Harry Rosen sets sights on Calgary's 'premier' market
'We are very, very bullish' about the city
Mario Toneguzzi, Calgary Herald
Published: Thursday, October 19, 2006
Canada's largest retailer of high-end men's fashion wear is planning an ambitious and
aggressive expansion in the Calgary market to take advantage of the city's growing wealth and youthful population.
"We are very, very bullish about Calgary," said Larry Rosen, chairman and CEO of Harry Rosen Inc., in an interview with the Herald on Wednesday. "This is a city that has really come into its own. It's a very unique city. It's got a very strong business, head-office component. It's got a youthfulness to it. It's a young city.
"We see the opportunities for growing our business in the city. Certainly it's the premier market for growth in the country for us."
The Harry Rosen location in downtown Calgary in TD Square has doubled in business in the last five years and Rosen said the company would like to "substantially" expand the current store from its 18,000 square feet to about 30,000 square feet. It is in negotiations with TD Square administration to expand the store.
"Clearly it's a hot market in getting the kind of space we want downtown. It's not easy, but we'll find a way of doing it. We're determined to do it because there's an old adage 'you've got to fish where the salmon are swimming.' Calgary is an exciting market. It goes without saying it would make perfect sense for us to invest a good chunk of our capital budget here," said Rosen.
The company also wants to open one or two new stores in the city in late 2007 and in 2008.Rosen said the company has seen a "remarkable change" in Calgary since the store's opening more than 20 years ago.
"Calgary has truly become a very world-class city," he said. "The people here are looking for good wines. They're looking for the good cars. They're looking for the good theatre. Good restaurants. And obviously quality clothing. And they're prepared to pay for it. It's a city that's really matured."
Lynne Ricker, marketing professor at the University of Calgary's Haskayne School of Business, said Calgary is a very attractive market for a retail store like Harry Rosen.
"Calgary is a head office town so it's very business oriented and they sell a lot of business clothing. So there's a market for them there," said Ricker.
"The demographics in Calgary are it's younger and quite affluent. That group tends to like higher-quality products. They have an interest in style and lifestyle."
Naheed Nenshi, a marketing instructor specializing in retail at Mount Royal College's Bissett School of Business, said Calgary is an appealing market these days for any retailer because of its booming economy with its population explosion and increasing levels of disposable income.
Harry Rosen has 16 stores across the country, with a presence in seven major markets -- Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa and Montreal.
The company is projected to surpass $200 million in sales this year and is aiming to hit $300 million in annual sales within five years.
Rosen said the company estimates it has about 40 per cent of the quality men's fashion market in the country and is projecting that within five years its share will increase to 50 per cent.
A $50-million capital plan includes the expansion of seven or eight of its existing stores and the opening of four or five more.
"Our intention is to invest a lot of our capital in enlarging our business here in Calgary," said Rosen. "We think the opportunities are wonderful."
The Calgary store was established in the early 1980s and it has expanded three times.
"We have obviously here a major flagship. This is considered one of our key flagship stores," said Rosen.
Rosen said Calgary is a city that has a "great sense of confidence."
"Quite frankly, it's being underserviced in that (high-end retail market)," he said. "That's why we feel so bullish about it.
"We know cities like for example Toronto, where we've operated since 1954, are not going through the renaissance that Calgary is in. . . . It's got a lot of younger executives because there's a lot of people who have been transferred here or moved here. It's quite a cosmopolitan city.
"It is the lowest-taxed jurisdiction in Canada and it has the same number of household incomes over $100,000 as for example Vancouver, which is a city with twice the population. So per capita it's a relatively wealthy city and obviously we cater to the better end. It makes sense that we would expand here.
"One of the things that's happened to Calgary is that it's become so much more sophisticated that they're very appreciative of an international perspective like we bring."
Rosen said the most remarkable change for the company in the last few years has been a growing interest by the younger consumer.
"We describe our clients -- we call them MOPES: managers, owners, professionals, entrepreneurs. And to that we add athletes and entertainers," said Rosen. "We've been very, very pleased in the last five years about how much interest there is in the new younger fashion. And Calgary has been a bit of a leader in that because it is really a remarkably young city."
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Harry Rosen Inc.
- 16 stores across the country in Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Ottawa and Montreal;
- Calgary store located in downtown TD Square;
- The company's stores combine for a total of 240,000 square feet of retail space;
- Annual sales for 2006 are projected to surpass $200 million;
- Company has a $50-million capital plan to add new stores and expand several current ones;
- Founded in 1954 by Harry Rosen as a single 500-square-foot store in Toronto;
- Current average store size is 15,000 square feet.
© The Calgary Herald 2006
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