Canada's luxury retail market takes off as brands flock to cities
Toronto was one of the top 10 cities in the world last year for luxury store openings
By Rajeshni Naidu-Ghelani, CBC News Posted: Jan 27, 2018 5:00 AM ET Last Updated: Jan 27, 2018 5:00 AM ET
Nearly 40% of the about 50 new international retailers that entered Canada last year are considered to be in the luxury segment. (Nathan Denette/The Canadian Press)
Whether you're in the market for a new $2 million Swiss watch or just window shopping, it's pretty hard to miss a new global luxury retailer setting up shop in one of Canada's high-end shopping streets these days.
There's has been an influx of luxury brands opening flagship stores in major urban centres like Toronto and Vancouver over the last couple of years, with some of notables being French fashion houses Chanel, Hermèsand Swiss watchmaker Richard Mille.
In fact, nearly 40 per cent of the about 50 new international retailers that entered Canada last year are considered to be in the luxury segment of the market, according to Retail Insider.
The industry publication has been tracking national store openings for the last five years.
"In my neighbourhood of Bloor Street and Yorkville, we're seeing this absolute explosion right now of luxury brands," said Craig Patterson, president of Retail Insider, referring to two high-end shopping areas in Toronto.
A combination of increasing wealth, tourism and more affordable prime retail property have made Canada one of the top destinations for luxury retailers, according to analysts.
Toronto ranked 10th in the world last year for the number of luxury store openings, a report by London-based real estate firm Savills showed.
The city was one of only three North American cities to make the top 10 list, along with New York and Los Angeles.
'Affordable' city
As the sale of luxury goods globally continues to decline, retailers are becoming more strategic about where to open shop next.
For example, the cost of prime luxury retail rent in Toronto the third quarter of 2017 was $318 US per square feet per annum, according to the study.
That compares to $3,200 in New York, $700 in Los Angeles and $2,918 in London, which tops the list.
"It's just so much more affordable to come to Toronto then open a secondary location in Manhattan or Beverly Hills," said Jordan Karp, executive vice president of Savills Canada.
"We have the advantage of the Canadian dollar — so that's a driving force."
...
http://www.cbc.ca/news/business/cana...pers-1.4505361