Canadian Retail Thread
 

I thought it might be a good idea to have a thread to post any snippets of retail information that might not necessarily warrant a thread of its own.

Here's an article about Lowe's coming into Canada. They're a big box home improvement chain à la Home Depot or Rona. There are talks of them buying Rona up.
__________________________
Home reno giant Lowe's readies move into Canadian
By MARINA STRAUSS
Thursday, June 2, 2005 Updated at 3:55 AM EDT
From Thursday's Globe and Mail

Retailing and real estate insiders are bracing for the arrival of Lowe's Cos. Inc., a U.S. home improvement powerhouse whose entry into Canada could further shake up an already competitive retail landscape.

Two consultants have been quietly talking to Canadian landlords over the past few weeks, discussing possible deals for superstore sites, and industry sources believe Lowe's, the second-largest U.S. home improvement merchant, is the prospective tenant.

Lowe's could make an announcement about its plans for Canada as early as next week, real estate sources said. A number have been told to expect an announcement on June 6. Lowe's said it does not comment on rumours, but confirmed it has a global growth strategy.

"We have said for a number of years that we are evaluating international opportunities. At some point we will be a global company," said Chris Ahearn, a spokeswoman for Lowe's in Mooresville, N.C.

The chain has been a rival to Home Depot Inc., the world's biggest home improvement retailer, which already operates in Canada.

Lowe's has ridden the wave of women's growing interest in tackling home improvement projects. With annual sales of about $36.5-billion (U.S.) and more than 1,100 stores in the United States, Lowe's courts women by pushing home decor and other related items.

It has designed its mega-outlets in a more inviting manner, with wide aisles and bright lights to ease the stresses of shopping.

In Canada, Rona Inc. of Boucherville, Que., has become a powerful contender to the No. 1 Home Depot also by catering to women's tastes. As well, Rona has grown rapidly in recent years by swallowing rivals.

Now, industry insiders suggest that Lowe's may eventually try to snap up Rona, if it hasn't already attempted such a move.

When Robert Nibock took over as chief executive officer in January, he told analysts that he was interested in international growth.

"Certainly there's a lot of opportunity on the international side, and it's something that we will, over the next year or two, be in the process of assessing," Mr. Nibock said.

Retail consultant John Williams of J.C. Williams Group Ltd., said it may be difficult for Lowe's to establish itself quickly in this country without eventually making a big acquisition.

He pointed to the huge head start of both Rona and Home Depot. "It's a very difficult market," Mr. Williams said. "Rona and Home Depot are so well positioned now . . . They're really duking it out."

Home Depot has 120 superstores here while Rona has 530 outlets of varying sizes.

Sylvain Morrissette, a spokesman for Rona, said he couldn't comment on rumours. But he insisted that Rona has developed a strong strategy to ensure its future.

Rona differs from Home Depot in that it has a wide array of store types, from uber-sized big boxes to small outlets. Lowe's may only be interested in Rona's superstores.

The rumours about Lowe's possible arrival in Canada have created a buzz in the industry. One retailing source said he had heard that Lowe's representatives have tied up as many as a dozen sites for its mega-outlets, and that is has set up a Canadian office. It is expected that the first stores will be in Southern Ontario by next year.

Real estate officials said Michael Goulais and Alan MacKenzie of M. Goulais Consultants in Toronto have been meeting with them to discuss locations for a U.S. retailer entering Canada. "They are producing letters of intent," one official said.

Reached this week, Mr. MacKenzie did not comment on whether he and his partner represent Lowe's and are trying to find store locations for the retailer.

One real estate source said Mr. MacKenzie expressed interest in some of his company's locations, and he is waiting to hear back about offers for the sites.

"We've been told it's an existing American organization that's looking for anywhere from 10 to 15 acres," the source said. "There's not that many, even in the States, American guys that take that size unit. Most of the ones that do take it are already here."

U.S. discounter Target Corp. has also been interested in coming to Canada. But Target CEO Bob Ulrich said last month [May] that it has no immediate plans to expand outside the United States.

Roger Plamondon, regional operations manager for Eastern Canada at Home Depot Canada, said he has heard the rumours about Lowe's but "for us, it's business as usual . . .

"We have been in Canada for 11 years. We are very proud of our performance in Canada. We know the Canadian marketplace very well," Mr. Plamondon said.

Lowdown on Lowe's

In 60 years, Lowe's has grown form a modest collection of North Carolina hardware stores to a megastore chain that rang up $36.5-billion (U.S.) in sales last year.

The big box

Employees: 160,000 (80 per cent of them full-time)

Outlets: 1,100 in 48 U.S. States

Typical store: 117,000 square feet of retail space, selling about 40,000 products

The foundation

Began in the mid-1940s after H. Carl Buchan bought out his brother-in-law James Lowe and rode the postwar boom with a modest chain of hardware/lumber stores. In the 1980s with the rise of do-it-yourself, it evolved into full-fledged building centres.

The design

Make old stores feel like new - spent $500-million (U.S.) last year to upgrade stores and plans to invest $700-million this year.

The big three

Lowe's three-pronged sales strategy:

1-Installations (such as cabinets and decks)

2-Special orders (up to 500,000 items, such as fashion plumbing)

3-Commercial business customers.

The nuts and bolts

Company went public in 1961.

Joined NYSE in 1979 (NYSE: LOW)

Reached billion-dollar-annual-sales mark in 1980.

Over the past 10 years, results have risen steadily - for fiscal 2004, profit reached $2.18-billion on sales of $36.5-billion, 18% better than 2003.

Average customer transaction $63.43 in 2004.

The rivals in Canada

Home Depot, the Atlanta-based chain that entered Canada 11 years ago, has 120 superstores.

Rona, based in Boucherville, Que., has 530 stores of varying sizes.

I wonder whether miketoronto will post in this thread?

It's odd there's no mention of Home Hardware in the article. They're a big player in this country and an ankle biter for Rona.

I guess in terms of sales, Home hardware doesn't come close to Home Depot and Rona's numbers!?!?!

I live not too far from a Canadian Tire, which is next to a Home Depot, which is Next to a Rona. Whenever I need anything, I always visit them in that order. I've got to stop doing that because Canadian Tire and Home Depot constantly disappoint me--they never have what I'm looking for. I need to start going just to Rona.

Rona is awesome.

I live not too far from a Canadian Tire, which is next to a Home Depot, which is Next to a Rona. Wait a minute, do we live in the same town? Its getting to be that I don't have to travel. Everything is the same (I can barely tell the difference between Canada and the States these days).

Rich

I'm tired, hungover, and horny... so fuck it...I'm posting this article.

Stonegate huge retail gamble

Gerry Klein
The StarPhoenix


Wednesday, June 01, 2005

The game, folks, is Saskatoon stud. The pot consists of a $40-million power retail centre, a $10-million to $14-million overpass and -- from those reluctant betters along Eighth Street, Broadway Avenue, in Riversdale and in the downtown -- the potential for retail districts to become as cold and bleak as (horror of horrors) Regina's downtown after hours.

All eyes are now on First Pro Shopping Centres, the developer proposing to turn 41 acres of field and pond south of Circle Drive and east of Clarence Avenue into a regional retail centre called Stonegate, which would be anchored by a Wal-Mart and contain a collection of smaller stores.

Most of the councillors have already shamelessly shown their cards. About half are ready to roll over to the Vancouver developer's desire for a development just a little sweeter than one now in existence in the city's northeast.

Preston Crossing was Saskatoon's first comprehensive big-box retail development. When it was proposed, businesses along Eighth Street, in existing malls, in the downtown and on Broadway expressed fear they would be unable to compete. The council of the day agreed to let Preston go ahead, but insisted the development be phased in, with retail studies done before building continued to be sure there was no damage to the city's existing industry.

Preston Crossing also had strict controls -- set out in a zoning law referred to as a direct control district (DCD3) -- which insisted 63 per cent of the 47-acre plot be big-box stores of at least 100,000 square feet and most of the remainder be stores greater than 10,000 square feet. The developer is now looking to complete Preston Crossing's third stage with those smaller stores.

First Pro initially insisted it wanted to set its own rules, but city hall balked. Councillors sent administrators back to the drawing board, where they came up with a compromise limiting the big box to 50 per cent of the site and allowing First Pro to build nine smaller stores. The return on smaller stores is greater for the developer, and First Pro insisted it needed more small stores in order to pay its $2-million share of a new overpass at Circle and Clarence.

Representatives of the city's vibrant retail sector warned that allowing First Pro to have more small stores would snowball, as Preston Crossing would demand equal treatment, and a third so-called "power centre" development -- this one on a 32-acre, city-owned site on the west side -- would also need small stores to compete.

In fact, when Preston Crossing's third phase is added to First Pro's Stonegate development, the city's west-side site and a new retail expansion planned for University Heights, Saskatoon potentially has 1.3 million square feet of new retail space coming on stream in the next five years -- more than a third of the size of the West Edmonton Mall, a development that dealt a severe blow to that much larger city's downtown.

Saskatoon, unlike the Alberta capital, is going through a period of modest growth at one per cent a year.

So here are First Pro's betting choices: go back to its original position that it alone should determine the rules for development; go with the compromise it reached with city hall for a deal just slightly sweeter than Preston Crossing's; hedge its bets by asking for some smaller stores (that is, seven instead of nine); or take the safe route, ask for the DCD3 zoning deal the city has already agreed to for Preston Crossing and be assured of a successful vote?

As of Tuesday, the die has been cast (pardon the mixed metaphor). First Pro is going for the controversial proposal for nine small stores. It will likely garner support from half of council, and bet the majority won't be swayed by the existing retail representatives, who are now able to lobby relentlessly all month, pointing to the dangers of the West Edmonton Mall and the spectre of Regina's downtown.

The question is will councillors see the big (1.3-million-square-foot) picture or focus on the short-term development? It's an all or nothing gamble. If council votes down its own bylaw, it will have to start over from scratch.

/\ wrong thread, buddy, but...

Does a city of less than 250k need three power centers?

Nope.

I didn't think so.

"I live not too far from a Canadian Tire, which is next to a Home Depot, which is Next to a Rona."


I live not too far from a Rona, Canadian Tire, Rona sandwich

Rona has everything, ever seen their hilarious ads?

loose translation:


"Looking for your husband?"

"WE GOT IT!"


hehehe

^
Never saw those ads. Must be a Quebec thing.

I read somewhere that Rona is actually beating Home Depot in the Canadian market. I would believe it-- they're excellent.

yes they're in french, either on bill boards or on TV.

My views.

Chain retail is really getting boring. I was just in Detroit. And in the mall I was in, I think there was maybe 5 stores in that entire mall that I did not have back home in Canada in the mall near me.

Going to the USA use to be a different experience, seeing the different stores, etc.
Now it is almost all the same as in Canada. Kinda boring if you ask me.

Second. I don't get the obsession with Target. Yes I am obsessed with certain stores when I visit the USA, like Marshall Fields.
But Target. Come on, it looks just like ZELLERS, and sells the same crap we get at home already. They sell cleaning stuff, and cheap clothing. I just don't get the obsession with Target, when it is no different then a WOOLWORTHS or ZELLERS. Just don't get it when people in Toronto make weekend trips to go shop at Target. ITS A ZELLERS WITH A DIFFERENT NAME. My mom agrees with me to about that.

Third. Canadian cities better shape up when it comes to protecting the core city shopping districts. We have come far with protecting and nuturing our downtowns in the face of suburban malls. It would be a shame for our downtowns to lose out now, like that article on Saskatoon, etc.

But really I wish we could ship out some of the American chain stores and nuture home grown chain stores(if we must have chains in every single place). Because the selection now between the USA and Canada is very slim. Soon there will be no need to even go to the USA for a slice of something different.

And the European chains are no better. H&M, MANGO, ZARA. Soon there will be no need to visit Europe. Because all their stores will be in the Eaton Centre anyway. I will admit I have bought pants from ZARA($120.00 buck pants down to $30.00. Had to buy). But still, lets nuture some Canadian stuff for once, again.

Canada use to have such a proud retail history and unique stores. Now that is almost all gone.

Some interesting notes though.

Le Chateau manufactures something like 50% or 60% of their clothing in Canada.

Hudson's Bay Company the oldest corporation in North America, is totally redoing their downtown stores now, to make them more classy and bring them back to the 50's heyday attractions they once were in many of our cities and still are to some extent. So far the renovations at the downtown Toronto store are amazing.

That's all I had to hear.

well if mike's mom says so, it has to be true.

Hahahaha.

What I really want to know is why Target isn't good enough to be CAPITALIZED.

although it is not a widespread phenomenon, there is still a dying breed of travellers out there who actually go to europe for reasons other than their selection of chain stores.

/\ yep....

I would also like to add that Canada doesn't have a great selection of department stores like they do in the US.....Neiman Marcus, Macy's, Nordstroms et al. are stellar department stores, much better than anything in Canada.

Not me--last time I was in France to check out the MONOPRIX stores I had to walk totally around this Louvre thing that was like eight blocks long and was totally blocking my way.

Seriously, though, I've never been to a Target but was always curious to check one out because I've heard so much about the famous designers (Isaac Mizrahi, Michael Graves, Todd Oldham) and that they produce a lot of affordable, cool stylish items, almost like an IKEA. The comparison puzzled me although I haven't set foot in a Zellers for years. Is Zellers that much improved? Or is Target not that great?

Zellers IS Target, Canadian Style.

I wish Target would just get it over with and buy Zellers.

Zellers is owned by Hudsons Bay, isn't it?

Anyways, to answer your question, Holden, Zellers is still crap. The only thing I'd get there are batteries and maybe a prescription if there's an inhouse pharmacy. Sears is a step above, and above that is the Bay but the best was Eatons.

Thanks, Koz; I suspected as much. I'm suspicious of the Target = Zellers (or Woolworths!?) equation. I checked out the Target website and they have lots of cool stuff. What's up, Neilson? Ever been to Zellers or just guessing?

Zellers is part of the HBC empire, along with Home Oufitters and Designer Depot.

I have shopped in Zellers. I bought a litre of motor oil there in 1988 or '89.

CMD UW, those US stores are truly amazing but wasn't that Eaton's last marketing gasp--desperately trying to emulate the upscale US department stores? Failed miserably and was the final nail in the coffin.

^ Aubergine! :)

Yes, in 2002 I went to numerous Zellers locations in the GTA while in town for World Youth Day.

^
Numerous Zellers locations while here for World Youth Day. Are you a conaisseur of discount department stores?

No, it wasn't.

You have to go back to the early 90s to see what was going wrong with Canadian department stores. In the case of Eaton's, they used to kick ass. Then the dip-shit spoiled grandsons decided that certain departments weren't making enough money so they had Eaton's stores go to 75% clothing. SEVENTY-FIVE percent! That's outrageous considering the high volativity of the fasion market.

Then they decided that Canadians didn't want sales and started the whole 'Warehouse Direct' thing. It didn't work. Eaton's was a department store, not a Winners.

Their last push could have done something, but by that time there just wasn't enough money kicking about to help the store.

After Sears took over Eaton's, there was again a chance, but Sears just wasn't interested enough. Plus they relaunched the brand AFTER the holiday season which was idiotic. The Aubergine commercial was brilliant, but unfortunately for most people inbetween Vancouver and Toronto, it didn't really mean much.

What Eaton's should have done is renovate all their stores just as HBC was doing at the time, keep their awesome selection, and make it a destination.

You got that right.:blush:

Jesus, were you being punished for breaking curfew or something?

I like the music in the new Zellers commercials:
"The Littlest Birds" by the the Be Good Tanyas.
"When The Night Feels My Song" by the Bedouin Sound Clash
So they're trying to improve their image. Maybe they should start with the crap they sell. Har!

Rendar, you are correct, especially about the grandson's incompetence. But there was probably nothing anybody could have done to ward off the Wal*Mart tsunami. But I'm certain they were trying to take it more "upscale" by ditching the small goods and focussing on the fashion/home furnishings core.

The fact we disagree is a good example of their muddled marketing.

I have a thesis that I dug up from the UofT that was on the fall of Eaton's, but I'm not sure where it is. It was a very interesting read.

Eatons made some bad choices which helped lead to it's falling as a retail empire.

EATONS expanded way to much. And sadly one of their moves that helped their downfall was their pride in downtowns.
EATONS opened department stores in downtowns of many small cities, that just could not support department stores anymore. Ontop of that they built mini Eaton Centres in these small cities. And that lead to massive loss of money as these malls just could not compete.

Eaton Centre worked in Toronto. But it did not work in Brantford, Kitchener, Peterborough, and other cities they built these malls in.

The EATONS family just did not care anymore, when it comes down to it.

The Downtown Toronto EATONS was "the grand lady" of them all. SEARS while maintaining a nice store, really did not use the downtown store to their advantage. Yonge Dundas is a huge money making spot. But SEARS just does not care.

The SEARS store in downtown Toronto is still in many ways an EATONS, as regular SEARS stores don't have the selection the downtown SEARS has or $200 shirts. But SEARS really could have done even more if they wanted to.

SIMONS is our next major Canadian store I think. SIMONS seems to be expanding slow and making money. I hope they don't expand everywhere as they are a special treat when you go to Quebec. But I think they may be the next famous family run retail store in Canada. But thats because the family cares about running a good store.

The EATONS thing though is just a disgrace to Canada if you ask me. How we let a national icon like that go down, is just sad.
My mom remembers when she was dating my dad and she would come to Toronto to visit him. The main thing you had to go was go to EATONS downtown.
That place was a special place, and a legend. Even the newer store that was built when EATON CENTRE was built, still had memories to it, and I remember special trips to that store at Christmas time.

But man EATONS before the family let it go down, knew how to do things. If you ever see the COLLEGE PARK store in Toronto and see the CARLU floor. Man, EATONS was amazing.

Wow.. the crazy CAPITALIZATION of the store names is annoying.

The downfall of Eaton's started many, many years ago with their dismantling of their catalogue system.

"When The Night Feels My Song" by the Bedouin Sound Clash

I concur, good song.

miketoronto, you crack me up! I think Target is different from Woolworths in that you'd have to travel in a time machine (or go to the UK, Australia, NZ or South Africa) to visit one.

I agree with the Europe comment. Now that I live in London, there are constantly people asking me if the Tesco is behind that big clock tower;)

I didn't know Le Château manufactured so much clothing in Canada. I frankly didn't realize we had that much polyester and mesh in the country!

Just to let you know, I'm jealous ;)

I can't get time off of work this year to go to London and it is by far my favourity city :)

If Zellers and Target are the same then why has every Target (or SuperTarget) I've been in, been neat and orderly with well displayed prices while every Zellers I've ever been in has been dirty, disorderly, and cramped? I barely find what I'm looking for in Zellers and if I do find it, there's either no price displayed or the price displayed is confusing as hell.

But as those big chains from other countries come to Canada, there are new chains being developed in other countries. There is still plenty different in the US. Even the chains tend to be different from country to country.

I don't really shop that much. But I do worry about retail, because it is one of the factors in a vibrant streetlife in our cities.

Anyway who needs TARGET etc. I just shop at the normal stores and wait for sales.

I seem to always find something at WAL-MART prices or better, but better quality at regular stores.

It just takes going into the stores and looking.

Example. I was downtown shopping on Yonge. Went into the David Bitton store. Got a pair of black shorts I was looking for. Regular price $79.00. I got them on sale for $18.00. Last years stock. :)

Also on Yonge Street, I went into a really expensive store that was doing a renovation sale. Got a $80.00 shirt for $9.99. I know the prices from that store before the reno sale, and those shirts were $80.00.

THE BAY always runs great sales in the menswear department. I get lots of designer stuff there for cheap. I work there usually at Christmas. So that is when I stock up on clothing also at reduced rates. Got $100.00 pants for 30 bucks with all my discounts.

So like I said. Who needs TARGET. Just shop the normal stores and get good deals. Just takes a nice stroll downtown on the street to find the sales.

miketoronto, I agree with you. You can often find discounts at almost any store. I don't really see what the point of the last thread was, though. I also don't know how you see Target (sorry, TARGET), as irregular, (or other stores as regular).

The Bay and David Bitton/Buffalo are chains too and populate many malls too (one chain being American, and one Canadian). On the flip side, Target is popular because it mixes in the trendy styles with Wal-Mart style thrift. Give it another chance if you pop on over to Western New York or Metro Detroit next time. I'm sure you'll find a good sale.

On a similar note, someone recently told me they saw on CBC that the big Chapters at 110 Bloor (between Bay and Avenue) will soon become a Winners. What a shame...

I find that hard to believe. I don't think a WINNERS will gon on Bloor Street. They have their huge one two blocks down at College.

I shop at the WORLDS BIGGEST BOOKSTORE at Yonge and DUNDAS. Has even more books then CHAPTERS on Bloor.
And was the first big book store, before it became a trend.

I know David Bitton is a chain. But the downtown store is pretty unique has way more selection then a suburban store.
So I don't mind shopping in chains in downtowns. I like to shop at both. Chains and local stores.

Yes, Winners (ie WINNERS) is coming to Yorkville where Chapters is/was. It's going to be pretty big!

Chapters Indigo's been trying to sell that site ever since they merged. It's got to be pretty expensive, being on such a visible site. I think an Apple flagship store would be nicer there, or something less common. Winners at College Park is nice, but it's on Yonge St. Bloor-Yorkville is supposed to be swanky fancy schmancy. What a disappointment. I hope the Starbucks stays though.

The hell's with the capital letters in this thread? If it takes a takeover by Target for Zellers to clean up their messy and poorly run stores, then bring it on.

Hey, I was wondering what those catchy songs were.. thanks HOLDEN.

I wonder where in Toronto they'll be? How many Ronas are in GTA now (hmm...)?
____________________________________
Lowe's to enter Canada
By TAVIA GRANT
Monday, June 6, 2005 Updated at 4:32 PM EDT
Globe and Mail Update

Lowe's Companies Inc. confirmed Monday it plans to open its first Canadian store in 2007, vying with Rona Inc. and Home Depot Inc. in the Canadian home-improvement market.

The Mooresville, N.C. company said it will open as many as 10 stores in Toronto, its first venture outside the U.S.

The Globe and Mail reported last week that Lowe's was believed to be discussing deals for superstore sites and that an announcement was expected today.

The news comes as Canada has seen a multi-year housing and construction boom, spurred by low interest rates and easy credit — a pace of growth some economists say won't last. On the company's conference call, executives said Lowe's growth isn't traditionally affected by changes in the housing market.

“The Canadian economy is vibrant, stable, and our evaluation of the market indicates Lowe's can deliver value and provide meaningful choices to the Canadian consumer,” Greg Bridgeford, executive vice-president of business development, on the call. In the past year, the company has recorded more than 400,000 transactions from Canadians at Lowe's U.S. stores, he added.

The 59-year-old company plans to open six to 10 stores in Toronto in 2007, creating about 1,700 jobs. Each store will cost about $20-million and will be, on average, about 15,000 square metres.

Lowe's aims to differentiate itself from competitors primarily through high-quality customer service, the company said on the conference call.

Long-term plans include the potential for as many as 100 stores in Canada “as the company continues to evaluate additional opportunities for future expansion,” Lowe's said.

Asked about whether the company has been in partnership talks with Rona, an official said that its “primary and traditional way of expansion is through organic expansion.”

Lowe's will establish an office in the Toronto area later this year. It named Doug Robinson president of Canadian operations. Mr. Robinson, 45, joined Lowe's in 2003 after more than 20 years experience in the home improvement industry, the company said.

Lowe's had 2004 sales of $36.5-billion (U.S.) and operates more than 1,100 home-improvement stores in 48 states. It is the second-largest home-improvement retailer in the world.

Lowe's shares rose 97 cents to $57.93 in New York and Home Deport rose 23 cents to $39.95. In Toronto, Rona shares fell $1.83 (Canadian) or 7.1 per cent to $23.85.

Yea...more big box stores :no:

/\ hey, that's the reality of today......and has been for over 50 years in North America.

Well, in term of Lowe's, they have some competition from pre-existing hardware stores.