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Cannabis Retailer Launches Unique Shipping Container Retail Space with Expansion Plans

Rendering of future Alchemy store. Photo: alchemy
Rendering of future Alchemy store. Photo: Alchemy

Alchemy is the newest addition to Toronto’s cannabis retail landscape. The Toronto-based brand launched its PopCann store on June 6 and has an aggressive expansion plan set for the coming months.

Richard Browne, Alchemy’s Founder, is focused on creating an experiential, full-service, immersive cannabis experience. Alchemy is designed to be a high-end, boutique cannabis retailer, which is currently housed in a reimagined shipping container located at 2464 Dufferin Street in Toronto.

Alchemy’s PopCann location is a temporary home for the brand while the permanent location is being built on the same property. The flagship store — which is still under construction — is being designed by Toronto-based, multi-disciplinary design firm Studio Paolo Ferrari and managed by Toronto-based construction management company Elevate. Created with the goal of fusing the outside world with the inside, a skylight feature will allow the sun to penetrate the space and bring life to a tropical plant area within the store. The space will also include eight small window digital kaleidoscopes, creating a transcendent, other-worldly environment.

Still in the early stages of its initial launch, and yet to exist in a permanent space, Alchemy saw a good turn out during its PopCann launch. With many excited to experience the interior of the store, converse with highly-trained-staff, and browse available products. Others were still cautious of the potential risk due to the COVID-19 pandemic, but Browne says that “every precaution has been taken to ensure the health and safety of our customers and staff. All employees are wearing masks and gloves, all touch points are sanitized regularly, we only allow a very limited number of customers in the store at a time, and we have installed an in-store ventilation system which hyper cleans the air. The environment would be considered very low risk. We also offer delivery services and curbside pickup for those who are still unsure about shopping in-store”.

Exterior of Alchemy storage container that served as the brand's home for the past few months. Photo: Alchemy
Exterior of Alchemy storage container that currently serves as the brand’s home. Photo: Alchemy

Due to be completed within the next two months, Alchemy’s flagship location aims to provide an elevated cannabis retail experience. Browne talks about his vision of an immersive, hands-on cannabis experience when cultivating the idea for Alchemy. “I wanted to create a space where people can learn about cannabis and the variety of benefits derived from it. To guide and inform the customer journey is a big part of the Alchemy experience. All of our staff are highly trained. They all have Ontario legal store experience, they are all bud tenders and have taken cannabis sommelier courses. It’s a great asset for customers who would like to learn more about cannabis and what products would best suit their needs. I highly encourage people to come in and talk to the staff. That way more people can enjoy the benefits of the industry. It’s definitely the best way to purchase the product.”

The Alchemy website describes the brand as “the modern reinvention of a licensed masterpiece cannabis store, contrasting elements of nature and technology in a temple of transformation for an immersive experience. Our mission is to provide each visitor with the highest quality of products and services tailored to their unique needs. We strive to give back to the community and educate, to challenge traditionally held stigmas of cannabis usage”.

Taking the past few months of uncertainty in its stride, Browne notes that while Alchemy’s construction was interrupted by COVID-19, things are on-course to open at the end of the summer, potentially the perfect time to open a new retail store as everyone is itching to shop and browse once again.

Despite the initial hold-up, there are big plans in the works, some that include expansion across Ontario. “We already have plans for six more locations all across the province. Potentially introducing another brand alongside Alchemy. We also hope to continue to use the shipping container as a temporary location while we build new stores, in much the same way we’re doing currently.”

Cannabis retail has become a major player in the Canadian retail landscape since it became legal in 2018. With many emerging brands competing in the same market, it is refreshing to hear Browne say that the community is encouraging of each other and learning together as a group. “Because the industry is so young people tend to work together and help each other. The sense of competitiveness isn’t as strong as it is in other industries.” Effectively the trailblazers in this aspect of Canadian retail, the numerous emerging Canadian cannabis retail brands are now navigating this new territory with the added pressure of COVID-19, however it would seem most are going from strength-to-strength.

Last week, Retail Insider reported on the aggressive expansion of Choom, another Canadian cannabis retailer successfully navigating the waters of COVID and cannabis. The week before also saw Retail Insider report on the rapid and aggressive expansion of another cannabis retailer, the well-known brand Friendly Stranger.

The movement towards boutique cannabis brands is gaining momentum despite the unanticipated economic downturn due to COVID-19. It will be interesting to watch the innovation that is forecasted within this particular sector of Canadian retail.

With some cannabis retail locations leaving little to be desired, Alchemy is dedicated to creating a sophisticated experience — one that provides the customer with the tools, knowledge, and quality products needed to elevate their cannabis experience — “a magical journey from ordinary to extraordinary”.

Retail Insider looks forward to the opening of Alchemy’s flagship location in the coming months and will provide updates when it opens.

Changes in New and Renegotiated Retail Leases Expected Due to Pandemic: Expert

The disruption brought on by the COVID-19 pandemic could lead to changes in leases for the commercial real estate industry impacting both tenants and landlords.

Luciano D’Iorio, Managing Director of Quebec for commercial real estate firm Cushman & Wakefield, said anyone who is looking to renegotiate their lease right now or looking into their lease is certainly going to add clauses that will protect them from such an event like the coronavirus crisis.

“These things happen I guess we say every 100 years or so. So some clauses come and go. Speaking from a Quebec perspective, there used to be clauses in leases that discussed Quebec seceding from the rest of Canada. Of course today in 2020 we don’t see those clauses anymore,” said D’Iorio.

“A lease is an evolving document. And so I think we’re going to have some clauses that are going to be included. It’s a document that has to be win-win for both sides. Both from the investor’s perspective and from the occupier’s perspective.

“I’m sure the tenants are going to want to make sure they protect themselves in a similar situation where if the government comes in and decrees a shutdown then there’s a language for that in the lease. And of course landlords who are typically the sandwich in these situations because they are dependent on their tenants paying rent and they are subservient to their lenders where they have to pay the mortgages, they’re going to want some language to protect them from a similar situation.”

For on the street retail in Montreal and Quebec, some retailers have already started to reopen. The Quebec government has let those retailers open. In Quebec, obviously the essential services were open throughout. With the high street retail, it started to open over the last couple of weeks “and we’re still waiting for word on the malls. I believe it’s going to be the middle of the month. So the effects are different,” said D’Iorio.

“The retailers on the street are starting to open up. They’re starting to see some customers come back. We’ve seen lines forming. Some media reports said it looked like a Boxing Day sale was going on at some of these retailers because people were lined up to comply with social distancing issues. They had to line up on the exterior of the store.

“I think there’s some pent-up demand that’s there. Some of the electronic stores or some of the office supply stores these weren’t opened and were only using delivery services, I think people now just want to physically walk into the stores and actually see and touch what it is they need to supply their home office or just to supply themselves.”

There’s no doubt the retail landscape will see some big changes in the near-term. D’Iorio said that until we see a treatment or vaccine it will be difficult to say how long changes in the retail environment will continue such as wayfinding in stores and plexiglass at cash registers.

“I think going forward we’ll probably see more self-service checkouts. We obviously saw that coming in over the last few years. So we may see more of that and maybe more move towards AI (Artificial Intelligence) where there’s less interaction and less touching of surfaces and touching of products. If you’re handling your own checkout, there’s less interaction with a person. So I would see that maybe we’d see more of that in other businesses beside the ones we’re used to,” said D’Iorio.

Retail is such a tactile experience. People need to touch things. They need to try things. In clothing, they try things on. How will that unfold down the road?

“I think the short term it will be a challenge because when we talk about clothing, trying on clothing, and then how do we treat that clothing once somebody has tried that on, does it have to be steam cleaned and does it have to be removed into a separate area of the store and kept in confinement for 24 hours or so. So certainly in the short term the apparel business is going to have some challenges. It will be interesting to see how they deal with that,” said D’Iorio.

“People need to see and touch and feel and experience. We’re moving towards a retail environment that was more experiential and so people want to be part of something. We can get most things online today but yet we still see lineups in front of electronic stores, we still see lineups in front of different stores that weren’t open during this essential services period. I think there’s hope for a long-term play there.”

In the short-term D’Iorio said there will be change in behaviour as people adjust to the current realities. In the medium and long-term, he believes people are looking to interact with others.

“So real estate is going to play a part of that and real estate is a part of our daily lives. What are people saying to us now? People are saying gee I miss having a coffee, going to the local cafe and just sitting and having a coffee with my friend. Or going out and enjoying a meal,” said D’Iorio. “We all have kitchens but we still miss that restaurant, dining and experience. Short-term for sure challenges but medium and long-term we hopefully as a collective will come out of this and of course it will be dependent on a vaccine or some sort of treatment for it.”

ARITZIA’s Brian Hill Talks About Resilience with Diane J. Brisebois

PHOTO: ARITZIA

By Retail Insider

Retail Council of Canada is announcing its second online webinar in a series called In Conversation with Retail Leaders in Canada. ARITZIA founder and CEO Brian Hill will speak with Retail Council of Canada president Diane Brisebois at 4:00 pm Eastern/1:00 pm Pacific on Wednesday, June 17, as part of the webinar series featuring one-on-one conversations with Canada’s top retail leaders.

Tickets for the webinar featuring Mr. Hill can be purchased here.

Since the start of the COVID-19 pandemic, consumers across Canada have embraced e-commerce and in some retail categories, online sales have advanced years into the future. One brand that understands this, having handled soaring growth in digital sales over the past three months, is Vancouver-based womenswear retailer ARITZIA. During the webinar he will discuss how to survive – and thrive – during monumental upheaval.

In Conversation with Retail Leaders in Canada is an online series that launched this month featuring in-depth conversations between RCC President and CEO Diane J. Brisebois and Canada’s top retail leaders and industry insiders. The webinar series aims to assist everyone in the retail industry who has been forced to reconsider how their organization’s teams, operations, inventories and policies will need to adjust to ensure a strong retail recovery.

Following Mr. Hill’s segment on Tuesday, the In Conversations with Retail Leaders in Canada webinar series speakers include:

  • Haio Barbeito of Walmart Canada, June 24 2020 at 4:00pm – 5:00pm EDT

  • Calvin McDonald, CEO lululemon athletica Inc. June 30, 2020 12:00pm-1:00pm EDT

  • Greg Hicks, President & CEO Canadian Tire Corporation Ltd., July 15, 2020 3:00-4:00pm EDT

[Buy tickets to be part of the conversation with Brian Hill]

*Partner content. To work with Retail Insider, email: craig@retail-insider.com

209: Bankruptcy Filings (Bestseller, Comark, SAIL) & Canada Goose Focusing on Own Stores

209: Bankruptcy Filings (Bestseller, Comark, SAIL) & Canada Goose Focusing on Own Stores

This week Craig & Lee talk about the recent bankruptcy protection filing announcements and Canada Goose’s latest announcement. The discussion touches upon Bestseller, Comark, and SAIL’s latest filings for bankruptcy protection as well as Canada Goose’s continued shift to direct-to-consumer sales.

The Weekly 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.

Article Details

  1. Parent Companies for Jack & Jones, Bootlegger, Cleo, and Ricki’s File for Bankruptcy Protection in Canada
  2. Sporting Goods Retailers SAIL & Sportium File for Bankruptcy Protection
  3. Canada Goose Pulling Back on Multi-Brand Retailers as it Focuses on Direct-to-Consumer Store

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Lowe’s Announces 1.2-Million-Square-Foot Distribution Centre in Alberta

RENDERING: LOWES

Retail giant Lowe’s Canada plans to operate a new 1.23 million-square-foot distribution centre just outside of Calgary as part of its strategy to optimize its distribution network to better meet the needs and expectations of its in-store and online customers.

The new distribution centre is a partnership with the Highfield Investment Group and will cost more than $120 million. It will be located in the High Plains Industrial Park within Rocky View County and is scheduled to open in the fall of 2021.

“This new distribution centre will allow us to substantially enhance our distribution network capacity and serve our Lowe’s and RONA corporate stores and customers, as well as our RONA affiliated dealers, more efficiently throughout Western Canada,” said Gregor Stuart, Senior Vice-President, Supply Chain at Lowe’s Canada, in a statement.

The retailer said construction of this new distribution centre is beginning this month. Ideally located in the High Plains Industrial Park, it will consolidate the capacity of several existing Lowe’s Canada satellite warehouses and regional distribution centres located in the Calgary market, said the retailer. Lowe’s Canada’s existing distribution centre, located at 2015 60th Street S.E. in Calgary, will not be impacted by this project and will remain in operation.

In a statement, Valérie Gonzalo, spokesperson for Lowe’s Canada, said: “Our future DC in High Plains Industrial Park offers a lot of room to accommodate our large space requirement as well as future expansion capability. From a transportation standpoint, the site offers highly-efficient access to Highway 2 and Stoney Trail. High Plains is ideally located to serve Calgary, Edmonton and many other cities throughout Western Canada. We also appreciated the fact that the 1,100-acre industrial park has been conceptualized with a focus on the environment through an innovative and sophisticated stormwater management system that naturally filters and cleans all stormwater through a series of on-site ponds and wetlands.”

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Based in Boucherville, Quebec, Lowe’s Canadian business, together with its wholly-owned subsidiary, RONA inc., operates or services more than 470 corporate and independent affiliate dealer stores in a number of complementary formats under different banners. These include Lowe’s, RONA, Réno-Dépôt, and Dick’s Lumber. In Canada, the companies have more than 26,000 employees, in addition to about 5,000 employees in the stores of independent affiliate dealers operating under the RONA banner.

Adrian Munro, President, Highfield Investment Group, said “High Plains Industrial Park is centre ice for corporate Canada’s western distribution centres and e-commerce fulfillment facilities due to its excellent transportation efficiencies, outstanding labour force, and compelling rent economics.”

Munro said Rocky View County has become the preeminent location for western Canada distribution centres and ecommerce fulfillment facilities. 

“Over the past five years, Highfield has developed, or is developing, nearly five million square feet of industrial space and is home to Sobeys, Lowe’s, Smucker’s, The Home Depot, CHEP, GFS and many others. Highfield has been able to establish High Plains as the ‘centre ice’ location for Corporate Canada due to transportation efficiencies, an outstanding labour force, compelling base rent and real estate tax savings, and best in class facilities designed and constructed by our highly experienced consulting and contractor team.  Additionally, Rocky View County welcomes new business and efficiently processes permit applications allowing for expedited development schedules and earlier tenant occupancies.”

Marshall Toner, Managing Director and National Lead, Industrial – Canada for commercial real estate firm JLL, who represented Lowe’s in the deal, said the Balzac area is an attractive one for big companies.

“First of all, for the deal I just completed there are few places that you could do 70-75 acres of land that could meet the timing,” he said.

“I just think with the land pricing and the property tax situation, it’s very compelling for companies with a large square footage to give that strong consideration out there.”

Michael Kehoe, broker/owner of Fairfield Commercial Real Estate in Calgary, said the Balzc commercial hub has quietly evolved into a significant destination for large-scale business ventures. 

“The momentum began 10 years ago with the development of the CrossIron Mills regional shopping centre by Ivanhoe Cambridge. Major logistics facilities such as the New Horizon Mall, a casino and racetrack plus the Amazon distribution centre followed and the momentum continues with the recent Lowe’s announcement of a new 1.23 million square foot distribution centre. Balzc enjoys the close proximity to the YYC Calgary International Airport, the Calgary ring road and the Queen Elizabeth Highway #2 highway network. Rocky View County is a development-friendly jurisdiction with a favourable taxation structure that will continue to attract many new large-scale facilities.”  

INSIDE A LOWE’S DISTRIBUTION CENTRE. PHOTO: LOWE’S

Highfield’s portfolio includes High Plains Industrial Park, a 1,100-acre master-planned industrial park and is home to many corporate clients such as GFS, Smucker’s, Borger, Sobeys and Penske. High Plains has close to three million square feet since construction began in 2012.

In the last few years, the Balzac area, just north of Calgary city limits, has become a popular spot for the industrial real estate market with the addition of numerous buildings in the distribution and warehouse space. Over the years, companies have set up shop in the area because of its more friendly business environment and reduced costs compared with the City of Calgary.

“Rocky View County is delighted to welcome Lowe’s Canada. The County has focused on attracting world-class logistics facilities through strong transportation corridors, competitive taxes, and reasonable regulatory requirements. We know the Lowe’s Canada distribution centre will be a great success for the company and the community,” said Reeve Greg Boehlke, Rocky View County councillor.

Alberta Premier Jason Kenney, in a statement, said: “This is great news for Alberta. The construction of the new Lowe’s Canada distribution centre will create jobs for Albertans when they are needed most. Once complete, this new facility will employ Albertans for years to come, and demonstrates a vote of confidence in our province’s future.”

More than Half of Canadians will Avoid Restaurants for the Foreseeable Future: Study

A new survey on COVID-19 suggests 52 percent of Canadians intend to avoid restaurants for the foreseeable future.

The Angus Reid survey found that physical layout appears to be the most important issue for people as 26 percent of Canadians intend to avoid restaurants for this reason. About 10 percent of Canadians say they will avoid establishments due to their food safety reputation. And about one fifth, or 22 percent, of Canadians will avoid establishments for an undisclosed reason.

This shows that even when businesses reopen, they will need to work hard to gain back the confidence of customers. British Columbia, at 56 percent, has the highest rate of respondents who intend to avoid restaurants due to public health concerns, followed by Ontario at 55 percent. The lowest rate is in Saskatchewan, at 37 percent, according to the survey.

Sylvain Charlebois, the lead author of the report and Professor, Food Distribution and Policy, Faculties of Management and Agriculture, Dalhousie University, said consumers have a foot on the gas as well as having a foot on the brake.

“Canadians are split. They’re not sure what they’re going to do. Some are eager of course. About one Canadian in five are eager to go out as soon as possible but there is a majority of Canadians who are unsure. They’re not sure if going to the restaurant is a good idea and frankly I would say that after three months of hearing about COVID, and only about COVID, I think people are just kind of mesmerized a little bit,” said Charlebois.

“They don’t think beyond their kitchen. And frankly I think for operators the biggest challenge, the biggest competitor, that they’re now facing is our own kitchen to get us out of there and into dining halls, on patios. It’s going to be very difficult to do.”

But results of the survey also suggest many Canadians kept ordering food regularly from restaurants during the pandemic. It found that 64 percent of Canadians have ordered food at least every two weeks from a restaurant. Saskatchewan has the highest rate of respondents who ordered during the pandemic at 76 percent. The Atlantic region has the lowest at 58 percent. Younger people were more likely to order out from a restaurant. It said 81 percent of respondents between the ages of 18 to 34 years old had ordered from restaurants, the highest rate among age groups. About 29 percent of Canadians ordered from restaurants at least once a week, and nine percent have ordered food once a week since the beginning of the pandemic.

“Canadians appear to have never given up on restaurants, but when you’re at home, there are limitations to enjoying food prepared by a restaurant,” said Charlebois.

“It was a pleasant surprise. Clearly Canadians haven’t given up on restaurants. I actually didn’t expect that percentage to be as high as that to be honest. You can see that people really wanted to support their local outlets and continue to do so for 12 weeks.

“The other pleasant surprise was to see the number of Canadians wanting to support independent operators as well. That was actually quite pleasant to see. A lot of people are focusing on independent operators knowing that they don’t necessarily have the same kind of support as major chains would. That was actually quite reassuring as well.”

When asked the type of restaurant they would first visit, 64 percent said independent while 39 percent said franchise/chain.

When asked what they were missing the most from not going to a restaurant, 37 percent said enjoying time with family and friends and 22 percent said just being outside the house.

Howard Ramos, Professor of Sociology at Dalhousie University and one of the report’s collaborators, said that “people say they won’t rush back to restaurants, but almost everyone plans to go back eventually. This will be hard for SMEs who may already be on the brink of failing, and it means gift cards or other means of supporting them in the reboot is needed.”

Respondents in Ontario appear to be most concerned about a potential second COVID-19 wave as 43 percent of Ontarians plan to wait until such a second wave has occurred. Alberta ranks second in being most concerned by a second wave at 33 percent.

“I think it’s going to be a work in progress. Some people actually feel that restaurant operators will cut corners in order to make sure that they are profitable because it’s not going to be easy for them,” said Charlebois. “I don’t believe that at all. I actually do think that operators will want to make sure that Canadians are as safe as possible back and in front of the house. It doesn’t matter if it’s in the kitchen or on the patio where food and drinks are being served. I do believe that operators are fully aware that they’re dealing with a customer base that is essentially shell-shocked by what has happened over the last three months.

“COVID came quite violently in our lives. I think we need to appreciate that and restaurant operators will actually feel that they have a duty to bring some fun back into our lives.”

When Canadians were asked what they expect to see when they visit a restaurant as they reopen, 78 percent said they expect to see more personal protective equipment worn by staff, 60 per cent expect to see more plexiglass. At the same time, 36 percent of Canadians expect slower service and 29 percent expect menu changes or fewer choices. Interestingly, a total of 12 percent expect to see mannequins and dolls to fill seats to make an establishment look full.

Nordstrom Reopening Most Remaining Canadian Stores on Thursday

Nordstrom at CF Sherway Gardens. Photo: Nordstrom

On Thursday, June 11, upscale Seattle-based retailer Nordstrom will open the remainder of its full-line Nordstrom stores as well as select off-price Nordstrom Rack stores in Canada. All of Nordstrom’s stores closed temporarily in March due to the COVID-19 pandemic and some in British Columbia and Alberta had already reopened after government restrictions were lifted.

While retailers in enclosed shopping malls have not been permitted to reopen in Toronto, all of Nordstrom’s stores in the city feature exterior entrances thus allowing them to reopen as per guidelines. Nordstrom operates three full-line stores in Toronto as well as three Nordstrom Rack units in the region.

Locations due to open on June 11 include the following:

  • Ontario: Nordstrom CF Rideau Centre, Nordstrom CF Sherway Gardens, Nordstrom Yorkdale Shopping Centre, Nordstrom CF Toronto Eaton Centre, Nordstrom Rack Ottawa Train Yards, Nordstrom Rack Vaughan Mills, and Nordstrom Rack Heartland Town Centre

  • Alberta: Nordstrom Rack Deerfoot Meadows and Nordstrom Rack South Edmonton Common

These locations will join the already-opened full-line Nordstrom store in Calgary’s CF Chinook Centre which opened on May 28, as well as the Nordstrom flagship at Vancouver’s CF Pacific Centre which reopened on May 22. This announcement means that all Nordstrom Rack locations will once again be open to the public, bar the location on Bloor St. in Toronto, which is set to reopen soon.

NORDSTROM RACK, VAUGHAN MILLS. PHOTO: NORDSTROM RACK

Nordstrom wrote on its blog Nordstrom Now: “On behalf of the entire team at Nordstrom, we’d like to take a moment to say thank you again for your loyalty and support. The past several months have been unlike anything we’ve ever experienced, and we’re working hard to evolve so we can continue to show up in a meaningful way for you, our employees and communities. We want to continue to bring you the service and convenience you need, even if it may look a little different than it has in the past.”

Despite the continued online presence and availability of curbside pickup (which will continue to be offered at all Nordstrom stores at all times with the exception of Nordstrom Rideau Centre), Nordstrom had closed all stores across the country in March, at the beginning of the COVID-19 outbreak in Canada. Now, as the numbers are decreasing and the curve is slowly being flattened, Nordstrom is taking a phased, market-by-market approach to reopening its stores. The company has reiterated the importance of maintaining the health and wellbeing of its employees, customers, and surrounding communities, and so are taking necessary steps to ensure Nordstrom stores remain in alignment with the government guidelines.

NORDSTROM AT CF CHINOOK CENTRE. PHOTO: CANADIAN BUSINESS

Nordstrom have laid out the precautionary steps it will be taking moving forward. Some updates include:

  • Conducting temperature checks and health screenings for our employees before they come into work

  • Providing face coverings for employees and customers

  • Taking steps to allow for social distancing of six feet or more, including limiting the number of customers and employees in the store

  • Increasing cleaning and sanitization

  • Modifying the fitting room experience

  • Continuing to offer contactless curbside services at our full-line stores

  • Pausing or adapting high-touch services and customer events

  • Keeping tried on or returned merchandise off the sales floor for a period of time

  • Altering hours of operation

For further details on the steps being taken in response to COVID-19 can be found on www.nordstrom.ca and additional information on each store is available on Nordstrom’s Store Locator Page.

Last month, Nordstrom announced that it was closing 16 stores in the United States. Fortunately none of the Canadian stores will be closing thus far and as of Thursday, all will again be operational. A Nordstrom Rack store at Willowbrook Centre near Vancouver was set to open in April of this year, and the landlord for the centre has confirmed that Nordstrom Rack’s opening has been delayed until the fall.

City of Toronto’s ‘CafeTO’ Initiative Allowing Businesses to Expand Patios into Sidewalks

The City of Toronto recently announced its CafeTO initiative where outdoor patios can be expanded into sidewalks and parking lots to assist restaurants with physical distancing regulations as they prepare to reopen soon.

The CafeTO initiative is designed to create more outdoor space for restaurants and bars in an attempt to make up for the lost revenue over the past months of closures.

A press release stated that the program “will provide more outdoor dining areas by identifying space in the public right-of-way and expediting the current application and permitting process for sidewalk cafes and parklets.”

In Mayor John Tory’s announcement he noted the continued strain put on Toronto’s restaurants due to not being permitted to allow dine-in guests. He was also optimistic that the time to reopen is fast-approaching and assured the food and beverage industry that the city is available to assist restauranteurs in the application of the CafeTO program in the coming weeks.

“CafeTO is one more example of a quick-start program that will bring vibrancy back to our main streets and help our hospitality industry and all those who rely on it.”

To date, the city has already implemented a cross-divisional action team to oversee the program efficiently, and is conducting a review of current requirements while determining how the city can better support businesses, including waiving patio fees which would otherwise be levied on expanded space and undertaking planning for reallocating curb lanes for patios to maximize space.

CafeTO is working closely with TABIA and the city’s many BIAs to coordinate the economic rescue initiative. They will be key to ensuring restaurants in appropriate locations across the city have the means and information to sign up for expanded space as soon as possible.

Establishing the essential cafe placements guidelines is also underway and quickly being finalized to ensure participating patios can be operational as soon as they are permitted.

Regular permit and application fees may be waived in order to allow for participating restaurants and bars to incorporate these new aspects to their business model.

Deputy Mayor Thompson called the initiative “an opportunity to expand patio culture across our City and bring people back to our main streets as the city begins to reopen and recover”.

The toronto.ca website states that “a simple registration process for businesses to sign-up for CafeTO will be shared with business owners as soon as its finalized.”

This announcements comes after Ontario Premier Doug Ford announced that government officials are in the process of permitting second stage of the province’s economic reopening plan, part of which may include the reopening of patios. On Wednesday Ford allowed parts of the province to open on Friday, though areas such as Toronto will remain shut for the time being.

Restaurants in Edmonton, Calgary, and Vancouver are steps ahead of Ontario and have already been permitted to reopen the food and beverage industry for dine-in guests. Some establishments are availing of similar initiatives to what we hope to see in Toronto.

B.C. is currently in phase two of its reopening plan, which began on May 19 and permits patios to open with sufficient distancing measures. Recent reporting on the status of open restaurants and patios in B.C., however, have noted a shortage in patrons since opening a few weeks ago. Within the first few days of reopening things seemed to be picking up — at 50 percent capacity of course — but have subsequently dropped off.

In Alberta, the industry was permitted to begin business once again on May 14, during stage one of the province’s reopening plan. Again, with regulations to keep capacity at 50 percent. Foodservice businesses across the country are hoping to see a return in traffic. In international markets where foodservice businesses have reopened, however, business has been slower than prior to the COVID-19 shutdowns. A recent Angus Reid study shows that more than half of Canadians are hesitant to return to restaurants any time soon. So it seems, just like everything else COVID-related, only time will tell.

Major Optical Chain Secures Mink Mile Space at the ‘Best Retail Corner in Canada’

Hakim Optical PHOTO: CRAIG PATTERSON

Toronto-based eyewear chain Hakim Optical has leased a prominent corner retail space at 66 Bloor Street West where it is building a luxury focused flagship. Hakim Optical will occupy part of the space formerly occupied by Davids Footwear which closed in October of 2019.

Hakim Optical’s corner retail space faces both onto Bloor Street West and Bay Street within the 1200 Bay Street building. Hakim Optical will occupy more than 3,000 square feet of the former 6,000-square-foot Davids space. Broker Jordan Karp and his team at Savills Canada negotiated the deal on behalf of the landlord. Hakim Optical was self-represented in the lease deal which a source from another brokerage described as being “too good to pass up”.

Signage on the under construction Hakim Optical store indicates that brands carried will include Giorgio Armani, Tiffany & Co., Prada, Miu Miu, Dolce & Gabbana, Coach, and others.

The corner of Bloor and Bay streets sees thousands of pedestrians pass by daily on a typical day, and is part of the stretch of Bloor Street that some refer to as the ‘Mink Mile’. To the east towards Yonge Street, major retail tenants include Holt Renfrew’s flagship, Eataly, Birks, H&M, Zara, and Nordstrom Rack. To the west of 66 Bloor is a row of upscale retailers including Harry Rosen, Holt Renfrew Men, Hermes, Dior, Gucci, Prada, Louis Vuitton, Tiffany & Co., Burberry, and others.

PHOTO: CRAIG PATTERSON
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In an interview last year, Birks CEO Jean-Christophe Bédos described the corner of Bloor and Bay as the “best retail corner in Canada”. The Birks flagship store located at that corner reopened last year after a substantial renovation as part of the overhaul of Manulife Centre which also saw Italian grocerant concept Eataly open upstairs.

Other optical retailers in the area could lose market share with the opening of the upscale Hakim Optical location. Across the street in the 60 Bloor Street West building is upscale eyewear retailer Josephson, which recently completed a renovation of its storefront that faces Bay Street. On nearby Old York Lane, optical retailer Karir carries frames that in some cases priced in excess of $1,000. Other eyewear retailers in the area cater to locals and visitors, which before COVID-19 included substantial tourist and office foot traffic.

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 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 has been named by Huffington Post Canada as one of Canada’s most memorable jingles, and is still used.

Last week it was revealed that the 12-storey 1200 Bay Street building where the new Hakim Optical location will be is expected to be demolished in years to come. A development application by Dutch developers Kroonenberg Groep and ProWinko could see a Herzog & de Meuron designed 87 storey skyscraper rise on the site rising more than 1,060 feet above the Bloor Street intersection. The proposal includes retail at the base of the building, offices from the second level to the 13th floor, and a residential tower component above containing more than 300 condominium units. The top floor would include a restaurant according to plans. Given the proposed height and density, sources say that the tower proposal is unlikely to be approved given the history of development in Toronto.

A proposal next to 1200 Bay Street, as reported on Retail Insider last year, could see a massive mixed-use tower with a residential focus rise next door. It would involve demolishing the 80 Bloor Street West office tower to construct a massive building that would cantilever over the Harry Rosen store at 82 Bloor Street West. Some are saying that the proposal is unlikely to be approved as well though it’s clear that developers are interested in building new towers in Toronto’s Bloor-Yorkville area.

The space Hakim Optical will move into was formerly occupied by Davids Footwear. The luxury footwear retailer operated at the corner for decades before being put into bankruptcy by parent company Rosejack Investments in August of 2019.

Guidelines Set for Fitness Facility Reopenings in Canada

The Fitness Industry Council of Canada has released guidelines for fitness facilities across Canada to follow as provinces begin reopening businesses.

But many of those businesses remain closed as the economy slowly recovers from the COVID-19 pandemic and some provinces still have no target date for the reopening of fitness studios and centres.

“The guidelines that the Fitness Industry Council of Canada has established are extremely helpful both to fitness establishments and to our members. As an industry, we will be following these in order to ensure our staff and members feel comfortable and confident as they return to gyms, studios, and other facilities. We appreciate all of the support we’ve received over the past few months, and look forward to seeing everyone again very soon,” said Carl Ulmer, Managing Partner / Director of Operations, L&L Signature Fitness Group.

Scott Wildeman, President of the Fitness Industry Council of Canada, said each province has different timetables for the opening of businesses in the industry. Some of the regions in British Columbia have reopened. Manitoba has reopened. Prince Edward Island reopened on June 1. Saskatchewan reopens June 15. Quebec, Ontario, and Alberta are on the way.

The Fitness Industry Council of Canada has set out protocols for containment, cleaning, staffing, and operations.

The Council has more than 5,000 facilities in Canada and the association represents about 500 locations across the country.

He said the fitness industry is taking every precaution and practical step possible to ensure the health of patrons and staff.

Wildeman said surveys out of Europe and the UK indicate about 60 percent of members will come back in the first month. Another 30 percent will come back in the second month and then seven percent will come back in the third month and three percent are undecided.

“The caveat to that is with proper protocols in place,” he said.

The Council has developed four key areas for reopening: containment, cleaning, staffing, and operations.

In the first area, containment, by scheduling workouts ahead of time, businesses will be able to limit the number of people in a facility, along with ensuring the proper social distancing. Traffic flows will be considered in common areas as well as exercise floors.

“The first thing is to limit the number of people in a facility at a given time. Most facilities will do a booking system where you can basically book your visit. So you’re not going to show up to the gym and have everybody else show up at the same time. It will be really a planned event,” said Wildeman. “There’s actually now technology where you can plan your visit inside a gym.

“So you can book your cardio equipment for half an hour and you can book to do strength for a half hour and you can even book a locker in the locker rooms. By doing that, we can ensure social distancing and then also sanitization. We’re really set up for contact tracing. So if somebody is sick we can also assist in notifying other patrons that there was somebody who contracted COVID and to go get tested. So we are perfectly set up to help with contact tracing.”

The second pillar of reopening is cleaning where members will be empowered to clean and sanitize any piece of equipment before they touch it. Staff will be committed to thorough cleaning of facilities throughout the day. Activities will be scheduled to allow for a deep clean between sessions.

“We are actually one of the only industries where you can clean and sanitize something before you touch it. If you think about it, if you go to the grocery store you don’t sanitize a cereal box before you put it in the cart,” said Wildeman. “We have hand sanitizer and disinfecting wipes that kill viruses and we’ll have those all over the place so you can be proactive as a member and clean something not only after you’re done with it but before you even touch it in the first place. We will also have staff do thorough cleans of high touch areas.

“I actually think from a cleanliness standpoint we will be one of the cleanest places you can be. And from a social distancing standpoint with the containment we’ll make sure that usable equipment is spread out and we limit the number of people in the facility at any given time.”

The third pillar of reopening is staffing where staff will be trained on proper protocols and systems to be implemented to keep them safe as well.

“Staff will be encouraged to wear gloves and masks. Staff will be encouraged to also have social distancing. Once your personal training is spotting somebody you don’t need to be within six feet of somebody. And even then personal trainers can spot somebody with verbal cues versus having to be within six feet of a person,” explained Wildeman. “We’ll make sure we adjust our operations so to speak to make sure we maintain that social distance. We’ll make sure that we choreograph our classes to be safe. So we won’t have any circuit classes where you go from station to station. Everything would be at your own personal station. The staff, the instructor, will be six feet away from everybody and not facing them so you’re not breathing onto somebody.”

The last section of reopening guidelines is operations where facilities will be required to create detailed operating procedures and will be focused on all “touch points.”

“Do you have traffic flow in your facility mapped out? Do you have pinch points notified? An entrance into a locker room for example. Do you have the ability to yield and stop and wait for somebody else to go first? We’re going to identify those pinch points. Do your policies match up? Are you going to enforce a late cancellation policy or a no-show policy? So if somebody is sick you don’t want to necessarily penalize them for not coming otherwise they might show up when they shouldn’t show up,” added Wildeman.