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Luxury Brand CELINE to Open 1st Standalone Canadian Flagship

PHOTO: ROUDAUT MORGAN

LVMH-owned luxury brand Celine will open its first standalone Canadian flagship store at Toronto’s Yorkdale Shopping Centre this spring. It’s part of a bigger expansion for Celine in Canada that includes several shop-in-store concessions as well as the possibility that other standalone stores could open in other Canadian cities.

Celine’s Yorkdale location will be across from Holt Renfrew’s recently expanded flagship at Yorkdale in an expansion wing of the mall that debuted in 2012. Celine will occupy two retail spaces that span a total of about 4,850 square feet, making it considerably larger than any of the brand’s shop-in-store concessions that are located in Canadian Holt Renfrew stores. Celine will be flanked by a recently opened Balenciaga flagship at one end and a Tiffany & Co. store on the other.

The Celine store will be made possible by merging two former storefronts at Yorkdale that were once occupied by Ted Baker and Longchamp. The former Ted Baker space measured 3,227 square feet — Ted Baker recently relocated up the hall to a new 4,320-square-foot space that was formerly occupied by the The North Face. Longchamp also just relocated from its former 1,618-square-foot space to a new 1,940 square foot storefront at Yorkdale next to a recently opened Furla store.

SOON-TO-BE CELINE STORE IN YORKDALE. PHOTO: CRAIG PATTERSON

Celine is known for its womenswear and in the fall of 2019, Celine also launched a menswear line for the first time. The Yorkdale flagship will carry Celine fashions for both men and women, including ready-to-wear as well as bags, accessories and footwear.

Celine’s most updated store design will be showcased at Yorkdale. That includes ample use of stone that includes rich veined slabs of marble, granite, and travertine that appears on walls, shelves, and blocky columns, and floors lined with Basaltina lava stone. Floor-to-ceiling mirrors and steel surfaces characterize new stores, as well as wood and leather furniture that brings warm accents to brown to the otherwise sleek black-and-white palette.

Celine also recently dropped the accent from its first “E”, and was formerly spelled ‘Céline’. Finding a photo of a store with the new branding proves challenging as many boutiques have simply removed the accent from storefronts in anticipation of renovations.

MAP OF YORKDALE, PINPOINTING THE NEW CELINE LOCATION.

In Canada, Celine has also expanded its direct-to-consumer operations through luxury retailer Holt Renfrew. Celine’s concessions at Holts are separated into categories in dedicated departments, with separate shops for leather goods and accessories, women’s ready-to-wear, and men’s ready-to-wear. At Holt Renfrew’s Vancouver flagship, Celine has three separate shops for women’s and men’s fashions as well leather goods and accessories. Holt Renfrew’s Vancouver store was the first in Canada to showcase the new men’s Celine fashion line.

In Calgary, a Celine leather goods and accessory shop is housed on the main floor of the city’s Holt Renfrew store. In Toronto, Holt Renfrew’s 50 Bloor Street West flagship houses a makeshift Celine shop for the brand’s women’s ready-to-wear, which is expected to see an updated space as part of Holts’ flagship renovation.

Holt Renfrew Ogilvy in Montreal, which will be completed in April of this year, is expected to house separate Celine shops for leather goods and accessories as well as a ready-to-wear boutique for women. When Holt Renfrew Ogilvy’s 25,000 square foot men’s floor was unveiled in the spring of 2019, a Celine men’s boutique was expected to open as was indicated on construction signage. According to Montreal correspondent Maxime Frechette, the Celine men’s boutique was halted and the space is now occupied by Valentino.

Nordstrom and Saks Fifth Avenue also house Celine shop-in-stores in their Canadian stores, though they operate under a licensed wholesale model. Nordstrom’s Vancouver flagship has a Celine accessory boutique on its street-level as well as a Celine shop-in-store for women’s ready-to-wear on its women’s floor.

Nordstrom’s Yorkdale store in Toronto also houses separate Celine shops for leather goods and accessories as well as a women’s ready-to-wear boutique, though sales staff over the weekend questioned the future of the Celine ready-to-wear boutique once the Yorkdale Celine flagship opens. Saks Fifth Avenue’s downtown Toronto flagship houses a Celine leather goods and accessory shop on Saks’ street level — a Celine women’s ready-to-wear boutique was formerly located on Saks’ third-level women’s designer floor, though the shop shuttered several months ago and was replaced with a Burberry boutique space.

Yorkdale’s Celine flagship likely won’t be its last standalone storefront in Canada. Toronto’s Bloor-Yorkville area, which is now seeing an influx of luxury brands opening flagship stores, could see Celine open another Toronto flagship location either on the up-and-coming Yorkville Avenue or possibly on the ‘Mink Mile’ stretch of Bloor Street West. We anticipate that Celine would locate on Yorkville Avenue, given the opportunity to build a brand new building on the street which since 2016 has seen the opening of flagships for brands including Chanel, Christian Louboutin, Off-White, Brunello Cucinelli and Stone Island, with more said to be on the way.

NEW CELINE CONCEPT DESIGN. PHOTOS: CELINE

In Vancouver, one might expect Celine to open a standalone store somewhere in the downtown Vancouver Alberni Street ‘Luxury Zone’, though space is limited and the brand may find it challenging to find a retail space. Celine could therefore look to the Oakridge Shopping Centre on Vancouver’s West Side, or possibly at ‘The Amazing Brentwood’ in Burnaby. Landlord QuadReal is redeveloping Oakridge to house a run of luxury boutiques with Tiffany & Co. having recently relocated there, and the anticipated brand offering would be appropriate for a Celine locations. At ‘The Amazing Brentwood’, the SHAPE/L Catterton partnership is also targeting luxury brands such as Celine, though it’s unclear at this time how many brands will choose to locate on a proposed main level luxury run. L Catterton is an investment arm of the LVMH Group, which owns the Celine brand.

In Montreal as well, the massive Royalmount project is said to be in the planning stages to open a luxury wing that would house multiple brands in a wing spanning as much as 70,000 square feet, not including an upscale anchor department store brand that is said to be in talks with developer Carbonleo. L Catterton also invested in the Royalmount project and as a result, it is expected to attract several LVMH-owned luxury stores to the centre as well as other luxury players not currently in the Montreal market.

Globally, Celine operates a network of standalone stores as well as concessions and wholesale accounts in various major markets. In the United States, Celine operates standalone stores in markets including New York City (two stores, Madison Avenue and Wooster Street in Soho), Beverly Hills (Rodeo Drive), Costa Mesa (South Coast Plaza), Miami (Miami Design District), Dallas (Highland Park), Houston (Houston Galleria), Las Vegas (two stores, Crystals and Wynn), in suburban Washington DC (Tyson’s Galleria), and at the Ala Moana Centre in Honolulu. According to Celine’s website, all of the US stores carry Celine’s women’s ready-to-wear and leather goods/accessories.

The new Celine men’s line is available at Celine’s standalone stores in the US in Beverly Hills, the Miami Design District, the two New York City stores, and at the Wynn location in Las Vegas. In the United States as well, Celine is carried in stores such as Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, Barneys and others. Only two multi-brand stores in the United States currently carry Celine’s men’s line, including Bergdorf Goodman Man in New York City as well as at the unique Hirschleifer’s store in Manhasset on New York’s Long Island.

As with many fashion brands, Celine has undergone a transformation at the helm of a new creative director. In January of 2018, Celine announced that Hedi Slimane would become the brand’s new designer, after Slimane led French luxury brand Saint Laurent from 2012 to 2016. Prior to that, he was the menswear designer for French luxury brand Christian Dior. Under Slimane’s direction with Celine, some were critical that his vision for the brand’s clothing was similar in style to those he designed for Saint Laurent, though Celine now appears to have been embraced by many and is said to be seeing success globally.

LVMH has owned Celine since 1996. The Celine brand was founded by Céline Vipiana in 1945, and was considered to be one of the first luxury brands in the industry. The company got stared as a made-to-measure children’s shoe business, and when the brand’s first store opened in Paris, its logo was a red elephant. In 1960, Celine repositioned itself as a women’s ready-to-wear fashion brand, with conservative styles with a ‘designer sportswear’ approach. Celine expanded to also be known for its leather goods such as bags, loafers and gloves. In 1973, Celine redesigned its logo to become an intertwined “C”. Ms. Vipiana remained at the helm of Celine until her death in 1997. American designer Michael Kors became Celine’s creative director after Ms. Vipiana’s death, and he left Celine to focus on his own brand in 2004. In 2008, noted designer Phoebe Philo took over the artistic direction of Celine, with her first collection for the brand debuting in the spring/summer of 2010. Prior to Celine, Ms. Philo directed French luxury brand Chloé after the exit of Stella McCartney in 2001.

While Yorkdale’s Celine flagship is the first corporately-owned location for the brand in Canada, both Toronto and Vancouver once had franchised Celine boutiques until the late 1990’s. In Vancouver, luxury multi-brand retailer Collections International operated two standalone Celine shops — one was located next to a former Chanel boutique at 755 Burrard Street (both spaces are now occupied by Coach), and a second Celine boutique was housed on the third level of the Pan Pacific Hotel which was once home to various luxury brands. In 1976, Toronto multi-brand luxury retailer Ira Berg opened Canada’s first Celine boutique at 1508 Yonge Street just north of St. Clair Avenue, in a space currently occupied by a Subway restaurant. Several years later, Ira Berg opened a second Celine boutique on Toronto’s ‘Mink Mile’ at 110 Bloor Street West. Both shuttered when Ira Berg went bankrupt in 1996.

We’ll follow up on this story when Celine opens its Yorkdale flagship in the spring.

Luxury Brand ‘Longchamp’ Opens Impressive Yorkdale Flagship [Photos]

LONGCHAMP, YORKDALE SHOPPING CENTRE. PHOTO: LONGCHAMP

French luxury brand Longchamp has opened a beautiful new location at Toronto’s Yorkdale Shopping Centre, replacing a smaller storefront that recently shuttered nearby. Longchamp is expected to open at least one more Canadian store, according to sources, and the brand also has a robust wholesale business in retailers such as Nordstrom in Canada.

The new Yorkdale Longchamp store spans more than 1,900 square feet and is located across from the recently expanded Holt Renfrew store. It replaces the former 1,600-square-foot Longchamp location nearby that opened in 2015. The new expanded store now carries all Longchamp bag and accessory categories, including the revamped Roseau collection which features new colours and sizes. Longchamp says that the expanded Yorkdale space allows it to “tell a more concise merchandising story”.

The store’s facade was developed to look like a tridimensional curtain wall, made from faceted aluminum panels that have a pearl-like look. Fixtures in the store feature high-gloss, pearly lacquer and gloss and matte wood finished in oak, ebony and walnut. Leather accents in the store are “soft and feminine”.

LONGCHAMP, YORKDALE SHOPPING CENTRE. PHOTO: LONGCHAMP
LONGCHAMP, YORKDALE SHOPPING CENTRE. PHOTO: LONGCHAMP

The new Longchamp location is well situated between luxury brands Bulgari and Furla, with more big-names set to join as landlord Oxford Properties repositions another wing in the mall for luxury brands. Louis Vuitton will act as an anchor for the new wing in an 8,000-square-foot one-level space that will include ready-to-wear for both men and women.

Retail Insider interviewed Longchamp’s American President and CEO Stephanie Disegni in December of 2014 prior to the opening of the first Yorkdale location. She explained at the time that Longchamp had chosen Yorkdale for its first Canadian location given the strength of the mall’s luxury offerings, which has only gotten stronger as new retailers have been added to Yorkdale. One of the reasons Longchamp relocated was so that its space, along with the adjacent Ted Baker space, could be joined for the first standalone Canadian storefront for French luxury brand Celine.

At the time, Ms. Disegni said that Longchamp would look to open more standalone units in Canada. However to date the Yorkdale store is the only store in operation for the brand. A source at Nordstrom noted that when the Vancouver flagship opened in September of 2015, an expansive assortment of Longchamp bags in the store was meant to act as a key distribution point in the city. Longchamp also has an elevated presence at Nordstrom in Toronto, particularly at CF Toronto Eaton Centre where a new boutique space was recently unveiled in the store’s accessory area.

LONGCHAMP, YORKDALE SHOPPING CENTRE. PHOTO: LONGCHAMP

One source said that Longchamp is expected to open a store in Montreal, with details to follow. Longchamp would not confirm details of any future store openings when asked.

In the United States, Longchamp operates 14 full-priced stand-alone stores as well as two department store concessions. Longchamp also operates four outlet stores in the US as well. The brand can also be found in department stores and retailers in the US, with Nordstrom being a key account for the brand.

Longchamp was founded in 1948 in Paris and became known for its luxury leather goods. In the 1970’s, the company created a nylon and leather fabric luggage collection. The innovation resulted in light-weight luggage that crated brand recognition. Longchamp innovated again when it created its popular Le Plague handbag that is made from foldable nylon with leather trim, which can be found in stores globally and is more affordably priced than many luxury brands. The Le Pliage still remains Longchamp’s best-selling product and can be found in a range of shapes, sizes, patterns colours and fabrics.

Pier 1 Imports to Close All Canadian Stores

PHOTO: PIER 1 IMPORTS

US home furnishings retailer Pier 1 Imports will close all 67 of its Canadian stores as the company restructures in the United States. Pier 1 is filing for voluntary Chapter 11 bankruptcy in the US to facilitate a sale process which will allow the company to operate with a smaller footprint in the US while expanding its ecommerce business south of the border.

In connection with its plans to close all its stores in Canada, Pier 1 is also commencing proceedings in Canada, according to a statement.

Many of Pier 1’s stores and online platform will continue to operate in the US. As part of the restructuring, Pier 1 has received a commitment of approximately $256 million in debtor-in-possession financing from Bank of America N.A., Wells Fargo National Association, and Pathlight Capital LP. Following court approval, the company says that it expects this financing, together with cash flows from operations, to provide ample liquidity to support continued operations and the sale process through the Chapter 11 process.

The company said that it filed customary first day motions that, once approved by the court, will allow Pier 1 to transition its business into Chapter 11, including granting authority to pay wages and benefits and honour customer commitments in the ordinary course of business. The company will also continue to pay vendors and suppliers in the ordinary course for all goods and services provided on or after the Chapter 11 filing date in the US.

Pier 1 says that it intends to conduct a court-supervised sale process and complete the sale through its Chapter 11 plan. The company said in a statement that it expects that the deadline to submit qualified binding bids will be on March 23, 2020, subject to procedures to be approved by the court.

Robert Riesbeck, Pier 1’s Chief Executive Officer and Chief Financial Officer, said, “In recent months, we have taken significant steps forward in our business transformation and cost-reduction initiatives. We have worked to establish an appropriately sized and profitable store footprint, operating structure and merchandise assortment that will enable Pier 1 to better serve our customers across store and online channels. Today’s actions are intended to provide Pier 1 with additional time and financial flexibility as we now work to unlock additional value for our stakeholders through a sale of the Company. We are moving ahead in this process with the support of our lenders and are pleased with the initial interest as we engage in discussions with potential buyers.”

Pier 1 has been struggling for years with its stock having gone from US$300 a share in 2015 to about US$3.56 on Friday of last week. The retailer’s sales fell 13% to US$358 million in its most recent quarter that ended November 30, 2019. Pier 1 reported a net loss of US$59 million for the quarter as the retailer continued to struggle to draw customers to its network of stores. Efforts were put in place to better organize cluttered stores while attempting to draw-in a younger consumer demographic while also growing online sales.

Retail Insider recently reported that it had counted more than 700 store locations that would be closing in Canada between January 1 and the end of March of this year. Pier 1 is another addition to the list. Pier 1 stores in Canada are located in standalone boxes, power centres, strip centres and in some shopping centre properties, which will require landlords to repurpose vacated spaces.

‘The Prime Effect’ Means Canadian Retailers Must Innovate to Survive

IMAGE: AMAZON PRIME

By Grant Alexander Wilson

Many retailers are experiencing what I have dubbed The Prime Effect in reference to Amazon Prime. The ability of online retailers to offer next-day delivery service for an annual fee or at an affordable price has dynamically changed the retail business and shifted sales from in-store to online.

It’s now more convenient and equally economical to shop online compared to in-store. The biggest retail question continues to remain unanswered. How do physical retailers increase in-store sales?

This question remains top of mind for retailers all year round. My interest in this as a research topic evolved from my PhD studies. Now, as a faculty member in the Department of Management and Marketing at the University of Saskatchewan’s Edwards School of Business, I am exploring how retailers can remain financially successful in the wake of The Prime Effect.

The answer to this all-important question relates to retail innovation.

ONLINE PERSONALIZED SHOPPING. PHOTO: RDX SPORTS

Innovation, financial performance linked

In my forthcoming study of 225 Canadian retailers to be published in the Wiley Online Library, innovation was found to have a direct impact on financial performance. Specifically, innovation was the missing link between retailers’ employee work ethic, customer orientation and financial performance.

But employing a customer orientation approach — an organizational-wide commitment to understanding and serving the needs of the target market — and having a motivated workforce was not enough to enhance retailers’ sales, margins or profits.

Retailers that were highly innovative, however, outperformed their non-innovative competitors. This finding is supported by other prominent research that has suggested innovation is the missing link between strategies and company performance, but I demonstrated its importance among retailers.

Retail innovations, of course, include new products and services but also personalized shopping experiences and unique loyalty programs, to name just a few.

Personalized shopping experiences can be implemented that mirror online analytics, permitting salespeople to use customer information to make recommendations. Unique loyalty programs can offer regular customers first access to new inventory, creating stronger brand loyalty and in-store sales.

Changing the environment

While strategy is a process, innovation is a way of thinking about strategy. Innovation requires environmental changes at companies that support new ways of thinking. Changing the environment requires new actions and behaviours of both management and employees.

Although innovation is typically thought of as creating those novel products and services, it also includes the environmental changes within organizations that support innovative thinking. Innovation thought leaders, in fact, suggest companies should invest as much as 10 per cent in innovation, and divest of activities that fail to add value by the same amount.

The first step is understanding the importance of innovation. The second step involves the willingness to dedicate resources to innovation. The final, most critical step is all about innovation implementation.

Implementing innovation

According to American academic Peter Senge, named Strategist of the Century by Journal of Business Strategy, it’s the job of senior leadership to create an organization’s culture. Therefore, top management must be committed to creating an innovative culture. In order for an innovative culture to be successful, it also requires employee buy-in at all levels.

It’s clear that retailers need to embrace innovation. They must have a workforce that is motivated as well as one that is customer-oriented, but innovation is what will truly set the top-performing retailers apart.

Regardless of the innovation strategy, it’s integral to the success of Canadian retailers. Perhaps the greatest strategic risk is not innovating and failing, but failing to innovate at all.

Grant Alexander Wilson

Grant Alexander Wilson is a faculty member of the Department of Management and Marketing at the Edwards School of Business, University of Saskatchewan. He teaches strategic management, entrepreneurship, and technology commercialization courses. His current research interests include entrepreneurship, marketing, consumer economics, and organizational learning.

Iconic Vancouver Retailer ‘Leone’ Downsizes Store Amid Unprecedented Luxury Retail Competition in the City

PHOTO: SINCLAIR CENTRE

Multi-brand luxury retailer Leone has downsized its 25,000-square-foot storefront in downtown Vancouver after having expanded the store significantly about 25 years ago. The smaller store will continue to operate and carry luxury brands at a time of unprecedented competition in the city.

Leone has been known over the years as one of North America’s top multi-brand luxury stores, carrying a wide range of well-known brands, many of which are Italian. Many brands have been introduced into the Vancouver market through Leone, which continues to carry an impressive roster of designer names, though many former brands have since either opened standalone stores or have moved to competitors such as Holt Renfrew and Nordstrom. Versace has been a key brand for Leone since the store opened in 1987, occupying an impressive space exceeding 2,000 square feet on the southeast corner of the store. Until earlier this month, Leone spanned three levels which included two floor-plates spanning about 12,000 square feet each, as well as a third level that in the past has housed footwear at one time and before that, a Burberry boutique. Leone has shuttered the lower-level space in the store that was branded as ‘A-Wear’ when it opened in 1996 (followed by ‘L2’), with a focus on contemporary brands. Some of the contemporary brands have been moved to the mezzanine level to diversify the price-point within the downsized Leone store.

Gone as well is the in-store cafe that occupied part of the lower-level retail space. A representative at Leone said that the licensee was looking to retire and that it was unclear if a new cafe would be part of the downsized Leone store in the future. At one time, Leone operated a small cafe on its main level which relocated downstairs with the store’s expansion.

Leone has been a fixture at the Sinclair Centre at 757 West Hastings Street since it opened in 1987. Founders Alberto and Maria Leone moved to Vancouver from Montreal in 1970 where they opened a hair salon, which eventually expanded to include a retail space for women’s fashions. The retail concept was named ‘Alberto Boutique’ which expanded to several locations which included a standalone Alberto’s Shoes boutique specializing in high-end Italian footwear. After opening a half-dozen standalone fashion boutiques in Vancouver under the Alberto name, the couple opened a single Alberto’s location at the newly-built three-block long CF Pacific Centre shopping complex in 1974. In 1987, the couple relocated retail operations to a stunning one-level space at the Sinclair Centre and called it Leone.

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(Above slides: main floor and lower level floor plans of the Sinclair Centre in Vancouver)

The 12,000-square-foot Leone store was a hit amongst monied locals and tourists, featuring an Italian-themed central corridor flanked by departments and over the years, several prominent luxury boutiques. A space on the east side of the store featured several different boutiques — in the early 1990’s, an Armani Collezioni boutique was featured within Leone, which was followed by a Dolce & Gabbana boutique and then Iceberg. All three are prominent Italian brands that stood alongside a dedicated Versace boutique which opened in Leone in 1987. The licensed Versace boutique remains to this day, though a stunning original ceiling mural was unfortunately subsequently painted over.

After a divorce several years ago, Alberto and Maria Leone sold the Vancouver store in 2015 to former TV and theatre actress Nicole Yang, who moved to Canada from China about 25 years ago. Under Ms. Yang’s direction, Leone has targeted a Chinese demographic with private shopping and events, and the store’s website is also translated into Chinese.

MAIN FLOOR ACCESSORY AREA PHOTO: LEONE

Leone continues to carry an impressive roster of big name brands, though the retailer also stocks some more obscure and hard-to-find brands not found elsewhere in the city. Some big names carried in store, according to Leone’s website, include Alexander McQueen, Giorgio Armani, Prada, Moschino, Valentino, Giambattista Valli, Miu Miu, Carolina Herrera, Lanvin, Alberta Ferreti, Blumarine, Thom Browne, Bottega Veneta, and Brunello Cucinelli. When Leone opened in 1987, Vancouver was something of a fashion backwater and only a select few luxury brands were available at the city in retailers such as Holt Renfrew, which operated a 45,000 square foot store at CF Pacific Centre at the time.

Over the past decade and especially over the past five years, many of the above brands have either opened their own stores in Vancouver or have found a prominent place in one of Vancouver’s big three downtown department stores. Alexander McQueen has a presence at the 230,000-square-foot Nordstrom at nearby CF Pacific Centre in Vancouver, as does Valentino, and Lanvin. Holt Renfrew’s expanded 190,000-square-foot store at CF Pacific Centre also carries McQueen as well as Armani women’s ready-to-wear, Valentino, Thom Browne and others — Holts also features boutique concessions for brands Prada, Miu Miu, and Bottega Veneta. In ‘The Room’ at Hudson’s Bay, Giambattista Valli’s pricey women’s gowns are part of the stocklist, as is Moschino. Menswear retailer Harry Rosen at CF Pacific Centre carries a few brands also at Leone including Giorgio Armani, Thom Browne, Brunello Cucinelli, and Bottega Veneta accessories and footwear.

Several of the brands carried at Leone also now have standalone stores in downtown Vancouver. In the spring of 2016, Prada opened a massive flagship store at Alberni and Thurlow Streets, and Brunello Cucinelli opened its first Canadian store across from it in late 2015. Other luxury brands are said to be looking to open standalone stores if space can be found downtown, or if landlord QuadReal is able to work out deals at its overhauled Oakridge Centre development on Vancouver’s West Side.

Other brands carried at Leone such as Dior have since stepped away — Dior opened its Vancouver flagship in the summer of 2015, and concessions have since opened at Holt Renfrew for men and women.

Retail Insider interviewed Alberto Leone in October of 2014 when we ran into him at his store. He explained that in years past, he had considered opening a second Leone store at Manulife Place in Edmonton. Mr. Leone said that other upscale tenants such as Holt Renfrew (which closed last month) as well as Henry Singer, Birks (now closed) and Blu’s Womenswear positioned Manulife Place as a centre that could support a Leone store. However upon arriving in Edmonton, Mr. Leone said that he was turned off by -40 degree weather as well as a negative interaction with a waitress in a restaurant, and plans for the Edmonton location were promptly called off.

Leone continues to operate in the Hastings Street ‘Heritage District’ which a decade ago was expected to become Vancouver’s luxury zone, competing head-to-head with up-and-coming Alberni Street which was also starting to see the addition of new luxury retailers such as Burberry. A block away at 900 West Hastings Street, Chanel operated a two-level 5,000 square foot store for a time until it closed due to struggling sales in 2010 (Chanel is now highly successful inside of Holt Renfrew). In the Sinclair Centre, a 13,000 square foot Plaza Escada store, once the largest of its kind in the world, closed several years ago and was replaced by a much smaller Escada store at the northeast corner of Alberni and Thurlow Streets.

Other upscale retailers that have operated in the upscale stretch of Hastings Street included Alfred Dunhill, Hugo Boss Woman, Mount Cashmere, Dorothy Grant, and a satellite location for Pappas Furs. Several upscale retailers continue to operate in the area, including a soon-to-be-renovated Maison Birks flagship jewellery store and a Roche Bobois furniture store. Nearby at 456 Howe Street, a Cartier store remains though sources say that it will relocate this fall to the 755 Burrard building and will also have frontage on Alberni Street.

Lightspeed Opens Toronto Office

IMAGE OF DAX DASILVA. PHOTO: LIGHTSPEED

Montreal-based Lightspeed, which serves small and medium-sized businesses with its cloud-based omnichannel point of sale software, has opened a new consolidated office space in downtown Toronto. The office is part of the company’s endeavour to grow its operations while securing exceptional talent in the city after Lightspeed went public on the Toronto Stock Exchange last year. 

Lightspeed’s Toronto office is now located at 410 Adelaide Street West, which is only a few steps west of Spadina Avenue. The building itself spans six levels and is part of an up-and-coming area that is seeing substantial development. The fifth-floor Lightspeed office features a branded lobby area with dark walls which leads into a kitchen hub facing open-concept work areas and meeting rooms. Plants and flowers are found throughout the new space which features an industrial-like design. A total of 27 Lightspeed employees currently work out of the space, and there will be room for more team members as Lightspeed expands its Toronto presence. 

EXTERIOR SHOT OF LIGHTSPEED OFFICE ON ADELAIDE ST, TORONTO.

The new Toronto office’s focus is on corporate development as well as Lightspeed Loyalty and Lightspeed Payments operations — underwriting and charge backs are also done by the Toronto team. The central workspace features Lightspeed’s consumer-facing loyalty initiatives along with developers who are continuously updating the retail platform. 

Toronto is undergoing a tech boom, with thousands of skilled individuals descending on the city annually. Dax Dasilva, founder and CEO of Lightspeed, said that one of the goals of opening the Toronto office is to gain access to the exceptional talent pool found in Toronto as Lightspeed continues to evolve and grow. He explained how Toronto’s embracing diversity makes it an attractive city for employees, along with the city’s strong universities and financial services centre. A strong tech ecosystem in Toronto includes experts in developing apps and other technology that is being integrated into Lightspeed’s platforms. 

NEW LIGHTSPEED INTERIOR. PHOTO: LIGHTSPEED

The new Toronto office also gives Lightspeed a place to hold meetings and meet with clients in the city. Mr. Dasilva explained how Lightspeed’s senior management is spending more time in Toronto than ever, especially after launching the successful IPO last year. Proximity to Toronto’s Financial District is an added bonus as Lightspeed continues to grow its operations in Canada’s biggest city. Business development will continue to be a priority in the Toronto office, particularly given the office’s location near other tech and financial services. Lightspeed also has a team of employees in nearby Waterloo, as well as the company’s Chief Financial Officer and General Counsel.

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Lightspeed previously operated several smaller office operations in Toronto. Mr. Dasilva said that it took some time to find a “great” space in the city, particularly with a tight office market amid an unprecedented tech boom in Toronto which has seen a record-low vacancy rate. Lightspeed will continue to grow its operations globally as the company continues to launch new products to better serve its thousands of retail and restaurant customers. Lightspeed now employs more than 900 people in its 14 offices around the world and is poised for future growth as it secures more business clients and expands its offerings geared towards creating efficiencies.

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

Retail Neighbourhood Profile: Toronto’s Eglinton Avenue West [Feature]

PHOTO: THE EGLINTON WAY BIA

By Jessica Finch

Toronto has often been called a city of neighbourhoods. It’s sprawling and ever-growing city limits house many communities, each with its own characteristics and retail landscapes. 

Eglinton West, specifically between Bathurst Street and Avenue Road (Oriole Parkway and Chaplin Crescent to be exact), is governed by The Eglinton Way BIA

Situated within the northern boundaries of Toronto’s affluent Forest Hill neighbourhood, this stretch of Eglinton is diverse in its retail offerings. It encompasses a variety of clothing retail, food and beverage retail, and a wide range of aesthetic and fitness services. Many of these businesses are catered towards the prosperous surrounding community, with primarily independent, owner-operated enterprises supplying high-grade customer service. “Many of the businesses have been operating for many years, some are specialty destination businesses and have loyal customers who come from across the city or out of town,” said Lais Fabricio, Manager at The Eglinton Way BIA.

PHOTO:WWW.PRWEB.COM

Landmarked by the beautiful Eglinton Grand — which was once a movie theatre — this nine-block radius actually has a higher than average number of retail stores. “In our BIA, just focused on clothing, we have 10 businesses. Adding to that, there are seven jewellers, and more than six stores focused on home products, food/grocery stores, pharmacies, and pet supplies,” said Fabricio.

With a healthy mix of retail categories, it doesn’t appear as though one trumps another. It also doesn’t appear to have a very high turnover rate, with a number of businesses existing in the neighbourhood for many years. For example, Hotel Gelato, a popular breakfast, lunch, and gelato restaurant just celebrated ten years of success this month.

Eglinton sits at the geographical centre of the city of Toronto. Considered part of the city’s midtown, Eglinton West is currently serviced by bus and this particular stretch rests right between Eglinton West subway station and Eglinton Station, with an LRT soon to come.

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With anchor stores such as Shoppers Drug Mart, LCBO, and The Healthy Butcher, this neighbourhood is considered a walker’s paradise judging by its walk score. Most errands can be accomplished by foot, meaning the retail offerings are practical and well rounded, providing locals with a bustling community.

PHOTO: THE EGLINTON WAY BIA

Bars, Restaurants, and Cafes

The food and beverage retail scene on Eglinton West is varied. There are a number of Italian restaurants such as Ferraro’s and 7 Numbers providing traditional, homestyle Italian cuisine, and also a mix of Japanese/Chinese restaurants, Persian restaurants, lunch spots, and steakhouses. 

Last year saw the opening of Asian fusion restaurant, Blooming Orchird. An increasingly popular dinner spot for locals, it shares the street with longstanding Chinese restaurant House of Chan and many busy Japanese sushi spots. 

7 Numbers, situated at 516 Eglinton Ave West, is a southern Italian restaurant extremely popular with the locals. It sits next to The Abbot, a cozy pub serving comfort food next to an open fire in the winter or on a patio in the summer. A few doors down is Hotel Gelato, a favourite breakfast, lunch, and brunch spot, generally filled with families on the weekends enjoying homemade gelato. 

Also offering food and beverage options are Phipps Bakery and The Mad Bean Coffee House. Both long-time residents of Eglinton West, both businesses provide the community with a warm and inviting space to pick up a coffee, or indulge in some baked goods. 

Traditional Retail 

As mentioned above, the traditional clothing retail landscape on Eglinton West is significant, with 10 businesses operating within the nine-block radius. Mostly centred on women’s fashion, stores like Honey, Bella, Revival Couture, and a massive TNT location line the street. Victory Menswear and Kingsport Big and Tall Clothiers also joins the line up. 

313-315 EGLINTON AVENUE IS FOR LEASE. CLICK THE IMAGE TO DOWNLOAD THE BROCHURE

Despite the number of stores, admittedly the clothing retail does not appear to create the same hype as the surrounding restaurants and gyms. This shouldn’t come as a surprise in today’s retail world. As consumerism moves towards experiential retail, Eglinton West is yet another example of the repercussions of this shift.

Online clothing boutique Stimoda recently closed its brick and mortar store on 454 Eglinton Ave West, and seen in the above picture, Revival Couture is in the midst of a “retirement sale.”

PHOTO: JESSICA FINCH

Groceries

Big news coming out of Eglinton West recently is the upcoming addition of Summerhill Market. One of Toronto’s most successful and popular boutique grocery retailers, Summerhill Market has been working on an expansion plan for the past few years with another new location opening on Bathurst Street late last year. Summerhill Market Eglinton will be its biggest location to date, with two storeys connected by an elevator, and an extensive array of first-to-market products and ready-made meals. The price point is higher than your average grocery store but that shouldn’t be a concern for shoppers in this neighbourhood. 

PHOTO: THE HEALTHY BUTCHER

Who it might be a concern for, however, are the smaller, independently-run grocery stores along the strip, such as Fresh Harvest and Dave Young. Both have been operating successfully for many years in this neighbourhood, maintaining a virtual monopoly in terms of fresh produce. The introduction of Summerhill Market is sure to mix up grocery shopping in the neighbourhood, however it is clear that a strong sense of loyalty exists within this community, hopefully meaning that long-standing grocery retailers, like the above mentioned, will continue to prosper alongside Summerhill.

Gyms and Fitness

There is definitely no shortage of fitness destinations in the area, with new yoga studios, barre studios, and boutique gyms opening frequently. Interestingly they all appear to do very well despite the competition, clearly servicing an important need within the community. Some of the long-standing gyms like MBody and Body & Soul Fitness have been staples in the neighbourhood for many years. Joining them more recently has been Oxygen Fitness, The Werkout, and Barre Belle, each offering a slightly different and highly specialized form of exercise. Co-existing doesn’t seem to be an issue for these businesses as their doors are always open and brimming with people.

An interesting addition to the wellness/fitness category was Soul Sound Wellness, which opened in 2019. Providing relief from stress, anxiety, depression, and other physical and emotional issues Soul Sound Healing uses a variety of organic instruments to find and adjust frequencies inside the body. “This creates harmonious resonance and deep awareness unifying the Mind, Body, Soul, and Spirit.” Clearly taking experiential retail to an extreme, Soul Sound Wellness is a good example of the type of retail doing well in this part of the city.

Services 

Similar to the above category, service retail options along this stretch of Eglinton are plentiful. Dry cleaners, Dental clinics, nail salons, brow bars, and hair salons line the street. Hair hotspots like Le Drew Costello and One 2 One work happily alongside each other, working within a two block radius of one another. Across the street, Kozeta and Hair by Toula also work side-by-side, providing haircare and aesthetic treatments to the surrounding community. 

Interspersed amongst this are nail salons and brow bars, one of the most recent being Haley Bogaert Face, a brow bar with its own line of make up and skincare products. A few doors down is B.Beautiful, a salon offering similar services, and further to the west is LTS Nails, a popular nail salon. 

Some of the newer additions to the neighbourhood include The Nomad Steakhouse, Isle of Coffee, and Barre Belle. All part of the experiential realm of retail it will be interesting to see how these businesses prosper in 2020. 

With the Riocan Yonge Eglinton Centre’s relatively recent transformation, one would wonder how it has impacted the neighbourhood retail landscape on Eglinton West. “The Centre hasn’t impacted that much because most people in our area tend to shop in local independent businesses. There is a correlation between the socio-economic and demographic characteristics within the immediate residential neighbourhood, and the business mix, rate of turnover, and general level of prosperity experienced on main streets. And this is very much seen here on the Eglinton Way as people do support the businesses close to them, and 30% of the people visiting the retailers live within 800 metres.”

THE RIOCAN YONGE EGLINTON CENTRE. PHOTO?: RIOCAN/W&W GLASS

The upcoming completion of the Eglinton LRT has brought much excitement to the businesses who call Eglinton home. Despite the construction heavily impacting some stores along Eglinton, the stretch between Bathurst and Avenue Road has, for the most part, come out unscathed. Due to connect Eglinton to the rest of the city in a more direct manner, the LRT is sure to bring new shoppers to the neighbourhood and increase foot traffic in general. “There will be 25 LRT stations, all along Eglinton, and the Eglinton Connects plan will create a complete street with wide sidewalks, maintain parking supply, and extend the network of rear lanes. There are  a lot of great things coming and the Eglinton Way BIA is ready.”

Despite the liveliness of the retail landscape on Eglinton West, there are still a few vacant units interspersed amongst the businesses. Fabricio mentions the sometimes uncertain nature of retail vacancies in the area, admitting that the recent LRT construction played a part in a faster turnover. Things seem to be settling now, however, with many big plans in place for the vacant units coming soon. 

Fabrico and her colleagues at The Eglinton Way BIA note that the retail environment on Eglinton can be divided between pre and post internet shopping. “Prior to the influence of online shopping, there were more retail stores that included women’s clothing, shoes and accessories and now there are more service and activity related businesses.  There are fitness studios, tutoring services, music, art and sewing schools.”

IMAGE: INFRASTRUCTURE ONTATIO

Understanding the need for businesses to have an online presence, the BIA has dedicated a lot of time to the development of their Digital Main Street program. That includes providing information and assistance to local businesses on topics such as digital presence and digital advertising. 

The focus of the BIA is to create a vibrant and prosperous business area for residents, visitors, tourists, and entrepreneurs. “Our mandate is to improve, beautify, and promote the area as a business and shopping district through marketing, public programming, and streetscape improvements. As the completion of the LRT is nearing we are looking to re-install our signature gateway at Eglinton and Chaplin Crescent and to further improve our streetscape with new planters, banners, benches, and suitable landscaping.The objective is to bring people in and when they come they find a beautiful and clean neighbourhood with great shops, restaurants, and services that will invite them to spend more time with us.”

As Toronto grows, Eglinton has managed to retain a lot of its small-town charm. The community is tight knit and the surrounding businesses enjoy an intimate relationship with their customers. Loyalty runs deep as many of the residents and business owners originally hail from the Forest Hill neighbourhood. “If you take a stroll in the area you’ll see friends hanging out in a café, mothers and daughters together at a hair appointment, and friends simply walking into each other and spending time together. People here know each other and know their neighbours, they are a community and Eglinton is part of the fabric of their lives.”

How Blockchain and Crypto Is Impacting Retail in Canada

IMAGE: SOFI

By Kayla Matthews

Blockchain and cryptocurrency are two hot topics in Canada and elsewhere.

Blockchain technology consists of a digital ledger system that records various kinds of transactions between parties, and cryptocurrencies are digital, token-based currencies that run on the blockchain’s ledger. Bitcoin is the most well-known cryptocurrency, but there are now thousands of others such as Ethereum. There has been a high volume of people interested to buy ethereum this year.

Many analysts think crypto and retail represent a likely pairing. Here are four examples of the impacts that cryptocurrency and blockchain have had on retail or will soon.

PHOTO: FJÄLLRÄVEN

1. Engaging Younger Consumers

Retailers hear a lot about the buying power of younger generations and how important it is to engage those groups in ways that seem authentic and relevant. Fjällräven, a Swedish outdoor goods retailer, had success when it depended on cryptocurrency to get college students interested in the brand.

The company’s logo features a fox, so it’s not surprising that Fjällräven introduced a cryptocurrency called the Fox Coin and encouraged people to hunt for it by using their smartphones on a scavenger hunt. Part of the month-long campaign involved the opportunity to win a Kånken — one of the brand’s popular backpacks — every day.

This effort capitalized on cryptocurrency, plus introduced or got more young people interested in the brand. Moreover, the contest made people go outside to look for the coins, and being outdoors is a central priority for Fjällräven. Other brands that wish to someday be thought of as Bitcoin retailers or those who support other cryptocurrencies should take note.

A 2019 survey from PwC polled Canadians near the holiday season and found that the Gen-Z and millennial generations felt most positive about the economy and their finances. Retailers could take advantage of that momentum and use cryptocurrency promotions to encourage people to spend while they’re feeling optimistic.

IMAGE: EVRYTHING

2. Increasing Product Transparency

People are getting more concerned about the origins of the products they buy, particularly if the item is high-dollar, or perhaps associated with food or sustainability. Buyers no longer merely trust what brands tell them about the journey merchandise takes before it reaches them. They want to verify for themselves, and blockchain technology does that.

Matthew Williams, who once worked with Lady Gaga and Kanye West, launched the 1017 Alyx 9SM fashion brand in 2015. More recently, he made a compelling business case for blockchain by explaining how it could boost transparency. A person could scan a QR code on a tag attached to some of the products in the fashion line, then see a complete history of what stages the garment went through before arriving in the consumer’s hands.

Williams says consumers who scan the QR code can even see the source of the raw materials. Such transparency makes sense for Canadians who want more clarity about the progress that products make in the supply chain. Having such visibility helps retailers stand out and lets people have confidence in brands.

IMAGE: SCOTIABANK TWITTER

3. Disrupting Banking With Blockchain

The retail sector is not alone in its adoption of blockchain technology. The banking sector — which retail depends on heavily — is aggressively exploring ways to implement the blockchain to increase security. It’s also looking at other benefits, such as those related to risk management and speed.

The blockchain is also ideal for Canadian retailers who do business in other nations. Blockchain technology does not carry the fees associated with cross-border remittance, thereby saving brands money.

In May 2019, several Canadian banking names, including Scotiabank and National Bank of Canada, deployed a blockchain solution for identity verification. Since it does the job speedily and securely, such an improvement could shorten the time it takes for Canadian retailers to open accounts, apply for loans or take care of other banking necessities.

PHOTO: SHOPSQUAREONE

4. Giving People More Payment Options

If people are curious about who accepts cryptocurrency in Canada, the list recently got substantially larger. Flexa, a company bridging the gap between crypto and retail, recently branched out into Canada. It will enable a network of more than 7,500 brands to potentially become Bitcoin retailers or those that accept other popular cryptocurrencies.

Birks Group, a luxury Canadian jewelry brand, announced people could pay with Bitcoin at some of its stores. The offering is through BitPay, a service frequently chosen by upscale brands since it handles large payments quickly.

If a merchant decides to accept cryptocurrency, the perk could appeal to people who are eager to experiment with the option. Shoppers who are already enthusiasts are also likely to buy in.

Crypto and Retail Are Well-Matched

These examples show that cryptocurrency and blockchain are in prime positions to heavily influence retail. Now is the time for retail professionals to monitor the trends and get ready to potentially benefit from them, especially as crypto trading increases.

Kayla Matthews

Kayla Matthews is a researcher, writer and blogger covering topics related to technology, smart gadgets, the future of work and personal productivity. She is the owner and editor of ProductivityTheory.com and ProductivityBytes.com. Previously, Kayla was a senior writer at MakeUseOf and contributing freelancer to Digital Trends. Kayla’s work on smart homes and consumer tech has also been featured on Houzz, Dwell, Inman and Curbed. Additionally, her work has appeared on Quartz, PRNewswire, The Week, The Next Web, Lifehacker, Mashable, The Daily Dot, WIRED and others.

DX3 Conference Returns to Toronto March 10-11 2020

By Retail Insider

The annual will be held again this year on March 10-11 at the Metro Toronto Convention Centre. More than 100 industry speakers and 50+ immersive exhibitions will be part of the event that is expected to see more than 3,200 attendees over the two days. []

DX3 is Canada’s biggest retail, marketing, and technology event that features ample networking opportunities as well as international speakers, expert insight, innovative solutions, workshops and tech demonstration. The list of attendees is extensive and include representatives from some of the biggest brands globally, not to mention plenty of big Canadian names.

The conference includes the Retail Summit which features some of the most innovative retail professionals as well as tech experts who help retailers do what they do best, and the full agenda .

The Marketing & Innovation summit will provide insight into how top marketers ‘break through the noise’.  You’ll hear from marketing leaders who know what it takes to build successful brands and run campaigns that do well. Included will be stories, case studies, best tips, and opportunities to take part in interactive panel discussions, and you’ll get to discover some of the latest innovations transforming the industry.

The DX3 Talks will take place on the show floor and is free to attend for those either showing a floor pass or All-Access Pass. Over the course of two days and on different stages, these interactive workshops are designed to give you actionable advice to help you thrive as a professional and grow your business. []

The Exhibition floor will feature the latest in retail, marketing and tech that will include clever concepts and solutions to take a business to the next level, as well as interactive displays and experiential retail labs. There’s an opportunity to make meaningful connections with fellow retailers, marketers, and tech professionals.

Speakers at this year’s DX3 Conference are extensive, including talks from Loblaw Media, Harry Rosen, Toys R Us, Sobeys, LEGO, Cadillac Fairview, Oxford Properties Group, LCBO, Coca-Cola, Lowe’s, BonLook, Ikea, McDonald’s Canada, Home Depot, Pandora, Shopify, Visa Canada, Johnson & Johnson, and many others. []
 


Tickets to DX3 are now available to purchase, and. Get $100 off the All-Access tickets by using code CONF2020, and attend the show floor for FREE by using code dx3showfloor.

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We look forward to seeing everyone there, as Retail Insider will also be in attendance.

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

Special Edition 4: Interview with Retail Expert Ramesh Venkat (David Sobey Centre for Innovation in Retailing and Services)

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An off-schedule podcast where Craig discusses Canadian retail trends with Ramesh Venkat, a director and retail expert from the David Sobey Centre for Innovation in Retailing and Services, including Canadian retail challenges, how the customer has changed over the last decade, how AI is being integrated into Canadian retail and other trending retail topics.

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 Retail Executive Program – RISE: The Retail Innovation, Strategy & Excellence (RISE) program at the David Sobey Centre is designed to provide retail leaders with the skills, tools and insights to stay ahead of the curve. Hosted at Saint Mary’s University in Halifax, Nova Scotia from April 19 – 24, 2020, this 6-day intensive program exposes participants to current ideas by thought leaders and subject matter experts, in a retail-focused environment. 

Interview Details

  1. Ramesh Venkat, PhD

  2. David Sobey Centre for Innovation in Retailing and Services

 

 
 
 
 
 
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