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SoulCycle to Exit Canada and Shut Remaining Location in Toronto

SoulCycle Yorkville Village. Photo: SoulCycle

New York City-based cycling studio and retailer SoulCycle is shutting its last Canadian location, exiting the market after operating here for five years. The company had planned a national expansion and ended up only opening three storefronts, two of which have already closed. 

The last Canadian SoulCycle location will shut at Toronto’s Yorkville Village shopping centre . That SoulCycle location opened in the summer of 2017 in a 4,038 square foot retail space featuring frontage onto Avenue Road and with a doorway into the shopping centre across from an upscale Art Gallery. An Equinox gym will continue to operate at Yorkville Village. 

SoulCycle’s first Canadian location opened in the spring of 2017 at 425 King Street West in Toronto, near Spadina Avenue. The 4,000 square foot location closed earlier on in the pandemic. A source with knowledge of the situation told Retail Insider at the time that SoulCycle pulled the plug amid disagreements over rent with the landlord. 

Photo: SoulCycle
“An important update on your YKVL studio” via email to Yorkville SoulCycle Clients
Photo: SoulCycle

In Vancouver, SoulCycle opened a 3,518 square foot location in the city’s Yaletown area in the summer of 2017. That location closed in the spring of this year and another spin studio, YVR Cycle Spin Studio recently replaced it. 

On Saturday it was reported that SoulCycle would be closing 19 locations, and Toronto was on the list. CEO Evelyn Webster announced the closures in a meeting with employees on Friday morning according to leaked audio from the meeting shared with Business Insider. 

“The timing was appropriate to look at our studio footprint by market to understand whether we continue to believe that we had indeed oversaturated some markets, and the conclusion is that after much work and analysis that perhaps we have,” Webster said.

The Canadian closure obviously isn’t due to an over-saturation situation in Toronto, rather it was the remaining location for the company in Canada. It remains to be seen if SoulCycle will re-enter the Canadian market at some point in the future. 

Yorkville Village SoulCycle. Photo: SoulCycle
SoulCycle Via Yorkville Village
The former Vancouver SoulCycle location at 1128 Mainland Street in Yaletown on August 14, 2022. Photo: Lee Rivett

A source at a competing spin studio told Retail Insider that SoulCycle entered the Canadian market at a time when local companies were opening similar concepts to gain marketshare. SPINCO, for example, has 25 locations nationally with more to come, and local markets such as Edmonton have homegrown concepts such as YEG Cycle. 

And SoulCycle’s upscale strategy may not have been one to resonate with the majority of Canadians — the same source said that while SoulCycle positions itself as a ‘luxury’ competitor, homegrown studios in Canada in many cases embrace inclusivity. 

SoulCycle incorporates upper body exercises and high-energy music into each class, set in a dark candlelit room. SoulCycle has been known for its cult following of riders, with a loyal clientele in the past such as Michelle Obama, Oprah Winfrey, David Beckham, Demi Lovato, and Lady Gaga.

The company also offers a range of men and women’s athletic wear, in a separate retail space. The merchandise mix features branded SoulCycle gear. 

SoulCycle was founded by Elizabeth Cutler and Julie Rice in 2006. The company was acquired by Equinox Holdings Inc. in 2011, which currently operates three Equinox Fitness locations in Toronto and Vancouver (with more said to be on the way). Equinox Fitness is a subsidiary of The Related Companies

Canadian Retail News From Around The Web For August 15th, 2022

Canadian Retail News From Around The Web

News at a Glance

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.

Video Interview: Rebelstork Making It Easier For Parents To Sell Their Baby Gear

Video Interview: Rebelstork Making It Easier For Parents To Sell Their Baby Gear

Emily Hosie, Founder/CEO, Rebelstork, discusses the company’s new partnership with Monti Kids.

Hosie talks about the technology behind the marketplace, how it is impacting the industry, the future of resale, the history behind the company.

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 National Business Journalist with Retail Insider and owner of Mario Toneguzzi Communications Inc. and can be reached at mdtoneguzzi@gmail.com.

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Issues Magazine Shop Opens 1st Store in Toronto Amid Demand for Physical Copies [Interview]

Issues Magazine Shop (Image: Justin Ming Yong)

Issues just opened its doors on July 13th in Toronto – making it easier for magazine lovers to find their next reads as until now, finding independent worldwide magazines has been a challenge. 

Nicola Hamilton, a graphic designer and art director of a variety of magazines, noticed a gap in magazine retail and decided to open up her own shop Issues Magazine Shop. Customers can find independent and hard to find magazines from all over the world. The store currently has 200 covers and is growing daily. 

Nicola Hamilton

“When I travel, I seek out independent magazine stores: Casa Magazines in New York City, Under the Cover in Lisbon, MagCulture in London,” says Hamilton. “I always wondered why we didn’t have anything comparable. I assumed it would happen in time, but it never did — so here I am.”

Issues is located at 1489 Dundas Street in Toronto and has 300 square feet of retail space. Customers who do not live in Toronto but would be interested in its magazines are still in luck as the store offers shipping throughout Canada. 

Surprising Demographics 

Issues Magazine Shop (Image: Justin Ming Yong)

Hamilton expected her customers to be folks in their late 20s, 30s and 40s working in the creative industries. That’s been true, but Issues has seen a wide range of demographics.

“It’s been all over the map. We are seeing the creative folks — photographers, illustrators, writers and designers — but we’re also seeing older and younger demographics excited to flip through printed magazines. The younger folks might not have been exposed to many of these titles before. They’re thrilled to see it, discover it, and to feel the magazines.”

“Many more magazines to come” 

Hamilton said its main goal right now is to expand its magazine covers to about 600. 

Future plans include using the retail space to host events and workshops geared towards building community and supporting the independent magazine landscape in Canada — in hopes of stocking more Canada titles in the years to come.

The first month of being open has been extremely successful and Hamilton said exceeded her own expectations. 

“We have exceeded my early projections. This first month has been really affirming. I speculated that there were more people like me out there, with an appetite for print media, and so far that appears to be true. A couple of times a day folks come in and thank us for existing. It’s sweet, but also an indicator that there was a hole in the market.”

The store is designed to look like an art gallery but feel like a record store. The goal is to have give customers the sense that they can linger and browse. They’re invited to sit down, thumb through the titles, and chat with our staff about their favourite magazines. If customers can’t find what they’re looking for, Hamilton encourages them to ask about them. They’re committed to investigating most client requests.

“Customers are encouraged to linger, to browse, to take a seat back and look at things, or to chat to us about magazines that you are familiar or unfamiliar to you. I want to see our inventory evolve and to grow to have many more magazines to offer to the community.” 

To get the community introduced to its products, Issues will also be at The Word on the Street pop-up event at Evergreen Brick Works at the end of September. 

Deerfoot City in Calgary Launches Outdoor Activations as it Looks to Phase 3 Restaurant Campus Addition

Deerfoot City (Image: Courtney Verbeek)

The transformation of Destination: Deerfoot City continues in the northern part of Calgary as the shopping centre introduces this summer its third annual #YYCBlockParty, an outdoor retro inspired roller rink and interactive art installation.

And the property is also looking at embarking on its third phase of redevelopment to include a Restaurant Campus in the future.

PARK (Promoting Artists | Redefining Kulture) has teamed up with Deerfoot City for the 120-foot roller rink with a 215-foot vintage-inspired artwork from WKNDRS, Tyler Lemermeyer, Sarah Lamoureux and Natalia Ionescu. 

The experience continues until the end of September.

Deerfoot City (Image: Courtney Verbeek)

“What we do is provide platforms and opportunities for artists to show and share their work and they do these through a lot of unique and interesting partnerships within the community to create experiences and events. In this case, it is an experience,” said Jessie Landry, Vice President and Co-Founder of PARK.

“We initially embarked on this project with (Deerfoot City) at the beginning of the pandemic because we were looking for outside projects because we could no longer host our events indoors and Deerfoot City became a really good fit because of course at the beginning of the pandemic a lot of food courts were closed and we needed to make use of outdoor public spaces.”

She said the initial project was intended to draw people to the outdoor space at the shopping centre as well as draw traffic to tenants there.

“This year we felt like we really stepped it up and just added a really, really fun element which is the roller rink,” said Landry.

Deerfoot City (Image: Courtney Verbeek)

Courtney Verbeek, Manager of Creative Services for Shape Properties which owns and operates Deerfoot City, said one of the things experienced through the pandemic was people increasingly embracing outdoor spaces. 

“So given that we are an open-air shopping centre, what we really wanted to do over the past few years is just invite people to play in our space. So have that personality and energy living in between maybe the other more traditional aspects of the centre which is shopping and eating, dining and entertainment,” she said. 

At the heart of #YYCBlockParty, visitors will have the chance to strap on their skates at the colourpop roller rink and street mural, designed and painted by artistic duo, the WKNDRS. In addition to the rollerink, ping pong, tetherball, and lawn games can be found across the boulevard for people of all ages to enjoy. Also new this year: supersize sculptures of a vintage boombox and roller skate designed by Tyler Lemermeyer – the perfect spot for an Instagram photo-op. 

“Innovation is really a priority for Shape and what we love about working with PARK is collaboratively we’ve been able to build on the momentum of this project,” said Verbeek. “We set out with a plan to do it for one year and just see how it goes and now it’s evolved into a three-year, annual project that’s continued to drive traffic to the property and just be an incredible addition to the community and celebrate local artists.”

Deerfoot City (Image: Yellowhouse Aerial | @yh_aerial)

The Deerfoot City transformation began in 2014 and will culminate in 1.1 million square feet of redevelopment with 550,000 square feet of outdoor retail space. Key anchor tenants include The Rec Room, iFLY, Cabela’s, Walmart, Canadian Tire, GoodLife Fitness, Winners, Old Navy. 

In the past five years, the shopping centre has seen the opening of more than 50 shops and services including the opening of The Boulevard, a pedestrian friendly shopping zone with plenty of landscaping, modern architecture and new additions to Deerfoot City’s fashion offering including Old Navy, Ardene and La Vie en Rose with more to come. It has also included the opening of The Food Lodge, an indoor and outdoor dining space where people can relax, retreat and eat from one of the Food vendors which include: Viet Lounge, Chatime, RE:GRUB, Ono Poke, Chachi’s, Mia Pasta, Opa! Of Greece and Chronic Tacos.

As well, Furniture Row has opened with Structube, Ashley Homestore, Sleep Country and F2 Furnishings.

Verbeek said the location of Deerfoot City is one of its highlights with its accessibility right off of the busy Deerfoot Trail roadway and only 15 minutes to the airport and 15 minutes to the downtown core.

Planning is well underway for Deerfoot City’s third phase of redevelopment which will establish the Restaurant Campus and additional shops and services over the next few years, she added.

The Restaurant Campus will include a few large format restaurants and a handful of retailers and services in a phased rollout over the next few years.

Podcast [Interview] Éric Blais Discusses Quebec’s Language Laws and How Bill 96 will Impact Retailers

Podcast [Interview] Éric Blais Discusses Quebec’s Language Laws and How Bill 96 will Impact Retailers

Craig interviews Éric Blais, President of Headspace Marketing, about how Bill 96 will impact retailers with rules around signage on stores and other businesses. They also discuss language laws generally and how consumers are greeted in stores — and what the penalties might be for businesses in Quebec not complying. 

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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Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

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/

Allbirds Opens 2nd Canadian Storefront at Toronto’s Yorkdale Shopping Centre [Photos/Interview]

Allbirds at Yorkdale Shopping Centre (Image: Allbirds)

San Francisco-based sustainability-focused footwear and fashion brand Allbirds recently entered the Canadian market with a storefront in Vancouver and this week, a second Canadian location opened at Toronto’s Yorkdale Shopping Centre. Retail Insider met with Allbirds co-founder and Co-CEO Tim Brown in Toronto to discuss the new Yorkdale store as well as plans for any further expansion. 

The Yorkdale Allbirds spans more than 2,400 square feet and features a bright and casual interior reflective of the brand. Included are displays of Allbirds’ sustainably-sourced footwear, ranging from original styles to the company’s newest design, the Tree Flyer. A range of apparel, socks and underwear are also available in the store. Sustainability is a key message for the brand throughout.

In an interview, Tim Brown explained that the Yorkdale store was designed to be a welcoming space for guests, featuring unique customized wood chairs that rock forward slightly to allow customers to better try on shoes. A display behind the cash desk features boxes of shoes, creating both a relevant visual element as well as more storage for various footwear styles. 

Allbirds at Yorkdale Shopping Centre (Image: Allbirds)

As the Toronto market develops, so will elements of community with Allbirds partnering with local influencers to help spread the message. Experiential elements such as a run club, artists, food and ambassadors will become part of the mix. 

Physical retail, Brown explained, is a way for Allbirds to engage with consumers while enhancing brand awareness through educating visitors on the brand. Brown said that consumers may subsequently shop online for products after being introduced to the brand in-store, while some may choose to return to the store repeatedly for a positive retail experience. 

The experience also translates to staff in the store according to Brown. Back-of-house has been optimized so that employees are able to find products quickly. 

Brown noted that the vibrancy of Yorkdale on opening day is indicative of the health of the mall overall. Crowds passing by the store will also help enhance the Allbirds brand to consumers with the retail space being located across from the mall’s Uniqlo store in an expansion anchored by Nordstrom that was unveiled in the fall of 2016. The space where Allbirds opened at Yorkdale had been occupied by Korean beauty brand Innisfree which exited its Canadian stores during the pandemic. Broker David Steuer negotiated the Yorkdale lease for Allbirds on behalf of the retailer. Yorkdale’s landlord is Oxford Properties. 

Allbirds at Yorkdale Shopping Centre (Image: Allbirds)

In Vancouver about a month ago, Allbirds unveiled its first Canadian store at 2262 West 4th Avenue in the city’s Kitsilano neighbourhood. That store includes 2,150 square feet on its main floor as well as a mezzanine of 970 square feet. While several other direct-to-consumer brands have opened on the trendy street, its foot traffic is less than what one would find at Yorkdale. Trevor Thomas of JLL Canada negotiated the Vancouver deal on behalf of Allbirds. The landlord in the lease deal was represented by Mario Negris and Martin Moriarty of Marcus & Millichap

Tim Brown of Allbirds said that there are no immediate plans to open more standalone Allbirds stores in Canada. Vancouver and Toronto were chosen for stores based on strong e-commerce sales and it remains to be seen if other markets will see stores. Brown said in an interview that he was a fan of Montreal and enjoyed the city while visiting when he was a professional soccer player. 

This isn’t the first time that Allbirds has had a retail presence in Canada. The brand also tested the Canadian market in 2018 with pop-ups at Nordstrom as well as a street front pop-up store on Queen Street West in Toronto that was reported on in Retail Insider at the time. The pop-up closed after about a year and itself offered a unique retail experience, including an obstacle course where visitors could try out different shoe styles on different terrain. 

Vancouver store. Image: Allbirds

In a previous interview this spring, Allbirds co-founder and Co-CEO Joey Zwillinger said that wholesale could also be part of the mix for Allbirds in Canada, though at the time retail partners had yet to be secured. In the US Allbirds recently announced its first wholesales deals this month with Zalando and Public Lands. 

Allbirds was founded by Brown and Zwillinger in 2014. Prior to founding the company, Zwillinger was a biotech engineer and renewable materials expert and Brown was a professional soccer player from New Zealand (he also has a degree from the London School of Economics).

A Kickstarter crowdfunding campaign in 2014 kicked-off the brand with the campaign reaching over $100,000 in sales in just four days. Zwillinger’s background helped design the construction of the rapidly growing brand while introducing additional sustainable materials such as a vegetable oil-based polyurethane insole.

In 2016, Zwillinger and Brown renamed the footwear brand as ‘Allbirds’ and launched products for the public. The Allibirds name is a historical reference to New Zealand having been so remote at one time that its only inhabitants were ‘all birds’.

Retail Design More Important than Ever as Brands Expand and Consumers Shift: Interview

Mobile Klinik at Vaughan Mills (Image: Bennett Design)

As retailers expand and build out their brands, it’s important they get the right space and understand the space that they need, says a leading national interior design firm.

That will ultimately help them achieve success as well as keeping their costs in check.

“We spend a lot of time with our clients really identifying what they should even be hunting for,” said Sue Bennett, Principal and CEO of Bennett Design.

Who is the demographic? Where do they want to be located? What do they expect from the landlord? Looking at the size and the attributes of the space. And making sure all the infrastructure is in place before signing a lease.

Repair and Run (Image: Bennett Design)
Repair and Run (Image: Bennett Design)
Sue Bennett

Picking the right space is crucial in keeping costs in line.

“There’s just so much money that they waste. We need to be able to streamline and create efficiencies in the process not just to execute the design faster but to be able to be smarter about how we’re executing them. So from a material standpoint what’s going to last longer, what’s going to be easier to maintain, what’s going to look better longer and also what’s available today with the global shortage and supply chain issues we have right now,” said Bennett.

Bennett Design is one of the largest independent design firms in Canada. It does corporate and retail interior design right across the country from Nanaimo to Newfoundland. The award-winning company has a staff of just over 40 people. 

“We do almost specifically retail rollouts. We work with clients in order to establish the design for their brand then we will implement their branded locations right across Canada but we also do all the program management. So understanding their thoughts, how much work is coming down the pipe, when are the projects going to happen and then we also have a project management division that will actually execute and help get all of these built,” said Bennett.

Mobile Klinik at Vaughan Mills (Image: Bennett Design)

“We do a lot of work in the QSR, the quick service restaurant space. We do a lot of one offs if we are looking for a design kind of piece. But where our sweet spot is is really in doing the execution of the design and then the application of that design across many spaces across Canada.

“The biggest challenges we’re working on right now are clients that are coming to us with designs that have been done by marketing companies. So they’re not executable or they’re very expensive to be executable. We need to make sure from a legal standpoint that they comply with all the building codes, fire codes and things like that which is something that is our expertise but not a marketing firm’s expertise. What we like to have the opportunity to do is interpret their brand standards right into their store design and to be able to execute that store design so it is . . . easily replicable.”

Bennett said it’s important that clients be able to stand out in a crowd because today there are so many stores and there is huge growth. The company will also work with the retailers on the back end. 

“One of the concerns that we have always is how they are dealing with the real estate. What autonomy are they providing their franchisees? And so when they allow their franchisees just to go and lease any damn space we end up spending a fortune on construction,” she said.

Five Guys (Image: Bennett Design)

Initially working with retailers, Bennett said it’s important that the interior design firm needs to understand what the store’s success criteria looks like. At the end of the day, who are they appealing to and what’s going to create that success story? What is the long-term plan? How many stores do they plan on rolling out, the time frame and what does the growth look like? And who are their partners? Who is looking for their real estate? What is their real estate strategy? Do they have any criteria in place to understand what their ideal location is, what their ideal size and shape of store is?

“Retailers are working hard to invite people back. I know that there’s been a ton of creativity over the course of the pandemic just to get people into stores but I think that there is a loyalty. The service is going to be huge. And how you position your service. Making sure that there’s a visibility to your client. Making sure you’ve created space for your client to actually maneuver through your space in an effective way so that they’re not coming in being roadblocked, turning around and leaving,” said Bennett. “We want to invite them all the way to the back of the store.”

She also said that for retailers these days Instagrammable moments are huge. 

Blaze Pizza (Image: Bennett Design)

“We want to create moments. We want people to go in and have these beautiful little ahha moments to say that they really thought about the detail or the inside of the store was completely representative of what I thought it was going to look like from the outside. This is their brand and so I have an impression of what that’s going to be and when I walk through the door I want that to be realized,” added Bennett.

“Those are the things we’re thinking about because there has to be almost an emotional draw to get people into the store. There’s got to be a reason. What is that reason? And when we get people to walk through those doors we don’t want them to have lunch bag letdown. We want them to be able to realize this is what I expected when I walked through this door and that the service experience and the aesthetic experience, all of those things are all aligned.”