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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.

Retail Innovation Challenge Launched to Help Retail Sector Adapt and Emerge from COVID-19

The Bensadoun School of Retail Management at McGill University in Montreal has launched a retail innovation challenge to help the retail sector as it adapts to and emerges from the COVID-19 pandemic.

The School invited university students across Canada from different academic fields to come together and generate actionable solutions to assist the retail sector.

The challenge presents an experiential learning opportunity to mobilize the knowledge and creativity of university students and embolden them to solve real problems in collaboration with businesses during this period of economic recovery, says the School.

Charles de Brabant, executive director of the Bensadoun School, said the educational institution launched this initiative as a way to assist the retail sector in these unprecedented times that could be different from and complementary to what other organizations were doing, such as retail industry associations and consulting firms.

The mission of the Bensadoun School is to educate and empower a global network of interdisciplinary thinkers and practitioners who research, envision and develop a dynamic and successful world of retail.

“The challenge is to give students, who may not have internships this summer or have seen them canceled, real life opportunities to work with retailers . . . who are trying to figure out how they’re going to reinvent themselves or rethink their businesses or what are good ideas to survive as the economy opens up,” said de Brabant. 

“So this is where the Retail Innovation Challenge came as an idea in mid-April and we decided to launch it eventually as a series of challenges starting with the food sub-sector of retail and we broadened it to include restaurants in this category.”

Business cases have been distributed to student teams across the country which include two restaurants (Bacaro Pizzeria and Food Chain), one coffee business (Café Barista), and one grocer (Can Am). These last two companies were principally BtoB businesses prior COVID-19 and pivoted to online BtoC to survive. 

Eighty teams have been registered for the challenge and they come from 20 universities throughout Canada. The challenge, which began on June 4th, will run over three rounds. Townhalls will be offered with experts from two sponsors, Lightspeed and Canada Post, as well as mentoring sessions for the 8 finalist teams during the week of June 15. A semi final round on June 14 will allow the top five teams per company to present the respective company leaders. The finals will be held virtually on June 21 in front of an independent jury and winners announced that day.

“Like most sectors of the economy and maybe even more so, retail has been strongly impacted by COVID-19, especially retailers focused on non-essential goods and services with the closure of almost all physical stores, significant layoffs, and a dramatic drop in demand, even for those with an on-line offering. And a recent study by McKinsey & Company reveals that as the economy opens up, only 20 percent of Canadian consumers feel optimistic about Canada’s economic recovery,” says the Bensadoun School. 

De Brabant said the ambitions of the School are to be the leading academic institution in the world dedicated to the future of retail.

“So we have global ambitions but we’ve basically decided given the pandemic and the focus on local and national to focus more on local companies in this first instance at least trying to get this thing off the ground but mostly also because there seems to be this very strong nationalistic community spirit that’s developed throughout this pandemic,” he said. “So we’ve put our focus there.”

The School was launched after receiving a $25-million donation from the  Bensadoun Family Foundation, created by Aldo Bensadoun who founded and led Aldo, the global shoe empire. It began taking its first students in September of 2018.

Ontario Government Announces Moratoriums on Commercial Rent Evictions

Open Sign

Ontario joined a growing list of provinces who have placed moratoriums on commercial rent evictions to help small businesses cope with the economic pummelling they’ve received due to the COVID-19 pandemic.

Premier Doug Ford, in a news conference to announce the launch of Stage 2 of the province’s relaunch strategy, said everyone is eager to get things back to normal “and no one wants to get the economy going and get people back to work more than I do.”

“We need to get people back to work. We need to get the economy going and to do this as quickly as possible. For many small business owners today’s announcement is good news because our small businesses are struggling right now and for them making rent is top of mind. That’s why we worked to get $900 million to help businesses with commercial rent relief,” said Ford.

He said commercial landlords have to be “fair and help out everyone, but we still heard about some landlords who just didn’t get the message. Well, I’m here for the little guy. That’s why I ordered legislation to ban commercial evictions for those who qualify for the commercial rent relief program. The ban would take effect for evictions on or after June 3 and last until August 31. Our small business owners are the backbone of our communities and now more than ever we all need to support them.”

Most regions in Ontario will be allowed on Friday to proceed to Stage 2 in the province’s relaunch during COVID.

“We are pleased to see Premier Ford making good on his commitment from a couple of weeks ago that if landlords wouldn’t step up on rent, he would step in,” said Karl Littler, Senior Vice President, Public Affairs at the Retail Council of Canada.

In a joint statement, Ryan Mallough and Julie Kwiecinski, both Directors of Provincial Affairs, Ontario, for the Canadian Federation of Independent Business, said the organization applauds the Ontario government’s announcement to finally put a temporary halt to commercial tenant evictions.

“CFIB has been calling for a commercial eviction ban for tenants in good standing since the beginning of the COVID-19 pandemic. We are relieved that no more struggling small businesses will find locks on their doors because their landlords are unwilling or unable to participate in the Canada Emergency Commercial Rent Assistance (CECRA) program,” said the statement.

“We will continue to urge the provincial and federal governments to make much-needed improvements to CECRA to either make it easier for landlords to apply, or to pass the financial relief directly to small business tenants. CFIB also welcomes the details provided today on Stage 2 business reopenings. After months of decreased revenues and mounting bills, retail businesses in malls, the personal services sector, and bars and restaurants in most regions in Ontario will finally start down the long road to economic recovery.

“We also appreciate the government’s cautious, yet sensible approach to regional reopening, not holding back businesses from opening their doors to customers sooner in areas where warranted by COVID-19 statistics. We look forward to working with the Ontario government on a healthy and strong economic recovery.”

On Friday, Alberta and Saskatchewan also announced moratoriums on rent evictions.

“It’s been clear for months that an evictions ban has been a necessary step, which is why so many countries did this in late March. I feel awful for the people who have lost their businesses or experienced extreme stress due to the delays in provincial action. We expect many more landlords to consider CECRA now. But attention must now turn back to the federal Ministry of Finance and the CMHC (Canada Mortgage and Housing Corporation) to significantly reduce CECRA’s complexity. With eviction bans in place, that will be the biggest factor in limiting rent relief for small business,” said Jon Shell, co-founder of the grassroots coalition Save Small Business, supported by about 40,000 small businesses across Canada.

The CFIB said 44 percent of Canada’s small businesses are now fully open, up from 38 percent two weeks ago, but many regional and sectoral differences remain and some sectors, particularly restaurants and hospitality, continue to be largely closed. Only 15 percent of small firms report their sales have returned to normal, said the organization on Monday.

It said New Brunswick (59 percent) and Alberta (54 percent) lead the way with the largest share of open businesses, while Newfoundland and Labrador (24 percent) continues to trail the rest of the country. In Ontario, 37 percent of businesses are fully open and only 12 percent said their sales have returned to normal.

“There are definite signs that economies are awakening, with more than half of small businesses reporting they are fully open in some provinces,” said CFIB president Dan Kelly. “However, for many recovery is another question as just opening your doors does not guarantee your customers will return.

“I am deeply worried about the future of businesses in sectors like transportation, health and social services, arts and recreation and restaurants/hospitality as fewer than one in 10 of these firms have sales at or near normal. Our main street businesses will need a lot more support, both from government and from consumers, before the crisis is behind them.”

The CFIB said only 13 percent of hospitality/restaurant businesses and 21 percent of arts and recreation businesses are fully open, compared to 44 percent of retailers and firms in the personal services sector. Additionally, certain personal services businesses, like hairdressers, remain closed in most provinces.

CECRA for small businesses will lower rent by 75 percent for small businesses that have been most affected by COVID-19.

It will provide forgivable loans to qualifying commercial property owners to cover 50 percent of three monthly rent payments that are payable by eligible small business tenants who are experiencing financial hardship during April, May, and June. In this way, CECRA for small businesses will provide relief for small businesses paying less than $50,000 per month in gross rent that have either been forced to close due to the pandemic or have had their revenues severely impacted by at least 70 percent, says the CMHC which will administer the program on behalf of the Government of Canada and provincial and territorial partners.

Field Agent Canada Launches Innovative Retail Ratings Program for Online Products

Field Agent Canada, a company that leverages crowdsourcing and mobile technology to collect retail audits and conduct mystery shops for retail operations, has now launched an easy and cost-effective way to get ratings and reviews for products being sold online.

Jeff Doucette, General Manager of Field Agent Canada, said the concept mobilizes real shoppers to buy a brand’s products from specific retailers, try them at home and then leave honest ratings and reviews on product pages on either brand or retailer websites.

“It’s a new service that we’ve launched in Canada based on the success we have had in the U.S. business, which launched it earlier in the year. It meets an important need in the industry especially as online sales are seeing dramatic increases,” said Doucette.

Field Agent Ratings & Reviews helps brands ensure that their own brand website and the websites of different retailer partners have a sufficient number of ratings and reviews on each product in their lineup.”

Doucette said research discovered that many products had either no reviews or very few reviews. Other products had reviews that were really dated or did not include a lot of detail that was helpful to other shoppers.

“We’ve done surveys and explored the topic in-depth and even on grocery store and drug store type products, shoppers are using ratings and reviews to help them decide which products they’re going to put in their online baskets,” said Doucette.

“Field Agent Ratings & Reviews is about making sure that every single product has a good assortment of reviews and that they provide relevant information to help other shoppers make purchase decisions.”

The Field Agent Ratings & Reviews concept is very simple as it takes all of the work out of it for the brand. The brand provides a list of products that they would like reviewed and the website(s) where they would like those reviews posted. Field Agent takes it from there.

Shoppers are then asked to buy a specific product at the specified retailer either at a local store or online. This ensures that the posted review is a result of a verified purchase from a specific retailer and the purchase is made by a real Canadian shopper.

“If someone is placing a review on a specific retailer’s website, we are ensuring that that product was actually bought from that retailer,” said Doucette.

“Field Agent has 125,000 Canadian users that have downloaded our mobile app and we post Ratings & Reviews opportunities in the app to qualified shoppers. They’ll go and buy the product at the local store, they’ll try it at home, and they’ll provide us with verification of where they’ve bought it so we know it’s a verified purchase at the correct retailer. We then we ask them to post their product review on the retailer/brand website and also submit the details of the review through the app so our client can track the reviews on our on-line dashboard; making the process easy for the client to see all the reviews posted on their products.”

The big question that normally comes up, added Doucette, is if the reviews and ratings are being filtered. That’s a big no-no.

“It’s really about genuine reviews and real honest opinions. We do not filter out less-positive reviews but we do stress that the review must be detailed and explain why the shopper gave the rating that they gave. No three-word answers. We get the shopper to elaborate and give some context as to why you gave it a four out of five instead of a five out of five,” he said.

“Field Agent Ratings & Reviews is basically a hands-off solution where our clients only need to provide us with a list of items and the sites where they want reviews to be posted and we take care of the rest,” said Doucette.

There has been a significant increase in online shopping over the past few months so the launch of this service is very timely. Shoppers today are increasingly shopping online, whether it’s for delivery or pick up, and one of the main ways they filter products is by the star ratings on each product.

“Products that do not have a robust assortment of reviews will have a smaller chance of making it into the basket.” said Doucette. “Ensuring all products have ratings and reviews needs to be part of every brand’s e-commerce strategy.”

Field Agent Ratings & Reviews provides a quick and inexpensive solution for brands looking to boost their online sales performance in today’s omni channel marketplace.

To learn more click here.

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

Cannabis Retailer ‘Choom’ Opens Flagship Retail Location in Vancouver [Photos]

NEW CHOOM FLAGSHIP. PHOTO: CHOOM

Choom, one of Canada’s leading recreational cannabis retailers, has launched a flagship retail store in the Olympic Village neighbourhood of Vancouver, B.C. (191 West 2nd Avenue).

The company — which has already seen great success in Ontario and Alberta — is expanding its reach despite the current economic climate as a result of COVID-19.

Choom is known for its elevated customer experience through its implementation of curated retail environments and in-store educators, all of whom are trained to provide a personalized client experience.

The newest Choom location will highlight cannabis favourites from local, B.C. licensed producers, as well as products by some of North America’s leading cannabis brands. Brands including Whistler Cannabis, San Raphael ’71, and Dosist, will all be amongst the Olympic Village Choom lineup.

“Today, the Choom team celebrates another exciting milestone with the opening of our flagship store in our hometown of Vancouver, B.C.,” said Corey Gillon, CEO of Choom. “Thanks to the world-class, retail expertise of our team, we are excited to share a reinvigorated version of the Choom brand – one that is founded on providing an elevated retail experience, positioning Choom as a leader in the retail cannabis space. From the novice user to the more experienced, our goal with Choom is to create a unique, welcoming environment for our customers that is rooted in our company’s ethos.”

The space was designed by Vancouver-based Cutler and millwork was manufactured by Peregrine.

INTERIOR OF NEW CHOOM FLAGSHIP. PHOTOS: CHOOM

Outfitted with premium furnishings, Choom’s new Vancouver flagship store will provide customers with the usual elevated experience previously known to customers in Alberta and Ontario.

To date, Choom operates 18 retail locations across three provinces: Alberta, Ontario, and B.C.. With an aggressive growth strategy to increase its national footprint planned for the next three to five years, Choom’s newest B.C. location follows closely behind the company’s most recent acquisition of a flagship location in Niagara Falls, Ontario.

The Canadian brand notes that its Olympic Village location is only the first new store to open in B.C. and that there are six stores planned for the province in the near future.

Inspired by Hawaii’s “Choom Gang” – a group of buddies in Honolulu during the 1970’s who loved to smoke weed – or as the locals called it, “Choom”, the brand encourages cannabis consumers to embrace an active lifestyle — one that is inspired by the social activities and pastimes of the famous “Choom Gang”.

The fast-expanding retail cannabis company has flourished in the wake of Canada’s cannabis legalization in 2018, and today Choom has one of the largest store networks in Canada, with the company’s sophisticated and inclusive culture and vast product offering no doubt having much to do with its continued success.

In the wake of the current COVID-19 pandemic, Choom’s flagship location will offer click-and-collect services to all customers, allowing purchases to be made both in-store and online.

In support of Canadian health authority recommendations, the store will be actively practicing social distancing and will adhere to elevated safety and sanitization measures to protect the health and safety of customers and in-store employees.

Cannabis retail has remained an ‘essential service’ in British Columbia amid the COVID-19 pandemic, ensuring profitability within the sector despite the surrounding shutdowns. In other parts of the country, such as Ontario, the ‘essentiality’ of cannabis retail was revoked in April after being deemed ‘essential’ at the beginning of the COVID shutterings. Retail insider recently reported on Friendly Stranger Holding Group and its plans for expansion across the GTA and potentially the entire province. Clearly, as Canada makes its transition to the ‘new normal’, cannabis retail will continue to proliferate.

MUJI Opens 2nd Largest Store in Canada at Surrey’s Guildford Town Centre [Photos]

PHOTO: LEE RIVETT

Minimalist Japanese retailer Muji has opened its second largest Canadian store at the Guildford Town Centre in Surrey near Vancouver. It is now the largest Muji store in British Columbia, bigger than the downtown Vancouver Muji store on Robson Street which became the largest outside of Asia when it opened in 2017.

The 15,890-square-foot Guildford Town Centre Muji store is the first suburban location in Canada to span two levels. The first floor spans 8,387 square feet according to lease plans, with the second level encompassing 7,512 square feet. Escalators connect the two levels. The store’s design is similar to other Muji stores in Canada, featuring an exposed ceiling and natural wood accents throughout. Given the COVID-19 pandemic, the store’s layout is more spacious than expected.

Physical distancing is encouraged with the store’s capacity set at 50 people. Hand sanitizer is available in the store for all customers. Face masks are encouraged though not required. Returned merchandise will be quarantined for three days before returning to the sales floor. According to a sign in the store, cash will not be accepted while credit and debit cards can be used for payment.

The main floor of the Guildford Muji store includes departments for stationery, health & beauty, kitchen & tableware, laundry/cleaning, storage, and furnishings for the living room and bedroom. Upstairs is women’s wear, men’s wear, children’s wear, accessories, bags & shoes, ‘inner wear’, and travel goods. The second level also includes Muji’s embroidery service and fabric print service. The Muji ‘aroma bar’ is temporarily not available, according to the company, as a safety measure due to COVID-19.

CLICK FOR INTERACTIVE MALL MAP AT GUILDFORD TOWN CENTRE

CBRE Vancouver‘s office, including Martin Moriarty and Mario Negris, were involved in negotiating the Guildford lease deal with landlord Ivanhoé Cambridge. The duo also negotiated the lease deals for Muji’s other four stores in British Columbia. Brokerage CBRE has been involved with Muji’s negotiations across Canada, led by Arlin Markowitz, Senior Vice President of CBRE’s Downtown Toronto Urban Retail Team.

Muji’s opening is good news at a challenging time. In March, businesses deemed ‘non-essential’ were forced to close in British Columbia as well as across Canada. Stores have begun to open slowly — last month mall-based stores were permitted to reopen in British Columbia, and shoppers are starting to come back. The shutdown hit the bottom line for most businesses and some have filed for bankruptcy protection and some have closed entirely.

The largest Muji store in Canada is located in downtown Toronto at the Atrium complex on the corner of Yonge Street and Dundas Street West. It was also the first Muji location in Canada when it opened in 2014 — the 4,400-square-foot store was expanded to an impressive 20,000 square feet over two levels in November of 2018, making it the largest Muji location outside of Asia. Prior to that, the downtown Vancouver Muji store, measuring more than 14,500 square feet, held the title for the largest Muji store outside of Asia.

Muji now operates nine stores in Canada. Four of those are in the Vancouver area, including the Robson Street flagship that opened in December of 2017, a Metropolis at Metrotown location which expanded in 2018 to 12,305 square feet, a store at CF Richmond Centre which expanded to 9,212 square feet in February of 2019, and the new Guildford Town Centre store which is the largest of them all. In the Greater Toronto Area, Muji operates its massive downtown Toronto flagship store as well as a 5,225-square-foot store at Mississauga’s Square One (opened in November of 2015), a 6,375-square-foot store at Toronto’s Yorkdale Shopping Centre (opened in October of 2016), a 6,000-square-foot space at CF Markville which opened in the summer of 2017, and a store at Scarborough Town Centre, measuring about 6,800 square feet which opened in March of 2018.

In 2018, Muji was re-evaluating its Canadian operations as it looked to open larger stores. That was according to Masaaki Kanai, Chairman of parent company Ryohin Keikaku, who told us in an interview in 2018 that Muji is not only looking at opening substantially larger stores, but that it is also considering opening grocery stores, hotels, designing public realm, and even getting into residential development. A Muji hotel location was rumoured to be part of a new development on Bloor Street in Toronto, though no formal announcements have been made.

Muji was also said to be looking at the Montreal, Edmonton, and Calgary markets to open stores. No announcements have been made yet, though landlords had confirmed that they were having conversations last year.

COVID-19 has changed the retail industry at least for the time being, and expansion plans for some brands are said to have been put on hold. We’ll continue to follow Muji’s expansion in the Canadian market, which could include new units as well as possible expansions of some existing units in Ontario.

Canadian Provinces Implement Moratoriums on Commercial Rent Evictions to Help Businesses

More provinces have announced moratoriums on commercial rent evictions to help retailers and small businesses across the country survive the economic challenges of the COVID-19 pandemic but Ontario has still not ventured in that direction.

Saskatchewan and Alberta were the latest provinces to announce that initiative.

Jon Shell, co-founder of the grassroots coalition Save Small Business, supported by about 40,000 small businesses across Canada, said it has been obvious to many in the small business community since late March that moratoriums on commercial rent evictions are both critical for the recovery and a moral obligation.

“But provincial dithering has led to massive unnecessary stress for small business owners. Many simply gave up while Premiers waited to act. Some were evicted. No one should be proud of this — they should be embarrassed at how long it took them to take this logical action,” he said.

“In Ontario, Doug Ford continues to yell at landlords on TV instead of acting. He continues to abandon small business without explanation. Hopefully now that every other province is coming around he will finally choose to follow.

“We are hearing very positive signs from B.C. landlords looking at CECRA now that the evictions ban is in place. It’s incredibly important that rent relief is paired with an evictions moratorium and we are not at all surprised to see more uptake of the program in B.C. now that it’s in place.”

Karl Littler, Senior Vice President, Public Affairs at the Retail Council of Canada, said that although Ontario does not have one yet, the province is looking seriously at it.

“The reason a moratorium is helpful is by temporarily suspending the landlord’s ability to threaten — or actually conduct — an eviction while seeking to extract more rent than the tenant can afford to pay, not only will that lead to a more balanced position in negotiation on rent as between landlord and tenant but it is also likely to have landlords take a serious second look at the value of the 75 percent rental income under the CECRA (Canada Emergency Commercial Rent Assistance) program,” said Littler.

“A landlord who takes the position that it doesn't matter that my tenant has been shut by public order for weeks or months and has had little or no income from the property is being unrealistic — and in RCC's view . . . is subordinating both their tenants' and their own medium and long-term economic interests to the impulse to try a cash-grab by threatening eviction.”

On Friday, the Alberta government said many Alberta businesses are facing challenges paying their rent during the COVID-19 pandemic and will continue to feel the economic pressure even as their businesses reopen.

To help ease the economic pinch, the government is planning legislation to ensure commercial tenants will not face rent increases or be evicted for non-payment of rent due to the COVID-19 public health emergency. The new measures will help address shortfalls in the current Canada Emergency Commercial Rent Assistance (CECRA) program, and will give eligible business owners peace of mind as they reopen and help with the provincial economic recovery. Additional details are expected to be finalized during the current summer session, it said.

“It’s great that provinces are moving on commercial eviction protection. We’ve been asking for this since March and it’s a critical protection, particularly since landlords have all the power in the CECRA program. Having said that, rent relief is still a giant mess that needs a clean up. Commercial eviction protection is part of the clean up but other things need to happen too. CMHC (Canada Mortgage and Housing Corporation) needs to clean up their long wait times and complicated application process. And the federal government needs to make more money available directly to tenants through programs like CEBA (Canada Emergency Business Account),” said Laura Jones, executive vice-president of the Canadian Federation of Independent Business.

The Retail Council of Canada said it applauds the governments of Alberta and Saskatchewan for listening and responding to the needs of small and medium-sized retail businesses with the recent announcements of moratoriums on commercial tenant evictions.

Rent relief remains a priority issue for RCC as retailers of all sizes with severely-reduced revenues have no ability to pay their rent. With many landlords across the country choosing to ignore the involuntary nature of the Canada Emergency Commercial Rent Assistance (CECRA) program, store closures are inevitable, it said.

Over 225,000 Albertans and 68,000 Saskatchewanians worked in retail stores in 2019. That's why the Alberta and Saskatchewan moratoriums on commercial rent evictions are such important investments into the provinces' economic futures, added RCC.

“We are grateful to the Alberta and Saskatchewan governments for their swift action in helping Alberta's 17,500 and Saskatchewan's 4,900 retail businesses continue to survive and operate during these extraordinary times," said Diane Brisebois, President & CEO, Retail Council of Canada. "Eliminating the fear and threat of eviction over unpaid rent allows business to focus on their recovery. We encourage all provinces to follow suit in enacting a similar moratorium in the interests of retailers across the country.”

Michael Kehoe, Lead Ambassador in Canada for the New-York based International Council of Shopping Centers, said commercial landlords have the ability to enforce their ability to collect rent under their leases and many have been doing so during the COVID-19 lockdown period.

“In an era where tenant retention is critical to ensure that consumers have stores and restaurants to return to as the safety measures are being lifted the legal may be different from the practical,” said Kehoe, a veteran of more than 40 years in the industry and broker/owner of Fairfield Commercial Real Estate in Calgary.

“Everyone in the commercial real estate transactional chain should be working together at this critical time to avoid jeopardizing the survival of small business. I do not feel that provincial government mandated moratoriums on commercial evictions are practical. Our consumer real estate industry has been built on a free market economy and now is not the time for government mandated controls on tenant and landlord matters.

All parties must be working together with communication channels open at this critical time to ensure the survival of our favourite shopping and dining venues.”

The Alberta government also announced Friday that it is committing up to $200 million in funding for eligible businesses and non-profits to access up to $5,000 to offset a portion of their relaunch costs. These funds can be used for implementing measures to minimize the risk of virus transmission, (such as physical barriers, personal protective equipment, and disinfecting supplies), rent, employee wages or replacement of inventory. The program’s online application is expected to be available in the coming weeks. Program details, including eligibility, are being confirmed.

Canada Goose Pulling Back on Multi-Brand Retailers as it Focuses on Direct-to-Consumer Store

CANADA GOOSE’S YORKDALE FLAGSHIP: PHOTO VIA FACEBOOK

Toronto-based fashion brand Canada Goose, known particularly for its warm outerwear, is looking to focus on sales through its own stores and online channel as it pulls its line from multi brand retailers. Since its first standalone store opened in 2016 in Toronto, Canada Goose has opened 21 stores globally with seven of those being in Canada.

Canada Goose’s focus on direct-to-consumer channels could pose a threat to multi-brand retailers in Canada as well as globally. Earlier this year, we reported that Canada Goose had pulled its product from Quebec City-based retailer La Maison Simons. After that report, French language publication La Presse reported that Canada Goose had pulled distribution from retailers SAIL, Sportium, Sports Experts, and Atmosphere. Last week, SAIL filed for bankruptcy protection and on Thursday, it announced that the Sportium chain in Quebec would shutter entirely while two SAIL stores in Ontario would close as well.

More multi brand retailers would struggle if Canada Goose pulled out. Toronto-based retailer Sporting Life sells tens of millions of dollars worth of Canada Goose product annually and the retailer’s future could be in jeopardy if Canada Goose were to pull out of Sporting Life stores. Retailers such as Harry Rosen have built dedicated Canada Goose retail spaces to maintain a partnership with the brand, and the nearly completed Holt Renfrew Ogilvy store in Montreal will soon include a dedicated Canada Goose women’s boutique on its third level luxury fashion hall.

CANADA GOOSE DISPLAY IN HARRY ROSEN STORE. PHOTO: HARRY ROSEN

Canada Goose was available for years in multi-brand retailers before opening its own stores. In October of 2016, Canada Goose opened its first store in the world at Toronto’s Yorkdale Shopping Centre. That was followed soon after by a store in New York City’s Soho area. Canada Goose has since opened stores around the world.

In Canada, Canada Goose operates standalone units in Vancouver (CF Pacific Centre), Calgary (CF Chinook Centre), Banff (Cascade Plaza), Edmonton (West Edmonton Mall), Montreal (1020 Ste-Catherine Street West), and most recently at CF Sherway Gardens in Toronto. The CF Sherway Gardens Canada Goose store features an ‘experience’ where consumers can learn about the brand and order product that is shipped to their homes (mall stores in Ontario have not reopened due to COVID-19 at press time). The Montreal, Edmonton and CF Sherway Gardens stores feature ‘cold rooms’ where shoppers can try on jackets in sub-zero temperatures.

Canada Goose also operates international standalone stores in New York City, Boston, Chicago, Short Hills NJ, Minneapolis, London, Paris, Milan, Tokyo, Hong Kong, Beijing, Shenyang, and Shanghai.

This year, Canada Goose will open a downtown Toronto store and plans were in place to expand the Yorkdale store. In downtown Toronto, Canada Goose will open a nearly 5,000-square-foot store on the third level of CF Toronto Eaton Centre where an Apple store was located — Apple moved downstairs into a much larger space late last year. At Toronto’s Yorkdale Shopping Centre, building applications indicate that Canada Goose will expand its 4,500-square-foot storefront by annexing an adjacent space occupied by foodservice business Nadege. The expanded Yorkdale Canada Goose store, which would include a ‘cold room’ as well as other experiential elements, will span more than 6,500 square feet with a prominent facade facing in three directions next to the mall’s Nordstrom store.

CANADA GOOSE LOCATION SET TO TAKEOVER THE PREVIOUS APPLE STORE IN CF TORONTO EATON CENTRE. PHOTO: SHONTRON, URBAN TORONTO

In an earnings call last week, Canada Goose CFO Jonathan Sinclair told analysts that the company will increase its focus on its direct-to-consumer business, particularly in the early stages of reopening after COVID-19 closures. “This allows us to control the consumer experience directly while earning double the revenue and triple the profit on a unit-for-unit basis,” Mr. Sinclair said.

Strategic wholesale partnerships with multi-brand retailers is still part of Canada Goose’s strategy moving forward, according to CEO Dani Reiss. And while wholesale will be smaller going forward, the “business model remains intact,” he said. “Many (wholesale retailers) are expecting us to be one of the brands that help lead them through the recovery,” Mr. Reiss said in the call last week.

The direct-to-consumer trend has taken hold globally over the past several years as brands open their own stores while also expanding online sales. What has resulted is a situation where multi brand retailers that introduced brands to some markets have been shut out. The trend has unfortunately resulted in the demise of some retailers. One example is Toronto-based Davids Footwear — last year, luxury brand Valentino informed Davids that it would pull the brand from the store after opening a standalone Valentino boutique at Toronto's Yorkdale Shopping Centre, and the Valentino exit was partly to blame for Davids’ bankruptcy filing and eventual chain closure. If Canada Goose pulls out of some multi brand retailers, that too could spell the end for some retailers especially after prolonged COVID-19 store closures.

COVID-19 has hit the bottom line of many brands, and it remains to be seen if some continue to open direct-to-consumer storefronts. Rents are among the biggest expense for retailers, and some brands may slow plans to open corporate stores until finances improve. At the same time, an acceleration of the shift towards online sales could see more brands continue targeting consumers directly both online as well as with standalone units acting as brand showrooms, which could mean less distribution in multi-brand retailers in years to come.

Ivanhoé Cambridge Partners with Lightspeed to Provide Omnichannel Solutions to Small and Medium-Sized Mall Tenants

SOUTHGATE CENTRE IN EDMONTON. PHOTO: IVANHOÉ CAMBRIDGE

Canadian shopping centre landlord Ivanhoé Cambridge is helping small and medium-size retailers, as well as restaurants, across its portfolio by offering one-year free access to the Lightspeed Retail or Lightspeed Restaurant fully-integrated cloud-based programs.

Ivanhoé Cambridge has 25 shopping centres in Canada over six provinces with a total of 30 million square feet of retail space.

A spokesperson for the shopping centre landlord said the initiative could benefit several hundred businesses across the company’s portfolio.

“The idea here is that a lot of the smaller retailers, tenants, restaurants in these times are struggling and they’re an important part of the fabric of our economy but also of our shopping centres. So what we want to do basically at this point in time is help them have an opportunity to sell, help them have an opportunity to extend their market now in this emergency situation but into the future as the retail and the ecosystem evolve”.

PHOTO: LIGHTSPEED

“So in very practical terms what we’re offering them is the ability to access for retailers a free one-year subscription to the Lightspeed Retail Point of Sale systems that also comes with the e-commerce system therefore allowing them to not only manage their brick and mortar store efficiency but to propel the inventory and to propel the sales online.

“That’s essentially the core offer. When it comes to restaurants, we’re obviously offering the equivalent, if you will, which is the Lightspeed Restaurant with the delivery module which means that it allows our restaurants to not only have access to the point of sale system but also to once again make it available for delivery, for pick up, working with third-party partners. So they have all the technology that allows them to extend their reach and their business into new markets and a newer customer base.”

Tenants will also have access to modules such as Lightspeed eCommerce and Lightspeed Delivery built within the retail and restaurant platforms, respectively.

POPPY BARLEY STORE AT SOUTHGATE CENTRE IN EDMONTON. PHOTO: POPPY BARLEY

“Our goal is to ensure the small and medium-sized businesses in our cities – who are integral to the local economies – have access to the tools they need to be successful through these significant changes in consumer behaviour and as regulations for a staggered re-opening of retail centres and store fronts begin,” said JP Chauvet, President, Lightspeed POS Inc., in a statement. “An omnichannel sales platform will support their needs in the short-term, while also fuelling the big picture as we look ahead to a post-COVID environment.”

What the Partnership Means for Retailers who Adopt Lightspeed Retail:

  • An omnichannel point of sale (POS) solution that includes Lightspeed eCommerce and opens inventory to an increasingly digitally savvy consumer base;

  • Must-have tools to engage customers, including comprehensive loyalty programs, synchronized inventory management, and built-in reports with real-time sales data; and

  • Integration of local and national parcel delivery, via eCommerce

What the Partnership Means for Restaurants who Adopt Lightspeed Restaurant:

  • Lightspeed Delivery integration options to Uber Eats, and other local food delivery services;

  • Reach more customers by maximizing delivery zones, customizing a takeout menu, connecting to social media, and using data to understand ordering patterns; and

  • Options such as self-order kiosks or tableside service with an iPad POS system for in-restaurant experiences when doors reopen.

“During these unprecedented times, it’s important to support our tenants. We understand that consumer expectations and shopping habits are evolving,” said Nathalie Palladitcheff, President and Chief Executive Officer at Ivanhoé Cambridge, in a statement. “This is an opportunity, and we are proud to partner with Lightspeed to offer a safe, fluid and trusted omnichannel sales solution to our tenants wishing to serve the communities in which our shopping centres are located.”

Another Ivanhoé Cambridge representative said that the success of restaurants and retailers and for the shopping centre landlord are directly tied.

“If these guys are around and healthy, so are we,” they said.

“It’s a very difficult environment. This is why we think something like the deal with Lightspeed and other initiatives we have are all the more important because essentially what we’re doing here for our food court partners and restaurant partners, by giving them this POS for one year but also by introducing the delivery capability, is allowing them to use their kitchen as a production facility and really facilitate delivery. A lot of them still don’t have easy access to integrated delivery modules and therefore it’s complicated for them.

“Other things we’re looking at and actually deploying in food is facilitating pick up. We are going to be piloting very shortly at one of our properties with a cut the line service, a pick up service. We’re seeing pick up in restaurants and retail being developed across the board whether it’s curbside pick up, in-store pick up. For the restaurants we’re also going to be doing this.”