Canadian Retail Thread

[SpongeG]

Whistler debates letting London Drugs into the tony town

WHISTLER -- Sheila Dixon doesn't like paying $2 more for a tube of toothpaste in Whistler than she would pay in Vancouver.

The retired travel agent and Whistler resident is happy that London Drugs wants to open a store in the resort town where the median house price is $1.2-million and toilet paper is more than a dollar a roll.

The debate over whether London Drugs should come to Whistler has driven a wedge between small retailers worried about being run out of business and residents hungry for bargains.

Ms. Dixon and others will hear findings at an open house tonight from a recent municipal study that recommends against allowing stores such as London Drugs to open in the ski-resort town.

London Drugs wants to lease a two-level property from Vancouver-based Larco Investments in Whistler village that houses two high-end clothing stores on the main level and a parkade below.

London Drugs president Wynne Powell said the low-profile 1,433-square-metre main level of the proposed store would be less than half the size of other stores and would fit in with the town's West Coast-stylized mix of condos, shops and restaurants.

"We are trying to respect and recognize the ambience of the village," Mr. Powell said. "We worked really hard to build a different look and feel so it will be very much tied back into the village motif."

But the store's proposed 4,250-square-metre lower level requires rezoning to retail from an amended tourist accommodation category.

Shortly after the B.C.-based retailer expressed interest 18 months ago in opening a 5,683-square-metre store steps from gondolas and pricey condos in Whistler's pedestrian-only core of low-rise chichi shops, Whistler's council stalled the rezoning application. It then commissioned a study to poll residents' and tourists' shopping habits to see what shops, if any, need to be added.

Many Whistler businesses suffered in the five years after 9/11 and the resort has a 6-per-cent vacancy rate for commercial space.

Whistler's top planner, Mike Kirkegaard, said the study was in the works and London Drugs' interest put it on the front burner.

"Given the number of years of downturn [in visitor numbers], we were concerned about the economic health of retail as an important component of our overall experience," Mr. Kirkegaard said.

London Drugs' president said a company poll of 219 Whistler residents conducted by Vancouver-based Mustel Group Market Research in late December showed 77 per cent support the opening of a London Drugs in Whistler.

The municipality's study, conducted by Vancouver-based Thomas Consultants and presented to council Dec. 18 and which council will consider for acceptance after gauging open-house feedback, concluded that locals aren't happy with Whistler prices yet prefer locally owned stores over large-format retailers.

"It was hard to find much in the retail strategy that supports the approval of London Drugs," Mayor Ken Melamed said.

Rick Clare owns two photo-finishing shops in Whistler and doesn't support rezoning that would let in London Drugs. He said high overhead costs means he can't compete with the retailer.

"I would have to give notice on my lease and close the doors," said Mr. Clare, who has been in business for 22 years.

Ms. Dixon doesn't have a lot of sympathy for his view.

"Groups of merchants that have been here forever don't want London Drugs because they don't want competition," she said. "They have had a free ride for a long, long time . . . they need to face reality and realize that Whistler people can't subsidize their inefficiencies forever."

Whistler educator Sara Jennings is not in favour of the idea. Last year, Ms. Jennings helped organize a successful drive opposing the municipality's plan to convert the local wastewater treatment plant to a public-private partnership, but she sides with its planners on London Drugs.

"I do agree that we have some problems in Whistler around issues like affordability and that there is a lack of necessities for locals to purchase but there are better ways to fix these problems," she said, adding that there needs to be fewer chain stores, not more, in Whistler.

Realtor Bob Hamilton said it's too late to complain about large corporations moving in, pointing out that Intrawest holds 7,500 square metres of retail space within 15 shops in the town. (Intrawest says it is opposed to London Drugs opening at that location.) And although Nike is opening a 1,066-square-metre store in June, Mr. Hamilton said it doesn't mean big-box stores will want to also.

"There is an economic decision that big business has to make and the volume of potential business is just not in Whistler," Mr. Hamilton said.

The municipality has booked a 500-seat ballroom in the Telus Conference Centre to present study findings to the public at tonight's open house.

http://www.theglobeandmail.com/servl...Story/National

[SpongeG]

H&M Halifax?

Today there are 26 stores in the Canadian division, all located within the provinces of Ontario (19 stores) and Quebec (7 stores). Expansion into Western Canada will start in 2007 with two stores in Alberta at West Edmonton Mall and Calgary's Market Mall. The first store in Greater Vancouver, British Columbia is planned for Coquitlam Centre and is expected to open in Fall 2007. A store will also open in the Halifax Regional Municipality in 2007.

from wikipedia

[Plus15]

LACOSTE is opening a 2,000 square foot store in Calgary at TD Square, across from Harry Rosen. Good for downtown.

[malek]

Rona buys Noble Trade
----------------------------
Rona fait un achat «noble»

7 février 2007 - 10h11
LaPresseAffaires.com
Presse Canadienne




Le distributeur et détaillant de produits de quincaillerie, de rénovation et de jardinage Rona (RON) se porte acquéreur de Noble Trade, une chaîne ontarienne de magasins spécialisés dans les produits de plomberie et chauffage

Le montant de la transaction n'est pas précisé.

La transaction sera financée à même les facilités de crédit existantes de Rona et sa clôture est prévue pour le deuxième trimestre de 2007.

Noble Trade est une compagnie privée issue de la fusion, en 1998, de Trade Plumbing Supplies et de Noble Plumbing Supplies, fondées en 1992 et 1993 respectivement.

Elle a réalisé des ventes d'environ 150 M$ au cours des 12 derniers mois et a connu une croissance annuelle moyenne de ses revenus de 27% depuis 1998, a précisé Rona en annonçant la transaction mercredi.

Noble Trade emploie plus de 300 personnes réparties dans 19 succursales et un centre de distribution en Ontario.

[SpongeG]

Circuit City to close 69 stores, mostly in Canada

RICHMOND, Va. (AP) — Circuit City Stores (CC), the nation's No. 2 consumer electronics retailer, said Thursday it plans to close seven domestic Superstores, a Kentucky distribution center and 62 company-owned stores in Canada to cut costs and improve its financial performance.
The closings will take place over the next six months at an expected total cost of $85 million to $105 million, all to be incurred in the current fourth fiscal quarter, which ends Feb. 28, Circuit City said.

"Because of the intensified gross margin pressures that we saw in the third quarter within the flat panel television category, we launched efforts to accelerate the timing of planned initiatives to improve sales and gross margin, as well as improve the efficiency of our expense structure," CEO Philip Schoonover said in a statement.

Circuit City would not identify the stores to be closed because company officials were in the process of notifying employees. The stores will be closed Monday, then reopen Wednesday for clearance sales, spokesman Bill Cimino said.

The company could not immediately determine the exact number of employees who would lose their jobs. The distribution center employs 12 people, and each of the seven Superstores slated for closing employs about 30 full-time and part-time workers, Cimino said.

Circuit City operates through 643 Superstores and 12 other locations in 158 U.S. markets. The international segment has more than 800 retail stores and dealer outlets in Canada. The company also sells it products online.

The retailer, second behind Best Buy (BBY), also is realigning its management structure. It named a new merchandising officer, David Mathews, who replaces Douglas Moore, executive vice president and chief merchandising officer. Mathews will be head of merchandising, marketing, services and supply chains. George Clark Jr. will lead Circuit City's retail channels.

The seven domestic Superstores slated to close by the end of February generated $71 million in revenue in 2006. Separately, one Superstore will be closed this month in advance of opening a replacement store in the first fiscal quarter of 2008.

Circuit City's distribution center in Louisville was used primarily for store fixtures and signage. A separate distribution facility there primarily used to distribute entertainment software will remain open.

Circuit City's international segment plans to close approximately 62 underperforming company-owned stores in Canada. Each of the stores employed between two to 15 people, Cimino said. The company previously announced that it would return 92 Rogers Plus stores to Rogers Wireless. The combined plans would result in the layoffs of 70 workers in the store support center and in field management, Circuit City said. The international segment also expects to incur costs related to plans to exit product lines and otherwise match up its merchandise with consumer demand.

The company also said it will shut down its Rapid Satellite business, which was being offered for sale. Circuit City purchased the small satellite-television retailer in 2005.

Raymond James & Associates analyst Dan Wewer endorsed Circuit City's restructuring effort.

"We believe it is critical for all consumer electronics retailers, including Circuit City, to lower their cost structure given ongoing pressures on gross margin rate," Wewer said in a research brief. "Frankly, we had anticipated Circuit City would look to close all of its Canadian businesses given their poor performance."

Circuit City has long struggled for market share against Best Buy, and analysts have said each of Best Buy's locations bring in about twice as much revenue as its smaller rival. Both have seen fierce competition from Wal-Mart Stores (WMT), which lowered prices for key products such as flat-panel televisions this past holiday shopping season, forcing Circuit City and Best Buy to follow suit and cutting into their third-quarter results.

Circuit City lost $16 million in the third quarter; Best Buy's third-quarter profit rose nearly 9% to $150 million. Circuit City will report its fourth-quarter results in early April, Cimino said.

http://www.usatoday.com/money/indust...uit-city_x.htm

[malek]

Chatters from Alberta wants to expand in Ontario and Quebec, plans for Quebec is for 50 stores in the next 5 years.

[SSLL]

From: http://www.theglobeandmail.com/servl...Story/Business
_______________

U.S. retailer eyes 'tween' market
Targets La Senza with plan for 100 stores

MARINA STRAUSS
RETAILING REPORTER
Tween Brands Inc., the U.S. specialty retailer that has tried to define fashion sales for girls aged seven to 14, is preparing a major expansion in Canada to challenge Montreal-based La Senza's dominance of the fast-growing market niche.

The U.S. company, which operates Limited Too and its sister chain Justice, has hired a real estate consultant to scout locations in Canada, with an eye to opening its first stores next year. Robert Atkinson, a vice-president at Limited, said the company wants to eventually open as many as 100 stores here, citing the lack of competition.

"It's all the more reason to look at Canada as an opportunity, because of the dearth of competition there," Mr. Atkinson said in a telephone interview yesterday from the company's headquarters in New Albany, Ohio.

Tween Brands, which recorded about $760-million (U.S.) in sales last year in the United States, is entering the Canadian market with few rivals. The only specialty chain in the sector is La Senza Girl, owned by lingerie retailer La Senza, which agreed late last year to be sold to Limited Brands, owner of Victoria's Secret. Limited Brands spun off Limited Too in 1999.

Tweens in Canada have significant purchasing power. According to the 2005 YTV Tween Report, the 2.5 million "tweens" -- children between 7 and 14 -- account for $2.9 billion in retail purchases and, if given the choice, would spend about half of it on clothing.

Parents of "tweens" anticipated spending about $177 on back-to-school clothes and shoes alone for the 2005 school year, the YTV report said.

Limited Too and Justice both look for the latest styles in the fashion world to stock in its stores for a younger customer. Limited Too, a more established name in U.S. malls with 560 stores, is premium priced, while Justice, which was started just a few years ago and now has almost 160 U.S. outlets, offers styles at low prices.

Retail consultant John Winter said that the chains will be a welcome addition to malls and shopping centres, which have been challenged in recent years to cater to that age bracket.

Traditional Canadian retailers have struggled to produce the right styles for a demographic that is notorious for a wide range of body sizes, the result of girls maturing at different rates. Compounding the challenge is the fact that "tweens" tend to want to copy the fashion tastes of teens, even though they don't necessarily fit into clothes made for teens.

Mr. Atkinson said Tween Brands tries to deal with the challenges by carrying 17 different sizes in outlets.

Mr. Winter said the U.S. retailer has other potential opportunities in Canada, beyond cashing in on the paucity of direct rivals. "It's a growing market and there's a growing recognition that tweens have some money to spend."

Chain stores not specifically geared to tweens have started to tune in. Urban Behaviour targets 13-to-22-year-olds, while Costa Blanca is aimed at customers between 18 and 32, but both carry sizes small enough for tween girls. Among the top brands of clothing sought by tween girls are Gap, La Senza Girl, Old Navy and Roxy.

[SSLL]

From: http://www.icsc.org/srch/sct/sct0207/retail_canada.php
________________

CANADA’S RONA TACKLES U.S. HARDWARE MARKET
By Jennifer Hopfinger

CANADIAN HOME IMPROVEMENT retailer Rona Inc. is heading south, with plans to open stores in the U.S. this year. Though the company declined to reveal specific plans and store counts, CEO Robert Dutton has been quoted as saying that Rona plans to acquire small regional chains and independent hardware stores in the eastern U.S. as growth opportunities in Canada slow down.

Rona, which began as a group of small Québec hardware stores, has grown into Canada’s leading retailer-distributor of hardware, home renovation and gardening products. It boasts about 560 franchise, affiliate and corporate stores, generating about C$5 billion ($4.2 billion) in annual sales. In Québec it boasts a market share of about 43 percent, and in Canada overall it claims roughly 15 percent.

Rona continues to bulk up on the home front, buying smaller Canadian retailers while building about 20 new stores annually. The company’s goal is to generate annual sales of C$7 billion by the end of this year. The acquisitions account for much of Rona’s sales growth, but the company has also seen sales rise in its existing stores.

The stores come in three formats: big boxes (anywhere from 75,000 to 170,000 square feet), midsize stores (about 40,000 square feet, plus an additional 10,000-20,000 square feet for attached lumberyards and garden centers) and small specialty shops. This allows Rona to serve markets of varying sizes and customers of diverse types and to anchor open-air and power centers.

Though south of the border Rona will be entering a market dominated by Home Depot and Lowe’s, opportunities abound, observers say. (Home Depot posts some $82 billion in sales annually, Lowe’s about $43 billion.) The U.S. market is still highly fragmented, with independent retailers making up 60 percent of sales volume in the sector. “There is room for consolidation in the U.S., and Rona is very experienced at that,” said Ed Strapagiel, executive vice president of Kubas Consultants, a Toronto-based consulting firm.

“Canada’s economy is about the size of Texas, but the U.S. is 10 times as large,” he said. “As a result, retail in the U.S. is much more regionalized, and regional chains can dominate certain areas.”

Moving to the U.S. is a logical step, suggests John Williams, founder of J.C. Williams Group, a Toronto-based retail consultant firm. “Rona has more or less saturated the eastern and central parts of Canada, and there are limited opportunities in western Canada because of population,” Williams said. “So obviously, they have to look at the U.S. market to grow.”

That said, the current state of the U.S. housing market presents challenges, some say. “The decline in the housing market has been more severe in the U.S. than in Canada,” Strapagiel said. “Rona is going to have to be cautious and move slowly.”

Some analysts say the housing drop may have bottomed out, or at least that it will do so shortly. “Will the housing market be bad forever? Of course, not,” said Howard Davidowitz, chairman of New York City-based Davidowitz & Associates, a retail consulting and investment banking firm. “There are cycles in every segment. Retailers should take a long-term perspective.”

And that is just what Rona is doing. The record for Canadian retailers entering the U.S. is mixed, however. Many have failed. Among the roadkill: hard-goods retailer Canadian Tire, fashion retailers La Senza and Le Chateau, and coffee chain Second Cup. Of course, there have been some terrific success stories as well, including Canadian National Railway, financial services firm Manulife and Canada’s largest convenience store chain, Couche-Tard.

But success in Canada does not always translate into success in the U.S. “Rona may be able to dominate Canada, but it’s going to be another ball game in the U.S.,” Williams said. “Rona is going from the minors to the majors.”

Strapagiel agrees. “Many retail sectors in Canada tend to have oligopolies, where there are two or three strong competitors that operate in a state of tentatively peaceful coexistence,” he said. “In the U.S. the number of competitors multiplies, and their coexistence is not quite so peaceful.”

But Rona is not without experience against these U.S. competitors back home. Home Depot entered Canada in 1994 and currently operates about 140 giant warehouse stores in 10 Canadian provinces. Home Depot Canada is the second-largest home improvement retailer in Canada after Rona. Lowe’s announced plans to open in Canada back in 2005. It will start with six to 10 stores this year and has an eventual goal of up to 100 stores across the country.

This invasion of its home turf has left Rona little option but to expand into the U.S., says Davidowitz. “Rona can’t stand still in the face of this threat from Lowe’s,” he said. “They have to expand somewhere. Moving into foreign countries isn’t easy, but the U.S. and Canada are neighbors who speak the same language, which helps.”

And Rona has some competitive advantages that give it a solid shot at success, he adds. “Rona is a unique home improvement retailer in that they have diverse operations,” Davidowitz said. “They are both a retailer and a distributor, and they have different store formats. Because they have the ability to go smaller in terms of store size — and they’re comfortable doing that, because they’ve already done so successfully in Canada — my guess is that they’ll target smaller communities in a few carefully selected markets. That could be their niche.”

Davidowitz is not alone in that assessment. “Unlike Home Depot and Lowe’s, Rona has a portfolio of banners that include big boxes and corner hardware stores,” said Strapagiel. “Some retailers have one concept, but Rona has many cards to play. If the big-box business goes soft, Rona can focus elsewhere. That’s a real competitive edge.”

Smaller stores offer better service and more-convenient locations, which could drive traffic to Rona, says Fred Miller, president of Germantown, Tenn.-based Consumer Specialists. “Rona could fill a different need in the marketplace,” Miller said. “In our studies we’ve found there is enormous cross-shopping in home improvement.”

[SSLL]

From: http://www.canada.com/nationalpost/n...d-a4f95fb8ce06
___________

Whole foods eyes 2nd location to rival Pusateri's
Avenue and Lawrence
Andy Georgiades, National Post
Published: Friday, February 02, 2007
Whole Foods Market Inc., the high-priced natural food retailer, has its eye on a second Toronto location across from Pusateri's at Avenue Road and Lawrence Avenue, according to a retail-industry source.
For years the proposed site housed a St. Hubert chicken restaurant, along with an RBCbranch and a Mac's convenience store.
But Toronto's condo market remains a hot alternative for first-time buyers priced out of the housing market, and so most developers covet the site, surrounded by trendy boutiques and restaurants, for multi-storey, residential/retail development.

A Whole Foods spokeswoman said new stores are only announced during its quarterly earnings calls. The next one is scheduled for Feb. 21.
Whole Foods' choice of location could also be considered payback of sorts. About a year after Whole Foods opened its first Toronto store in Yorkville in 2002, Pusateri's -- a well-known family- owned luxury food retailer -- opened its second store down the street from the U.S. newcomer. Both stores feature a wide variety of prepared foods, catering to the condominium residents and office towers in the area.
But the new Whole Foods store isn't a done deal. A spokesman for a community group said no formal application has been filed with the city yet. In addition, there's talk that some homes adjacent to the site have already been purchased by a real estate company in order to expand the site.
That would indicate that the project, thought to be a condo/ retail development, could be a lot bigger (and taller) than the community is willing to tolerate, and could draw the ire of local residents concerned about traffic congestion and other matters.
As it is, the neighbourhood isn't starving for food stores, with privately held Bruno's Fine Foods and No Frills already present.
Since opening in Yorkville, Whole Foods has opened additional Canadian stores in Oakville and Vancouver. A second Vancouver site is in development.

[SSLL]

From: http://www.theglobeandmail.com/servl.../Business/home
___________

Winners eyes good fit in shoe market
The new footwear chain would turn up the heat on smaller shops, analysts say

MARINA STRAUSS
From Thursday's Globe and Mail
Winners, the merchant that helped define discount fashion retailing in Canada, is preparing to launch a specialty footwear chain in a move that industry observers say would put added pressure on smaller shoe shops.

The new Winners chain, expected to open its first stores later this year, will be another step in the transformation of the estimated $7.2-billion-a-year Canadian shoe retail sector. Once known for boutiques on main street, the industry is now dominated by low-price giants such as Payless ShoeSource Inc. and Wal-Mart Stores Inc., both U.S.-based.

Winners is looking to change the market even more. "There's an opportunity for them to become a major force in the Canadian footwear market," said John Williams of retail consultancy J.C. Williams Group.

TJX Cos., the U.S.-based parent of Winners, would not comment on its plans. But Fred Waks, chief operating officer of mall owner RioCan Real Estate Investment Trust, told a conference call yesterday that Winners is "establishing" a new shoe concept and "trying to roll that out this year."

Other industry sources said they heard that the first Winners shoe outlets would open for business within the next nine to 12 months.

"We're always testing new growth opportunities," TJX spokeswoman Annmarie Farretta said. "For competitive reasons, we don't share details about our concepts."

TJX has been the focus of attention for other reasons recently.

It was the victim of a massive security breach in mid-December, although it didn't reveal the problem until last month -- well after the Christmas shopping rush. The credit card information of Winners and sister chain HomeSense customers had been stolen from the TJX computer network.

Winners is different from many other discounters because it doesn't rely solely on low-priced products. It also carries clear-outs or excess merchandise from established high-profile companies, such as Ralph Lauren and Prada, at markdowns of up to 60 per cent.

It's often called "treasure hunt" shopping because consumers can't be sure what they might find in the stores.

"There's a gap in the marketplace for a big player" in the so called off-price footwear field, Mr. Williams said.

Winners already has a toehold in the Canadian shoe industry. Its 184 Winners outlets have a shoe department, and the latest plans for separate stores would expand on those offerings. "It's a company that does things very well," Mr. Williams said. "They have wide appeal."

The move comes as the retail footwear industry has experienced tremendous change over the past decade.

According to Kubas Consultants data, Payless and Wal-Mart are now the top two footwear stores in Canada; a decade ago, the most popular banners were the Bay (then a Canadian company) and Aldo (based in Montreal).

"There have been a lot of shoe retailers that went out of business in the last while," retail consultant Len Kubas said.

"We've been getting more of the big box players. It's quite a change."

Winners appears to want to accelerate the change. Still, Mr. Kubas said that the shoe business is a tough one, and not only because of the shifting, fickle tastes of consumers.

Footwear retailers need to stock a wide range of sizes -- a much wider array than in apparel stores. That makes it a challenge logistically to ensure that store shelves are filled. And revenues are depressed because shoe prices have been dropping with the influx of cheap imports.

Still, Mr. Kubas is a testament to Winners' solid record in footwear. He was wearing a pair of Rockport shoes that he bought recently at Winners for $65, while a comparable pair would cost as much as $100 at a conventional store.

[SpongeG]

the foot wear thing should be interesting

hopefully its like Shoe Pavillion - thats a great place for shoes

shoe warehouse is so bad

[pegcity]

Hopefully something like DSW in the States.

[SpongeG]

yeah DSW is ok too

that town shoes outlet thing we have in Canada is ok but it no bargain

they had some shoes on sale for $79.99 - the same pair was on sale in the states for $34.99

[officedweller]

Check out this Vancouver retail report.
It says L'Hermitage (Robson @ Richards) will have IGA Marketplace on the ground floor and Homesense on the second floor!

The old Holt Renfrew location will be divided into nine units reportedly anchored by a 25,000 SF space, with the remainder being filled by smaller units.

Also says the operators of Cardero's are opening a restaurant at 1066 West Hasting and the pedestrian bridge over the road is being removed. Sounds like a big redevelopment of the plaza there - formerly occupied by the lounge / restaurant where there were some shootings - Aqua?

http://www.barnicke.com/client/JJB/J...+End+2006).pdf

Another report:

http://www.bcrelinks.com/download/news/CBREretail.pdf

At ‘The Hudson’ (also on Granville and Dunsmuir), new retailers secured to date include: The Shore restaurant; Parrasuco; Sterling Shoes; Buffalo, Steve Nash Sports Club, Great Canadian News, Starbucks, and a specialty wine store.

[malek]

Proxim wants to expand in the ROC

[SpongeG]

ah homesense ion robson - should be interesting - i wonder if that will start getting more retailers east of granville - it seems west of burrard is where all the big names are maybe some more names will open further east along robson now as more space opens up

[SpongeG]

whoah - they are putting a home depot at 8th and cambie?

[Rusty van Reddick]

Damn you Vancouver and all your downtown grocery stores! I am insanely envious.

[officedweller]

Ah, but lots of downtown folk who actually cook still run out to the Real Canadian Superstore, Safeway or Save-on-Foods to do their big ticket grocery shopping and save the expensive downtown stores for the basics on the way to and from work. I know, it's sad when Safeway and Save-on-Foods are the cheaper option....

**********

SpongeG - one of the problems east of Burrard is the changein teh street grid. West of Burrard, there are nice long blocks for strolling - east of Burrard the grid shifts and you get the stubby ends of the blocks with lots of alleys and streets every 100 ft or so.
Homesense and IGA should be a good anchor cluster to the area - guess that's why Starbucks opened up across Robson. Now only if the Telus employee parkade were faced in retail fronting Robson....

[murman]

Originally Posted by SpongeG

whoah - they are putting a home depot at 8th and cambie?

That's kind of weird, considering their large location just over on Terminal...