Advertisement
Advertisement
Home Blog Page 958

Sleep Country Canada Continues Rapid Expansion Amid Market Domination

Sleep Country Canada store in Calgary. Photo: Sleep Country Canada

When Christine Magee, Stephen Gunn, and Gordon Lownds launched Sleep Country 25 years ago with four retail stores in Vancouver, they were filling a void they felt existed in the market.

Fast-forward to today and the mattress retailer is a giant in the industry with more than 270 locations, an ecommerce site, and mattress-in-a-box brand, Endy, now part of its portfolio. Continued growth is on the company’s radar for the coming years.

“I was in the banking industry for 13 years and had the opportunity to meet Steve and Gord through that because they had an acquisition company and that acquisition company did the management buyout of one of the manufacturers. Prior to starting Sleep Country, we had a very good view of manufacturing within the context of this retail category of mattress and box and we also understood what was happening in the retail landscape in Canada,” said Magee, who remains with the company as its chair of the board.

PHOTO: GH+A DESIGN STUDIOS (CF CHINOOK CENTRE, CALGARY)
PHOTO: SLEEP COUNTRY CANADA

“Because of that, both the industry itself having some interesting fundamentals that were appealing from a retail perspective and because we thought the retail landscape was not servicing this category as well as we thought it could – highly competitive by the way – but there were opportunities to provide better quality of experience in-store and home delivery that we said this is the perfect we thought opportunity to develop a business plan that was really going to address needs before, during and after. And if we did it properly, we really thought we had an opportunity to make this company successful and pursue our national footprint of a company to address the marketplaces and expand our concept of retail in our category.”

The company has 275 stores – 214 under the Sleep Country banner and 61 under the Dormez-Vous banner specifically in Quebec. Those 275 stores are serviced by 16 distribution centres that are located across the country so the company can “receive our product in an economical way but more so that we can provide a distribution or a delivery service to our customer which has been a very important part of our strategy when it came to being successful in servicing the customer and developing the ease of getting it to their home and setting up their product, taking away those packing materials as well as offering to take away their old mattress so we could donate it and repurpose it in the community or recycle,” said Magee.

She said the company’s bricks and mortar strategy continues to be a very viable way for it to grow and service the marketplace. In the past the company has indicated to its stakeholders that it will continue to grow its store count from eight to 12 stores every year. In the past year, the company has already opened 11 new stores. It also renovated eight stores in its last quarter.

“We do have a mall store concept that we’re excited about. We started I think in Calgary a few years ago. It’s been doing very well. We have increased our mall store premises and so that opportunity for us to open stores close and in an easy traffic area is certainly one we have and are continuing to utilize,” added Magee.

The company’s well-known trademark is ‘why buy a mattress anywhere else?’ and today it loves to use the slogan ‘all for sleep’. That means it continues to focus on its vast selection of mattress and boxspring lines. But today it is also increasing its merchandising and putting an equal emphasis on ancillary products that are important to people such as pillows and bedding.

“All part of the ancillary products – one, that are specifically important to the quality of sleep and two, that would also just add the convenience factor that when you buy a mattress or pillow, we should also be offering we think really amazing value and quality. Just to broaden what our service offering is to our customer and to ensure that we are offering them more each time that they come in,” said Magee.

Last fall, Sleep Country announced it had acquired Toronto-based mattress-in-a-box brand Endy for $88.7 million.

Magee said the company has been very happy with the acquisition of Endy. In 2017, Sleep Country launched its ecommerce site, including its bed-in-a box product. She said the Endy acquisition and Sleep Country’s ecommerce strategy layers into the opportunity to service the customer who prefers to purchase online for the convenience.

“We view it as a great opportunity and continued ability for us to expand our ability to service our customer,” she said.

UNIQLO Announces 1st Montreal Flagship Amid National Store Expansion

PHOTO 43093357 © BIGAPPLESTOCK - DREAMSTIME.COM

Popular Japanese fashion retailer Uniqlo will enter the Quebec market in late 2020 when it opens a flagship store at the Montreal Eaton Centre on Ste-Catherine Street West in downtown Montreal. The store is expected to be the first of several in the province as Uniqlo expands outside of its initial entry markets of Toronto and Vancouver. Uniqlo has said that it could eventually open as many as 100 stores across Canada. 

The Montreal Uniqlo flagship will occupy the northwest corner of Ste-Catherine Street West and Boulevard Robert-Bourassa in the soon-to-be-completed overhauled Montreal Eaton Centre. The multi-level Uniqlo space will carry the brand’s range of fashions for men, women, and kids, as well as an assortment of Uniqlo’s popular limited-edition brand-collaboration t-shirts. 

Uniqlo ‘ultra light down puffer jackets’ are wildly popular worldwide, as is the brand’s cashmere offerings and the ‘HEATTECH’ line which features a technological innovation involving inner wear that generates heat from one’s own body temperature (Uniqlo refers to its fashions as ‘LifeWear’). Uniqlo also regularly releases limited-edition t-shirts which often sellout quickly.

MONTREAL EATON CENTRE. RENDERING: IVANHOÉ CAMBRIDGE
THE MONTREAL UNIQLO FLAGSHIP WILL OCCUPY SPACE AT THE NORTHWEST CORNER OF STE-CATHERINE STREET WEST AND BOULEVARD ROBERT-BOURASSA CORNER OF THE SOON-TO-BE-COMPLETED OVERHAULED MONTREAL EATON CENTRE. IMAGE: GOOGLE STREET VIEW

Landlord Ivanhoe Cambridge is merging the adjacent Complexe Les Ailes and Montreal Eaton Centre into one large downtown centre that will also be anchored by French sport retail behemoth Decathlon, as well as a Time Out market food hall that will open next month. 

Claude Sirois, President of Ivanhoé Cambridge Retail, said in a statement, “The upcoming openings of Time Out Market Montréal, Decathlon and Uniqlo are a testament to the major transformation that the Centre Eaton de Montréal is undergoing as a result of our $200 million investment. The centre’s shopping experience will be completely reinvented and will contribute to the renewal of downtown Montreal.’’

Uniqlo is expected to be a success in the Montreal market. Many of Uniqlo’s designs are basic and at a reasonable price-point, including a range of tailored styles that are expected to resonate with local consumers. At the same time, Uniqlo will compete with the likes of Zara and other value-priced fashion retailers, as well as homegrown brands seeking to maintain market share. 

The Montreal area is Uniqlo’s fourth major market to see Canadian stores. Uniqlo opened its first Alberta storefront on September 27 at West Edmonton Mall

When Uniqlo entered the Canadian market, it initially focused on the Toronto and Vancouver regions to create brand awareness with a clustering of stores. 

Uniqlo currently operates 13 stores in Canada. Seven (and soon eight) of those in the Greater Toronto Area and four are in the Vancouver suburbs.

Uniqlo entered the Canadian market with two stores in Toronto in the fall of 2016. In September of 2016, Uniqlo opened its first Canadian flagship, spanning 33,400 square feet, at CF Toronto Eaton Centre. The store has since added another 4,500 square feet to house a first-to-Canada ‘UT’ t-shirt space. A 30,000+ square foot Yorkdale Shopping Centre Uniqlo store subsequently opened in October of 2016, in the mall’s Nordstrom-anchored expansion wing.  

Uniqlo’s first store in the BC Lower Mainland opened in October of 2017 at Metropolis at Metrotown in Burnaby, in a 20,630 two-level space. That was followed by the opening of a 17,900 square foot location at Guildford Town Centre in Surrey in March of 2018, and then with an 11,570 square foot store at CF Richmond Centre in suburban Vancouver. Uniqlo also operates a store at Coquitlam Centre which opened in September of 2018.

March of this year, Uniqlo opened a 12,000 square foot store at Oshawa Centre east of Toronto, which was followed by the April opening of a 15,000 square foot location at Upper Canada Mall in Newmarket, north of Toronto.

PHOTO: MAXIME FRECHETTE (CONSTRUCTION SITE AT MONTREAL EATON CENTRE)

On Wednesday of this week, Uniqlo will open a unique location in Toronto’s Financial District. The 8,157 square foot storefront will operate until December of 2020 and will see a monthly rotation of Uniqlo’s ‘LifeWear’ line. 

Uniqlo has been advertising employment positions in Montreal for the past several months, which gave rise to speculation that the store would be opening in the city. Job postings indicated a new store was on the way, and sources in the know said that they were aware of a flagship deal that had recently been completed as of the summer.

Uniqlo is ramping up its recruitment efforts ahead of the late 2020 store opening. Those interested in working for Uniqlo in Montreal can learn more here.

Jeff Berkowitz of Aurora Realty Consultants represents Uniqlo as broker in Canada, and has negotiated all Canadian store locations on behalf of the retailer, including the new downtown Montreal flagship. 

PHOTO: UNIQLO

In September of 2016, Uniqlo Founder and CEO Tadashi Yanai told Marina Strauss of the Globe & Mail that Uniqlo could eventually operate as many as 100 stores in Canada. 

Given the recent announcement that Forever 21 will be shuttering all of its Canadian stores, Uniqlo has an opportunity to occupy multiple units. Both retailers operate stores of a similar size, and Mr. Berkowitz has been a broker for both retailers.

Uniqlo is expected to open more stores in the metropolitan Montreal area as well as larger markets such as Quebec City at some point. Uniqlo’s choice of real estate thus far has been in busy shopping centres. Using that as a reference point, one might expect to see Uniqlo eventually announce stores at centres such as CF Carrefour Laval, Quartier DIX30, CF Fairview Pte-Claire and eventually at the new Royalmount mega project that will include about 1.4 million square feet of retail space at the centre of the island of Montreal. In Quebec City, Uniqlo would be likely to target shopping centres such as Galeries de la Capitale and Place Ste-Foy, though nothing is confirmed at this time.  

PHOTO: UNIQLO

*Thank you Maxime Frechette for connecting Retail Insider with Uniqlo and Ivanhoé Cambridge for this story.

Canada’s 1st 5D Restaurant to Offer Incredible Experiences in Vancouver

RENDERING OF THE NEW VANCOUVER RESTAURANT AT THE SOUTHEAST CORNER OF CAMBIE STREET AND W. 12TH AVENUE: QUANJUDE RESTAURANT

A massive investment will see Canada’s first ‘5D restaurant open on November 25th on Vancouver’s prestigious West Side. The highly experiential space will be unlike anything in the country to date (see videos below), offering an immersive and customizable experience that is expected to see millions of dollars in annual revenue.

Renowned within China and throughout the world, the publicly traded QuanJuDe Restaurant has over 150 years of impressive dining history and the numerous awards to attest to its level of culinary prowess.*

Company shareholders Doris and Andy Zhang are trusting in the reputation of QuanJuDe to invest $12 million into a build-out of the award-winning establishment at the southeast corner of Cambie Street and West 12th Avenue in the commercial podium of The Spot condominium building.

The add-on, and what makes the new QuanJuDe unique, is that it will be the first 5D restaurant in Canada. While there is a franchise in Toronto operating as QJD, it does not offer an accentuated experience like the Vancouver location will. 

A 5D restaurant is similar to Vancouver’s other multi-dimensional experience, FlyOver Canada, in that individualized dining areas will be wholly experiential and immersive. Guests will choose their environment and with the use of technology will be completely immersed in the chosen narrative, such as the hustle and bustle of Shanghai or the underwater world of a coral reef. There will be a soundscape, either music or ambient, visual projections on the walls and tables, interactive ingredients, with the food and taste rounding out the five dimensions.

The visual projections in the room will be accompanied by a table-top experience, similar to those seen in the Le Petit Chef youtube videos in this article. The presentation of the animations is spaced out between courses to add to the dining experience itself and creates a timeline for the meal, from appetizer to dessert.

A Hiring Fair has been organized to solicit interest and applications for staffing. To be held over three days (October 18-20th), the group is holding the fair at the Park Inn & Suites by Radisson Hotel. Offered is an attractive package for an expensive city with trouble holding onto hospitality workers due to high-cost of living and lack of affordable housing for those in the service industry.

Proposed benefits package includes full medical and dental, extended family care, corporate gym membership, and monthly restaurant gift certificate for those with families with children under six years old and parents over 65 years. No figures available yet as to how many full- and part-time employees will be sought.

ENVIRONMENTAL STEWARDSHIP AND PUBLIC WELFARE

Reportedly, when QuanJuDe enters a community, it looks to give back to it in a meaningful fashion. In China, QuanJuDe is a leader in public welfare, using its success to give back by investing in causes such as international healthcare, poverty eradication, and social security. All restaurants in the U.S. donate 3%-5% of their sales to charitable organizations and the company works with landlords to have locations developed with sustainable energy and environmentally friendly designs in mind. 

BACKGROUND OF QUANJUDE

In China, QuanJuDe has hosted countless numbers of dignitaries and government officials, as it often is the chosen location of state banquets. Historical figures such as United Nations Secretary-General Antonio Guterres, President of the International Olympic Committee Juan Antonio Samaranch, and U.S. Secretary of State Henry Kissinger have dined at their locations. At a recent APEC meeting, QuanJuDe was tasked with serving 73,000 people.

PHOTOS: QUANJUDE RESTAURANT

As interest in climate change is high in a city as environmentally conscious as Vancouver, we are curious to see if diners with vegan preferences and dietary restrictions, seeking the 5D experience, will be accommodated. The company’s ‘claim to fame’ is the annual serving of 7-million roast ducks, from prix fixe menus, throughout their 120+ international restaurants. 

If the concept takes off in Vancouver, markets such as Toronto and Montreal could be in line for 5D restaurant experiences in years to come.

* China Renowned Trademark, the only restaurant in the service industry to receive such a prestigious title; Gold medal from The World Championship of Chinese Cuisine, hosted by the World Federation of Chinese Catering Industry. 

108: Harry Rosen, Dyson and Uniqlo Montreal

This week Craig and Lee talk about Harry Rosen/Canada Goose, Dyson and Uniqlo Montreal.

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.

 

Sponsored by Peregrine/Acorn: We are a team of creative engineers and skilled fabricators collaborating to design and manufacture highly effective retail environments. In 2017, they acquired “Acorn Wood Designs” – an award-winning architectural millwork company by focusing on quality craftsmanship and relationships. Visit Peregrine at https://www.peregrine.build to see their portfolio!

 

Discussed this episode

Other topics:

  • Barneys nears bankruptcy deal that could see Hudson’s Bay Company taking on its brand with Saks shops

Subscribe, Rate, and Review our Retail Insider Podcast!

Follow Craig:

Follow Retail Insider:

Listen & Subscribe:

Share your thoughts!

Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

Listen on Google Play Music

Share your thoughts!

Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

Harry Rosen Launches 1st-of-its-Kind Canada Goose Shop-in-Store [Photos]

exc-5da3f398e7deee2135f37371

Toronto-based luxury menswear retailer Harry Rosen has launched a first for North America Canada Goose concept shop at the retailer’s Bloor Street flagship. The partner shop is part of an effort by Harry Rosen to maintain the presence of the highly lucrative Canada Goose brand in its stores at a time when Canada Goose is opening direct-to-consumer stores while at the same time pulling out of some multi-brand retailers. 

Located on the lower level of the Harry Rosen flagship store at 82 Bloor Street West, the new Canada Goose shop is the first in a multi-brand retailer in North America to feature Canada Goose’s signature marble bunker table, which is situated prominently at the centre of the new space. A marble wall accent in the new Canada Goose shop is another branding effort that creates something of a ‘hard shop’ for the Canada Goose brand. 

As well, the Harry Rosen Canada Goose shop-in-store features a full ‘story telling’ artwork package, which includes framed Aboriginal paintings as well as sculptures and Canada Goose heritage books. It’s the first time that a multi-brand retailer anywhere has featured such elements as part of a Canada Goose shop-in-store presence. 

A range of men’s outerwear is carried in the new Canada Goose shop, including outerwear parkas as well as knitwear, winter accessories and other apparel and accessory items from the brand. 

The Canada Goose shop is located next to an Atelier Munro tailoring shop that opened in July. A large Hugo Boss shop and other brands are carried on the same floor. Upstairs, some of the world’s leading luxury brands have a presence at Harry Rosen’s Bloor Street flagship, including a collection of shop-in-stores on the second floor for brands including Tom Ford, Zegna, Giorgio Armani, Loro Piana, Brunello Cucinelli, and Moncler. The Bloor Street Harry Rosen flagship is the largest in the chain, spanning about 55,000 square feet over five levels. 

Canada Goose and Harry Rosen have had a long-standing partnership that has included exclusive launches. In August of 2016, Harry Rosen launched a Jose Bautista branded Canada Goose jacket that sold out very quickly, and the retailer hosted a party on a terrace at the top of the Bloor Street flagship as part of the launch. Harry Rosen has partnered with Canada Goose on various other product launches and the result has been millions of dollars of sales.

Harry Rosen’s elevated Canada Goose shop-in-store is no doubt an effort to keep the brand in Harry Rosen stores, which currently do not operate on a concession model. A short distance away at the Manulife Centre, the recently relocated Over the Rainbow store also features a Canada Goose shop-in-store, carrying a range of men’s and women’s Canada Goose outerwear and apparel. Over the Rainbow was one of the first retailers to carry the Canada Goose line when it launched the brand almost 16 years ago in Over the Rainbow’s former Yorkville Avenue storefront. 

Canada Goose has been opening direct-to-consumer stores worldwide while at the same time dropping some wholesale accounts. The first Canada Goose store in the world opened at Toronto’s Yorkdale Shopping Centre in October of 2016, and the brand has since opened corporate stores in markets including New York City, London, Chicago, Tokyo, Hong Kong, Beijing, Shenyang, Milan, Short Hills (New Jersey), Boston, Minneapolis and Milan. In Canada, Canada Goose operates standalone stores in Toronto as well as in Montreal, Vancouver, Calgary, and Edmonton. Soon to open Canadian locations include CF Sherway Gardens in Toronto as well as in Banff Alberta, and a flagship in Paris will become the first for Canada Goose in France. Sources say that Canada Goose will open its first downtown Toronto location at CF Toronto Eaton Centre next year. 

Some multi-brand retailers are said to be concerned that Canada Goose could drop wholesale accounts as the brand continues to open direct-to-consumer stores. Financial records show that Canada Goose’s corporate stores generate higher profits than its wholesale accounts. For some retailers, losing Canada Goose could result in a financial hit and in some cases could be catastrophic — last year a source at Canadian multi-brand retailer Sporting Life said that Canada Goose represented about a  quarter of the retailer’s overall sales. Some multi-brand retailers have also dropped the Canada Goose line — Holt Renfrew, for example, dropped the men’s collection due to its being ‘ubiquitous’, though Holts continues to carry the women’s Canada Goose line. 

Canada Goose also operates a robust e-commerce site which, again, is a direct-to-consumer model that could result in a decrease of sales of the brand in multi-brand retailers. The Canada Goose website alone does millions of dollars of sales annually from a global market seeking authentic product amid expansive counterfeiting efforts.

Multi-brand retailers globally have struggled as brands carried in stores open direct-to-consumer corporate stores. The trend is particularly pronounced in major European cities, where numerous luxury multi-brand stores have closed due to poor sales. While online sales and competition is said to have been part of the reason, the opening of mono-brand corporate stores for brands has resulted in the brands themselves becoming the biggest competitors to multi-brand retailers housing them. In some cases luxury brands have maintained a presence in the multi-brand retailers while opening standalone stores nearby, and some brands have chosen to pull out of multi-brand retailers altogether in order to control store design, staffing and product selection — not to mention reaping higher profits amid higher profit margins. 

It remains to be seen what Canada Goose will do with its wholesale accounts at multi-brand retailers as the brand continues to open its own direct-to-consumer corporate stores. Investments made by retailers like Harry Rosen appear to indicate that Canada Goose will continue to utilize existing wholesale channels, provided sales are strong enough to justify them. Some weaker multi-brand retailers could lose Canada Goose as a brand carried in store, and in some instances losing Canada Goose could lead to the demise of some retailers currently carrying the line. 

Dyson to Open 2nd Standalone Canadian Storefront in Vancouver

Image: Dyson

UK-based household and technology ‘reinvention’ brand Dyson will open its second standalone Canadian location in Vancouver this year. It follows Dyson’s first Canadian showroom that opened in Toronto in late 2017.  

The ‘Dyson Demo’ store will showcase various Dyson innovation products, including supersonic hairdryers, air purifiers, commercial hand dryers and various vacuum models. Dyson also sells LED lights which were created by by Sir James Dyson’s son, Jake. The highly experiential retail space will showcase Dyson’s latest technology courtesy of a trained team of employees, while also providing visitors the opportunity to purchase various Dyson products. 

Construction hoarding recently went up for a Dyson showroom at the CF Pacific Centre in Vancouver. The retail space, formerly occupied by J. Crew, will span about 2,500 square feet on one level according to lease plans, and will be located between an Ann-Louise jewellery store and eyewear retailer BonLook on the lower retail level of the shopping centre. 

CF Pacific Centre Map highlighting Dyson location
Image: Dyson at Yorkdale Shopping Centre

Dyson was said to have been looking for space in Vancouver ever since the opening of its first Canadian storefront, which opened in December of 2017 at Toronto’s Yorkdale Shopping Centre. Sources say that Dyson had initially been looking to locate in a street-front retail space in Vancouver and ended up negotiating a deal with landlord Cadillac Fairview for the upcoming CF Pacific Centre location. 

CF Pacific Centre is now Canada’s second-most productive shopping centre. According to an upcoming Retail Council of Canada Shopping Centre Study, CF pacific Centre saw sales per square foot of a whopping $1,865 for the 12 months ending June 30, 2019. The downtown Vancouver shopping centre recently added new retail locations for brands such as Canada Goose, Sandro and Maje, and new storefronts for footwear brands Geox and SoftMoc will be opening in the centre this fall. The south end of the shopping complex features the highest-selling Nordstrom store in the entire chain, and Holt Renfrew’s top-selling unit anchors the north end of CF Pacific Centre.

Toronto’s Yorkdale Shopping Centre is currently Canada’s most productive shopping centre in terms of annual sales per square foot, and the mall is also the launching pad for more first-to-Canada retailers than anywhere in the country. The Dyson Demo store at Yorkdale, which we toured on December 18 2017, measures just over 2,000 square feet according to lease plans provided by landlord Oxford Properties. 

DYSON CONSTRUCTION HOARDING AT CF PACIFIC CENTRE. PHOTO: LEE RIVETT

Dyson’s first store in the world opened in Tokyo in the spring of 2015, followed by locations in Paris, Moscow, Jakarta and London. More have since opened in major centres globally. The United States is currently home to three Dyson Demo retail spaces in New York City, San Francisco, and in suburban Washington DC.

It remains to be seen if Dyson will open any more ‘Dyson Demo’ stores in Canada. Major markets could be in line and West Edmonton Mall was said to be a target, according to sources. Given Dyson’s removing itself from broker consultations in Vancouver, however, parties involved in any future discussions may want to be cautious in any dealings with the company.

Dyson’s wholesale distribution in Canada is extensive. Many major retailers across the country carry Dyson products, with big names including Canadian Tire, Best Buy, Hudson’s Bay, Bed Bath & Beyond, Walmart, Costco, Leon’s, The Brick, Lowe’s, and various others chains. Dyson recently lost a multi-store distribution network with the closure of Hudson’s Bay-owned home furnishings retail chain Home Outfitters. 

While many multi-brand retailers in Canada are expressing concern as brands begin to open direct-to-consumer stores, the opening of Dyson’s ‘Demo’ showrooms is not expected to have a major impact on Canadian retailers. Hundreds of retailers in markets of all sizes carry various Dyson projects in their stores across Canada, and Dyson is unlikely to open enough Canadian showrooms to result in a significant hit to these retailers — nor is it likely that Dyson will begin to pull-out of multi-brand retailers, as is being seen in the luxury realm as some brands increasingly go direct-to-consumer.

107: WEM Toyota [Exclusive], Majesty’s Pleasure, Holt Ogilvy, SPINCO, Wuxly Movement

This week Craig, Lee and Jessica talk about RI’s exclusive announcement for WEM Toyota dealership, Majesty’s Pleasure, our RI Brief (including Holt Ogilvy, SPINCO, UNTUCKit), and Wuxly Movement.

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.

Sponsored by prisma construction: prisma construction is a leading retail construction specialist. we do development, rollouts management, project management plus, coordination and follow up. Retail Insider recently featured prisma in an article discussing the company’s expansion internationally, including its first project in China.

Discussed this episode

  1. (Holt Ogilvy, SPINCO, UNTUCKit)

Subscribe, Rate, and Review our Retail Insider Podcast!

Follow Craig:

Follow Retail Insider:

Listen & Subscribe:

Share your thoughts!

Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

Listen on Google Play Music

Share your thoughts!

Drop us a line at Craig@Retail-Insider.com. You can also rate us in Apple Podcasts or recommend us in Overcast to help more people discover the show!

West Edmonton Mall Announces Massive Automotive Experience Initiative with Valet Parking [Exclusive]

PHOTO: EXPLORE EDMONTON

West Edmonton Mall has announced a partnership with Mayfield Toyota that will transform part of a wing in the shopping centre.

Included will be a massive automotive experience centre unlike anything seen in Canada, along with car detailing and other services as well as valet parking for the mall for the first time. Spanning 317,000 square feet, the initiative is also said to be an endeavour to attract more big-brand retailers to North America’s largest shopping centre which has already secured Louis Vuitton and Tiffany & Co. with other tenants to be announced as leases are signed.

Construction on the project will begin in March 2020, with completion expected for the spring of 2021.

Mayfield Toyota, which is relocating to West Edmonton Mall from its current location about 1.6 km north of the shopping centre, will open a 117,000 square foot automotive centre on the main level of West Edmonton Mall’s Phase One. The Mayfield Toyota Dealership Experience will occupy space vacated last year by a Sears store as well as several adjacent retail spaces along with common-area space in front of the former mall-facing Sears entrance. We recently reported that The Brick had opened a flagship furniture store on the second level of the former Sears space, directly above what will become the Mayfield Toyota Dealership Experience.

RENDERING: SUPPLIED

The state-of-the-art interactive automotive space will house 65 servicing bays as well as expansive display areas for new Toyota models.

In addition, a new 200,000 square foot multi-level parking structure and service detail centre will be built on the northeast corner of the West Edmonton Mall site facing both 170 Street and 90 Avenue. The service centre will house a car detailing centre, and shoppers utilizing the new valet parking may choose to utilize the service. Included will be full detailing packages, express oil changes, complete mechanical services, over-the counter parts purchases, tire sales/swaps and storage, windshields and other services.

It will become yet another draw to West Edmonton Mall, which sees 30.8 million visitors annually, according to its website.

CLICK IMAGE FOR INTERACTIVE WEST EDMONTON MALL MAP

“Time is a limited commodity in today’s world and the scope of this build will allow our guests to accomplish so much more with just one convenient stop,” said David Friesen, General Manager and Managing Partner at Mayfield Toyota.

David Ghermezian, President of West Edmonton Mall Property Inc., said, “West Edmonton Mall is excited to partner with Mayfield Toyota in the development of a unique customer focused Dealer Experience at a scale which has never been seen in a shopping centre before.”

The new automotive centre and services including detailing and valet parking will no doubt help propel West Edmonton Mall’s image in the mind of shoppers as well as retailers looking to open in the centre.

Edmonton is home to affluent residents and is also expected to attract more monied tourists as the West Edmonton Mall adds new luxury retailers to the mix. Over the summer, Louis Vuitton opened a 4,500 square foot store in the mall’s up-and-coming second level ‘luxury run’, which already houses locations for brands including Tiffany & Co., Coach, Marc Cain and Rolex. Canada Goose also opened a store over the summer nearby and is often busy with shoppers who are also making big-ticket purchases. Landlord Triple Five confirms that it is in talks with other luxury brands with one big-name Italian brand having recently leased space near Louis Vuitton, and talks are ongoing to secure other luxury brands similar to what one might find at Toronto’s Yorkdale Shopping Centre.

PHOTO: LOUIS VUITTON WEST EDMONTON MALL

Canadian department store chain Holt Renfrew will be closing its downtown Edmonton store in January of 2020. West Edmonton Mall’s leasing team is said to be targeting brands currently within Holt Renfrew to open standalone units at West Edmonton Mall to continue to serve visitors to the centre.

The addition of luxury brands to West Edmonton Mall will create a draw for international tourists who are already looking at visiting immersive experiences such as those provided at West Edmonton Mall. More than 30% of visitors to the centre are out-of-town tourists, and the centre is targeting international visitors from countries such as China who are known to spend big dollars on big-name brands.

The Mayfield Toyota partnership is an extension of an existing one where Mayfield Toyota acquired the naming rights to West Edmonton Mall’s indoor ice rink in 2012, which is currently named the ‘Mayfield Toyota Ice Palace’. Mayfield Toyota has sold vehicles on the Ice Palace with tremendous success. “We’ve seen firsthand how our customers have embraced Mayfield Toyota at West Edmonton Mall through the last five years with many successful sale events at the Mayfield Toyota Ice Palace,” Mr. Ghermezian said. “This innovative partnership supports our customer’s lifestyles by providing a level of service and convenience that is unparalleled in the industry.We’re excited to be at the forefront of this groundbreaking automotive experience.”

INSIDE CANADA GOOSE AT WEST EDMONTON MALL. PHOTO: CANADA GOOSE

Mayfield Toyota has operated its large facility at 102 Avenue and 170 Street since 1998 and has become the largest volume Toyota dealer in Western Canada. A larger facility is required to sustain future growth, according to the retailer.

West Edmonton Mall has seen an increase in foot traffic with the addition of new retailers at a wide range of price points, and landlord Triple Five continues to target new brands and concepts to draw customers from the Edmonton market and beyond. The mall’s leasing team has been reaching out to international brands in an attempt to have them open in the centre, including some names currently not in the Canadian market. Already, the ‘main run’ in the shopping centre is said to see annual sales per square foot exceeding $1,200, and brands are taking notice.

Japanese retailer Uniqlo recently opened at West Edmonton Mall to long lineups, and the centre is in discussions with various brokers and retail concepts to open in the centre which includes an assortment of retailers as well as restaurants and bars, entertainment centres and other attractions.

RioCan Rebrands Toronto’s Lawrence Square Shopping Centre Amid Significant Renovation

PHOTO: RIOCAN

This month marks the 30th anniversary of the Lawrence Square Shopping Centre in Toronto. To mark the milestone, landlord RioCan has rebranded the centre which is seeing a major renovation that will be completed in the spring.

The centre is now officially called the Lawrence Allen Centre, which is fitting given its location at the northwest corner of Lawrence Avenue West and the Allen Expressway.

The reimagined shopping centre is adding dynamic new retail tenants, a modernized interior, and upgraded amenities. All are focused on ensuring that the Lawrence Allen Centre acts as a pillar within the rapidly changing Lawrence Heights neighbourhood. The renovated interior features clean lines, natural light, and an uncluttered and inviting space, intentionally creating an ideal environment for the community to shop, eat, and gather.

PHOTO: GOOGLE MAPS

John Ballantyne, senior vice president Asset Management RioCan, says that the aim of the project is to re-establish a community within the Lawrence Allen Centre.

“We wanted to ensure that the Lawrence Allen Centre was comfortable in terms of clean, accessible bathrooms, a welcoming and well-equipped food court, and an open, friendly atmosphere throughout.”

Updates to come will include more efficient parking services as well as a new glass atrium and updated roof infrastructure.

The location is said to be strategic. “It’s right beside a busy subway stop, Lawrence West station, and in the midst of a very residential community. Both create the need for a community hub. This is our main focus,” Mr. Ballantyne went on to explain.

PHOTOS: RIOCAN

Within the coming months, RioCan promises further enhancements within the Centre, with a continued focus on curating its retail mix and evolving its services to fit the growing community. “Riocan recognizes the importance of investing in our assets and communities in which we operate. Lawerence Allen Centre will serve as the hub in this important and rapidly redeveloping Toronto neighbourhood and we look forward to being part of the continued growth and prosperity here,” said Jonathan Gitlin, President and COO of Riocan. “We focused on enhancing the existing spirit of the neighbourhood, ensuring the design, service, and retail mix suit the immediate and long-term needs of the community.”

Located at 700 Lawrence Avenue West, the Lawrence Allen Centre is mere steps from Lawrence West subway station and just west of the Allen Road. It is situated within one of the most significant redevelopment projects in Toronto’s history, Lawrence Heights, which is Toronto Community Housing’s largest revitalization ever undertaken.

Over the years, Lawrence Square serviced the surrounding community with more than 80 stores, covering 657,821 square feet of both retail and office space (304,000 square feet of office space and 373,000 square feet of retail space).

Larger retailers such as Canadian Tire, Fortinos, Marshalls, HomeSense, and PetSmart have called the Centre home for some time now, with contemporary furniture store Structube being one of the most recent retail tenants to move in. Zellers was once an anchor store for the centre. However in 2013, its departure provided the opportunity for Marshalls, PetSmart, and HomeSense to move into the space. A full-service BMO will join the centre in 2020 as well.

Built in 1989, the urban mixed-use property has long been a place for the community to gather. Planning for the redevelopment of the centre began in 2017 with the hopes of enhancing the mall in many different facets. Large-scale interior and exterior refurbishments have been in the works ever since. The main goal of the renovation centred around reaffirming the Centre’s community focus with a rejuvenated and inclusive brand.

To date, the renovations have centred primarily around the food court and bathrooms. There is much more to come however, with a recladding of the building’s exterior facade underway and due for completion in Spring, 2020.

Last week, RioCan representatives were on hand and were joined by Toronto Ward 8 Councillor, Mike Colle, and MPP Robin Martin

As the Centre’s new name was officially unveiled to the public, Councillor Mike Colle spoke about the Centre’s importance within the surrounding community, which is currently undergoing a rebuild of its own following the mixed-income community redevelopment model. He congratulated all who have been involved in the project saying, “I say to all of you who had a part in this, Mazel Tov, and here’s to another 30 years.”

Canadian Retail and Technology: A Perfect Pair or Doomed to Fail?

PHOTO: GEORGE MINAKAKIS

By George Minakakis

Technology has had a long relationship with retailing in Canada as well as globally. It has traditionally been a tool to improve data collection and productivity. However, in the last decade it has both increased competition and become an internal transformational juggernaut to stay competitive.

All physical retail is being forced in some way to adapt to the changing technology preferences and shopping behaviours of consumers, while also combating e-commerce players who are picking away at their market share. Keeping up requires marathon skills, a great deal of financial resources, and capable talent. While some brick and mortar retailers are thriving and making money, many have been disabled by their lack of resources, the wrong strategic choices, or poor timing.

The launch of smartphones in 2007, compounded by the financial crash and followed by the Great Recession, created a pivotal moment in retail industry. Ever since, this industry has been going through a major transformation, and retailers are dropping like flies along the way.

Today’s newswires are calling for the closure of another 8,000 stores in the United States in 2019. Last week, Forever21, announced the closure of all of its 44 locations in Canada. Interestingly enough, store closures in North America are higher than stores openings. When foreign retailers close their doors in Canada, it’s quite often a result of what is happening in the US. However, as businesses are also being acquired (Toys R Us Canada by Fairfax and PartyCity by Canadian Tire), investment and consolidation is something we will likely see more of. All of these acquisitions are in need of fresh perspective and sound financial backing.    

If many of these retailers were early adopters of e-commerce and technology could they have been saved or in a better market position?

PHOTO: YOUTUBE

Consumers are driving technological change

Most retailers have invested in the typical nuances of technology, such as an online platform, chatbots, and mobile payments. Some are investing in AI, Robotics, and the list goes on to augmented and virtual reality being other potential technology driven solutions to sustain customers and drive sales growth. The next evolution will be how IOT impacts the future of appliances and other everyday products. The expectations that will be set by consumers around connectivity will be a much higher when it comes to reliability, performance, warranties, and service. This promises to further complicate retailing as we know it. It seems that retailing has become a digital experiment with no real understanding of how it will sustain a brand’s relevance in the marketplace with longevity.

For brick and mortar retailers, creating a high-tech element as part of the customer experience has become the norm. However, if the intent is to turn a store into no more than a Universal Studios Attraction, retailers run the risk of creating a single event experience with a limited run and no follow up shows. The cost of such a retail performance will be impossible for many retailers, and staying relevant will become even harder. Technology proposes a lot of hope, but these consumer-driven technological advances mean higher costs and a more complex customer experience that is not sustainable. Lack of foot traffic and the negative reviews are inevitable.

Technology can’t save outdated retail models

Not all technology initiatives are viable for every retailer. In 2017, Payless Shoes announced the “acceleration and expansion of its e-commerce business.” The retailer subsequently announced the closing of all of its North American stores after what management said was intense competition with the likes of Amazon and Walmart. Even Sears Canada, before it shuttered its doors in early 2018, had previously announced investments in stores and technology.

Technology can’t fix stodgy and outdated business and consumer models without radical change. Leaders must be faster at rolling out relevant innovation, redefining service behaviours, building entrepreneurial cultures, and recruiting talent with the skillset to continuously rethink and rebuild the brand.

Technology should never get in the way of customer relationships

No one was prepared for technology to transform consumer behaviours so profoundly. The coveted customer experience that everyone is pursuing today lacks depth, and most of the ideas are easy to copy and reproduce elsewhere. This is because technology alone doesn’t work when it is leading the vision. Instead it should be one aspect of the brand’s vision. The overall customer experience includes people in the equation to help build trust.  

Consumer trust is something that is established by a repetitive and reliable in-store or online behaviour. It isn’t just important for the consumer, it is also important to the organization to continuously adapt and grow. A reliable customer experience – with whatever level of integrated technology – will only be as good as the staff that work in the store and their ability to use that technology to enhance their knowledge.

It remains to be seen whether or not any retailer can really merge technology and their physical retail space into one continuous evolving experience, while still managing to alter that experience frequently enough to make a difference. If retailers wish to survive, they need to decide whether technology is their new retail platform or if it remains a competitive threat. Either way, this period of disruption is far from over. 

George Minakakis is the CEO of Inception Retail Group and author of The Great Transition: The Emergence of Unconventional Leadership. He is an expert at guiding retailers through competitive transitions, leading change management initiatives, and helping to build leadership teams to future-proof lasting success. As a retail realist, he takes a unique and unvarnished view of the retail space. With over three decades of experience in the retail industry, George has managed both luxury and mainstream lifestyle brands nationally and internationally. A retail sector leader, he continues to work within the retail sector as an advisor to Private Equity Firms, CEO partner, keynote speaker, and consultant for unique, privately held brands. Email: gminakakis@inceptionretailgroup.com