Canadian Retail Thread

[IntotheWest]

Another sign of the money in Calgary (and AB in general):

http://www.ferrariofalberta.com/

Bentley just opened their dealership in Calgary as well.

Apparently, they expect to sell about 50% of the volume they do in Ontario. In speaking with a Vancouver Lotus/Lamborghini dealer last year, half of all of their sales in the last few years were to Alberta customers.

[Ayreonaut]

I thought Bentley Calgary opened a long time ago, I always heard ads for it on Q.

Edit: Nevermind, I see you were just mentioning that, and your post was actually about Ferrari.

[SpongeG]

my friend and I visited a little print/art shop in yaletown a couple weeks ago and he sells little prints and such some are in the $1000's of dollars and some are a $35 or cheaper

but he said years ago when the dollar was low the Americans would come in and buy all his stuff but its dropped off since than and now he said they have been replaced by Albertans who come in and buy large amounts of what he sells

he said they have so much disposable income compared to Vancouverites and they can afford to buy nice things, since housing is cheaper etc where they are from

so as long as Rich albertans help keep BC alive its all good

[Boris2k7]

Ah, that is a fine example of what economists call a "wealth effect"

[Policy Wonk]

...

[Boris2k7]

Originally Posted by Policy Wonk

...

?

Anyways...

Looks like our retail growth... from two years ago... seems pretty high


Alberta led country for 2006 retail growth
From Herald News Services
Published: Thursday, March 27, 2008

Economy - Canadian retailers rang in profits of $21.8 billion in 2006, up 9.5 per cent from the previous year and the highest level since 2002, Statistics Canada said Wednesday.

The tills were really humming in Alberta, where retail revenue jumped 12.2 per cent to $58 billion and operating profits soared 27.2 per cent, the most of any province.

Nationally, overall revenues were $427.2 billion in 2006, up 5.7 per cent, with the biggest consumer purchases being vehicles and home and garden products, the federal agency said.

Of the total, chain stores saw revenues of $190.3 billion in 2006, up 7.3 per cent, and non-chain stores $223.5 billion, up 4.6 per cent, while non-store sales -- through e-commerce, mail-order and vending machines -- totalled $13.4 billion, up 1.3 per cent.

The 2006 figures are the latest available.


© The Calgary Herald 2008

[Boris2k7]

Canadians extend spending binge
Report says debt obligations can still be met
Eric Beauchesne, Canwest News Service
Published: Thursday, March 27, 2008

Canadian consumers, unlike Americans, not only keep spending and borrowing more, but are also meeting their debt payments. And for the most part, they are expected to continue doing so.

The credit crunch has not put the squeeze on Canadian consumers, with household borrowing still rising at a double-digit pace, which is in contrast to what is happening to consumers south of the border, a major Canadian financial institution said Wednesday.

And despite rising debt levels and the expected slowdown in Canada's economy, CIBC World Markets also anticipates only moderate increases in bankruptcies, mortgage defaults and credit card delinquencies here, which is also in contrast to what's occurring in the U.S. This is due to the strength of Canada's job market, where unemployment is at a modern-day low of 5.8 per cent and employment at an all-time high, CIBC said.

"So far, the credit crunch did not impact the Canadian household credit market in any significant way," CIBC World Markets said in its report. "Household credit in Canada is rising by an annual rate of well over 10 per cent, with both consumer and mortgage credit expanding at a similar rate."

Not only is credit readily available to the average borrower in Canada, the price of that credit has not increased much since the onset of the credit crunch last summer because of the cuts in interest rates by the Bank of Canada, CIBC economist Benjamin Tal, author of the analysis, explained in an interview.

While high-risk borrowers here are being squeezed by the credit crunch just as they are in the U.S., the difference here is that there has not been any surge in such borrowers, he said.

Here, CIBC noted that the level of mortgage debt, which rose by 13 per cent last year, accelerated significantly in the final months of the year and through the first two months of this year.

However, there was a regional gap within Canada, with the strongest growth in the West, reflecting the greater economic strength in that part of the country.

Meanwhile, the ratio of debt to personal disposable income reached an all-time high of 130 per cent in the final quarter of last year as debts rose by three per cent, or nearly double the 1.6 per cent rise in disposable income.

The slump in the stock market and slowdown in the pace of housing price increases also boosted the debt-to-asset ratio to 17.1 per cent, the first increase since early 2006, but still shy of the recent peaks reached earlier in the decade.

The mortgage arrears rate has seen some volatility, but remains at an extremely low 0.26 per cent, CIBC said.

"Note that this trend is very different than the situation in the U.S., where delinquency and foreclosure rates have risen notably in recent months," it said. "There is little doubt that low interest rates played a role here, but even more important was the fact that the labour market has been relatively healthy in recent years."


© The Calgary Herald 2008

[kirjtc2]

Looks like Mac's is coming east...I'm going to miss Mainway. Say what you will about the Irvings, but they ran excellent convenience stores...

Irving, Couche-Tard swing convenience stores deal
Published Friday May 9th, 2008

Retail Energy company handing over Mainways, Blue Canoes and Big Stops to Que. firm
B1
DAVE SHIPLEY
Telegraph-Journal

Irving Oil Ltd. is saying goodbye to its Blue Canoes as it exits the convenience store business in Atlantic Canada and New England.

The privately-owned, Saint John-based energy company is handing over its Mainways, Blue Canoes and Big Stops to Quebec-based Alimentation Couche-Tard Inc. (TSX:ATD.B), North America's second-largest convenience retailer.

Under the 20-year deal, Couche-Tard will lease 252 Irving-owned and franchised stores. The partnership includes fuel and convenience store revenue sharing.

"We think this really is a marriage made in convenience retail heaven," Harry Hadiaris, director of the business to consumer marketing at Irving Oil, said Thursday.

"The partnership will create more growth opportunities for both of our companies in the northeast, including the southern New England states and New York, New Jersey and Pennsylvania."

The Irving convenience stores will be re-branded. Couche-Tard operates its stores under the Couche-Tard and Mac's brands in Canada and Circle-K in the United States. Big Stops will retain the existing branding.

Gas pumps will retain the Irving brand and the family-owned company will continue to supply fuel to the stores.

Hadiaris said the partnership will allow both companies to focus on what they do best.

"It will "¦ give our company the opportunity to focus on our core business of processing and marketing clean fuel to our customers," he said. "Couche-Tard is a world-class leader retailer, they are a leader in our industry. They operate excellent stores."

Irving Oil first partnered with Couche-Tard in 2001. Under that deal, 56 Irving Mainway stores converted to the Couche-Tard brand in Quebec. Couche-Tard operated the stores while Irving Oil supplied the liquid fuel. In 2003, Irving Oil leased 16 stores and stations in Atlantic Canada to the Canadian Tire Corporation.

Michel Bernard, Couche-Tard's vice-president of operations for Eastern Canada, said the acquisition of the 252 Irving stores presents a strategic opportunity for his company to expand its business in the northern United States and Atlantic Canada.

"We had no platform in the north, northeast U.S., now we have platform and we will build from that platform," he said.

As Couche-Tard grows its business, there are opportunities for Irving Oil to supply fuel to new stores.

"Our preferred brand would be Irving," said Bernard.

Bernard said the Irving stores were running at similar productivity levels as Couche-Tard's own stores.

"The sales level is pretty much similar. The average is $1.1 million, about our average in Eastern Canada as well. (The Irving) network is very well operated."

At an average of $1.1 million in sales, the 252 store deal represents annual revenues of roughly $277 million.

It is not know if there will job losses or gains as a result of the deal, which still must receive federal regulatory approval.

According to Irving Oil's website, the company's store network, which includes company-held stores as well as franchises and third-party stores that sell Irving fuel, includes 737 stations in Atlantic Canada, Quebec, Ontario and New England.

That network includes 122 stores in New Brunswick, 72 in Newfoundland and Labrador, 100 in Nova Scotia and 21 stores in Prince Edward Island.

Retail gas analyst Michael Ervin, president of Calgary's MJ Ervin & Associates Inc., said Irving Oil's deal with Couche-Tard is part of a larger industry trend.

"It's a pretty astute move," he said. "They, like other petroleum marketers have begun to see kind of the limits of how far they can take vertical integration.

"When you get to the point of having to account for bags of chips and cans of Coke, I think that's where, quite rightly, most petroleum marketers are beginning to throw up their hands and say 'that's far more than what we really want to get involved with'."

[SpongeG]

we just got humpty dumpty snack mix in BC

kinda weird

[SpongeG]

H&M opens downtown (vancouver) Thursday

Young and trendy expected to flock to retailer's flagship store

With the grand opening of H&M's flagship store downtown Thursday, Vancouverites will see more than just fashion bargains. As the hordes of shoppers now traipsing out to the suburbs to buy from the affordable, fashion-forward store stay in town, we'll see reductions in smog and greenhouse gas emissions, too.

Ever since H&M opened at Coquitlam a year ago, the young and trendy have been driving there from all over the Lower Mainland to find designer clothes at prices they can afford. Everyday shopping at the store has been like the frenzy of the Army and Navy shoe sale.

H&M spokeswoman Laura Shankland said the store was overwhelmed by the consumer interest. On opening day, 600 people lined up before it unlocked the doors. In April, they opened their second store at Lougheed Mall.

Now, she says, the Swedish clothing giant is delighted to launch its biggest Canadian store in the space formerly occupied by Holt Renfrew in Pacific Centre. Shankland hopes the response will be similarly huge.

The first 250 people in line will receive a randomly selected H&M gift card preloaded with a value between $10 and $200.

"We are very excited," she says. "It's an amazing location and it's been such a long time coming."

Acknowledging that crowds in Coquitlam made it tough to get a fitting room, Shankland recommends customers take advantage of the store's 30-day return policy and try clothes on at home.

At 28,660 square feet, the Pacific Centre location is big. Really big. Big enough to house a wide selection of clothes for kids, teens and adults of both genders.

And unlike the Coquitlam store, the downtown location will have H&M's highest-fashion collection featuring the latest in international trends for both men and women, promises Shankland.

Shoes too. "We have a great selection of shoes, everything from your very basic flip-flops to dressy shoes and boots for fall."

For men, the store will carry a Modern classic collection, tailored men's suits made of fabrics from Italy and cashmere sweaters.

When the store opens, it will feature summer fashions highlighting ethnic prints, tropical colours, swimwear and accessories.

H&M has collaborated in the past with international designers and celebrities, including Karl Lagerfeld, Stella McCartney, Viktor & Rolf, Madonna and Roberto Cavalli. This fall, H&M introduces a line from Comme des Garçons' founder and head designer Rei Kawakubo. The collection will feature clothing for women and men, as well as some pieces for children, accessories and an exclusive unisex fragrance.

H&M has 38 stores in Canada: 22 in Ontario, three in Alberta, 10 in Quebec and now three in British Columbia.

http://www.canada.com/vancouversun/n...4-ed421095f5b9

[204]

Apple to Open Vancouver Store Earlier Than Expected, May 24

After years of speculation and waiting, Apple is finally opening its new store here in Vancouver, BC. The grand opening is scheduled for Saturday, May 24 at 10:00 am. Although Apple is known to surprise its fans, this news doesn’t come as a surprise. It comes as a pleasant shock.

Just a month ago (photos), the store was undergoing extensive renovations at 701 West Georgia Street. You may recall that the opening comes more than a month after we were told by two contractors, speaking on condition of anonymity, that the Vancouver Apple is scheduled to officially open on August 19th.

At that time, they noted the date was subject to change depending on ongoing Pacific Centre Mall renovations.

Apple clearly sped renovations and finished early, most likely to prepare its sales terrain for new surprises expected to unfold during Apple’s Worldwide Developer Conference in June. Last week, Apple also opened its largest U.S. store in Boston.

To visit Vancouver Apple store, just enter the lobby at 701 West Georgia Street and you will see the store located across the way from Harry Rosen. You can’t miss it, but just in case you do - here is a map.

http://www.palluxo.com/2008/05/20/ap...pected-may-24/

[SpongeG]

Holt Renfrew plans restaurant, in talks with top chefs

Holt Renfrew is planning to open its first fine-dining restaurant at its downtown Vancouver flagship store by next spring.

But just who will operate that 5,000-square-foot rooftop facility remains the subject of intense speculation. How about Hell's Kitchen celebrity chef Gordon Ramsay?

That's the name bandied about in Vancouver foodie circles these days, but Holt Renfrew president Caryn Lerner would only confirm Tuesday the company is currently negotiating with "a number of different restaurant operators."


Holt Renfrew president Caryn Lerner Tuesday visits the Vancouver store, which is preparing for its first anniversary.
Photograph by : Ian Lindsay, Vancouver Sun

"We are very eager to find the right partner and to open the restaurant," she said in an interview at the Vancouver store.

"We want to find somebody who understands what we're about and can provide the right dining experience for our customers."

Renowned New York chef Daniel Boulud -- now a partner at Lumiere restaurant in Vancouver -- recently revealed he had been in talks to open a Holt Renfrew restaurant in Vancouver, but that deal fell through.

Lerner said it makes sense for Holt Renfrew to open the best restaurant with the best available operator possible.

"We're known as a luxury lifestyle retailer, and we're home to all the world's luxury brands," she said. "I think as we get into the restaurant business, we should have something akin to that on the food side."

If Ramsay takes the Holt Renfrew Vancouver restaurant deal, he would be third celebrity chef to enter the Vancouver market in recent months -- along with Boulud and celebrated chef Jean-Georges Vongerichten, now negotiating to open a new restaurant next year in the Shangri-La Hotel.

"I'm not a restaurateur, but I think what's exciting about Vancouver is there's a real pulse to the city that one doesn't feel anywhere else," Lerner said.

"With the Olympics coming and the strength of the economy in the west, the excitement and buzz in the restaurant industry is only a reflection of other energy that's coming from this part of the country."

She said Holt Renfrew is very happy with its $50-million Vancouver investment, which doubled the size of the Pacific Centre store a year ago to 137,000 square feet.

Lerner said the store's spa, concierge and valet parking services have all been well-received, and noted there has been a "phenomenal" takeup of the expanded personal shopping services -- where consultants personally select merchandise for individual shoppers. Personal shopping sales rose 42 per cent last year over 2006 levels.

Holt Renfrew has three Toronto stores, along with single locations in Vancouver, Calgary, Edmonton, Ottawa, Montreal and Quebec City.

The company will open a new 140,000-square-foot flagship store in Calgary in the spring of 2009.

Vancouver retail consultant David Gray said the new Holt Renfrew store in Vancouver appears to have met or exceeded sales expectations.

"Anecdotally, in my experience, there is still a little bit of an elitist mentality with some staff -- where they kind of size up shoppers as they come into the store," he said. "But I have to say it's a lot better now than it was in the past."

Gray, president of DIG 360, said the expansion of Holt Renfrew has attracted other top-notch retailers to Pacific Centre, including H&M, which opens a new store in the mall on May 22.

http://www.canada.com/vancouversun/n...7-1c45f2ed97d8

[SpongeG]

Teenflo opens Vancouver store

VANCOUVER - Teenflo has launched a Vancouver store with a made-in-Canada women's clothing concept that probably wouldn't have worked in the city 16 years ago, Teenflo Canada president Charles Le Pierres said Tuesday.

The upscale fashion brand - aimed at working women from 25 to 50 - opened its first western Canadian store in Pacific Centre this past weekend and Le Pierres likes its chances in its new market.

"When I first came to Vancouver 16 years ago, the city was more laid back and even women wore shorts and T-shirts," he said in an interview. "But now people here are very much aware of what's going on in the fashion world and they don't want to wear something that was in fashion a year ago."


Teenflo President Charles Le Pierres outside new store in Pacific Centre in downtown Vancouver.
Steve Bosch/Vancouver Sun

The Teenflo brand, which is not aimed at teenagers, was created in Paris in 1975 from the names of the two original founders - Martin and Florence.

Le Pierres and his wife, Judy Richardson, acquired the brand's North American rights in 1990 and currently operate two Montreal stores, with plans to open two new Toronto outlets within the next year.

Teenflo clothes are also sold through retailers like Holt Renfrew in Canada and Bloomingdale's in the U.S. and everything the company sells is made in Canada - specifically by contractors with Ontario manufacturing facilities. Le Pierres said about 80 per cent of Teenflo fabrics are imported from Italy.

He said the company has resisted the temptation to produce its clothes at cheaper prices overseas because quality remains a huge priority.

"We are a high-end brand and we buy very expensive fabric," Le Pierres said. "I know our Canadian contractors can give me top-quality garments."

He said Canadian manufacturers can also produce and deliver clothes to Teenflo faster than Asian producers.

"In China, you need to wait three to four months before you get your goods but in Canada, I can order more pants and get them in two weeks - maybe four to five weeks for jackets," Le Pierres said. "That gives me a much faster turnover and really helps when you know exactly what the market wants right now."

He feels many customers don't realize Teenflo merchandise is produced in Canada but expects when they do, most appreciate the fact the company supports Canada as a place to do business.

Teenflo's concept of quality at reasonable prices includes tops priced from $150 to $225, dresses from $200 to $300, pants from $240 to $275 and blazers from $375 to $450.

http://www.canada.com/vancouversun/n...5-e681d9f5b8e0

[SpongeG]

perhaps starbucks expansion is coming to the atlantic and quebec???

Starbucks Buys Canadian Assets, Development Rights

May 21 (Bloomberg) -- Starbucks Corp., the world's largest coffee-shop chain, said it will buy the assets and development rights from Coffee Vision Inc. and Coffee Vision Atlantic Inc., its licensee in Quebec and Atlantic Canada.

About 40 licensed locations will become company-owned stores, Starbucks said today in a statement. The chain didn't disclose financial terms of the transaction that's set to close Aug. 25.

Starbucks has declined 19 percent in 2008 as U.S. customer visits fell for three straight quarters. Last month, the chain said it will slow U.S. expansion this year after second-quarter profit dropped 28 percent.

Founder Howard Schultz, 54, who was brought back as chief executive officer in January, will focus on retraining employees, developing new products and expanding in Europe and Asia.

Starbucks, based in Seattle, declined 16 cents to $16.68 at 4 p.m. New York time in Nasdaq Stock Market trading. The chain had 900 company-run and licensed stores in Canada as of March 30.

http://forum.skyscraperpage.com/show...=77682&page=68

Starbucks buys Coffee Vision
39 outlets. All based in Quebec and Atlantic Canada

Starbucks Coffee Co.'s push for growth in Quebec and Atlantic Canada now is in the hands of the multinational's Canadian subsidiary.

It announced yesterday it's taking over operation of 39 licensed stores in Quebec and Atlantic Canada from Coffee Vision Inc.

As part of the sale, more than 700 employees are expected to become employees of Starbucks Coffee Canada.

The deal is scheduled to close Aug. 25. Terms were not disclosed.

"I am proud of what we've created in Quebec and Atlantic Canada," said Michael Aronovici, president of Coffee Vision Inc., which in the past decade established 29 Starbucks stores in and around Montreal, three in Quebec City, four in Halifax, two in New Brunswick and one in Newfoundland.

"This is a great time for Starbucks Canada to step in and continue growing the business."

Colin Moore, president of Starbucks Coffee Canada, said Aronovici's company had done "a fantastic job establishing the brand," and the future of the chain in eastern Canada "is very bright."

Including Chapters and hotel locations, there are currently about 50 Starbucks outlets in Quebec and eastern Canada. Across Canada, the chain has about 900 company-operated and licensed stores.

Aronovici said one of the difficulties in establishing the chain here was securing prime real estate during a period of economic boom.

"The real estate market was incredibly tight," he said. "It took a while to gain those superior sites."

U.S.-based Starbucks, which has more than 16,000 stores in 44 countries around the world, reported total revenue of $9.4 billion U.S. and net earnings of $673 million in the fiscal year ended Sept. 30, but recently forecast its first profit decline in eight years because of slowing U.S. sales.

The focus will be on international growth in the next few fiscal years, and Canada will be an important market in that strategy, Moore said.

http://www.canada.com/montrealgazett...e-1b561ef5fc6a

[HockeyFan]

I noticed an ad for Target during some highlights from a hockey game in Medicine Hat.... foreshadowing, or just cross-border advertising?

[Jay in Cowtown]

Originally Posted by HockeyFan

I noticed an ad for Target during some highlights from a hockey game in Medicine Hat.... foreshadowing, or just cross-border advertising?

It was probably the pesticide ... we have our own watered down version of Target, it's Zellers.

[SpongeG]

Retail giants drawn to hot sales market

Local shopping malls set to open big name stores

Despite sales growth slowing down, international retailers continue to see Calgary as an attractive market to set up shop.

Coach, a leading American designer of fine accessories and gifts for women and men with headquarters in New York, will open its first Calgary store -- and second in Alberta -- at the Southcentre Mall by the end of July this year, said Shawn Hanson, general manager of the mall.

"It's a testament to our leasing team and the quality of retailers we're attracting in the project," said Hanson of the southeast mall's current $102-million redevelopment and expansion which will also bring in American retail giants Restoration Hardware and Crate & Barrel.

Coach's store at Southcentre will be just over 2,000 square feet. The store is known for its handbags, women's and men's small leathergoods, business cases, weekend and travel accessories, footwear, watches, outerwear, scarves, sunwear, jewelry, fragrance and related accessories.

Coach, which was established in 1941, also recently opened its first store in the province in West Edmonton Mall.

A recent Retail Sales Outlook report by Kubas Consultants forecast retail sales in the Calgary Census Metropolitan Area to grow by 7.5 per cent this year compared with last year. In 2007, retail sales growth was 8.6 per cent while in 2006 it was a whopping 16.2 per cent.

Total retail sales in the Calgary area are forecast to hit $24.6 billion this year -- up from $22.9 billion last year and $21.1 billion in 2006.

Meanwhile the northwest Market Mall says American Apparel, Ecco Shoes and Shooligans (a children's shoe store) have confirmed they are coming to the shopping centre and will be open later this summer or early fall.

"Retail is so vibrant in Calgary and there is more demand for space from retailers than Calgary is able to supply in available space. So when an opportunity arises, it is great to see the U.S. and European retailers come into Calgary. In 2007, Market Mall saw the opening of Calgary's first H & M and Sephora stores," said Jane Dorsett, general manager at Market Mall.

At Southcentre, Hanson, said "the significance of having a store like Coach (is because) it's definitely complementary to the two deals with the American retailers such as Restoration Hardware and Crate & Barrel. It's a nice complement to those two retailers. But it's a testament to where we're going with our mix. We'd like to see it go to a more mid-high to higher-end level and Coach is definitely a fantastic retailer to help us get there."

mtoneguzzi@theherald.canwest.com

- - -

Southcentre

- First opened in 1974;

- 100 Anderson Road S.E.;

- Retail gross leased area of 925,053 square feet prior to redevelopment;

- Approximately 6.5 million visits annually;

- Retail gross leasable area will increase by 35,000 square feet;

- New retailers to include Coach, Crate & Barrel and Restoration Hardware;

- Total investment in redevelopment is $102 million;

- Redevelopment completion set for July 2010.

Source: Southcentre

http://www.canada.com/calgaryherald/...c-a2d5933ef3d3

[SpongeG]

New American owners plan to freshen up the Bay, Zellers
Hudson’s Bay Co. sold

TORONTO — The Hudson’s Bay Co. has been bought by the owner of upscale American department store chain Lord & Taylor, which plans to expand its brand into Canada and give a fresh approach to both the Bay and Zellers.

HBC, which has a 338-year history that contributed to the exploration and development of large parts of Canada, has been under American ownership since 2006, when it was bought for $1.1 billion by entrepreneur Jerry Zucker.

Since Zucker’s death in April, there had been speculation that HBC would be sold.

The buyer, New York-based NRDC Equity Partners, plans to give HBC operations a major facelift that will expand on the behind-the-scenes work that Zucker had initiated.

NRDC launched a similar plan in 2006 when it acquired the Lord & Taylor group for $1.2 billion in cash and took a bottom-up approach to reworking the image of the company.

NRDC also owns Fortunoff jewellery stores and Creative Design Studios home-decor chain.

The value of the deal hasn’t been publicly disclosed, but representatives for the Bay and NRDC have said it’s “slightly” higher than the initial sale price of $1.1 billion two years ago.

The combined company, to be known as the Hudson’s Bay Trading Co., has 75,000 employees and annual sales totalling more than US$8 billion.

Richard Baker, a principal with the new owner, becomes CEO of Hudson’s Bay Trading Co. and 38th governor of the Hudson’s Bay Co. He said NRDC will make a new investment of $500 million in the project.

“Enormous potential exists by upgrading the offerings at both the Bay and Zellers and by bringing Lord & Taylor, Fortunoff & CDS into the mix,” Baker said.

He said Lord & Taylor is set to launch 10 to 15 stores in Canada, filling a gap in the Canadian retail landscape between the mid-market Bay department stores and the more upscale Holt Renfrew chain.

“We are not closing any Bay stores to open up Lord & Taylor, and the primary focus is to improve the Bay business,” Baker said in an interview.

Those improvements include bringing in more outside brands, improving customer service and broadening product selection, he said, noting that the company will adopt a more competitive approach to gaining market share.

Zucker’s widow Anita Zucker, chairwoman and CEO of the InterTech Group, said NRDC was an excellent fit for the company, with their strong background in retail and real estate.

“The InterTech Group now turns to other global opportunities to continue to build and strengthen our portfolio of companies,” she said in a statement.

Since the demise of the legendary Eaton’s chain, the Bay’s main direct competitor has been Sears department stores owned by Sears Canada Inc. (TSX:SCC), which acquired a few of the Eaton’s locations and added them to its existing chain.

Prior to that, the Canadian department store chain underwent a period of consolidation — including HBC’s acquisition of the Woodward’s and Simpsons chains — that left very few retailers offering the Bay’s broad range of fashion, jewelry, housewares, appliances, furniture and electronics.

“In Canada, the Bay has not had to deal with a lot of competition so we believe they haven’t been as aggressive and focused on service and price and the quality and selection of the merchandise as they could be,” Baker said.

With the plan, the Bay could wind up having several stores, such as a Lord & Taylor location or Fortunoff jewelry store under its roof.

“Many of the (existing) stores are oversized and we think that by bringing in other brands within the box we can make the stores more efficient,” Baker said.

Reworking the face of Hudson’s Bay Co. comes two years after Baker and his team gave operations at Lord & Taylor a fresh coat of paint, revamping everything from advertising to the look of bags and boxes shoppers took home.

“We worked with the vendors in order to bring in all kinds of new brands that weren’t presently sold at Lord & Taylor and we moved the business up-market that way,” Baker said.

“There’s tremendous opportunities at the Bay in order to modify the offering in order to be attractive to a larger segment to the population.”

Zellers — a national discount department chain similar to Target in the United States — will undergo a similar initiative with a focus on lower priced options aimed at creating a “more exciting place to shop,” Baker said.

“Jerry Zucker and his team did a phenomenal job over the last two years, but they were doing a lot of back-of-the-house inventory optimization,” he said. “You can’t just tinker in the background to be more efficient. You have to drive the top-line.”

While Baker denied that any of the Bay locations will switch signs to Lord & Taylor that plan might change, suggested Richard Talbot, the chief executive of retail watcher Talbot Consultants International.

“Having the Lord & Taylor banner in their back pocket, they’ve got an extra option there. They could rebrand the downtown stores Lord & Taylor and keep the suburban stores as the Bay,” he said.

“Over the last couple of years under the Zucker regime, they’ve had a good look at which stores are going to work and what aren’t. They haven’t made any major changes, and that information is going to be available.”

NRDC was a minority owner along with Zucker’s InterTech Group in Hudson’s Bay Co., which was founded in 1670 and is the oldest continually operating company in North America.

As part of the new changes, the company will replace Hudson’s Bay chief executive Rob Johnston with a new leader who will be announced on Thursday. Johnston is a Montreal native who orchestrated the takeover by Zucker.

Both the Bay and Zellers will get new chief executives in the longer term.

http://winnipegsun.com/News/Canada/2...6/6177561.html

[artvandelay]

I think this is good news, the Bay is in desperate need of re-branding and Americans know how to do department stores. I was kinda hoping Nordstrom would expand here though. I hope the downtown stores continue to be known as the Bay, they're the best part of the chain.

Originally Posted by SpongeG

Zellers — a national discount department chain similar to Target in the United States — will undergo a similar initiative with a focus on lower priced options aimed at creating a “more exciting place to shop,” Baker said.

I don't know how shopping in a red & white fluorescent lighted hellhole could ever be exciting. I guess it couldn't get any worse.

[kirjtc2]

One of the possibilities are that the downtown Bay stores would be cut in half, with the other half becoming L&T. Makes some sense to me.

Looks like there will be a lot fewer Zellers stores once this is all said and done...no closings, just rebrandings. Some (the ones in the bigger malls) may go up to L&T, the tiny and small-town-nowhere ones to some new brand.