Canadian Retail Thread

[SSLL]

From: http://www.thestar.com/Business/article/266484
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The downfall of UpCountry

Trendy urban furniture store declares bankruptcy; owner says he overexpanded with two new stores
Oct 13, 2007 04:30 AM
Dana Flavelle
Business Reporter
A well-known Toronto furniture retailer that catered to the hip young downtown crowd has filed for bankruptcy owing millions of dollars and leaving hundreds of customers in the dark.

With its sleek microfibre couches in neutral beige tones and dark Scandinavian-style wooden dining sets, UpCountry built its name on high design at moderate prices.

But the 15-year-old retailer became overextended after investing millions in a new King St. E. store and expanding into two new suburban locations in Vaughan and Burlington, the owner, Terry Iwaskiw said.

"We spent twice as much money as we had planned on the downtown store. And somehow I became convinced that opening two suburban stores was a good idea," Iwaskiw said in a telephone interview yesterday. "We overexpanded."

The company filed an assignment in bankruptcy on Wednesday, said Alan Shiner, a partner in the Richmond Hill firm of Shiner Kideckel Zweig, which is handling the bankruptcy.

The chain owes "millions," Shiner said, adding the final tally is still being calculated.

Hundreds of customers are affected, Iwaskiw said, adding that his main supplier is doing its best to ensure their orders get filled.

Most of what was sold in the store was made to order, he explained. Customers put down a deposit worth 50 per cent and paid the balance on delivery.

Elite Design Furnishings, of Concord, one of UpCountry's biggest suppliers, said it is trying to fill as many customers' orders as possible. "We've already helped a lot of people," said Elite Design's owner Rick De Groot, adding that he'd recently taken over the store in Vaughan Mills that formerly belonged to UpCountry.

But several customers told the Star they've had no luck finding out what has happened to their order.

Zachary Leung, 25, put down a $1,250 deposit on furniture he ordered three months ago from the UpCountry outlet in Vaughan Mills. But the pieces never arrived. A few weeks ago, he says he contacted the manufacturer, Gus Design, and was told his order should have been filled in about two to four weeks.

"It is disheartening to know they were open even up to the day before and still taking deposit money from customers who will obviously never get their furniture. I will most likely never receive mine, and thus am trying to find any means possible to get my deposit of $1,249.72 back," Leung wrote in an email.

Adding to the confusion for customers were reports that Elite Design Furnishings had taken over UpCountry's stores last August. Elite's De Groot said yesterday that's untrue. Iwaskiw said Elite was running the stores on his behalf while he oversaw the renovations at 310 King St. E. But he acknowledged that a formal sale of the company to Elite did not take place.

Leung said he was sorry to see the company close. "The store looks very high-end but when you go in the prices are not cheap but at the same time they're not as much as the real designer stores around the same area," he said.

Iwaskiw said problems fulfilling orders plagued the business after it expanded. "The infrastructure wasn't there to fulfil the orders," he said. "We went from being a $7 million-a-year business to a $17 million-a-year business."

The company's problems aren't related to a soaring loonie or the move to manufacture offshore, Iwaskiw said. In fact, his main supplier, Elite Design, had moved more of its production to China in recent years, he noted. "If we had stayed where we were at 214 King St. E., we would have been fine."

Instead, he moved down the street and plowed nearly $3 million into a loft-style store complete with concrete flooring, soaring ceilings and chrome and glass fixtures, at the same time as he opened two new suburban locations.

For Iwaskiw, who said he founded the business and designed many of the furniture collections, the closing is a sad occasion. "I have a lot of goodbyes to say to the staff."

[SSLL]

From: http://www.theglobeandmail.com/servl...Story/Business
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Jean Coutu has new prescription for Ontario expansion
BERTRAND MAROTTE
October 17, 2007
MONTREAL -- Jean Coutu Group (PJC) Inc. aims to develop a new retail drugstore concept and brand identity as it prepares for greater expansion outside its Quebec home base.

In Quebec, the Jean Coutu pharmacy chain is an institution and the name is among the most easily recognized commercial brands, president and chief executive officer François Coutu said yesterday. But its image outside francophone Ontario, where the Longueuil, Que.-based chain wants to expand, doesn't enjoy a very high profile, and work is under way on a new store concept and branding initiative, he said in an interview.

"We have to do this right and find our place in the sun," he said after the annual meeting where first-quarter results revealed a profit of $8.3-million or 3 cents a share, compared with a loss of $142.5-million or 54 cents a year earlier.

He was reinstated yesterday as president and CEO after his father, founder and chairman Jean Coutu, took the titles back from him two years ago as the company struggled with the difficult Eckerd stores acquisition in the United States.

Jean Coutu's initial intention was to use its U.S. banners - Eckerd as well as Brooks - for its Canadian expansion strategy, Mr. Coutu said. But the recent sale of all of its 1,858 U.S. drugstores to Rite Aid Corp. of Camp Hill, Pa., means Jean Coutu can no longer use those names or store concepts as part of its Canadian growth efforts, he said.

Jean Coutu's goal is to become the major drugstore player in Eastern Canada, but Quebec, with the strongest sales per store, remains the "best investment opportunity" for now, Mr. Coutu told shareholders.

The dominant player in Ontario is Toronto-based Shoppers Drug Mart Corp.

Jean Coutu is on the lookout for acquisition opportunities in Ontario and New Brunswick, but they will most likely be small ones in the near term, Mr. Coutu said.

In the meantime, the company plans to invest $105-million in the coming year on 11 new outlets, 11 store relocations and 44 store expansions and renovations, Mr. Coutu said in his presentation at the meeting. Longer term, the strategic plan calls for 50 new stores by 2010.

[SpongeG]

too bad about upcountry

we had one here for a while and than the franchise owner decided not to continue it or something and changed focus and furniture and opened koolhaus

[kirjtc2]

Fredericton is one of the few anglophone places in New Brunswick with a Jean Coutu store. I always love getting the English Jean Coutu flyers...they read like they were put through Babelfish.

Wouldn't be surprised if they rebranded the one here if they decide to go that route.

[ErickMontreal]

Originally Posted by kirjtc2

Fredericton is one of the few anglophone places in New Brunswick with a Jean Coutu store. I always love getting the English Jean Coutu flyers...they read like they were put through Babelfish.

Wouldn't be surprised if they rebranded the one here if they decide to go that route.

There are six JC in Moncton and a new one is under construction in Dieppe. I think the company doing good business and they easily are able to compete with Shoppers in Moncton area.

[Plus15]

Crate and Barrel will open its second Canadian store and Restoration Hardware its first Alberta store in Calgary, as part of a major $102 million renovation/expansion to Southcentre Mall. See press release below.

http://www.newswire.ca/en/releases/a.../30/c9834.html

[SpongeG]

nice

mavi jeans is opening two stores in Vancouver - their Yaletown store is closed for renovations

gastown



west 4th



and Agent Provocateur is opening soon In Vancouver... On Alberni Street neat Hermes, Tiffany & Co and Betsey Johnson



(someone smeared some kind of brown stuff on the bum part)

[SSLL]

From: http://www.torontobusinesstimes.com/tbt/article/32749
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Canadian Tire opens new "urban" location

New store caters to the Beach-Riverdale customer

November 1, 2007 04:03 PM
JOANNA LAVOIE

You know you're in the Beach when a new Canadian Tire and the neighbouring stores in the same plaza are doggie-friendly.
The new big box store, which quietly opened to the public two weeks ahead of schedule on Oct. 4 at the corner of Leslie Street and Lake Shore Boulevard, is all about catering to the needs and lifestyles of Beach-Riverdale residents.

From an oversized bicycle department, to a shoe and apparel section and a significant lighting and home decor area featuring the new line of Debbie Travis furnishings, the new 70,000-square-foot Canadian Tire store is designed to meet the needs of the downtown Toronto shopper.

This new "urban" location also offers wider aisles, customer assistance pagers throughout the store and a prominent all-terrain vehicle and motorbike display. The new store also has an oversized pet section, a 7,000-square-foot rooftop garden centre as well as a demonstration area for a solar system available for purchasing.

The building itself meets the Toronto Green Development Standard as it was built with locally sourced, energy-efficient materials and operates with environmentally conscious and sustainable features such as special energy reducing lighting and ventilation systems among other things.

Owner Peter Oliver said his new store is no longer just a place for men to congregate on Saturday mornings.

"We are actually appealing to the females because they're the ones (who) usually make the decisions when it comes to big purchases," he said.

"It's good for families and kids and people can bring pets into the store."

To further enhance the shopping experience, Oliver has equipped each department with a computer station so customers can order larger items while they're shopping and pick them up on their way out.

With 483 parking spaces for the entire plaza, Oliver said his goal is to provide more staff members to help customers find what they need and get on with their day as quick as possible.

Canadian Tire's re-focus on the customer is bringing in more business as the average sales per customer is up by 35 per cent for Toronto shoppers, said Oliver while hosting media tour of his new store.

Another way the new area retailer is connecting with local shoppers is by supporting fundraisers and events.

"We definitely want to be a big part of the community," Oliver said, noting he's already sponsored a few school fundraisers and festivals.

Sticking to the traditional definition of the Canadian Tire Corporation store, the new east-end location still has tools, plumbing, auto parts, hockey equipment and tires, however they're now more strategically located within the two-level store.

"Generally speaking, the products and they way they're merchandised in the store is 20/20," said Mike Arnett, president, Canadian Tire retail, referring to the concept of increasing a store's retail footprint at the expense of backroom space to increase sales.

"The difference is that certain products and departments meet the needs of the community."

Arnett said site requirements and available space in the new store is another factor in its layout.

"The property costs more so we have less space and need more efficient use of that space."

With the next closest Canadian Tire location at Victoria Park Avenue and Main Street, Arnett said the new location offers a great opportunity to better service the area.

Canadian Tire will celebrate the grand opening of its new Lakeshore-Leslie location from Nov. 1 to 4 starting with extended hours and special promotions.

On Friday, Nov. 2 from 6 to 9 p.m., SpongeBob SquarePants and his friend Patrick will greet shoppers from 6 to 9 p.m. while Dora the Explorer and Diego from Go, Diego, Go! will meet customers from noon to 3 p.m. on Sunday, Nov. 4. Also on Nov.2, Debbie Travis will take part in an autograph signing at 7 p.m.

On Saturday, Nov. 3, The Philosopher Kings will perform live at 2 p.m.

On Sunday, Nov. 4, the Purina McCann dogs will give a demonstration of canine sports at 9 and 11 a.m. and 1 p.m.

Shoppers can also try their hand at filling their pockets with fistfuls of Canadian tire money that same day from noon to 6 p.m. as they step into the "money" machine for 20 seconds.

[SSLL]

From: http://www.canada.com/nationalpost/n...4-c1011b292bc2
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$60M South Asian-themed mall to be built in Markham
Radhika Chary, National Post
Published: Saturday, November 03, 2007

A Markham developer will next month begin building a $60-million South Asian themed mall, in what will be the largest development of its kind in North America.
"It will be like Gerrard Bazaar but on a much larger scale," David Lam said. ''For me, this is a prime location for South Asians. There are temples, mosques and other places of worship in the vicinity. Many houses are being bought by South Asians and their numbers are growing.''
Mr. Lam, a seafood importer, had originally conceived a Chinese mall for the site, at McNicoll and Markham, but switched gears when the project did not take off and he saw a growing number of South Asians moving into the area.

South Asians form a large portion of immigrants to Canada; emigration from India alone accounts for 12% of all immigrants to Canada.
Modelled along the lines of the Pacific Mall, the 240,000-square-feet Sitara (The Star) will house 500 retail shops, restaurants, food court, a huge banquet and convention centre, a two-storey atrium for pop concerts, several patios and a 1,000-car park facility.
"Look at the history of the Chinese community and the growth of retail stores catering to their needs. The same is happening with South Asians now. There are some projections that by 2017, one out of every six Canadians will be of South Asian origin," he said.
Sitara will claim part of the building housing Lam's Tai Foong International Ltd.

[miketoronto]

Some genereal comments.

Has Greater Montreal not learnt from the mess that is now Edmonton, that building mega malls that size is not good. If downtown Montreal declines as the regions epicentre, I don't want to hear them cry. Because it has been well documented that these malls suck the life out of cities. Downtown Edmonton turned into a ghost town, and Downtown Minneapolis is just hanging on there, and still plays second fiddle to Mall Of America.

They do not need a mall. If people want an all out day long attraction with the largest shopping, restaurants, arcades, and other attractions, they already got it. And its called "Downtown Montreal".


Second, the Canadian Tire store in the Beaches(not really in the beaches).
That store is just promoting suburban sprawl in the inner city. My sisters live in the area, and are not one bit impressed with a huge big box mall in the middle of the inner city. Usually Canadian Tire does not bother me, as they do have nice downtown locations. But this one is bad. First of all, the Eaton Centre location is only like a 5min drive from this Beach location. And there is another Canadian Tire on Danforth that is no more then a 5-10min drive.

There was no need for this Canadian Tire on prime portland property, and ontop of that being built in such a suburban way. This is what not the inner city is about.

And Upcountry. They did it to themselves. They could have done like tons of stores before them, and only have their nice downtown Toronto store. But no, they had to open suburban location and suburban location, and it tanked.
I am sure if people in Burlington wanted Upcountry they could have taken the scary 30min car drive to the design district in downtown Toronto to see them. All this suburban expansion is what kills a lot of stores profits.

[West_aust]

Originally Posted by miketoronto

And Upcountry. They did it to themselves. They could have done like tons of stores before them, and only have their nice downtown Toronto store. But no, they had to open suburban location and suburban location, and it tanked.
I am sure if people in Burlington wanted Upcountry they could have taken the scary 30min car drive to the design district in downtown Toronto to see them. All this suburban expansion is what kills a lot of stores profits.

sometimes it's the other way around, for example, les Ailes de la Mode in Montreal were very successfull when they were in the suburbs only, what tanked the company was their downtown Montreal store

[Rusty van Reddick]

Mike- you can drive from the Beaches to Eaton Centre in FIVE MINUTES? That's hard to believe.

[miketoronto]

Originally Posted by West_aust

sometimes it's the other way around, for example, les Ailes de la Mode in Montreal were very successfull when they were in the suburbs only, what tanked the company was their downtown Montreal store

The downtown Montreal store had trouble, because Les Ailes did not offer unique merchandise. There was already other stores downtown selling Hugo Boss, etc. Les Ailes did not sell anything that screamed "Les Ailes". it was just brands you can find anywhere else.

Mike- you can drive from the Beaches to Eaton Centre in FIVE MINUTES? That's hard to believe.

Try it sometime. I have done the drive from downtown to where that new Big Box development with Canadian Tire is. And it only takes like 5-6min. I have also timed how long it takes to drive to the Beaches(Queen and Woodbine), and it only took us like 10min from Union Station.
Drive is not as slow as you may think, and these stores are not as far apart as one might think.

[MolsonExport]

Originally Posted by kirjtc2

Fredericton is one of the few anglophone places in New Brunswick with a Jean Coutu store. I always love getting the English Jean Coutu flyers...they read like they were put through Babelfish.

Wouldn't be surprised if they rebranded the one here if they decide to go that route.

Yeah, do they still do the whole "You'll find it all...Even a Friend!" crap at Jean-Coutu? Their english-language commercials were so bad, that I almost wanted to self-mutilate in order to divert the pain.

[MolsonExport]

Lac Mirabel: Yikes. Ersatz 'attraction'. Pave paradise, and put it indoors.

[clynnog]

Originally Posted by kirjtc2

Fredericton is one of the few anglophone places in New Brunswick with a Jean Coutu store. I always love getting the English Jean Coutu flyers...they read like they were put through Babelfish.

Wouldn't be surprised if they rebranded the one here if they decide to go that route.

Here in the Ottawa area I believe that they are primarily in the francophone areas on the east side of Ottawa. They are quite active in the Gatineau/Hull area.

[clynnog]

Originally Posted by MolsonExport

Lac Mirabel: Yikes. Ersatz 'attraction'. Pave paradise, and put it indoors.

A rather depressing idea IMHO. I'm in Ottawa and I may go once and that would be it. Its sad to say, but many people's favourite thing to do on vacation is to go shopping...mainly for th exact same stuff as you get back home but saving a few cents.

[miketoronto]

Originally Posted by SSLL

From: http://www.canada.com/nationalpost/n...4-c1011b292bc2

A Markham developer will next month begin building a $60-million South Asian themed mall, in what will be the largest development of its kind in North America.

I live about 5min from where this mall is going in, and I am not one bit happy about it. It is so sad that Toronto's ethnic cultures are boxing themselves into malls.

If I want South East Asian culture, I like going down to Gerrard Street, and strolling the street, etc. And now they basically want to build a mall, put the stores in that mall, and for sure Gerrard Street is going to go into decline, and the only place you will be able to go to get this culture will be a bland warehouse looking mall.

The chinese residents did this with Pacific Mall, and I find it gross. Chinatown has much more of a real feel and culture, then strolling the warehouse interior of Pacific Mall. And now the South East Asians want to follow with a mall.

It is just sad, that little by little Toronto's ethnic groups are leaving their inner city strips to rot, and are obsessed with building themed malls.

It is so cool being able to stroll the streets of Little India, and then go 5min down and enjoy some Greek culture, and then go another 10min down for some Italian culture, etc. And now all that is being lost, as these cultures continue to suburbanize all their business.

[Mille Sabords]

Originally Posted by miketoronto

Second, the Canadian Tire store in the Beaches(not really in the beaches).
That store is just promoting suburban sprawl in the inner city. My sisters live in the area, and are not one bit impressed with a huge big box mall in the middle of the inner city. Usually Canadian Tire does not bother me, as they do have nice downtown locations. But this one is bad. First of all, the Eaton Centre location is only like a 5min drive from this Beach location. And there is another Canadian Tire on Danforth that is no more then a 5-10min drive.

There was no need for this Canadian Tire on prime portland property, and ontop of that being built in such a suburban way. This is what not the inner city is about.

Whoa - did you say "DRIVE" ???

Actually, I'm intrigued with Canadian Tire's discovery of "the city". They have a well designed urban store in Vancouver (which was opened by the Black Eyed Peas, so your Beaches store continues the tradition with Philosopher Kings - a good call, by the way).

I'd like to see some photos or plans of this new Beaches store, if anyone goes by and can post a few it would be much appreciated. I'd like to see how the building relates to the street, how wide is the facade, how tall the building is, etc. The idea of using the rooftop for their garden section sounds like an interesting way to deliver a single-use building that maxes out its property.

We are due for an "urban" Canadian Tire here in Ottawa, it's under construction at Carling and Churchill. I'm not sure how truly "urban" it will be and that's why I'm curious about what you're saying about this one,Miketoronto.

[miketoronto]

You want to see pictures
Just go look at some Canadian Tire in a big box store in the suburbs, and that is what The Beaches store looks like. It is not urban at all.

Canadian Tire I don't think was ever anti-urban. Canadian Tire has always maintained a downtown Toronto flagship on Yonge Street just north of Bloor.
And that is a nice urban style store.

But The Beaches store is a disgrace to the inner city. It is fully a big box suburban style development that does not fit in with the plan the city has set. Infact, the city seems to let a lot of stuff go through that does not fit the official plan goals.