Parkland Corporation, an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator, has acquired the licence for the exclusive use of the On the Run trademark in the majority of U.S. states.
And the company said the acquisition positions Parkland to expand On the Run across the U.S. to create a unified, North American convenience store brand.
Through this acquisition, Parkland has acquired, for a one-time fee, the perpetual licence for the exclusive use of the On the Run trademark in the majority of U.S. states. The deal includes an option to purchase the On the Run U.S. trademark together with the licence owner’s On the Run franchise business.
“We are excited to expand the On the Run convenience store brand across the U.S. and harness the advantages of our scale,” said Ian White, Senior Vice President, Strategic Marketing & Innovation at Parkland. “As we continue to advance our ambitious growth strategy, the time is right to create a unified, North American retail and convenience store brand. On the Run is an established retail brand that we can quickly and efficiently scale by leveraging the capabilities we have established in the Canadian market.”
Parkland has been building the On the Run convenience retail brand since 2016 across Canada. The company has between 1,800 and 1,900 gas station locations across Canada and there are about 300 On the Run stores. The concept has been successful for the company, winning the trust of customers and giving Parkland the opportunity to develop and expand its own product lines.
ON THE RUN
This has also given the company a really solid platform for growth in Canada and now across the U.S. Over the last few years, Parkland has acquired eight companies in the U.S. Now Parkland can start to harmonize its convenience and store offering across Canada and the U.S. and leverage many of the efficiencies and benefits of scale with an opportunity to build a super brand across North America while bringing in many of its own product brands.
“We were fortunate enough to acquire the rights to the On the Run brand and the associated franchise model and franchisee complement as part of the divestiture Imperial Oil made of their downstream assets,” said White. “So we acquired the exclusive right trademark. Since then, we’ve re-imagined, and re-imaged On the Run. We did a lot of consumer research. We heard from consumers where there were three important elements that we needed to address with the existing On the Run offer and brand image.
“One was that it was dated and it needed to be refreshed. So we had a look at the elements of the design elements of the logo and the interior and with the feedback from our consumers made some adjustments there. Two was the offer as well needed to be adjusted as folks started to shift towards more good for you food. Folks wanted additional branded options as well. Since then we partnered with a number of branded food partners. We’ve branded exclusively with a company called Triple O’s and we’ll be expanding the Triple O’s concept into Alberta. We recently launched a new branded food partnership with them in Calgary. It’s done very well. And we’ll be moving into Ontario in 2021.
“The other component was around the offer in general in terms of connecting the forecourt and the backcourt so the Canadian store with the gas facility. Our offer in Canada and the U.S. as well is having a strong reasonably relevant brand in our gas plants in the forecourt and what we’ve done is now with the On the Run purchase both in Canada and the U.S. we’ve allowed ourselves a consistent backcourt image offer that we can progress and scale and connect to our proprietary forecourts.”
White said Parkland’s goal is to grow its proprietary brand portfolio, exclusive to the company, while continuing to partner in markets as appropriate with major oil companies in supporting their brands.
“The On the Run business and offer now at a North American level will be exclusive to Parkland and will allow us to continue to build up that capability and continue to evolve the offer in real time as consumers sort of direct us,” said White.
In Canada, the company has plans for 1,000 On the Run locations. In the last three to four years, it has introduced 80 to 100 stores per year.
In the U.S., Parkland has a dealer-operated gas station business and a company-operated business. On the company side, it has close to 60 locations. The dealer operated is just under 300.
The company’s plan includes:
Expanding On the Run across the U.S. to create a unified North American convenience brand;
Capturing efficiencies through common brand collateral, product assortments, private label product ranges and operational continuity;
Opportunity to rebrand its existing U.S. convenience stores and efficiently incorporate the On the Run convenience brand to newly developed sites;
Greater optionality and a strong convenience store foundation for future U.S. M&A activities; and
Support the organic growth of its dealer business by providing an enhanced, bundled offer that combines a leading convenience store brand with multiple forecourt fuel brands.
“The On the Run retail brand provides a solid platform for our continued U.S. growth,” said Doug Haugh, President, Parkland USA. “Building on our existing On the Run brand image, product assortments and private label goods in Canada, we look forward to meeting the convenience needs of our U.S. customers under the On the Run banner. Our U.S. customers will enjoy enhanced interior and exterior rebranding elements, larger and brighter canopies and a variety of new product offerings, all backed by their same local and friendly service teams.”
In Canada, Parkland has several key gas brands - exclusive rights to the Chevron brand in Alberta and B.C., Fas Gas across the West; Pioneer in Ontario; and Ultramar in Ontario and east of Ontario.
The company also has a strategic partnership with Imperial Oil for the Esso brand - both company and dealer operated locations.
More than 80 per cent of Canadians live within 15 minutes of one of the company’s locations. In the company’s last quarterly results, Parkland posted its 18th consecutive quarter of same store sales growth.
Canadian retail employees have dealt with uncertainty throughout the COVID-19 pandemic. Questions about health and safety, as well as new workflows and regulations, have been on employees’ minds for months. Some of the most pressing among these are concerns over workers’ rights amid the pandemic.
In the face of changing hours and layoffs, you may wonder what legal protections you have. Governments at both the regional and national levels have enacted some new safeguards for employees.
If you understand these, you can know what to expect from your employer and take action if they infringe on your rights.
Health and Safety Rights
Every employed Canadian has the right to a safe workplace under the Occupational Health and Safety Act. Amid the pandemic, that means your employer must adhere to new health and safety regulations. If you’re not an essential worker, your employer can’t require you to work as usual.
That said, if your employer has adjusted your work to fit new guidelines, you still have to work. Even if you’re concerned about the virus, you have to go in if your workplace adheres to COVID safety standards. Much of Canadian retail falls under the list of essential services, so you’re likely required to work.
You may be able to work from home amid the pandemic. While the law doesn't require employers to enable remote work, you may have a right to it. For example, if you have to stay home to care for your children, your employer has to accommodate remote work.
Employment Rights
One of the most pressing concerns facing retail employees right now is their employment status. Some major retailers like Reitmans had laid off as much as 90% of their in-store workers during the spring shutdowns. While your employer has the right to lay you off in most cases, you do have some extra protection.
In most provinces, workers have the right to extended job-protected leave under specific COVID-related concerns. For example, if you're in mandated quarantine or have contracted COVID-19, you can take advantage of this leave. These protections are similar to the Anti-Retaliation Ordinance in Chicago in the United States.
In all provinces, the government has extended the temporary layoff period for most employers. Your employer now has up to six months to recall you after a layoff.
Right to Information
The pandemic can be a confusing time. Thankfully, you have the right to some information. Part of the Occupational Health and Safety Act gives employees the "right to know." Under this provision, you have the right to get information about potential health risks from your employer.
Amid COVID-19, this could come into play if one of your coworkers contracts the virus. Depending on the size of your workplace, your employer may have to inform you if someone you might've come into contact with is diagnosed with COVID-19. If you contract COVID, your employer may have to tell your coworkers but must respect any privacy legislation.
Your employer also has to inform you about any regulatory changes. If new legislation affects your workflow, you have the right to know about it. These legal protections can help dispel some uncertainty you may face.
Know Your Rights Amid COVID-19
The COVID-19 pandemic can be a challenging time, but you have some legal protection amid the chaos. It's critical that all Canadian retail workers know their rights so that they can protect themselves from any further distress. Since legislation is continually changing, it's also crucial for employees to stay up-to-date.
If you think your employer has violated any of these rights, consult a legal expert. The pandemic hasn't been easy on anyone, but hopefully, this legislation will help minimize the damage.
Devin Partida
Devin Partida is a writer and blogger, as well as the Editor-in-Chief of ReHack.com
Hudson’s Bay Flagship Store in Montreal to be Downsized
The flagship Hudson’s Bay department store at 585 Ste-Catherine Street in downtown Montreal is expected to be downsized amid a sale of the iconic and historic 655,000-square-foot building. That’s according to a French language report last week in La Presse.
The article states that Hudson’s Bay will occupy three retail levels spanning 250,000 square feet on the ground floor, second level, and basement. The new owner will have the option of converting levels three through eight of the building into loft-like office space — something tech firms were keen to secure prior to COVID-19. A building application proposal is also in place for zoning approval to add a 300-foot tower at the back of the store, either for office or residential uses.
EXTERIOR OF HUDSON’S BAY IN MONTREAL WHICH IS DOWNSIZING. PHOTO: HUDSON’S BAY
The downtown Montreal Bay building opened in 1891 as a Morgan’s store, with an eight level expansion being added in 1923. A rather ugly extension was added at the back end of the store facing Boulevard de Maisonneuve in 1964. In 2016, Hudson’s Bay announced that Saks Fifth Avenue would open a 200,000 square foot store in the back-end extension though plans were subsequently shelved.
CBRE is said to be selling the Montreal Bay building as well as the Vancouver Hudson’s Bay flagship store at 674 Granville Street.
EXTERIOR OF MCARTHURGLEN DESIGNER OUTLETS SHOWING NEW RETAILERS SET TO JOIN. PHOTO: RITCHIE PO
McArthurGlen Designer Outlets in Vancouver Add Upscale Retailers
The McArthurGlen Designer Outlets at Vancouver International Airport continues to go upscale with the addition of several premium brands. That includes UK-based Burberry which will open its first outlet in Western Canada. Other brands either open or soon to open in the Vancouver centre include Max Mara, Blubird, Matt & Nat, Rossignol, and Tory Burch.
Other outlet stores recently opened at McArthurGlen in Vancouver include Aritzia and Herschel Supply Company, which is expanding rapidly with a series of retail partnerships across the country.
EXTERIOR OF MCARTHURGLEN DESIGNER OUTLETS SHOWING NEW RETAILERS SET TO JOIN. PHOTO: RITCHIE PO
The unique looking outdoor outlet mall, located just east of Vancouver International Airport, opened in 2015. The centre spans 240,000 square feet and is planning to add an additional 100,000 square feet of space.
While the Vancouver centre was positioned as a luxury mall, it still has only a handful of brands considered to be in the ‘luxury’ category. The Toronto Premium Outlets in Halton Hills is by far the most luxury heavy outlet centre in Canada with brands such as Gucci, Saint Laurent, Versace, Giorgio Armani, Jimmy Choo, Prada, Montblanc, Burberry, and others. Balenciaga recently opened and soon Moncler and Ferragamo will join them.
CLOSING RICHARD MILLE AND AUDEMARS PIGUET STORES IN MANDRAKE PLACE. PHOTO: CRAIG PATTERSON
Richard Mille and Audemars Piguet Stores Close in Toronto
Last year Toronto-based jeweller Louis Black unveiled separate boutiques for luxury watch brands Richard Mille and Audemars Piguet in Toronto, located on the second level of Mandrake Place at 135 Yorkville Avenue. Both boutiques were the only dedicated spaces for the brands in Canada. To visit the boutiques, one had to be taken upstairs by security to check out some watches priced into the six figures and higher.
Following the death of the owner of Louis Black this spring, the boutiques have closed. It’s unclear if either brand will return to Toronto in boutique form. In Vancouver, jeweller Birks operates a small Richard Mille boutique space at Birks’ downtown Vancouver flagship, and an opportunity may present for Birks to expand the line into Toronto — when we visited the Mille boutique in Toronto last year, almost every watch had been sold
SCREENSHOT OF KEEN’S WEBSITE SHOWCASING MASKS.
KEEN Footwear Keen on Charity
KEEN Footwear — a family-owned outdoor footwear, clothing, and accessories brand —is furthering its commitment to fighting COVID-19 but donating 100,000 masks and $100,000 worth of footwear to front-line workers and their families this year.
All part of its Together We Can Help initiative, the outwear brand has already converted its production line in its brand-owned factory to make the Harvest Mask, a stylish, comfortable and washable line of face masks made responsibly using upcycled material and contemporary styles to match other beloved KEEN footwear.
Since day one, KEEN has worked with non-profit partners, consciously constructing its products, providing grant funding to grassroots organizations, and activating communities and individuals to protect the places where we work and play. KEEN puts its values in motion to leave the world a better place, and the COVID-19 pandemic has been no different.
EXTERIOR OF HUDSON’S BAY ON QUEEN ST IN TORONTO. PHOTO: HUDSON’S BAY
Hudson’s Bay Evolves Safety Measures by Introducing CleanSlate UV Sanitizers
As Hudson’s Bay continues to evolve, its in-store health and safety measures are evolving right alongside it. The company has announced the introduction of CleanSlate UV Sanitizers, an innovative technology that uses medical-grade UV rays to sanitize objects like cell phones, wallets, keys, and bank cards, in only 20 seconds.
The revolutionary tool will be featured at the key entry and exit points in select Hudson’s Bay locations across British Columbia, Alberta, Ontario, and Quebec.
“The health and safety of our customers and associates is at the forefront of everything we do, and we are continually looking at ways to enhance the in-store experience and build trust with our loyal customer base,” said Kerry Mader, Chief Customer Officer, Hudson’s Bay. “With the introduction of Canada’s fastest, most effective UV sanitizers in our stores across the country, customers can feel confident knowing that creating the safest possible shopping environment is our top priority.”
“We are incredibly excited to be working with Hudson’s Bay to provide this enhanced service that gives customers and associates the ability to quickly sanitize their mobile devices and other small items,” said Taylor Mann, CEO and co-founder of CleanSlate UV. “While we are all washing our hands more frequently, we still handle our cell phone continuously throughout the day. Keeping our devices clean helps keep our hands clean. This technology is a fast and easy way to reduce bacteria and viruses and help keep Canadians healthy.”
CleanSlate’s UV Sanitizers are simple to use and proven to be effective in eliminating at least 99.999% of harmful bacteria found on common handheld items. With touch-free device removal and no damaging chemicals, CleanSlate’s technology builds on Hudson’s Bay’s already existing safety protocols put in place to protect customers as they shop
IMAGE DEPICTING ECCO AND STACKT MARKET COLLAB. IMAGE: STACKT
ECCO Joining stackt market Lineup
Danish heritage brand ECCO, will be popping up at Toronto’s stackt market this fall to showcase their latest in footwear, leather technology, and contemporary design.
Stackt market — located right at the intersection of Front Street and Bathurst Street in Toronto’s downtown — will host the ECCO showroom from September 18th to October 29th. Immersing guests into the brand’s DNA, the pop-up promises an experimental and experiential space where innovative leathers meet high-tech craftsmanship.
Taking over unit 4-101, the 285-square-foot shipping container will take-on a Scandinavian feel, finished with soft hues of white, grey and gold, wooden accents, and sleek modern lines. Visitors will walk through ECCO’s AW20 curated lineup of fall and winter styles, with mounted displays of ECCO’s leathers giving a glimpse into the brand’s innovative, technical, and original manufacturing and design processes.
Located towards the back of the container is the ECCO x stackt Workshop which will house a selection of DIY ECCO small leather goods, which guests will have the opportunity to craft on their own. The “Illustrator Series” will take place each weekend from September 19th through October 24th. The ECCO x stackt Workshop will play host to a local illustrator, on-hand to customize the small leather goods. Carefully selected by ECCO, each artist will bring their unique style of illustration to the table.
The limited-edition Tannery Series 001 will also be launching and available for purchase at the pop-up. The unique and one-of-a-kind upcycled sneaker is constructed in recycled leather from ECCO’s tannery innovation labs.
To support their stackt neighbuors, ECCO has collaborated with Courage Cookies, Pearl & Bean, and Belgian Moon Brewery. ECCO is eager to embrace the cultural community that stackt market offers and share their Danish design roots of timelessness and modern functionality with the public. For a complete event calendar and dates of participating illustrators, visit ca.ecco.com/en/stackt.html
SUPPORT TORONTO FASHION
Toronto’s Fashion Industry Advisory Panel Launches #SupportTorontoFashion Amid COVID-19 Pandemic
Lead by City of Toronto’s Fashion Industry Advisory Panel (FIAP), the #SupportTorontoFashion campaign has been created to bring awareness to Toronto’s diverse, talented, innovative, and world-renowned fashion industry.
Before the COVID-19 pandemic, Toronto’s fashion industry employed 50,000+ people and contributed over $1 Billion in annual wages. And in the face of a global crisis, the industry has shown incredible resilience.
Over the next several weeks, FIAP is celebrating the Toronto Fashion Industry by shining a light on the people, brands, and institutions that comprise this sector, sharing their stories through daily posts on social media.
The campaign aims to:
Tell stories of the people, brands and institutions behind Toronto’s fashion sector - past and present
Celebrate the success of our fashion industry through the ages
Encourage Toronto consumers to learn, share, and shop local
Create an online conversation about Toronto’s thriving fashion industry through the #SupportTorontoFashion hashtag
With the support of Mayor John Tory and a panel of fashion industry veterans, the campaign is reaching out to the people of Toronto for extra support.
Like, and tag your peers in the comments on posts from our feed.
Share this graphic (also attached) and use the hashtag #SupportTorontoFashion on your social channels to show your support of the industry. BONUS: Tag Toronto fashion industry professionals, brands, institutions, storytellers - anyone local and deserving of a shoutout - when you share.
Post about Toronto people, brands, places and institutions in the fashion industry and tell their stories (or your own story!), using the #SupportTorontoFashion hashtag for a chance to be featured and profiled on our account.
FORWARD this email to your network - including students, professionals, fashion insiders, media and anyone you think might take an interest in the cause.
Brill Communications Hosts its First in-Person Media Preview Amid COVID-19 Pandemic
Abiding by COVID safety standards, boutique fashion and lifestyle public relations agency Brill Communications recently welcomed media guests into their Brill Bubble for a socially distanced event.
The event — which was the first in-person, multi-brand preview since the COVID-19 pandemic began — was a huge success and vitally important for an industry that is typically built on social interaction pillars like media dinners and showroom visits. Aptly named the ‘Brill Bubble’, the agency was eager to host something in-person for its brands and the media.
“We’re Zoomed-out,” says Desia Halpin-Brill, Founder and President of Brill Communications. “For being an industry that is so digitally-savvy, some things just don’t translate the same over a video call.”
Brill’s clients are mostly retail based and as they settle into the new normal, there is clear excitement surrounding the possibility of upcoming in-person events and launches introducing Fall/Winter collections.
“The PR industry serves as a good indicator of retail health and a socially distanced preview is a great way of getting in-person feedback that serves as a guide moving forward, a litmus test of sorts,” says Halpin-Brill. “Our historic three-story brownstone building located at 125 John street with a separate and private street entrance provided a starting point to executing a safe and socially distanced event.”
“We weren’t too sure what to expect when we sent out the invite to our media. However, we found the majority of people were super excited to attend and pining for some ‘mask-to-mask’ interaction –albeit with many new regulations and precautions.”
Keeping safety a top-priority, Brill Communications took all measures to create a space that felt comfortable and pandemic-appropriate. A Brill preview usually takes place over one day, but with social distancing and gathering limits top-of-mind, the Brill Bubble spanned across two days with appointments scheduled in half hour intervals. Upon arrival, each guest was given a custom Brill-branded mask made by Canadian designer Mayer Man and were directed to follow Brill Bubble markers on the floors to ensure a minimum of two-meter distancing at all times.
Hand sanitizer was offered at each brand vignette and surfaces were wiped-down after each guest passed through. While attendees are typically treated to F&B and grazing tables at a Brill preview, the agency opted for takeaway lunch boxes containing some local favourites, including Nadège sandwiches and Courage Cookies.
“While the future of in-person events is unclear, one thing is for certain: there comes a point when we need to accept and adjust to the new normal. Our industry has had many changes and hurdles to adapt to over the years and Brill Communications is confident that if safety procedures are implemented and followed, along with some creative branding, innovation, and COVID-friendly rituals, there is a way to continue regular industry practices while respecting new protocols and standards.
WOMAN GROCERY SHOPS WHILE WEARING A MASK AMID COVID-19 PANDEMIC
Many months into the pandemic, we know more about this relentless virus and how it behaves and spreads. Using this limited, but growing, scientific knowledge, public health measures have kept us largely safe. Back in March, given the unknowns we needed to manage, the only solution possible was a complete lockdown. It came into our lives violently, enticing many to panic buy, thinking they would not be allowed to leave their homes for weeks, possibly months. As consumers, we behaved irrationally as we coped with many uncertainties.
Regrettably, over-buying food led to more food waste and added unnecessary pressure to the food supply chain. The food industry was also compromised by a food service sector that was almost completely idle for weeks. In addition, the livestock industry was hard hit by COVID-19. A total of twelve meat processing plants had to shut down, some for as long as a month, because so many employees contracted the virus. The Cargill plant in High River, Alberta, became a case study when it experienced the largest outbreak at one address in the country.
The weird and wacky quest for toilet paper aside, empty shelves where food belonged gave many a profound, heart-thumping fear of food insecurity. It became real for many people, likely for the first time in their lives. After all, North America has not experienced the famine, major wars, or chronic civil unrest seen elsewhere in the world over the last century. In the land of abundance and bounty, running out of food seems like something that happens elsewhere.
That was then. This is now. Though pictures of empty shelves led Canadians to believe our food system has its limits, it quickly became apparent that the shelves would continue to be stocked with food, however messy the process of getting it there. Panic slowly disappeared, allowing collective discipline and peaceful amenability to take over. Measures were put in place to keep people safe and responsible, and, a few weeks into the pandemic, rationing became an expectation. All measures were gracefully executed as consumers complied.
CANADA’S FOOD INDUSTRY DELIVERED IN MORE WAYS THAN ONE AMID COVID-19 PANDEMIC
Technologies and just-in-time procurement allowed the food industry to absorb the unprecedented shock back in March and April. In a stunning display, the food industry really delivered, using different assortment and packaging schemes to ensure shelves were stocked. We’ve all witnessed a beautiful miracle of collaborative spirit.
The industry also learned how to serve consumers who are physically unable to go to grocery stores as quarantines and self-isolation measures forced many to order online. Barely six months ago, it was almost impossible to get a grocery order delivered within eight days. Now, most markets offer great home delivery service and will deliver just about anything, including groceries, within two hours. This was almost unconceivable when this crazy year that is 2020 began. As a result of this pandemic, online food sales will triple the numbers seen in 2019.
The food industry and consumers also benefited from the decision to allow borders to remain permeable throughout the pandemic. Just a few decades ago that would not have happened, but cool heads prevailed and governments around the world quickly understood that closing the borders would only make matters worse. Canadians should feel comforted by the willingness to allow the borders to remain permeable.
STATISTICS CANADA REPORTS 700,000 PEOPLE HAVE EXPERIENCED FOOD INSECURITY SINCE MARCH
While most Canadians will be food secure, despite higher food prices, this is not true for all Canadians. Poverty rates have increased under the pandemic, and Statistics Canada reports that an additional 700,000 people have experienced food insecurity since March. Let’s hope Ottawa has long-term plans for our financially vulnerable populations.
The pandemic has made life challenging, and, quite understandably, Canadians are on edge and a little restless going into the fall. But we do not need to panic. companies do learn, and it is highly doubtful an uncontrolled, mismanaged scenario will happen again.
The food sector has been preparing for a potential second wave for months now, and, though it may not be perfect, we should trust that food will remain available across the country.
EXTERIOR OF HUDSON’S BAY IN VANCOUVER. PHOTO: HUDSON’S BAY
For the first time in its 83 year history, luxury department The Room at Hudson’s Bay is carrying menswear in addition to a vast assortment of womenswear. The menswear collection recently launched in the renovated Vancouver The Room department with a point-of-view tailored to the Vancouver market.
VANCOUVER’S HUDSON BAY’S ‘THE ROOM’ FIRST TO CARRY MENSWEAR
“Discovery is at the core of The Room,” says Tyler Franch, VP, Fashion Director, Hudson’s Bay. “We have curated the collections to appeal specifically to the Vancouver market, while still highlighting The Room’s unique point-of-view; one that’s more forward-thinking and conceptual, with a strong representation of each designer’s brand DNA.”
TYLER FRANCH
Franch said in an interview that he’d toured retail concepts globally in places such as the UK, France, and South Korea and brought some of what inspired him to The Room at Hudson’s Bay. That included renovating the Vancouver space by creating a bold metallic environment including metal tread flooring, silver walls and ceilings. The ‘clinical look’ is meant to showcase the product and is unlike any retail space in Canada.
The Room, located on the second-floor of the Vancouver Hudson’s Bay store, is “retail theatre’ that is “elevated through visually-impactful storytelling moments like limited-time concept spaces, photo-worthy installations, and exciting pop-ups”, according to Franch. The first pop-up is a 10-brand South Korean designer showcase, featuring emerging brands, KUHO, Low Classic, Andersson Bell, and, exclusive to The Room, Yuul Yie. Overall The Room is intended to be an “Instagram-worthy” experience for visitors and the layout also allows for flexibility where things can be changed to keep shoppers coming back.
Franch brought menswear into The Room in Vancouver for the fist time to attract an expanded demographic into the 13,700-square-foot retail space which recently saw a renovation after its opening in 2011. New luxury menswear brands at The Room Vancouver include Balmain, Junya Watanabe, Moschino, Ann Demeulemeester, DSquared2, Vetments, ALYX, Marni, Maison Margiela, Lanvin, Solid Homme, J.W. Anderson, and others.
IMAGES OF THE ROOM IN VANCOUVER’S HUDSON’S BAY SHOWCASING THE INTENTIONAL CLINICAL DESIGN. PHOTOS: HUDSON’S BAY
“Vancouver was a major opportunity with a strong designer business,” according to Franch, who curated a localized assortment of brands for the Vancouver market. Men’s advanced contemporary brands as well as luxury brands are found at The Room in Vancouver, allowing for a broader price-point in an effort to attract shoppers. Some of the brands at The Room in Vancouver are not available elsewhere in Canada or even North America.
CONTEMPORARY & LUXURY MEN’S BRANDS AVAILABLE AT ‘THE ROOM’ ALLOWING FOR BROAD PRICE-POINT
Brands exclusive to The Room at Hudson’s Bay in Vancouver include apparel brands Act n°1, Anais Jourdan, Arizona Love, Awake Mode, Baum Und Pferdgarten, CASC8, Danielle Guizio, Deadwood, F_WD, Gauge81, Les Coyotes De Paris, Olivia Rubin, and Yuul Yie. Exclusive footwear brands include Chloe Gosselin, Kalda, Magda Butrym, Midnight 00, Nicole Saldana, Pwenille x Gia Couture, Rejina Pyo, and Superga x Mary K. Exclusive handbag brands include Ganni, Osoi, Rejina Pyo, and The Volon.
The Room in Vancouver is a substantially different experience than what one finds in The Room in Toronto, which relocated to the west side of the Hudson’s Bay flagship store on Queen Street in 2016 after a grand relaunch in 2009. The Room in Toronto is a larger space and currently only carries women’s fashions. Some of the gowns in the Toronto store surpass $15,000 each. The assortment of brands in the Toronto location is somewhat different than what’s found in Vancouver. Franch noted that the Vancouver market dresses differently than Toronto and brands were picked accordingly — and the Vancouver store was first to see the new Room renovation because of the adventurous fashion consumer in Vancouver seeking ‘novelty’.
The Room in Toronto is expected to see updates as well according to Franch, though at the moment menswear won’t be moving in. The fifth floor of the Hudson’s Bay flagship in Toronto features a men’s designer area with several of the same designers carried at The Room in Vancouver such as Balmain, Moschino, J.W. Anderson, Vetments and others. The upscale Toronto men’s department lacks the edgy aesthetics found at The Room in Vancouver however.
IMAGES OF THE ROOM IN VANCOUVER’S HUDSON’S BAY. PHOTOS: HUDSON’S BAY
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(PRNewsfoto/Hudson's Bay)
(PRNewsfoto/Hudson's Bay)
The Hudson’s Bay website has also expanded to include more pieces from The Room. That includes women’s apparel and some footwear styles. Franch said that the website would be expanded and ‘elevated’ further in the spring of 2021.
MONTREAL WOULD BE OBVIOUS CHOICE FOR NEXT ‘THE ROOM’ DEPARTMENT
Other Hudson’s Bay stores could also be in line for The Room departments, though Franch wouldn’t confirm anything during the interview. Montreal would be an obvious choice given the size of the city, and the downtown Montreal Bay store is said to be getting a substantial renovation which will include downsizing the store to about 250,000 square feet over three levels from its current 655,000-square-foot footprint.
High-end retail competition in downtown Vancouver is fierce, and the stakes are high. In recent years, Holt Renfrew and Nordstrom have expanded their designer offerings which have taken a bite out of sales at Vancouver’s Hudson’s Bay. Nordstrom opened its luxury-heavy Vancouver flagship store in September of 2015 across the street at CF Pacific Centre in a building once occupied by Eaton’s. At the same time, Holt Renfrew expanded its Vancouver store to more than 190,000 square feet to carry many of the world’s leading luxury brands in a hybrid concession model. Brands themselves have been opening standalone stores in Vancouver when not being carried in multi-brand retailers. The Room will also likely see a boost when luxury multi-brand retailer Leone closes its doors forever this fall.
Franch explained that The Room’s assortment in Vancouver features fewer ‘first-line’ designers such as Gucci and Prada. That could give Hudson’s Bay an edge in attracting customers seeking something not available elsewhere.
IMAGE OF THE ROOM IN VANCOUVER’S HUDSON’S BAY SHOWCASING THE INTENTIONAL CLINICAL DESIGN. PHOTOS: HUDSON’S BAY
IMAGE OF THE ROOM IN VANCOUVER’S HUDSON’S BAY SHOWCASING THE INTENTIONAL CLINICAL DESIGN. PHOTOS: HUDSON’S BAY
The current location of The Room in Vancouver was unveiled in September of 2011 on the store’s second floor — the beautiful space launched with a splashy opening party and carried brands that included Mary Katrantzou, Erdem, Balmain, Roland Mouret, DSquared2, Alaia, and others. Former Hudson’s Bay Company VP Nicholas Mellamphy was the brainchild of The Room’s relaunch which began with an overhaul of The Room at Toronto’s Hudson’s Bay flagship on Queen Street in the fall of 2009. In 2013, the Hudson’s Bay Company planned to launch The Room at its downtown Montreal Bay flagship store as well as at the former Lord & Taylor store on Fifth Avenue in New York City, though neither materialized. Mellamphy operated and bought collections for The Room until his departure from the Hudson’s Bay Company in early 2016.
‘THE ROOM’ CONCEPT BEGAN 83 YEARS AGO IN TORONTO’S QUEEN STREET SIMPSON’S FLAGSHIP STORE
The Room’s history at the Queen Street Hudson’s Bay flagship spans more than 83 years. Until 1991, the Queen Street building was branded as a Simpson’s department store that in years past was a chain operating in several markets across the country. The luxurious St. Regis Room at Simpson’s carried some of the world’s leading luxury couture brands over the years, catering to Toronto’s carriage trade. Marjory Steele joined The St. Regis Room as a buyer’s assistant in 1962 and became the couture buyer in 1971, followed by Director in 1984. She brought in many new collections from global designers and was called the ‘first lady of fashion’ until her death in 1999.
The St. Regis Room concept at one time operated in Simpson’s stores in Toronto, Ottawa, London, Halifax, and Regina. In Montreal, the Salon Vendome department operated in parallel housing various luxury brands over the years.
The Room at Hudson’s Bay in Toronto, January 2020. Photos: Craig Patterson
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In Vancouver in 1998, the Hudson’s Bay Company introduced a St. Regis Room department to the northwest corner of the store’s third floor — it was only the second St. Regis Room department for a Bay store at the time. Designers in the Vancouver St. Regis Room included Thierry Mugler, State of Claude Montana, Ungaro Collection, Yves Saint Laurent Encore, Oscar de la Renta, Jean Muir, and others. The Room ultimately wasn’t successful in Vancouver and was shut down in the early 2000s. Vancouver was a different city in many ways in the late 1990s and today it has a much bigger fashion market, particularly because of a growing brand conscious Asian demographic.
IMAGE: THE VANCOUVER SUN, JUNE 9, 1998 VIA NEWSPAPERS.COM
The Hudson’s Bay building in Vancouver has a long history of carrying women’s luxury fashion brands, and was the first store to introduce high-end shopping to Vancouver. In 1948, the Vancouver store’s upscale department ‘The Mirror Room’ opened featuring some of the world’s leading luxury brands at the time. That included names such as Schiaparelli, Balmain, Balenciaga, and Christian Dior. Competitor Eaton’s, then located on West Hastings Street, introduced high-end brands in its ‘French Room’ in 1950 including the likes of Balmain, Jacques Fath, Lanvin, and Balenciaga.
In the fall of 1972, the Mirror Room relaunched at the Vancouver’s Bay store with boutique spaces for brands Lanvin, Ungaro and Givenchy. The Givenchy Nouvelle Boutique, according to newspaper reports at the time, featured branded carpeting with the ‘HG’ logo. Other brands carried in the Mirror Room included Jean Patou.
NEWSPAPER CLIPPING FROM THE VANCOUVER SUN ON DECEMBER 6, 1972. IMAGE VIA NEWSPAPERS.COM
In the 1980s, the Vancouver Mirror Room housed brands such as Missoni, Jean Claude Poitras, Krizia, Aquascutum, and in 1991 a Mr. Jax boutique opened which signalled a lower price point than in years past. Competitor Eaton’s, again, went on the offensive by stocking brands such as Escada, Kenzo, Tiktiner, and Sonia Rykiel in the 1980s. The small Holt Renfrew store at CF Pacific Centre also brought in competing brands, as did several multi-brand retailers that operated in Vancouver in years past.
Between 1985 and 1988, Hudson’s Bay also operated a Gucci accessory boutique on the main floor of the Vancouver store. Upscale menswear designers were also carried in the store’s ‘Hudson Room’ department. Browns Shoes once operated leased spaces for women and men within the Vancouver store with some upscale brands such as Manolo Blahnik and Bally of Switzerland.
NEWSPAPER CLIPPING FROM THE VANCOUVER SUN DATED AUGUST 31, 1985. IMAGE VIA NEWSPAPERS.COM
The Room’s update in Vancouver will aim to draw shoppers from competitors Nordstrom and Holt Renfrew, both of which have seen considerable success in Vancouver. The Vancouver Holt Renfrew store at CF Pacific Centre was the top performer in the chain for the past several years, and the Nordstrom store in the same mall was also the company’s top performer until at least last year. Affluent shoppers visiting Vancouver’s Hudson’s Bay store will also likely shop in other departments such as the main floor handbag hall featuring upscale brands such as Coach and Kate Spade, as well as the fifth floor men’s store housing several notable upscale brands. The overall retail design and brand matrix of The Room at Hudson’s Bay in Vancouver will make it a destination for visitors from Vancouver and beyond. Franch said that he and his team will be continuing to innovate in Vancouver as well as in the Toronto store — it will be interesting to see what happens next next to The Room concept at Hudson’s Bay.
GUCCI’S NEWEST RETAIL CONCEPT WILL BE SHOWCASED AT WEST EDMONTON MALL IN THE SPRING OF 2021. PHOTO: GUCCI (DUBAI MALL)
Italian luxury brand Gucci will open at West Edmonton Mall in Edmonton early next year, marking a significant milestone in the shopping centre’s efforts to secure upscale tenants. It will be the third standalone storefront for Gucci in Canada as well as the only standalone location for the brand in Alberta.
The Edmonton Gucci store will span more than 5,000 square feet on one level and will carry the brand’s full lines of ready-to-wear clothing for women and men as well as handbags, leather goods, footwear, accessories, and jewellery. The design of the store will reflect Gucci’s latest store design which is plush and opulent. That will include an interior featuring wood and velvet accents as well as ample use of marble flooring. Construction begins mid-October and the store is expected to open in March of 2021. Toronto-based dkstudio Architects Inc. designed the West Edmonton Mall space.
West Edmonton Mall Interactive MapWest Edmonton Mall Interactive Map
Gucci was one of the top brands at the former Holt Renfrew store in downtown Edmonton which closed in January of 2020. Sources said that Gucci handbags and shoes sold more than $3 million annually at Holts in Edmonton, an impressive number given the limited offering. Louis Vuitton was by far the top selling brand at Holt Renfrew in Edmonton, said to have been more than $20 million annually. Losing Holt Renfrew was a significant blow to downtown Edmonton, and the new luxury brands at West Edmonton Mall will also attract some wealthy consumers who might otherwise shop at the relatively upscale Southgate Shopping Centre.
THE GUCCI ACCESSORY AND BAGS SECTION AT HOLT RENFREW IN EDMONTON IN JANUARY 2019. GUCCI BAGS AND SHOES ARE SAID TO HAVE SOLD MORE THAN $3-MILLION/YEAR AT THE FORMER HOLT RENFREW STORE IN EDMONTON. PHOTO: CRAIG PATTERSONSCREEN SHOT OF GUCCI MEN’S SHOES FROM HOLT RENFREW’S WEBSITEGUCCI MEN’S DEPARTMENT AT TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO: GUCCI
West Edmonton Mall is scooping up the top brands that were once available at Holt Renfrew in Edmonton to open standalone stores — in the summer of 2019, Canada Goose opened a large standalone store at West Edmonton Mall, and Tiffany & Co., formerly only available at Holts, opened its West Edmonton Mall store in 2013.
Other brands carried at the former Edmonton Holts store could look to West Edmonton Mall as well, including the likes of Burberry and Max Mara. Some brands such as Fendi, which didn’t have a significant presence at Holts in Edmonton, could also be looking at West Edmonton Mall according to sources.
When it opens, the West Edmonton Mall Gucci store will be the only standalone location for the brand in Alberta. It will be another bragging right for Edmonton, which will also be home to the province’s only standalone Saint Laurent store. In Calgary, Gucci operates three concession spaces within the downtown Holt Renfrew store which includes an accessory boutique on the street level, a women’s ready-to-wear boutique on the second level and a men’s Gucci area on the third floor.
GUCCI WOMEN’S DEPARTMENT AT TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO: GUCCI
SCREEN SHOT OF GUCCI PRODUCTS FROM HOLT RENFREW’S WEBSITE
If Gucci were to open a standalone store at some point in Calgary, it would be most likely at CF Chinook Centre — few luxury brands are said to be interested in being in downtown Calgary unless it’s inside Holt Renfrew. Louis Vuitton opened a standalone store at CF Chinook Centre in the fall of 2018 after exiting the downtown Holt Renfrew store, which was a shocking move and a bit of a black eye for downtown Calgary (Chanel ended up securing Vuitton’s ground floor space at Holts). Other luxury brands could also look to open at CF Chinook Centre which is also home to standalone storefronts for Tiffany & Co., Burberry, Aesop, Canada Goose, and others.
In Canada, Gucci operates two standalone stores as well as several concessions. The first standalone Gucci store in Canada opened in the year 2000 at 130 Bloor Street West in Toronto in a 6,500-square-foot space that is currently being updated. A second Gucci store opened in 2006 in Vancouver at the Fairmont Hotel Vancouver, spanning 3,875 square feet — sources say that it could be replaced with an 8,000-square-foot store next year. Gucci’s other locations in Canada are located within Holt Renfrew and Nordstrom stores. In Vancouver, Gucci operates concessions at Holt Renfrew including separate shops for bags/accessories as well as women’s and men’s apparel. Holt Renfrew’s Calgary store, as mentioned above, features the brand in concession spaces.
In Toronto, Gucci operates its large concession at Holt Renfrew in Yorkdale as well as separate bag/accessory and apparel boutiques at Holt Renfrew on Bloor Street. Nordstrom’s CF Toronto Eaton Centre store features a main floor Gucci bag and accessory concession. In Mississauga, Gucci operates a bag/accessory concession at Holt Renfrew. In Montreal, Gucci operates concession spaces at Holt Renfrew Ogilvy for bags/accessories, women’s apparel, men’s apparel, and the store also features Gucci boutiques for men and women. Gucci shoes and belts are also carried at Nordstrom and Saks Fifth Avenue stores in Canada.
SCREEN SHOT OF GUCCI MEN’S FASHIONS FROM HOLT RENFREW’S WEBSITE
In years past, Gucci’s Canadian distribution was primarily in Holt Renfrew stores. In the early 1990’s, Holt Renfrew in Edmonton housed a Gucci boutique space (most recently occupied by women’s shoes) with a mall-facing entrance carrying bags and accessories. Holt Renfrew also operated Gucci bag/accessory boutiques in its other stores including a particularly large selection in Toronto and Montreal.
GUCCI BAG/ACCESSORIES CONCESSION AT HOLT RENFREW ON BLOOR STREET IN TORONTO. PHOTO: GUCCI
SCREEN SHOT OF GUCCI BAGS FROM HOLT RENFREW’S WEBSITEGUCCI WOMEN’S ACCESSORY DEPARTMENT AT TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO: GUCCI
In the 1980’s, Gucci’s price-point was lower and in 1985, a Gucci bag/accessory boutique opened in the Hudson’s Bay department store in downtown Vancouver, downtown Calgary and downtown Ottawa which operated for about three years. Upscale Hudson’s Bay-owned chain Simpson’s also featured Gucci accessory boutiques in the mid-1980’s at the Queen Street store in Toronto as well as at the Ste-Catherine Street West location in Montreal.
ADVERTISEMENT FOR THE GUCCI BOUTIQUE AT HUDSON’S BAY IN VANCOUVER IN 1985. PHOTO VIA NEWSPAPERS.COMADVERTISEMENT FOR THE GUCCI BOUTIQUE AT HUDSON’S BAY IN CALGARY IN 1986. PHOTO VIA NEWSPAPERS.COMADVERTISEMENT FOR THE GUCCI BOUTIQUE AT HUDSON’S BAY IN OTTAWA IN 1985. PHOTO VIA NEWSPAPERS.COM
West Edmonton Mall is becoming something of a luxury retail powerhouse that is expected to attract more brands. The Edmonton market is still relatively affluent despite low oil prices as well as challenges resulting from the COVID-19 pandemic. As well, when international tourism resumes, high-spending Chinese tourists are expected to return to visit West Edmonton Mall while at the same time, affluent international students will eventually return to the University of Alberta campus.
Next year West Edmonton Mall will be offering valet parking in a partnership with a new Toyota experience centre which will help woo affluent locals to the shopping centre. Another benefit to shopping in Alberta is that the province currently does not have a provincial sales tax.
Gucci is one of the world’s leading luxury brands with more than US $10 billion in annual sales. Gucci was founded in 1921 and is now part of the Kering conglomerate of luxury brands. Gucci operates about 500 stores globally. In the United States, Gucci operates a network of standalone stores as well as boutique spaces in stores such as Neiman Marcus, Saks Fifth Avenue, Bloomingdale’s, Nordstrom, and Macy’s (Manhattan store only).
An off-schedule podcast touring the Park Royal Shopping Centre in West Vancouver, British Columbia, in September 2020. Craig and Lee discuss what’s happening at Park Royal in a tour showcasing what’s open and what has closed recently.
Park Royal Shopping Centre Video Tour:
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.
The retail podium of the mixed-use 110 Bloor Street West building in Toronto will be seeing substantial changes that will include an impressively updated physical appearance as well as opportunities for new tenants. The retail podium spans more than 200 feet along Toronto’s prestigious ‘Mink Mile’ as well as frontage facing onto Cumberland Street and Village of Yorkville Park.
Renderings of the renovated commercial podium at 110 Bloor show a dynamic facade with dark metal finishes and a gold patterned public art piece directly above the updated retail facades. The podium will act as a centerpiece to the luxury stretch of Bloor Street West. Arlin Markowitz of CBRE explained that 110 Bloor is ‘centre ice’ for the area which has recently added several prominent luxury brands. To the west of 110 Bloor are storefronts for Gucci, St. John, Burberry, Tiffany & Co. and Louis Vuitton. To the east of 110 Bloor are flagship storefronts for Zegna and Hermes. Across the street are flagship locations for brands such as Prada, Dior, MCM and others.
Plans to redevelop the podium at 110 Bloor were put into place last year. That was made possible in part with the exit of three retailers on the western portion of the Bloor street side of the building, allowing for new tenant opportunities within four new retail spaces. That includes ‘Unit 1’ spanning 1,614 square feet, ‘Unit 2’ spanning 966 square feet, ‘Unit 3’ at 1,010 square feet, and ‘Unit 4’ with two levels including a street-facing 2,466 square foot space as well as an optional 2,346 square foot basement level. Unit 2 has already been leased to an international luxury brand according to Mr. Markowitz. Lease terms are between five and 10 years, according to marketing materials provided to Retail Insider by CBRE.
110 BLOOR ST. W. IN TORONTO AT 6:30PM ON TUESDAY, SEPTEMBER 15 2020. PHOTO: CRAIG PATTERSON110 Bloor Street West Art110 Bloor Street West Basement Floorplan110 Bloor Street West Floorplan
The existing Winners flagship store at 110 Bloor Street West will remain operational. Plans show a renovated entrance to Winners which is more upscale and matches the design aesthetic of the new Bloor Street facades as a whole.
The eastern portion of the Bloor Street frontage at 110 Bloor currently houses Brooks Brothers and J. Crew stores. Both companies recently filed for bankruptcy protection and their future on Bloor Street is uncertain. If both retailers were to exit the 110 Bloor complex, plans are in place to replace them.
The street level of Brooks Brothers spans about 4,570 square feet according to plans, while the J. Crew space is 7,507 square feet. The spaces may be combined to form one larger unit with triple-height facades according to marketing materials. Furthermore, an additional 13,000 square feet could be available on the basement level of the building to connect with street level retail.
110 Bloor Street West Brooks Brothers and JCrew Floorplan
The north facing side of 110 Bloor overlooks the Village of Yorkville Park and Cumberland Street. Renderings showcase the opportunity to create a basement level retail space that could house an urban-format grocery store. A lower level space spanning 13,295 square feet could be accessed from street level via a ground level space spanning 1,920 square feet according to lease plans indicating new tenant possibilities.
The 110 Bloor mixed-use building was built in 1980. When it was built, Bloor Street was beginning to find its place as a luxury destination for shoppers as well as residents. The 18 storey 110 Bloor building includes more than 150 condominium units above the retail podium. All residential units feature grand double doors into suites leading into expansive condominium apartments which often sell quickly when they come to market. The surrounding area bounded by Avenue Road to the west, Bellair Street to the east, Yorkville Avenue to the North and Charles Street to the south boasts the highest density of ultra high net worth households in Toronto if not all of Canada.
From its inception, 110 Bloor Street West has been home to luxury brand stores. In the 1980s, brands such as Celine and Byblos had stores in the commercial podium, followed by the 1990s which saw Louis Vuitton and Plaza Escada move in with prominent storefronts. Given the location at the heart of the Mink Mile, luxury retail will continue to be a focus for the leasing in the building.
Toronto’s Bloor-Yorkville continues to transform as new retailers and other businesses move into the area. Nearby Yorkville Avenue has added several luxury retailers since 2017 including Christian Louboutin, Chanel, Versace, Brunello Cucinelli and Off-White among others. ProWinko Canada is also leasing 5,280 square feet of space at 94 Cumberland Street, located at the corner of Bellair Street between Bloor Street and Yorkville Avenue. The 94 Cumberland Street space features more than 150 feet of frontage along Cumberland and Bellair Streets as well as soaring 18 foot ceilings. The space could be occupied by one tenant or divided into as many as three units. CBRE’s Arlin Markowitz is listing the space as well.
NEW RETAIL AT 94 CUMBERLAND STREETNEW RETAIL AT 94 CUMBERLAND STREET
BLOOR WEST VILLAGE (TORONTO). PHOTO: BLOOR WEST VILLAGE BIA
On September 16, 1970, Bloor West Village BIA in Toronto became the first Business Improvement Area in the world.
And as the concept celebrates its 50th anniversary this year, it’s becoming even more apparent during these challenging economic times brought on by the COVID-19 pandemic just how important BIAs are to communities.
PEOPLE LINING UP (AND DOWN!) THE BLOCK FOR A SHOW AT THE RUNNYMEDE “RUNNY” THEATRE! CIRCA 1927. PHOTO: BLOOR WEST VILLAGE BIA FACEBOOK
PHOTO: BLOOR WEST VILLAGE BIA FACEBOOK
“BIAs are integral to advancing distinct, livable, vibrant and resilient business communities in Ontario and beyond, and arguably Ontario’s (Toronto’s) greatest export,” said Kay Matthews, Executive Director of Ontario Business Improvement Area Association. “We’re excited to see the growing spread of this world export. OBIAA strives to be pivotal in building capacity of our BIAs by providing a platform for sharing their wonderful ideas and best practices among our BIAs.
KAY MATTHEWS. PHOTO: LINKEDIN
“It’s a very different thinking than it was when it was set up 50 years ago. When we did a return on investment of BIAs a couple of years ago, what we learned was the one thing that most BIAs feel that they’re doing is community development. So it’s beyond the idea of just creating a shopping area. It’s creating a community area. One where, as a resident, it’s a part of your fabric of your day to day. We often talk about our BIAs being the heart of a community. We use the word heart really specifically because it stands for heritage, economy, arts, revitalization, tourism. We’re broader than we were originally anticipated to be.
“And we are the feet on the street. When we closed down on March 17 and became ghost towns it was like a proxy for the whole economy. It was a proxy for the whole community disappearing and going within.”
Today, there are more than 300 BIAs in Ontario and about 500 across Canada. There are 84 BIAs in Toronto, 19 in Ottawa, 13 in Hamilton. Some are also very specific to cultures such as Chinatown. There’s a wide variety and a broad range of what they do.
BIAs across the country, and around the world, are being invited to celebrate the 50th anniversary of the organizations.
The BIAs are becoming increasingly more important as communities across the country face tough economic times due to the pandemic.
“I think they’re going to be pivotal in the recovery,” said Matthews.
Kensington Night Market
Annie MacInnis, Executive Director of the Kensington Business Revitalization Zone in Calgary, said that at a very basic level the job of a BIA is to create or support a business district where community and businesses thrive.
Part of that includes beautifying an area and ensuring that it is safe.
“Walkability, pedestrian comfort, those are all things that we consider,” said MacInnis. “And we also do marketing and promotion of the area. Most BIAs organize events of one kind or another.”
In Calgary, it’s been particularly tough for local businesses these days. Not only have they struggled due to the pandemic but the economy has been challenged for the past six years as a result of oil prices which collapsed at the end of 2014.
“BIAs are absolutely critical particularly here in Calgary. We’re five years into a downturn. We already had businesses close to the edge prior to COVID and so the presence of a BIA is going to be ever so important as we try to help businesses survive through this next year or so,” said MacInnis. “But we do know from international downtown association data is that businesses that are in a BIA are more likely to survive any kind of a disaster – whether that’s a physical disaster like a hurricane or a flood or whether it’s an economic downturn or whether it’s a current situation like COVID.
ANNIE MACINNIS. PHOTO: TWITTER
“They also recover quicker in a BIA. One of the things we look at when we think of BIAs is that it’s going to be really important for us to do the job that we do and do it even better because we not only have a responsibility to support our businesses who are still struggling to survive but we need to do what we can also to attract those green shoots – those new entrepreneurs – and we also need to look at (attracting) more to come and fill those spaces. At a very basic level, our job is to try to support the business district as a whole.”
Vancouver-based outdoor cooperative retailer MEC, formerly ‘Mountain Equipment Co-op’, won’t be a cooperative much longer following a filing for creditor protection and acquisition. Los Angeles-based Kingswood Capital Management was approved by MEC’s board to acquire substantially all of MEC’s assets through the Companies’ Creditors Arrangement Act (“CCAA”) to keep MEC a going concern in Canada. Several of MEC’s stores are expected to close according to one source familiar with the proceedings, and the retailer’s CEO will also be replaced.
MEC is a retail cooperative with a network of 22 large-format stores across Canada. The retailer also has a strong e-commerce site which will remain operational throughout the CCAA proceedings, according to a press release. MEC was established in 1971 and is Canada’s largest consumer co-operative with more than five million members in Canada, and has invested more than $44 million into non-profit organizations that support recreation and conservation.
MEC has been in financial trouble. In July, the retailer announced 200 frontline layoffs after stores were closed temporarily due to COVID-19. MEC lost more than $11 million for the year ending February 24 2019 on sales of about $462 million. The retailer restructured last year and continued to lose money as it tightened operations. MEC had been expanding its base of stores rapidly into markets across Canada. It currently has stores in British Columbia, Alberta, Manitoba, Ontario, Quebec and Nova Scotia.
(MASSIVE WOOD CANOPY IN THE KELOWNA STORE, BUILT BY VANCOUVER-BASED PEREGRINE.BUILD)
Los Angeles-based Kingswood Capital Management LP will acquire substantially all of MEC’s assets through the CCAA proceedings and will keep MEC a going concern. It appears to be the case that MEC’s status as a cooperative will be decommissioned as part of the process, which complicates things. While the board of directors at MEC unanimously support Kingswood’s acquisition, a percentage of members in theory would have to agree as well. One source noted that several members will be asked to speak at upcoming court hearings relating to the deal. The acquisition remains subject to Court and regulatory approvals and is expected to close in the fourth quarter of 2020.
Eric Claus, a longstanding MEC member based in Canada, will lead Kingswood’s newly formed Canadian affiliate as Board Chair and CEO. He’ll take over from Phil Arata who became CEO of MEC in July of 2019 after the retirement of David Labistour. Claus was formerly CEO of US discount grocer Save-a-Lot and prior to that, Canadian discount apparel chain Red Apple. Analysts are hoping that Claus will recognize the importance of customer experience at MEC rather than simple looking at the bottom line.
In January of this year, Arrata provided statements on the company’s restructuring which included cost-cutting such as subletting the Vancouver head office which was about “three times the size that was required” and moved into a smaller location. Contracts with suppliers were renegotiated and competitive categories such as yoga wear and pet goods were reduced as MEC focused on sporting goods for snow, camping and climbing.
High staff turnover became an issue for MEC, which in January gave full or part-time employment positions to about 70% of its casual and non-permanent store staff, or about 950 employees. Since then, MEC has cut more than 900 jobs — in January the retailer had about 2,400 employees which has been reduced to about 1,500 people with 600 of those working in the 22 stores that are currently open.
Kingswood Capital is a private investment firm, “focused on businesses that are undergoing varying degrees of operational, financial or market-driven change,” according to its website. “In addition to access to capital, we bring relevant industry relationships and a broad network of internal and external operating resources that can strengthen the business and enhance value.” Kingswood’s portfolio includes companies such as AVAD, Versar, AutoAnything and WAVE Electronics.
Photos of the new Mountain Equipment Coop location in Kelowna. Photo: Robb Thompson
“MEC is an iconic brand founded on strong values and has a loyal following,” said Kingswood’s Managing Partner, Alex Wolf. “We have tremendous respect for those values and the loyal membership and are honored to be partnering with Canadian operating partners who will represent us on the ground in Canada working with MEC’s management team following the closing to ensure a bright future for MEC. Upon completion of this transaction, we – together – can inspire and equip Canadians in leading an active outdoor lifestyle for years to come.”
“After careful consideration of all viable options, the Board made this difficult decision,” said MEC’s Board Chair Judi Richardson. “Despite significant progress on a thoughtful turnaround strategy undertaken by new leadership, no strategy could have anticipated or overcome the impact of the global pandemic on our business. Today’s announcement, including the transition from a co-operative structure, is creating a positive path forward for MEC. Kingswood’s commitment to honouring the MEC ethos and the solid financial footing that this transaction will provide gives us tremendous confidence in the future. Since our founding in 1971, MEC’s deeply loyal customers have been synonymous with who we are and what we do. That won’t change.”
One source noted that talks had been ongoing to save MEC after the cooperative saw insurmountable financial struggles with costs growing substantially higher than revenues. A special committee of the Board spoke to multiple venture capital firms and Kingswood was ultimately chosen. The committee sought refinancing from potential lenders, looked for government support, and examined voluntary member assessments prior to striking a partnership with Kingswood.
Alvarez & Marsal Canada Inc. is the court-appointed monitor of MEC. Since February 2020, Alvarez & Marsal Canada Securities, an affiliated company, has been acting as financial advisor to MEC to get operations back on track.
Photos of the new Mountain Equipment Coop location in Kelowna. Photo: Robb Thompson
Sales forecasts for the 11 weeks ending November 29, 2020, are optimistic. The forecast period expects to see sales of $68,410,000 for the time period, with an additional $6,442,000 being paid to MEC from the Canada Emergency Wage Subsidy. Expenses are expected to surpass revenues however, with projected costs of $86,606,000 during the 11 week period resulting in a net operating cash flow loss of $11,753,000 over the same period. Adding in professional fees, debt service and contingency expenses, MEC will see a cash flow shortfall of $17,369,000 over the 11 week forecast time period. The company will also be indebted in the amount of $92,432,000 over the period, up from less than $80 million at present.
The CCAA cash flow forecast indicates that MEC may require financing up to $89 million during the forecast period, provided by its incumbent senior lenders RBC, CIBC and TD Bank. Interim financing could be terminated early.
MEC’s store fleet could shrink according to one source, with as many as five of the retailer’s 22 stores possibly closing as part of the acquisition. The future of a new MEC store at Midtown Plaza in Saskatoon, Saskatchewan, is now also in question.
Competition in the sporting goods space in Canada has grown substantially in recent years, particularly with the entry of French sporting goods behemoth Decathlon into Canada in the spring of 2018. Decathlon plans to open stores across Canada and is currently negotiating lease deals with brokerage Oberfeld Snowcap. Other competitors include Canadian Tire which owns the Sport Chek and Sports Experts retail operations. At the same time, Quebec-based competitor Sportium, owned by SAIL which filed in the spring, shut down operations as part of the restructuring. As of late, Canadians have been buying record-breaking quantities of outdoor goods following store shutdowns and an international travel ban. Bicycles, camping gear and other outdoor categories have seen strong sales since the spring.
