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Posted Apr 11, 2009, 8:20 PM
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Unregistered Loser
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Join Date: Jul 2007
Location: NB
Posts: 1,411
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$12M makeover for McAllister Place
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Construction Contractors will work at night; mall manager aims for October completion date
John Chilibeck
Telegraph-Journal
SAINT JOHN - You know the local economy is doing well when one of North America's biggest commercial real estate firms pumps $12 million into a popular mall.
Cadillac Fairview's recent announcement that it will spend that eye-boggling amount on renovations at McAllister Place on the east side is sweet news to Brian MacMullin.
MacMullin, the general manager of the mall since 1998, said this will be the biggest refurbishment under his stewardship.
"It will be amazing," he said.
"It will have a great impact for the property, and customers will love the results. We anticipate higher customer traffic as a result, and that should hopefully translate into greater success for our retailers."
The mall's interior will be renewed top to bottom, starting in May. Contractors will do the work at night after the mall closes to avoid customers getting dust in their hair or walking into a bucket of paint.
MacMullin is pushing for the bulk of the work to be completed by the end of October, before the Christmas rush begins when retailers make or break their year in sales. The finishing touches will likely be done in January of next year.
"Inside the shopping centre we're going to be touching everything - floors, walls, ceilings, adding new skylights in certain areas, expanding the food court seating area. We're redoing the washrooms, so we're touching everything inside the mall. We'll redo the entrances at the same time. It's going to be beautiful when it's done."
There are several reasons for the renovations - confidence in the local economy, which up until now has weathered the global recession better than many places, and strong sales over 2008 that buck the national trend. MacMullin said survey results also showed that the mall's throngs of customers wanted an enhanced shopping experience.
Cadillac Fairview's response will probably encourage many of those customers who did the three-minute questionnaires at the mall's exit.
Besides increasing ceiling heights and adding more skylights, McAllister Place will create warmly lit soft seating spots and increase the sit-down area in the food court by more than a third. This will include the introduction of 12-foot harvest tables for groups that want to chow down.The idea is to take some of the tiredness out of the mall and create a more comfy, ambient and friendly atmosphere.
McAllister Place has scored by luring some popular chains lately, including Aeropostale, the casual clothing store that originated in New York City. Boathouse, the unisex clothing store that appeals to the skateboard and surf set, and Yves Rocher, the natural beauty products shop, will also open soon.
A dominant local retail player since it opened in 1978 with 40 stores, McAllister Place kept on top of the competition by doubling its floor space and stores in 1989, transforming it from a community shopping mall to a regional attraction. Today it has 105 stores, including longtime anchors Sears, Sobeys, Zellers and Toys R Us.
Part of the success has to do with its owner, Cadillac Fairview, which has deep pockets and a $16-billion portfolio. It's one of the area's big commercial real estate investors and while it may not be a household name, locals know Cadillac Fairview's malls - it also owns Champlain Place in Dieppe and Regent Place in Fredericton.
Over the last couple of years, much of McAllister Place's retail might in Saint John has been usurped by East Point Shopping, up the hill off Westmorland Road, where Troy Northrup's high-end development looks down on McAllister Place like a new giant on the block. Northrup has already attracted a high end hotel, Hampton Inn & Suites; an Indigo, which is the biggest book store in Canada east of Quebec, and only last week it was announced that the mother of them all: Costco, the wholesale retailer that people will travel hours to visit, will open next year.
McAllister Place officials spoke against the rezoning of the lands for East Point, but now seem to have a grudging respect for the big box bonanza on the hill. There's hope now that Costco will draw people from outside the city to the entire east side shopping experience, including McAllister Place.
"We believe that it just reconfirms the strength of the Saint John market and how the economy is performing," MacMullin said. "It's positive for the city and positive for McAllister Place and it keeps customers in Saint John, and that's what everybody likes to see."
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Attracting shoppers from afar
Commerce With Indigo here, Costco coming, leaders aim to promote city as retail destination
John Chilibeck
Telegraph-Journal
SAINT JOHN - Build it and they will stay.
This twist on a familiar cliché was more or less what a retail group discovered last year based on a survey of local shoppers.
The survey done by Bristol Omnifacts Research on behalf of the Board of Trade and other sponsors asked 700 shoppers about their spending habits. Most of the people interviewed were from the Saint John area, but it included a sizable sample from Moncton, Fredericton and Sussex - the three biggest urban centres within two hours' drive of the city.
"The thing that I recall is the primary reason that people left Saint John to go to Moncton to shop was for Costco," said Board of Trade president Imelda Gilman this week. "That's why the announcement last week of Costco being in Saint John (next spring) is going to be a tremendous boost to retail in the city. That's going to help keep people here to shop but also at other businesses, right, and hopefully attract people to shop here as well."
The survey confirmed some long-held views about splurging in southern New Brunswick.
The wealthier people in the Saint John region were the most likely to shop in other cities, in the United States and on the Internet. At the time of the survey - early 2008 - Saint John had no big anchor store that was a significant draw for people from Moncton or Fredericton.
Moncton had Costco - attracting nearly half the visiting shoppers to the city - and Fredericton could boast a big Chapters bookstore and its enormously popular Saturday farmers' market.
Today, a similar survey might show something different.
Thanks to East Point Shopping, an Indigo has opened in Saint John and is the biggest book store east of Quebec. Within a year the same complex will have its own Costco, the enormously popular members-only warehouse retailer that attracts people from afar who load up on bulk bargains.
"It's very well known that wherever Costco locates, people flock to it and amass around the vicinity to other retailers," said Bob Manning, the chairman of Enterprise Saint John. "The whole area will benefit out there, for sure."
Gilman said the sponsors of the survey, who included East Point, the City of Saint John, Enterprise Saint John, Fortis Properties, the Hardman Group, Uptown Saint John Inc. and the Board of Trade - are busy working on the other recommendations included in the final report.
"The Board of Trade's retail forum came up with the idea of doing the shopping survey, and now they're working with all the same partners that funded the survey to look at how we promote ourselves as a retail destination. So we're looking at that whole angle."
The group wants to create a marketing buzz to draw people who don't know Saint John that well to the area's stores and shops. It's believed Saint John's retail catchment area - the number of people who would drive several hours to shop in the city - numbers in the several hundreds of thousands. A few weeks ago, the retail forum held brainstorming sessions at Lily Lake, but Gilman hasn't seen the final report by MT&L Public Relations, the firm hired to organize the event.
One key, Gilman said, was properly advertising the city's waterfront appeal and heritage buildings, two aspects that make Saint John unique and visitors have said caught their interest.
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Lancaster Mall leading west side's retail revival
John Chilibeck
Telegraph-Journal
SAINT JOHN - Bruce Creber wishes his company had more property on the west side.
The vice-president of real estate investments for Counsel Corporation, which owns Lancaster Mall, believes the area west of the two bridges is prime for retail development.
"We've done our research on the demographics of the west side," he said this week. "We've been around the property a lot and really observed the traffic patterns and where people are shopping and their likes and dislikes of going to the east side of the city versus the west side. And we think there's just a very large untapped demand for better quality stores."
Besides the $13 million in expansion underway at the mall, which includes a bigger Zellers and a new stand-alone Shoppers Drug Mart, Counsel has bought two properties across the road, on Fairville Boulevard, and demolished the old houses and commercial space known as Action Square that used to sit there.
He said the company plans on constructing space for two to four tenants, although he wouldn't divulge any other details.
The west side revival includes a new Sobeys and strip mall down the road, a new Canadian Tire, the demolition of the old transit garages and the possibility of a new, bigger NB Liquor store. On top of this, the city plans on redesigning the tortured Simms Corner intersection, removing heavy trucks from Harding Street and straightening the Bridge Road.
The Toronto businessman said it's good to see one area of the country doing so well in the midst of a global recession that's hammering Ontario.
"There's so much happening in Saint John in terms of growth, construction, the projects that Irving Oil's working on now, the nuclear plant, the list is on and on and on," he said.
"There's going to be a lot of employment growth, a lot of economic development, a lot of additional wealth and a lot of new permanent jobs that are going to be created and it's just a terrific market to be working in, especially right now. While everything else is slowing down, we can be working toward the future."
Bob Manning, the chairman of Enterprise Saint John, agreed that the retail future is bright for the west side, and the rest of the city.
"If you've spent any time with folks in retail, they do their homework. And they are very aware of what's going on, they spend a lot of time looking at statistical data and trying to figure things out," he said. "We've always said retail is one of those leading indicators of what the future's going to hold."
Manning warned that the recession wouldn't leave the city unscathed - layoffs have already been announced in a number of workplaces, most notably Aliant and CBC Radio.
"Whether it's a large step backwards or a small step backwards, I don't know. I do believe though that we will recover and once we recover we will be stronger than ever because the potential of some of the energy projects on the horizon."
As for retail development in other parts of the city, Creber said he's not worried about the competition. McAllister Place on the east side just announced $12 million in renovations and East Point Shopping plans on building a new Costco.
"The more Saint John gets put on the map, the better it is for us."
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I'd like to see a Princess Auto somewhere in the city.
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