Canadian Retail Thread

[SpongeG]

Pop-up retail a new marketing ploy to combat consumer fatigue

TORONTO (CP) - Everyone knows there is no free lunch, but what about a free spa treatment or hugely discounted designer shoes?

The trend of businesses popping up unannounced in unexpected places, drawing in consumers by offering them an exclusive experience, is starting to make inroads in Canada.

"It's still relatively new ... I'm expecting to see a lot more," said Stan Sutter, editorial director for Marketing magazine.

"If the consumer won't come to the mountain, take the mountain to the consumer," he said adding that it is the best way to get one-on-one contact with consumers.

Making the most of a city at its busiest, the folks at Evian set up a pop-up spa in the heart of downtown Toronto, at Bay and Bloor Streets, during the Toronto International Film Festival.

Patrons could either book an appointment or walk in for a bottle of water, a hand massage, a hot stone treatment, a facial or reflexology. The minimalist white spa had a fountain of Evian water and televisions that showed features about the history of the French water company. With no crowds and lilies everywhere, the place reeked of exclusivity.

On the first day, the lineup for the spa was almost a city block long even before the doors opened.

While the Evian brand is popular, it was the price that really got consumers excited: The spa is free - until October, anyway.

After that Evian will pack up shop, and the only place to get an Evian spa treatment will be in Paris, Buenos Aires or Shanghai.

Evian isn't the only retailer to harness public buzz.

A few years back, U.S. fashion discounter Target, with no retail space in Manhattan, set up a temporary store near New York's Hudson River to make the most of the Christmas season.

Some designers rent downtown spaces for a weekend and send e-mails out to the city's fashion industry, telling of the improptu location and the unbelievable prices.

Other brands have stuffed vans, truck and Hummers full of their products and trekked across Asia and Europe hawking everything from shoes and clothes to designer toys.

Rumour has it the Joe Fresh brand will be taking the discount clothing line across Canada to cities and towns that don't have a Loblaws Super centre.

"It's definitely an attention-getting buzz ... word-of-mouth ... all of those things are where marketers are investing these days. They are not stopping doing the other stuff, but they just find they've got to find something else that builds a little interest," said Sutter.

"The old newspaper ad, magazine ad and television spot don't quite have that engagement."

The purpose of setting up a spa in Canada's most populous city was to create brand awareness, said Michael Thouin, brand manager for Evian in Canada.

"We are taking the money we usually spend on a regular campaign and putting it to something that's a little more non-traditional," he said. "Yes, it is expensive to put together a spa but what we're getting back makes it an effective spend."

Are these pop-up retailers responding to consumer fatigue, or is it simply an age-old marketing ploy all tarted up and strutting her stuff?

"There's always been pedlars and travelling little wagons going around ... tinkers selling pots and pans, travelling bazaars, farmers and flea markets," said Len Kubas, a Toronto-based retail consultant.

"That's probably more of the retail tradition ... as opposed to firm buildings and stalls locked in place forever. Having stores and firm places of business is more recent than the history of retail would have you believe."

http://www.cbc.ca/cp/business/060916/b091608.html

[malek]

H&M will open its second store in the Rockland Center in Montreal.

Parasuco unveiled its 5M$ flagship store on the corner of Crescent and St-Catherine.

[SteelTown]

Today in the newspaper it released some information on the redevelopment of Centre Mall, which will cost $100 million and will be the largest inner-city redevelopment in Canada.

Some stores apparently coming to Centre Mall:

Ron Jon Surf Company
Abercrombie & Fitch
Hollister Co.
Panera Bread Company
Crate and Barrel
Apple Computer
Italy's Geox (shoes)
Lush Cosmetics and Diva (jewellery);
Mango and Zara from Spain
H&M from Sweden (opened at Lime Ridge this month)
Oil & Vinegar from the Netherlands (food)
Rip Curl from Australia (surf wear)
Inglot from Poland (cosmetics)
Luxottica from Italy (optical fashion chain bought Shoppers Optical in Canada)

Surprised about H&M, which just opened one in Hamilton so I guess there going for 2 H&M in Hamilton.

[miketoronto]

Basically stores that should be opening up in downtown Hamilton instead of another mall. When is Hamilton City Council going to stand up for downtown.

Why would you redevelope a mall that is like 5min from downtown and put stores in like that.

[Simcoe]

I keep hearing a Crate and Barrel is going to open in Toronto, but so far I've seen nothing. What is Miss Sixty? What a terrible name... sounds like it is for little old ladies who never got married.
If Le Chateau intends to go the route of Zara, they have a long way to go. They are notorious for poorly made clothing, and have catered in the past to teenage club kids. That is a hard rep to shake.

[realcity]

Originally Posted by miketoronto

Basically stores that should be opening up in downtown Hamilton instead of another mall. When is Hamilton City Council going to stand up for downtown.

Why would you redevelope a mall that is like 5min from downtown and put stores in like that.

exactly. It is a backwards step into a Power Centre no less.

[SpongeG]

Originally Posted by Simcoe

I keep hearing a Crate and Barrel is going to open in Toronto, but so far I've seen nothing. What is Miss Sixty? What a terrible name... sounds like it is for little old ladies who never got married.
If Le Chateau intends to go the route of Zara, they have a long way to go. They are notorious for poorly made clothing, and have catered in the past to teenage club kids. That is a hard rep to shake.

Miss Sixty is an italian label - quite pricey and trendy







they have a "trendy" hotel now






I read that Crate And Barrel plans to open in Canada in 2007 and was looking for two locations in Toronto/Ontario - it was a few months ago i read that

[SpongeG]

Canadian Tire accelerating rollout of new Concept 20/20 stores this year
TORONTO (CP) - Strong sales growth has prompted Canadian Tire Corp. (TSX:CTC.A) to accelerate the rollout of its new larger-format Concept 20/20 stores this year, says its chief financial officer.

Huw Thomas made the remarks Wednesday at a retail conference sponsored by Scotia Capital (TSX:BNS), noting the auto parts and hard goods retailer plans to undertake 300 store projects by the end of 2009.

"It really does underpin our excitement basically about our future," Thomas told delegates.

Concept 20/20 stores range in size from 65,000 to 100,000 square feet and about 90 per cent of Canadian Tire's existing store portfolio can accommodate the new format - eliminating the need for more land.

Canadian Tire Retail's store investment is $850 million to $900 million between 2005 and 2009 - its current outlook period.

Corporate investment per 20/20 store ranges from $400,000 for a basic retrofit, $2 million to $4 million for a more detailed retrofit expansion and $6 million to $8 million for a new store.

About 200 of its 300 planned store projects are expected to be retrofits, Thomas said, adding the new format is proving popular with shoppers.

"Our replacement stores are driving close to a 70 per cent increase in sales - obviously dramatic increase in an existing market," he said, referring to first-year sales growth data.

"Perhaps most pleasing is our retrofit expansion where we've expanded the store and we're seeing close to a 30 per cent increase in sales."

While most of its new stores are earmarked for suburban powercentres, the retailer also plans to pursue more "inner city development."

Observers say Canadian Tire is preparing for sharper competition from big-box rivals Home Depot (NYSE:HD), Rona (TSX:RON) and American home-improvement retailer Lowe's Cos. Inc. (NYSE:LOW) which plans to open its first slate of Canadian stores in 2007.

For its part, Lowe's was scheduled to give an update on its progress in the Canadian market Thursday, while unveiling its new executive team in Toronto.

"I think that Canadian Tire has recognized that they've got a winner in that 20/20 and you want to get them out as quickly as you can before competitors come out with something that might steal some of that thunder," said John Chamberlain, a retail analyst with Dominion Bond Rating Service.

Canada's home improvement market is worth about $28 billion and is considered "the sweet spot of retail."

But Canadian Tire's expansion drive also extends to its other banners including Mark's Work Wearhouse, PartSource and its petroleum sites, Thomas said.

Overall, Canadian Tire will undertake about 500 to 550 store projects between 2005 to 2009 to drive sales and increase its market penetration.

Its accelerated 20/20 expansion comes about a month after it boosted its full-year earnings guidance. It forecasts that earnings per share will be in the range of $4.25 to $4.40, excluding non-operating items, compared with the previous range of $4.20 to $4.35.

Canadian Tire operates more than 1,100 stores, gasoline stations and car washes. Its shares were ahead 98 cents to $69.85 during afternoon trading on the Toronto Stock Exchange.

http://www.cbc.ca/cp/business/060920/b092068.html

[SpongeG]

cabela slated for nov 3 opening
Mark your calendars - the great outdoors surges indoors in a big way when Cabela's opens to the public on Nov. 3.

Many moons have passed since city officials and company honchos huddled over plans for this promised land. Many rains have fallen since contractors, electricians, bricklayers and forklift drivers began their labor on the mammoth structure.

But each day's toil has realized steady progress and when the mountain-sized boutique-for-the-rugged launches its opening at 12703 Westport Parkway that Friday morning, La Vista may never be the same.

According to a press release last week, Cabela's expects 1.5 million people to visit the store annually and, in turn, campers, hunters, hikers, fishing people, birdwatchers, outdoor fashion buffs and the simply curious can expect a tourist and retail paradise - nearly three football fields worth of education, entertainment and shopping.

Along with aisles and aisles of Cabela's catalog items, two major attractions await visitors.

A 22-foot Conservation Mountain stands inside the front doors, with dozens of wild game mounts from Alaska, the Yukon Territory, Wyoming and Canada displayed among waterfalls, streams, a trout pond and even a beaver dam.

A 34,000-gallon walk-through aquarium stocked with hundreds of fish indigenous to the region will sport information kiosks with interactive touch-screens that identify and explain each species.

Company statistics show that half of Cabela's customers come from more than 100 miles away and that an average visit lasts three and a half hours.

Take those numbers and apply some Marketing 101 concepts - it's a turkey-shoot conclusion that since shopping tends to make fellers and gals tired and hungry, nearby hotels and restaurants will prosper and area retailers will be blessed by the accompanying while-we're here-let's-see-what-else-there-is-to-do attitude.

An imperfect but revealing calculation of income generated just by sales taxes shows why city and state officials might also feel economically exalted.

Estimate on the paltry side that each customer (1.5 million of them, remember) purchases $25 of merchandise. Do the math figuring in city and state sales tax - La Vista's at 1.5 percent and Nebraska's at 5.5 percent - and $2.6 million dollars ostensibly clang into city and state coffers.

Unless you're a mayor, a city administrator or an economic forecaster, knowing how government entities will split this enormous amount probably doesn't cruise front and center in customers' minds.

Here's a more understandable concept - 43 days 'till you can cruise through Cabela's.


Other adventures at Cabela's:

· Displays of hundreds of big-game trophies and other wildlife mounts throughout the store - including western prairie, northern woodlands, Alaskan tundra and Arctic ice settings.

· Walking path through landscaped grounds with native trees and plants.

· An indoor archery range where archers can test their equipment.

· Full-service fly-fishing shop

· World-class gun library

· Dog kennels so customers can shop while their animals are cared for.

· Conference rooms and educational center for school groups, seminars, conferences and conventions.

· Bargain cave of discounted merchandise, laser arcade, specialty furniture store, art gallery, country store with homemade fudge.

http://www.bellevueleader.com/site/t...0begins%20here

[SpongeG]

Goodbye department store, hello superstore
Over the coming months, superstores will be beefing up their product lines and stocking their shelves with some surprising items in an attempt to stay on top of the ever-diversifying Canadian marketplace.

In the past decade, department stores have struggled for survival as consumers flocked to a growing number of niche-market superstores. Now, in an ironic twist, superstores are answering customers' demands for one-stop shopping by expanding their product lines.

Retailers have been forced to adapt to changing shopping patterns and intensely fierce competition, Peter Sharpe, the vice president of the Canadian division of the International Convention of Shopping Centres, told delegates Tuesday at their annual conference in Toronto.

"In this competitive environment, it's not surprising to see large retailers adopting and testing new strategies — including diversification, adding new and exclusive lines of products and increasing sales from offshore sourcing — in efforts to win new customers and improve sales performances," Sharpe said.

The supermarket chain Loblaws, for example, is expanding its product line beyond groceries to include a wide range of discount general merchandise items including clothes for men and women.

Wal-Mart has also forced competitors to make changes as it continues to make inroads in the food and pharmacy markets.

Shoppers Drug Mart has responded with plans to enlarge 75 per cent of its existing stores, Sharpe told delegates. The drug store chain has begun stocking a wider variety of general merchandise, including food.

Despite a bustling economy these are trying times for Canadian retailers who must continually attempt to remain relevant to consumers, said Bill Gregson the president and CEO of the Forzani Group, which operates Sport Chek, Sport Mart, National Sports and Coast Mountain Sports.

"The Canadian consumer gives you zero sympathy for being a Canadian company," Gregson said at a panel discussion at the conference Wednesday. He noted that Canadians are unwilling to protect homegrown companies on the basis of patriotism alone if there are better deals elsewhere to be found.

Despite being a late entry to the home improvement market in Canada, U.S.-based home improvement store Lowe’s has big plans for the Canadian market. Doug Robinson, president of the Canadian division of Lowe's, said the company is scouting out new locations and searching for the products that appeal to Canadian consumers.

"It's a very complicated art, it's not a science," Robinson said of carving out a place in the crowded Canadian market.

Meanwhile, Home Depot is attempting to strengthen its position with plans to open more superstores and smaller urban stores that offer a blend of traditional and high-end products.

Rona similarly plans to add convenience stores and gas bars to one-third of its outlets.

Retailers must also contend with e-commerce pressures. Canada’s 2,298 shopping centres have been forced to diversify in part because of moderate but growing competition from online retailers. A 2003 Statistics Canada survey found that an estimated 3.2 million households actively participated in e-commerce, up from 2.8 million the year before.

"Consumers have so much choice," said Indigo CEO Heather Reisman at the conference. She noted that it's a challenge to meet and anticipate consumers' needs. "The reality of the information age is upon us and I think it's a challenge and an opportunity."

http://www.cbc.ca/consumer/story/200...-consumer.html

[officedweller]

I heard that H&M will be leasing the former Caban space on Granville Street (South Granville) in Vancouver.

[miketoronto]

Originally Posted by officedweller

Goodbye department store, hello superstore

I am sorry, but if people want one stop shopping then go to a department store. I see no use in a place like LOBLAWS having to sell clothing and all that stuff. If I want to go clothes shopping, I will go shopping for that.
I don't need to do it while buying food at a supermarket and choosing from what really is not even a good selection.

These stores have gotta focus on what they are good at. For LOBLAWS that is clothing. Trying to be everything does not work in my opinion.

Actually I noticed REXAL DRUGSTORES has a commerical on TV actually stating that all they do is drugstore stuff, and how its so better to go to them where people know about the stuff, then a place like LOBLAWS trying to sell everything. Interesting commerical but very well done, taking a jab at the supercentres who really can't decide what they want to sell.

[Simcoe]

Originally Posted by miketoronto

Actually I noticed REXAL DRUGSTORES has a commerical on TV actually stating that all they do is drugstore stuff, and how its so better to go to them where people know about the stuff, then a place like LOBLAWS trying to sell everything. Interesting commerical but very well done, taking a jab at the supercentres who really can't decide what they want to sell.

But ironically, Rexall stores sell all sorts of foods. One night I walked past a
Rexall pharmacy with a big sign in the window.. it was a photo of peaches, and the text went something to the effect of "Why would you buy your medicines in a place that sells peaches?", and right below it they had stacks of Campbell's Soup on special. They sell cookies, and all sorts of foods now.

[SteelTown]

Lowe's breaks ground with women-friendly Home Improvement Warehouse opening next fall

By Deirdre Healey
The Hamilton Spectator
(Sep 22, 2006)


Nothing is sacred. Not even a man and his home improvement projects.

Women are taking over the do-it-yourself phenomenon and changing it to do-it-for-me.

The men who once marched into a home improvement store in search of nails and 2 X 4s are being replaced by women who sift through counter-top samples and pick out decorative light fixtures before making their way over to the store's installation service counter.

Chamberlains said Lowe's Home Improvement Warehouse is the first to pick up on the important role women play in home improvement, leaving the two other giants, Home Depot and RONA racing to catch up.

"Lowe's is to Home Depot what Target is to Wal-Mart," he said. "The demographic is more female."

Local women will be happy to hear the North Carolina company is opening its first Canadian store in Hamilton next fall. The official groundbreaking ceremony was held yesterday at the future location for the 145,000 square foot store at the corner of Barton Street and Woodward Avenue.

Canadian Lowe's president Doug Robinson told the crowd gathered at the construction site that Hamilton was chosen as the site for the $20.5-million project after a one-year study of the local market. Population growth, home construction, home ownership and renovation spending were all considered, he said. The future Red Hill Expressway also made the chosen corner an accessible location.

Lowe's also plans to build four more stores in Brantford, south Brampton and Toronto by the end of 2007. The expansion into Canada is the company's latest move in the home improvement battle with all three giants -- Home Depot, RONA and Lowe's -- fighting for a piece of Canada's $28-billion market.

While Home Depot is the largest of the three home-improvement goliaths, Lowe's is ahead of the game with its female-friendly stores.

Lowe's stores are eye driven with bright lighting and displays, Torella said.

"They are moving away from the warehouse setting," he said.

Products are pulled out of boxes, assembled and put on display because women like to know what the product will look like in their home. Women are also comparison shoppers and like to stand back and compare one product to another, said Chris Ahearn, Lowe's spokesperson.

The aisles are wider so carts or baby strollers can easily pass each other. And more feminine products like carpeting and cabinets are placed at the front.

[bc2mb]

I can see Lowe's buying Rona within the next few years...

[neilson]

But Rona's gonna be expanding into the USA next year.

[pegcity]

I enjoy choices and options, but do we really need another hardware store. I mean if I can't find it at Canadian Tire wouldn't Rona,Home Depot, Home Hardware or Mcdiarmard lumber have it, now I guess Lowes will have it too. Someone will eventually pack up shop, and i'm thinking it will be canadian.

P.S. Can someone explain to me the Candian Tire smell...

later
pegcity

[Simcoe]

I'm happy that BestBuy is opening a location downtown in Toronto. I don't have a car so have never gone to one. Also handy having a new Canadian Tire store downtown. Could spend hours walking around a CT.

[Rusty van Reddick]

Originally Posted by pegcity

P.S. Can someone explain to me the Candian Tire smell...

later
pegcity

Tires?

[SpongeG]

I like Lowes

go to the one across the border often