H&M set to make its debut
Ottawa’s retail landscape heats up with arrival of Swedish retail giant
By Janet Wilson, Ottawa Citizen October 14, 2013
OTTAWA — After 24 years in the retail game, Denis Pelletier has never seen anything quite like the hype over the arrival of Ottawa’s first H & M store.
Getting ready for the grand opening on Thursday has almost been a full-time job in itself for the general manager of Bayshore Shopping Centre.
“It’s insane. For nine years, H & M has been playing with the idea of coming here. The demand has been so high, but space has been so tight in Ottawa. Ninety-nine per cent of our space has been full for the last seven to eight years.”
Pelletier expects huge crowds to turn up at noon on Thursday when the store opens and in the days following. On Oct. 17, shuttle buses will whisk shoppers to Bayshore from the ByWard Market at 700 Sussex (just look for the giant H & M shopping bag) and at a station at Carleton University. A VIP bash for more than 600 people takes place Tuesday night with shopping, live musical entertainment, appetizers and cocktails.
Founded in 1947, H & M has become known in recent years for “guest designer” collaborations with the likes of Lagerfeld, Versace, Lanvin, Stella McCartney and even Madonna.
The savvy Swedish retailer began generating buzz months ago in Ottawa by courting area fashion bloggers with trips to Toronto for an exclusive sneak peek at the upcoming fall collection as well as sending surprise gifts.
Last week, Ottawa blogger Marilou Moles of 20YSreceived a flattering charcoal grey dress in the mail from the H & M Canada.
“I’ve been a huge fan of H & M since the brand opened its doors in Quebec in 2006. I’m thrilled it’s finally opening in Ottawa,” says Moles.
H & M has made a name for itself by selling hip, on-trend clothing and accessories for women, men, teens and children at reasonable prices.
Its designer collaborations — French designer Isabel Marant’s upcoming collaboration is expected to appear in select stores next month — and marketing campaigns with Beyoncé, David Beckham and Kylie Minogue have been hugely successful.
There are currently 3,000 stores around the globe in 53 markets with more than 400 in Germany, the retailer’s top market, and 64 in Canada. The retail giant made a net profit of $2.3 billion U.S. in 2012 and is growing by 10 to 15 per cent each year.
“We want to grow and maintain profitability. Our focus is to get the right location and the right people. Recruitment is an essential part of the company,” says Stockholm-based Nils Vinge, head of investor relations for the company.
“There is a global demand. We just opened in Indonesia and there 1,500 people waiting in. We need new stores and new markets and think we can continue this pace. We’re excited to be coming to Ottawa and know that people have been waiting for us.”
H & M has 800 suppliers worldwide and relies on 1,700 factories to produce its goods. The company lists its supply chain on the website, which is rare in the garment industry.
“We have a code of conduct that our suppliers have to sign. We have production offices in 18 countries and buy the right products from the right market at the right time,” says Henrik Lampa, H & M’s product sustainability manager. The company had no connection to the building that collapsed in Bangladesh last April killing more than 1,000 workers, he said.
Independent retailers in Ottawa say they’re not worried about the arrival of the retail giant.
André Schad and his wife, Chantal Biro-Schad, who own Schad and Wolf & Zed on Sussex Drive, a clothing and shoe store respectively, recently underwent a two-month renovation on their joined boutiques. They’ve been on the shopping strip for 17 years and are buoyed by all the attention Ottawa is receiving by the retail industry.
“Anything that brings people downtown is good. We attract a boutique customer and offer a different shopping experience than say an H & M would. We offer one-on-one service in a calm atmosphere and do personal orders,” says Schad.
Biro-Schad says customers know that she doesn’t buy in bulk so that people don’t have to worry about showing up at social events wearing the same outfit.
“You won’t see 10 of anything in the store. I buy cool clothing and carry brands that you won’t see everywhere else. This is why our customers come back to us.”
Marlene Shepherd of Shepherd’s Fashion has been in business for more than 35 years. She recently closed her Bayshore location after 25 years, but has a boutique in the Rideau Centre and a lifestyle destination store at the Trainyards.
“I started in accessories when no one else was in Ottawa. When that market started heating up, I went into clothing. We’ve always been up against competition. I think what’s happening here is great.”
Shepherd isn’t concerned about losing clients to H & M, which she says serves a younger demographic.
“My 17-year-old daughter loves H & M. Their clothing is reasonably priced, so it’s not a big issue if it lasts only one season. My business is all about fit and making women look good.”
Ann-Sophie Johansson, head of design for H & M, dismisses the notion that H & M’s clothing is considered fast or “disposal” fashion.
“We make clothes that last a long time and that are durable. We have some of the highest chemical restrictions on the market. The customer is our boss. We are constantly asking what they want from us.”
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