely, China is the largest oilseed importer, with half of Canada’s canola exports destined for its market. By hitting canola, China sends a clear message: it can disrupt a key Canadian sector anytime political tensions escalate.
Farmers in Alberta, Saskatchewan, and Manitoba—where the vast majority of Canada’s 43,000 canola producers are located—are already feeling the impact. Yesterday, canola prices dropped nearly 5%, and further declines could mirror the prolonged downturn of 2019. The symbolism of canola makes it a prime target. Whenever Canada moves against China’s interests, Canadian agricultural commodities such as canola are the first to be leveraged.
Western Canadian farmers now face significant uncertainty, largely a result of Ottawa’s aggressive push to bolster the battery and EV sectors. The federal government has committed nearly $50 billion toward building battery factories, a bold gamble that led to the imposition of tariffs on Chinese EVs. The official rationale, it seems, is to protect domestic manufacturers from an influx of cheaper green vehicles from China, even if that means limiting affordable options for Canadian consumers and straining relations with China. This approach prioritizes the development of Canadian-made EVs over the potential benefits of allowing lower-cost imports to help reduce carbon emissions.
This industrial strategy follows a familiar pattern: when a government decides that a product must be produced domestically, at all costs, it often results in less competition, higher prices, and questionable product quality. The dairy industry offers a prime example. Ottawa has funneled billions into the sector, supported by highly restrictive trade barriers. While this policy has propped up dairy farmers, it has done so at the expense of other agricultural sectors—wheat, canola, beef, and pork—all of which could arguably benefit from the same level of government support.
In the end, the federal government will likely compensate canola farmers for their losses, as it has done before. Farmers are resilient, but Canada’s diplomatic standing, particularly with China, continues to erode.
For those old enough to remember, Pierre Trudeau once idealized China, yet today his son Justin Trudeau faces a more hostile Beijing. History, it seems, has a twisted sense of irony.
New Michael Hill 'New Era' store design concept. Renderings provided by Michael Hill International
Jewellery retailer Michael Hill has announced a revenue increase for the past fiscal year. The company’s success is notable in its Canadian and Australian markets.
The jeweller saw its overall revenue climb by 4.2 percent, reaching A$644.9 million – the Australian retailer reports in its local currency. The growth was primarily driven by strong performances in Canada and Australia.
In Canada, Michael Hill’s retail segment experienced a modest but positive growth. Revenue in the market increased by 0.6 percent, amounting to C$157.1 million. The company currently operates 85 stores across Canada.
The Australian market saw a substantial 10.3 percent increase in revenue, totaling A$359.1 million. With 171 stores in Australia, it remains the company’s largest market.
The New Zealand retail segment experienced a decline of 11.8 percent, with revenue falling to NZ$114.8 million. Michael Hill has 44 stores in New Zealand.
Daniel Bracken, Michael Hill’s Managing Director and CEO, highlighted several strategic initiatives undertaken during the year. He noted that the retailer has refreshed the Michael Hill brand to support its premium market positioning. He also noted the expansion and integration of the newly acquired Bevilles brand, which caters to the value segment of the fine jewellery market.
Sustainability has also been a key focus for Michael Hill. The company launched its Re:new Ecosystem, which includes gold recycling and jewellery repair services. Additionally, the Michael Hill Foundation was established, further demonstrating the company’s commitment to corporate social responsibility.
The company has reported encouraging early results for the current fiscal year. In the first eight weeks, group sales increased by 3.2 percent compared to the same period last year. Australia and Canada continued their upward trajectory, with sales growth of 5 percent and 4 percent respectively. However, New Zealand saw a further decline of 6.2 percent.
Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.
Nobu Togawa and Ramen Arashi banner (CNW Group/Arashi Dining Group Ltd.)
The fifth location of the renowned Ramen Arashi is set to open its doors in the bustling Kensington area of Calgary on September 24.
The brand said this latest addition will bring the authentic taste of Japanese ramen to the heart of Calgary, continuing the tradition started by founders Kentaro Seki and Yuji Yokomori in 2017.
Photo courtesy of Ramen Arashi
Photo courtesy of Ramen Arashi
“Ramen Arashi isn’t just about food; it’s about creating a community hub where people from all walks of life can come together to enjoy a hot bowl of ramen,” said Nobu Togawa, a Tokyo-born Ramen Master, sports enthusiast, and now General Manager and Head Chef at the new location.
“After winning the hearts of diners in Banff, Canmore, Victoria, and most recently Kelowna, Ramen Arashi looks to replicate its culinary success and endearing atmosphere in the vibrant community of Kensington. Local residents and visitors will soon revel in a dining experience that is more than just about ramen; it’s about community and culture,” said the brand.
The company said the expansion reinforces Ramen Arashi’s mission to offer the genuine essence of ramen as a cultural emblem of Japan, honed with every bowl served.
Photo courtesy of Ramen Arashi
“With its inception in Banff, the brand has established itself as a culinary beacon of authentic Japanese cuisine. Each location has garnered a strong following, not only for the quality of the food but also for the restaurant’s commitment to embodying Japanese hospitality and authentic ramen culture,” it said.
“The choice of location was harmonious with Ramen Arashi’s ethos. The Kensington district, known for its eclectic and adventurous spirit, is the perfect backdrop for a brand that prides itself on being an integral part of the community it serves. The opening is a significant step for Ramen Arashi, aligning with its continued popularity and reputation for bringing a piece of Japan to the Canadian culinary landscape.
