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Hudson’s Bay to Close Bloor & Yonge Department Store in Downtown Toronto [Exclusive]

By
Craig Patterson
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Hudson's Bay at Yonge & Bloor (Image: Dustin Fuhs)

The prominent downtown Toronto Hudson’s Bay department store at 44 Bloor Street East will shut down permanently this spring, marking the end of a 47-year run for the store. From 1974 to 1991 the Bloor & Yonge Hudson’s Bay store acted as the company’s flagship until a former Simpsons store in downtown Toronto was rebranded to a Hudson’s Bay nameplate to replace it. 

The news follows a Retail Insider report in July of 2021 after landlord Brookfield removed Bay-branded signage from the top of an office tower on the Hudson’s Bay Centre site. The Hudson’s Bay Centre opened in 1974 with a multi-level Hudson’s Bay department store as an anchor with the adjacent new tower containing its new head offices. 

The then-260,000 square foot store opening on August 7, 1974 was an exciting one given that this was the first Hudson’s Bay-branded location in Toronto, not to mention its new flagship. For years prior to that, the downtown Winnipeg store served as the company’s flagship — the downtown Winnipeg store shut permanently in late 2020. 

Hudson’s Bay Centre on February 23, 2022. Photo: Dustin Fuhs
The store in 1974 looks almost identical to today. Photo: Hudson’s Bay
Montreal Gazette, July 18 1974 via newspapers.com

In 1974 the shiny new Toronto Bay store became a competitor in the market as it added women’s luxury fashions to compete with other department stores already present in the downtown core. That included Eaton’s which had a massive standalone store on Queen Street at the time, and Simpsons which operated across the street. In 1979 a new Eaton’s store opened closer to Dundas Street in the new Eaton Centre complex that prior to the pandemic was the busiest shopping centre in North America in terms of footfall, by far. Closer to Hudson’s Bay on Bloor is Holt Renfrew which in 1979 unveiled its current store, albeit a bit smaller at the time. 

Toronto Sun, August 7 1974

In 1978, the Hudson’s Bay Company acquired competitor Simpsons which had a store spanning nearly a million square feet at the southeast corner of Yonge and Queen Streets. The store continued to operate as Simpsons until 1991 when the Hudson’s Bay Company made the decision to retire the Simpsons nameplate from all stores including the downtown location which became Hudson’s Bay. Given the architecture and vastness of the former Simpsons flagship, it was deemed to be the new company flagship for Hudson’s Bay. Only two years prior, the Simpsons store saw a $30 million investment that some referred to as “the miracle on Queen”. Included in the store renovation was the world’s largest cosmetics department as well as a gourmet food hall in the basement. 

5th floor furniture level at Hudson’s Bay in the Hudson’s Bay Centre on February 23, 2022. Photo: Dustin Fuhs

For over 30 years Hudson’s Bay has operated two stores in downtown Toronto, and that will come to an end when the Bloor Street store closes in May of this year. Staff in the store have been notified of the closure.

For this report, the Hudson’s Bay Company provided the following statement: 

“HBC continually looks at opportunities to optimize its real estate portfolio. Given the unique proximity to the Hudson’s Bay Queen Street flagship location in Toronto, Hudson’s Bay has made the decision to close its Bloor Street store on May 31, 2022. The flagship store is located just 2.5 km from Bloor on Queen Street, and we will continue to serve the community with a seamless omnichannel experience at that location and through TheBay.com.

We are committed to treating every associate with respect and fairness through this process. All eligible associates will receive appropriate employment separation packages and transfer opportunities will be explored where feasible.” 

Main floor men’s department at Hudson’s Bay in the Hudson’s Bay Centre on February 23, 2022. Photo: Dustin Fuhs
Main floor of the Hudson’s Bay store at Hudson’s Bay Centre on February 23, 2022. Photo: Dustin Fuhs

Interestingly, in 2013 the Hudson’s Bay Company had looked at replacing the Hudson’s Bay Centre Hudson’s Bay store with a 300,000 square foot Saks Fifth Avenue location that would have competed with nearby Holt Renfrew. A deal was eventually reached where Cadillac Fairview bought the Hudson’s Bay building on Queen and its adjacent office tower, with Saks opening its first Canadian store in 2016 within the Hudson’s Bay building. Sources said that the proposed Hudson’s Bay Centre Saks announcement was part of a tactic in HBC’s negotiations with Cadillac Fairview to buy the Queen Street flagship store. 

The Hudson’s Bay Centre is a massive complex housing the current department as well as a retail mall, 1,100 stall parking facility and a 35 storey office tower. A W Hotel is under construction on the site at the base of a tall rental apartment building. 

The Hudson’s Bay Centre connects to the subway interchange below with a mall retail component spanning 213,000 square feet according to landlord Brookfield Properties. Tenants other than Hudson’s Bay include a Longo’s grocery store, Dollarama, LCBO, and small businesses in the concourse-level mall and a food court. The 35-storey office tower above it spans 535,000 square feet and was designed by architect Craig & Boake. When it was built, the 2 Bloor East office tower housed offices for the Hudson’s Bay Company and with Workmen’s Compensation Board — both tenants were announced in 1971 before the tower’s completion. 

Landlord Brookfield provided a statement for this article: 

“While we are sorry to see the departure of an iconic long-term tenant from this location, Hudson’s Bay remains a strong and valued tenant at a number of Brookfield’s properties and we look forward to our ongoing partnership with them.”

Escalators from the main floor menswear department to the basement menswear floor at Hudson’s Bay in the Hudson’s Bay Centre on February 23, 2022. Photo: Dustin Fuhs
3rd floor women’s fashions at Hudson’s Bay in the Hudson’s Bay Centre on February 23, 2022. Photo: Dustin Fuhs

The exit of Hudson’s Bay from the complex this spring will usher in redevelopment. A Brookfield representative went on to say in the statement, “We are excited by the opportunity to re-envision and transform this key asset at one of the most important locations in the City of Toronto. We will be submitting an application to the City of Toronto for planning approvals to bring Brookfield’s vision for the future of the property in the coming months.”

That vision wasn’t explicitly shared, and plans are expected to involve a partnership with the City of Toronto which has earmarked well over a billion dollars to overhaul the subway interchange under the Hudson’s Bay Centre. Some are also speculating that the on-site office tower at the Hudson’s Bay Centre could be demolished for a much taller building. 

We’ll follow up on this story with more photos of the final days prior to the store’s closing at the end of May. 

Canadian Retail News From Around The Web For February 24th, 2022

By
Retail Insider
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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.

Hudson’s Bay to Redevelop Downtown Vancouver Flagship with an Eye to the Future of Retail: Interview with President Wayne Drummond 

By
Craig Patterson
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Future Hudson's Bay Store in Vancouver (Image: Perkins & Will-Hudson's Bay Company-Streetworks Development)

The Hudson’s Bay Company and its real estate arm Streetworks Development announced the redevelopment of downtown Vancouver’s iconic and historic Hudson’s Bay building on Wednesday. Included will be a smaller new format department store and new food and beverage offerings as well as a massive office building above and a new transit interchange. The incredible project will anchor the corner of Granville and Georgia Streets where Hudson’s Bay had occupied the northeast corner for more than 100 years. Construction is expected to begin as soon as 2024 once approved by the city.

Rising above the updated retail component will be an imposing 12-storey office component spanning about a million square feet expected to house about 5,000 employees. Floorplates exceeding 60,000 square feet will target tech sector tenants that will also enjoy a rooftop garden and other amenities. Improved access to the existing SkyTrain stations on site and an underground hub for up to 1,500 bicycles will also be added. 

Retail Insider had the opportunity to speak with Wayne Drummond, President of Hudson’s Bay department stores about the announcement. Drummond said that the current store spanning about 637,000 square feet will be reduced in size to about 350,000 square feet on the lower levels of the new complex. 

The Hudson’s Bay Building on Granville Street, showing the updated store and galleria that will link transit interchanges and a new office building lobby. (Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)
The Hudson’s Bay Building from Seymour Street showing the updated building and galleria. (Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)

The design of the retail component is still in the planning phases as the proposal works its way through the City of Vancouver approval processes over the next year or so. The current store includes six large retail levels above ground spanning more than 70,000 square feet each as well as two basement levels. Drummond said it hasn’t yet been decided how many floors will be dedicated to retail in the newly conceptualized mixed-use flagship property.

Some things are sure to change with the downsizing of the retail footprint. The store’s beauty hall is said to be the largest in North America, spanning about an acre in size. That’s expected to be downsized with the redevelopment, as is the award-winning 70,000+ square foot menswear department on the sixth floor that is the largest west of Toronto.  

The downtown Vancouver Hudson’s Bay store will become a place of “discovery” and will integrate technology to enhance the customer experience according to Drummond. Already Hudson’s Bay is conceptualizing the future of retail as it tests innovations at the Queen Street flagship. That includes virtual selling through its ‘The Bay’ online platform and marketplace that will be rolled out into stores across the country with more details to come. 

The Hudson’s Bay Building as seen from the corner of Seymour and Georgia Streets when the project is done (Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)
The Hudson’s Bay Building ‘Sky Atria’ above the retail store — this view is looking south (Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)

Luxury department The Room will also be part of the mix in the newly conceptualized Vancouver Hudson’s Bay store. We reported last year that The Room had added menswear to the Vancouver offerings, showcasing some of the world’s top luxury brands as well as some edgy harder-to-find labels that in some cases are unavailable elsewhere in North America. Hudson’s Bay is one of the last remaining traditional department stores in North America to house dedicated luxury fashion departments in its stores (also in the downtown Toronto flagship). 

“We are creating a shopping experience that promotes discovery in our store, and excites visitors with modern, relevant and inclusive product and services. This newly-developed space will deliver an environment that will take the Hudson’s Bay shopping experience to the next level,” Drummond said in a statement. 

Vancouver will become a focus for innovation with Hudson’s Bay also building a new store at Oakridge Centre which is set to open in a couple of years. Drummond said that Hudson’s Bay continues to look for new brands to add to its stores and several new ones have been added. Some brands occupy concession spaces within Hudson’s Bay stores and that will continue. 

The Hudson’s Bay Building W. Georgia Street Entrance (Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)
The Hudson’s Bay Building’s New Arcade with Sculptures (Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)

Retail Insider also had the opportunity to speak with Douglas Adams, Senior Vice President of Development at Streetworks Development. He explained that the massive structure to be built above the existing department store would be made possible through a construction process where existing heritage elements of the existing store will be maintained, including its facade, while new construction will allow for a vertical addition with seismic upgrades. The existing store component will look as it does now with additions such as a new awning to better reflect the heritage of the store. More natural light in the store will make the building appear to be more translucent he said.  

Adams said that Streetworks began conceptualizing the Vancouver redevelopment in earnest in the summer of 2019 and that Streetworks is looking forward to a great partnership with the city and other stakeholders as the project moves forward. 

The mixed-use building will aim to bring in shoppers from across the Vancouver region. The store is well-serviced by transit including the SkyTrain subway system and bus system. Visitors will also be attracted to the food and beverage offerings in the new Hudson’s Bay complex which will include about 50,000 square feet dedicated to restaurant space. 

(Image: Perkins & Will-Hudson’s Bay Company-Streetworks Development)

Sustainability will be key to the project that Adams said will meet or exceed the aggressive goals set out by the City of Vancouver. The transportation hub  and unique bike storage facility are also part of a green initiative and Adams said that Streetworks looked to examples in Denmark and Sweden for inspiration. 

Last year the Hudson’s Bay Company announced that it had plans to redevelop its downtown Montreal flagship store with an office component as well, with the 655,000 square foot store being downsized to about 300,000 square feet. The downtown Calgary flagship was also reduced to three floors of retail space from six, and Streetworks says that it’s too soon to talk about that redevelopment opportunity just yet. 

It is looking as if the Hudson’s Bay Company is looking in time to capitalize on its real estate which means Calgary and other stores will likely see interesting redevelopment in years to come. Ian Putnam, President and CEO of HBC Properties and Investments, said that the company is looking at “unleashing the full value of our prime properties and reinvigorating the urban districts in which they are situated.” He went on to say, “HBCPI is excited and looking forward to unlocking the value and full potential of our flagship Vancouver building, and our entire joint venture portfolio with RioCan.” Besides the Montreal, Vancouver and Calgary stores, the other Hudson’s Bay stores jointly owned by HBC and RioCan include the downtown Ottawa flagship store and both landlords jointly hold ground leases for Hudson’s Bay stores including Yorkdale in Toronto, Scarborough Town Centre in Toronto, Square One in Mississauga, CF Carrefour Laval near Montreal, CF Promenades St. Bruno near Montreal, and Devonshire Mall in Windsor. 

BRIEF: Unique Jeep Showroom Opens in North Vancouver Mall, Costco Opens Massive Kelowna Store

By
Retail Insider
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Costco Wholesale Continues Canadian Expansion With 167,000 Square Foot Relocated Store In Kelowna

Costco Wholesale in Kelowna, BC (Image: Costco)

The retail giant has continued its strategy of opening new warehouses in communities that had older format stores.

Read more about the new Kelowna Costco

Bentley Launches Line Of Fully Vegan Handbags And Wallets

RIONA Vegan Collection (Image: Bentley Leathers)

The Montreal-based retailer has launched a line which addresses a trend towards eco-friendly and cruelty-free products.

Read more about Bentley’s new line

Capilano Mall In North Vancouver Adds New Concept Jeep Showroom

Foundation Auto Vancouver Jeep at Capilano Mall

The “Jeep Lifestyle Centre” features Jeep vehicles on display with branded clothing and merchandise, which is the first-ever enclosed shopping centre storefront for the Jeep brand.

Read more about the new location at Capilano Mall

Chick-Fil-A Opens Queen Street West Location In Downtown Toronto [Photos]

Chick Fil-A Queen St. Toronto

Atlanta-based quick-service restaurant chain adds sixth Canadian store.

Read more about the new Queen Street West Chick-fil-A

Buy-Now-Pay-Later Company Klarna Enters Canadian Market

Image: Klarna

The buy-now-pay-later platform includes an app and Klarna has already secured some big name retailers in Canada including homegrown brands Harry Rosen, Mejuri, and Frank And Oak and international players such as Sephora Canada, L’Oreal Canada, and GameStop among others. 

Read more about the new BNPL brand

1Related Retail Insider Briefs

Retail Sales in Canada Expected to Grow this Year as Leasing Activity Picks Up Significantly: JLL Report

By
Mario Toneguzzi
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Yorkdale Shopping Centre (Image: Dustin Fuhs)

Despite experiencing restrictive measures in major markets, Canada maintained strong retail sales as core retail sales in 2021 are projected to be up 13 per cent compared with 2019, and retail sales should continue to grow in 2022, says a report by commercial real estate firm JLL.

The ‘Canada Real Estate Outlook’ research report says leasing activity in the sector is expected to increase with the arrival of a more stable environment, likely in the second quarter of this year.

Tim Sanderson

“In Q1, rents should see their recovery trajectory slow, but they could quickly resume in the event of a short Omicron wave. While rates across Canada increased moderately in 2021, slowly approaching those of 2019, they could surpass pre-pandemic levels by the end of the year. Vacancy and availability rates have trended down. This will become more visible in 2022 and 2023 when deals are finalized and new stores open,” says the report.

Tim Sanderson, Executive Vice-President, Retail, for JLL, said the outlook heading into the second quarter of this year is one of optimism. 

“Retail leasing activity and interest in the marketplace seems to have picked up, certainly in the major markets of Canada,” he said. “I think it’s a couple of things. One, overall spending increased in late January and in early February as the restrictions were eased in the major markets. Restaurant sales jumped in Ontario and Quebec with the reopening of indoor dining.

“Travel expenses have rebounded after plunging during the holidays but they’re still at only about 40 per cent of pre-COVID levels in Canada. In the US, they’re back up to 80 per cent of pre-COVID travel numbers.

Calii Love on Bay Street (Image: Dustin Fuhs)

“And all that pent-up demand coupled with the amount of savings Canadians have in their bank accounts is saying to retailers hey it’s time to wake up and get going and open some stores again.”

Sanderson said real estate markets don’t like uncertainty and the retail sector has had way too much of it for way too long. 

He cited a previous JLL survey showing that 72 per cent of shoppers in 2021 said they would go to a physical store to buy or pick up goods compared to 67 per cent in 2019.

But the JLL report also outlines some challenges still facing the retail sector. Labour and supply chains have been bottlenecks to meeting increased consumer demand. The ongoing pandemic, especially during surges, prolonged supply-chain disruptions, leading to slow production and logistics delays. Job vacancies are expected to remain high after vacancy rates soared in both the accommodation & food services and the arts, entertainment & recreation sectors in 2021, says JLL.

“Labour is still a problem – especially in food services because so many people have left that industry that getting staff back is a major problem. I can’t understand where they’ve all gone or what alternative employment they’ve been able to come up with during COVID but that seems to be a real problem,” said Sanderson. 

“And supply chain is starting to ease a little bit but it’s still a concern now that we’ve seen this truckers’ thing (protest) hopefully come to an end, the biggest problem there was the food service, fresh produce for example coming into the country at those major border crossings. The sense is that supply chain is going to get resolved and going to get back to normal later this year if not early next.”

Future FLOCK Location in Scotia Plaza (Image: Dustin Fuhs)

The JLL report says restaurants should see a strengthening in business in the spring as the weather warms and quick service restaurants will continue to outperform other food services and drinking places. Fast food restaurants quickly rebounded from COVID-19 and have consistently seen increased sales from 2019.

“(Food services) scratched the bottom of the barrel and that entire food services industry was on its knees unfortunately. God forbid, we would have had another lockdown. It would have just been that much worse. Clearly it’s the independents which fuel a lot of the food service that are the hardest hit. Big companies can survive, they can shed costs, they can close stores, they can do a lot of other things and stay in business,” said Sanderson.

“But it’s been toughest on those people for sure. Sadly.”

Sanderson said Canadian retail sales in January increased 4.3 per cent largely driven by in-store spending which was up 14.8 per cent. The apparel sector has also experienced growth for the last 11 consecutive months as consumers refresh their wardrobes and dress to impress for gatherings and as they go back to work.

“Those are both good signs because those were categories that were hard hit for sure,” he said.

Chick-fil-A Opens Queen Street West Location in Downtown Toronto [Photos]

By
Dustin Fuhs
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Chick Fil-A Queen St. Toronto

Atlanta-based quick-service restaurant chain Chick-fil-A has opened a new Toronto location at 336 Queen Street West.

Chick-fil-A Queen Street West is part of the brand’s strategic Canadian expansion, which will see the store-count rise from the current roster of six to a planned twenty-five by 2025.

Chick-fil-A is the first tenant in a recently completed four-storey retail/office building, developed by The Pearl Group. Tenants of the former location included Le Chateau until 2013 and Urban Behaviour until 2018. David’s Tea also had a storefront pre-2009 until late 2014 before relocating to 278 Queen Street West, taking a Soft Moc location. The new 336 Queen building replaces these former businesses.

Chick Fil-A Queen St. Toronto
Chick Fil-A Queen St. Toronto

Independent franchised Owner/Operator Keisse Azevedo started with the brand in Florida and was on the opening team at Yorkdale Shopping Centre before relocating to open the Queen Street West location.

“I’m excited to contribute to one of the city’s most dynamic neighbourhoods by helping those in need in the Queen Street West community, providing personal growth opportunities to my team and showing care to all who walk through our doors,” said Azevedo.

The location will have approximately 100 full and part-time staff and will be participating in various community initiatives, including the Shared Table program.

This is the second location in Downtown Toronto, with the original being near the corner of Yonge and Bloor. The One Bloor East podium where the first location opened has seen a huge changeover since Chick-fil-A opened in September 2019, with McEwan Fine Foods exiting the property in December, Tokyo Smoke relocating to 94 Cumberland Street in Yorkville and Starbucks shuttering its location.

Michael Calderone and Bryce Dymond of brokerage Urban Reform Realty Inc. represent Chick-fil-A for its real estate selection in Canada.  

Chick-fil-A has more than 2,700 restaurants in the USA and Canada.

Additional Images

Chick Fil-A Queen St. Toronto
Chick Fil-A Queen St. Toronto
Chick Fil-A Queen St. Toronto
Chick Fil-A Queen St. Toronto

Canadian Retail News From Around The Web For February 23rd, 2022

By
Retail Insider
-
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.

PepsiCo’s Decision to Stop Selling Chips to Loblaws Symptomatic of Larger Problem in Food Industry: Charlebois

By
Sylvain Charlebois
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We recently learned that Frito-Lay, a brand owned by giant PepsiCo Canada, opted to stop selling to Loblaws after the retailer refused requests by Frito-Lay to increase their prices. Food manufacturers, when selling products to grocers, have suggested retail prices. With low profit margins, labour shortages, packaging issues and supply chain woes, inflation has been violently disruptive to the manufacturers. Not the first time this has happened. But this stop-sell’s scale is unprecedented, and the manoeuvre by PepsiCo is telling us that food manufacturers in Canada have had enough of grocers changing the rules to their advantage.

Unlike other industries, in the food industry suppliers will pay clients to do business. Such a strange environment for the neophyte. Manufacturers will pay listing fees to have the privilege of selling to grocers. It’s always been that way. But in recent years, grocers have arbitrarily charged more fees and—in some cases—reduced suggested prices without consent, a nightmare for manufacturers who need market discipline to protect brand equity. As a food producer, the last thing you want is a price war involving your own products. If things were free, we wouldn’t have much of an economy or jobs to support Canadians. So, supply chain order is critical to our entire food ethos; jobs and economic growth are at stake. Frito-Lay products are made in Canada, using Canadian potatoes grown by Canadian farmers.

The PepsiCo Canada and Loblaws rift was long overdue, and it was only a matter of time before the news came out. And make no mistake, many other manufacturers and other grocers are involved in a similar tug-of-war match. It’s happening in dairy, bakery and any food categories are impacted by this. Reporters just happened to only have PepsiCo Canada’s story, likely because someone wanted the public to know.

Canadians may be puzzled by the news. Why would Loblaws be blamed for keeping prices lower for consumers? Well, the answer’s not simple. For grocers, the game is easy as they have all the power in the world. Almost 90% of all the food Canadians buy is sold by only five retailers. Grocers want to remain competitive and will defend margins the best they can against market rivals. It’s an oligopoly. If Loblaws get a lower price, it doesn’t mean Canadians benefit all the time. They may sometimes, but shareholders are often the big winners.

But don’t expect empty shelves in the chips department, or in other sections of the grocery store, any time soon. Or at least, they won’t be there for long. We may see a few, temporarily, but it won’t last. Grocers will find a way to fill shelves with other brands including, likely, their own house brands. With current market conditions and the fact that the food inflation rate is north of 6% now, consumers will be trading down and seeking more house brands. Grocers know it, so the time may be right for them. Remember, they have the power and many weapons at their disposal.

Ever since the pandemic started almost two years ago, many food manufacturers including PepsiCo Canada have thought of selling food directly to consumers. They could control market conditions and gain more authority over their brands. The pandemic has made the supply chain more democratic and inherently more virtual. In terms of store merchandising, PepsiCo Canada is one of the best companies out there. It masters the middle mile to support in-store merchandizing for grocers. The company is incredibly efficient. They could extend their fleet of trucks to connect their plants with consumers. This is a definite possibility, but the transition from business-to-business to business-to-consumer is never easy. Many companies have failed miserably during the pandemic while attempting to pivot.

For years, during supply chain games, food manufacturers always had to blink first. PepsiCo’s move signals that the sector is tired of and desperate to stop “supply chain bullying”. And therefore, the industry desperately needs a code of practice, so companies can go to the arbitrator to avoid more market disruptions. This situation affecting the chips section of the grocery store is concrete evidence of how supply chain wars can impact consumers directly. We need supply chain peace; we need an authoritative code.

Some may feel they can simply live without PepsiCo products, or other products for that matter. Fair enough but remember: with fewer manufacturing options for grocers come higher retail prices, eventually.

MR MIKES Steakhouse Launches New Concept Location with Expansion Plans Targeting Secondary Markets: Interview

By
Mario Toneguzzi
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Image: MR MIKES in Merritt

National casual steak brand MR MIKES restaurants has just opened its 45th location in Canada with plans for further expansion with its latest design and floor plan.

The latest location opened in Merritt, BC, in a 4,000-square-foot space with an open concept and a centre bar that is one of the main features noticed by customers as soon as they walk into the restaurant. The brand said the new layout creates visibility and energy in the room where dining and socializing will enjoy the same space.

The first MR MIKES was opened by two brothers, Bob and Nick Constabaris. Over the past decade, the restaurant concept has embraced the heritage that was established back then but it also has been revitalized by Mike Cordoba, Al Cave, and Robin Chakrabarti with the introduction of the Steakhouse/Casual concept. 

Tony Zidar, Senior Vice President with the Burnaby, BC-based company, said the new concept is “a really welcoming space.”

Image: MR MIKES in Merritt
Image: MR MIKES in Merritt

“It’s just a blending in the middle that really kind of marries the energy into both sides (restaurant and lounge) without one trumping the other. I’m thrilled with the design. It’s a home run.”

The Merritt location is the brand’s 17th in BC. It also has 17 locations in Alberta, five in Saskatchewan, four in Manitoba and two in Ontario.

“It started off in BC and it was more of a steak and salad bar concept. At its height, we don’t have the exact number of how many units it got to, but it was over 80 and then went through a few incarnations of concepts throughout the years as concepts do,” said Zidar.

“In 2010, it was acquired by the current owners and rebranded as MR MIKES SteakhouseCasual which was kind of a new space in the steakhouse world. Obviously The Keg being the Godfather of classic steakhouses in Canada and that niche is filled. Our strategy was to go into different and smaller markets to fill that in with the need for a steakhouse but not wanting to compete with The Keg.”

Image: MR MIKES

“Obviously if you can not compete with the big gorilla it’s probably a wise strategy. Also our markets are different and we wanted to be open for lunch in all of our markets and we rebranded as more of an every day person’s, every occasion approach to a steakhouse. So great product, great steak offering, super beverage program in a little more relaxed atmosphere bringing some good humor to the brand.”

Zidar said the company plans to continue to expand and is in growth mode.

“COVID was troubling to restaurant growth and investors as everything was unknown when it hit. In our business, we talked about having a pipeline of leads and prospects and that for us has already started to pick back up again quite vigorously,” said Zidar. 

“We’re very happy with how it’s sprung back to life with the end of COVID obviously in sight. Our plans are to fill in holes in the West. We can certainly go into different markets, now even smaller or a closer shared market space, now that it’s a smaller footprint (with the new concept). So filling in the West but really going to begin to focus on the Ontario market where we have two stores.

“The Ontario market is, almost in our world, the same size as the rest of Canada when you look at market share. That’s pretty much wide open for us. We have a lot of leads out there right now that were put on hold by COVID but re-engaging them. We’re looking at the end of everything and getting business back to normal. We are setting our team back into growth mode where the past two years was really in support mode – keeping our existing franchisees maneuvering through COVID with all of its pitfalls and government regulations and the financial help available to them. It was really two years of assisting them. We came through with all of our stores still in operation and we’re thrilled with that. The franchise community really did an amazing job coming together, helping each other out, getting all the information they could through that time and now our reset is for growth again.”

Vancouver-Based RYU Apparel to Shut All But 1 Storefront

By
Craig Patterson
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RYU on Queen Street in Toronto (Image: Dustin Fuhs)

Vancouver-based RYU Apparel Inc. (aka “Respect Your Universe”) announced that it will focus on online sales as it shuts two of its three remaining retail storefronts. At one time the company had planned to open over 100 stores prior to financial struggles. 

The brand once had 11 stores and recently has been in the process of downsizing its brick-and-mortar presence after a restructuring last year. Now the company says that it will shut its Toronto and New York City storefronts while keeping its Vancouver flagship open for the time being. The New York City store closed Sunday February 20th and the Toronto store will shut on March 27th. 

The soon-to-close Toronto store is located at 361 Queen Street West and the shuttered New York City storefront was located at 76 N 4th Street in the Williamsburg area of Brooklyn. The company’s 5,600 square foot Vancouver flagship is located at 1745 W. 4th Avenue. Until recently RYU had stores in the California market and had planned to target major markets across North America as well as internationally. 

Exterior of Vancouver RYU store on 4th Street. Photo: RYU

In a press release, RYU says that it is instead focusing on e-commerce after seeing a boost in online sales.

Retail Insider did some digging and found sources saying that challenges with current company management are partly responsible for the brand’s issues including a lack of consumer awareness.

A source Retail Insider spoke with said that RYU had the opportunity to work with a well-known fashion designer who would have propelled the brand to new heights while bringing new manufacturing and supply chain capabilities. RYU’s headquarters would have relocated to Toronto. A deal never concluded after a brief meeting that went sideways. The source said that now “without a brand” RYU’s future as an apparel business is limited — indeed a concern for a publicly traded company. 

In 2014 Marcello Leone, part of the luxury retail family dynasty in Vancouver, took control of RYU with plans to make it a global brand with over 100 storefronts. A challenging retail environment and the pandemic halted much of the expansion and Leone himself exited his company nearly two years ago. 

Interior of Queen Street West RYU store. Photo: RYU

In April of 2020 Leone was paid the equivalent of $1.845 million in shares as a settlement and he exited RYU. Toronto-based entrepreneur Cesare Fazari was announced to be the new CEO and Chairman of the Board. At the time it was announced that e-commerce would become a focus for RYU, which also operated storefronts in the Vancouver, Toronto, New York and Southern California markets. Fazari, a self-made millionaire and notable personality known for his philanthropy, has invested heavily in RYU.

RYU was founded in 2011 as a mixed martial arts brand based in Portland, Oregon. Marcelo Leone was originally an investor and in 2014 he took over the business and incorporated in Vancouver. RYU’s intention at the time was to become the world’s top multi-discipline performance training and fitness brands. 

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