Craig and Lee embark on a discussion centered around the contrasting retail landscapes of San Francisco’s Union Square and Toronto’s Yorkville. Craig’s recent trip to San Francisco prompted him to explore the Union Square area, known for its diverse retail offerings, particularly in the luxury segment. He highlights the architectural grandeur of Union Square, wide sidewalks, and a concentration of high-end brands like Saks Fifth Avenue and Neiman Marcus. The discussion delves into the presence of wealthy patrons in San Francisco, driven by the city’s tech industry, contributing to the thriving luxury retail scene.
In contrast, the hosts shed light on the village-like ambiance of Yorkville, emphasizing the historical charm of the area with smaller buildings, cafes, and a tight-knit community. Craig observes that Yorkville, with its resident population and diverse income levels, boasts a vibrant and safe environment for both shopping and socializing. They also touch on the challenges faced by San Francisco, including vagrancy and crime in certain areas, like the nearby Tenderloin neighborhood, which contrast with the relative safety of Toronto’s upscale shopping districts.
Ultimately, the hosts recognize that both San Francisco and Canadian cities like Toronto have unique retail landscapes, with San Francisco’s Union Square catering to luxury consumers and Toronto’s Yorkville offering a distinctive village atmosphere. They express optimism for San Francisco’s retail future, foreseeing the city overcoming its hurdles, while appreciating Canada’s vibrant downtown cores and their sustained retail vibrancy.
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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 three days.
Retailers across North America are increasingly dealing with theft in the industry.
For example, the National Retail Federation in the U.S., recently reported that retailers lost an estimated $112.1 billion last year from theft and lost inventory.
John Crombie
John Crombie, Executive Managing Director, Retail Services, Canada at Cushman & Wakefield, said it’s a bigger problem in the U.S. than in Canada. He said there is a movement in the U.S. to get stricter penalties for ‘grab and go’ theft.
One issue Crombie said is that self-checkouts have grown substantially in the retail sector over the past five years. He cited a study from the U.S. indicating that self-checkout now accounts for about 55 per cent of all customer transactions, up from 2017 when it was only 36 per cent.
“There’s been reports especially in Canada where a lot of the grocery stores using the self-checkouts, it saves money for labour costs, customers seem to like it because it’s quicker especially if it’s vacant there, but they are having problems with theft. People aren’t scanning everything,” said Crombie, who is also Marketplace Council Director for the ICSC.
Self Checkout at Rexall in Metro Hall (Image: Dustin Fuhs)
According to a survey of its members earlier this year by the Canadian Federation of Independent Business, 57 per cent said they have experienced theft/shoplifting; 56 per cent have experienced vandalism/breaking and entering. And 28 per cent said they experienced vagrancy and/or encampment issues.
And according to marketing firm Leger in a recent survey, Canadians are most supportive of retailers implementing security cameras (88 per cent), electronic anti-theft alarms (85 per cent), and security guards (78 per cent). Canadians are least supportive of retailers implementing limits to the number of customers allowed in stores (32 per cent), customers needing to leave bags in a locker/with an employee while shopping (32 per cent) and/or requiring customers to show ID to make a purchase (17 per cent).
It also said that 45 per cent of Canadians think retailers are implementing the right amount of security measures to prevent theft, while 27 per cent think they are not implementing enough. Only 10 per cent think retailers are implementing too many security measures.
Image: Dick’s Sporting Goods
There’s growing number of incidents, and videos on social media, showing people simply walking into stores, particularly in the U.S., and walking out with merchandise and not paying for it.
Recently, Dick’s Sporting Goods in the U.S. blamed shrink, theft and damaged inventory, for its poor financial results in the second quarter which saw profit drop by 23 per cent while sales were up 3.6 per cent.
“I have one retailer I’ve been working with and he’s been broken into three times and it’s not only costs associated with repairing windows. In fact, they broke through the window twice and through the roof another time. The labour costs of fixing that, the security costs while it’s broken and open, and third the insurance cost. And that’s all driving down your bottom line. It’s just an expense that you didn’t anticipate and all your prices have gone and increased up there,” said Crombie.
Broken Window at MobiZone on Richmond Street in Toronto on Sunday, October 1st, 2023. (Image: Dustin Fuhs)
Many retailers have increasingly locked up merchandise in stores such as tools and electronics to prevent people from shoplifting them.
“It’s like anything in the retail industry. You want your customers to feel that they can browse and look around and feel confident that they can touch and feel the product. I mean that’s what brick and mortar is all about. You’ve got the ability to go in and see the product, feel the product, get a sense of the product from a physical perspective but if it’s all locked up it’s just an extra barrier. Are you going to encourage more e-commerce business and really take away that tactile feeling that retail’s been all about for obviously forever and a day,” said Crombie.
“That’s a danger you have.”
Crombie said many retailers today want both exterior and interior entrances. It’s been a discussion due to the pandemic. The retailers that did better during a lockdown in the pandemic were those that consumers could enter from the exterior especially when the interiors were closed. But for the retailer it adds another issue with regards to security with more than one entrance to your store.
The issue of theft hits the bottom line for many retailers and that’s not good considering the economic challenges the industry is facing with rising costs and ho-hum sales.
“When you look at statistically, the last two months have been relatively flat,” said Crombie. “The second quarter was actually negative returns. So we had that blip in January/February which kind of really supported sales. We thought maybe it’s going to be a good year.
“The consumer has been relatively resilient. But we’re now feeling that coming into the fall, the pressures of disposable income going down because of interest rates are affecting that, mortgage payments are going up, they’re suggesting that could go upwards to 25 per cent of what they were paying. So this is just cutting into the disposable income.
“I think the Gen Z’s and Millennials are going to be the most impacted because in as much as their incomes have gone up, they’re the ones most vulnerable because they don’t have a lot of cushion.”
Shuttered Blaze Pizza at John and Richmond in Downtown Toronto (Image: Dustin Fuhs)
Crombie said restaurant spending is also curtailing. There’s a slowdown taking place.
But the luxury retail market in Canada is being driven by tourism which is back after the pandemic.
“We’ve seen a huge upswing in travel . . . People are traveling and that has impacted the luxury spend within the Canadian market. Tourism has come. It’s come back. There’s business travel. There’s tourism travel and I think that’s been a real driver for that,” added Crombie.
He said he has been looking at overall retail store closures this year and it’s been pretty light.
“I’ve counted about 170 store closures up to September this year. And to put it in context, usually the average is about 500 to 600 a year. So we’re tracking very low. Year 2020, the year of the pandemic, we had over 2,000 store closures, about three and a half times the average. And then there was almost nothing in 2021, about 1,400 last year but there’s so few this year,” added Crombie.
“Retailers have had the chance to cull out their underperforming stores and really I think the damage has already happened. I think that’s actually a good sign with a market showing its health. So it’s nice to see we’re not seeing quite the store closures that we’ve had in the past. I don’t expect that many to happen in the next couple of months because October, November, December are very strong months. Any retailer tries to stay open up to Christmas.”
Future TNT Flagship Store at Yorkville Village (Image: Dustin Fuhs)
Fashion retailer TNT – THE NEW TREND, is planning to open a new flagship store in Yorkville Village in Toronto.
The brand has three current locations in Toronto – Bayview Village with about 7,000 square feet; Eglinton Avenue with about 15,000 square feet; and existing separate locations in Yorkville Village with both menswear and womenswear.
Arie Assaraf
“Early next year, we’re opening our new concept flagship store in Yorkville Village which will be approximately 20,000 square feet. It will feature both menswear and womenswear in the same space, which will be a first for TNT. Additionally, it will be our 30-year anniversary and therefore 2024 will be an exciting year for us,” said Arie Assaraf, founder of TNT.
Future TNT Flagship Store at Yorkville Village (Image: Dustin Fuhs)TNT – THE NEW TREND Yorkville Village (Rendering: TNT)
“Phase one of the opening will be around October 20th, where we will move our MEN Store to the front of the new project. Then the grand opening of the full space is expected around March of 2024.”
“In addition, we have our E-COMM business, tntfashion.ca, which we launched during the pandemic. Our online business is strategically focused on servicing the Canadian market.”
“We have also decided to open a new concept store in Montreal, which will be a VIP E-COMM private shopping experience to help better serve our Montreal clientele.”
“In my opinion, TNT is the best independent multi-brand retailer in the country,” shared Eric Sherman, Head of National Operations, First Capital REIT. “They are able to identify the best new brands, present them effectively within their retail environment, and concurrently ensure that this resonates with their customers. They’ve created a concept that transcends generations, building a trust with their partners and customers that is unprecedented.
Eric Sherman
“This relocation and consolidation into a contiguous flagship space in Yorkville to align with their 30 year anniversary is the perfect evolution for TNT who is solidifying itself as the fashion anchor of Yorkville Village. They stand shoulder to shoulder with the large international concepts and brands that have made their way into the neighbourhood over the years. I am proud to call the Assaraf family partners and friends and can’t wait to see this new concept unveiled in the spring.”
TNT – THE NEW TREND Yorkville Village (Rendering: TNT)
TNT said it carries an extensive array of international brands representing the best of both established and emerging designers.
“A pillar of style and quality, TNT has everything to complete one’s closet from essential wardrobe staples to modern fashion trends. TNT’s highly attentive personalized service creates the ultimate shopping experience for Men’s and Women’s fashion,” said the retailer.
With Nordstrom exiting the Canadian market and struggles for other retailers like Saks, Assaraf said TNT has seen big growth in its business because it used to also have a lot of luxury brands – super luxe brands – and now a lot of the mono brands opened their own shops.
“We carry about 250 brands at all different price points. We are an alternative to a department store, but in a boutique style. We really cater to the woman and man’s closet and are all about personal shopping,” said Assaraf. “We cater to the local customer and don’t depend on tourists.”
TNT – THE NEW TREND Yorkville Village (Rendering: TNT)TNT – THE NEW TREND Yorkville Village (Rendering: TNT)
“We have the most relevant brands today for our clients and have great relationships with all our vendors. This allows us to do a lot of pop-ups and events with the designers and create an experience for our customers.”
“Although I cannot be oblivious that things are not easy, my philosophy was never to look at just what’s happening out there. We’re focusing on our business, our customers, and we’re blessed to have three generations of shoppers in our stores. We believe in consistently bringing in what our clients need and making sure to evolve and bring them a new experience every season.”
Fast food workers and union activists demonstrate outside the California State Capitol in support of legislation to increase fast-food worker wages to $20 an hour, on Friday, Sept. 15, 2023, in Sacramento, Calif.
(Terry Chea/AP)
The ongoing debate surrounding the prospect of raising the minimum wage has been a burning issue both globally and right here in the United States. California has taken center stage in this discourse with a bold move to significantly increase wages for its fast-food workers. Commencing on April 1, 2024, California’s half-million-strong fast-food workforce will witness a surge in their minimum wage to $20 per hour, representing a staggering 23% increase from the $16.21 average hourly wage in 2022. While this initiative may appear well-intentioned, aimed at enhancing the quality of life for low-wage earners, it is imperative that we critically examine the potential consequences that may arise from such a significant policy shift.
The wage hike, undoubtedly advantageous for workers, will undeniably exert substantial pressure on fast-food operators. In an industry where labour costs traditionally constitute approximately 25% of operational expenditures, the introduction of a $20 minimum wage will have a profound and far-reaching impact. Some employees may even find themselves earning in excess of $25 per hour, a wage level historically unheard of in the fast-food sector. Consequently, the implementation of this policy will inevitably necessitate operators to reevaluate and potentially overhaul their business strategies.
California will increase the minimum wage for over 500,000 fast-food workers to $20/hour starting April 1, 2024. (Image: Facebook.com/CAgovernor)
One of the most consequential implications of such wage hikes is the hastened march toward automation. As labour costs surge, the economic rationale for fast-food establishments to invest in technology and robotics becomes increasingly evident. Automation has already begun to reshape the industry, with self-ordering kiosks and robotic kitchen equipment becoming more prevalent. With the advent of the $20 minimum wage, the pace of automation is expected to accelerate further, as operators seek ways to offset the burgeoning labour expenses. Given the current backdrop of escalating food prices and consumer inclination toward staying home to save, raising menu prices is not a viable option for food chains striving to remain competitive.
While automation undoubtedly offers efficiency and cost savings for businesses, it raises legitimate concerns about the human element in the fast-food experience. As evidenced by the banking industry’s adoption of ATMs, overreliance on technology-driven interactions can render the consumer experience impersonal and less satisfying. With fewer employees available to engage with customers and prepare food, the very essence of fast food, as we have come to know it, may undergo a fundamental transformation.
Furthermore, the substantial wage increase poses a notable risk to the job market. It is plausible that, in the coming years, the fast-food industry in California may not employ the same volume of people as it once did. A diminished workforce could have cascading effects, impacting not only the livelihoods of those who lose their jobs but also the broader economic landscape.
It is important to acknowledge that California’s decision to raise wages in the fast-food sector reflects a more extensive societal concern about the state of fast food. Fast-food chains have often been criticized as purveyors of nutritionally deficient meals, contributing to health problems such as obesity and diabetes. By significantly increasing wages, California appears to be sending a message that the fast-food industry is not entirely welcome in the state. While many may concur with such a stance, it is vital to recognize that the sector employs well over half a million people and supports food processing and farming within the state and beyond.
Tim Hortons Hiring Signage (Image: Dustin Fuhs)
Although California’s approach is unique, it has the potential to set a precedent that resonates with other markets, including Canada. As the labour movement continues to gain momentum, other governments, including our own, may encounter similar pressures to follow suit. Presently, the province with the highest minimum wage is British Columbia, at $16.75, while the lowest is in New Brunswick, at $14.75. A jump to $20 per hour would indeed be substantial.
However, governments must proceed with caution. While research on the correlation between minimum wages and job creation yields mixed results, an upcoming study to be published in Manufacturing & Service Operations Management suggests that the benefits of such increases may not be as generous as hoped. Another study, conducted by Purdue University, also indicates that higher minimum wages in the food industry can lead to improvements in food safety and quality assurance practices—an aspect seldom discussed.
The decision to raise fast-food wages in California represents a well-intentioned effort to address income inequality and improve the lives of low-wage workers. Nevertheless, it also raises significant questions about the future of the industry, including the rapid adoption of automation and the potential loss of jobs. Policymakers must conscientiously weigh the pros and cons of such policies and consider their broader implications for both workers and the fast-food sector. Striking a balance between the needs of employees and the realities of the industry and society at large will be pivotal in achieving a sustainable and equitable solution.
Retail leaders and stakeholders from diverse sectors are turning their attention to the potential of generative AI. The cutting-edge technology, hailed for its capacity to revolutionize various aspects of work and learning, is thus increasingly under the spotlight.
As technological adoption becomes more rapid in the retail industry, leaders are looking to make generative AI technology a top priority for their organizations. The shift comes with the need to mitigate risk and ensure ethical adoption according to Kathy Baxter, Principal Architect of Responsible AI & Tech at Salesforce.
A Revolution Across Business Functions
Kathy Baxter
Generative AI possesses the power to permeate every facet of retail operations, from sales and marketing to customer service, commerce, IT, legal, human resources, and beyond, according to Baxter. With that, it will redefine how retailers and other companies engage with customers and will help propel business growth.
At the same time, a palpable sense of apprehension persists. Baxter said in an interview that the majority of senior IT leaders are concerned about the security risks associated with these technologies, along with the potential for biased outcomes. It is a stark reminder that alongside technological advancements, organizations must grapple with the ethical and transparent use of the powerful tool.
Navigating Ethical Challenges
According to Baxter, who recently spoke at the Salesforce Dreamforce 2023 conference in San Francisco, one of the central challenges lies in ensuring that generative AI is employed ethically and responsibly, particularly within enterprise settings. Unlike private, individual use, retailers and other businesses must navigate a labyrinth of industry-specific regulations and ethical implications. The margin for error, such as providing incorrect instructions, underscores the need for clear ethical guidelines to avert unintended consequences and harm.
Introducing Ethical Frameworks for Generative AI
In response to these challenges, Baxter explained that ethical guidelines have emerged for organizations navigating the generative AI landscape. These guidelines, while not supplanting existing ethical principles, serve as a guide for operationalizing and implementing them in the context of generative AI development.
Baxter explained the recently introduced guidelines that encompass five core focus areas. These include:
Accuracy: Retailers and other organizations must train AI models on their own data to ensure accuracy, communicate uncertainty in AI responses, and provide transparency in sourcing information.
Safety: Mitigating bias, toxicity, and harmful outputs is paramount. Privacy protection and security assessments are crucial to identify vulnerabilities.
Honesty: Respecting data provenance, consent, and transparency in AI-generated content are fundamental.
Empowerment: Generative AI should augment human capabilities, especially in industries such as retail where trust is essential, ensuring accessibility and fair treatment of contributors.
Sustainability: Reducing the carbon footprint of large language models is a sustainability imperative.
As retailers gear up to integrate generative AI, Baxter explained some key strategies which include using zero-party and first-party data, ensuring data freshness and accuracy, and maintaining a human-in-the-loop approach to safeguard accuracy and ethical standards.
Continuous Oversight and Feedback
Generative AI cannot operate in a set-and-forget manner, Baxter noted, necessitating constant oversight and testing for accuracy, bias, and ethical considerations. Listening to employees, advisors, and communities is vital to retailers to identify and mitigate risks.
As generative AI continues its rapid ascent into the mainstream, Baxter said that retailers must assume the mantle of responsibility to ensure ethical usage and harm mitigation. By adhering to ethical guidelines and staying committed to a robust ethical framework, retailers and other companies can embrace this transformative technology while preserving accuracy, safety, honesty, empowerment, and sustainability. In this era of rapid transformation, a steadfast ethical foundation will serve as a compass for retailers navigating the evolving landscape of generative AI.
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.
Loyalty and reward programs have ballooned in Canada in recent years and continue to be popular in the tough economic environment consumers face with rising costs for just about everything.
Lia Grimberg
But one interesting statistic caught the attention of retail and loyalty expert Lia Grimberg, Principal and Consultant with Radicle Loyalty.
She learned that 33 per cent of consumers abandon a brand that lacks personalization.
Grimberg says marketers are not delivering on customer expectations when it comes to personalization.
“That is a stat that blew my socks off,” said Grimberg. “Personalization means different things to different people but at the end of the day people know that we as retailers and we as brand marketers collect a lot of their data.
Be Well Loyalty Program at Rexall (Image: Dustin Fuhs)
“And they know what their data is worth . . . When they know we have so much data and we’re not actually using it to add value to the consumer in the way of either better experience or more personalization then they start either abandoning the retailer for someone who understands them better, who knows them better and who can provide more relevance.
“Or on the flip side, they worry what are we doing with their data? Are we doing something potentially nefarious which I can promise you we’re not but personalization is now considered table stakes. It’s a given and it comes in the form of offers, it comes of the form of content, it comes in the form channel preference, it comes in the form of timing. And it’s about making sure that we are connecting with people human to human.”
In this video interview, Grimberg, who has worked with brands like The Bay, Loblaws, Sears, Home Depot, American Express and AIR MILES, talks about the issue as well as what makes good loyalty programs.
The Video Interview Series by Retail Insider is available on YouTube.
Connect with Mario Toneguzzi, a veteran of the media industry for more than 40 years and named in 2021 a Top Ten Business Journalist in the world and the only Canadian – to learn how you can tell your story, share your message and amplify it to a wide audience. He is Senior News Editor with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.
Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.
Iconic New York City-based fashion brand Ralph Lauren has opened its first full-priced luxury store in Canada at Toronto’s Yorkdale Shopping Centre. Ralph Lauren plans to expand further into the Canadian market with a dedicated e-commerce site launching next month, as well as more standalone stores in the future.
The Yorkdale Ralph Lauren spans nearly 5,500 square feet on one level in a retail space formerly occupied by a Club Monaco store (which relocated in the mall). The new Ralph Lauren features a double-height facade comprising of cherry wood louvers and aged-bronze metal. The interior is described as being bright and contemporary, with white walls and a limestone floor.
About 75% of the merchandise in the store is considered to be ‘luxury’ in terms of price point, featuring a mix of men’s Purple Label and the Ralph Lauren Women’s Collection, as well as a selection of Polo Ralph Lauren men’s and women’s fashions that make up about a quarter of the remaining merchandise.
The store’s client services include private styling appointments, alterations and repairs, and made-to-measure tailoring.
Ralph Lauren Yorkdale (Image: Ralph Lauren)Ralph Lauren Yorkdale (Image: Ralph Lauren)Ralph Lauren circled in red – click image for interactive Yorkdale mall map
Ralph Lauren will also expand its Canadian operations online. On October 11, an English language e-commerce site will launch with the URL RalphLauren.ca, featuring the brand’s full portfolio of Purple Label, Ralph Lauren Collection, Polo Ralph Lauren, Double RL and Lauren by Ralph Lauren, with categories for men, women and children for apparel, accessories and footwear. A range of home goods will also be available on the new site.
The company said in a statement that it plans to eventually launch a French language website for the province of Quebec.
Ralph Lauren is in a growth phase in North America as well as in Asia and Europe. Ralph Lauren is calling the strategy the ‘Next Great Chapter: Accelerate’ which it says will deliver sustainable, long-term growth and value creation for the company which many thought had become stale in recent years. Ralph Lauren launched luxury stores across the United States in years past and many have since shuttered.
The new strategy for Ralph Lauren includes a mix of flagship stores, boutiques, outlets, wholesale partners and digital platforms. Ralph Lauren operates 12 outlet stores across Canada and also has a wholesale presence in retailers such as Hudson’s Bay, Sporting Life and Harry Rosen. Sources told Retail Insider several months ago that some of the Polo Ralph Lauren shops in some Hudson’s Bay stores could close as Ralph Lauren tightens some of its distribution channels.
Bob Ranftl
“Ralph Lauren’s ethos of timelessness and authenticity has inspired and connected with our Canadian consumers for decades, and we’re excited to bring a more holistic expression of our brand to Canada,” said Bob Ranftl, Regional Chief Executive Officer for North America at Ralph Lauren Corporation in a statement. “We look forward to serving our consumers throughout Canada with enhanced and elevated experiences that reflect our luxury lifestyle point of view.”
Ralph Lauren Yorkdale (Image: Ralph Lauren)Ralph Lauren Yorkdale (Image: Ralph Lauren)
Toronto is one of Ralph Lauren’s top 30 target markets for expansion globally, prompting the opening of the Yorkdale store. A location in Toronto’s Bloor-Yorkville could be expected as Ralph Lauren has stated that it plans to open more stores in Canada in the coming years. Sources told Retail Insider that locations could include the future Royalmount in Montreal and future Oakridge Park in Vancouver, though neither are confirmed by the brand at this time.
The Yorkdale Ralph Lauren store is located in the mall’s 2012 expansion wing, across from an Apple store and Holt Renfrew and alongside such brands as Emporio Armani, Dolce & Gabbana, Valentino, Bottega Veneta, Celine and others. Yorkdale is significantly expanding its luxury offerings over the next couple of years as it dedicates an additional 100,000 square feet of existing retail space in the mall to luxury brands. Sources familiar with luxury retail in North America are saying that Yorkdale will be among the top malls globally in terms of luxury brand offerings in the coming years as more stores open and relocate in the centre.
Until about two decades ago, Ralph Lauren had stores across Canada under its Polo Ralph Lauren banner. Store openings began in the early 1980s. In Montreal, Polo Ralph Lauren stores were found in locations including Westmount Square and Sherbrooke Street West. In Ottawa, Ralph Lauren had stores at the Byward Market (11 York Street) and Bayshore Centre. Toronto had stores at Hazelton Lanes and Sherway Gardens among others. Edmonton had a store in 1984 on Jasper Avenue, which in 1986 relocated to Europa Boulevard in West Edmonton Mall. Calgary had stores at Banker’s Hall and Mount Royal Village. The town of Banff in the 1990s had a store at Cascade Plaza, while Whistler BC had one at the Delta Mountain Plaza. Victoria BC had a store at 1200 Government Street for years. Downtown Vancouver was a unique market for Ralph Lauren for a time with a store on Robson Street in Vancouver as well as in Gastown — and in 1989 the Gastown store at 375 Water Street (The Landing) was converted to the very first ‘Polo Country Store’ concept, which was ultimately unsuccessful.
Bayshore Shopping Centre has firmly established itself as the premier and dominant retail fashion shopping destination within western Ottawa with the addition of a number of new retailers in the past year, more to come in the near future, and plans to densify the property.
Andrea McGowen, Executive Managing Director, Asset Services Canada, for Cushman & Wakefield which operates the property, said that in the last 12 months Bayshore has completed 77 leasing transactions equating to over 431,000 square feet leased.
Andrea McGowen
New retailers to the centre include Levi’s, L’Occitane, Specsavers, Mobile Care, Laurier Optical, Expedition Luggage, Boutique Galeria, Stuffy Riders and many more.
“These retailers have complemented our existing merchandise mix and align with the needs and wants of our customers,” she said.
Bayshore Shopping Centre (Image: James Park)Bayshore Shopping Centre (Image: James Park)
Renewals have also been completed with key retailers such as Victoria’s Secret, Gap/Gap Kids, Apple, Michael Hill Jewellers, and Hudson’s Bay. Existing retailers who have relocated or upsized include Clement – Ottawa’s largest baby and kids store of +16,000 square feet – Calendar Club, and Acai.
“The deal momentum has been incredibly strong this past year and we are faced with the problem of retailers competing for space – which is always a good problem to have. The mix of successful retailers coupled with our strong and loyal customer base has successfully contributed to a nine per cent increase in sales year over year,” said McGowen.
“Exciting new retailers which will open before the end of 2023 include Poulet Rouge, Presotea, a temporarily relocated Soft Moc and the fabulous specialty retailers who form part of our annual Christmas program. We have just signed a lease with a large format international fashion retailer who will open Summer of 2024. This will be a huge draw to the centre and we look forward to the time when we can formally announce the name. We have another 11 locations totalling over 23,000 square feet currently at the paper stage with numerous first to market retailers – all will open at various times throughout 2024.”
Sport Chek at Bayshore Shopping Centre (Image: James Park)Clement at Bayshore Shopping Centre (Image: James Park)
Bayshore Shopping Centre was originally built in 1973. The centre is owned by Kingsett Capital and managed by Cushman and Wakefield. It has roughly 900,000 square feet of retail space over three levels. Bayshore has undergone three major redevelopment projects, including most recently a food court relocation that was completed in 2021. Bayshore is home to 185 tenants, anchored by Hudson’s Bay and Walmart and is ideally positioned with excellent accessibility and visibility at the intersection of the 416 & 417 highways.
Future densification plans at the site include plans to develop the vacant land adjacent to the centre and future LRT station (2026). The project, which has received city council’s approval, will include two towers, 30 and 27 storeys situated on a three-storey podium with approximately 500 rental apartment units.
Both towers will connect into an above-ground walkway directly connecting the mall and station. The building will be developed to ensure it meets the latest sustainability initiatives including energy efficient heating and cooling.
Justin Markey, General Manager, said the popular shopping centre is more or less fully leased out right now.
Justin Markey
He said the relocation of the food court from the second level to the third level has been a success.
“We had identified over the years that there were some challenges presented with how the traffic flow was working throughout the property. The third level certainly had a little bit of a difficult time . . . So in order to re-strengthen both traffic and productivity of the third level, we relocated the food court back up which in turn restructured how traffic flow moves throughout the property and we’ve seen the direct impact to that,” said Markey. “Productivity for the new food court is significantly higher than what it was when we were on the second level. The relocation has also transpired into a number of permanent leasing deals taking place on the third level.”
McGowen said the large format international fashion retailer who will open Summer of 2024 will take up 16,000 square feet.
Recently, Bayshore Shopping Centre celebrated its 50th anniversary. It has been celebrating with a fantasy-filled outdoor space for shoppers to rest, refresh and escape the every day.
The space, called “Elevate”, sits atop a 4,000-square-foot vibrant ground mural created by Ottawa-based artists, Dems & Doll. The Candyland-inspired space features colourful lounge areas, custom pergolas, Insta-worthy displays, as well as a calendar of engaging programming and activations. These include guided meditation with #Sage, spa sessions with #L’Occitane, a circus camp, a Bears & Friends Event with #Build-a-Bear, a ‘Queen for a Day’ chess tournament, #Walmart Charity BBQ and so much more.
Bayshore Shopping Centre (Image: Bayshore)Bayshore Shopping Centre (Image: Bayshore)Bayshore Shopping Centre (Image: Bayshore)Bayshore Shopping Centre (Image: Bayshore)
In addition to being a welcoming space for shoppers, “Elevate” is also a haven for pollinators. One side of the space is blanketed with a pollinator-friendly garden, featuring nearly 300 pesticide-free plants providing food, resting, and nesting for bees, hummingbirds, butterflies, and other pollinators.
Rebecca Quinn
“We’re beyond delighted to be marking 50 fabulous years for Bayshore Shopping Centre,” said Rebecca Quinn, Marketing Manager for Bayshore. “To help our shoppers celebrate the milestone, we wanted to provide them with a whimsical, one-of-a-kind space to cap off this beautiful summer season. It has been so well received we are extending into the 2nd week in October!”
Quinn said Bayshore has experienced an increase of 73 per cent followers and 96 per cent engagement on its social channels.
“Bayshore is known as the premium and dominant retail fashion shopping centre in western Ottawa. The city of Ottawa continues to grow westward. There is currently under construction a light rail transit system. We will have a new transit station built to replace the existing bus station,” said Markey.
“So this is going to connect us to a significantly larger population. We’ll be able to draw on a larger demographic. The mall is known as a clean, vibrant and bright shopping experience that welcomes in a variety of different shoppers. We cater to a wonderful family demographic along with a large number of young professionals.
Bayshore Shopping Centre 50th Birthday (Image: Bayshore)
“And in the immediate area we do have a number of residential packages that both feed the centre in terms of retailers’ staff along with a shopping component.”
For five years in a row, it’s been voted as Ottawa’s top shopping centre by the People’s Choice Awards.
*** Bayshore Shopping Centre Images courtesy of James Park ***
Additional Photos from Bayshore Shopping Centre
Bayshore Shopping Centre (Image: James Park)Laurier Optical at Bayshore Shopping Centre (Image: James Park)Bayshore Shopping Centre (Image: James Park)Levi’s at Bayshore Shopping Centre (Image: James Park)lululemon at Bayshore Shopping Centre (Image: James Park)Bayshore Shopping Centre (Image: James Park)Swarovski at Bayshore Shopping Centre (Image: James Park)L’Occitane at Bayshore Shopping Centre (Image: James Park)L’Occitane at Bayshore Shopping Centre (Image: James Park)Build-a-Bear at Bayshore Shopping Centre (Image: James Park)Bayshore Shopping Centre (Image: James Park)Sport Chek at Bayshore Shopping Centre (Image: James Park)Bayshore Shopping Centre (Image: Bayshore)
