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Hugo Boss Relocates Canadian Flagship from Bloor-Yorkville to Yorkdale [Photos]

Hugo Boss Yorkdale Flagship PHOTO: CRAIG PATTERSON

Upscale German fashion brand Hugo Boss has officially relocated its Canadian flagship from Toronto’s ‘Mink Mile’ to the Yorkdale Shopping Centre. The new Yorkdale store showcases Hugo Boss’ latest store design which is being rolled out globally in new and renovated locations. 

The new Yorkdale Hugo Boss flagship occupies a space spanning nearly 6,650 square feet in the mall’s 2012 expansion wing which has recently seen the addition of several new luxury brand stores. A total of 5,766 square feet of the new Hugo Boss store is dedicated to retail space, according to the company. 

The new Yorkdale flagship replaces a smaller Hugo Boss storefront that operated nearby for about seven years, measuring nearly 4,700 square feet in total. Last week, we reported that French luxury brand Balenciaga would be moving into the former Hugo Boss space with an anticipated opening date in December of this year, neighbouring recently opened flagships for Valentino and Bottega Veneta, as well as across from an expanded Holt Renfrew flagship that includes mall-facing ‘world of’ concessions for brands including Gucci, Fendi and Dior. 

CLICK IMAGE FOR INTERACTIVE YORKDALE MALL MAP

The new Yorkdale Hugo Boss flagship carries an expansive assortment of Hugo Boss fashions for both men and women including ready-to-wear, footwear, accessories and leather goods, including the latest fall/winter 2019 collections that also include the brand’s ‘Runway Capsule’.

The store’s design features a brighter aesthetic with ample use of wood — Hugo Boss says that it sought to create a “warm and residential feel” by using materials to create “an inviting yet refined ambiance”. The furniture and fixtures in the new store were designed with clean lines and arranged to showcase the product itself. 

In an effort to make guests feel comfortable, seating areas can be found throughout the store. The light wood walls contrast with granite flooring and grey carpeting in some areas. Modern elements include digital LED screens showcasing brand-related campaign videos and fashion shows. 

HUGO BOSS’ NEW YORKDALE FLAGSHIP STORE PHOTO: HUGO BOSS
HUGO BOSS’ NEW YORKDALE FLAGSHIP STORE PHOTO: HUGO BOSS
FORMER HUGO BOSS FLAGSHIP AT 83 BLOOR ST. W. IN TORONTO. PHOTO: CBRE

The new Yorkdale Hugo Boss flagship replaces the brand’s former Canadian flagship that once operated at 83 Bloor Street West in Toronto’s famed ‘Mink Mile’. That Hugo Boss store occupied a building encompassing 13,900 square feet over four floors, including a basement level. The three above-grade retail floors spanned about 10,300 square feet with each level measuring about 3,500 square feet. 

The former Mink Mile Hugo Boss flagship closed in January of this year after a nine-year run in the standalone building that stood between Sephora and COS, and across from luxury menswear retailer Harry Rosen. The Bloor Street Boss flagship opened to much fanfare in December of 2009 in a prominent three-level building that has housed a variety of tenants over the years. As of September 2019, the former Hugo Boss space is being used as a luxury clearance centre for a well-known local retailer while brokerage CBRE looks to lease the building to a new retail tenant. 

Toronto’s stretch of Bloor Street West between Yonge Street and Avenue Road is seeing a transformation that includes the addition of some of the world’s biggest brand names. Any day now, luxury brand Christian Dior will officially open its largest flagship in North America at The Colonnade, joining luxury brand flagships for the likes of Hermes, Gucci, Tiffany & Co., Prada and Louis Vuitton. Brokers and other sources confirm that the area is expected to see a flurry of leasing activity after the opening of Eataly at Manulife Centre at 55 Bloor Street West, as well as the completion of the Holt Renfrew flagship at 50 Bloor Street West next spring. We’ll be reporting more extensively on Bloor-Yorkville’s retail transformation in the days and weeks to come. 

Hugo Boss also recently closed its West Edmonton Mall store temporarily for a renovation. Its interior is now similar to that of the new Yorkdale Boss flagship. 

Oxford Properties Innovates by Announcing World’s 1st ‘Dr Seuss Experience’ Centre for Square One

RENDERING OF ONE OF THE ROOMS IN THE DR. SEUSS EXPERIENCE CENTRE AT SQUARE ONE IN MISSISSAUGA. PHOTO SUPPLIED VIA KILBURN LIVE/NKPR

Landlord Oxford Properties is adding a unique entertainment attraction to its Square One property in Mississauga. In October, the world’s first ‘The Dr. Seuss Experience’ will open in a standalone site across from the massive shopping centre, with a goal of increasing traffic to the area while also attracting visitors from the Greater Toronto Area and beyond.

The Dr. Seuss Experience was created in a partnership by Kilburn Live and Dr. Seuss Enterprises, which will see the traveling entertainment concept open in several cities in North America for a limited run. The Square One activation opens to the public on October 26 and will be open for at least three months, according to Square One’s General Manager Greg Taylor.

The 15,000 square foot Dr Seuss-branded experience centre will occupy a standalone building at 199 Rathburn Road and it will be highly immersive and experiential. The space will provide a “journey” with separated rooms themed after Dr. Seuss stories and characters. That includes areas dedicated to “The Cat In The Hat” to “Horton Hears A Who!” and “The Lorax,” as well as other timeless favourites that will be brought to life in the new Dr. Seuss Experience centre.

RENDERING OF THE BALOON MAZE AT THE DR. SEUSS EXPERIENCE CENTRE AT SQUARE ONE IN MISSISSAUGA. PHOTO SUPPLIED VIA KILBURN LIVE/NKPR

At the centre of the Dr. Seuss Experience will be an inter-connected maze inspired by “Oh The Places You’ll Go!” story that will be comprised of thousands of suspended balloons. Each of the rooms in the Dr. Seuss Experience centre will be colourful and will no doubt be photographed by those posting to social media such as Instagram. The company says that the centre will also explore the social message at the heart of each featured story showcased in the new space. 

As well, The Dr. Seuss Experience centre will include a themed carousel, as well as a retail space where visitors can purchase Dr. Seuss-related merchandise. Tickets for Square One’s experience centre go on sale on September 13th and advance ticket registration opened this week.

Mississauga will be the first of several markets in North America for the traveling Dr. Seuss Experience. The company says that it will also launch similar concepts next year in Seattle, Boston and Houston.

CLICK IMAGE FOR INTERACTIVE GOOGLE MAP

The Dr. Seuss Experience is being used to drive traffic to the Square One District, which includes the massive enclosed Square One shopping centre as well as surrounding buildings. Landlord Oxford Properties owns about 130 acres in the Square One District, which is expected to eventually see redevelopment as Square One transforms as an integral component to downtown Mississauga.

Given the strong brand awareness of the Dr. Seuss brand, visitors from the Greater Toronto Area and beyond are expected to come to the new activation. Oxford Properties has been adding attractions and other non-traditional retail uses to the centre with great success. Sources confirm that the landlord will also roll-out other entertainment centres in at least two of its properties, with details to follow.  

In the spring of 2019, Square One unveiled a food hall called ‘The Food District’, which has proven to be a success by driving foot traffic to the centre while bringing in visitors from a wider trade area. In the spring, as well, Cineplex concept ‘The Rec Room’ opened across from the Food District, both in a space once occupied by Target and in years prior, an Eaton’s department store. Japanese fashion retailer Uniqlo and ‘cultural department store’ Indigo also occupy the same former Target space.

In an earlier interview, Square One’s Greg Taylor explained how Square One saw increased foot traffic after the opening of the Food District as well as The Rec Room. At the same time, sales in the mall’s upgraded food court and full-service restaurants also saw impressive increases after both opened in the spring. The Dr. Seuss experience will become yet another attraction for the Square One District, which also features Cineplex-owned entertainment and amusement concept Playdium in a freestanding building across from The Dr. Seuss experience.

The building at 199 Rathburn, itself, was once home to retailer Solutions and prior to that a combined Sport Chek and Atmosphere retail storefront. In the fall of 2015, Sport Chek relocated into a massive 73,300 square foot space within Square One that was once a Sears anchor — Quebec City-based La Maison Simons occupies the rest of the former Sears space.

‘SOUTH EXPANSION’ AT SQUARE ONE IN MISSISSAUGA. PHOTO: OXFORD PROPERTIES

Square One is one of Canada’s largest, busiest and most productive shopping centres. That’s according to the Retail Council of Canada Shopping Centre Study, which will be releasing updated numbers this fall (with details to follow). The Square One shopping centre itself sees about 23 million annual visitors in a centre that spans more than 2 million square feet of retail space, with sales per square foot for non-anchor reporting tenants in excess of $1,100 annually. The centre is one of only a handful in Canada to boast annual retail sales in excess of $1 billion.

Square One is the only major shopping centre in North America to feature a Walmart store in the same mall as a luxury department store. Holt Renfrew, which opened an impressive flagship store at Square One in the summer of 2016, is at the opposite end of the mall from Walmart, which operates one of its top-selling stores at the centre. The only La Maison Simons store in southern Ontario is located at Square One, featuring a wide range of fashion brands from reasonably priced private-label designs to luxury brands such as Balmain. Square One also features a wide range of retailers from the affordable to luxury brands such as Salvatore Ferragamo and Rolex. In all, Square One boasts about 350 retailers and 8,700 parking stalls, and even includes valet parking to attract monied shoppers.

Shopping centre landlords across Canada are adding entertainment to diversify offerings and attract consumers. Oxford Properties and other landlords have invested billions of dollars over the past decade to upgrade shopping centre properties, which has led to a polarization where the top malls continue to see success. In years to come, we will see more entertainment-focused additions to shopping centres in Canadian markets. This fall, for example, the Vaughan Mills in suburban Toronto will launch the world’s first Cirque du Soleil ‘creative centre’, which is expected to further increase traffic to that centre.

How Canadian Retailers Can Utilize Mobile & Social Channels to Boost Footfall and Revenue

Yonge Dundas Square

By Sean Keith

In today’s highly competitive retail landscape, particularly in Canada, marketing “in the now” can boost much needed store visits and sales. The key to this approach is delivering timely, relevant and compelling marketing communications via mobile and social channels. The result? Real-time customer connections and digital engagement. Is your operation equipped for this? Do you know your customers well enough – or have the right customer data – to interact with them in a personalized way? 

Sending the right offer at the right time and place is crucial, according to our recent study, called the Digital Imperative, which surveyed 4,000 consumers across the US, UK, Australia and Canada. Survey results showed that, for 44 percent of consumers, timeliness is important to whether they use a promotion, and 33 percent compared prices and availability of products through their mobile device while out shopping. 

The study also showed that while consumers increasingly use digital channels to browse and research products, the majority (69 percent) still complete their purchases in a physical store. That’s great news for retailers. It also highlights the huge opportunity for retailers using mobile and social channels to enhance their customer’s ‘traditional’ physical shopping experience.  

Use mobile and social to boost sales. If you’re a retailer, here are three ways to leverage mobile and social channels for marketing “in the now” that can help increase foot traffic and sales. 

Avoid your stores becoming a digital “black hole”. Google recently noted a 150 percent jump in “near me” searches because consumers increasingly use “near me” searches not only to find a place, but to find what they need. Any retailer or its products could show up in a relevant “near me” search. However, once the consumer is inside the store, the retailer’s ability to connect with that shopper all but stops. Most retailers have patchy Wi-Fi or mobile data connections or don’t offer secure public wireless network access at all. This is the equivalent of the physical sales space being a digital “black hole”. Imagine if you could help your customer find the correct aisle or shelf for what he or she needs, using their mobile device? Or send them a timely discount or offer before they leave the store, so they actually stay a bit longer and spend more or make a return visit? With the right digital marketing management and delivery platform, you can.  

Use DIAL as the basis for your marketing efforts. Almost all consumers surveyed (94 percent) in the Eagle Eye study said the relevance of an offer is important in their decision to use it. But how do you know what’s “relevant” to a particular customer? At Eagle Eye, we promote the DIAL approach (i.e. Data, leading to Insight, driving Action to promote Loyalty). Digital interactions via email, social media and mobile apps, among other delivery methods, can provide you with valuable customer data to draw meaningful insights about their preferences and behaviours. Tie this data to sales in-store and online and use the resulting insights to drive your marketing activities and offers (action), which can serve as the foundation for boosting not only sales, but customer loyalty too. 

Gain a single customer view. Managing different channels and all the data they generate can be overwhelming. It’s important to bring all customer-related data sources together in one place to get a single customer view and cross-reference customer identities and preferences with sales and data from external sources, such as store location, time of day, etc. This is where a robust digital marketing solution can make all the difference in a retailer’s ability to fully understand customer’s preferences and behaviours and manage improved future interactions and outcomes. 

Mobile and social channels offer abundant opportunities for brick-and-mortar retailers who are willing to add a digital layer to their marketing efforts, to support every phase of the shopping journey. Being able to personalize customer communications in real time using the right digital marketing platform enables retailers to DIAL up their customer acquisition and retention strategy and win with consumers in today’s digitally enabled and data-driven competitive environment. 

Read more about the impact of creating digital connections on the customer shopping journey. Get a copy of our report, The Digital Imperative: Harnessing the Power of ‘Now’ with Performance-driven Marketing

Sean Keith

Sean Keith is the Director of New Business Development at Eagle Eye, a leading SaaS technology company that enables businesses to create real-time connections with their customers through digital and mobile promotion solutions. Recognized by the World Economic Forum as a Global Shaper, Sean helps brands in the retail, food & beverage and hospitality industries implement digital transformation initiatives to better understand customer behaviors and drive revenue growth among Canadian businesses.

Canadian Online Dress Brand ‘Park + Fifth’ Expands Offerings and Grows Physical Retail Storefronts

PHOTO: PARK + FIFTH VIA FACEBOOK

Vancouver-based bridesmaid and social attire brand Park + Fifth has expanded in the Canadian bridal industry market with its roots as an online made-to-order business.

Today, owners Brooke Johansen, Zoe Tisshaw and Jenny Wright-Harper have grown to be an off-the-rack retailer with stores in three provinces across Canada.

The business began more than three years ago.

“We are dress company focusing at the beginning on bridesmaid dresses. We really saw a gap in the market for trendy, well-fitting, well-priced bridesmaid dresses. So that’s what we started the brand with,” said Johansen. “And it’s still our bread and butter today. But now we have a whole social occasion section. So dresses for anything like weddings, barbecues, any type of event.

PARK + FIFTH’S VANCOUVER FLAGSHIP PHOTO: PARK + FIFTH VIA FACEBOOK

“A lot of white collection which we really focus for brides for anything white all year round which is actually pretty tricky to find. So things for engagement parties, bachelorettes, bridal showers, rehearsal dinners. All those kinds of events that go along with weddings. And we just launched our very first full bridal line. We did that because there was a huge gap in the market for really well priced bridal dresses. Our bridal dresses are $500 to $1,300 and we’re able to keep these prices so low because we don’t wholesale anywhere. We just sell directly to our customers through our retail stores.”

Tisshaw said the name of the business came from the inspiration of New York fashion and street names in New York – the mecca of fashion.

“I grew up sewing dresses and I always made people dresses – for my friends,” she said, adding that she made bridal dresses for friends who were looking for something a bit more modern.

That’s where the idea initially was born for Park + Fifth as she saw the great need for a modern, rewearable bridesmaid dress to be out there in the world.

Johansen’s background is a business degree from Simon Fraser University in British Columbia. She met Tisshaw at retailer Kit and Ace working in the product management department – allocations and buying. And from there the idea for Park + Fifth was born.

From the online world, the business opened its first bricks and mortar store in Vancouver then followed with a store in Toronto and in Calgary. The Calgary store is located within the Lovenote Bride store.

“Right now we’re really focusing on the three stores that we have. Toronto and Vancouver are studio space stores. So they’re second level. They’re by appointment only for the most part and we really want to focus on it getting full retail street front stores in our three retail locations before we move anywhere else,” said Johansen.

Tisshaw said the company’s product is designed, developed and manufactured within the company.

PHOTO: PARK + FIFTH VIA FACEBOOK

By starting as a made-to-order business, Park + Fifth’s owners were able to really understand the market and consumer demand before each wedding season started. They quickly gained recognition and popularity for their line of rewearable and “Instagramable” dresses with their Un-Bridesmaid collection. They saw a gap in the market for affordable bridesmaid dresses women actually wanted to wear – and would wear again.

But in order to grow as a business it recognized the importance of being a physical retailer and re-launched in 2018.

A key to its success is selling directly to customers with no wholesale markups and customers can go home with the dress they choose the day-of purchase, something rare with other bridal brands.

The recently launched first wedding dress collection is available on a made-to-order basis. The bridal collection is available in Vancouver, Calgary and Toronto stores as well as online.

Experience vs Education: What Makes a Successful Retail Leader in Canada?

By Mina Ely

We all strive to establish longevity within our careers. This involves the ability to reinvent yourself, and foresee possible obstacles within your field by arming yourself with the tools to tackle them. How do we do this? We educate ourselves. The more knowledge you possess the more power you hold. The question lies, however, in where to source this knowledge? Does the answer lie in third-level education? Or, perhaps, in work experience?

I have spent the past twenty years in the fashion industry, as a leader and motivator. This question became prevalent in my life when I decided to divert my career path. I weighed up the pros and cons of going back to university, and I thought long and hard about my experience to date, what it has taught me and how well equipped I am today because of it. The question of educational value versus experiential value when it comes to attaining an executive position is age old, and perhaps one that will never fully be answered. This is my understanding of the dichotomy from my experience of the retail industry.

Education vs Experience

Looking at the many executives that exist within my world of fashion retail, I see that a large majority of them hold postgraduate levels of education. However, on discussing this topic with the few I have the pleasure of knowing, I came to realize that the general consensus rests on the idea that experience is what propelled these executives to the positions they currently hold. Yes, their education allowed them to enter the workforce with an elevated status, but it was their experience that secured the senior positions.

I sat with this information for a while. I took my time defining what attributes I believe are needed to make a good leader based on my twenty years in the industry. I wondered if said attributes are acquired through education or experience, or both. This is what I settled on.

I’ve learned over the years that the best leaders are those with experience on the sales floor. I like to compare the sales floor to a battlefield, with the sales associates being the army. Without knowledge of the front line, a leader cannot effectively advise their subordinates on how best to deal with the conflict that may arise on the battlefield.

In saying that, education is undoubtedly important. It provides you with a vast knowledge and clear understanding of the field you have studied and wish to forge a career in. Education is a privilege and an asset in all facets of life. The issue arises, however, when someone is lacking in the practical experience needed to navigate the often erratic nature of a sales floor.

A successful leader needs to be well rounded and have experience in all aspects of the business. A successful leader also understands that without a diverse group of people working alongside them, their ideas will not come to fruition. This brings me to my next point: a leader needs to understand the kinds of people necessary to build their army. I like to refer to these people as the Minder, the Finder, and the Grinder.

The Minder The minder is the leader. They are well versed on how to methodologically approach each situation, whether that be on the sales floor or back of house. Their strengths lie in the application of logic and rationale. They are often on the introverted side of the spectrum and more in their own head, existing behind the scenes, so to speak. This enables them to keep an eye on more than one person at once, with time and energy to assist each member of the team and assure that the army is moving in the right direction. They are able to cultivate, train, and fine tune talent.

The Finder The finder is the hunter. They seek out new opportunities and initiatives. They focus on sourcing new talent for the workplace and acquiring new clients for the organization. They are personable, outgoing, and adept at recognizing opportunities. They are often the outsourcer, the “work smarter, not harder” kind of individuals. They have the ability to turn customers into repeat clients.

The Grinder The grinder is the labourer. They will work tirelessly until the project is complete. They are often the perfectionists in the group. You can almost assure that any project they do, or task they complete will be done correctly and to the best of their ability. They are the hustlers and will work to ensure longevity within the company.

How to become a successful leader

While reading those descriptions did you think to yourself “this one suits me” or “I have aspects of all three”? The most successful leaders may not need an MBA, but they do need to be able to do two things. First, they need to have aspects of those three characteristics. Second, they need to be able to recognize those three characteristics in other people.

This is not to say that you cannot excel in an executive level position without holding all three. If you are able to understand and appreciate these three characteristics, you will likely be able to implement aspects of each into your own life, while also ensuring you surround yourself with people who are competent in the areas you are less confident in. Understanding these characteristics will allow you to further understand your team and how to deliberately place people into appropriate work spaces. This will assure your team is working in harmony and talent is placed where it is most useful.

Trust as a leader

I recently read an article by Jenna Goudreau in Business Insider about Harvard Business School professor, Amy Cuddy. Cuddy, along with many other psychologists, believes that people ask themselves two questions when they meet someone new, “can I trust this person?” and “can I respect this person?”. Cuddy states that someone who embodies trust and respect in turn represents both warmth and competence. As a leader, it is important to cultivate these characteristics and ensure inclusion of them in how you lead.

Competence is highly valued in both a leader and a sales representative. For a sales associate, it is important for the consumer to know that the person they are talking to is knowledgeable and passionate about the product. As a leader, your team will be reluctant to follow you if they believe they know more than you about the topic you are trying to instruct them on.

A large part of being a successful leader involves the building of trust and likability. The most likeable people are the ones that we respect and trust. Competence and respect tend to go hand in hand as well as trust and respect. Leading with kindness and likability but also structure and direction is the recipe for creating a great leader.

Vulnerability as a leader

Dr. Brené Brown is a research professor at the University of Houston. Brown has spent the last twelve years studying vulnerability, courage, and shame. Brown’s theory is that when you shut down vulnerability, you shut down opportunity. Brown believes that the ideology behind vulnerability representing weakness is where shame comes into play. When we’re filled by the fear of what others think, it’s almost impossible to be authentic.

A powerful leader is someone who is not afraid to be vulnerable. They are not afraid to take risks or show weakness in order to empower someone else. Weakness makes people relatable, most of us have a hard time trusting those who are seemingly perfect. Vulnerability is lead by example.

A good example of vulnerability in leadership is the example of a wolf pack. In a wolf pack, the alpha dog organizes his army to walk in a very specific way. The leader, or alpha, will walk at the back of the pack. In front of him, come the stronger dogs, ready for battle. In front of those come the young, who are agile but perhaps not yet as strong. Leading the pack are the sick and elderly wolves. The dogs typically walk in a “V” formation with the Alpha dog bringing up the rear at the point of the “V”.

The back of the pack is the most vulnerable position so the Alpha will put himself there to assure that he can watch over his whole army. From there he can see potential danger. As the strongest dog, he is responsible for watching his own back while also watching over those on the frontline.

The alpha wolf is a strategist; he knows how to position his team to ensure they are competent. He will warn his team as to when they need to be on edge or ready to attack and put himself at risk in order to do so. Similar to a leader in the human world, the Alpha dog has appropriately placed the minder, the finder and the grinder to form the most successful team. By making himself vulnerable, he is allowing his team to prosper.

These skills cannot be taught in the classroom, but have to be learned through experience and human interaction.

I believe that holding a postgraduate degree will provide you with certain advantages and a strong minder personality. However, I do not believe it to be a necessary element in becoming a successful, motivating leader within the retail world. Holding an MBA is not a surefire way of becoming a respected and innovative principal. There are many attributes required that cannot be taught in school. To prosper in an executive position you need to embrace change, have the ability to admit when you don’t know something, and always be open to learning, both on the field and in the books. You should be able to recognize peoples’ personality types, appreciate the importance of each, and allow yourself and others room to be vulnerable and flawed. After all, as Brené Brown says, “vulnerability sounds like truth and feels like courage.”

Mina Ely

With twenty years in the luxury retail industry, Mina Ely has a broad understanding of the retail and fashion world. As a Luxury Retail Sales Specialist, Retail Strategist and Luxury Wardrobe Consultant, Mina provides a wide range of services to her portfolio of executive clients. Mina firmly believes that retails core values stem from the overall experience of the consumer and her goal is to ensure that the clients expectations are exceeded every time. Mina brings expertise that span the width of the business. Giving back to the community is important to Mina so she is passionate about partnering with charity organizations and hosting private events with the theme of “Fashion Cares for a Cause” in mind.

101: Inaugural Podcast on WEM, Decathlon, Balenciaga

Podcast WEM, Decathlon, Balenciaga

This week Craig and Lee talk about West Edmonton Mall, Decathlon and Balenciaga.

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Sporting Goods Retailer ‘Decathlon’ Launches Rapid Cross-Canada Superstore Expansion [Feature]

PHOTO: DECATHLON VIA FACEBOOK

French sporting goods retailer Decathlon, the largest one in the world, has its sights set on expanding across Canada in the near future, bringing its unique experiential customer focus to more Canadian cities.

Rob French, Chief of Digital Commerce & Communication with Decathlon Canada, said the company, which opened its first store in Lille, France in 1976, has a goal to make sports accessible to everyone.

“It’s very much for sports people who are just getting started or want to try different sports or want to test them. We’ll have families with children who may not be able to afford the more expensive brands out there . . . so we provide the best possible price, the lowest price possible, for those people,” he says.

Internationally, it has more than 1,500 stores in 51 countries.

The Canadian operations are based in Montreal. The first retail location was established in Brossard in the Greater Montreal Area in April 2018. It also opened a store in Boisbriand which is near Laval in April of this year.

Retail brokerage and consultancy Oberfeld Snowcap is leading Decathlon’s expansion in Canada under the direction of Sylvain Charron, Robert Weinberg and Darren Quayle.

French described the Canadian market as “healthy” with three more stores opening this year. In September, stores are planned to open in Ottawa and in Sainte-Foy, Quebec. A third one is slated for downtown Montreal in the Eaton Centre “which is quite ambitious”.

French said the company has plans for a number of other stores in Canada with plans to be in Toronto and Halifax as well. The western market is also on the company radar with Calgary and Vancouver key markets for expansion. The company wants to roll out its unique retail brand in the English community and over the next year it will be doing some heavy brand awareness to support that growth.

PHOTO: DECATHLON BOISBRIAND VIA FACEBOOK

Plans are also to open the company’s ecommerce business in Canada this year. The company will start slowly by making sure it is optimizing its warehouse and speed of delivery for customers. So satisfaction of first impression is the company’s first key performance indicator as it will be focusing on delivering products to homes in Montreal, Brossard and the Quebec and Ottawa area.

Then slowly but surely it will expand across all of Ontario and Quebec and perhaps across Canada toward the end of the year or the beginning of next year.

“These are experience stores. When you come in to a typical store you may find that it is arranged by brand . . . or it’s arranged by a specific category of sports whether it be camping or hiking. And we’ve done that approach where you come in and you have the different ranges of sports available,” said French. “We have over 400 different sports that we have access to and depending on the city or even the location of that store the sports that are chosen are based on the people of that area and the interest. The research is done prior to opening the store.

“People come in and they can actually try the sports. You can bicycle around the store. You can take a product away for a couple of days and try it out. There’s even rock climbing within the store. We have a stadium at the back of most of our stores where people can actually try volleyball, basketball, badminton. There’s various other testing areas and these really are to just get everybody an opportunity to try out the product. We’d rather people try it rather than buy it first. It’s really a place for people to come and stay. The average time people stay is approximately 45 minutes or more. Upwards of more than an hour.”

PHOTO: DECATHLON BOISBRIAND VIA FACEBOOK

The stores also have a cafe to give people a place to sit and maybe decide on what they want or collaborate with Decathlon staff.

Another key initiative for Decathlon is connecting with the community as it has launched its community app where people can find new activities and places for sports for people. They can access coaches, events and venues.

French said Decathlon resonates with Canadian consumers on a number of different levels.

“Currently in Canada there is no lower price option on the market. There’s not much accessibility to try and experience sports before buying,” he said. “I think the biggest part of what’s putting us on the map in Canada is how we are community driven. We’re really involved in the community through environment, through sports places where people will play . . . We really want to connect people through our platform of our technology which we know will help us in the future through retail of product.

“We are very open as a company. We want to make sure that we are recognized across Canada as a Canadian company. We are hiring talent, localized people both English and French to help us there. We care very much about the people that work for us. And we also learn from other countries.”

Canadian Retail Sales Growth Weakens Again: Expert

After a year of unrelenting declines, Canadian retail sales growth may have finally hit bottom. But it’s too early to tell when things will perk up. Here’s my updated analysis.

The latest numbers from Statistics Canada show that overall retail sales growth in Q2 2019 was just 1.5% year-over-year on a not seasonally adjusted basis. This was even lower than the dismal 1.8% increase for Q1 of the year, although both are slightly ahead of the 1.3% gain recorded for Q4 2018. All these low growth rates are less than price inflation plus population growth and should not be sustainable, but you never know.

The 3 month sales growth trend (orange line in the chart above) and the underlying 12 month trend (green line) showed some recovery earlier in the year, but this has turned out to be a red herring. Both trends are now weakening and there doesn’t appear to be much cause for optimism moving forward. Automotive & Related is the main drag on total retail sales, but other retail sectors are not picking up the slack either.

After 6 months of 2019, total Canadian location-based retail sales are up just 1.6% year-to-date versus a year ago. This is even lower than the 2.9% annual gain recorded for 2018.

Food & Drug

The Food & Drug sector’s retail sales were up a modest 2.0% year-over-year in Q2 2019. This was significantly lower than the 3.5% increase recorded for Q1 of the year.

The 3 month trend (orange line in the chart) has taken somewhat of a dive recently. The underlying 12 month trend (green line) improved modestly at the start of the year but now appears to be dropping off.

These results are due to the main store types in this sector simply failing to post better numbers. Supermarkets & other grocery stores’ sales were up 2.0% in Q2, but this was less than half of their 4.7% gain in Q1. Health and personal care stores gained just 1.5% in Q2, down from a 2.3% increase in Q1 of the year.

The highest Q2 gain was by the small specialty food stores group, up 4.1%, and not nearly enough to offset low growth in other areas of Food & Drug.

Store Merchandise

Store Merchandise has held up slightly better than the other major retail sectors. In Q2 2019, retail sales were up 2.5% year-over-year, up moderately from a 2.0% gain in Q1.

The 3 month trend (orange line in the chart) appears to have improved compared to some of the low growth rates seen at the end of last year. The underlying 12 month trend (green line) seems to be steadying after its precipitous plunge in 2018. There’s hope yet in Store Merchandise.

A few store types had a particularly solid Q2. Furniture stores’ retail sales gained 5.8% year-over-year in the quarter, while general merchandise stores were up 4.9%. Miscellaneous store retailers gained a robust 9.8%, mostly due to the addition of new cannabis stores (this effect will be in place until at least the end of 2019 when year-over-year comparisons catch up).

On the other hand, retail sales at electronics & appliance stores continued to languish, down 9.2% year-over-year in Q2 2019. Shoe stores’ sales also declined, down 3.0% in the quarter.

Note that Statistics Canada is now suppressing the breakdown of general merchandise stores for confidentiality reasons. The figures in the “By The Numbers” table below are estimates based on previous trends.

Automotive & Related

The Automotive & Related sector seemed to be climbing out of a hole at the start of the year, but then took a beating in Q2 2019. Year-over-year retail sales were up a very slim 0.3% in the quarter

New car dealers gained just 0.8% in retail sales on a year-over-year basis in Q2 2019. This was worse than their modest 2.7% Q1 increase. Specialty used car dealers did much better with a 10.1% gain in Q2, but other motor vehicle (mostly recreational) dealers saw their sales decline 0.6%.

Gasoline station retail sales however are the most responsible for the latest plunge in Automotive & Related. Their sales were down 2.9% year-over-year in Q2 as gas prices continue to remain moderate.

By The Numbers

Special Note: Statistics Canada revised historical data with the February 2019 release. Unadjusted monthly data were revised back to January 2018, while seasonally adjusted data were revised back to January 2015. Those keeping score should update their files. The analysis in this report is always based on unadjusted data.

For definitions of store types, see Statistics Canada NAICS.

Canadian E-Commerce Sales

StatsCan started providing ecommerce retail sales data in January 2016. While the amount of data is limited, some trends appear to be emerging. Here are some results.

Overall, e-commerce represented about 3.2% of total Canadian retail sales for the 12 months ending June 2019, including both pure play operators as well as the online operations of brick & mortar stores. Canadian consumers however also buy online from foreign websites which is not captured in these numbers.

Canadian e-commerce sales were up 24.0% year-over-year for Q2 2019. This was much higher than for location based retail which gained 1.5%.

Note that location based retail is the same as that in the preceding large “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. For the 12 months ending June 2019, electronic shopping and mail-order houses had an estimated $12.1 billion in e-commerce sales.

But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the 12 months ending June 2019, this group had an estimated $7.6 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $19.8 billion in e-commerce sales by Canadian operators over the year. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian operations.

For electronic shopping and mail-order houses, an estimated 85.5% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that just 1.3% of their total sales are attributable to e-commerce.

In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 61.3% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 38.7%.

For more explanation on the e-commerce numbers, see Statistics Canada: Retail E-commerce in Canada.

This analysis is updated monthly as new numbers are published by Statistics Canada. If you would like notification of when an update becomes available (and you’ve read this far), please connect with Ed Strapagiel on LinkedIn.

Inside L.L. Bean’s 1st Canadian Store which Opened to Crowds [Photos]

LL Bean PHOTO: GEORGE PIMENTEL

U.S.-based outdoor specialty retailer L.L.Bean has unveiled its first Canadian storefront, and it saw lineups of excited shoppers on its opening day last week.

Canadian distributer The Jaytex Group says that it could open as many as 20 L.L. Bean stores in Canada in the coming years. L.L. Bean has also partnered with retailer Hudson’s Bay to operate L.L. Bean branded shop-in-stores, with more than 50 of them either open or in the process of being merchandised. L.L. Bean is also currently distributed in Sporting Life, and MEC stores, while also operating a new a direct-to-consumer e-commerce site as L.L. Bean blitzes the market ahead of the busy fall shopping season.

L.L. Bean’s first Canadian store is located at Oakville Place in Oakville, which is an affluent community located between Hamilton and Toronto. The L.L. Bean store spans just over 14,000 square feet in a retail space formerly occupied by upscale Toronto-based grocery chain Pusateri’s Fine Foods. The popular ‘Bootmobile’ was on hand to greet the store’s guests at the grand opening.

PHOTO: GEORGE PIMENTEL

The L.L.Bean lease deal at Oakville Place was negotiated by brokerage Oberfeld Snowcap under the direction of Andrew Laudenbach. Oberfeld Snowcap represents L.L.Bean in Canada for its expansion.

The Oakville Place store features branded hunter green signage both on its rounded curved exterior, as well as from its interior mall entrance. Flooring is of light wood that contrasts with dark fixtures and wood slat ceilings. The space appears modern yet ‘outdoorsy’ as per the photos supplied for this article by George Pimentel.

L.L.Bean partnered with Toronto-based distributor The Jaytex Group on the Canadian expansion, including L.L.Bean’s current wholesale distribution as well as a retail expansion. Privately-owned Jaytex Group was founded in 1978 and features a portfolio of private label and lifestyle brands licensed in Canada. 

Howie Kastner, President of Jaytex Group, told Retail Insider that the company plans to have shop-in-shop L.L.Bean stores in every Canadian Hudson’s Bay location by next spring and will expand to about 20 standalone stores in the country within 10 years.

Mr. Kastner explained that Jaytex had worked out a deal with Hudson’s Bay where the best of L.L.Bean products in all categories would be sold in self-contained branded shops ranging from 300 square feet up to 2,000 square feet. Recent social media posts from J2 Merchandising have showcased some of these displays.

“The Hudson’s Bay locations that we’re rolling out this fall will cover the top 57 stores from coast to coast right from the flagships in Toronto, Calgary, Montreal and Vancouver down to mid-size and smaller stores,” he said. The brand is also now available on thebay.com.

PHOTO: GEORGE PIMENTEL
PHOTO: GEORGE PIMENTEL

Mr. Kastner told Retail Insider journalist Mario Toneguzzi, “Ultimately our plan is to get to 20 standalone stores within a 10-year period and it’s really all going to depend on getting the right locations, the right deals, and the right space. We’re going to focus on Ontario first by opening four or five stores, and then start to branch out across the country. We have the postal code data from L.L.Bean from their online and catalogue business. We know where the L.L.Bean customer is.”

“We’ve historically had an active and loyal customer base in Canada,” said Steve Smith, President and CEO of L.L.Bean. “Developing a true omnichannel presence that includes a wholesale component, as well as new brick and mortar retail stores and a dedicated Canadian website will give our Canadian customers a better overall L.L.Bean experience and make it much easier to shop in the channel that’s most conducive for them.”

Family-run L.L.Bean was founded by Leon Leonwood Bean in 1911 when he developed the brand’s flagship product, the Maine Hunting Shoe, which combines rubber bottoms with leather uppers to ensure one’s feet remained dry while hunting. L.L.Bean was officially founded in 1912 and has been in business for nearly 107 years. 

The company’s original Maine flagship complex has been open since 1917, spanning 220,000 square feet and is open 24 hours a day, 365 days a year.  The motivation behind L.L.Bean’s always-on hours was to accommodate visiting sportsmen who would drive all night and wanted an early start the following day. The store has been open continuously since 1951.

L.L.Bean also operates 41 locations across the United States as well as 10 outlet stores. L.L.Bean opened its first international location in Tokyo, Japan in 1992 and manages 28 stores and outlets in that market. The outdoor retailer hosts special events like clinics and demonstrations in all of their stores throughout the year.

About 75% of L.L.Bean’s manufacturing is overseas, much of it in China. The company’s signature boots and other products are still manufactured in the United States, however, producing about 600,000 pairs of boots annually at its factories in Maine. 

PHOTO: GEORGE PIMENTEL

L.L.Bean’s retail outlets feature education programs and activities where customers can sign up to participate in various outdoor activities such as archery, clay shooting, fly casting and sea kayaking, with all equipment and instruction provided.

Oakville Place is managed by landlord RioCan. The enclosed shopping centre spans more than 460,000 square feet with almost 2,300 parking spaces. The population within 10 kilometres of the centre is in excess of 335,000 people boasting an average household income of nearly $150,000, according to RioCan marketing materials, with a median age of 42.

Competitors for L.L.Bean in Canada include retailers like: Bass Pro Shops, Cabela’s, SAIL, and MEC.  It will be interesting to track the Maine retailer’s journey in the Canadian market, especially following reports of combined Bass Pro and Cabela’s stores on the horizon

L.L.Bean is the latest international brand to enter the Canadian market by opening stores. In 2017, Canada saw more than 50 brands open standalone stores or concessions, and last year, we tracked more than 30 entrants. This year is shaping up to be similar as retail becomes more global and brands look to Canada to drive growth.

Luxury Brand ‘Balenciaga’ to Open 1st Standalone Canadian Flagship Amid Expansion

PHOTO: WESTFIELD VALLEY FAIR

Kering-owned French luxury brand Balenciaga will open its first standalone flagship store in Canada towards the end of the year as it expands its presence in this country. Balenciaga is also opening leased concessions in Canada’s Holt Renfrew stores as the brand goes direct-to-consumer, marking a significant trend.  

In December, Balenciaga will open a store encompassing nearly 4,700 square feet at Toronto’s Yorkdale Shopping Centre. The retail space will carry a full range of ready-to-wear fashions from the brand for both men and women, as well as an expansive assortment of bags, accessories and footwear. The store’s design will reflect Balenciaga’s most updated brand aesthetic that is being rolled-out in major markets globally, as well as in the brand’s leased concessions that are being rolled-out in Holt Renfrew stores.

The new Yorkdale Balenciaga will replace a Hugo Boss store that recently relocated to a larger space nearby. Balenciaga will be located directly across from Yorkdale’s Holt Renfrew store, which recently saw the opening of new ‘world of’ boutiques for Gucci and Fendi that both have mall-facing entrances and, soon, a ‘world of’ Dior will join them. Immediately beside Balenciaga are Canada’s first standalone flagship stores for Bottega Veneta and Valentino, which both opened recently and were featured in Retail Insider. A Ted Baker boutique is currently located on the other side of the new Balenciaga, with Baker set to relocate this fall to a new space nearby that will be nearly double the size. A well-known luxury brand will soon be announced for the current Ted Baker space.

Balenciaga will be located in Yorkdale’s 2012 expansion wing that saw the addition of new retail locations for brands including Apple, Microsoft, Tesla, Longchamp, John Varvatos, Stuart Weitzman, Club Monaco, and others. In 2012, Holt Renfrew also grew its presence at Yorkdale when it expanded from about 65,000 square feet to about 120,000 square feet. Landlord Oxford Properties is positioning the 2012 expansion wing as a new luxury corridor to complement Holt Renfrew’s latest expansion as well as the addition of some of the world’s biggest fashion names, many of which do not operate stores anywhere else in Canada.

CLICK IMAGE FOR INTERACTIVE YORKDALE MALL MAP
CONSTRUCTION HOARDING AT TORONTO’S YORKDALE SHOPPING CENTRE. PHOTO: CRAIG PATTERSON/RETAIL INSIDER

This has been an important year for Balenciaga in Canada. The brand opened its first ‘world of’ leased concession at Holt Renfrew’s highly productive Vancouver flagship in late 2018. Located in the main accessories hall on the street level of the CF Pacific Centre Holt Renfrew, the open concept Balenciaga boutique features the brand’s range of clothing for men and women as well as footwear, bags and accessories.

In Toronto last week, as well, Balenciaga opened a ‘world of’ leased concession at Holt Renfrew’s 50 Bloor Street West flagship store that also carries all categories for the brand. The boutique occupies a large space in excess of 2,000 square feet in part of the store’s overhauled main level. Renovations to Holts’ Bloor Street flagship are ongoing and will be completed in the spring of 2020.

‘WORLD OF’ BALENCIAGA CONCESSION AT HOLT RENFREW IN VANCOUVER. PHOTO: HELEN SIWAK

In Montreal, Holt Renfrew Ogilvy recently unveiled a 40,000 square foot men’s floor that includes a Balenciaga concession, with new accessory and women’s boutiques to follow. Holt Renfrew has adopted a concession model where luxury brands operate direct-to-consumer shop-in-stores with Holts acting as a landlord while taking a cut of sales. It’s a model seen more in other parts of the world like Asia and Europe. Holt Renfrew’s sister retailers Selfridges in the UK and de Bijenkorf in the Netherlands also feature similar leased departments for such brands, for example.

Balenciaga can also be found in other high-end retailers in Canada, though distribution is via wholesale. Saks Fifth Avenue’s flagship at CF Toronto Eaton Centre includes a women’s Balenciaga ready-to-wear boutique on its third level, as well as a selection of men’s fashions on its second level and a collection of bags and accessories on its street level. Both Saks and Nordstrom also carry a range of Balenciaga shoes, bags and accessories. Nordstrom’s Vancouver flagship at CF Pacific Centre, which is said to be the top performing unit in the chain, includes a Nordstrom-operated Balenciaga shop-in-store for accessories on its main level, as well as a women’s ready-to-wear boutique upstairs. Balenciaga can also be found in selected high-end retailers in Canada such as SSENSE in Montreal.

Balenciaga is said to be looking to possibly open more corporately owned standalone units in Canada. Sources say that Balenciaga has been looking at opening a flagship store in Toronto’s Bloor-Yorkville area, though no deals have been signed. The Vancouver market is also a target for Balenciaga, given the city’s high-spending brand-focused Asian population. Space for a standalone store may be challenging in Vancouver’s Alberni Street ‘Luxury Zone’, though a developer is said to be considering creating a luxury retail development nearby.

BALENCIAGA’S NEW ‘WORLD OF’ CONCESSION AT HOLT RENFREW, 50 BLOOR ST. W. IN TORONTO. WITH MORE THAN 2,000 SQUARE FEET, THE BOUTIQUE CARRIES CLOTHING FOR MEN AND WOMEN AS WELL AS SHOES, BAGS AND ACCESSORIES. PHOTO: RETAIL INSIDER

In the Vancouver area as well, ‘The Amazing Brentwood’ by co-developers SHAPE and L Catterton are said to be targeting brands including Balenciaga either for a standalone storefront or as a concession within a larger to-be-named host retailer. At the International Council of Shopping Centres conference in Toronto last year, landlord QuadReal showcased a future luxury wing for Oakridge Shopping Centre that included no-name branded storefronts for what appeared to be some of the world’s biggest luxury brands. One had the appearance of what a Balenciaga boutique might look like if it were to locate there.

In Montreal, developer Carbonleo recently began construction on its massive its massive Royalmount project, which will include a luxury retail component that is said to be seeing interest from some of the world’s biggest luxury brands. While Montreal’s luxury retail market isn’t as strong as that of Vancouver and Toronto, the city is home to many wealthy households who may choose to shop locally for high-end goods rather than travel abroad as new high-end retailers expand in the region.

Toronto’s Yorkdale Shopping Centre boasts the highest concentration of luxury brands of any place in Canada, and its roster of big names continues to grow. Sources say that more announcements will be made as Yorkdale also positions another mall corridor for luxury brands that currently includes retailers such as Disney and Fairweather. A recently announced Furla boutique will kick-off that luxury corridor expansion and at least one very big-name luxury brand announcement for the wing is expected to be revealed shortly. 

French multi-national conglomerate Kering owns the Balenciaga brand, as well as other big names that are also expanding into Canada. Spanish fashion designer Cristóbal Balenciaga opened his first storefront in San Sebastián, Spain, in 1917, prior to expanding into Madrid and Barcelona. The Spanish Civil War forced Mr. Balenciaga to move his operations to Paris where he opened a couture house on Avenue George V in 1937. Balenciaga has morphed over the years from a brand known for elegant evening gowns to one featuring a wide range of fashions, including streetwear. Some have criticized the brand for designing ‘ugly sneakers’, for example, with many styles surpassing $1,000 per pair. The fashion world can be fickle and recently, Lyst ranked Balenciaga as the world’s third hottest brand, trailing Gucci at top spot and Off-White in second place. Gucci is also owned by Kering and as sales begin to flatline after phenomenal growth, some are predicting that Balenciaga could rise to the top of Lyst’s list in 2020.