RCC banner 'In Conversation with Retail Leaders in Canada'
On November 23, Retail Council of Canada will host an exciting online session with Diane J. Brisebois, President & CEO of RCC, and Iain Nairn, President & CEO of Hudson’s Bay. Iain will discuss in detail how Hudson’s Bay is reinventing itself as a digital institution.
Hudson’s Bay is not only innovating as an e-commerce retailer, but in new digital spaces such as the Nintendo game Animal Crossing: New Horizons where players can dress their avatars in classic HBC prints. This is just one example of how this iconic company is integrating itself into Canadian consumers’ lives in creative and unexpected ways.
Iain will also discuss the future of fashion and beauty and the new role of the department store in today’s retail environment.
In Conversation with Iain Nairn, President & CEO of Hudson’s Bay
November 23, 2020
3 pm ET
Tickets: RCC Members $50 | Non-members $75
About the Series
In Conversation with Retail Leaders in Canada is an online series of one-on-one sessions between RCC President & CEO Diane J. Brisebois and Canada’s top retail leaders. This series offers an insider’s view of some of the most powerful and innovative retail companies in the country.
As cities, provinces, and the federal government move toward new business closures in many parts of the country, the national organization is urging them to provide immediate and full financial support to affected businesses. Earlier CFIB estimates suggest 160,000 small businesses across Canada may permanently close due to COVID-19, with the potential for the number to rise to 225,000.
CFIB Estimates 160,000+ Small Businesses in Canada to Close Due to COVID-19
Dan Kelly
Dan Kelly, the CFIB’s President, said that “business owners should not be asked to cover the costs of protecting society through fresh lockdowns of the economy alone. They need full, immediate and ongoing support in any jurisdiction where new restrictions are introduced”.
George Minakakis, a global retail executive with over 25 years of experience and CEO of the Inception Retail Group, said the retailers and small business owners who have enough liquidity to raise capital to see themselves through operationally over the next six to 12 months are the ones that are going to survive.
“That depends on how good their balance sheets look and so much of this is also dependent on what happens with this holiday season. They’ve always counted on this to break even. I shudder to think what it really is going to look like. It’s difficult to say. I don’t think there’s a business out there in the consumer sector that tries to forecast this out more than a month or two months at a time. It’s just difficult to do because it’s such a wild card,” said Minakakis.
“Look at what a difficult time the government is having to try and predict the virus itself. The virus grows and shifts. So does the consumer psyche. And without that level of confidence being there that erodes the ability of these businesses to bounce back. It really comes back to how strong their financials are and whether or not you can weather it out.”
It is the smaller retailers that will face the stiffest challenges.
George Minakakis
“It’s not impossible. If this was an economic depression, what would you be doing differently to bring traffic in. That’s what I ask everyone,” said Minakakis.
The possibility is there for the consumer to retract even more as governments and media continue to sound the alarm over the second wave of the virus.
“That worries me more than anything,” said Minakakis. “If you don’t have a decent holiday season as a retailer, then I wouldn’t be counting on Boxing Week for anything. The messaging right now from the government and whatever tactics they take I think all of this is affecting the consumer and without consumer confidence what have you got? You don’t have a lot,” said Minakakis.
“And I’m worried that’s going to permeate into the first quarter and in the first quarter we’re probably going to see some other larger businesses that didn’t fare well or haven’t been faring well look for credit protection or even bankruptcy.”
StatsCan Reports 5.2% of Canadian Businesses Considering Bankruptcy
A recent Statistics Canada survey found that 5.2 percent of Canadian businesses reported that they were actively considering bankruptcy or closure.
Over three-quarters (76.9 percent) of businesses had the cash or liquid assets required to operate. Over two-fifths (43.9 percent) of businesses reported that they were unable to take on more debt, while nearly one-fifth (19.4 percent) could not say whether they could take on more debt, said the federal agency.
StatsCan said close to one-third (30.4 percent) of businesses did not know how long they could continue to operate at their current level of revenue and expenditures before considering further staffing actions, closure or bankruptcy, while nearly one-fifth (17.5 percent) reported they could continue for less than six months.
“For a lot of them, we’re sort of in the Super Bowl time right now. There’s this fourth quarter. It’s the worst time to have this happen. You’re already going to see this, but now you’re going to see an even greater sense of it, is a move to online shopping,” said Winder. “More and more people are going to look at this and say I probably don’t want to go to a mall or won’t be able to go to a mall or a store potentially so I still need to do gift giving for the holiday and I’m going to try and do as much as I can via online shopping or curbside pickup or something like that.”
For many retailers, this is make or break time.
“A lot of them have been sort of holding on by a thread and they were counting on some good business, enough to pay some bills, generate some cash. Some have bought inventory and they’ve waited to pay suppliers until they get cash in the fourth quarter. Not the big guys. I’m talking more the small and medium guys. This could be make or break for them. This is sort of like their last stand to try to make it work,” said Winder.
“There’s been some lateness in terms of government programs with rent support. Sadly for retailers that’s really been one of the nails in the coffin for retail, especially small and medium sized retailers. The original program, and the failure of the original program that the government put forth, and then in the second wave of it that they’ve updated it . . . it’s been a little late. All this adds up.
“But I think the thing unfortunately that’s going to be the biggest impact is that we’re in the second wave now. If we could have avoided the second wave, some of them might have survived because they’d have some cash in flow. Yes they are going to do business online and that helps. But it’s not enough. It’s not enough to make up for it. For some retailers. There’s some retailers out there who are well capitalized, they’ve been able to negotiate with their landlords, they already had a robust online business before this hit. They’ve got deep pockets and they’re going to get through this. But it’s that small to medium size or fringe retailer. Even the medium size ones. Look at the Reitmans of the world and the Aldo’s. Every week or two we hear about another Canadian retailer going bankrupt. You’re going to see more of those sort of medium size fringe retailers going bankrupt. A lot of them will probably wait until January just because they’re going to try and make a go of it but you’ll probably see a fairly large uptick in bankruptcies in January or worse February when all the bills come due and they realize they don’t have the cash.”
Read More Retail Insider Articles about Small Businesses in Canada During the Pandemic:
The unique e-commerce retailer ShopNK has launched its new Drop004 which is a curated assortment of giftable products spotlighting local entrepreneurs, small businesses, as well as hard-to-find items to support those businesses during the challenging COVID-19 pandemic.
Natasha Koifman created the platform just over a year ago as a curated site with a conscience where a portion of sales are directed to certain charities and causes.
Every time new product is introduced to the site it’s called a new Drop.
“I felt that it was more important now than ever to support small businesses and causes. When I started ShopNK or had the idea for ShopNK last year, it was very much grounded in how do we support our community and how do we ensure that every person that shops on the site makes a deliberate decision and a deliberate choice to support certain causes because there’s a drop down where you get to choose yourself which cause to support,” said Koifman.
“Fast forward a year later we’re in the middle of COVID and what I’m seeing all around me is small businesses, just like charitable causes, need our support. So much of what I’ve curated for this Drop is showcasing our support for local businesses. So you’ll see things like Mary’s Brigadeiro. She’s a young black woman entrepreneur that owns a chocolate business locally here in Toronto. And we wanted to partner with her.”
NKPR supporting local entrepreneurs and businesses as part of ShopNK initiative. Photos: NKPR
1 of 3
The site also features for example an exclusive leather jacket in collaboration with Toronto-based leather brand NAMESAKE as well as cashmere winter accessories by local knitwear companies, LINE and The Cashmere Shop.
“What’s important to note is that the product on the site we buy outright. They’re not consignment. So we really are supporting local but at the same time people do get to choose where they want their charitable dollars to go. Ten percent of every sale goes back to a charity of their choice and they get to choose from a variety of charities that are on the site,” said Koifman.
Koifman created public relations firm NKPR in 2002 to combine her two passions: sharing stories of substance and championing important causes. She is recognized as one of Canada’s most powerful and innovative women in public relations and has been honoured with awards from the Women’s Executive Network (WXN), Notable magazine, BizBash, and others. She’s a sought-after speaker and commentator on public relations, marketing, popular culture and fashion.
An example of gifts from ShopNK. Photo: ShopNK
An example of gifts from ShopNK. Photo: ShopNK
The launch of ShopNK came at an opportune time as the retail industry continued to see the growing popularity of online shopping. Today, it’s even more so as the COVID-19 pandemic has forced many people to increasingly adopt e-commerce for their spending.
Koifman said those numbers will continue to rise.
“I think if you’re going to a brick and mortar store it’s for something very specific. It’s deliberate. There’s also a shift now where consumers are browsing online.
“I also think what we’re also seeing is that people care about where their products come from. People care who they’re supporting and they care about giving back to their community. I think we’ve heard it so much this year that we’re all in this together. We need to demonstrate that because if we are truly all in this together then we need to make sure we’re doing our part to support one another. That’s the sentiment and I think people are taking action.”
With 34% of Canadians Willing to Pay More for Local, has Drop004 by ShopNK Come at the Perfect Time?
Koifman cited statistics indicating that 42 percent of consumers believe that the way they shop will fundamentally change as a result of COVID-19 which is a high number. And 34 percent indicate they would pay more for local product.
“I don’t know if before COVID we necessarily thought about it in the same way. We definitely thought about community giving and giving back but we didn’t put faces necessarily in the same way to the businesses that are in our community. Now we do and we are because we feel for them,” she said.
During this holiday season, one of the big questions for retailers is how open will consumers be to spending especially given the fact that the second wave of coronavirus has apparently hit the country and economic uncertainty prevails.
Koifman said she believes people will be more mindful of what they spend but there will still be a spend. She cited a recent stat showing that 71 percent of Canadian shoppers will shop more at local small businesses.
Read More Related Articles With Initiatives Like Drop004 From Retail Insider:
SmartVMC, the massive 100-acre development at the Vaughan Metropolitan Centre located at Highways 7 and 400 near Toronto, is the crown jewel of SmartCentres REIT’s evolution ‘from shopping centres to city centres’. Redevelopment in the area will result in the creation of a vibrant new downtown Vaughan which will be a centre of culture, recreation, commerce, open spaces, and urban life.
The area was first identified for intensification and development in 2006 with the announcement of the extension of the TTC Subway Line 1 from Toronto. Construction on the TTC’s Vaughan Metropolitan Centre station was completed in 2017.
“Having the subway extend right onto our property was a game-changer in terms of the growth potential for the area. When the Vaughan Metropolitan Centre Subway station was announced, SmartCentres and the City of Vaughan collectively saw an opportunity to create something truly special – a world-class city centre from the ground up,” said Paula Bustard, Executive Vice-President of Development for SmartCentres REIT.
“The potential on our 100 acres of land is unprecedented. Diverse transit and accessibility options make the location exceptional, and it’s all being built on mostly vacant land which is allowing us to develop an urban core right out of the gate.”
In addition to the subway, the site is also serviced by a rapid transit bus system as well as the new York Regional bus terminal which is connected by underground tunnel to the Vaughan Metropolitan Centre Subway station. The bus terminal creates complete transit connectivity between North GTA neighbourhoods and Toronto’s downtown core.
1 of 5
Vaughan Metropolitan Centre showing PWC building. Image: SmartCentres
Vaughan Metropolitan Centre Image: SmartCentres
Vaughan Metropolitan Centre showing KPMG building. Image: SmartCentres
Vaughan Metropolitan Centre. Image: SmartCentres
Vaughan Metropolitan Centre showing PWC building. Image: SmartCentres
The subway ride from the Vaughan Metropolitan Centre to Toronto’s Union Station takes less than 45 minutes.
“The subway extension, rapid transit access and bus terminal represent a public transit and structural investment of approximately $4 billion on these lands,” said Bustard. “Additionally, we maintain excellent vehicular access via Highway 400 with close proximity to Highways 407 and 401.”
Province of Ontario Identifies Vaughan Metropolitan Centre as Urban Growth Centre
The area had been identified for many years by the Province of Ontario as an urban growth centre and now that the transit infrastructure is in place, the area is primed for high density intensification.
As the transit hub was being planned, SmartCentres set out to develop a master-planned community unlike anything in the area. At the heart of SmartVMC there will be a 9-acre central park that will stretch across the property, designed by world-renowned landscape architect Claude Cormier.
“We’ve planned the area around the park,” said Bustard. “The intention is to make the area feel like a park with buildings around it, rather than the inverse.” Groundbreaking for the first phase of the park is set to occur in spring 2021.
The Vaughan Metropolitan Centre’s new skyline is already well underway, with a proposed 20-million-square feet of new development planned for the area in coming years.
Construction of KPMG Tower, the first new building erected in SmartVMC, was completed in 2017. This 15-storey, Class-A, 355,000-square-foot office tower is fully leased to some of the world’s best-known companies such as KPMG, Harley Davidson Motorcycles, and Marc Anthony.
Click for interactive Google Map of Vaughan Metropolitan Centre and surrounding area.
Until KPMG Tower was built, Class-A office towers were uncommon/unconventional in Vaughan. SmartCentres was looking for the kind of tenants who wouldn’t otherwise be located in a typical suburban office towers.
“World-class cities have world-class office towers. Class-A towers legitimize our vision of a world class downtown. With thousands of people already working in SmartVMC’s office towers, plus daily subway commuters, you will really feel the energy of a metropolitan centre,” added Bustard.
SmartCentres opened a second office tower, continuing its strategy of opening office towers to generate buzz and energy in the area, with the recently completed PwC-YMCA building. The building not only features offices for PwC but also a 120,000-square-foot YMCA and brand-new 20,000-square-foot Vaughan Public Library, set to open in the coming months. These spaces will serve as community hubs right in the centre of Vaughan’s new downtown at the Vaughan Metropolitan Centre.
“Development in the area is centred around great architecture and a meaningful mix of uses throughout the site. Following the development of offices and community-centric amenities, our next builds were three, 55-storey SmartLiving residential towers called ‘Transit City,’” said Bustard.
“We sold all 1,750 condominium units very quickly. People are excited.” New residents recently began occupancy in the first two towers.
Not only are new residents moving into the area, but new retail tenants are as well. Toronto-based Balzac’s Coffee opened last month, and more acclaimed retail and renowned dining is expected to open in the area as development continues.
“We have over 3.5 million square feet built and/or under construction. The site is dynamic and is transforming day-by-day.” SmartCentres’ steady growth in SmartVMC has continued with groundbreaking ceremonies for three more SmartLiving residential towers: two fully sold-out, condominium towers containing 1,000 units; and one purpose-built, over 360-unit rental tower, for the first of its kind in the Vaughan Metropolitan Centre.
Rendering of future central park within Vaughan Metropolitan Centre. Rendering: SmartCentres
The three buildings will be centred around a one-acre park, also designed by Claude Cormier.
SmartCentres’ Relationship with Walmart Helped Shape the SmartVMC Development in Vaughan
SmartCentres’ longstanding relationship with Walmart has played a role in the SmartVMC development as well. As the plans for the new city centre progressed, Bustard said that SmartCentres worked in close partnership with Walmart to relocate the existing Walmart Supercentre from its current location, adjacent to the future 9-acre park, to a nearby location with improved highway visibility and access.
“We have an excellent relationship with Walmart and worked very closely and collaboratively with them to identify an optimal new location to build a state-of-the-art expanded Walmart Supercentre that will accommodate the growing needs of the neighbourhood,” said Bustard
Vaughan Metropolitan Centre Walmart Supercentre. Photo: Google
The all-new, 140,000-square-foot Walmart Supercentre has strong visibility from Highway 400. The new store features a first-of-its-kind-in-Canada, 10,000-square-foot drive-through eCommerce pick up point. This new Walmart opened October 22. The move frees up space for additional residential intensification in the heart of the Vaughan Metropolitan Centre.
SmartCentres has plans to use the space as a vibrant community hub with festivals, concerts, art, world-class dining, and all the things one can expect to find in a major urban centre.
In January 2020, SmartVMC’s Transit Square, a public square the size of Toronto’s Dundas Square welcomed the community, including over 180 youth sports teams, and NHL superstars for Rogers Hometown Hockey.
“We are excited to see the spaces we are building used by the local community,” said Bustard.
“We are proud to develop SmartVMC in our backyard, next to our home office, and see the community take full advantage of the area. Over the next few years, the area will become a bustling urban downtown, with 10,000 people coming and going every day.”
Santa won’t be coming to town this year at CF shopping centres across the country.
Cadillac Fairview, the operator of 19 malls in Canada, has announced it is moving all Santa Claus experiences to virtual and online only this year.
“We’ve had extensive conversations with government officials, conducted consumer research, and spoken directly with our guests in order to get our approach to this holiday season just right. Similar to what we’ve seen with other important events like weddings and birthday parties, we believe this temporary shift to online is the responsible thing to do in a very different year,” said Craig Flannagan, VP of Marketing, Cadillac Fairview.
Craig Flannagan
“While we know this may be disappointing for families who look forward to this annual tradition, we firmly believe this is the best decision and we are confident that our virtual Santa experiences will deliver all of the magic of the holidays.”
All across the country, shopping centres are deciding how the traditional Santa Claus experience for children will be conducted this year due to the COVID-19 pandemic. It’s really dependent on where they are located as every province has its own pandemic-related restrictions in place. Some shopping centres, like CF, are closing down personal Santa visits and going with the virtual experience. Others, like for example, Oxford-owned Southcentre Mall in Calgary will continue with the personal traditional experience but with a twist and with several health safety measures in place.
Cadillac Fairview Introduces Virtual Santa Experiences Amid COVID-19 Pandemic
Cadillac Fairview said it is introducing several new virtual Santa experiences to keep the magic and spirit of the season alive for Canadian families. CF Storytime LIVE with Santa will take place on Facebook LIVE! and feature 15-minute episodes in both English and French that will bring families together at home. Also new this season: virtual visits with Santa where families can have a video chat with Santa. Parents can arrange to receive a special video call with Santa while he’s busy at the North Pole preparing for the holiday season. For more information and to make reservations for these virtual experiences, people can visit their local property website, found on cfshops.com.
At Southcentre Mall, the Santa experience will be new this year. People will be able to capture photos at a brand-new Santa set, on the second level of the mall just outside of Hudson’s Bay, that will offer the same magical experience for families, while ensuring everyone remains safely distanced.
Enhanced sanitization protocols will also be implemented between each visit as people travel through Santa’s Christmas tree farm and make their way to his shiny red truck to have their photo taken next to the mask-wearing Christmas icon. Southcentre’s signature ‘Sensory-friendly Santa’ program will also return this year with designated booking times for children who have sensory sensitivities and mobility issues to visit Santa in a modified environment, making it possible for all families to experience this holiday tradition. Pet owners will also be invited to attend with their furry friends for pet photos with Santa on designated dates, explained Southcentre.
Southcentre Mall’s Santa Instagram announcement
It said this year’s Santa-scape will include one-way traffic flow, designated entrance and exit points, clearly marked waiting zones, minimal touch points, temperature checks and mandatory hand sanitization upon entry. People will be encouraged to book their visit in advance using the online booking system which will accommodate 10 photo sessions per hour on a daily basis up until Christmas Eve.
“We’ve pretty much revamped the whole Santa experience in order to address all the challenges with COVID-19,” said Alexandra Velosa, Marketing Manager, Southcentre Mall. “We moved from a common area into a contained space.
Alexandra Velosa (Linkedin)
“It has been a difficult year for everyone and we know it was needed just to spread some cheer and encourage good behaviour and kindness. We’ve been thinking of everything people have been through this year and Santa is such a beautiful family tradition that we took the challenge of delivering a program that is safe but at the same time brings a nice experience to the families so that they can enjoy Christmas as normal as possible.
“It’s going to be safe and social distanced but it’s not going to be the same we know that but we’re trying our best to at least build a space where memories can be taken and everyone can leave with a beautiful photo even though they are wearing a mask.”
Southcentre Mall Sees Early Beginning to Holiday Shopping Season
Southcentre Mall, like other shopping centres across the country, is seeing an earlier beginning this year to the holiday shopping season and it is responding with enhanced customer service, curbside pickup parking spots, and digital tools.
“While we recognize that holiday shopping will be different this year, we remain committed to providing shoppers with an exceptional guest experience that takes them beyond the commercialism of the season. We continue to prioritize the health and safety of all as we provide access to a number of cheerful holiday traditions, including a fresh take on visiting Santa,” said Velosa.
“We have also introduced a range of digital tools and services to help customers shop safely and efficiently and continue to be mindful of how the in-person shopping experience has evolved and impacted both our shoppers and our retailers. By planning ahead and visiting us online, shoppers can search for products before they shop, make note of curbside pickup zones and take advantage of ordering food for delivery or pickup.”
Retail Insider’s series of Mall Tours heads to Cadillac Fairview’s CF Pacific Centre in downtown Vancouver October 2020. Craig and Lee discuss what’s happening at CF Pacific Centre in a tour showcasing what’s open, a bit of history on the centre and what has closed recently.
Jo Malone standalone store in The Gardens Mall in Palm Beach Gardens Fl. Photo: The Gardens Mall
UK-based luxury fragrance brand Jo Malone will open three standalone stores in Canada next year as part of the company’s global retail expansion. The three boutique spaces will open in 2021 with two stores in Toronto and one in Vancouver.
The stores are part of a growth strategy for the brand, which for years has been carried in Canada at Holt Renfrew, as well as Nordstrom, Saks Fifth Avenue, and Sephora.
The Jo Malone brand, founded by a well-known perfumer by the same name, is known for its unique customizable fragrances that include perfumes, candles, bath products, and room scents.
Jo Malone Picks 3 Leading Shopping Centres in Canada for Expansion
For the Canadian expansion, Jo Malone chose three of Canada’s leading shopping centres to open its first stores. In Toronto, Jo Malone will open stores at CF Toronto Eaton Centre as well as at Toronto’s Yorkdale Shopping Centre. The 860-square-foot CF Toronto Eaton Centre boutique will be located on the third level of the shopping centre next to Club Monaco and across from jeweller European Boutique. The 600-square-foot Yorkdale Jo Malone boutique will be located next to Ladurée and across from the mall’s Chloé and recently-opened Louis Vuitton stores.
Exterior of future Jo Malone store in CF Toronto Eaton Centre. Photo: Dustin FuhsInterior of Jo Malone store at Palladium Mall in Mumbai. Photo: WWD
In Vancouver, Jo Malone will open an 800-square-foot boutique on the upper level of CF Pacific Centre in a retail space located between Canada Goose and a Zegna store, across from Harry Rosen. The upper level of CF Pacific Centre is home to other upscale retail tenants including Max Mara, Maje, and Mackage, with a large Holt Renfrew store across a pedway over Dunsmuir Street.
Jane Baldwin, Senior Vice President at Lennard Commercial Realty negotiated the deals on behalf of Jo Malone. Ms. Baldwin represents Estée Lauder brands in Canada as real estate representative. Cadillac Fairview is the landlord for CF Toronto Eaton Centre and CF Pacific Centre while Oxford Properties manages Yorkdale.
Jo Malone founded her eponymous brand in 1983 in London. The brand took off in the United States in the 1990s after Ms. Malone appeared on the Oprah Winfrey show. She sold the Jo Malone brand in 1999 to Estée Lauder which owns the brand to this day.
Eric Douilhet, General Manager at Estée Lauder Canada, spoke to Retail Insider about the expansion. He said that the new standalone Jo Malone stores are part of an effort for the brand to create a curated experience for customers.
Stores also act as a marketing conduit for Jo Malone to create brand awareness in markets. And in markets where Jo Malone has opened stores, sales in multi-brand retailers carrying the line also see a boost.
Mr. Douilhet said that the three Canadian Jo Malone stores will likely open in May or June of 2021, depending on when construction is finished. Jo Malone takes possession of the three retail spaces early next year he noted.
1 of 3
Map of top level of CF Pacific Centre with red arrow indicating location of future Jo Malone store.
Map of third floor of CF Toronto Eaton Centre with red arrow indicating location of future Jo Malone store.
Map of Yorkdale Shopping Centre with red arrow indicating location of future Jo Malone store.
He also noted that the Jo Malone store expansion is part of a direct-to-consumer movement for the beauty industry that has been ongoing for the past 15 years or so. Estée Lauder-owned MAC Cosmetics has operated its own stores for years, and more recently Estée Lauder has opened standalone stores for its brands including Le Labo and Clinique among others. Estée Lauder also recently regained control of the company’s Aveda stores in Canada which for 25 years were operated by a Canadian distributor.
Besides Jo Malone’s wholesale accounts in Canada, the brand also has a dedicated Canadian e-commerce site. Jo Malone also operates a store at Pearson International Airport in Toronto as part of a travel retail division.
Mr. Douilhet said that Estée Lauder will review the productivity of the three new Canadian stores before deciding to open any more locations.
We will follow up on this article when Jo Malone begins opening its Canadian stores next year.
In February 2020, just prior to the COVID-19 pandemic, DSV Global Transport and Logistics moved into their new 1.1 million-square-foot head office and warehouse facility in Milton, Ontario – the largest multi-client logistics facility in Canada. Also serving as the company’s head office, DSV’s Milton warehouse is almost at capacity less than a year after its opening.
Hungry for Space?
In response to the pandemic, DSV has kept supply chains flowing by providing clients with critical services and transporting key goods like PPE and medical supplies. With warehouse space at a premium, DSV’s Milton facility offers unique features such as 111,000-square-feet of climate-controlled space (15-25°C). Catering to the food industry and confectionary clients, DSV is ideally positioned to serve the Canadian B2B and B2C markets with proximity to Canada’s busiest Highway 401 and Pearson International Airport in Toronto.
Leading Logistics Through Change
Rob Chanona, Managing Director for DSV Canada’s Solutions Division, said the innovative and state-of-the-art facility will also serve as the model for other similar spaces, as the company expands its unique concept across the country.
Rob Chanona (Linkedin)
“COVID-19 has ultimately changed the way every business looks at their supply chain and its future. With rolling lockdowns throughout the country, e-commerce has grown exponentially, and businesses are looking to optimize the way they reach their customers on a multi-channel level. The ability to change and grow is defining a new logistics focus in 2020 and beyond,” notes Chanona.
“1.1 million square feet is definitely big, but there’s a value with being big that we’re trying to bring to the market. It’s a uniquely DSV initiative to create size, scale and flexibility, and the only way to do that is to go large,” he said. “It’s the largest multi-client facility in Canada. We’re the seventh largest physical warehouse building in Canada but we’re the largest multi-client facility.
“That is the essence of our strategy. Typically, if you’re a client in Canada that needs product distribution, regardless of the vertical you’re in, you typically need to find a facility to fit your business. The problem is, especially in a changing economy, you get that 100,000-square-foot space you need today, but then you’re constrained. You can’t grow within 100,000 square feet, and with the low vacancy rates that we’re seeing in the GTA, that’s becoming a more challenging problem for clients who are growing while also trying to distribute their products cost-effectively. The alternative that we’re bringing to the market is instead of investing in your own 100,000-square-foot space, our 1.1 million square-foot-facility is multi-client. We have more than one client in our Milton facility, giving our clients the potential to scale up and down as we flex with other clients that are in the same building. In this size and scale, we’re giving clients the flexibility of being somewhat transactional. If they grow, they pay more. If they decrease or must scale back, they pay less. It’s a way for them to manage the cost logistics in their business. Amplified by the pandemic, being able to scale your business to the market needs is critical, says Chanona.”
DSV, a global company with international headquarters in Hedehusene, Denmark (near Copenhagen), is a global transport and logistics service provider – with air and sea, road, rail freight, customs brokerage and warehousing services. The company has operated since 1976. Today, with over 55,000 employees in over 80 countries, DSV is the world’s 5th largest transport and logistics company.
“DSV encompasses the entire spectrum of supply chain services. We are segmented into three business units – Air & Sea, Road and Solutions (our warehousing),” said Chanona. “We provide the entire gamut for end-to-end supply chain management.”
DSV Milton Warehouse. Photo: DSV Solutions Inc.
What’s Next for DSV Canada?
DSV’s new facility in Milton provides a one-source solution for businesses. With fully racked shelving locations and 40-foot clear height, its size and scope can handle many client needs.
“As we look toward 2021, we know that many clients are redesigning their supply chains with a domestic focus. Investing in the future of Canadian logistics is where we want to be and grow,” says Rob Chanona.
“We have plans currently to expand in the lower Mainland of Vancouver, using a similar design model as Milton.. The reason for that is we have a lot of customers that want either a bi-coastal or a separate West Coast and East Coast distribution centre to address their supply chain requirements,” said Chanona.
“Based on the current needs and e-commerce growth in the Canadian marketplace, we could easily envision a Milton 2.0 in the next three to five years. Vancouver is going to be coming online in about two and a half years. It takes a little bit of financial strength to be able to invest in this type of strategy. It’s a sound strategy because we bring value to clients’ supply chains by having these large warehouses, so we’re convinced that this is the way to go.”
In Canada alone, DSV has over 2 million square feet of warehouse space.
Warehouse Automation. Photo: DSV Solutions Inc.
Automate to Innovate
“DSV is very big on automation. One of the additional things that we bring to the marketplace in these big facilities is the ability to implement automation. These large scale facilities allow DSV to invest in automation concepts such as warehouse robotics and moving goods to people,” said Chanona.
“One of the challenges with automation for a client in that 100,000-square-foot size range is automation is fairly capital intensive and you need a lot of volume to offset the costs. In a multi-client environment, what we do when we build partnerships in a certain vertical, like say fashion apparel, a retail fashion customer, is you put like-minded customers together and you build scale. It allows DSV to invest the heavy capital and then spread it over three to four clients that normally wouldn’t be able to do it on their own.”
Chanona adds that “Automation benefits everyone; clients and warehouse workers alike. It elevates the opportunities and showcases to clients how they can leverage efficiencies and scale to best suit their business.”
Bogner store at 131 Bloor St. W. in Toronto. Photo: Craig Patterson
German luxury fashion brand Bogner has opened its first corporately-run storefront in Canada on Toronto’s Mink Mile. The boutique opened in partnership with retail consultancy Flagship RTL and spells confidence in brick-and-mortar retail in Canada’s largest city.
Bogner’s ‘Winter Boutique’ to Stay Open on Toronto’s Mink Mile At Least Until March 2021
The Bogner ‘Winter Boutique’ pop-up store will remain open at least until March of 2021. Construction began earlier this month in a 3,320-square-foot space located in The Colonnade at 131 Bloor Street West. Bogner is located next to competitor Moncler, the Italian luxury outerwear and fashion brand which opened there in 2017.
Bogner on Bloor Street West in Toronto. Photo: Craig Patterson
Dark metal modular fixtures are used to showcase the product in the new Bogner store. Stock includes outerwear which Bogner is known for as well as ready-to-wear from the Bogner Sport and Fire & Ice collections. The store features LED video screens and ample use of mannequins to showcase various styles.
1 of 8
Bogner Interior on Bloor Street West (Toronto). Photo: Bogner
Bogner Interior on Bloor Street West (Toronto). Photo: Craig Patterson
Bogner Interior on Bloor Street West (Toronto). Photo: Craig Patterson
Bogner Interior on Bloor Street West (Toronto). Photo: Craig Patterson
Bogner Interior on Bloor Street West (Toronto). Photo: Craig Patterson
Bogner Interior on Bloor Street West (Toronto). Photo: Craig Patterson
Bogner Interior on Bloor Street West (Toronto). Photo: Craig Patterson
“We’re very excited to extend our business in North America, especially during these exceptional times. With FlagshipRTL as our partner, Bogner has been able to test new markets and strategies seamlessly, and without the traditional long-term financial commitments associated with opening stores. Canada has been an opportunity for Bogner for years. We want to connect with our longtime Canada fans in a way that is real, and a stand-alone pop-up store at the iconic Colonnade in the heart of Toronto’s luxury district is the most impactful way to do that,” said Heinz Hackl, co-CEO of Bogner.
The 70 year old Bogner brand features pricey fashions that will be right at home on the stretch of Bloor Street in Toronto is known as the Mink Mile. Ski jackets are priced in the $1,000 to $3,000 range depending on style.
The resort town of Whistler near Vancouver is also home to a Bogner ‘partner store’ run by a local franchisee. The only other North American storefront for Bogner is a permanent store in New York City’s Soho area. Bogner operates stores globally with a focus on European cities and resort towns known for skiing.
Bogner was founded in 1932 by Willy Bogner who imported skis, equipment, and Norwegian knit wear. His wife Maria revolutionized fashion in 1948 when she designed trousers made out of stretch material with stirrups — the dictionary now refers to these as ‘Bogners’. The iconic “B” zipper was introduced to garments in 1955. Willy Bogner Junior launched Bogner’s first ski collection in 1971 called ‘Formula W’. Last year Bogner relaunched its classic jackets with a modern interpretation and is now in expansion mode.
Close up of Bogner’s display mannequin. Photo: Craig Patterson
Close up of Bogner’s display mannequin. Photo: Craig Patterson
Click for Interactive Google Map of Bogner open on the Mink Mile in Toronto.
Bogner’s New Store Spells Confidence for Brick & Mortar Retail Amid COVID-19
Bogner’s move onto Toronto’s Mink Mile spells confidence for brick-and-mortar retail. The Bogner storefront acts as a brand activation which educates and creates awareness for the Bogner brand in the affluent Bloor-Yorkville area and beyond. At the same time, Bloor Street has struggled with vacancies following spring shutdowns due to COVID-19.
David Wyatt, VP of Retail Leasing at Morguard, said that there’s a possibility that the Bogner lease could be extended and could become a permanent location depending on performance. Morguard owns heritage-designated The Colonnade which was Canada’s first mixed-use building when it opened in 1963. The Colonnade’s retail podium originally consisted of a two-level enclosed shopping centre with about 50 stores. Over the years the retail component was transformed into a street-facing row of luxury stores along with a second-level William Ashley store and a newly opened restaurant called Amal. Last year Dior opened its largest store in North America at The Colonnade, joining other tenants including Coach, Prada, Cartier, Black Goat Cashmere, and Escada.
The previous tenant in Bogner’s space was also a pop-up. William Ashley operated there for several months prior to opening its new store at The Colonnade in the spring of 2018. And prior to that, Sephora operated a store in the Bogner space as well as in the adjacent Moncler space — Sephora relocated to 77 Bloor Street West in the fall of 2016.
Exterior of Thom Browne store in Yorkdale Shopping Centre. Photo: Thom Browne
Luxury fashion brand Thom Browne has opened its first Canadian boutique at Toronto’s Yorkdale Shopping Centre. It is only the fourth standalone Thom Browne location in North America and is part of Yorkdale’s move to solidify itself as the luxury retail epicentre of Canada.
The Thom Browne boutique spans about 1,430 square feet in a new luxury wing at Yorkdale which is anchored by a recently opened Louis Vuitton flagship at its north end. The Thom Browne boutique carries an expansive assortment of Thom Browne sportswear for both men and women as well as bags, accessories, footwear, eyewear, and Thom Browne Vetyver fragrances.
Thom Browne Opening Part of Yorkdale’s Move to Become Canada’s Luxury Retail Epicentre
Interior images of new Thom Browne Flagship at Yorkdale Shopping Centre. Photos: Thom Browne
1 of 4
Interior images of new Thom Browne Flagship at Yorkdale Shopping Centre. Photos: Thom Browne
The space itself features ample use of marble, with high ceilings creating a sense of drama. The store’s design is reflective of a mid-century office with signature slat blind-covered windows, “fluorescent” LED tube lighting, polished grey and black terrazzo flooring, and banker grey Bardiglio and Carrara marble walls. Mid-century furniture by American and French designers is featured throughout, including pieces by Dunbar by Edward Wormley, Knoll, Paul McCobb, Karl Springer, Jacques Adnet, and Maison Jansen.
Stan Vyriotes and David Wedemire of DWSV Remax Ultimate Realty Inc. negotiated the Thom Browne lease deal on behalf of the retailer. Oxford Properties is the landlord for the Yorkdale Shopping Centre.
The Yorkdale Thom Browne store is the fourth standalone location for the brand in North America. The three other stores are in New York City at 100 Hudson Street, at South Coast Plaza in Costa Mesa CA, and at the Miami Design District in Miami. Globally, Thom Brown operates 40 retail spaces including a mix of standalone stores and concessions in department stores. The majority of Thom Browne’s locations are in Asia according to its website.
In Canada, Thom Browne has been expanding its presence over the past several years with wholesale partners. That includes retailers such as Holt Renfrew, Harry Rosen (menswear), CNTRBND, SSENSE, and others. The Room at Hudson’s Bay carries the women’s line in Toronto and Vancouver.
Floor plan of Yorkdale Shopping Centre marking location of Thom Browne flagship. Image: Yorkdale Shopping Centre
Another Standalone Thom Browne Store Could Follow in Vancouver
A Thom Browne representative noted the possibility of a second standalone Thom Browne store that would be located in Vancouver. It’s not yet known where it would locate, though the city’s luxury retail clustering for the most part is centred around the 1000 block of Alberni Street.
American fashion designer Thom Browne founded his brand in 2001 with made-to-measure menswear. His background prior to founding the clothing line included a position as a salesperson at Giorgio Armani in New York City before designing for Club Monaco. He was said to be instrumental in starting the trend of slim-fitting menswear with collections inspired by mid 20th century American style that included details such as grosgrain trim and short trousers shown with exposed ankles. His first line of ready-to-wear menswear launched in 2004 and he won several awards early on before launching womenswear for Brooks Brothers’ Black Fleece label in 2007. The first women’s Thom Browne collection debuted in 2011.
Toronto’s Yorkdale Shopping Centre has become the densest clustering of luxury brands in Canada, surpassing Toronto’s Bloor-Yorkville as well as Vancouver’s Alberni Street ‘luxury zone’. Yorkdale features locations for brands such as Valentino, Bottega Veneta, Balenciaga, Chloé, Bulgari, TAG Heuer, Furla, David Yurman, and others which have no other standalone storefronts in Canada. Other luxury brands on the way include Celine and Golden Goose. And next week Yorkdale will unveil a 25,000-square-foot Avengers S.T.A.T.I.O.N entertainment centre that will operate for several months.
