Simon's Impact and Global Retail Trends in Canadian Shopping Landscape [Video Interview]
Craig and Liza Amlani, Principal and Founder of Retail Strategy Group, discuss the arrival of La Maison Simons in downtown Toronto and its potential impact on the retail landscape. They explore how the new stores at Yonge and Dundas will influence shopping habits, tourism, and local retail dynamics. Simons’ diverse product assortment, combining private labels and luxury goods, is expected to attract a wide range of customers and drive significant sales.
The conversation also touches on the broader retail trends, emphasizing the importance of physical stores in enhancing customer experience and loyalty. Amlani highlights the role of visual merchandising and knowledgeable sales associates in creating memorable shopping experiences. They also discuss the importance of data-driven insights in tailoring product assortments to meet customer needs, as demonstrated by Simon’s strategic approach.
Additionally, Patterson and Amlani delve into the global shopping phenomenon, with a particular focus on Shein’s IPO and its implications for the fashion industry. They discuss the environmental impact of fast fashion and the growing consumer awareness around sustainability. The conversation underscores the need for retailers to balance product quality, customer experience, and ethical practices in today’s competitive market.
Episode Sponsor:
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Featured during this interview:
Liza Amlani, Principal and Founder of Retail Strategy Group
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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.
Walmart Canada has become the first major retailer in Canada to introduce a hydrogen fuel cell electric semi-truck.
The truck is operational in the Mississauga, Ontario area as the company continues its journey towards the goal of having a 100 per cent alternatively-powered fleet.
Gonzalo Gebara
“We’re proud to be introducing Walmart Canada’s first hydrogen fuel cell electric vehicle as a major milestone on our journey to becoming a regenerative company,” said Gonzalo Gebara, president and CEO, Walmart Canada, in a statement. “This is a first for a retailer in Canada and is an example of how we will continue to push forward, embrace new technology and spark change within the industry.”
Operating with zero tailpipe emissions, the Nikola Hydrogen Fuel Cell EV Class 8 tractor has a range of about 800 kilometres and on average can avoid 97 metric tons of CO2 tailpipe emissions annually according to the manufacturer. According to Nikola, Walmart Canada is also the first retail fleet to operate one of these trucks in North America.
Image: Walmart
Lillo Puma, Vice President of Transportation for Walmart Canada, said the truck will travel shorter distances at first and the company anticipates it will be deployed throughout southern Ontario, bringing goods from the distribution centres to the stores.
“It’s very similar in size and scale of other trucks we have in our fleet, which is just standard for the industry,” said Puma.
Walmart said the Nikola hydrogen fuel cell electric semi-truck carries high-pressure gaseous hydrogen onboard in specialized tanks, similar to how a conventional truck carries diesel. The hydrogen then runs through the fuel cell stack, which is converted to electricity by combining it with oxygen, with water vapor as the only byproduct. This electric power is transferred to the high-voltage power-net, which can charge the on-board batteries, and transfer power to the pavement via an e-axle with integrated electric motors.
This first hydrogen FCEV was sourced by Etobicoke, Ontario-based ITD Industries Inc., an industry-leading transportation solutions provider, and will be deployed in Ontario for longer-haul trips.
“This is very exciting. We have a very ambitious journey towards a 100 per cent alternatively-powered fleet. This truck is another introduction to the great work that we’re doing,” said Puma.
“Earlier in the year in British Columbia we launched our three Freightliner eCascadia semi-trucks. Those are our EV-powered trucks and this is adding to our ambition of wanting to having 100 per cent alternatively-powered fleet.”
Stephen Girsky
Steve Girsky, Nikola President and CEO, said the collaboration with Walmart Canada, a brand committed to a more sustainable future, aligns perfectly with its mission to drive innovation and environmental responsibility in the transportation industry.
“This achievement underscores our shared vision for a zero emissions future and the positive impact we can make together for our communities and the planet overall,” he said.
Puma said the latest development for the retailer is an example of how it wants to push forward, embrace new technology and spark change in the industry.
“And that’s really what we’re most excited about,” he said.
Puma said safety is a top priority at Walmart. All drivers go through a rigorous training course. Every new vehicle, regardless of what type, or fuel, requires a full, extensive training package for the company’s drivers so they can understand all the particulars of the vehicle.
Image: Walmart
Stephen Lecce, Ontario’s Minister of Energy and Electrification, said the province is rapidly building out Ontario’s hydrogen economy with new production projects that are going to help forward-looking businesses across the province transition to hydrogen vehicles and reduce their emissions.
Stephen Lecce
According to Natural Resources Canada, hydrogen is the simplest, lightest and most abundant element on earth, has the highest energy per unit of any fuel and plays a critical role in working towards a carbon-neutral future.
*Assumes replacement of one Class 8 diesel truck with an avg. 6.5 MPG, 62,169 annual miles traveled. Uses 2024 U.S. EPA emission factors and specified averages.
The EV trucks are operating out of the retailer’s grocery distribution centre in Surrey, BC.
The use of these vehicles will help to prevent the use of more than 100,000 litres of fuel each year, said Walmart.
The Freightliner eCascadia is an all-electric, zero-emissions semi-truck that can travel approximately 400 kilometers from just one charge. At Walmart, these trucks will each be used to travel approximately 110,000 kilometres annually. Designed with innovative safety technology and ergonomic seating, these vehicles are built to keep roads safe and drivers comfortable.
Walmart Canada operates a chain of more than 400 stores nationwide serving 1.5 million customers each day.
Cambie at 7th Avenue in Vancouver (Image: Lee Rivett)
The Vancouver retail market is seeing increased demand even with economic uncertainty. Limited availability and rising rents are driving retailers to secure leases quickly, says a new market report by commercial real estate firm JLL.
Although retail sales have decelerated, some growth is expected in 2024, supported by a growing local tech sector and resilient consumer spending. Transit ridership, the opening of new concepts at Amazon’s The Post, and the rapid recovery of tourism continue to support the recovery of downtown Vancouver, added the report.
Trevor Thomas
Trevor Thomas, Senior Vice President with JLL, said the retail market in Vancouver continues to be very resilient and the outlook is positive.
“I read some stats the other day that the downtown and suburban office vacancy rates continue to fall – 10 and eight per cent respectively. The ridership on public transportation is one of the highest in all the major cities which tells us that more and more people are out and about which of course bodes well for retail in general,” said Thomas.
“Vancouverites definitely tend to spend. It’s a very diverse population and retailers are not blind to that, know the market well and have some of the highest sales in their portfolios in Vancouver.”
Downtown Vancouver on Granville Street. Photo: Lee Rivett.800 Robson Plaza and šxʷƛ̓ənəq Xwtl’e7énḵ Square in downtown Vancouver. Photo: Lee Rivett.
Tourism is back too.
“The city is vibrant. The cruise ships are back. The weather’s improved. Overall I think everything is going as well as it could for Vancouver right now,” added Thomas.
“One thing that I’m noticing also one of the trends is while athleisure has always dominated the retail trends for the last few years, I think this is starting to cool off a little bit and we’re starting to see a shift towards the aspirational category, given lots of tourists and activity in the market. It’s their time to shine.
“Demand is still outpacing supply . . . Retail continues to be resilient. Landlords are still expecting growth in leasing activity this year. However, retailers are a little bit more conscious because both operating costs and profitability remain a concern with all these rising costs. So I think it’s safe to assume that the lease rates are starting to stabilize a little bit after accelerating growth over the last few years.”
Future Adidas Store in downtown Vancouver. Photo: Lee Rivett.
Check out the latest Yaletown views in downtown Vancouver at the SideSignal Collective.
Robson and Burrard Street in downtown Vancouver. Photo: Lee Rivett.
The Vancouver retail leasing market has been thriving, with significant rental growth over the past five years. Demand for retail space has outpaced supply, as evidenced by increased net absorption in 2023, said the JLL report.
“However, leasing volumes have gradually declined since their peak in 2022 as retailers face a softer outlook for consumer spending and a scarcity of premium spaces,” said JLL.
“Vancouver remains an important hub for Canadian-based and international businesses. Retailers in the athletic, outdoor, and fashion sectors – including Adidas, JD Sports, Kit & Ace, and Esprit – have made expansion announcements. Sustained demand has driven rental growth, but more recently inflation and rising property taxes have also been contributing factors, as landlords pass these additional costs on to tenants.
“Construction activity has focused on the redevelopment of malls. The 1.2 million square foot Oakridge Park is scheduled for completion in spring 2025 and will feature a luxury component and the second Time Out Market in Canada.”
Vancouver Retail Spring 2024 (Image: JLL)
While most space absorption has concentrated in general retail and neighbourhood centres, mixed-use retail spaces should see a significant increase in absorption, said JLL.
“Vancouver’s retail market is performing well, marked by limited availability and surging rents. Sustained demand is prompting retailers to secure leases quickly, and limited new construction activity is expected to keep the market tight,” explained the report.
“Despite the deceleration of retail sales growth and a softer housing sector, Vancouver’s retail market remains in demand due to its fast-recovering downtown area and a flourishing local tech sector. The opening announcements of The Post in the downtown area and Oakridge Park in the suburbs are expected to sustain the market’s momentum.
The Post in downtown Vancouver. Photo: Lee Rivett. Oakridge Park in Vancouver under construction. Photo: Lee Rivett.
Looking ahead, the long-term prospects for Vancouver’s retail real estate market remain strong. The city’s high number of immigrants and its role as a hub for international retail concepts contribute to the positive outlook.”
The report said retail sales in Vancouver have shown a downward trend in recent years, although some real growth is predicted for 2024. While home improvement, home furnishings, and jewelry are out of favour, an appetite for electronics, shoes, and clothing has emerged.
“A weaker housing market has softened the economic outlook for Vancouver, but prospects for consumer spending remain positive. The city benefits from an influx of immigrants, a recent boom in the local technology sector, and positive prospects for employment growth,” said JLL.
“Full-service and limited-service restaurants have outperformed retail goods and are expected to continue growing, but at a decelerated rate in the single digits. This suggests that dining experiences remain relatively strong despite an overall retail-sales deceleration.”
By Martin Svensson, Director, Retail Sales at Pinterest Canada
While summer sales sizzle, savvy marketers are already setting their sights on the holidays. That’s because consumers — especially Pinterest users — are already thinking about decking the halls.
Many people see Pinterest as the central hub to all their holiday plans. Pinterest users come to the platform months before special events and moments to find inspiration, save ideas, and start shopping. With enhanced ad products, performance capabilities, and seamless shopping, brands can connect with this audience who are looking to shop and open to new ideas to drive significant holiday sales. Because Pinterest isn’t just a platform for inspiration; it’s where holiday shopping begins.
Performance on Pinterest
Pinterest’s ROI for marketers stems from its user bases’ unique mindset and their shopping behaviours. Pinterest users aren’t just avid planners. They also spend significantly more during the holidays — over 40% more than users on other social platforms1. This presents a golden opportunity to connect with high-intent shoppers with disposable income who are looking for products to purchase.
Since launching new performance ad tools, Pinterest saw a 50% year-over-year increase in clicks on and saves of buyable items2 which indicating more than ever that users aren’t just browsing. They’re actively making purchase decisions, making Pinterest a prime target for effective holiday marketing.
Success stories — from inspiration to checkout
From in-store to ecommerce, last holiday season many brands witnessed Pinterest’s effectiveness in turning inspiration into action. Since Pinterest users are planners, advertisers are finding the most success with extended campaigns that start early and run through the holiday season. For example, Toys“R”Us Canada kicked off their Pinterest holiday campaign early in 2023, to get a head start on reaching holiday shoppers on Pinterest. The result? An increase in online sales and a 2x increase in in-store visits—suggesting Pinterest’s ability to turn digital ads into foot traffic3.
Another holiday success story is Urban Outfitters, which took the opportunity in 2023 to curate a holiday shopping experience on Pinterest. Showcasing their “stocking stuffers” led to a curated part of the brand’s online gift shop. And targeted fashion ads transformed the platform into a virtual department store window, enticing users to explore a holiday fashion collection that Urban Outfitters had put together. The results were strong: They saw a 2.4x increase in outbound clicks and a 57% decrease in cost per click4.
What works best on Pinterest
Pinterest’s magic lies in its ability to connect inspiration and action, creating a seamless path to purchase. By “nudging” users down the funnel with relevant ads that feel like helpful suggestions, Pinterest transforms the start of an idea into a tangible buying decision.
Pinterest has an ability to personalize each user’s experience, ensuring that users are consistently presented with items that align with their interests. This tailored experience guides shoppers from initial discovery (“Ooh, I love that look!”) to adding items to their cart with ease, making it a powerful tool for driving holiday sales.
Pinterest means performance
But it’s not just about inspiration. Pinterest is a powerhouse for performance marketing, and the numbers prove it. A recent study revealed that weekly Pinterest users rank it as the #1 most helpful platform for planning their 2024 winter holidays, with over 93% claiming it’s nearly twice as helpful as other sites and apps for holiday decision-making. This is not by accident. Pinterest has heavily invested in expanding its performance toolkit, empowering businesses to drive conversions and measure results with precision. Key features like the Pinterest Conversions API, direct links, Mobile deep links, and enhanced campaign tracking have yielded impressive results for advertisers, like a 28% increase in conversions and up to a 96% increase in traffic for its advertisers5.
If you’re looking to elevate your holiday marketing strategy, Pinterest could be the answer. The platform’s proven ability to drive sales, reach new customers, and outperform the competition is backed by data. To get started, explore the Pinterest Holiday Hub – your one-stop shop for resources, insights, and best practices to maximize your holiday campaigns.
Martin Svensson is a director of sales at Pinterest Canada leading the retail vertical. Prior to Pinterest, Martin spent 10 years at Google working on a mix of media sales teams. Before Google, Martin led an ecommerce startup, where he learned first-hand the challenges retail leaders face. Originally from Malmo, Sweden, Martin now calls Toronto home.
(1) Talkshoppe, US, 2024 Winter Holidays, January 2024, study commissioned by Pinterest, Winter holiday household decision makers with holiday purchases, Weekly Pinterest users (compared to weekly users of other social platforms).
(2) Pinterest Internal Data as of June 2023 | Note: Comparing Q2’23 vs. Q2’22.
(3) Foursquare x Pinterest, Toys“R”Us, Q4 Holiday Foot Traffic Lift Study Results (Dec 2023), Canada
(4) Pinterest internal data, US, 2023.
(5) Pinterest internal analysis, Global, Sep 2022, advertisers adopting the API for Conversions compared to using only the Pinterest tag.
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Partner content. To work with Retail Insider, contact Craig Patterson at advertising@retail-insider.com
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.
Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson
Big Box Outlet Store, Western Canada’s leading liquidator, is continuing to expand its retail footprint.
Jeff Driedger
Jeff Driedger, President of the company, said the brand just opened its 19th location in Sherwood Park, Alberta.
“We have our 20th under construction right now in Lethbridge. It will be opening later in the summer,” he said.
“In just over a year, we’ve gone from 11 to soon to be 20 locations.”
Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson
All locations are in Alberta and British Columbia.
“A lot of those expansion locations have been in Alberta. We’ve opened five new locations in Alberta. We’ve been opening stores in BC as well. We opened three new locations in BC during that time.
“We’re talking to a few landlords. We’ll see what happens. We want to continue to grow. We think eventually there’s room in the market for 40 locations for us in Western Canada and eventually we want to be a national player.”
The company has its head office in Abbotsford, BC.
Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson
The typical size of a store is 15,000 to 20,000 square feet. Some stores are a little bit smaller and some a little bit larger.
The first store opened 39 years ago.
“We grew slowly for a bit and have taken off in the last year or so,” said Driedger.
Big Box Outlet Store offers a wide range of products from around the world, including new, manufacturer-direct, seasonal closeout, refurbished, and open-box items. Its selection includes electronics, fashion, outdoor gear, hardware, kitchenware, appliances, furniture, and even groceries.
Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson
Formally known as MTF Price Matters, Big Box Outlet Store has been family-owned by the Funk’s since 1985. The core of the brand has kept focus ever since on finding brand name items through its reverse logistics purchasing channels, in order to sell products to customers at heavily discounted prices.
“Our mission is to help people afford everyday life,” said Driedger. “And we think particularly in this economic cycle people’s budgets are stretched, they’ve seen inflationary pricing have a big impact on their pocketbooks and they’re looking to save some money. And we’re part of that solution. We really do believe in that mission and that is what kind of excites us to grow our company.
“Generally speaking we do better in suburban locations than urban locations. Part of that is the size of the location that we’re looking for as well. They tend to be more prevalent in suburban locations but a lot of our customer base would be families and so in those areas where families tend to live, those suburban areas. But we serve a pretty diverse customer group overall.
“Sometimes it’s difficult for people to understand what it is that we do because we’re a discounter but you will find brands in our stores. So you’re not necessarily what you might see in a Dollar Store or you might see in a liquidator. You really will find brand name products at better prices. We sell almost 50 categories, everything from grocery to furniture to large appliances, outdoor recreation gear. If you look at our assortment, it’s really quite unique.”
Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson Inside the Big Box Outlet store at Sherwood Park Mall in Sherwood Park, Alberta. Photo: Christa Patterson
Wendy's at 357 King St W, Toronto (Image: Dustin Fuhs)
Wendy’s Canada is looking to expand more throughout Canada, including doubling its footprint in Quebec in 2024. The brand has also opened a new location at Blue Jays Way in Toronto, which is under its newest concept: Global Next Gen design and will be renovating existing locations to match the new change.
“Wendy’s new location at Blue Jays Way is not just about convenience, it is about bringing a state-of-the-art dining experience to our customers,” says Dana Calvert, the chief development officer for Wendy’s international. “With our Global Next Gen design, we are enhancing the way people interact with our brand, offering a sleek, modern environment and the latest digital technology to ensure speed and accuracy in every order. This opening marks a significant milestone in our ambitious growth plans across Canada.”
Dana Calvert
Calvert explains that the new design features a kitchen layout that provides more flexibility and allows Wendy’s to expand into non-traditional spaces. Customers at the new Blue Jays Way location and future locations can expect a modern interior design enhanced by technology, including mobile digital ordering options. All new locations will feature this concept and existing locations will be renovated.
“Our Global Next Gen design features a streamlined kitchen layout that offers greater flexibility and will offer a modern interior design. Additionally, we are committed to renovating our existing locations to incorporate this innovative design, including restaurants that have already started renovations this year – ensuring a consistent, high-quality experience across all Wendy’s restaurants.”
The design will include new innovations such as a mobile order pickup system and will increase efficiency, such as new lighting and HVAC, to decrease energy consumption: “a win for our economies, but importantly for the environment.”
Wendy’s at 357 King St W, Toronto (Image: Wendy’s)Wendy’s at 357 King St W, Toronto (Image: Dustin Fuhs)
Doubling in Quebec
Wendy’s will double its restaurant footprint in Quebec by 2024 and reach the Company’s goal of 50 restaurants serving Wendy’s favourites across the province by 2030.
Wendy’s is looking to double its footprint in Quebec by the end of 2024 and wants to reach 50 restaurants by 2030. Currently, Quebec only has 15 Wendy’s locations. Three locations have already opened in Sherbrooke, Papineauville, and in Thetford Mines which opened on May 24th.
The expansion will see new restaurants opening in both urban centres and suburban areas, with a focus on accessibility and convenience. Calvert says Wendy’s is partnering with several new franchisees and helping existing franchisees to expand in the province.
We are thrilled to announce our ambitious plans to double our footprint in Quebec by the end of 2024 and aim for 50 restaurants by 2030. Currently, Quebec only has 15 Wendy’s locations, but we see tremendous potential for growth in both urban centres and suburban areas. We have already made significant progress with new openings in Sherbrooke, Papineauville, and Thetford Mines,” says Calvert. “This expansion focuses on accessibility and convenience, ensuring that our high-quality food and service are easily available to more customers. Our goal is not just to increase our presence, but to become a beloved brand in every community we serve in Quebec.”
National Expansion Plans
Wendy’s in Ottawa, Ontario (Image: Wendy’s)
Looking beyond Quebec, Calvert says the brand will continue to expand across Canada as they have lined up new franchisees.
“We have a growth strategy across the entire country. We have our existing franchise base highly engaged and committed to growth. We have also recruited 24 new franchisees in the past few years who will also build a brand. So you will see Wendy’s showing up from small markets, urban centres, and non-traditional spaces. We have the local team highly engaged to deliver on that growth with our franchises and we have high confidence that we have commitments for growth across the entire country.”
As the brand continues to expand, Calvert says they are looking for locations that are around 2,000 square feet and will be focusing on high traffic areas in Montreal, Vancouver, and Toronto.
“Canadians can expect the best in the business from our local real estate team, franchisees, and expert brokers, who will be accelerating our leasing plans to bring more Wendy’s to more people, more often. Our new Global Next Gen restaurant at Blue Jays Way is the latest example of pairing Wendy’s iconic favourites with an iconic location strategy to reach both loyal, local customers and the many visitors to the area. We will continue to challenge the status quo, evolving our restaurant experience to bring Wendy’s to our fans anytime, anyplace, anywhere.”
Wendy’s at 357 King St W, Toronto (Image: Wendy’s)
Sainte-Catherine Street in Montreal needs to improve its occupancy rate by another eight per cent to be considered fully recovered from the pandemic, says a report from real estate firm JLL.
Canadians have increasingly displayed a heightened appetite for new in-person socializing and entertainment experiences given the pandemic and its isolating effects, which should influence how empty spaces will be filled out in the near future, it said.
Jesse Provost
Board game cafés, escape rooms, virtual reality, and competitive socializing concepts are among the most popular small-sized entertainment concepts that would add a much-needed element to an otherwise well-rostered street, added JLL.
“Already renowned as an entertainment hub, new concepts are sure to benefit from the many nearby residential projects delivered in recent years, adding to the mix of office workers, tourists and university students. The much-anticipated new light rail transit line, which will connect the four corners of the city to the downtown core will attract people who might otherwise have decided to stay in the suburbs. Sainte-Catherine Street is literally at the heart of Montreal’s business, cultural, and entertainment districts. All the ingredients are there for a vibrant and lively mix of entertainment concepts,” said Jesse Provost, Associate Vice President, Retail at JLL.
La Maison Simons on Sainte-Catherine Street (Image: Dustin Fuhs)
With the pandemic creating a public shift toward online shopping, pop-up stores are becoming more commonplace. Whether it is digitally-native clothing retailers looking to obtain a physical presence, or local retailers affected by the pandemic looking to make a comeback, pop-up stores are excellent at generating hype and giving retailers the opportunity to safely test a market before making a larger commitment, said JLL.
“It’s anticipated that Sainte-Catherine Street will become home to many first-in-market pop-up concepts in the coming years given the street’s prominence and ability to attract foot traffic,” said the report.
“Unlike typical retailers, pop-ups thrive on temporary presence. By doing this, pop-ups can promote a sense of urgency from their customers, inviting them to shop at their store prior to their imminent closure.
“Some pop-ups that have recently opened in the GMA include Arkad, Zellers, and Turquoise’s Treasures. Another pop-up coming to Montréal is Shein, a clothing e-retailer that is set to arrive in July. The brand had recently opened a four-day pop-up in Toronto, which created a steady stream of line-ups and was deemed largely successful.”
Image: SHEIN
Johanne Marcotte, Executive Vice-President Property Management, Retail at JLL, said: “With catalogs of products available at their fingertips, consumers are looking for experiences that go beyond traditional shopping. Retailers can meet these changing preferences by offering pop-up formats which hugely benefit them. Temporary locations and activations provide an opportunity to gather real-time reactions from customers, understand market demand and evaluate the long-term visibility of their concept. This flexibility enables brands to fine-tune their strategies, product offerings, and customer experience based on their direct feedback.”
Johanne Marcotte
The report said the luxury sector is one of the retail categories that has seen almost uniformly positive results in North America and was one of the first categories to bounce back after lockdown restrictions were lifted.
“While the current elevated interest rates and the economic uncertainty that they bring can be challenging for price-sensitive consumers, it’s important to note that affluent luxury consumers experienced relatively little turbulence during the pandemic,” said JLL.
“In turn, these shoppers should continue to overcome current economic obstacles and provide much-needed consumption stability. The sustained demand for premium products should provide a ripe opportunity for luxury retailers. According to a Business of Fashion survey, just under 80 per cent of respondents expect to visit luxury stores as often or more frequently this year compared to 2022. Just over 50 per cent of respondents plan on visiting a luxury store each quarter . . . Some luxury retailers that have recently teased future openings in the GMA include Tiffany & Co, Louis Vuitton and Gucci.”
Sainte-Catherine is the commercial artery of downtown Montréal. Reaching residential areas, the street stretches for over 11 kilometres and can be accessed by nine metro stations. Tourists and locals alike gravitate towards Montréal’s premier high-fashion district, which is home to many of the city’s most popular retailers such as Simons, Apple, Canada Goose, H&M, and more.
Provost said the most important thing that came out of the JLL report is the indication of an increase in activity on the street.
“We have been seeing retailers either relocating, moving or leaving,” he said. “Overall, there’s activity on the street. We’ve also seen rents start reflecting the new reality and with increased activity landlords are starting to ask for more net rent on the street.
“I think pre-pandemic the street was experiencing some turmoil or some difficulties with the street renovation project. This continues but we are seeing the light at the end of the tunnel. Some majors are relocating such as Apple which is going to be one of the largest in Canada. Alo Yoga is also going to be opening across the street from the new Apple. There are new players in the market.
“Are we back to pre-pandemic? I would say very close to that and with a lot of optimism in the future . . . There are quite a bit of retailers looking at Sainte-Catherine Street for two reasons. One, I think the people at Royalmount did an excellent job of bringing attention to Montreal as a market. So there’s a lot of first to market within that project. Many of those may look to do a second in the downtown core some day. And other retailers which didn’t see themselves as the right fit for Royalmount are also considering Sainte-Catherine Street. We’re seeing new players consider Montreal on the national or even international scale now.”
All three major intersections on the high street saw their pedestrian counts double between 2021 and 2023, with the Sainte-Catherine and Guy intersection registering the highest increase at 153 per cent, followed by Sainte-Catherine and Peel at 126 per cent, and lastly with Sainte-Catherine and Crescent at 114 per cent, said the JLL report, adding that overall, foot traffic between the intersections increased by 127 per cent from 2021 to 2023.
According to STM data, ridership in metro stations neighboring Sainte-Catherine Street have increased year over year. Between 2021 and 2022, ridership increased by an average of almost 72 per cent across stations near Sainte- Catherine Street, which is significantly higher than the STM’s overall average of 49 per cent. Among the neighboring stations, Peel recorded the smallest increase in ridership (64 per cent), while Lucien-L’Allier witnessed the highest growth (88 per cent), said JLL.
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 several days.
