Canadian Retail Thread

[neilson]

Originally Posted by miketoronto

A co-worker brought this very fact up actually at work today, about how Canada does not push people to learn our customs. This is Canada, and you speak English when you are in a store. Its simple. I really don't think stores in Canada should be making it more easy for people not to learn the language of this country.

Tell that to ppl working at Simon's in Sherbrooke.

Your nation is one of BI-ligualism, as in You need to know 2 Languages if you're expected to get around the bulk of your nation.

If you plan on never stepping foot into Quebec, save for West Montreal, then feel free to only speak English.

[crooked rain]

Originally Posted by miketoronto

A co-worker brought this very fact up actually at work today, about how Canada does not push people to learn our customs. This is Canada, and you speak English when you are in a store. Its simple. I really don't think stores in Canada should be making it more easy for people not to learn the language of this country.

There goes Chinatown.

More often than not, you are posting bemoaning the fact that diversity is declining (see your Church St thread in city discussions), then you complain because somebody is speaking Chinese at the Bay. Your opinion seems inconsistent.

[SSLL]

I don't agree that people at the Bay should only speak English (or French). I think they should have the option to speak in their language of origin. What happened to embracing diversity rather than publicly support it in theory, but trash it in practice. As someone's already said, it's not like they're forcing you to speak it!

[SteelTown]

How Swede it is for H&M store in Lime Ridge Mall

By Steve Arnold
The Hamilton Spectator
(May 16, 2006)

Fashion alert -- H&M is coming to Lime Ridge Mall.

The Swedish clothing retailer, which has been teasing Hamilton shoppers since early in the year, confirmed yesterday it will locate on the ground floor of the Mountain's consumer cathedral.

Laura Shankland, of the chain's marketing and public relations team, said the decision to come to Hamilton was "a natural extension of our expansion plans" and Lime Ridge was the obvious location.

"Our strategy is always to look for the best locations, no matter where we are," she said.

Hoarding around the new store's location went up last week, marking the start of renovations the company hopes will be finished in time for an early September opening.

"With building and everything, there's always a chance things can go wrong but we hope to open in time to catch a bit of the back-to-school rush," Shankland said. "We have a lot of kids lines, so that season is very important to us."

H&M replaces The Bombay Company, which has moved into a temporary location until its new digs on the second floor are ready.

Mandeep Malik, professor of marketing at McMaster University's business school, predicted the new store will draw good business to Lime Ridge Mall because of its attraction for younger shoppers.

"H&M has a lot of equity in the youth market. There is real buzz about it and it will draw a lot of traffic for Lime Ridge until that peters out," he said. "Overall, it's going to be good for Lime Ridge Mall and retail activity in general."

A popular new store like H&M, he said, can hit competitors like The Gap, American Eagle Outfitters and Old Navy by drawing business away, or help them by increasing the overall level of retail activity.

Known for offering cutting edge styles at affordable prices, H&M targets "fashion conscious women" -- shoppers continually updating their wardrobes, creating an unending demand for something new. To feed, and partly create, that demand, H&M has a team of more than 100 Stockholm designers scouting clubs, concerts, film sets, art shows, Tokyo streets and TV in their hunt for clothing's coolest. In addition to being nimble -- it can take a new piece from a design sketch to store in as little as three weeks compared to a minimum three months for other chains -- it also discounts designs by stars like Chanel's Karl Lagerfeld, Beatles daughter Stella McCartney and Viktor and Rolf.

Viktor and Rolf's lines for men and women will be offered in select stores starting in November. Exactly which stores hasn't been decided yet, Shankland said.

[SSLL]

From: http://www.chicagotribune.com/busine...i-business-hed
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Crate & Barrel filling up with new stores, brand

By Mary Ellen Podmolik
Special to the Tribune
Published May 16, 2006

Crate & Barrel, widely known within retailing circles for its cautious growth strategy over the past 44 years, is getting more aggressive with new store openings.

The Northbrook-based chain will enter three markets and open up to 13 stores in the next 18 months, as well as extend the new edgier, more urban CB2 brand to another city, said Gordon Segal, chief executive officer.

The company said the Crate & Barrel chain now has 144 stores.

Its first step outside the United States, across the Canadian border into Toronto, also is planned for next year.

At the same time, Segal, who founded the chain with his wife in Chicago's Old Town neighborhood, is slowly pulling himself away from the 60-hour workweeks he has maintained while building the company. Longtime employee Barbara Turf, 63, who has served as company president since 1996, will begin making more public appearances, Segal said in an interview.

With the merchandise mix in CB2 tweaked--focusing more on home furnishings and less on accessories--and a catalog, Web site and gift registry operational, Segal believes the new concept is ready to roll out beyond the two Chicago stores, the first of which opened in 2000. Eventually there could be up to 150 stores, he said.

He hopes to open six more CB2 stores in the next 18 months, including another in the Chicago market. Beyond that, executives are trying to decide whether to first bring the chain to Los Angeles, New York or Miami. Miami may be the best bet, Segal said, because it has produced the best sales for CB2's catalog and online business outside of Chicago.

New markets for Crate & Barrel will be Charlotte and Kansas City this year and Connecticut next year. After three years of negotiation, Segal said the chain is close to two real estate deals in Toronto. Expansion into Europe, however, will take more time.

Crate has undertaken a study of every product in its inventory, to determine what products would easily translate abroad and what merchandise would have to be redesigned.

Two hitches he already sees: Crate's overstuffed furniture may not fit in smaller European apartments, and its measuring spoons would have to be redesigned to accommodate the British definition of teaspoon.

Segal, 67, sold a majority stake in the company in 1998 to Otto Group, but he has always been considered the public face of Crate & Barrel. He still spends up to a third of his time traveling for the company, but he admits "the excitement isn't as much there."

"I'm slowly transitioning," Segal said. "I don't want to be here when I'm 75 or 80. You get more tired. It's a very high-energy job."

Segal credits Marimekko, the Finnish textile company he began working with in 1966, as the "biggest single influence" on Crate's architecture, display, product design and on his life. Today the boldly colored fabric is only sold in outlet stores, but it remains part of the store displays and is prominently featured at the firm's Northbrook headquarters.

Crate is sponsoring an exhibit of Marimekko at the Illinois Institute of Technology June 10 through July 28.

[SSLL]

I gotta tell ya, with Aldo, La Senza is everywhere in the UK!

From: http://news.yahoo.com/s/cpress/20060...NlYwN5bmNhdA--
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La Senza expansion continues aggressive multi-year expansion in Canada, abroad
DAVID PADDON Thu Jun 1, 1:36 PM ET
TORONTO (CP) - La Senza Corp. (TSX:LSZ - news) is "firing on all cylinders" and plans to continue its aggressive multi-year expansion of lingerie stores in Canada and internationally, company executives told analysts Thursday.

ADVERTISEMENT

In Canada, La Senza is opening more stores in power centres, increasing the size of many of its stores in regional malls and converting its Silk and Satin stores to the La Senza Express brand, Irving Teitelbaum, La Senza chairman and chief executive said in a conference call.

"And we continue to expand rather actively globally through La Senza International," Teitelbaum said. "It's a very exciting growth story going forward."

La Senza has 306 corporate-owned stores across Canada, up from 290 a year ago, and 272 independently owned La Senza and La Senza Girl stores operating under licence in 27 other countries.

The Montreal-based company's stock gained 30 cents, or 1.2 per cent, Thursday to $24.80 with 7,830 shares traded at midday on the Toronto Stock Exchange. Earlier, it hit an intraday high of $25.50 - equalling its 52-week high set May 25.

On Wednesday, La Senza announced it had more than doubled its profits to $4.1 million or 30 cents per share in its latest quarter ended April 30 as sales jumped 16 per cent from the year-earlier period.

Sales rose to $96.7 million in the first quarter, from $83.4 million, with comparable-store sales increasing six per cent. Net income in the year-earlier period was $1.7 million or 13 cents a share.

The latest quarter included a $1-million writedown of property and equipment from the conversion of Silk & Satin stores to the new La Senza Express banner. The year-ago results included a loss of $879,000 from discontinued U.S. operations.

Capital expenditures during the quarter were $6.7 million, up from $4 million a year earlier.

The company opened seven stores in the first quarter, closed six stores and renovated three. A year earlier, it opened one store, closed five and renovated two.

Laurence Lewin, La Senza's president and chief operating officer, said that "as I mentioned last quarter, we are in the fortunate position that all of our operations (La Senza Inc., La Senza Girl, La Senza International and the online retail business) are showing profits and increasing profits."

"In other words, to use a more colloquial term, we're firing on all cylinders," Lewin said.

"This year is a year of remarkable expansion. We have a substantial capital expenditure budget and our three-year plan shows that that budget will continue pretty well through to the subsequent two fiscal years," Lewin said.

The money is focused on the La Senza brand.

The new La Senza Express concept, with stores of 1,800 to 2,000 square feet each, is being applied to converted Silk and Satin stores since the fiscal first quarter ended.

So far, 13 Silk and Satin stores have been converted and 20 more will be completed in the next two months.

"I can report that, with very few weeks of operation, the increase in business with the brand of La Senza over the door - La Senza Express, in other words - has been remarkable as compared with the Silk and Satin operations last year."

"It's not only increased business in those stores but we've maintained business in our existing La Senza lingerie stores within the same shopping centre."

As a result, the La Senza Express brand will be further expanded and there are between 70 and 100 other locations that can be leased with that banner in Canada, he added.

Lewin said a lawsuit filed against La Senza by U.S. rival Victoria's Secret over a wireless pushup bra has been blown out of proportion.

"If it was another company, with a name like John Smith and Co., it wouldn't have shown so much interest," Lewin said.

He described it as a "regular trademark dispute" over the name of La Senza's ITEC bra, which Victoria's Secret says is too similar to its IPEX wireless bra.

"This case is not about us copying or knocking off a Victoria's Secret bra," he said. "Their claim is the methodology of marketing and what they claim to be the similarity of the name is the reason for taking action."

[malek]

Reitmans will create a new chain and open 10 stores... geezus 887 stores, that is alot.

======================

New stores boost Reitmans profit 10%

10 outlets planned: New banner Cassis to target Baby Boomers

Hollie Shaw, Financial Post

Published: Friday, May 26, 2006
New store openings helped Reitmans (Canada) Ltd. realize a profit increase of 10% in the first quarter as the retailer readies its newest format, a clothing chain aimed at older women.

Net income at Canada's biggest specialty retailer of women's apparel rose to $21.7-million, or 30 cents a share, in the period ended April 30, compared with $19.7-million (28 cents) a year earlier.

Sales at the the Montreal-based company, which owns 887 stores under banners including RW & Co., Penningtons, Smart Set and Thyme Maternity, climbed 4.3% to $223-million.

"The combination of a late Easter and weather negatively impacted our optimistic sales forecast," George Hartman, an analyst at Dundee Securities, wrote in a note to clients. His estimate was 34 cents a share.

Reitmans will open as many as 10 new stores by the end of the year in Ontario and Quebec under the new banner Cassis, which targets women aged 40 to 60, a growing, underserved demographic.

Sales in stores open at least a year, an important industry metric, rose 2.3%, compared with a 7% increase the year before.

"That is an OK figure," said Bob Gibson, retail analyst at Octagon Capital.

"These guys have always done exceptionally well, and 2.3% on a same-store basis is what I'd expect from an average retailer. It looks like they will get much better growth in the last half of the year [when the company plans to open 68 new stores and close 19]. You always look for the upside with that kind of store growth," he said.
Mr. Hartman concurred: "We believe the shortfall to our estimates does not make for a trend, and we expect an
improvement in [the second quarter] and the back half of the year."

Market researcher Trendex North America says Reitmans has increased its market share at virtually all of its banners in the past two years, including its namesake, the largest of the chains. Reitmans share of the Canadian womenswear market rose to 3.2% in 2005, from 2.9% in 2003.
Shareholders have also been rewarded, with the stock rising more than 25% in the past year.
Reitmans also said yesterday it will record a one-time charge in the second quarter due to proposed legislation in Quebec that will impose retroactive taxes of about $17-million, plus interest and penalties.
[email protected]

REITMANS (CANADA) LTD.
Ticker: RET.NVA/TSX
Close: $20.21, down 9 cents
Volume: 23,160
Avg. 6-month vol.: 89,988
Rank in FP500: 264

[SSLL]

From: http://www.theglobeandmail.com/servl...Story/National
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Malls? Call them shopping centres
The megabrands move in, giving Dufferin Mall and Gerrard Square a makeover

SARAH ELTON
Special to The Globe and Mail
There is a rumour travelling around the city's west end faster than a summer cold. International fashion megabrand H&M is coming to Dufferin Mall.

Gasp. Could this mean the Duff is going bougie? As rising real-estate prices push young professionals into the neighbourhoods bordering Toronto's downtown, these in-between areas are changing dramatically. And one barometer of social change is the local mall.

Two malls that bookend the city's downtown -- Dufferin Mall in the west and Gerrard Square in the east -- are both currently undergoing transformations that are the shopping-plaza equivalent to the power-washing of an old brick home.

Not long ago, the Duff was known more for its shady side than for its shopping; teen gangs and gun violence plagued the mall during the 1980s and early 1990s. But in recent years, community groups -- and popular retailers like Winners and Wal-Mart -- turned the mall into a hub for budget-minded shoppers.

"Nobody went there but teenagers and old Portuguese men," says Simone Abel, a Toronto Web designer who has lived in the area for six years. "It's really changed a lot in the last five years."

Now, with H&M moving in, Dufferin Mall is moving even further upmarket as part of a management strategy to keep in step with the community, says Lana Vukelic, the mall's general manager. Old brick homes at below Annex prices have lured younger, more upwardly mobile buyers. Across the street, Dufferin Grove Park has attracted young families with its playground, organic farmers' market and Friday-night potluck dinners. Mall management saw a burgeoning community ready to become a target market -- as did H&M.

"We're in Oxford Street in London, Fifth Avenue in New York and all the key malls," says Laura Shankland of H&M's marketing department. "Dufferin is just a natural step in our expansion."

Across town, Gerrard Square is following the Duff's example. Just over a year ago, the mall, located on Gerrard Street near Pape, offered little more than a Zellers, Food Basics and makeshift kiosks selling sausages and second-hand books.

"It was turning into a flea market," says Robert Piccinin, the mall's leasing manager. Now, the Home Depot, Staples and Winners have moved in, and more name brands are coming, like Urban Planet and Suzy Shier. "The lower-income people are moving out of the area and you have new people who want to shop."

According to Pierre Filion, a professor of urban planning at the University of Waterloo who has studied downtown malls in Canadian cities, there are two ways of looking at what's going on. Yes, the people who used to hang out at the family-run doughnut shop are going to be pushed out when it's transformed into a juice bar. But this is also an example of a private company, the mall management, trying to jump-start an urban phenomenon and replicate high-end commercial strips like the ones in Bloor West Village and along the Danforth and Queen Street in the Beaches, which took decades to become what they are today.

"It's a risky endeavour," Prof. Filion says, "because . . . it's not the Beaches. People aren't going for a walk there. They are trying to create gentrification themselves."

While H&M is a significant step, Ms. Abel doesn't think that the store's arrival means the Duff is there -- yet.

"There's no leather to be found. Just all the vinyl you can shake a stick at," she says. "I'm waiting for a higher-quality shoe store. When I see that, it will be a clear sign of yuppification."

[SSLL]

From: http://www.theglobeandmail.com/servl.../Business/home
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Rona hammers out bold strategy
U.S., women and green in its sights

MARINA STRAUSS
From Wednesday's Globe and Mail
TORONTO — Robert Dutton is mapping out a bold expansion plan for home improvement retailer Rona Inc. that will see it enter the U.S. market by next year, and launch new specialty stores geared to women and the environmentally conscious.

It's a bid by the Rona chief executive officer to reach out to a younger generation of hardware shoppers while also bulking up the chain's operations as it prepares to face a big new U.S. competitor in Canada in 2007.

"In the next 10 years, we're going to have lots of change in the way we're going to sell our products -- home renovation products and garden products," Mr. Dutton said yesterday after speaking at the Retail Council of Canada's annual conference.

"It's going to be a revolution."

Mr. Dutton is searching for growth opportunities at a time when the sizzling home improvement retail market is showing signs of a slowdown. At the same time, Lowe's Cos. Inc., the second-largest U.S. chain in the field after Home Depot Inc., will put added pressure on Canadian retailers as it gets ready to open its first stores here next year.

The challenges don't stop there. A younger generation of homeowners will be shopping more, bringing with it its own expectations and demands.

Mr. Dutton is preparing for the shifts. He said Rona is well positioned with its array of different-sized stores, from big boxes to small shops, all catering to a wide range of customers and communities.

In the coming years, Mr. Dutton will focus more on small and mid-sized stores partly because he believes that they appeal to Generations X and Y -- those born between 1965 and 2000 -- who value the service and convenience of a compact boutique.

Smaller stores work well in so-called lifestyle shopping centres, an emerging mall concept in North America. They feature shops in a simulated old-time main street setting, and cater to a well-heeled customer.

"If we want to be there, we're going to have to adapt our store with a different approach," he said.

Specialty stores are one approach, he said. A green store will carry products that are designed to limit harm to the environment, he said, while a store geared to women may carry more home decor items.

Rona will launch these new concepts next year or the year after, he said. "We're going to have a change in the behaviour of the consumer. We're going to have to adapt our stores."

South of the border, Mr. Dutton will be hunting for a chain of smaller-sized stores too, he said. He expects to be in the U.S. market by next year, he said. The move will be "prudent," but he also has big dreams.

He wants Rona to become the third-ranked U.S. home improvement retailer. "We can be third place."

He plans to begin the U.S. expansion in the Northeast and East Coast areas because consumers there have buying habits similar to Canadians, he said. "For the next 10 years, North America is going to be a good playground."

At that point, the chain, based in Boucherville, Que., could consider going further abroad, he said.

But before it enters the U.S. market, it needs to boost its operations here, he said.

Rona is rapidly buying up smaller Canadian hardware retailers, recruiting new operators and building 20 new stores annually. It is aiming to ring up $7-billion of sales by the end of 2007, up from the current $5.2-billion.

Rona's stores already try to cater to handywomen with its highly visible home decor sections and an emphasis on personal service. About 52 per cent of the chain's customers are women.

By next year, it will set up in-store boutiques with specialized home security products, while also focusing more on energy-saving and other environmentally friendly merchandise, he said.

It's an attempt to respond to customers' evolving needs, he added. "We adapt our stores to those needs."

[SSLL]

From: http://www.canada.com/nationalpost/f...a483b6&k=27915
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London Drugs looks for growth at home for now, no rush to Ontario yet

Craig Wong
Canadian Press

Monday, June 12, 2006

RICHMOND, B.C. (CP) - As the retail world splits between small speciality stores catering to niche markets and big-box sellers like Wal-Mart and Costco selling at the lowest possible price, B.C.-based retailer London Drugs has carved out a unique and growing space for itself.

But the eclectic Western Canadian retailer, which despite its name sells a seemingly bizarre combination of products ranging from deodorant to plasma screen televisions, isn't in any rush to expand into Central Canada just yet.

London Drugs president Wynne Powell says the company's suppliers have urged expansion into Ontario many times and he's looked at it.

"We came close to going in a couple of years ago but decided to hold off because the economy is so buoyant in the West we felt we should continue to expand in the West," Powell said in an interview.

Part electronics store, part pharmacy and part camera shop, rolls of toilet paper can be found just a few aisles over from high-end home theatre systems and computers in a London Drugs store. Bigger than the average drug store, the chain's locations are smaller than a Wal-Mart at an average of 36,000 square feet.

Maureen Atkinson, a senior partner at the retail consultancy J.C. Williams Group, struggled to describe London Drugs and said there really isn't an equivalent anywhere.

"They are really an unusual animal," she said.

Atkinson said it is hard to tell what drives the business at London Drugs, whether it is a drug store or an electronics store and that could be the deciding factor on whether it can succeed in Ontario.

She said Shoppers Drug Mart is "incredibly strong" in Ontario with all the best locations and a well known brand name and would be a tough competitor for London Drugs.

"It is hard to imagine that they could really be able to carve our a significant enough business to compete," Atkinson said.

But if it is the electronics side of the business that drives the company, she said London Drugs may be able to find room for itself in Central Canada.

Powell likes to describe his stores it as a collection of speciality stores under one roof, and that's how the company is organized, with each department running its own show from high-end audio and video equipment to cosmetics.

Founded in 1945, the store began as a discount pharmacy that also carried discount photo equipment before it was bought by the privately held H.Y. Louie Co. in 1976. Since then the chain has grown to 63 stores across Western Canada with more than 7,000 employees.

Growth has slowed somewhat recently due to a shortage in Western Canada of skilled tradespeople, but Powell said he hopes to open as many as seven stores in 2007.

While many companies are rushing to become income trusts and cash in on the lucrative initial public offering market in recent years, Powell said the private route has served the company well and the company is in no need of capital to expand.

"Public companies tend to expand strictly to get the store numbers up because that's how they seem to impress their stockholders. We don't have stockholders to impress," he said.

Paul Cubbon of UBC's Sauder School of Business said it is one thing for London Drugs to do well where people are familiar with the store, but it will be a very different for them in Ontario where they are have no brand awareness in the minds of shoppers.

"If you ask somebody in Ontario or further east what London Drugs might sell, people are going to say 'a drug store,' not surprisingly because it is a very descriptive name. They might even say, 'Does it come from London, England, because we haven't heard of it in London, Ont.,' " he said.

Still, London Drugs has been successful so far and is very competitive with a reputation for very knowledgeable staff when it comes to selling electronics, Cubbon said.

"When you look at their flyers and the weighting that is given to electronics, it clearly does a good job," he said.

But the company is in no rush to open a store in Canada's most populous province.

In addition to selling consumers on the idea of a store that carries computers, cameras and toothpaste, Powell says it will mean a new distribution centre, a management centre and enough stores to justify them, a departure from its slow and steady approach so far.

"We knew when we went into Manitoba that we were stretching our distribution system to the max," he said.

"We're servicing it well, but we also know we've reached the limit of our current distribution channel."

So for now, Powell says opening in Ontario remains an if, not a when.

[SSLL]

From: http://www.chainstoreage.com/magazine/story.cfm?ID=3009
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Cabela's Northern Exposure
June 2006
By Katherine Field

“Mall is a dirty four-letter word. This isn’t a mall; it’s an experience,” said Sheldon Gordon, chairman of Greenwich, Conn.-based Gordon Group Holdings, and developer of North America’s next—pardon the term—megamall.

Lac Mirabel—taken from the French word for lake, of which two will be created for the mega complex—will sprawl across 332 acres of land and is expected to capture customers as far away as 100 miles from the municipality of Mirabel to shop in a complex outsized only by West Edmonton Mall in Edmonton, Alberta, and the Mall of America in Bloomington, Minn.

Gordon is no stranger to mega experiences. His company developed The Forum Shops at Caesars Palace in Las Vegas and, just recently, The Pier at Caesars in Atlantic City (N.J.), opening this summer. He’ll inject Caesar-like amenities into Lac Mirabel, including the largest indoor aquarium in Canada, a marina, a food emporium bordering the water features and a Kidtropolis entertainment facility for children. A steeply sloped and sodded roof will provide a tobogganing hill in the winter and a picnicking site in warm weather. Most significant is that the entire complex will become North America’s first green mall.

“We are doing everything possible to obtain a LEED certification,” said Gordon. “I believe in it.” A trio of power sources—windmills, solar panels and thermal pull—will power the common areas. Building framework will be native wood rather than steel. The lakes will serve as cooling towers. A retractable roof will allow the mall to be enclosed or open air. “This is going to be a true breakthrough,” said Gordon.

Northern exposure: Sidney, Neb.-based outdoor outfitter Cabela’s will experience its own breakthrough at Lac Mirabel, as the world’s largest direct marketer and leading specialty retailer of outdoor merchandise expands its retail presence beyond the United States for the first time. According to Mike Callahan, senior VP of retail operations and marketing for Cabela’s, while the decision to break into Canada was planned, the timing wasn’t. “When we decided to ramp up our retail store expansion, part of our strategy was to take a look at Canada,” he said. Had it not been for the Lac Mirabel opportunity, however, a Canadian expansion “would not have been quite as high on the priority list as it is right now,” Callahan said. “It came along, and we seized the moment.”

Slated to open in early 2008, Cabela’s in Lac Mirabel will take full advantage of its northern exposure. Interior amenities in the 125,000-sq.-ft. space will be decidedly Canadian. “The French Canadians in particular were among the first and most vigorous explorers of North America,” said Callahan, “and we’ll reflect some of that in the interior design.” Canadian-influenced taxidermy such as polar bears and fur seals will dot the interior; the aquarium will be stocked with fish native to the area. A small museum will display unique Canadian wildlife, and the deli will feature wild-game meats such as elk, caribou and bison.

Because Canadians are already avid Cabela’s catalog customers, this move into Lac Mirabel made a lot of sense, noted Callahan. But is it the start of a full-on Canadian expansion? “It’s safe to say that we have a number of pins in the map.”

[SSLL]

The location on Ste-Catherine in Montréal will be a Banana Republic. We know what they're doing with the two Loblaws outpad sites in Toronto, but I wonder what they'll do with the other great locations on Queen Street (Toronto), Granville Street (Vancouver), West Edmonton Mall, Sherway Gardens (Toronto), and Chinook Centre (Calgary).

From: http://www.theglobeandmail.com/servl...ory%2FBusiness
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Ralph Lauren pulls plug on sale of Caban
Landlords' desire to reclaim space a factor
MARINA STRAUSS

RETAILING REPORTER; With a file from Shirley Won

Polo Ralph Lauren Corp. will shutter its seven Caban home decor stores across Canada after its two major landlords helped dash hopes for any deal to sell the chain because they wanted to get back their coveted store space.

Grocery behemoth Loblaw Cos. Ltd., which houses three Caban stores next to its supermarkets, wants the prime retail space to showcase its own home fashions, industry sources said. It could also rent the stores to a non-competing retailer, they said.

Cadillac Fairview Corp. wants a more successful retailer for two more outlets that are occupied by Caban at top malls in Toronto and Calgary, the sources said.

Ralph Lauren spokeswoman Nancy Murray confirmed the chain will close by Aug. 31, but would not comment beyond saying the company wants to focus on its "core apparel and accessories business."

Big landlords can have significant clout in deals to sell a merchant, even holding up a transaction if they don't approve of the potential buyer for a sublease. Faced with a scarcity of star locations, they need to ensure that they get the best tenants for their stores.

For Loblaw, the bid to control its real estate is paramount. It is focused on expanding its non-grocery merchandise in its competitive battle with titan Wal-Mart Canada Corp. The grocer is looking for every way to shore up its operations.

The turn of events has an ironic twist to it. Joe Mimran, who came up with the Caban concept when he headed hip fashion retailer Club Monaco, is now the chief architect of Loblaw's private label home furnishings and fashion lines.

Industry insiders believe that Loblaw wants to give Mr. Mimran's goods more prominence by placing them in the spaces now occupied by Caban stores. One way or another, Loblaw wants the space to be more productive -- and not distract from its own merchandise.

The landlords' position made it more difficult for would-be buyer Stephen Granovsky, a Toronto retail consultant and investor, to make headway in cutting a deal, the sources said.

They said that Mr. Granovsky's financial partner, William Taggart of U.S. private equity firm York Management Services Inc., has backed away from a Caban transaction.

"They couldn't make it work," a source said. Mr. Granovsky would not comment yesterday. And Mr. Taggart did not return recent calls. Loblaw and Cadillac Fairview officials would not comment.

Mr. Granovsky, president of Karabus Management, has done extensive retail consulting work in North America. He is also among the new investors in discounter Saan Stores, which emerged from bankruptcy protection last year.

York Management of New Jersey owns the Northern Reflections and Regal Greetings and Gifts chains, among others, and was an investor in Kmart Canada Co. before it was sold to Hudson's Bay Co. in 1998.

Caban made a big splash when it was launched in 2000 as a stylish home fashion chain under the creative inspiration of Mr. Mimran. But it later lost its focus after he was ousted from Ralph Lauren that same year, shortly after the New York fashion retailer had acquired Mr. Mimran's Club Monaco.

[SSLL]

There was an article yesterday in the National Post, but I don't have subscriber access. Here's a newish article from last fortnight.

From: www.theglobeandmail.com/s...y/National
____________________
H&M plans seven stores for Ontario and Quebec
SHIRLEY WON
Swedish clothing retailer Hennes & Mauritz AB plans to open seven more stores this year in Ontario and Quebec as part of its foray into the Canadian market, the company said yesterday. The fashionable, low-priced chain launched its first H&M store in this country in 2004, and now has 16 outlets. The new shops will be part of a 100-store global expansion slated for the second half of this year. H&M, which yesterday reported an 8-per-cent increase in second-quarter profit, is also launching a new store chain under a separate brand that will seller higher-priced women and men's clothing. It did not reveal the name of the new brand, but indicated the new chain will open about 10 stores in "selected markets" next year. "H&M's ambition is to offer the best price for comparable items also in this segment," the company said in a statement. H&M also plans to enter the Far East market in 2007 by opening shops in Shanghai and Hong Kong. HMB (Stockholm) rose 11 kronor to 269.5 kronor ($41.04).

[malek]

Espace Boutique Europea, Montréal


Where: Montreal, Canada
Mon Jul 10, 2006 at 10:30:02 AM EST
Tags: Montreal, Design (all tags)


It has an unfortunate name, but Montréal's Espace Boutique Europea, at 33 rue Notre Dame Ouest, is one of the coolest one-off retail nooks we've seen in some time. Part delicatessen, part boutique, part café, Europea is encased in an attractive, clean space.
Associated with Restaurant Europea (at 1227 de la Montagne), the Europea boutique is jammed full of hard-to-find gourmet objects. While food and drink are the core products at Europea, cosmetics and housewares are also on offer.
Highlights include the Rolland Chocolatier chocolate collection, which include chocolate from São Tomé and Príncipe and Cuba, among other places, and Ark Land Water, an Armenian mineral water that comes in the coolest bottle we've seen in quite some time.
The overall impression is one of a retail shop in which every last object was carefully chosen. We like that.

[malek]

i have nothing in English, but Montréal based Stokes, plans on opening 50 stores in a near future.

[neilson]

The location on Ste-Catherine in Montréal will be a Banana Republic. We know what they're doing with the two Loblaws outpad sites in Toronto, but I wonder what they'll do with the other great locations on Queen Street (Toronto), Granville Street (Vancouver), West Edmonton Mall, Sherway Gardens (Toronto), and Chinook Centre (Calgary).

What IS gonna happen to the 2 Caban locations in Toronto at the Outpads for Loblaws?

[SSLL]

Grocery behemoth Loblaw Cos. Ltd., which houses three Caban stores next to its supermarkets, wants the prime retail space to showcase its own home fashions, industry sources said. It could also rent the stores to a non-competing retailer, they said.

More Loblaws home stuff, I suppose.

[SteelTown]

New department store for Hamilton
Hamilton Spectator

A leading department store chain, Hart Stores, is coming to Hamilton.

The department store announced today that it will be opening three new stores in Ontario next month.

The Hamilton store, to be opened on August 3, will be located on a 35,000 square foot area in the Hamilton City Centre - the former Eaton Centre.

The other two stores will be opened in Niagara's Port Colborne August 2 and in Kapuskasing August 31.

[malek]

wow, 10 billion for Couche Tard in revenues... incredible considering how tiny it was 20 years ago.
==============================
Strong Quarter for Couche-Tard

Same-store motor fuel volume on a 52-week basis grew by 6% in the U.S.
Alimentation Couche-Tard Inc. reported strong internal growth for the fourth quarter. Revenues increased 26.4% or $2.12 billion to $10.16 billion. Net earnings rose 26.4% to $196.2 million.

Same-store motor fuel volume on a 52-week basis grew by 6% in the U.S. and by 2.8% in Canada. It should be pointed out that the increase in motor fuel gross margin had a total positive impact of US$11.6 million on our operating income, net of the higher electronic payment modes related expense generated by the rise in retail prices of motor fuel.

"The fiscal year was very satisfying considering it was highlighted by solid internal growth and a significant increase in our consolidated merchandise and service gross margins which rose to 33.4%," said Alain Bouchard, chairman, president and chief executive of the Laval, Quebec-based chain. "Our fiscal 2006 performance attests to the effectiveness of our targeted marketing strategies and business model in both the U.S. and Canada. We accelerated the implementation of our IMPACT program, a true profit and growth driver for our stores, while taking advantage of outstanding opportunities to acquire small complementary networks in several strategic markets."

During the quarter, Couche-Tard also implemented its IMPACT program in 182 Company-operated stores for a total of 446 in 2006. As a result, 47.6% of the company-operated stores have now been converted to the IMPACT program. The continuation of the implementation of the IMPACT program will allow Couche- Tard considerable potential for future internal growth.
All of the Company-operated stores that were closed did not have the potential to meet Couche-Tard's contribution expectations. Most of these stores were part of the Circle K network acquired December 17, 2003.
For the 13-week period ended April 30, 2006, Couche-Tard achieved revenues of $2.64 billion, compared with $1.96 billion for the same period in fiscal 2005, an increase of 34.5% or $677.2 million. The company recorded 78.9% of its revenues in the United States, compared with 77.7% in the fourth quarter last year.

In the U.S., the growth of same-store merchandise revenues (on a 12-week standardized basis) was 4.6% while it was 4.3% in Canada. In both the U.S. and Canada, this growth is partially due to the results from investment in the IMPACT program conversions, as well as the results from the launch of new products that were well received by customers and from the implementation of its pricing strategies on certain product categories. In Canada, the growth was negatively affected by growing smuggling on tobacco products.

Also in the U.S., the growth of same-store motor fuel volume (on a 12-week standardized basis) was 5.8% in the fourth quarter of 2006 while it was 4.1% in Canada, which reflects the positive impact, in both the U.S. and Canada, of certain pricing strategies. Growth in Canada also reflects the positive consumer response in Ontario to the rebranding of several motor fuel locations, which now operate under Mac's in addition to a strong economy in Western Canada.

Gross profit grew by 22.9% or $80.4 million to $431.6 million, compared with $351.2 million for the same quarter last year. This increase is mainly due to higher sales overall and higher gross margins on merchandise and service, offset by lower motor fuel margins.

* The consolidated merchandise and service gross margin was 34.2%, up from 33% in the same period last year. The gross margin in the U.S. was 34%, up from 32.5% in the fourth quarter of the previous year, whereas in Canada, it was 34.5%, up from 34.0% for the fourth quarter of 2005. In both the U.S. and Canada, the increase in gross margin is due to improvements in purchasing terms, improved product mix as well as the launch of new products that were well received by customers and that generated higher margins.

* The motor fuel gross margin decreased to 10.96 cents per gallon, in the U.S., compared with 11.26 cents per gallon in the fourth quarter of the previous year, whereas it increased to Cdn5.11 cents per liter in Canada, from Cdn4.60 cents per liter for the same period last year. These changes primarily reflect the volatile nature of the motor fuel business and the Company's selective pricing strategy implemented in certain areas of the U.S. and Canada to stimulate sales volume.

Operating, selling, administrative and general expenses increased by $65.1 million or 23.0% over the fourth quarter of the previous year. This includes an increase of $6 million in electronic payment modes related expense, which relates to the increase in the retail price of motor fuel.
As a percentage of merchandise and service revenues, operating, selling, administrative and general expenses increased by 1.3%. This increase is primarily due to the recognition of a non-recurring charge of $5 million relating to penalties for the termination of two contracts governing ATMs in some company-operated U.S. stores.

Operating income of $57.2 million for the fourth quarter of fiscal 2006 increased by 21.4%, or $10.1 million, over the $47.1 million earned in the same period of the previous fiscal year. Financial expenses of $8.5 million were up by $1.1 million or 14.9% over the same period last year due to a general increase in interest rates.

Net earnings stood at $32.1 million or compared with $32.5 million in the same period last year, which represents a decrease of 1.2%. By
Motor Fuel Price Volatility

The average retail price of motor fuel in Couche-Tard's U.S. markets amounted to $2.48 per gallon for the 13-week period ended April 30, 2006 compared with $2.07 per gallon for the 12-week period ended April 24, 2005. The gross margin on motor fuel revenues varies primarily as a result of product cost volatility and competition. Although motor fuel gross margins can be volatile from one quarter to the next, they generally even out on an annual basis.

For each of the last four quarters commencing with the first quarter of fiscal 2006, motor fuel gross margins for the company-operated stores in the U.S. markets stood at 14.86 cents, 17.05 cents, 17.63 cents and 10.96 cents per gallon respectively - with a weighted average of 15.14 cents per gallon for 2006 compared with 14.17 cents per gallon for 2005.
Net of electronic payment modes related expense, these same gross margins were 11.88 cents, 13.55 cents, 14.39 cents and 7.65 cents per gallon, with a weighted average of 11.88 cents per gallon for 2006 compared with 11.52 cents per gallon for 2005.

The motor fuel gross margin for the U.S. Company-operated stores was 10.96 cents per gallon (7.65 cents per gallon, net of electronic payment modes related expense) for the fourth quarter of this year compared with 11.26 cents per gallon (8.51 cents per gallon, net of electronic payment modes related expense) for the same period last year. For the fourth quarter of the current year, this decrease in the motor fuel gross margin had a negative impact of $1.6 million on Couche-Tard's operating income (positive impact of $0.2 million including the effect of the increase in the gross margin on motor fuel revenues in Company-operated stores in Canada). Including the increase in electronic payment modes related expense, excluding volume effect, the negative impact is $4.6 million ($2.9 million including the results of Company-operated stores in Canada).
Quarter Highlights

Expansion and differentiation: Couche-Tard acquired 73 Company-operated stores, 27 affiliated stores, opened another 78 and implemented its MPACT program in 446 stores in North America, well exceeding the objectives set for the fiscal year. Subsequent to fiscal year-end, the company closed the acquisition of 90 stores in Georgia and Alabama, and signed an agreement to acquire 24 others in Louisiana (June 2006).

[SteelTown]

I would have never imagined a place just selling cereals.

Westdale cereal cafe looks to milk trend

By Laura Thompson
The Hamilton Spectator
(Jul 13, 2006)

Westdale's got a new cafe and cereal's the specialty.

That's right, a bar that serves only breakfast cereal and you can customize your bowl.

Just walk up to the counter, order from the cupboard or select a few varieties in bulk. There isn't much else on the menu, though you can wash it all down with a cup of joe.

There's also tons of different toppings -- including gummy bears and M&Ms.

But if you think it's a strange idea, you better think again. So-called cereal bars have been popping up all over the U.S.

Hamilton's just one of the first Canadian cities to hop on the breakfast cereal bandwagon.

The Cereal House, located a few doors down from the Westdale Theatre, pours its first bowl tomorrow. Nazli Eroglu and her husband, Ali, decided to launch a cereal bar after learning how trendy it's become for Americans -- especially university students -- to eat cereal outside their homes.

Eroglu said her love of cereal inspired the idea, though her friends said it wouldn't work. At that point, she didn't even know about the cereal-eating habits of our neighbours to the south.

"I asked some friends, they said, 'Forget it.' I was so disappointed," she said. "Then a few months later I told my husband and looked on the Internet and saw in the U.S. that everyone was eating cereal."

The couple hopes to attract McMaster University students for a bowl on their way to and from classes.

Matt Gardhouse, a 21-year-old McMaster student and self-proclaimed cereal lover said he finds the idea a little weird, though he's tempted to try it.

"It would have to be a place that's nice to study. That would draw me more than a bowl of cereal," he said.

Like its American counterparts, The Cereal House will offer a variety of cold and hot cereals. For about $4, you get a large bowl that includes a topping and the milk. Purists can order a no-frills bowl. There's Vector for the health nuts. And risk-takers can mix brands or add sweets to satisfy their palate.

There are roughly 30 kinds of cereal -- the same ones you'd find lining grocery store shelves -- and most are kept in a cupboard similar to Mom's.


Nazli Eroglu and her husband Ali hope to attract Mac students for a bowl of cereal on their way to class.