Home Blog Page 727

Vancouver-Based Furniture Retailer ‘Sundays’ Expanding into Calgary Market After Successful Ontario Store Launch [Interview]

Sundays Vancouver Showroom (Image: Sundays)

Vancouver-based furniture store Sundays is expanding and opening a showroom in Calgary this year. 

It will be the brand’s third Canadian showroom. The company has locations in place in Vancouver near South Granville on West 6th Avenue and in Toronto on Ossington Avenue.

Sundays will bring its thoughtfully designed furniture to customers in Calgary in its very own showroom – giving existing and new customers alike the chance to see and feel its collection in person. The store will be located at The District at Beltline development in downtown Calgary with neighbours including 33 Acres, Central and DeVille Coffee. 

Future Sundays Calgary at The District at Beltline (Image: CBRE)
Future Sundays Calgary at The District at Beltline (Image: CBRE)

The Calgary store will be the brand’s largest at 4,000 square feet. The Toronto store is 2,188 square feet while the Vancouver store is 1,865 square feet.

Barbora Samieian

“We have had a partnership with Socality House on 17th (Avenue SW) which featured a few of our pieces and over the last year, year and a half, we have continued to observe increased e-comm sales in Calgary and Alberta,” said Barbora Samieian, Co-Founder, Director of Brand and Community for Sundays.

“Calgary is our third biggest sales driver in Canada behind BC and Ontario. And we’re really starting to see our customers resonate with the brand and what we observed in both Vancouver and Toronto with the showrooms is having those physical locations where customers and also trade partners can touch and feel the product, see the quality of our pieces in real life just really helps drive sales and build trust with the brand.

“We’re still a fairly new brand. We’ve only been around since late 2019. It just seemed like a great next market to put a physical showroom.”

Sundays Calgary is being built by CREATE and Way of Normal (the newly branded commercial arm of Fort Architecture). 

The retailer launched in November 2019. 

Sundays at Socality House in Calgary (Image: Sundays)
Sundays on Ossington (Image: Dustin Fuhs)

In a previous Retail Insider story, Samieian said: “An interesting time to launch a new business. The model was just to be a direct to consumer model with everything in stock. That was sort of our motto. We’ll stock a very curated selection of items and in November of 2019 we started with living room only – some sofas, coffee tables and a few end tables.

“Eventually we started expanding our living room collection and then we got into dining and bedroom as well but still a very tight and focused line. We started with just ecommerce but during COVID there were all of these empty spaces because restaurants were leaving and other businesses were shutting. So we actually started a little pop-up – a showroom – in Vancouver in about May or June of 2020 and we saw from that kind of experiment – it was like a two to three month lease – there was a lot of interest for customers to be able to touch and feel our furniture. So we’ve since opened a permanent showroom in Vancouver. That opened in the fall of 2021 on West 6th Avenue, South Granville, just off of the main furniture row in Vancouver.”

Image: sundays-company.ca

Samieian said Socality, a coffee shop and community gathering place in Calgary will continue to have some of Sundays furniture to experience the brand in real life. 

“We will no longer be driving customers to Socality House but rather invite them to our showroom. Having said that, the partnership with Socality House has been really great. I think we’re very aligned – community minded businesses. We’ll still continue to partner on the creative side. They’re very plugged into the content creator community in Calgary. So we’re already planning some potential activations that we can do in the showroom once we open.”

The showroom in Calgary is expected to open in mid-April.

“We don’t have anything hard, penciled in for the remainder of 2023,” said Samieian. “However, we are going to be watching the response to this Calgary showroom closely and how it does and how it spills over to our e-comm sales. And how the retail store performs on its own and that sort of halo effect into our e-com sales in Calgary and I think based on that analysis if we continue to see the kind of trends that we’ve seen in Toronto and Vancouver, I think come late summer we might start looking for a fourth Canadian location.”

John Moss, Senior VP at CBRE, is the leasing contact for The District at Beltline.

Insolvencies Rise in Canada and are Likely to Continue Upward Trend in 2023

Shuttered H&M on Queen Street (Image: Dustin Fuhs)

The total number of insolvencies (bankruptcies and proposals) in Canada was up year-over-year for the second straight month. 

Those in debt are already struggling. The highest number of Canadian insolvencies since March 2020 was reported last month. And while the total number decreased by 18 per cent from that dizzying height, the year-over-year trend is one of financial struggles – and will likely continue so for 2023.

Some key findings:

  • The total number of insolvencies in December 2022 was 13.8 per cent higher than in December 2021. Consumer insolvencies increased by 13.4 per cent, while business insolvencies increased by 23.3 per cent;
  • For the 12‑month period ending December 31, 2022, the total number of insolvencies increased by 11.9 per cent in comparison to the 12‑month period ending December 31, 2021;
  • Consumer insolvencies for the 12‑month period ending December 31, 2022, increased by 11.2 per cent in comparison to the 12‑month period ending December 31, 2021.

Read the report Insolvency Statistics in Canada — December 2022.

Here’s a video interview with Jasmine Marra, Vice-President, Bromwich + Smith, who discusses the implications of the growing number of bankruptcies.

Youtube video

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.

Interviewed this episode:

Like, Share and Subscribe to Mario Toneguzzi on YouTube!

Follow Mario:

Also check out the other series offered by Retail Insider, including The Weekly podcast and The Interview Series, which are both available on Apple Podcasts, Stitcher, TuneIn, Google Podcasts, or through our dedicated RSS feed for Simplecast and other podcast players.

Follow Retail Insider:

Share your thoughts!

UFA Co-Operative Expanding with New Stores [Interview]

Future Red Deer UFA (Rendering: UFA)

Following a record-breaking year the UFA Co-operative (United Farmers of Alberta) is growing and expanding.

The organization, which was built for farmers by farmers, was founded in 1909 and today has grown to more than 120,000 member-owners and its network comprises 113 bulk fuel and Cardlock Petroleum locations, 34 Farm & Ranch Supply stores and a support office located in Calgary. 

Recently it announced it is building a new store and Cardlock in Red Deer and it has launched its new e-commerce marketplace.

“Red Deer is a vibrant and strong market, and we are pleased to be able to enhance our service offering to its residents with the improvements we are making,” said Glenn Bingley, Vice President, AgriBusiness and Supply Chain, UFA. “The investment UFA is making reflects our commitment to members and customers in the region and aligns with our aim to be the most trusted supplier of products and services in the markets we serve.”

Scott Bolton

“UFA has a responsibility to support the farmers and ranchers who feed the world. It’s a responsibility our co-operative takes seriously, and (this) ultimately is an investment in agriculture, which is critical, not only to our members’ and customers’ success but to economic recovery,” said Scott Bolton, President and CEO, UFA.

 “UFA is in an ideal position to shine a spotlight on the agriculture sector and its importance, not only to Canada but to the world. Our members and customers are the driving force behind western Canadian food production, and it is strong, diverse, and poised for significant growth. The opportunity in front of us is why we are making considerable investments that enable farmers and ranchers to ensure food security on a global scale. We know the prairies are a place of abundance and the truth is the economic success of everyone in the Canadian food system depends on the success of our farmers and ranchers.”

Future Red Deer UFA (Rendering: UFA)

Bingley said the current Farm Store in Red Deer will be replaced by a new one.

“Red Deer is a major market. A really strong farming and ranching community for UFA. Ultimately we made the decision to relocate to a better location. As you know in retail, it’s location, location, location. We’re moving into what we feel is a much better location right beside a nice anchor retailer with Costco. So a really good retail traffic area,” he said.

“And much better access we believe too for not only our existing members and customers but it’s a better location also for other members of the community in Red Deer. Better access off of Highway 2 both north and south and good access from the 2A on the west. Overall it’s a better location. Our old location served us well but the store is over 20 years old. The area is kind of more of an industrial area.

“We just think that when we look at our overall Red Deer market for us being a major market with a strong farming and ranching community, we have not really optimized our market potential in Red Deer. We believe fundamentally moving to a better location will help us do that. And the new store gives us an opportunity to really bring new products and services to our members and the community and we’re very confident we’re going to do that.”

The new 16,000-square-foot Farm Store, which is scheduled to open in late fall of 2024, will have an expansive yard, with a chem shed located on site and for easy pick up, there will also be a three-bay drive-through warehouse. The future Cardlock will feature state-of-the-art high-speed pumps with clear and dyed fuel, wide lanes, DEF, and Dieselex® Gold, UFA’s exclusive premium diesel offering.

“One of the strengths of our co-operative is we have a really broad product offering, a very diverse product offering. So for us it just made sense and the primary focus was relocating the Farm Store but while we’re doing that we have a very strong Cardlock network throughout Alberta and this gives us an opportunity for our members for convenience to also put a Cardlock on site. It was a natural,” said Bingley.

Weyburn UFA Groundbreaking (Image: UFA)

UFA is also expanding its Cardlock locations in Saskatchewan with new ones opening in Weyburn and Yorkton this month. 

“That’s kind of the first new sites in our petroleum business expansion into Saskatchewan. We’re really excited about those openings,” said Bingley.

“For us, it’s expanding our petroleum business into key markets in central and eastern Saskatchewan. This is part of a multi-year strategy to build out additional petroleum locations.”

Bingley said UFA may look in the future to expanding its Farm Stores into Saskatchewan as well. 

“With our Farm Stores we’re continuing to focus on really growing same store sales, really organic growth, continuous improvements in our product assortment and offerings. And we’re really excited to launch our MarketPLACE platform which is a natural extension of our e-commerce business that we started two years ago,” he said. 

UFA MarketPLACE

UFA MarketPLACE provides a larger selection of products for customers/members to purchase online, which are provided by an assortment of vendors through UFA.com. These trusted vendors handle fulfillment and customer service for the items they sell.

Last year, UFA enhanced its e-commerce offering with BOPA (buy online, pick up anywhere). That gave customers the ability to order inventory not only at the store of their choice but also from its distribution centre. 

“MarketPLACE is an online shop and it gives our members and customers access to really that endless aisle to provide more selection, more vendors, more brands and more products for what they’re looking for and what they need. And the great part about it is we’re working with existing vendors that support us today in our Farm & Ranch stores in our current e-commerce offering. We’re getting more access to more of the products that they have available – increasing that online assortment,” explained Bingley.

“We’re really excited about it. We think it’s going to be a great new business opportunity for us and it’s really going to complement everything that we’re doing today in our brick and mortar stores.”

French Fragrance Retailer ‘Adopt’ to Enter Canadian Market with Stores [Interview]

Image: Adopt

Adopt, a fragrance retailer based in France, is looking to expand its brand into the Canadian market.

The retail strategy is to open several Quebec locations in the next couple of years. Ideal spaces are 500 to 800 square feet in enclosed malls and along busy high streets. 

Marcel Rinaldy

“We are convinced that there is a huge potential in the Canadian population – open minded people with a French culture, knowing that the fine fragrances are coming from France,” said Marcel Rinaldy, President of Groupe 3M, who will be the Canadian partner/developer of the brand.

“Adopt makes the revolution in the perfume universe. Adopt is making the French Fragrance Revolution! The brand offers high quality perfumes at very accessible prices. It also distributes cosmetics, body care, skin care and home care.

“Adopt is unique. It proposes the wider range of the market with more than 150 fragrances of high quality 100 per cent made in France, created by the greatest perfumers, at an accessible price for all and respecting our planet.”

Image: Adopt

Rinaldy and his team are working with Tony Flanz of Montreal-based real estate firm Think Retail to expand the Adopt brand into Canada.

The brand has more than 180 stores in metropolitan France with more than 50 locations in overseas territories such as French West Indies, Reunion Island, Mayotte, Mauritius, Madagascar, Seychelles, New Caledonia, Tahiti, Saint-Martin. It is also in more than 40 countries with 2,600 points of sale as a wholesaler in places like department stores.

Rinaldy described the origin of the brand as “the smell is our founding sense.”

“It is the first sense we develop, the one that brings us security and comfort and even allows us to form our first emotional bonds. The human being is able to distinguish no less than 1,000,000,000,000 different odors. However, the sense of smell has become the last of the senses used, supplanted by a world overwhelmed by sounds and images. From this fact was born a great conviction: the olfactory sense plays a key role in our well being, and perfume offers us the possibility of boosting our confidence and affirming ourselves. Perfume leaves an imprint of ourselves on all those around us. It plays an essential role in our memories, in our serenity and balance. Perfume is our greatest source of emotions,” he said. 

“From this conviction was born a fight. Dominique Monlun, who, more than 30 years ago, fought so that great perfumes would no longer be reserved for a privileged circle. In 1986, he trained as a perfumer with the greatest creators in Grasse and made this fight possible: he realized that the quality of a great perfume lies in the magic of its blends, in the rigorous selection of its ingredients, in the mastery of its production. Everything else – the bottle, the muse – is futile. That’s when Adopt Parfums, the first creator of fine fragrances accessible to all, was born.”

Image: Adopt
Tony Flanz

In a post on its website, Think Retail describes Adopt as a fresh, vibrant retail concept that aims to give everyone access to fine fragrances, without breaking the bank.

“Adopt stores feature complementary items, such as sprays, body creams, candles, essential oils, as well as a range of skincare products for the face. 

“The branding is electric—joyful, colourful and positive—with vibrant packaging and an ethos that appeals to generations of consumers, who are eager to express themselves in a variety of ways. The average customer is aged 34, with 37 per cent aged 18 to 25, 42 per cent aged 26 to 45 and 21 per cent over 45 years,” says the real estate company.

Image: Adopt

“In addition, products put the planet first, with sustainability practices throughout the value chain, natural ingredients, organic ranges and eco-friendly packaging, including perfume bottles made of 90 per cent recycled glass. 

“The brand has a strong social media presence — Instagram, TikTok, YouTube, Facebook — and works with a crew of influencers who promote Adopt and its values. A regular on the pages of fashion and beauty magazines, Adopt is a proven concept with a massive global footprint that includes 2,600 points of sale (kiosks, stores-in-stores and stand-alone stores) in more than 40 countries.

“Now celebrated global entrepreneur Marcel Rinaldy, president of Groupe 3M and owner of several successful brands, has purchased the Canadian rights to Adopt and is bringing this exciting and fresh retail concept here. The stores are beautifully designed, with a modern vibe and Think Retail is delighted to work with Rinaldy on Adopt’s market entry. This is a strong tenant that is sure to be a hit, driving foot traffic among a valuable demographic.”

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.

Subscribe, Rate, and Review our Retail Insider Podcast!

Follow Craig:

Follow Retail Insider:

Listen & Subscribe:

Share your thoughts!

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/

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).”