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UNIQLO to Enter Calgary Market with 1st Store: Interview with CEO Daisuke Tsukagoshi

Uniqlo store at CF Fairview Pte-Claire in Montreal. Image: Uniqlo

Global retailer UNIQLO will open its first store in Calgary this spring at CF Chinook Centre in over 15,000 square feet.

Calgary will be Canada’s second new store opening this year after UNIQLO’s Ottawa location launching in June 2023. Building upon the momentum of its expansion strategy, UNIQLO is entering new cities across the U.S. and Canada. UNIQLO aims to open 20 new stores a year to reach 200 in North America by 2027, said the company.

“We are excited to open our first store in Calgary and expand our footprint in Alberta,” said Daisuke Tsukagoshi, CEO of UNIQLO North America. “Since opening our Edmonton store in 2019, it is clear that the Alberta customer resonates with the LifeWear message – that clothing is made for everyone every day.

“We opened our first Canadian location in 2016 in Toronto at CF Toronto Eaton Centre. Since then, we have grown in Canada; we currently have 16 locations throughout Ontario, BC, Quebec, and Alberta. And we are online at UNIQLO.ca. Since 2022 we have opened two new locations, both in Quebec at CF Fairview Pointe-Claire and CF Promenades St-Bruno. Additionally, we are excited to expand our footprint within new locations in Ottawa at CF Rideau Centre and Calgary at CF Chinook Centre.

Click image for interactive mall map

“We look to expand within the North American market and have accelerated our growth strategy in Canada and the US; this includes opening new stores in key regions throughout Canada. We aim to open 20 new stores yearly to reach 200 in North America by 2027.”

Globally it has more than 2,400 locations across 27 countries.

Daisuke Tsukagoshi, image: Uniqlo

“Canadian customers are akin to European shoppers. Europeans share similar values as Canadians, such as resilience, humility, and good character. They shop with longevity in mind – essential clothing that compliments their lifestyles, made to be building blocks of their wardrobe that take you from year to year; this is one of the many reasons why UNIQLO resonates with Canadian consumers,” said Tsukagoshi.

The brand will be moving into the old Victoria’s Secret/Pink space at CF Chinook Centre as that retailer is relocating in Calgary’s most popular shopping centre.

Uniqlo store

“UNIQLO Founder Tadashi Yanai began his career working with his family’s retail business, Ogori Shoji Co. In those early days, Mr.Yanai cultivated his skillset in the retail space. He later evolved the family’s business concept and opened the first UNIQLO in Hiroshima, Japan, in 1984,” said Tsukagoshi.

“UNIQLO has always strived to offer thoughtfully crafted clothing with life’s needs in mind; this truly sets us apart  – we call this LifeWear. Our LifeWear philosophy – not just a term for our clothing but the philosophy in which we run our business; our purpose for existing.”

The company said its new location in Calgary will offer the brand’s unique guest experience with its entire lineup of LifeWear for men, women, and kids. Through the lens of innovation, LifeWear clothing is designed to make everyone’s life better. It is simple, high-quality, everyday clothing, thoughtfully crafted with life’s needs in mind and is constantly evolving to modern life, it said.

“UNIQLO will offer the brand’s iconic products for men, women, and children, such as Ultra-Light Down – warm, packable jackets perfect for layering or travel – and AIRism– an innovative breathable fabric that actively wicks away moisture and heat from the skin. Other staples include BlueCycle jeans, made using just a teacup’s worth of water – up to 99% less than in the standard jeans finishing process – and high-quality knits, windproof fleece, t-shirts, and more,” it said.

“Additionally, the store will offer its buy-online-pickup-in-store service to ensure customers leave with what they need in the right fit and complimentary alterations. For any pair of pants $20 or above (excluding athletic wear and sweatpants), UNIQLO provides free hemming services to ensure pant lengths fit the customers’ unique measurements.”

Jeff Berkowitz of Aurora Realty Consultants represents UNIQLO in Canada and negotiated the Canadian store leases, including the new Calgary location.

Vancouver’s Historic Gastown Amid Retail Rebound, but Some Say a Major Facelift is Needed [Feature]

Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

On April 12, the Sapphire Princess arrived at the Port of Vancouver, depositing roughly 1,700 people in downtown Vancouver’s waterfront at the doorstep of Gastown and marking the beginning of what’s expected to be a return-to-normal tourism and cruise ship season in the historic Vancouver district.  

Walley Wargolet. Photo: Gastown.org

The Sapphire Princess was the first of 331 cruise ships expected to arrive in town between now and October 24. Days after its arrival, Retail Insider visited Gastown with Gastown Business Improvement Association executive director Walley Wargolet, who pointed out ways the national historic site should be updated by local leaders, while also painting an optimistic picture for the neighbourhood’s long term retail prospects as it rebounds from a couple of tough years caused by reduced tourism, the work-from-home movement, and security and social problems spilling over from the troubled Downtown Eastside.

This isn’t the first time that revitalization of Gastown has become a hot topic around Vancouver. In the 1970s, civic leaders installed faux Victorian-era streetlights and red bricks on sidewalks and Water Street to “play-up” Gastown’s Victorian roots, this recent account in The Tyee describes.

Like Wargolet, other retail stakeholders interviewed by Retail Insider frame Gastown’s retail market as returning to strength, post-pandemic, with relatively low vacancy and a healthy mix of boutique shops, cozy cafes, international retailers, restaurants and improved alley activations. But for Gastown’s full potential to be realized, it needs a facelift, Wargolet said. And the City of Vancouver agrees.  

Iconic Steam Clock in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
Iconic Former Hudson’s Bay Company (HBC) Warehouse on Water Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

“The neighborhoud was neglected by the city for quite a while, unfortunately,” Wargolet tells Retail Insider in a strolling interview. Over the last 15 to 20 years a lot of maintenance work has piled up, including painting the light fixtures and maintaining the cobblestone streets and brick sidewalks.

Wargolet is standing on the sidewalk at Water Street near Cambie Street, beside a section of smeared asphalt patching what used to be red bricks. On the street surface, the cobblestones here are heaving and sinking, with more asphalt patchwork visible. There are a few empty storefronts with for-lease signs in the windows, but not many. 

“The good news is over the course of the last couple of years, we’ve seen some of that (repair) work done.” Wargolet said, but adds that the work has been “piecemeal”. What’s really needed is a comprehensive public realm plan to reinvigorate the neighbourhood.

“Piecemeal” repairs to cobblestone on Water Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
“Piecemeal” repairs to cobblestone in Maple Leaf Square (and former location of John “Gassy Jack” Deighton Statue) in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

The city appears to agree. In an email to Retail Insider a city communications staffer said “Gastown’s streets and public spaces are in need of urgent repairs and major rehabilitation.”

Home to about 80,000 people and a diverse, commercial mix, the city recognizes the importance of supporting public life, economic vitality and cultural vibrancy in this neighbourhood, the email said, adding that Gastown’s public spaces should also be updated to reflect the histories and cultural significance of the Musqueam, Squamish, Tsleil-Waututh Nations, as well as urban indigenous communities. 

Carrall Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
Water Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

In late May 2023, staff will bring forward a report to Council presenting options and seeking direction on the revitalization of Gastown’s streets and public spaces, according to the staffer’s email. 

Wargolet hopes that process will include analyzing the neighborhood, talking with residents, local businesses and bringing the best ideas to life. He said various studies, plans and design concepts have been activated in recent years, but have yet to come to any meaningful results. 

Current retail picture is strong

Andrian Beruschi. Photo: CBRE.ca

Adrian Beruschi, a vice-president with CBRE brokerage house in Vancouver, feels that the BIA and new city council is overstating the need to revitalize Gastown and that the current retail market in Gastown is rebounding nicely. 

“I think the retail along Water Street is quite strong,” Beruschi told Retail Insider, acknowledging the visible wear and tear, and concerns over safety and crime spilling over from the troubled Downtown Eastside. “There’s not a lot of vacancy; there’s some quirky spaces down there, (but) it’s not by any means plagued with vacancy.”

The neighbourhood obviously went through tough times, like all commercial districts, during the pandemic, but the next six months (and beyond) will bring in more cruise ship traffic, tourism, returning office workers and warmer weather, Beruschi said. “(Gastown) needs a little bit of time for people to get reacquainted with it,” he said, stressing there’s no need to hit the panic button.

Gravity Pope and John Fluevog on Water Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
Water Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

Supply and demand for retail space seems to be in balance with a retail vacancy around 7% in the district. 

Martin Moriarty. Photo: LinkedIn

Gastown is “on the ascendency”, said Martin Moriarty, senior-vice president at Marcus & Millichap. The area continues to blend attractive architecture with good mix of local, international and boutique retailers including the likes of Herschel Supply Co., Aesop, Bailey Nelson and Fleuvog Shoes. “There’s a really good cafe and food scene down there too,” he said.

Moriarty supports any city plans that could pump capital investment and development into the neighbourhood and surrounding areas. Mostly, they need a better grasp on safety and security, he said. “I think the number one (priority) would be trying to improve the security… and improve the environment such that it’s more conducive to walking, and people feeling comfortable.”

Wargolet says there has been a greater effort to have security patrols of Gastown from 9am-7pm daily to help visitors, and to support retailers against shoplifting and other petty crime. Since last summer, the BIA has also been working with the city to support a homeless outreach program to help people find shelter who would otherwise sleep on the streets or in tents. 

Eateries Carrell Street at Blood Alley in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
Eateries on Gaolers Mews just off Carrell Street near Blood Alley in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
Water Street Garage building: Meet (Eatery) and Neighbor (Retail) on Gaolers Mews with corridor backing out onto Blood Alley in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

Blood Alley Square re-do represents a good start

Wargolet takes the interview to Blood Alley Square, a treed courtyard wedged between a few eateries and businesses on the north edge of the square and an ambitious redevelopment site on the south side. Workers are now updating the square to add more public seating, improve its appearance and thread it together with the businesses adjacent to the square.

Westbank has been working on a redevelopment of the Blood Alley complex at 23 West Cordova St. The project will have 142 homes including 80 social housing units and 62 market rentals. Plans also aim for a 72-seat restaurant and bar, and include a proposed 600-seat event and music venue that would reside in the basement of the structure. 

“This is a prime example of a really well-designed development,” Wargolet said. “You have activated spaces, restaurants, retail, housing. So, this whole concept of mixed-use is really the only way forward for our city… Gastown has some amazing examples of how that can be done really well.”

Meanwhile, Army & Navy Properties and Bosa Properties are working together on a proposal to redevelop the former Army & Navy department store location on the shoulder between the Downtown Eastside and Gastown. 

The project aims to re-energize commercial and residential development in the troubled DTES neighbourhood, but city staff have refused to support the project, reportedly due to the project’s size. The developers say they will take their application directly to the mayor and council. 

Former Army & Navy storefront on Cordova Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett
Blood Alley Property (Left) and Former Army & Navy storefront (Right) on Cordova Street in Gastown in downtown Vancouver in April 2023. Photo: Lee Rivett

“We see that (Army & Navy project) as a benefit to the neighborhood,” Wargolet said. It will add market and social housing while bringing in more people to support the local businesses. It will also add new commercial space, office space and services on Gastown’s doorstep, he said. 

Something Gastown could do with less of, is cars, said CBRE’s Beruschi. At least on the weekends to make way for more pedestrian-friendly activity and summer festivals. “I don’t think vehicular traffic should be there 100% of the time,” he said. 

Gastown is an historic site, Wargolet reiterated. “This neighborhood has not received the care and maintenance that it really deserves. The good news is the city council, city staff, everyone, agrees — and everyone has come to the table now saying, ‘we want to do better’.” 

Related Retail Insider Articles

Guelph-Based ‘Crafty Ramen’ Expands into Toronto Market while Also Growing Ecommerce [Interview]

Crafty Ramen on Ossington Avenue (Image: Dustin Fuhs)

Crafty Ramen, a popular Guelph-based ramen shop, has opened its first location in Toronto on the popular Ossington strip as it continues to expand its footprint with physical locations as well as e-commerce.

The concept first began in 2017 by co-founders Miki and Jared Ferrall.

Khalil Khamis, CEO of Crafty Ramen, said the business is now in Guelph, Kitchener, and Toronto.

“Jared is a chef by trade. He’s worked for some of the fanciest kitchens in the world like Gordon Ramsay and the Point One Per Cent (wealthy people). Jared and Miki met in Vancouver while Miki was learning English. They moved to Japan together and ended up working on a super yacht. Jared was a chef on that boat. They toured the world and during that time they figured out that they wanted to not do food for the Point One Per Cent and open something that could be for everyone,” said Khamis.

Khalil Khamis

“Jared has family here in Guelph. Everywhere they went on the boat they ate ramen, they had a passion for the product and wanted to do something around ramen. When they went back to Tokyo before coming to Guelph here they studied (at a ramen school in Tokyo) and they travelled the country eating bowls from top to bottom. One thing they learned is a couple of the key pillars of ramen are regionality and creativity.

“So when they settled in Guelph and opened their ramen shop here they really wanted to have a local take on ramen. We source all of our broth, our noodles, proteins, all of that is sourced locally, made in house from scratch. There’s a couple of ingredients that we need to source from Japan but for the most part we’re sourced locally.”

Crafty Ramen in Guelph (Image: Crafty Ramen)
Crafty Ramen in Kitchener (Image: Crafty Ramen)

Khamis comes from a franchise background. He lives about a 10-minute walk from the Guelph restaurant and met the Ferrall’s as a regular customer about a year after they opened. 

“I said this is incredible. I love the food and the brand and you guys have done a great job, let’s partner and grow restaurants. So after many conversations and meetings we partnered and we opened our second restaurant in downtown Kitchener four months before the COVID pandemic. We opened in November 2019,” he said.

Then they started to create the ramen meal kit where people could buy the broth, noodles and toppings on the side. In the early days of the pandemic, they were able to make about 100 at a time and put them on its website for local pick up. 

They were selling out in minutes. People on social media across the country were asking Crafty Ramen to ship these meal kits out.

The company’s e-commerce was launched in December 2020 and started shipping the ramen meal kits across Ontario and that organically grew into independent grocery stores reaching out to them who wanted to sell the meal kits.

“Through that we learned there’s nobody doing restaurant quality ramen in grocery,” explained Khamis.

Crafty Ramen on Ossington Avenue (Image: Dustin Fuhs)
Crafty Ramen on Ossington Avenue (Image: Dustin Fuhs)

Recently it launched its frozen ramen product as well. That is available from coast to coast with numerous partners scattered throughout the country. 

“It’s been going very well,” he said.

“A bowl of ramen is more than a meal — it’s an experience of comfort and connection that lives at the heart of everything we do at Crafty Ramen,” said Miki Ferrall, Crafty Ramen co-founder and VP of operations. “We opened Crafty to create a space that feels like ‘home,’ where people can unwind and share their day over something warm and familiar. We’re so excited to continue to grow our community and make Toronto our newest home.”

Now, with the opening of their third restaurant location, Toronto ramen-lovers (and noodle-curious) can get a taste of a Crafty Ramen bowl made fresh for themselves. The space serves as an homage to the shops Miki grew up with in Japan. Diners seated along the bar have a full view of the open kitchen and are encouraged to watch and learn, while the narrow intimacy invites everyone inside to engage in the cooking experience as their meals are prepared.

The closeness of the space also allows guests to enjoy the interior ‘craftiness’ of the restaurant’s decor. Two back walls are covered in an intricate Japanese pop culture collage, assembled by hand by Miki herself, while the adjoining wall is made to recreate the feel of an open-air ramen stall, with an awning overhanging the seating area and a mural hand painted by a local artist. Every aspect of the design sets the tone for a space alive with fun, care, creativity and appreciation for the full ramen experience.

Crafty Ramen co-founders, Miki and Jared Ferrall, are bringing their ramen experience to the Ossington strip. (CNW Group/Crafty Ramen Market Inc.)
Crafty Ramen on Ossington Avenue (Image: Dustin Fuhs)

The new restaurant also includes a mini-market at the front of the shop so that guests can easily grab from an array of Asian-inspired products made by other local small businesses, along with Crafty Ramen’s own make-at-home meals and sauces  — and soon an exciting new frozen ramen product launching in the coming weeks.

Khamis said e-commerce has really shone a light on the brand but its focus is around brick and mortar and the grocery channels.

“We’re going to look to open another restaurant corporately early next year in Q1 of 2024 and then we’re going to explore franchising. We have some super passionate community members that have reached out . . . so we’re going to explore what that looks like next year,” he said.

Are Canadians Buying Less Groceries with Ongoing Inflation? [Op-Ed]

Image: Sobeys

We learned last week that Canada’s food inflation rate in March dropped for a second month in a row, to 8.9%. However, prices at food stores rose 9.7% year-to-year. While prices increased by 0.3% in one month, the lowest percentage so far in 2023, the gap between food inflation and the general inflation rate reached 4.6%, the highest it has been since 2009. Even though Canada still has the third-lowest food inflation rate within the G7, after Japan and the United States, a stubbornly high food inflation rate compared to that in other economic sectors will only continue to cause sticker shock at the grocery store. 

Many are asking when food prices will return to pre-2022 levels. The truth is, they won’t. With higher wages and increasing packaging and energy costs, food prices just won’t drop. Some food companies will raise salaries by more than 10% over the next three years, just to increase employee retention. It’s challenging to recruit for many remotely located agri-food companies, and the work in some cases can be physically demanding. Consumers are feeling the impact of these financial adjustments up the food supply chain. Grocers are paying more for goods, as shown in their financial statements for several months now.

Our best hope, though, is to see the food inflation rate drop. With a lower food inflation rate comes more predictability for the industry.  Many households are dedicating a larger percentage of their total budget to food purchases – or are they?

The retail sales numbers released by Statistics Canada over the past few years are telling us an interesting story. In January 2017, Canadians were spending 48% on food, among all other goods bought at retail. This went down to 46% just before the pandemic started. In March 2020, this rate shot up to 74% for obvious reasons – nothing was open for business. Today, 41% of the money spent on retail goods is for food, excluding alcohol and cannabis. These numbers exclude major components of our economy like services and housing. The data seems counter-intuitive but may in fact suggest a few things. For one, while this certainly means inflation is impacting all aspects of our lives, the data is telling us that Canadians are still spending.

Sylvain Charlebois
Sylvain Charlebois

Most important though, total retail sales for grocery and specialty food stores appear to have almost plateaued. In February 2023, the monthly food expenditures per capita were about $583. In February 2020, three years earlier, the monthly food expenditures per capita were roughly $618. Since we get less for our dollar now, these numbers are astonishing. If we are to believe these numbers, Canadians are likely buying less food in volume and are also spending less in food retail. Also, since major grocers’ revenues including Loblaw, Empire/Sobeys and Metro have increased in recent years, this may also indicate that independent grocers are simply selling less food. Again, these numbers don’t provide a full retail picture since they exclude services, but numbers suggest that while the size of our retail market is still increasing, food retail in Canada is stagnating. In fact, from January 2022 to January 2023, retail food sales have dropped in Canada by more than 5%. By mid-2022, when food inflation was really putting more pressure on everyone, food retail sales started to drop despite more people coming to Canada.

Unsurprisingly, many, many households are just spending less, and being more frugal about food purchases in times of financial stress. They may also be wasting less food as well and are more careful with food inventories they have at home. Or is it more gardening, or more visits to famers’ markets? This causes concern about the numerous health and nutritional compromises made by consumers due to higher food prices. We can see how trading-down at the grocery store can have long-term effects on the health of individuals and families, especially children.

It certainly has been confusing for Canadian shoppers over the last 12 months. Grocery shopping takes more thought and analysis on the part of the consumer. We can’t just drop by the grocery store and pick up what we’ll need for the next few days. The bad news is that Canadians are coming out of an era during which food was dirt cheap. In fact, the world is experiencing the same challenges, not just Canada. The good news is that things are slowly calming down for the food industry, giving them much needed breathing room, and allowing food retail to offer consumers more frequent and better discounts. So, yes, with food inflation, patience will pay off.

Krispy Kreme Doughnut Chain Plans Cross-Canada Location Expansion after Downsizing [Interview]

Krispy Kreme Scarborough (Image: Krispy Kreme Canada)

Years after exiting a number of locations in Canada, doughnut chain Krispy Kreme is looking to expand its current presence in the Canadian market with more cafes as well as theatre-style stores with drive-thrus.

Levi Hetrick, Chief Growth Officer & Operating Partner for Krispy Kreme Canada, said the brand currently has 13 locations across the country in BC, Ontario and Quebec – 12 of those are owned and operated by his group. A franchise based out of Seattle runs the brand location in BC.

Levi Hetrick

“What we’re looking to do is build a factory, a theatre hub, location in Calgary much like we already have in Mississauga, in Scarborough, Ontario, in Greenfield Park, a suburb of Montreal and one in Quebec City and the deals we’ve recently completed and will open soon in Winnipeg and Edmonton,” said Hetrick.

“It’s about a 4,500-square-foot production facility that’s also a drive-thru with sit-down retail. We call it a theatre hub because you can see the doughnuts being made. So the way that Krispy Kreme works each of our drive-thru facilities it’s also a factory. That’s where all the doughnuts are made fresh every day and then they’re sold on site and then also delivered to a nearby could-be smaller cafe. We sell at Costco We produce for our fundraising program. We do a lot of e-commerce through different partners and are potentially talking about wholesale agreements with people like Walmart, Loblaws, etc. But those are not currently in place today.’

Image: Krispy Kreme Canada

The Calgary store is looking at opening late 2024 or early 2025. Fairfield Commercial Real Estate Inc. is working with Krispy Kreme to assist with their expansion in the Calgary market.

“We’re trying to be a bit opportunistic with real estate. We’re not going to build many, many factories like this – theatre hubs and drive-thru theatre hubs – in Calgary so we want to find the best one or two spots in Calgary to build a facility,” said Hetrick.

He said a theatre hub will open later this year in Toronto and then Winnipeg will also likely open later this year. There’s a signed deal in Edmonton as well to open likely in Q3 of next year.

“What we’re looking to do is build sort of the same building in multiple locations,” explained Hetrick. “Sort of a prototype that we’ve designed for the Canadian market and find great real estate in high traffic areas in each of the major cities across Canada and expand our reach.”

Krispy Kreme Doughnut Theater Experience in NYC (Image: Krispy Kreme)

He said about 20 theatre hubs in the future would cover Canada with an additional 40 or so smaller locations in the cafe format.

“Krispy Kreme never actually left Canada. It just drastically reduced operations. What you probably recall is that in the early 2000s it was quite a run-up not just in Canada but across the globe to open as many Krispy Kreme’s as possible,” said Hetfrick. “Mississauga was literally the first international Krispy Kreme for the brand and it is still open and one of the most successful shops on the planet today. It produces and sells more doughnuts than any other shop, basically in the world.

“Early 2000s they got up to about 17 locations across a bunch of cities in Canada but the business was losing money and for a variety of reasons . . . the corporate group decided to drastically reduce and eventually to close most of Canada.

“It was at that time that my now business partners took the brand private. It was corporate owned. They took it private in 2006/2007 and that went down from 17 locations down to three. From that time, they’ve slowly grown it up to 10 locations and in late 2021 they established a partnership with the corporate entity and it’s no longer a franchise. It’s a joint venture partnership with Krispy Kreme corporate back in the States and that’s when I joined because I was part of Krispy Kreme corporate at the time. The brand has been around and we still think it’s got tons of potential in Canada just because Canadian consumers are fans of Krispy Kreme. But to be honest our biggest issue is access. Also a lot of people don’t know that the brand is still here. We have an opportunity to re-establish the brand for a lot of people and grow.”

Aburi Restaurants Launching WA-BAGEL Retail Concept in Canada with Vancouver Launch [Interview]

Seigo Nakamura and Yukiko Iikura at her Kepo Bagels in Japan

Aburi Restaurants Canada is opening its brand new WA-BAGEL concept in the heart of downtown Vancouver in late-spring bringing a unique Japanese-style bagel to the market with plans for expansion.

The concept will open in 1,887 square feet at 666 Burrard Street.

Huy Tran, National Director, Marketing, Aburi Restaurants Canada, said the location is anticipated to open in June or July.

Seigo Nakamura

He said WA-BAGEL follows in the footsteps of its sister restaurant, WA! CURRY, as a counter service spot to start, offering take-out and delivery options. Guests can also order and dine across the hallway in the building’s spacious communal concourse.

“Japanese-style bagels are my favourite type of bagel because they are more light and smaller in-size, often with a filling, similar to another Japanese snack-favourite, the onigiri,” said Seigo Nakamura, founder and CEO of ABURI Restaurants Canada. “They are becoming more and more popular in Japan, and there is really nothing like it in Canada yet. I thought it would be a great idea to introduce something new to the Canadian market. There are so many different kinds of flavours. Have you ever had a mochi cheese bagel or a lemon peel and azuki bean bagel? They are delicious!”

Image: WA-BAGEL
WA-BAGEL by Aburi

WA-BAGEL’s bagels are made with Canadian flour and a koji-based yeast. When it opens, WA-BAGEL will have 14 flavours of bagels and bagel sandwiches to start, including red bean paste and cream cheese, sweet potato and black sesame, Aburi Market’s fresh cut salmon lox & scallion cream cheese sandwich, and eggplant and bacon with miso and cheese. There will also be a variety of drinks, such as coffee and tea.

Yukiko Iikura, Head Baker, WA-BAGEL, founded her own popular bagel shop in Japan called Kepo Bagels for the past 15 years.

“I love baking and I also love chewy-textured things and WA-BAGEL’s dough features the texture and aroma of mochi,” she said. “In Japan, we use many different types of flavours and fillings for our bagels, and we’ll definitely be using some very Canadian-inspired ingredients in some of our options. I’m very excited as Canada has some of the best flour in the world, and we’ll get to use it in our bagels.

“Instead of mixing the ingredients in the dough, I roll the ingredients into the dough . . . For me, the texture is most important. I’m using Canadian flour. I think Canadian flour is the best for me in the world. I love Vancouver’s water. I’m so excited I can make bagels here in Vancouver.”

Image: WA-BAGEL
Image: WA-BAGEL

Tran said when Iikura creates her bagels, and the reason why it’s very unique, is because she actually puts the ingredients inside the dough and rolls the dough over it.

Huy Tran

“And the reason for that is that it doesn’t compromise the dough itself and it preserves the taste,” he said.

“Vancouver is a very, very rich cultural hub. It’s very diverse. Aburi has been known for being innovators. Thirteen years ago we opened the first Aburi concept in Vancouver and we also introduced Aburi cuisine to North America. So we always want to be that concept of first to market and we realize that Vancouver has a lot of audience especially people who crave diverse tastes and constantly trying to chase new trends.

“So that’s why we wanted to bring this concept to life with Yukiko to introduce to the audience there.”

Tran said the company does foresee more locations in the future.

“We have plans for Toronto and probably beyond Canada,” he said.

The Aburi Restaurants brand includes Miku, Miku Toronto, Minami, Minami Toronto, TORA, Hana, WA! CURRY, WA-BAGEL, grocerant ABURI To-Go, and ABURI Market.

Another Slow Month for Canadian Retail Sales [J.C. Williams Group Analysis]

Image via Cadillac Fairview

Slow and steady remains the trend for Canada’s 2023 retail sales to date, with All Stores in January growing 4.9% YOY and All stores Less Automotive, Food, Pharmacies up only 2.4% YOY.

An early trend in 2023 is the Food and Beverage Stores industry, up 3.5% YOY (below the rate of food inflation, which rose 10.6% in February, 2023). As a result of these seemingly endless increases in the cost of food in Canada, Specialty Food Stores are bearing a significant brunt, continuing a downward trend in February of -9.1% YOY. Currenty, non-specialty food costs the same as specialty foods did a year ago. Specialty foods seem to be the first cutbacks that Canadians are taking to combat their rising grocery bills.

Even though February 2022 and February 2023 were very similar through a COVID lockdown and health lens, there were still significant shifts in consumer sentiment. A key example of this is people’s work lives. Last week, the JCWG team visited RCC Human Resources Conference in Toronto and returning to office work is still on everyone’s minds. This is being reflected in Clothing Stores, up 14.3% YOY, and Shoe Stores up an even more impressive 24.4% YOY.

An interesting correlation that is further showing itself in 2023 is the decline of Beer, Wine, and Liquor Stores, down -1.7% YOY. This has been a topic of discussion at JCWG recently, and our early insights consider:

February’s modest growth in retail sales continues as the trend of inflation, housing, work life, and societal changes being major factors in specific categories’ growth or decline. However, certain players can still succeed in their industries with the right strategy.  As we continue to move through 2023, the alcohol and cannabis categories are on our minds, as we consider:

  • Where will be the next municipality to approve dispensaries after  success in other markets?
  • When will Cannabis Retailers oversaturate current demand and start to shutter?
  • What can make alcohol more appealing within the new guidelines?
  • Why are alcohol retailers not innovating more in their store strategy to combat changing consumer preferences?
  • How are YOU changing your alcohol/cannabis consumption habits in 2023 with new information, guidelines, and accessibility?

For support in your retail strategy, planning, and innovation, reach out to the trusted experience at JCWG!

Canadian Retail Sales by Product Category, Same Month Comparison
Canadian Retail Sales by Store Category, Year to Date Comparison
Retail Trade, Canada, All Stores, by Geographic Regions

Fabricland Lands at Yonge & Bloor in Toronto [Photos]

Photo: Craig Patterson

It’s a story of fast fashion becoming much slower fashion — Fabricland has officially opened just off the corner of Bloor and Yonge Streets in Toronto in a retail space formerly occupied by an H&M store. Fabricland will remain in its bright new location for several years until its building and an adjacent building are demolished for a major redevelopment. 

The Fabricland store spans three levels of the former H&M space at 13-15 Bloor Street West, measuring about 15,000 square feet with a full range of items focused on sewing, quilting, knitting and crafting among other activities.  

The street level of the new store houses fabrics focused on ‘fashion’, while the upper level includes items that can be used to make home decor. The basement of the former H&M store houses items that can be used for crafts and notions. 

The store is considered to be one of the flagships for the Fabricland chain, and is testing out some new concepts such as signage that will eventually be rolled out into other Fabricland locations. Fabricland is the largest fashion fabric distributor in Canada with over 130 stores across the country. 

Click image for interactive Google Map
A view towards Fabricland, the adjacent bank building also owned by the Kimel family. The Yonge & Bloor intersection is to the left in the photo, including a new Apple store under white hoarding. Photo: Craig Patterson
Main floor escalators and signage in the new Fabricland on Bloor. Photo: Craig Patterson
Main floor fabrics, including a special range that can be used for gowns and other garments for eveningwear (Fabricland notes that some drag queens may wish to check out this area of the store for ideas and supplies). Photo: Craig Patterson
Main floor elevator entrance and various fabrics on display. Photo: Craig Patterson
Main floor Pride-related display, as well as denim and Toronto sports-themed fabrics. Photo: Craig Patterson

The store aims to attract consumers such as students in nearby post-secondary institutions studying in programs where textiles may be utilized. The retailer noted that even drag queens in the nearby Gay Village may shop the store for a range of fabrics that can be used in designs — a display of rainbow fabrics and Pride-related accessories is also on display. Some ornate fabrics in the store could be used for flowing gowns or other designs. 

Toronto’s diversity means that some patterns and ornaments, appropriate for ethnic garments, are on offer as well. On the opening day, the store was busy with shoppers who began to line up almost an hour before the store opened. 

Fabricland is waiting for a permit from the City of Toronto to install a protective covering over the glass of the upper level of the store in order to protect merchandise from sunlight. The upper level includes a display near the windows for outdoor designs and more will come, including a display with beach umbrellas. A Fabricland representative said that it took several weeks to convert the new store from the former H&M store that occupied the space for nearly 20 years

Second-floor outdoor display and foam/mattresses — Fabricland has applied for a permit to add protective UV glazing and branding over the windows. Photo: Craig Patterson
Second-floor bedding-related area for quilting and home decor at Fabricland on Bloor. Photo: Craig Patterson
Third floor home goods, including a range of fabrics for indoor and outdoor use. Photo: Craig Patterson

One of the reasons Fabricland opened on Bloor Street is its corporate ownership — the wealthy Kimel family that owns the retailer also owns the building. A proposal is in place for a massive residential tower on the site as well an adjacent building currently occupied by a bank.

The new Fabricland is steps away from an intersection that by next year will be home to a flagship Lululemon store as well as, tentatively, an Apple flagship store. A new tenant or tenants will eventually be secured for the former Nordstrom Rack space at 1 Bloor Street East, and we recently reported that The Ballroom bowling concept will replace a former McEwan grocery store in the basement of the same 1 Bloor East complex. Across the street from Fabricland is the Holt Renfrew Centre, which is home to Holt Renfrew’s main flagship store as well as a large Aritzia store and a soon-to-be-announced tenant that will occupy the main floor of the centre’s former Zara space. 

Further up the street is the Bloor Street luxury run, which is seeing a remarkable number of new luxury stores being added. Over the next few months, stores opening on Bloor Street between Bay Street and Avenue Road will include the likes of Van Cleef & Arpels, Rolex, Ferragamo, Saint Laurent, Alexander Wang, Bonpoint and others. They will join names such as Louis Vuitton, Tiffany & Co., Gucci, Hermes, Dior and others that have opened on the street over the years. 

Cutting boards and measuring tools in the basement area of Fabricland on Bloor. Photo: Craig Patterson
Yarn area on the basement level of Fabricland Bloor Street. Photo: Craig Patterson
Escalators into the basement level of the new Fabricland store. Photo: Craig Patterson
Fabricland Jingle via Youtube

Fabricland had a store nearby on Bloor Street East at the former Hudson’s Bay Centre until about 12 years ago — Dollarama now occupies the basement space. Fabricland also had a presence within the former Honest Ed’s store that operated at the corner of Bloor and Bathurst Streets until late 2016. 

The Fabricland chain was founded in 1968 as Fabricland Distributors, and its first store was at Queen and Roncesvalles in Toronto. The retailer carries a large selection of fabrics as well as sewing notions and accessories, patterns, broadcloth, flannelette, suitings, utility and cleaning cloths, arctic fleece, cottons and blends, home goods such as curtains, as well as bridal and party wear and coordinated fashion collections.