Bayshore Shopping Centre Expansion | 250000 sq ft | U/C

[Nepean]

This article from the Ottawa Business Journal reports that H&M will likely appear in the expanded Bayshore mall.

Shoring up Bayshore's status
Published on July 11, 2012

By Courtney Symons

Mall's move upscale places it head-to-head with Rideau Centre

In May, gold-coloured Michael Kors tablet cases arrived at the offices of those invited to Bayshore Shopping Centre’s renovation kickoff. The gifts heralded a sparkling event in which attendees were escorted by beautiful, black-clad women down a red carpet and into a furnished outdoor tent to enjoy mimosas amidst a disc jockey and chandeliers.

As its aged parking structures faced pulverization by PCL Constructors’ bulldozers, Bayshore launched itself into the upper echelons of Ottawa retailers – similar to the likes of the Rideau Centre, which it currently lags behind in productivity.

With news that the expanded mall will include an Apple Store and some first-in-Ottawa tenants that have yet to be named, Bayshore’s general manager Denis Pelletier said he expects traffic to increase by 30 per cent and sales to increase above its current $600 per square foot, excluding department stores.
Bayshore is not looking to become a high-end shopping centre with lead tenants, Mr. Pelletier said, but the goal is to create a more sophisticated, cleaner-looking mall with new stores that are well-recognized and appeal to a middle- to upper-class demographic.

“Looking at Rideau Centre’s success in adding to the market, a lot of those retailers are looking for a second store. Having one store in a market like Ottawa isn’t practical,” Mr. Pelletier said. “We’d like to be part of that second wave.”

WHO STANDS TO LOSE

But as Bayshore continues to compete with its downtown rival for size and productivity, some of its current vendors who don’t fit in with the mall’s new esthetic may be left high and dry, according to Barry Nabatian, director of the market research division at Shore Tanner & Associates.

Landlords have the right to choose not to renew leases and underperforming stores or ones with multiple Ottawa locations may find themselves without a renewed tenancy, Mr. Nabatian said.

While declining to name specific retailers, he said that stores at risk could include those that have been with the mall since the beginning and have lost their novelty, or those offering mid-price, mid-quality products – a market already dominated by big box stores.

Mr. Pelletier said, however, that the goal of the expansion is to add brands Bayshore currently doesn’t have, not to eliminate the ones it does.
“We’re very pleased with our mix we have now,” he said.

WHO COULD MOVE IN

Swedish clothing store H&M, which has long been searching for an Ottawa location, will likely show up in the expanded Bayshore, Mr. Nabatian said, along with British men’s clothing store Topman. Forever 21, successful in the Rideau Centre, could also be a candidate for a second Ottawa location.
Bayshore playing copycat doesn’t bother Cindy VanBuskirk, Rideau Centre’s general manager, who said she wouldn’t be at all surprised to see some of the downtown centre’s successful brands show up at its competitor’s mall.

BAYSHORE BENEFITS

Although the Rideau Centre sees about 60,000 people come through its doors daily – three times as many as Bayshore, according to Mr. Nabatian’s estimate – many of those are transit-oriented and don’t amount to sales.
And while Rideau Centre shoppers are often solitary, Bayshore attracts families living in the west end – the region of Ottawa where population is growing faster than anywhere else in the city, with about 4,000 to 4,500 additional residents per year, according to Shore Tanner & Associates’ market research.

Although Bayshore’s expansions might give it an edge on the competition for now, Rideau Centre and St. Laurent Shopping Centre both have plans to grow.

“The three of them move more or less together,” Mr. Nabatian said.

OTTAWA'S LEADING SHOPPING CENTRES

Rideau Centre:

Gross leasable floor space: 763,062 square feet

Sales per square foot: $1,000, according to Shore Tanner & Associates’s Barry Nabatian

Number of stores: 180

Bayshore:

Gross leasable floor space: 746,850 square feet

Sales per square foot: $600, according to general manager Denis Pelletier

Number of stores: 165 currently, with 56 new stores to be added

St. Laurent Shopping Centre:

Gross leasable floor space: 834,869 square feet

Sales per square foot: Roughly $550, according to Mr. Nabatian’s estimate.
St. Laurent could not be reached for comment.

Number of stores: 170

[toaster]

While declining to name specific retailers, he said that stores at risk could include those that have been with the mall since the beginning and have lost their novelty, or those offering mid-price, mid-quality products – a market already dominated by big box stores.

And then they mention H&M and Forever 21 coming in. Those are both mid (to low) price, mid-low quality, but trendy, stores.

[McC]

Originally Posted by toaster

And then they mention H&M and Forever 21 coming in. Those are both mid (to low) price, mid-low quality, but trendy, stores.

I think you're confusing what H&M's product actually is, the clothing itself may be of low quality (e.g., disposable fabrics and cheap stitching), but the 'fashion' isn't, it's hot, new and arrives in every store at the head of the trend (or at least that's the idea of fast fashion -- I'm not super up on what's "it" these days). Their product isn't durable clothing, that's not what they're selling, their product is the latest fashion that you've just seen on TV or a magazine cover, wear it a few times and dispose of it once the heat wears off. So unless the quality of their designs (or the hotness of their fashion and speed at delivering it to stores) has gone downhill, they are not a mid-low quality retailer.

[eternallyme]

Could a main street take over if Bayshore becomes a high-end mall? Perhaps Bells Corners can absorb those stores on a new Robertson Road strip?

[toaster]

Originally Posted by McC

I think you're confusing what H&M's product actually is, the clothing itself may be of low quality (e.g., disposable fabrics and cheap stitching), but the 'fashion' isn't, it's hot, new and arrives in every store at the head of the trend (or at least that's the idea of fast fashion -- I'm not super up on what's "it" these days). Their product isn't durable clothing, that's not what they're selling, their product is the latest fashion that you've just seen on TV or a magazine cover, wear it a few times and dispose of it once the heat wears off. So unless the quality of their designs (or the hotness of their fashion and speed at delivering it to stores) has gone downhill, they are not a mid-low quality retailer.

Like I said, they are stores that sell trendy clothing. But the prices are cheap, and the quality is poor (like you mention). The article mentioned "those offering mid-price, mid-quality products" could be closing. It says nothing about whether the fashion is "hot" or "trendy".

[Lakche]

Demolition continues...

[McC]

You ignored the point I was making: the product isn't the clothes, the clothes are a means of delivering the product; it's like software or entertainment, the silver disc isn't the product it's the software or the entertainment programming contained on the DVD that is the product.

[toaster]

Originally Posted by McC

You ignored the point I was making: the product isn't the clothes, the clothes are a means of delivering the product; it's like software or entertainment, the silver disc isn't the product it's the software or the entertainment programming contained on the DVD that is the product.

Hmm. I actually don't agree with you. I think clothes are the most basic example of a "good" or product. You aren't buying a trend, just like you aren't buying a style. You are buying clothes. Clothes can be trendy or part of a specific style, but you are buying clothes. But I'll agree to disagree

[m3i6]

As long as they sell the tweed blazer with elbow patches, I'll be happy.

[umbria27]

Originally Posted by toaster

Hmm. I actually don't agree with you. I think clothes are the most basic example of a "good" or product. You aren't buying a trend, just like you aren't buying a style. You are buying clothes. Clothes can be trendy or part of a specific style, but you are buying clothes. But I'll agree to disagree

That's not how H&M's customers think. They very much are buying style. Their customers have enough clothes and they throw most of them out before the fabric wears out. Quality is much more than the quality of the raw materials or even the workmanship. Design itself contributes to quality. H&M have made a calculation and said that they can use materials and workmanship of an average level and differentiate on design. (Don't some computer manufacturers, car manufacturers and condo developers do the same thing?) You and I may value workmanship higher, but then we aren't H&M's demographic.

[Lakche]

There's two tower cranes at Bayshore now. I don't have pictures yet...

[MountainView]

Was at the mall today and decided to get a nice pano for all on here to enjoy

[MountainView]

They renovated a few of their entrances with sliding automatic doors as oppose to their dated push doors - it adds a nice look to the entrance. Also, they have a large banner inside on the ground floor stating 300,000 sq ft expansion with 66 new stores. Any idea when these stores will be announced or will they wait until the expansion is at least halfway? Perhaps they haven't even found 66 new tenants yet.

[Harley613]

When I was in high school we used to skip class and play Super Nintendo in Eaton's at Bayshore. Then we'd go to the independent grocer and buy snacks and take them up to the food court and smoke cigarettes. Ahh the memories...everything has changed at Bayshore. She's growing up!

[MountainView]

Progress as of Thursday November 29.

[MichelKazan]

I also posted this in the Retail thread. Looks like H&M is coming to Bayshore this fall.

http://www.ottawacitizen.com/busines...661/story.html

[rocketphish]

H&M coming to Bayshore this fall

April 9, 2013
Courtney Symons, obj.ca

H&M is the latest entrant into Ottawa’s retail market, making a long-awaited announcement Tuesday that the fashion retailer will open its first local location in the Bayshore Shopping Centre this fall.



“Make room in your closets! H&M set to open @BayshoreOttawa Shopping Centre Fall 2013!” read a tweet from H&M Canada’s Twitter account Tuesday morning.

The news made a splash on the social media platform, with many local residents expressing enthusiasm for the arrival of the store.

Bayshore’s general manager Denis Pelletier said that this news has been in the works a long time, with H&M having its eye on the Ottawa market for almost 10 years.

“With the expansion of the shopping centre, we’re adding quite a bit of new retail space and we’re able to provide them the size and the location that they see working well for their concept,” he said. “We’re very lucky to have them. It’s outstanding news.”

Bayshore first announced details of the mall’s expansion last May. Mr. Pelletier explained to attendees at a groundbreaking event that the expansion will add 160,000 square feet of new retail space in order to create 56 new stores including a Target.

H&M will take over 22,000 square feet of space on the first floor of the former Zellers location, according to H&M Canada spokesperson Emily Scarlett.

“We’ve been waiting nine years for this,” she said. “It’s no secret that we’ve been actively looking because we believe so strongly in the Ottawa market.”

A minimum of 18,000 square feet is required for a standard H&M location, she said, and Bayshore finally had that amount of space to offer.

The one-level store will feature ladies, mens, teens and kids departments.

Mr. Pelletier said in the last five years, every survey the mall has done has shown H&M to be the number one requested store, with up to a 20 per cent gap between it and the second place shop.

“I think it’s another step towards what we’ve been trying to accomplish here, which is re-energize the shopping centre and create a really fun shopping environment for folks in Ottawa,” he said.

It’s the second fall in a row that Bayshore has had a large tenant announcement, with an Apple location opening in the fall of 2012. The timing is strategic, Mr. Pelletier said, to gain momentum before the Christmas season.

While an exact date has not been set, the H&M will likely open in October. Ms. Scarlett said H&M will make an announcement six weeks in advance of the official opening date.

Hiring will begin shortly, with between 50 to 60 full- and part-time positions available to service the store, according to Ms. Scarlett.

Upon completion, Bayshore will have a total of 915,000 square feet of gross leasable floor area spread over three floors of commercial retail units. That's up 31 per cent from its current 698,500 square feet, according to a planning documents prepared by Delcan Corp. for Ivanhoé Cambridge, the Montreal-based property management and development firm that owns the shopping centre.

The new H&M location will be the 64th in Canada and the first in Ottawa. Local devotees have been calling for the retailer to expand to the nation’s capital for several years. The message resonated with H&M officials, who told OBJ in 2009 that Ottawa was “at the top of our wish list” of future locations.

The sentiment was also expressed by some of the city’s top retail landlords.

Speaking at the 2011 Ottawa Real Estate Forum, Rideau Centre’s general manager Cindy VanBuskirk said H&M should have Ottawa on its radar, along with retailers such as Crate & Barrel, Victoria’s Secret, J. Crew and Anthropolgie.

“The reason they are not here is either that they are just coming to Canada and just going into the Toronto market, and Ottawa is a year or two away or – as in the case of H&M – they haven’t been able to get the right real estate here. They can’t find the right location, with the right size at the right time.”

First opened as a Swedish women’s apparel store called Hennes in 1947, H&M has expanded with 2,800 stores in 49 markets, according to the company’s website.

http://www.obj.ca/Local/Retail/2013-...re-this-fall/1

[teej1984]

It's sort of too bad that Ottawa's first H&M won't be located DT, but hopefully once Rideau is ready we'll have a nice street-access store to compliment Forever 21 & Urban Outfitters.

[Haussmanniste]

Originally Posted by teej1984

It's sort of too bad that Ottawa's first H&M won't be located DT, but hopefully once Rideau is ready we'll have a nice street-access store to compliment Forever 21 & Urban Outfitters.

Someone correct me if I am wrong but as far as I know, an H&M is planned for the corner of Nicholas and Rideau Street (two-storey space according to preliminary drawings).

[teej1984]

Originally Posted by Haussmanniste

Someone correct me if I am wrong but as far as I know, an H&M is planned for the corner of Nicholas and Rideau Street (two-storey space according to preliminary drawings).

Everyone thought so based on a presentation by the Rideau Centre a few months ago that showed the H&M logo on that building but nothing is confirmed.