The Metro Vancouver Retail Thread

[C3YVR]

Vancouver is ranked 7th in the world for Professional Financial Services by the GFCI Index, and is considered an international banking centre, ranked 41st overall in the world. Calgary is next at 42nd but is only considered a local centre. (Toronto is a global city ranked 23rd and Montreal is also an international city ranked 33rd.) https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/

[Migrant_Coconut]

Originally Posted by Changing City

The 2021 census says Calgary has 28,370 working in Finance and insurance, while Vancouver has 65,305. The detailed breakdown by North American Industry Classification System [NAICS] shows:
Calgary
521 Monetary authorities - central bank 45
522 Credit intermediation and related activities 11,900
523 Securities, commodity contracts, and other financial investment and related activities 6,560
524 Insurance carriers and related activities 9,710
526 Funds and other financial vehicles 155

Vancouver
521 Monetary authorities - central bank 0
522 Credit intermediation and related activities 25,755
523 Securities, commodity contracts, and other financial investment and related activities 14,505
524 Insurance carriers and related activities 24,930
526 Funds and other financial vehicles 115

So if I'm understanding correctly, Vancouver has less central banks, but more overall bankers?

[bluefox]

Originally Posted by Denscity

I can't imagine closing by far the best performing store plus it's so close to head office that surely they could have made the situation work?

Legal, import/export, logistics, merchandising rules, bilingualism, labour laws, currency differences, taxes, etc. add cost to operating. Not only that, keeping a single store open, regardless of how well it's doing, when you previously had 13 running — obliteration of any economy of scale you might have previously had.

While it probably makes the most sense to keep the Vancouver store open given its proximity to head office and its sales performance history, it's not that easy or simple. Nordstrom probably thinks there's just as much chance Vancouver shoppers would hop over the border to shop in Seattle like they would have had to do before 2015, and as a result are willing to forego any profit from continuing to operate the Pacific Centre location.

I believe the way Canadian bankruptcy law works, that also means that Nordstrom can't really just pick and choose which stores it would keep open. It's either in on Canada, or it's out.

[Changing City]

Originally Posted by Migrant_Coconut

So if I'm understanding correctly, Vancouver has less central banks, but more overall bankers?

With only an estimated 45 jobs in central banking in Calgary, it's just one. They have a Regional Office of the Bank of Canada. Oddly, we have one as well, but as it's a 20% sample that create the data set, it's quite possible our central bankers were missed, or they identified as working in banking but not in a central bank. Out of 28,000 jobs in banking and finance in Calgary, those jobs don't really have much significance. That probably wouldn't be true in Ottawa though.

[officedweller]

Originally Posted by Denscity

I can't imagine closing by far the best performing store plus it's so close to head office that surely they could have made the situation work?

That's because the entity filing for creditor protection is the Canadian operating entity (see org chart above).
I wonder if Nordstrom could assign the Pacific Centre lease to another entity and reopen a "new" store in the existing Pacific Centre premises under a different operating company if they could make the logistics work (assuming that it's not prohibited on legal grounds).

[SpongeG]

Originally Posted by officedweller

That's because the entity filing for creditor protection is the Canadian operating entity (see org chart above).
I wonder if Nordstrom could assign the Pacific Centre lease to another entity and reopen a "new" store in the existing Pacific Centre premises under a different operating company if they could make the logistics work (assuming that it's not prohibited on legal grounds).

I wondered the same thing. For example Krispy Kreme is owned by the franchise owner out of Washington State, they have the rights to open stores in Washington, Oregon, BC and Hawaii. The Krispy Kreme is unrelated to the ones in Ontario and the rest of Canada. There could be a way to roll the Nordstrom into the Seattle area stores?

Krispy Kreme Pacific NW has ten locations to serve you in Washington, Oregon, Hawaii and British Columbia. Come rain, wind, hail, or sun – we’ve got you covered.

https://www.krispykremepacificnw.com/locations/

[officedweller]

Originally Posted by SpongeG

I wondered the same thing. For example Krispy Kreme is owned by the franchise owner out of Washington State, they have the rights to open stores in Washington, Oregon, BC and Hawaii. The Krispy Kreme is unrelated to the ones in Ontario and the rest of Canada. There could be a way to roll the Nordstrom into the Seattle area stores?

Conceivably, yes, unless re-opening the Vancouver store under a new license could be viewed as a misuse of the CCAA process.

The Pre-Filing Report linked above noted certain inter-company agreements between the US and Canadian entities - which it appears are comparable terms and services as you might find under a franchise arrangement.

Licensees can change. Toys R Us Canada was sold and operates despite the bankruptcy of the US company.
Lowes Canada was recently sold off to an investment firm and will revert to the RONA name.

9.0 INTERCOMPANY ARRANGEMENTS AND AGREEMENTS

Intercompany Agreements

9.1 Prior to its recent termination, Nordstrom US and Nordstrom Canada were parties to the
License and Services Agreement, a copy of which is attached to the Heckel Affidavit.
Under the License and Services Agreement, Nordstrom US, among other things:
(a) provided certain services to Nordstrom Canada in support of Nordstrom Canada’s retail
business operations; and (b) granted to Nordstrom Canada a non-exclusive, nontransferable
license to use the Intellectual Property (as defined in the License and Services
Agreement) owned or licensed by Nordstrom US. The License and Services Agreement
also set the Transfer Pricing Policy.

9.2 Prior to their recent termination, Nordstrom US also had separate services agreements with
each of Canada Leasing LP, NCH, and NCHII (collectively with the License and Services
Agreement, the “Intercompany Agreements”).

9.3 As described in the Heckel Affidavit, on March 1, 2023, Nordstrom US issued a written
notice of termination to the Nordstrom Canada Entities advising that the Intercompany
Agreements would terminate at the end of the prescribed 30-day notice period in
accordance with the terms of the Intercompany Agreements.

9.4 Nordstrom Canada and Canada Leasing LP are parties to an inter-affiliate services
agreement dated as of December 10, 2014 under which Canada Leasing LP provides
property management services to Nordstrom Canada, and Nordstrom Canada provides
payroll, finance and accounting services to Canada Leasing LP through its shared services
arrangements with Nordstrom US. The Wind-Down Agreement provides for the
continuation of this agreement.

[madog222]

They would still need the full Canadian corporate overhead plus import logistics just to run the single Vancouver store, that would for sure completely remove any profit no matter how well the store did.

Originally Posted by officedweller

The Pre-Filing Report linked above noted certain inter-company agreements between the US and Canadian entities - which it appears are comparable terms and services as you might find under a franchise arrangement.

I believe that's typical for international companies.

[Denscity]

Originally Posted by officedweller

That's because the entity filing for creditor protection is the Canadian operating entity (see org chart above).
I wonder if Nordstrom could assign the Pacific Centre lease to another entity and reopen a "new" store in the existing Pacific Centre premises under a different operating company if they could make the logistics work (assuming that it's not prohibited on legal grounds).

Ya something like that.
I mean to outperform the Seattle home store and the Manhattan flagship? Amazing

[dreambrother808]

Originally Posted by Changing City

So that was your university?

Or this one?

[FarmerHaight]

Originally Posted by Changing City

The 2021 census says Calgary has 28,370 working in Finance and insurance, while Vancouver has 65,305. The detailed breakdown by North American Industry Classification System [NAICS] shows:
Calgary
521 Monetary authorities - central bank 45
522 Credit intermediation and related activities 11,900
523 Securities, commodity contracts, and other financial investment and related activities 6,560
524 Insurance carriers and related activities 9,710
526 Funds and other financial vehicles 155

Vancouver
521 Monetary authorities - central bank 0
522 Credit intermediation and related activities 25,755
523 Securities, commodity contracts, and other financial investment and related activities 14,505
524 Insurance carriers and related activities 24,930
526 Funds and other financial vehicles 115

All I know is that the big banks' oil and gas teams are headquartered in Calgary, while Vancouver offices mostly provide regional coverage for tech, entertainment, and other industries while the teams are headquartered in Toronto.

Vancouver might have some boutique banks that only operate in B.C., and I know some mining stuff is headquartered here, but Calgary has far more "elite tier" finance jobs than Vancouver. There may be a little more venture capital work in Vancouver given the foreign money and the tech scene, but VC makes up a tiny sliver of total banking jobs.

I am not surprised Vancouver has more people working in those industries in general, given the metro population is about 2x Calgary's. But in terms of the quality of those positions, per glassdoor an investment banking analyst makes $140k per year in Vancouver compared to $170k in Calgary. You don't have to believe me; search any finance bro forum about working in Canada and they'll all say there's more and better opportunities in Calgary than Toronto.

[Changing City]

Originally Posted by FarmerHaight

All I know is that the big banks' oil and gas teams are headquartered in Calgary, while Vancouver offices mostly provide regional coverage for tech, entertainment, and other industries while the teams are headquartered in Toronto.

Vancouver might have some boutique banks that only operate in B.C., and I know some mining stuff is headquartered here, but Calgary has far more "elite tier" finance jobs than Vancouver. There may be a little more venture capital work in Vancouver given the foreign money and the tech scene, but VC makes up a tiny sliver of total banking jobs.

I am not surprised Vancouver has more people working in those industries in general, given the metro population is about 2x Calgary's. But in terms of the quality of those positions, per glassdoor an investment banking analyst makes $140k per year in Vancouver compared to $170k in Calgary. You don't have to believe me; search any finance bro forum about working in Canada and they'll all say there's more and better opportunities in Calgary than Toronto.

If you say there are more high-earning investment bank analysts in Calgary than Vancouver, you might be right. Vancouver wages are notoriously lower in many fields of employment. Weirdly you seem to have to pay people more to work in Calgary.

Vancouver has more employed in 'Securities, commodity contracts, and other financial investment and related activities' - 15,000 in 2021, compared to under 7,000 in Calgary. And that sector grew by over 1,485 in 5 years in Vancouver, and fell by 275 in Calgary.

I'm not sure how we got here from retail, but I don't suppose the demise of Nordstroms had much to do with the wages of finance bro's (or apparently anybody else's wages - it was the rest of Canada that sank Nordstrom, not the Vancouver store).

[LeftCoaster]

Originally Posted by FarmerHaight

All I know is that the big banks' oil and gas teams are headquartered in Calgary, while Vancouver offices mostly provide regional coverage for tech, entertainment, and other industries while the teams are headquartered in Toronto.

Vancouver might have some boutique banks that only operate in B.C., and I know some mining stuff is headquartered here, but Calgary has far more "elite tier" finance jobs than Vancouver. There may be a little more venture capital work in Vancouver given the foreign money and the tech scene, but VC makes up a tiny sliver of total banking jobs.

I am not surprised Vancouver has more people working in those industries in general, given the metro population is about 2x Calgary's. But in terms of the quality of those positions, per glassdoor an investment banking analyst makes $140k per year in Vancouver compared to $170k in Calgary. You don't have to believe me; search any finance bro forum about working in Canada and they'll all say there's more and better opportunities in Calgary than Toronto.

Maybe in 2013, but today? Not even close.

Calgary is not a finance centre, it is a niche banking hub for Canadian Oil and Gas, but even that is a shadow of what it was during the boom times, since the patch has moved from an expansionary phase needing piles of funding, to an operational phase not requiring the same big debt or equity infusions.

Would an ibanker in Calgary make more money than Vancouver? I don't see that as being implausible at all, the O&G industry pays huge wages, but is Calgary a finance hub that is larger than Vancouver? Definitely no. And are there better opportunities in banking in Calgary over Toronto? Not by a mile, that's like comparing a Ferrari to a civic.

[FarmerHaight]

Originally Posted by Changing City

I'm not sure how we got here from retail, but I don't suppose the demise of Nordstroms had much to do with the wages of finance bro's (or apparently anybody else's wages - it was the rest of Canada that sank Nordstrom, not the Vancouver store).

I was a little confused about how we got here too, but this stemmed from KB's post where they said Calgary luxury stores seem to stock more formal wear than their Vancouver counterparts. And I hypothesized that it may have something to do with the finance industry in Calgary. So we weren't discussing the demise of any stores but rather the varying product mix across different markets.

[LeftCoaster]

It's not the finance industry but O&G which is still pretty old school and traditional, much more in the office and suit than Vancouver.

[Changing City]

Originally Posted by LeftCoaster

It's not the finance industry but O&G which is still pretty old school and traditional, much more in the office and suit than Vancouver.

Overall Calgary added a total of 9,000 jobs in 5 years. Vancouver added 112,000.

Calgary lost 6,450 in oil and gas, and another 7,670 in 'Support activities for mining, and oil and gas extraction'. (2016 to 2021 Stats Can census data).

It added 7,000 tech jobs (Computer systems design and related services), but Vancouver added 15,000.

Most of the other gains were similar to Vancover - more hospital workers, more in transportation, more couriers and local delivery. There were big losses in accommodation and food & drink (but that's the pandemic).

Calgary lost manufacturing jobs at a higher rate than Vancouver, too.

[mcj]

Originally Posted by s211

You'll have to change your beliefs. The banking/finance sector has a FAR larger presence in Calgary than Vancouver.

I almost spit-took when I saw your comment.

Originally Posted by Changing City

The 2021 census says Calgary has 28,370 working in Finance and insurance, while Vancouver has 65,305. The detailed breakdown by North American Industry Classification System [NAICS] shows:
Calgary
521 Monetary authorities - central bank 45
522 Credit intermediation and related activities 11,900
523 Securities, commodity contracts, and other financial investment and related activities 6,560
524 Insurance carriers and related activities 9,710
526 Funds and other financial vehicles 155

Vancouver
521 Monetary authorities - central bank 0
522 Credit intermediation and related activities 25,755
523 Securities, commodity contracts, and other financial investment and related activities 14,505
524 Insurance carriers and related activities 24,930
526 Funds and other financial vehicles 115

Seems like I'm not changing my beliefs s211

[jollyburger]

Interview over on Retail Insider with a VP Marcus Millichap about the Nordstroms closure. Hinted at some new retailers are coming into the city soon.

https://retail-insider.com/podcast/2023/...ver-nordstrom-site-with-craig-patterson/

[SpongeG]

Does anyboy remember Brettons? they had a dept store at Eaton Centre, now Called Metropolis. Another failed foray into Canada.

Anyway I wonder if any European or Asian department store chains would want to expand into Canada?

Also in a story I just read about Zellers it says:

The majority of the products coming to Zellers' shelves are designed in-house under their new private label, Anko. The stores will also carry some name-brand products, like from Disney and Mattel.

source: blogto.com

So I wonder if it's just that they are using Kmart Australias House Brand Anko? If so when shopping down under at Kmart I really liked their in-house brand.

https://www.kmart.com.au/introducinganko/

We believe it’s important to celebrate our products proudly. As we’ve moved from sourcing goods made by others, to designing our own on-trend, everyday products, we’ve made the decision that all Kmart own-brand items will transition to one product brand: Anko.

Designed for you
We are passionate about bringing you good looking products at the lowest prices to make your everyday living brighter. And we want to celebrate that loudly and proudly by making them clearly identifiable in our stores. Our team of over 300 buyers and 40 designers are dedicated to bringing you, our customers, the very best products at irresistibly low prices across the entire Kmart store.

edit: i saw another article that had pics of the test store and in a zoom in it does look like they are using the anko products from Australia.

[jollyburger]

Kmart is taking its cult-favourite home-brand product range Anko global, starting with a launch in Canada this month as the discount department store signs up partnerships with international retailers.

Kmart Group managing director Ian Bailey said wholesale partnerships were the best way for the retailer to get Anko products out in the global market, rather than it setting up bricks-and-mortar stores.

Kmart boss Ian Bailey.
Kmart boss Ian Bailey. WAYNE TAYLOR.

“Our product has got to a level where we think it’s now globally competitive,” Bailey said after a Melbourne Fashion Festival event on Tuesday, noting that Kmart was already talking to retailers in Europe, Africa, Asia and the US about selling Anko products into their stores.

“Canada is number one, our product goes live with [our partner] retailer at the end of this month.”

Bailey said Kmart was taking a “pragmatic” approach to the international opportunity and was confident its budget homewares range would capture shoppers beyond Australia.

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“When we have been around the world, and we’ve looked at our products, we would say when we look things like home [goods] – the quality, the style, and the price we think is globally competitive. If you look at our toys, you would say that’s the same,” Bailey said.

Kmart’s own-brand products have gained traction over the past few years thanks in large part to Instagram and TikTok, where enthusiastic shoppers routinely share their favourite picks and show how these are styled in their homes.

Kmart’s official Instagram account has 1.2 million followers.

Bailey said the enthusiasm for the brand on social media was a reminder of the company’s core focus.

“It’s fascinating to see the emotion that comes through and how it makes people feel,” he said.

“When you’re running a business there are a lot of things to do – just having that refresher that what you do means something to people is actually really helpful.”

Kmart Group, which includes fellow Wesfarmers-owned discount department store Target, increased its revenue for the six months to December by 24.1 per cent to $5.7 billion.

Kmart’s move comes as major listed retailers report customers are changing their spending as they absorb 10 consecutive interest rate rises.

Department stores have stayed resilient despite cost-of-living pressures, with turnover up 8.8 per cent between December 2022 and January 2023, according to Australian Bureau of Statistics retail figures.

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Bailey said lower-income customers would struggle during this period, and the brand was focused on providing value for them.

“Equally, you are going to have some middle- and higher-income customers that are going to choose to shop in Kmart a little more often,” he said.

https://amp-smh-com-au.cdn.ampproject.or...-about-to-go-global-20230307-p5cpyb.html