The historic building at 77 Yorkville Avenue in Toronto, currently housing a beautiful Isaia flagship store, was recently sold at a record-breaking price to an unnamed investor. Arlin Markowitz of CBRE and Kevin Gillen of real estate firm Gillen were the listing brokers representing the vendor ProWinko Canada, and Jordan Karp and Ryan Morein of Savills Canada represented the buyer. We were asked not to reveal the purchase price publicly for this article but sources tell us that it was the highest price per square foot in Canadian history.
The 3,217 square foot building housed Canadian fashion retailer Pink Tartan until 2020 — in late 2021 Italian men’s luxury brand Isaia leased the building for its Canadian flagship store. Prior to Pink Tartan’s decade-long occupancy of the building, antique retailer The Paisley Shop operated in the space.
ISAIA Toronto (Image: Daniel Green)
The 77 Yorkville Avenue building is unique. The Yorkville Avenue side of the building was built in 1867 and was originally the house of John Daniels, a constable for the village of Yorkville in the mid 1800s. A contemporary addition at the rear with an entrance on Bellair Street provides a juxtaposition in architectural styles while also expanding the space substantially from the size of the original residence.
The upper level of the Isaia flagship spans more than 1,500 square feet and includes rooms housing the brand’s range of ready-to-wear, made-to-measure clothing, leather goods, accessories and footwear as well as a tailor shop. The lower level includes a social space resembling a bar spanning about 800 square feet called the Vesuvius Lounge with windows facing onto Bellair Street.
Isaia at 77 Yorkville Avenue (Image: Daniel Green) ISAIA Toronto (Image: Daniel Green)
CBREs Arlin Markowitz said in an interview that the record-breaking price indicates confidence in retail in Toronto’s prestigious Yorkville area, which is home to numerous luxury brands. He said that more big names will be coming to Yorkville Avenue as well as Bloor Street West, which is home to luxury brand flagship stores with several more on the way later this year.
Markowitz said that he also did a deal for US-based fashion retailer John Elliott to open nearby which will “benefit the area greatly”, and said that he’s hearing rumours that another major fashion player will be opening on the street that will bring in more foot traffic to the area.
Markowitz noted that the record-breaking price per square foot for 77 Yorkville excludes buildings earmarked for redevelopment, including land assemblies for high-rise development.
On April 1, the carbon tax will be set at $65 per metric tonne. We are slowly marching towards a carbon tax of $170 per metric tonne, by 2030, which is more than double what it is today. Yet so far, not one study has looked at how the carbon tax will be impacting food affordability in Canada. Not one.
Ottawa is currently considering Bill C-234, which would offer a desperately needed carbon-tax exemption to farmers for grain-drying and barn-heating. If no election is called, the bill remains on track to pass both the House and the Senate and become law by summer. This would be welcome news for farmers who are subjected to price-taking economics. Taxing farmers more can only cost them more. Ottawa has now invested heavily in programs to help farmers adopt greener soil and energy management practices, but realizing any financial benefits from these changes will take time. And farmers need help now.
But for the rest of the food supply chain, the economic impact of the carbon tax remains a mystery. The federal carbon tax presently impacts Ontario, Manitoba, the Yukon, Alberta, Saskatchewan, and Nunavut. Starting July 1, 2023, the list of provinces under the federal carbon pricing scheme will grow to include Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador. This will only leave British Columbia, Quebec, and the Northwest Territories, which have their own federally approved provincial carbon pricing.
According to a report from the Canadian Federation of Independent Business (CFIB), more than $8 billion will be collected from small business through the carbon tax by the end of fiscal 2023, and as little as $35 million will be given back as credit in the form of programs. Many small businesses, especially family businesses, are in the food industry. In other words, much of the funding is disappearing into Ottawa’s big black public funding box and few understand what the funds collected through the carbon tax are being used for.
Again, according to a recent survey from the CFIB, 56 percent of businesses will have no other choice but to raise prices due to pressures created by the carbon tax. Some will argue that businesses need to get with the times and reduce their reliance on fossil fuels. But the funds are just not coming quickly enough to support small businesses.
In essence, Ottawa should consider helping businesses which are part of our agri-food eco-system. Bill C-234 is just a start. Food processors, artisan shops, and restaurant owners need more and better support or else, by 2030, the carbon tax will have the potential to become a much more significant driver of food inflation than climate change itself. That’s right, the policy to penalize polluters could hurt citizens more than climate change, the very thing we are all trying to mitigate.
The ‘stick’ approach exemplified by the carbon tax could be complimented by a ‘carrot’ approach, such as tax credits, a reduction in other taxes or even new grant programs with minimal red tape, which could help businesses reduce their carbon footprint.
Ottawa should be applauded for doing something about climate change. Whether we agree or not with the carbon tax, at least the government is doing something about the climate change problem. But when looking at supply chain economics, as we see the carbon tax increase over time, our own trust in food affordability hangs in the balance. We need to assess and forecast how the carbon tax will burden our food suppliers over time and evaluate how we can support food companies in their journey to a greener future while remaining profitable.
Many families are already severely impacted by food inflation and some are quick to criticize grocers for higher food prices. What many don’t realize is how our current fiscal regime is making it more difficult for many companies to keep food affordable. Without careful consideration, many families already suffering will be impacted even more by some of these environmental policies. At the very least, we need to know how significant the impact is going to be.
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.
Years ago, Kimberly Lee Minor had the idea to bring together women of colour in corporate retail at the director level and above so they could build a network of support.
“Everyone I knew were onlies or firsts, and it was lonely and difficult to navigate. I set a date for market week, reached out to everyone I knew, and waited. Finally, the night of the dinner came, and there were six of us,” says Minor, President of the Women of Color Retail Alliance (WOCRA) and CEO of Bumbershoot.
“Fast forward to 2020, and the world is turning upside down. And while so much was changing, so much was still the same. It was time to try again. It was time to make a change. So, I reached out to several trusted colleagues who had the same desire to change the trajectory for women of color in retail, many of whom were isolated or stuck in mid-level roles with no resources on how to progress. We also wanted to help retail corporations progress in sustainable ways.
Image: WOC Retail Alliance
“In September 2020, we had our first virtual “We should know each other” networking event – we exceeded capacity. After that, we had several more gatherings and introduced our “My Leadership Journey” lunch and learn series and “Straight No Chaser”, our career development pilot program.
We are ready to take our cohorts to new levels of career advancement and committed brands to new levels of social responsibility.”
In this video interview, Minor and Liza Amlani, Principal/Founder of the Retail Strategy Group and The Merchant Life and WOCRA board member, discuss the organization and the challenges women of colour still face in the retail sector.
Kimberly Lee Minor is an accomplished executive with an impeccable record of building brands and developing strategies to keep business competitive and nimble. An executive member of leading domestic and international retailers and brand organizations, Minor is currently the President and Chief Commercial Officer at Bandier, the premier retailer destination for luxury athletic and athleisure fashion, where she oversees the direction of design, multi-channel merchandising, marketing, production, sourcing, and human resources.
Kimberly Lee Minor
Minor also serves as the CEO for Bumbershoot, a boutique consulting firm that provides C-suite leadership, cultural and market insights for inclusive, equitable, and diverse representation across brand, content, product, and customer experience.
A Philadelphia native, Minor attended Temple University for her undergraduate studies. Upon graduating, she embarked on a 25+ year career holding major brand leadership positions at global retail and fashion organizations including Macys, LBrands, Footlocker, and Iconix.
As a fashion and retail thought leader and advocate for advancing women and people of color in the workplace, Minor serves as the founder and president of WOCRA (Women of Color Retail Alliance), supporting the careers of women of color in the retail industry through hard and soft skills training, leadership development and networking opportunities and sits on several board of director committees including BlueConic and Together Digital.
Empowering as a leader and mentor, Minor is consistently challenging team members to surpass personal career objectives and have a positive impact on organizations.
Kimberly holds a Bachelor of Arts degree from Temple University in Philadelphia, PA, and Executive Certificates in Leadership and Management from The Wharton School at the University of Pennsylvania and Inclusive Organizational Excellence from Stanford University Graduate School of Business.
Liza Amlani Bio
Liza is a retail industry veteran and the go to expert in retail merchandising, product creation, and accelerating speed to market.
Liza Amlani
Liza Amlani is a 25 year retail industry veteran and works with global retailers, brands and retail tech companies to help them achieve dramatic business growth. Liza has worked with familiar brands including Holt Renfrew, Ralph Lauren Europe and Canada, Club Monaco, Nike, Walmart.
Liza founded Retail Strategy Group in 2020. Her thought leadership is showcased in our monthly newsletter, The Merchant Life. Founders, VP’s and C-Suite executives subscribe to gain valuable insights and discover best practices. Liza is also a Talkdesk Retail Industry Advisory Board member.Liza is a respected voice on a variety of pertinent topics and is cited in Forbes, RetailWire, Retail Insider, Bloomberg, Chain Store Age, Wall Street Journal, The New York Times, Sourcing Journal and Footwear News.
Liza has been invited to speak at retail conferences across North America and often guest lectures at top Business schools across the country. She also brings a wealth of global insight to her work given the number of stamps in her passport and countries in which she has resided – Liza has moved 29 times in her life from Canada to the UK to Africa and many places in between.
Liza has recently been named one of RETHINK Retail’s Top Influencer of 2022 and you can find her on all social platforms under @themerchantlife.
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.
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6 & Sundry at Toronto Pearson Terminal 3 (Image: Toronto Pearson)
Twenty years ago airports were expanding duty free shopping and today, Larry Leung, Customer Experience Leader, says he has seen it evolve and discusses where retail in airports could go next.
“We have seen an evolution of store formats at the airport, and now many airports are now thinking about bringing in more local brands to have more of an elevated experience inside the airport instead of offering the same retailers that people can access in the city,” says Leung.
“Airports should have more local and elevated brand experiences to sell”
Collection, Lole and The Source at YYZ Toronto Pearson (Image: Craig Patterson)
Leung said Canadian airports should bring more local experiences to passengers, this will support local businesses, bring awareness to travellers, provide unique retail options, and it is fun for tourist and local travellers to see local product offerings instead of the same larger retailers.
Larry Leung
Looking at the Toronto Pearson Airport, they currently have retailers such as Chanel, Bvlgari, Gucci, Michael Kors, and the airport even has Genesis, a car retailer where you can book a test drive – but what local retailers are they supporting?
Bringing more local brands into airports that represent the city will bring an elevated experience as it motivates everyone to shop as it is unique and supports local businesses. Airports have millions of travellers every year, so bringing local brands would also help their success as they would be able to expand their customer reach.
Extending Shopping into Arrivals
Image: torontopearson.com
“Most of the retail is in the department hall, but we don’t really focus on arrivals and I think from a retail shopping experience perspective, more can be done on the arrival side because people are in fact stuck waiting for their baggage, waiting for an Uber or bus, or even waiting for the train – all passengers are waiting.
Leung said airport shopping is only seen as inside the airport, but it does not reflect a traveler’s journey as traveling is going from one destination to another and both sides should offer experiences, something “retailers need to start thinking about.”
“There is actually a lot more to think about when you arrive. In the Toronto Pearson Airport, the luggage area is really dark and gloomy, it is not a fun place where it promotes positivity. I rather have some art of some of the most major iconic landmarks in Toronto and then that is already planting seeds of passengers waiting to go see places. Ideally, it would be a great opportunity to buy things at the airport arrivals for a lower price.”
Selling Experiences
“Traditionally, when we think about brands, we think about only retail brands such as apparel or accessories but I think experience is also a potential brand.”
By selling experiences, Leung is talking about promoting tourism in the arrivals. Right now, tourism in Toronto is not really in the airport so Leung said when you are waiting for your luggage, you can’t go to buy tickets, you can’t buy experiences, and you don’t even know anything about Toronto when you land, and brands need to start thinking of how they can start selling experiences. Leung said this would be a great next step for retailers to be in arrivals as they could motivate travellers to shop while waiting at the airport, to get excited about Toronto, and could be a great opportunity to sell tickets to things like the CN Tower, shows, or other tourism attractions.
New Pop-Up Formats and The Use of Vending Machines
YYZ, LEGO® Pilot Kiosk in T3 near gate B40 (Image: Toronto Pearson)
“There are more pop-ups which are going to drive interest because I walk through the airport quite often and I see the same thing over and over again, and then you don’t really have a reason why you need to go check things out, especially for business travelers. If passengers see the same things and don’t see any changes, they are not motivated to look further.”
Leung said pop-ups allow retailers to have flexibility in airports while creating a new experience for travelers. For instance, business travelers would see the same thing at airports, but what if retailers started making pop-up locations for special days.
“Business travelers still have to shop and I don’t think a lot of retailers cater to them because they think they don’t have time, but they still have to buy Valentine’s Day gifts, birthday gifts, and Christmas gifts. If they spend so much time at the airport, why not inspire them to buy those things directly at the airport?”
Leung has also seen more use of vending machines in airports such as Best Buy, The Source, and Cake Boss. These are great for airports as they don’t take up a lot of space, it is easy and accessible to passengers and Leung says he can see Canada using vending machines for three different categories in airports: technology, food, and for phone card plans.
Best Buy at YVR Airport, in domestic terminal by WestJet. (Image: Lee Rivett)Cake Boss at Toronto Pearson (Image: Craig Patterson)
A lot of travelers forget something at home, such as headphones, so why not use vending machines? Leung has also seen food vending machines serving salads, sandwiches, and the Cake Boss; however, also says that Canadian vending machines are a little behind.
“In Japan for example, vending machines can serve you both hot and cold food at the same time with temperature controlled packaging. You are able to buy a hot tea or a cold iced tea from the same vending machine. If you want something hot, you would just pull the little strip on the packaging and then the heating element would be activated, so I see this technology coming into Canada.”
Another idea Leung sees for retailers using vending machines in airports is to coordinate the machine with the destination of the plane. For instance, if there is a plane taking off in winter to a warmer country, then retailers should have a vending machine with items passengers might have forgotten such as bathing suits, phone cards, sunglasses, or accessories.
“There is definitely an opportunity in Canada airports for retailers because traditionally one of the biggest earners would be the parking lot but now, more people are taking Uber or public transit to get to airports. I think the best thing retailers can do is to understand their customers, what their needs are, and where passengers are going and coming from. Airports and retailers need to start thinking about the layout or retail shopping and how they can evolve retail formats, such as the pop-ups, to motivate passengers to shop and to make it easier during their travel.”
As Canadians came out of the holiday shopping season, they continued to spend this year with the foodservice industry on fire.
Mastercard’s January SpendingPulse report, which measures in-store and online retail sales across all forms of payment, found that Canadian retail sales (excluding Automotive) increased +0.1 per cent year over year, e-commerce sales fell -11.1 per cent and In-Store sales were up +3.5 per cent.
The restaurant sector showed strength as Canadians continue to seek entertainment outside of the home, traveling to dinners out, which is reflected by an increase in Restaurants +55 per cent year over year and Fuel & Convenience +11.2 per cent.
Earls on King Street in Toronto (Image: Dustin Fuhs)
Mastercard said this remains consistent with a broader shift in consumer spending towards experiential activities.
“Retail sales in Canada are stabilizing as consumers continue to spend on passion areas like travel, live entertainment, dining and other experiential activities,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated.
“I think what you’re seeing is a consumer that is being somewhat cautious. They’re still excited about getting out and doing experiences. They’re still buying. They’re changing what they’re buying. Even apparel had a good performance but it was likely more promotional clearing out. So it was a heavier promotional environment.
“Restaurants are killing it because people want to get out. They’ve already bought all the things for their house. So during the pandemic when they were cooped up you saw a really, really strong performance in the categories of electronics, home improvement, home furnishing. And those are now the categories that are weak. It’s saying that the consumer bought the things that they wanted during the pandemic for the stay-at-home categories. They don’t need more of those. They’ve shifted away from that. They’re buying freshness in apparel. They’re still buying that because they’re going out to restaurants and they’re going to events.”
Image: Mastercard SpendingPulse
Some findings of the report include:
As Canadians are once again able to travel, consumer spending slowed in Home Improvements (-11.9 year over year) and Home Furniture & Furnishings (-6.5 per cent) as experiential spending is prioritized over home enhancement projects;
As retailers prepare to launch Spring collections, many offered extended sales events and discounts to clear out remaining winter inventory driving up Apparel (+13.7 per cent) and Jewelry & Leather Goods (+13.6 per cent).
“The current uncertain economic environment continues to drive spending decisions amongst Canadians,” said Michelle Meyer, Chief Economist, North America, Mastercard. “Consumers have become more selective with discretionary purchases transitioning their focus from larger buys in sectors such as Electronics, to smaller buys driving up sales in Apparel, for instance, along with experiences.”
Queen Street W at John Street (Image: Dustin Fuhs)
Sadove said the Canadian consumer is now feeling some of the pressures. Inflation is real. It’s eating up a lot of money especially for lower income people. Interest rates continue to be high.
“It’s going to be a slowing environment but it’s going to be an environment where consumers are focused on value. The players that provide value will do well and that’s whether to the apparel space or in other spaces,” said Sadove.
“You’ve had such an explosive growth in experiences with travel and the restaurant numbers are stunningly high. At some point, it’s going to have to revert back in terms of growth but remember the restaurants are just playing catch up.
“If you look at 2023 versus 2020, they’re all growing about the same. They’re at 20 some per cent versus 2020. You’ve got this reversion to the norm. I would expect a moderation across the board where you’ve seen these major swings in one direction or the other and now you are reverting back to the norm and that norm you’re starting to see in the January numbers where it’s a slowing overall retail growth.”
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.
Former H&M at 15 Bloor Street (Image: Craig Patterson)
Retail Insider has learned that retailer Fabricland has secured a lease for the former H&M storefront at 15 Bloor Street West in Toronto’s prestigious Bloor-Yorkville area. The temporary store opens mid-April and will shut when the building demolished for redevelopment — the owner of Fabricland also owns the site.
The new Fabricland store will occupy multiple levels in the 20,000 square foot building which was recently being offered for lease by JLL. The dramatic three-level space is located just off the iconic corner of Yonge and Bloor streets and is next to The One at 1 Bloor Street West, which next year will tentatively be home to an Apple flagship store. Condominium apartment units for sale at The One, which will be finished next year, are currently on the market between about $2 million and $32 million — and an Andaz hotel will also be below it. The door into the luxury building will be next to the new Fabricland as per the photo above.
Each floor at 15 Bloor spans about 5,000 square feet, with 13 foot ceiling heights. H&M opened there in 2004 and was one of the first in Canada at the time. Several years ago, Scotiabank renovated and relocated within the adjacent 19 Bloor Street West and retail space next to it has not yet been leased despite best efforts.
Click image for interactive Google MapFormer H&M at 15 Bloor Street (Image: Dustin Fuhs)
Fabricland is expected to draw traffic to the street, including design students at Toronto Metropolitan University as well as students in other programs.
The terms of the Fabricland lease have not yet been revealed and it’s unknown how long the store will remain, given that 15 Bloor recently saw a tower proposal for the site as well as an adjacent site.
CoStar reported on February 1 of this year that the H&M building as well as the adjacent building at the corner of Balmuto Street, housing a Scotiabank, was under contract to an unnamed buyer for an undisclosed price. Earlier this month, Urban Toronto reported that a development application was being brought by Reserve Properties and Westdale Properties for the combined site with a proposal for a 94-storey mixed use tower housing a whopping 1,262 residential condominium units. The 990 foot tall tower would include less than 3,000 square feet of retail space at its base, a far cry from what’s there now. The proposed density for the site could break a Canadian record if it’s approved as proposed — and many are saying that it won’t be approved with the application requiring revisions, which means Fabricland could be on Bloor Street for several years depending on how things go. Given that the Kimel family owns both Westdale Properties and Fabricland, terms of any lease extensions are expected to be favourable if rent is being paid at all.
Fabricland will be located directly across the street from the Holt Renfrew Centre, which is home to a large Holt Renfrew flagship store as well as other retailers including a large Aritzia store facing Bloor Street. A large Lululemon flagship store is under construction at the northwest corner of Bloor and Yonge Streets and a Nordstrom Rack store diagonally across from it will eventually see a new tenant following Nordstrom’s exit from Canada. Across Balmuto Street is the Manulife Centre which is home to Eataly and numerous retailers such as Birks. A few hundred feet west is the main luxury run of Bloor Street which includes big-name retailers such as Louis Vuitton, Dior, Prada, Cartier, Gucci, Tiffany & Co. and others. Several luxury brands are currently building new stores nearby, including Saint Laurent, Ferragamo, Rolex, Van Cleef & Arpels, and Alexander Wang.
Former Fabricland at Honest Ed’s (Image: Carol Gleason-Rechner via Pinterest)
This won’t be the first time that Fabricland has had a store on Bloor Street. Until about 12 years ago, the retailer operated in a basement space at the Hudson’s Bay Centre which is now occupied by a Dollarama store. The Hudson’s Bay store at the centre shut in May of 2022. Fabricland also had a presence in the former Honest Ed’s store at Bloor and Bathurst Streets which shut in 2016.
Fabricland was founded in 1968 as Fabricland Distributors, and its first store was at Queen and Roncesvalles. 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. It has over 130 stores in Canada and is the largest fashion fabric distributor in the country.
We’ll follow up on this story next month when Fabricland opens its Bloor Street location.
Zellers at Hudson's Bay in Sunridge Mall, Calgary, AB (Image: Mario Toneguzzi)
The timing for the re-introduction of retailer Zellers in the Canadian retail landscape couldn’t be better, says Madeleine Nicholls, Senior Managing Director, Vancouver Brokerage and National Retail Brokerage Lead for Canada for Colliers.
Madeleine Nicholls
As Zellers opened a number of its first locations within Hudson’s Bay in Ontario and Alberta on Thursday, there was a buzz in the air about something new, albeit an old brand, opening for business at a time when other retailers such as Nordstrom are closing their doors in Canada.
“I’m pretty excited about it,” said Nicholls. “I think it makes sense on a number of levels. There was so much goodwill I think associated with that brand – nostalgia, recognition. I love that the Hudson’s Bay is the oldest retailer in Canada from 1670. I just love that and the fact they’re bringing back a concept that resonates with so many Canadians.
“I think the timing is excellent. I don’t know that they could have necessarily foreseen last year when they made the announcement exactly what would be happening in the spring of this year but their timing is excellent.
“It’s the combination of a few things. We’ve still got high inflation. Consumers are still feeling the brunt of all those interest rate hikes if they have mortgages. So people are feeling the pinch in the pocketbook all over the place. And this is a brand (Zellers) that they have said is going to lead with design and value. So that’s a wonderful thing. That’s exactly what Canadians are looking for. Canadians are a middling bunch. Some will buy the luxury. For sure, there is a market and a demand for that. But by and large if you look across Canada or at Canadians, and you look at that sweet spot of consumer, call it 25 to 55 years old with families and kids, they are looking for value buy especially now.”
Zellers at Hudson’s Bay in Sunridge Mall, Calgary, AB (Image: Mario Toneguzzi)
Zellers at Hudson’s Bay in Sunridge Mall, Calgary, AB (Image: Mario Toneguzzi)
Nicholls said she loves the idea that Zellers is being reintroduced as a store-in-store concept. It could be a test run for the brand for something bigger in the future.
“I think it makes a lot of sense because they can execute very quickly on it. The other thing that’s great is they’re launching zellers.ca, an ecommerce platform at the same time, and they’ve already got the Bay ecommerce and all that so probably a very natural kind of extension or add on. I think they’ll be very successful at that,” she said, adding that Zellers is a recession-proof brand.
“And there’s this other nod. They’re going to be able to supply all Canadians in all markets. I love that that’s also a nod to the nostalgia. The original Hudson’s Bay fur trappers have been around since 1670 that were trading in the most remote areas of Canada and I hope Zellers can also provide great products, design-led value priced to the northern regions of Canada. I think it’s a great story.”
Zellers at Hudson’s Bay White Oaks Mall (Image: White Oaks Mall)
Zellers at Hudson’s Bay White Oaks Mall (Image: White Oaks Mall)
Zellers at Hudson’s Bay White Oaks Mall (Image: White Oaks Mall)
In a LinkedIn post, Bruce Winder, author of RETAIL Before, During & After COVID-19 and President of Bruce Winder Retail, said: “Checked out the new Zellers store format Thursday at 7am . . . I was impressed with the vibe as the store reminds me of a combo of IKEA , Miniso and Joe Fresh. Biggest challenge will be getting enough traffic post launch to add material sales and earnings to Hudson’s Bay Company.”
The Ontario and Alberta Zellers within Hudson’s Bay locations are:
Ontario
Erin Mills Town Centre, Mississauga
Burlington Mall, Burlington
White Oaks Mall, London
Scarborough Town Centre, Scarborough
Pen Centre Shopping Plaza, St. Catharines
Cambridge Centre, Cambridge
Rideau Centre, Ottawa
St. Laurent Centre, Ottawa
Cataraqui Town Centre, Kingston
Alberta
Kingsway Garden Mall, Edmonton
Medicine Hat Mall, Medicine Hat
Sunridge Mall, Calgary
Over the first opening days, the Zellers Diner on Wheels will visit different store locations.
Zellers Diner Food Truck at Hudson’s Bay in Sunridge Mall, Calgary, AB (Image: Mario Toneguzzi)Zellers at Hudson’s Bay in Sunridge Mall, Calgary, AB (Image: Mario Toneguzzi)
The retailer has plans to open 25 stores within existing Hudson’s Bay locations. Zellers as Canadians knew it ceased to exist in March of 2013 after the Hudson’s Bay Company sold most of the store leases to Target and shuttered a majority of the stores — the remaining two Zellers-branded stores shut in 2020.
The retail sector in Canada has been hit hard with bad news recently with the shuttering of stores such as Nordstrom, Nordstrom Rack, Bed Bath & Beyond and Buy Buy Baby. But at the same time, new concepts have entered the marketplace as well as companies expanding.
Nicholls has looked at how many retailers have opened recently versus how many have closed. And the results are surprising.
“It’s astonishing because it’s about three times more opening than closures yet the mind seems to gravitate towards these closures and these closures stick in the mind and they become the talking point. But people forget, hang on a second, there’s this whole new wave of retailers that have survived and thrived,” she said.
Nordstrom Clearance at CF Toronto Eaton Centre (Image provided)
“We tracked 624 news articles since March 2020. 94 retailers said they were closing, 22 said they were at risk, 501 said they were growing, and seven said they were keeping their spaces closed.
“It tells you that people’s minds stick on the negative and not on the positive. The good is completely lost. There’s been a period of change of course – necessity-driven change because retailers did have to adapt to e-commerce when the physical stores had to close. But that has really done well for them because now that the physical stores are open, you have the e-commerce platform, omnichannel. That’s a winning formula.”
Nicholls said she took a walk to the flagship Nordstrom store in Vancouver the other day when the retailer’s liquidation sale began. The place was packed. She counted close to 400 people on the ground floor.
“And you know why? Because Canadians being a value-loving bunch, could smell blood in the water and they’re looking for the deals,” she said. “I just thought how interesting. They announced they’re leaving and they’re the busiest they’ve ever been.”
Benkei Hime at CF Markville Mall (Image: Cadillac Fairview)
The unique fashion, youth culture and bubble tea concept, Benkei Hime, which launched its first location in Toronto about a year ago, has aggressive plans to build the brand to other markets in the country.
The brand has about 30 stores in Asia with two in Canada – at the CF Toronto Eaton Centre and CF Markville Mall in Markham, Ontario.
Aurora describes Benkei Hime as a fashion label founded in Seoul, Shanghai and Toronto. “The first of its kind that pushes the boundaries between tea, fashion and youth culture. The BH brand includes Bubble tea, youth culture, streetwear apparel, accessories and sports equipment.”
Benkei Hime at CF Toronto Eaton Centre (Image: Benkei Hime)Benkei Hime at CF Toronto Eaton Centre (Image: Benkei Hime)
Berkowitz said stores can be anywhere from 800 to 1,400 square feet. Ideally, the brand is looking for a high traffic location that is in the vicinity of other tenants with a similar customer base.
“They’re looking primarily in major enclosed shopping centres,” he said. “Definitely I would say that they are appealing to a younger shopper in their teens to late 20s. It’s a primary customer.
“It is really a mix of an urban lifestyle brand. It includes a beverage counter with various teas and bubble teas but also has all kinds of branded items from hoodies to key chains to surf boards.
“The primary immediate need would be to add about another four locations in the GTA (Greater Toronto Area) and from there we are looking Canada wide and also have interest in the United States for future growth as well.”
Benkei Hime at CF Toronto Eaton Centre (Image: Dustin Fuhs)Image: Benkei HimeImage: Benkei Hime
Berkowitz said the brand would like to see another four to five locations open this year and then to continue to roll out across Canada at least another five to 10 for next year.
“I think what’s really interesting from a landlord perspective is that they put a tremendous effort into the store design. Each store has a consistent theme but it is customized for the mall and the market that it’s in. The whole way that they see the store is an extension of the brand and so they try to make the experience of visiting the store something worthwhile that will help drive the traffic so that they’re more than just the product they sell. It’s the experience a customer walks into.”
Jason Wang, Owner of Benkei Hime, said the key is providing a place where customers can have a one-of-a-kind experience.
With a lot of the restructuring that is taking place in the retail landscape these days, Benkei Hime sees some great real estate opportunities to expand in the market at decent prices.
“I think our model works in Canada and we want to look for more opportunities,” said Wang.
Benkei Hime at CF Toronto Eaton Centre (Image: Dustin Fuhs)Benkei Hime at CF Toronto Eaton Centre (Image: Dustin Fuhs)
“It’s about lifestyle. It’s really a lifestyle brand and not just a traditional beverage place. And it’s focusing on a young demographic. In the summer we’ll have about 40 to 50 per cent of revenue coming from retail – from streetwear and merchandise. We use beverages to get their attention and when they come to the store they see all these (items) – things that young people use in their daily lives – that makes us a unique place in the mall.”
In a previous Retail Insider story, Wang said: “We consider ourselves as a fashion label, not really a bubble tea store. The idea is to push the boundary between art as well as beverage. The beverage is more tea, but some coffee, fashion and youth culture. It’s a brand for young people.”
In Asia, the brand is known for trendy clothes, Instagram-worthy beverage pictures and it’s a platform for young people to enjoy life and to express themselves.
