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Alo Yoga to Enter New Markets and Open Several More Stores in Canada

Alo Yoga at Yorkdale (Image: Dustin Fuhs)

Los Angeles-based Alo Yoga will be opening more stores in Canada this year after entering the country with two stores in Toronto. The Toronto market will soon become home to four Alo Yoga locations while cities such as Edmonton and Calgary are up next for stores as well. 

Construction is now underway for a new Alo Yoga store at CF Toronto Eaton Centre in Toronto in a 6,100 square foot retail space recently vacated by Victoria’s Secret Pink. The store will be located on Level 2 of the shopping centre in a strategic location that has exposure from other levels in the mall. Remarkably, Alo Yoga will be located directly below competitor Lululemon, as per the photos below. A source with the company told Retail Insider that a location at CF Sherway Gardens is also on the way for later this year.

Sources in the know told Retail Insider that Alo Yoga will open a 6,100 square foot store at West Edmonton Mall in Edmonton. It will replace three smaller retailers next to Canada Goose. The retailers that Alo Yoga will replace include Untuckit, Call it Spring and AB Co. The three tenants in the units it’s replacing are all being relocated within the mall.

Alo Yoga Construction Hoarding at CF Toronto Eaton Centre (Image: Dustin Fuhs)
Alo Yoga Construction Hoarding at CF Toronto Eaton Centre (Image: Dustin Fuhs)

In Calgary, Alo Yoga is hiring for positions for a store at CF Chinook Centre. It’s not yet known where in the mall it will be located, and there are a handful of options in terms of guesses.

Given the extensiveness of the expansion, it’s expected that Alo Yoga will look to open at least one larger store in the Vancouver market if not more, and brokers have said that downtown Montreal is also a target for Alo Yoga on Ste-Catherine Street West. It’s not known if larger cities such as Ottawa might be in line for an Alo Yoga location and if it were the case, CF Rideau Centre would be a best guess given where other stores are opening in Canadian urban centres.

Alo Yoga will particularly compete with Vancouver-based Lululemon which has gained significant market share for athleisure in Canada with almost 70 stores. Both brands are known for quality and offer similarly-priced goods. The West Edmonton Mall Lululemon store is among the top in the chain and it could see a hit to sales if consumers find favour with Alo Yoga. 

Alo Yoga at Bloor Street in Toronto (Image: Dustin Fuhs)
Alo Yoga at Yorkdale (Image: Dustin Fuhs)

In an exclusive article in WWD early last year, Alo co-founder and CEO Danny Harris said that the company is looking to open about a “half a dozen” more stores including Toronto. That expansion appears to be more rapid now given how many locations appear to be opening in Canada alone. 

As well, early on Alo Yoga chose street-front locations for its stores in the United States, though that strategy has clearly grown to include a significant presence in enclosed shopping centres. Canada is expected to have at least five Alo Yoga locations by the end of the year and all but one will be in major malls.  

Alo Yoga was founded in Los Angeles in 2007 by entrepreneurs Danny Harris and Marco Degeorge who continue to own and bankroll the business. The company says that it makes “the most technologically advanced yoga clothing in the world” with a “studio-to-street” ethos. Home workouts are possible with Alo Moves, an at-home fitness concept with a $30 monthly membership for unlimited yoga, fitness and meditation.

Last Days of Victoria’s Secret Pink at CF Toronto Eaton Centre

Podcast [Interview] Sonya Gill Discusses Ethnically Diverse Indie Brand Global Fashion/Beauty eCom Marketplace THE LNK

Podcast [Interview] Sonia Gill Discusses Ethnically Diverse Indie Brand Global Fashion/Beauty eCom Marketplace THE LNK

Craig Patterson, Founder and Publisher of Retail Insider Media, sits down with Sonya Gill, founder of the world’s first global fashion/beauty eCom marketplace to only represent ethnically diverse indie brands called THE LNK.

Gill explains how the innovative marketplace came about and how global indie brands are able to get into the Canadian market through online channels. Sustainability plays a big role and the future looks bright for the rapidly growing platform.

The Interview Series podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players. Also check out our The Weekly podcast where Craig and Lee discuss popular content published on Retail Insider which is part of the The Retail Insider Podcast Network.

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Background Music Credit: Hard Boiled Kevin MacLeod (incompetech.com). Licensed under Creative Commons: By Attribution 3.0 License. http://creativecommons.org/licenses/by/3.0/

Hakim Optical Store at Prominent Bloor-Bay Corner in Toronto Shuts Due to Non-Payment of Rent

66 Bloor Street West/1200 Bay Street in Toronto. Photo: Craig Patterson

The Hakim Optical store at the northwest corner of Bloor and Bay Streets in Toronto has shut due to non-payment of rent. The store opened at 66 Bloor Street West during the pandemic and some retailers nearby were quietly unhappy with its presence, given the prominent location along a retail strip formerly known as the “Mink Mile”. 

Hakim Optical opened its ‘luxury flagship store’ in the summer of 2020 as retail was opening up following pandemic lockdowns. The optical retailer opened in part of the space formerly occupied by prestigious and historic Davids Footwear which closed in 2019 after the retailer was put into bankruptcy. 

A notice on the door of the Bloor Street Hakim Optical says, “The Premises have been re-entered and the Lease has been terminated by the Landlord for default in the payment of rent. Particulars of the default have been provided to you in earlier correspondence.” 

No numbers were provided in the notice in terms of the amount of outstanding debts. The notice goes on to note that the landlord is demanding outstanding rents as well as future rents and damages. ProWinko Canada owns the 1200 Bay Street building where Hakim Optical was a tenant. 

Click image for interactive Google Map
Notice on the door of the former Hakim Optical at 66 Bloor St. W. in Toronto. Photo: Craig Patterson
Second page of the notice on the door of the former Hakim Optical at 66 Bloor St. W. in Toronto. Photo: Craig Patterson

The exterior of the Hakim Optical store is in a bit of a state of disrepair, and the sidewalks around it appear untidy. It’s in contrast to other retailers nearby, including some of the world’s top luxury brands. 

Some nearby retailers had told Retail Insider that they were unhappy with Hakim Optical’s occupancy of the former Davids Footwear space. The pandemic proved challenging for the stretch of Bloor Street West between Yonge Street and Avenue Road that for decades was known as the “Mink Mile”. Vacancies prevailed and for a time, there was worry that the street would lose its cache (nothing could be further from the truth as several luxury brands prepare to open flagships in/near The Colonnade this year). 

Hakim Optical did only minor renovations to the former Davids space, and the display windows of the optical store have been neglected with rips and tape marks on the store’s over-the-window branding. More than one retailer said that they got the impression that very little investment was made in the new store, and that it was “bringing down the street”. Some retailers had said that they hoped that Hakim’s lease was temporary, and that a marquee tenant could be found for the prominent corner which is considered to be one of the most important in the country in terms of retail. 

Securing a marquee tenant for the corner could become a challenge, it should be noted, as plans are proposed to demolish the building where Hakim Optical is in to construct a very tall mixed-use tower. The rest of the adjacent block, including the current 80 Bloor Street West office tower and the Harry Rosen building at 82 Bloor Street West, will be eventually demolished for a 72-storey mixed use tower with an absurd number of small condominium units that will be contained within. 

Rips on branding on the windows of the former Hakim Optical store at 66 Bloor St. W. in Toronto. Photo: Craig Patterson
Unsightly tape over on branding on the windows of the former Hakim Optical store at 66 Bloor St. W. in Toronto. Photo: Craig Patterson
More unsightly tape over on branding on the windows of the former Hakim Optical store at 66 Bloor St. W. in Toronto. Photo: Craig Patterson

Plans are also in place to demolish a row of buildings across the street for another major tower proposal at 83-95A Bloor Street West. Construction will take years and will disrupt pedestrian traffic between the eastern side of the Bloor street “Mink Mile” which includes Holt Renfrew and the Manulife Centre, and the western part which is home to large luxury brand flagship stores. 

Customers of the Bloor Street Hakim Optical store won’t have to go far to visit a new location — there are two Hakim Optical stores a few blocks south on Bay Street, and some have been scratching their heads as to why there’s such a high density of locations for the retailer. 

Hakim optical was founded by Karim Hakimi in 1967 and is the largest privately owned optical chain in Canada. The company has over 160 stores and 120 one-hour factory outlets across the country in Ontario, Nova Scotia, New Brunswick, Manitoba, Saskatchewan, Alberta, and British Columbia. The company’s slogan “Your Eyes Can Have it All at Hakim Optical” since 2003 had been named by Huffington Post Canada as one of Canada’s most memorable jingles, and is still used. The company says on its website that it’s sold more than 40 million pairs of eye glasses since its founding. 

We’ll report back when a new tenant is secured for Hakim Optical’s Bloor Street space, or anything else related that is newsworthy. 

Image: Hakim Optical

Club Pilates Launches Canadian Expansion Following Pandemic Slowdown [Interview]

Image: Club Pilates Marda Loop in Calgary, AB

Like all fitness clubs in the past two years, Club Pilates was rocked by the COVID-19 pandemic with the closure of clubs due to health and safety protocols and restrictions.

Now, the brand is back on track and in expansion mode.

Club Pilates currently has 826 locations internationally with 21 in Canada.

Mike Gray, President of Club Pilates, based in Irvine, California, said the brand has another about 35 still in development in Canada.

Mike Gray

“Our Vancouver market is not necessarily sold out. There’s a lot of development still happening in that market. Calgary, Toronto are really kind of the two areas that have lots of opportunity. When you look at the growth aspect, Canada is really unique to how diverse it is and how spread out it is,” he said.

“For us, it’s really finding the right partners and bringing them into the brand and then finding the right demographics in the area to grow and I think it’s really limitless. Our Canada studios have opened stronger in most cases than our domestic studios have here in the States. It’s eye opening.”

Image: Club Pilates

Studios range between 1,800 to 2,100 square feet. Real estate that is attractive to the brand is situated in areas with a strong anchor like a grocery store to drive traffic. Demographics in the area are also important. The brand’s core consumer is 35 to 65 years old and 98 per cent of its consumers are female. Average household income and traffic patterns in the area are also key factors in where the company opens locations.

The company originally began in 2007 in San Diego, California and in 2016 the brand started franchising.

“We had some exceptional growth right away,” he said.

“One of the great things about the brand is that it’s not new. Pilates itself has been around for over 100 years. Originally it was founded to help people get up on their feet. Joseph Pilates founded it back in the day and his goal was to get people, primarily soldiers, back healthy again.

“Now with COVID and everything else, people have a new sense of understanding in what the importance of physical activity is and at the same time they have the understanding that as more gyms open they tend to have more injuries and they tend to fall back into our hands.

“It truly is for everybody. All ages, all shapes, sizes. And that’s the exciting part that kind of separates our modality versus anywhere else out there which is nice. Our ability of consistently opening in smaller footprints and providing top-notch classes with certified instructors is also another great aspect too.”

Club Pilates Waterloo

Gray said the company experienced some really great growth in 2018 and 2019.

“We were opening studios and we were on the upward trajectory and then obviously 2020 was a challenging year for everybody in the world. We went from having 586 locations open to closing them all down and then based off the laws and restrictions we had to find a way to kind of get things going,” he said.

“So what it really did is it allowed us to get more nimble and more resilient in our process that we were doing and allow us to really work with the partners and they started to get more engaged into the process more so than ever.

“We started opening studios. We started pivoting in the process. So in 2020 we pivoted to a virtual element. Then we went from virtual to private training, outdoor classes, really taking it out of the studio and into the parking lot, setting up tents and getting classes going.

“Fast forward to where we are today where we’ve exceeded any target we ever thought in our original planning. Our studios are stronger now than they’ve ever been. We’ve hit new targets and set new records and we consistently do it month over month. Our growth aspect is just tremendous but also the success of the studios and the quality of the workout we’re giving in the communities is amazing.”

Image: Club Pilates

Gray said the company’s partners have gotten more sound in understanding where to spend money and managing the business. It also has a better understanding of consumer needs.

“The other part too is the belief factor how well and how good we are as a brand and company is forthcoming now in the aspect that people not only see it but believe it and the community as far as the name has grown tremendously,” he said.

Don Gregor, of Aurora Realty Consultants, is helping the brand with its expansion plans in Canada.

Club Pilates is part of the Xponential Fitness company, the largest fitness franchise group in boutique fitness.

“For our consumers who can’t make it to the studio every day we’ve had a strong emergence of our virtual platform with XPLUS and then we’ve launched domestically and internationally our XPASS which allows them to use Xponential (fitness locations).”

WWF Championship Belt Finds A New Home In Hitman’s Bar [Interview with Bret Hart]

Bret Hart at the Opening of Hitman's Bar in Calgary (Image: Mario Toneguzzi)

Bret ‘Hitman’ Hart, one of the greatest and most famous wrestlers ever in the world, has officially launched a new dining/bar establishment in Calgary named after him.

Hitman’s Bar is located in Cowboys Casino and Dance Hall beside Calgary Stampede Park.

The one-of-a-kind venue pays homage to the local hero who was a wrestling legend for years. His motto was also legendary: “The best there is. The best there was. The best there ever will be.”

Hitman’s Bar in Calgary (Image: Mario Toneguzzi)
Image: Hitman’s Bar

Hart officially opened the establishment with the presentation of his actual WWF Championship belt which has found a new home in Hitman’s Bar.

On October 12, 1992, in Saskatoon, Saskatchewan, Canadian history was made as Hart defeated Ric Flair and won his first ever WWF Championship.

“This moment 30 years ago was the culmination of all the hard work and sacrifice made since I first entered WWF in 1984. Winning the WWF title from Rick Flair in Saskatoon and holding that belt up perched on the second rope looking at the faces of my fans from long ago was the single greatest moment of my career. The moment it happened, I knew no one could ever take it away or deny me that beautiful moment in time,” said Hart.

Hitman’s Bar in Calgary (Image: Mario Toneguzzi)

This video highlights the official opening of the establishment with Hart and his championship belt.

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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Bed Bath & Beyond to Leave Hundreds of Thousands of Square Feet of Vacant Retail Space with Canadian Exit

Bed Bath & Beyond at South Edmonton Common (Image: South Edmonton Common)

US-based retailer Bed Bath & Beyond will be exiting its Canadian operations and closing all stores following court filings last week. A significant amount of retail space will be left vacant across the country with the shuttering of 54 Bed Bath & Beyond stores as well as 11 of the company’s buybuy BABY locations. 

This follows turmoil for its US parent company — last week Bed Bath & Beyond’s US division managed to raise cash to stave off a bankruptcy. Canada isn’t so lucky with the Canadian division being declared insolvent. Alvarez & Marsal will help wind down the Canadian store operations in the coming weeks which is expected to include clearance sales prior to stores shutting for good.  

As of this month, Bed Bath & Beyond had almost 390 full-time Canadian employees and 1,038 part-time workers according to the court filing. 

Photo: Bed Bath & Beyond
Photo: Bed Bath & Beyond

The Canadian arm, Bed Bath & Beyond Canada Ltd., was granted an initial order for creditor protection by the Ontario Superior Court of Justice on Friday under CCAA, with a net loss of $99.5 million for the nine months ending November 26, 2022. 

Retail Insider was recently asked by some landlords if Bed Bath & Beyond’s Canadian stores were expected to stay open even as the US division floundered — court filings in Canada now show that even though some stores were profitable, the overall Canadian division created significant negative adjusted earnings margins to the parent company. 

Stores are quite large, averaging over 30,000 square feet each. Bed Bath & Beyond’s first store in Canada opened in December of 2007 at the Bayview Glen Shopping Centre in Richmond Hill, Ontario, in a 34,000 square foot space. 

A decade ago, Bed Bath & Beyond was a much more successful retailer in Canada when it launched its baby-focused buybuy BABY concept in Canada. Its first store opened in Edmonton December of 2014 and the company now has 11 of these stores in Canada, also set to close. 

BuyBuy Baby at South Edmonton Common (Image: South Edmonton Common)
Photo: Bed Bath & Beyond

Bed Bath & Beyond’s real estate strategy in Canada involved opening big-box stores in a mix of shopping centres, strip malls and big-box centres. Some stores are located near major shopping centres such as in Calgary, where Bed Bath & Beyond has a location across from CF Chinook Centre. Landlords with properties occupied by Bed Bath & Beyond will have to re-tenant these retail spaces, presenting both challenges and opportunities to add new more robust retailers to the mix. 

It’s not known exactly how much space Bed Bath & Beyond and buybuy BABY occupy in Canada. Over the weekend, one broker Retail Insider spoke with estimated the number to be about 2-million square feet. Given that stores are typically in the 30,000 square foot range, they will be easier to back-fill compared to vacancies left by Target and Sears Canada when those retailers shuttered several years ago. 

Existing boxes where Bed Bath & Beyond stores are located could be demised for multiple tenants, or could be filled with larger single tenants depending on what makes sense. Single tenants such as a grocery store, a fitness studio, or entertainment concept could replace some Bed Bath & Beyond stores. Possible individual tenants such as Winners/Marshalls, Staples, Sport Chek, Indigo, Nordstrom Rack, Old Navy, The Brick, Leons, and London Drugs could move in depending on the opportunity and what makes sense depending on the location.  

Unique Furniture Consignment Retailer ‘My City Life’ Opens 3rd Nova Scotia Storefront with Plans for Expansion

Image: My City Life

Mike Melvin describes My City Life as the “Marshalls that married the antiques road show.”

The owner of the furniture decor and antique consignment business has opened its third store in Atlantic Canada, at the Sunnyside Mall in Bedford, Nova Scotia, with plans to grow the business with more locations.

Melvin spent some time years ago working in Alberta’s oilsands, flying back and forth from the western province to his home in New Brunswick.

“That’s where I kind of picked up on the idea for this business while living there and seeing all the consignment stores in Calgary,” said Melvin. “And when I got back to New Brunswick and saw that there was nothing like it there I decided to put my own twist on it a little bit and a business was born.”

Image: My City Life

Melvin is based in Saint John, New Brunswick. 

“I have just incorporated a business called Consignment Canada. As I’m growing I’m finding people want to do business with a corporation versus a name. I thought Consignment Canada would be something we could take across the country and it would be a little more acceptable and people would understand better what it is we’re doing now versus the My City Life, which I love the idea. I love the name My City Life. But I guess I have to make sure people understand what it is we do,” he said.

“We’re a furniture decor and antique consignment shop but we also have new items. We have new decor and we mix it with the old. So ultimately when I get into my larger stores as time will pass the goal is to become the Marshalls that meets the antique road show. Mix it all together.”

Image: My City Life

The company also has two stores in Saint John. Melvin started building the business in August 2019. The first store opened in September 2019 in a 300-square-foot space. The streetfront store opened in the uptown core of Saint John. The two stores are now located in Brunswick Square, literally three doors away from each other. The Bedford store and one of the Saint John stores are about 4,000 square feet. 

“The biggest problem I have to growth is not inventory by any means. I started with 300 square feet. I now have 24,000 square feet in three stores. The biggest problem I have, the barrier to entry, is that other leaseholders in the places I want to be have restrictive covenants that disallow the sale of used goods,” said Melvin. 

“Or certain parts of my product line. So I have to be careful as to what I can sell in each location. Because of me wanting to get into larger stores, also affordability has been a factor as we build. We do okay. We do $300,000 a year. We’ve done $1 million since we started this thing. I see it growing bigger. A 10,000-plus square-foot store that should scale up quite nicely.

“We focus on helping people. Most are downsizing or moving to one spot or another but we see a lot of seniors going to apartments or assisted living. 

We’re not the antique store you’d expect. We position ourselves in malls and high traffic areas that surprises everyone that wanders in. We currently have three stores and soon adding many more. Our five-year plan is to be in every major centre in the Maritimes. Our 20-year plan is to create a legacy that will be the first place people in Canada think of furniture decor and antiques.

“I’ve already considered looking at space in Edmonton, Alberta and St. John’s Newfoundland. Unfortunately I think steps going away from my home base is just not feasible until I can get into a little more secure position to make sure I know exactly what my numbers are going to be.”