[SSLL]

I thought it might be a good idea to have a thread to post any snippets of retail information that might not necessarily warrant a thread of its own.

Here's an article about Lowe's coming into Canada. They're a big box home improvement chain à la Home Depot or Rona. There are talks of them buying Rona up.
__________________________
Home reno giant Lowe's readies move into Canadian
By MARINA STRAUSS
Thursday, June 2, 2005 Updated at 3:55 AM EDT
From Thursday's Globe and Mail

Retailing and real estate insiders are bracing for the arrival of Lowe's Cos. Inc., a U.S. home improvement powerhouse whose entry into Canada could further shake up an already competitive retail landscape.

Two consultants have been quietly talking to Canadian landlords over the past few weeks, discussing possible deals for superstore sites, and industry sources believe Lowe's, the second-largest U.S. home improvement merchant, is the prospective tenant.

Lowe's could make an announcement about its plans for Canada as early as next week, real estate sources said. A number have been told to expect an announcement on June 6. Lowe's said it does not comment on rumours, but confirmed it has a global growth strategy.

"We have said for a number of years that we are evaluating international opportunities. At some point we will be a global company," said Chris Ahearn, a spokeswoman for Lowe's in Mooresville, N.C.

The chain has been a rival to Home Depot Inc., the world's biggest home improvement retailer, which already operates in Canada.

Lowe's has ridden the wave of women's growing interest in tackling home improvement projects. With annual sales of about $36.5-billion (U.S.) and more than 1,100 stores in the United States, Lowe's courts women by pushing home decor and other related items.

It has designed its mega-outlets in a more inviting manner, with wide aisles and bright lights to ease the stresses of shopping.

In Canada, Rona Inc. of Boucherville, Que., has become a powerful contender to the No. 1 Home Depot also by catering to women's tastes. As well, Rona has grown rapidly in recent years by swallowing rivals.

Now, industry insiders suggest that Lowe's may eventually try to snap up Rona, if it hasn't already attempted such a move.

When Robert Nibock took over as chief executive officer in January, he told analysts that he was interested in international growth.

"Certainly there's a lot of opportunity on the international side, and it's something that we will, over the next year or two, be in the process of assessing," Mr. Nibock said.

Retail consultant John Williams of J.C. Williams Group Ltd., said it may be difficult for Lowe's to establish itself quickly in this country without eventually making a big acquisition.

He pointed to the huge head start of both Rona and Home Depot. "It's a very difficult market," Mr. Williams said. "Rona and Home Depot are so well positioned now . . . They're really duking it out."

Home Depot has 120 superstores here while Rona has 530 outlets of varying sizes.

Sylvain Morrissette, a spokesman for Rona, said he couldn't comment on rumours. But he insisted that Rona has developed a strong strategy to ensure its future.

Rona differs from Home Depot in that it has a wide array of store types, from uber-sized big boxes to small outlets. Lowe's may only be interested in Rona's superstores.

The rumours about Lowe's possible arrival in Canada have created a buzz in the industry. One retailing source said he had heard that Lowe's representatives have tied up as many as a dozen sites for its mega-outlets, and that is has set up a Canadian office. It is expected that the first stores will be in Southern Ontario by next year.

Real estate officials said Michael Goulais and Alan MacKenzie of M. Goulais Consultants in Toronto have been meeting with them to discuss locations for a U.S. retailer entering Canada. "They are producing letters of intent," one official said.

Reached this week, Mr. MacKenzie did not comment on whether he and his partner represent Lowe's and are trying to find store locations for the retailer.

One real estate source said Mr. MacKenzie expressed interest in some of his company's locations, and he is waiting to hear back about offers for the sites.

"We've been told it's an existing American organization that's looking for anywhere from 10 to 15 acres," the source said. "There's not that many, even in the States, American guys that take that size unit. Most of the ones that do take it are already here."

U.S. discounter Target Corp. has also been interested in coming to Canada. But Target CEO Bob Ulrich said last month [May] that it has no immediate plans to expand outside the United States.

Roger Plamondon, regional operations manager for Eastern Canada at Home Depot Canada, said he has heard the rumours about Lowe's but "for us, it's business as usual . . .

"We have been in Canada for 11 years. We are very proud of our performance in Canada. We know the Canadian marketplace very well," Mr. Plamondon said.

Lowdown on Lowe's

In 60 years, Lowe's has grown form a modest collection of North Carolina hardware stores to a megastore chain that rang up $36.5-billion (U.S.) in sales last year.

The big box

Employees: 160,000 (80 per cent of them full-time)

Outlets: 1,100 in 48 U.S. States

Typical store: 117,000 square feet of retail space, selling about 40,000 products

The foundation

Began in the mid-1940s after H. Carl Buchan bought out his brother-in-law James Lowe and rode the postwar boom with a modest chain of hardware/lumber stores. In the 1980s with the rise of do-it-yourself, it evolved into full-fledged building centres.

The design

Make old stores feel like new - spent $500-million (U.S.) last year to upgrade stores and plans to invest $700-million this year.

The big three

Lowe's three-pronged sales strategy:

1-Installations (such as cabinets and decks)

2-Special orders (up to 500,000 items, such as fashion plumbing)

3-Commercial business customers.

The nuts and bolts

Company went public in 1961.

Joined NYSE in 1979 (NYSE: LOW)

Reached billion-dollar-annual-sales mark in 1980.

Over the past 10 years, results have risen steadily - for fiscal 2004, profit reached $2.18-billion on sales of $36.5-billion, 18% better than 2003.

Average customer transaction $63.43 in 2004.

The rivals in Canada

Home Depot, the Atlanta-based chain that entered Canada 11 years ago, has 120 superstores.

Rona, based in Boucherville, Que., has 530 stores of varying sizes.

[warrenmark]

I wonder whether miketoronto will post in this thread?

[Mike K.]

It's odd there's no mention of Home Hardware in the article. They're a big player in this country and an ankle biter for Rona.

[habsfan]

I guess in terms of sales, Home hardware doesn't come close to Home Depot and Rona's numbers!?!?!

[duper]

I live not too far from a Canadian Tire, which is next to a Home Depot, which is Next to a Rona. Whenever I need anything, I always visit them in that order. I've got to stop doing that because Canadian Tire and Home Depot constantly disappoint me--they never have what I'm looking for. I need to start going just to Rona.

Rona is awesome.

[RWin]

I live not too far from a Canadian Tire, which is next to a Home Depot, which is Next to a Rona. Wait a minute, do we live in the same town? Its getting to be that I don't have to travel. Everything is the same (I can barely tell the difference between Canada and the States these days).

Rich

[Saska2ntown]

I'm tired, hungover, and horny... so fuck it...I'm posting this article.

Stonegate huge retail gamble

Gerry Klein
The StarPhoenix


Wednesday, June 01, 2005

The game, folks, is Saskatoon stud. The pot consists of a $40-million power retail centre, a $10-million to $14-million overpass and -- from those reluctant betters along Eighth Street, Broadway Avenue, in Riversdale and in the downtown -- the potential for retail districts to become as cold and bleak as (horror of horrors) Regina's downtown after hours.

All eyes are now on First Pro Shopping Centres, the developer proposing to turn 41 acres of field and pond south of Circle Drive and east of Clarence Avenue into a regional retail centre called Stonegate, which would be anchored by a Wal-Mart and contain a collection of smaller stores.

Most of the councillors have already shamelessly shown their cards. About half are ready to roll over to the Vancouver developer's desire for a development just a little sweeter than one now in existence in the city's northeast.

Preston Crossing was Saskatoon's first comprehensive big-box retail development. When it was proposed, businesses along Eighth Street, in existing malls, in the downtown and on Broadway expressed fear they would be unable to compete. The council of the day agreed to let Preston go ahead, but insisted the development be phased in, with retail studies done before building continued to be sure there was no damage to the city's existing industry.

Preston Crossing also had strict controls -- set out in a zoning law referred to as a direct control district (DCD3) -- which insisted 63 per cent of the 47-acre plot be big-box stores of at least 100,000 square feet and most of the remainder be stores greater than 10,000 square feet. The developer is now looking to complete Preston Crossing's third stage with those smaller stores.

First Pro initially insisted it wanted to set its own rules, but city hall balked. Councillors sent administrators back to the drawing board, where they came up with a compromise limiting the big box to 50 per cent of the site and allowing First Pro to build nine smaller stores. The return on smaller stores is greater for the developer, and First Pro insisted it needed more small stores in order to pay its $2-million share of a new overpass at Circle and Clarence.

Representatives of the city's vibrant retail sector warned that allowing First Pro to have more small stores would snowball, as Preston Crossing would demand equal treatment, and a third so-called "power centre" development -- this one on a 32-acre, city-owned site on the west side -- would also need small stores to compete.

In fact, when Preston Crossing's third phase is added to First Pro's Stonegate development, the city's west-side site and a new retail expansion planned for University Heights, Saskatoon potentially has 1.3 million square feet of new retail space coming on stream in the next five years -- more than a third of the size of the West Edmonton Mall, a development that dealt a severe blow to that much larger city's downtown.

Saskatoon, unlike the Alberta capital, is going through a period of modest growth at one per cent a year.

So here are First Pro's betting choices: go back to its original position that it alone should determine the rules for development; go with the compromise it reached with city hall for a deal just slightly sweeter than Preston Crossing's; hedge its bets by asking for some smaller stores (that is, seven instead of nine); or take the safe route, ask for the DCD3 zoning deal the city has already agreed to for Preston Crossing and be assured of a successful vote?

As of Tuesday, the die has been cast (pardon the mixed metaphor). First Pro is going for the controversial proposal for nine small stores. It will likely garner support from half of council, and bet the majority won't be swayed by the existing retail representatives, who are now able to lobby relentlessly all month, pointing to the dangers of the West Edmonton Mall and the spectre of Regina's downtown.

The question is will councillors see the big (1.3-million-square-foot) picture or focus on the short-term development? It's an all or nothing gamble. If council votes down its own bylaw, it will have to start over from scratch.

[circle33]

/\ wrong thread, buddy, but...

Does a city of less than 250k need three power centers?

[big W]

Nope.

[circle33]

I didn't think so.

[Sacamano]

"I live not too far from a Canadian Tire, which is next to a Home Depot, which is Next to a Rona."


I live not too far from a Rona, Canadian Tire, Rona sandwich

[malek]

Rona has everything, ever seen their hilarious ads?

loose translation:


"Looking for your husband?"

"WE GOT IT!"


hehehe

[duper]

^
Never saw those ads. Must be a Quebec thing.

I read somewhere that Rona is actually beating Home Depot in the Canadian market. I would believe it-- they're excellent.

[malek]

yes they're in french, either on bill boards or on TV.

[miketoronto]

My views.

Chain retail is really getting boring. I was just in Detroit. And in the mall I was in, I think there was maybe 5 stores in that entire mall that I did not have back home in Canada in the mall near me.

Going to the USA use to be a different experience, seeing the different stores, etc.
Now it is almost all the same as in Canada. Kinda boring if you ask me.

Second. I don't get the obsession with Target. Yes I am obsessed with certain stores when I visit the USA, like Marshall Fields.
But Target. Come on, it looks just like ZELLERS, and sells the same crap we get at home already. They sell cleaning stuff, and cheap clothing. I just don't get the obsession with Target, when it is no different then a WOOLWORTHS or ZELLERS. Just don't get it when people in Toronto make weekend trips to go shop at Target. ITS A ZELLERS WITH A DIFFERENT NAME. My mom agrees with me to about that.

Third. Canadian cities better shape up when it comes to protecting the core city shopping districts. We have come far with protecting and nuturing our downtowns in the face of suburban malls. It would be a shame for our downtowns to lose out now, like that article on Saskatoon, etc.

But really I wish we could ship out some of the American chain stores and nuture home grown chain stores(if we must have chains in every single place). Because the selection now between the USA and Canada is very slim. Soon there will be no need to even go to the USA for a slice of something different.

And the European chains are no better. H&M, MANGO, ZARA. Soon there will be no need to visit Europe. Because all their stores will be in the Eaton Centre anyway. I will admit I have bought pants from ZARA($120.00 buck pants down to $30.00. Had to buy). But still, lets nuture some Canadian stuff for once, again.

Canada use to have such a proud retail history and unique stores. Now that is almost all gone.

Some interesting notes though.

Le Chateau manufactures something like 50% or 60% of their clothing in Canada.

Hudson's Bay Company the oldest corporation in North America, is totally redoing their downtown stores now, to make them more classy and bring them back to the 50's heyday attractions they once were in many of our cities and still are to some extent. So far the renovations at the downtown Toronto store are amazing.

[harls]

My mom agrees with me to about that.



That's all I had to hear.

[CorporateWhore]

well if mike's mom says so, it has to be true.

[hackunion]

Soon there will be no need to visit Europe.

Hahahaha.

[harls]

What I really want to know is why Target isn't good enough to be CAPITALIZED.

[MTL-514]

H&M, MANGO, ZARA. Soon there will be no need to visit Europe. Because all their stores will be in the Eaton Centre anyway.

although it is not a widespread phenomenon, there is still a dying breed of travellers out there who actually go to europe for reasons other than their selection of chain stores.

[CMD UW]

/\ yep....

I would also like to add that Canada doesn't have a great selection of department stores like they do in the US.....Neiman Marcus, Macy's, Nordstroms et al. are stellar department stores, much better than anything in Canada.

[Holden West]

although it is not a widespread phenomenon, there is still a dying breed of travellers out there who actually go to europe for reasons other than their selection of chain stores.

Not me--last time I was in France to check out the MONOPRIX stores I had to walk totally around this Louvre thing that was like eight blocks long and was totally blocking my way.

Seriously, though, I've never been to a Target but was always curious to check one out because I've heard so much about the famous designers (Isaac Mizrahi, Michael Graves, Todd Oldham) and that they produce a lot of affordable, cool stylish items, almost like an IKEA. The comparison puzzled me although I haven't set foot in a Zellers for years. Is Zellers that much improved? Or is Target not that great?

[neilson]

Zellers IS Target, Canadian Style.

I wish Target would just get it over with and buy Zellers.

[Mike K.]

Zellers is owned by Hudsons Bay, isn't it?

Anyways, to answer your question, Holden, Zellers is still crap. The only thing I'd get there are batteries and maybe a prescription if there's an inhouse pharmacy. Sears is a step above, and above that is the Bay but the best was Eatons.

[Holden West]

Thanks, Koz; I suspected as much. I'm suspicious of the Target = Zellers (or Woolworths!?) equation. I checked out the Target website and they have lots (http://www.target.com/gp/browse.html/ref=sc_fe_l_4_1041482_10/601-2743381-0359368?%5Fencoding=UTF8&node=13826871) of cool (http://www.target.com/gp/browse.html/601-2743381-0359368?%5Fencoding=UTF8&node=13549401) stuff (http://www.target.com/gp/browse.html/601-2743381-0359368?%5Fencoding=UTF8&node=13836131). What's up, Neilson? Ever been to Zellers or just guessing?

Zellers is part of the HBC empire, along with Home Oufitters and Designer Depot.

I have shopped in Zellers. I bought a litre of motor oil there in 1988 or '89.

CMD UW, those US stores are truly amazing but wasn't that Eaton's last marketing gasp--desperately trying to emulate the upscale US department stores? Failed miserably and was the final nail in the coffin.

[hackunion]

^ Aubergine! :)

[neilson]

Thanks, Koz; I suspected as much. I'm suspicious of the Target = Zellers (or Woolworths!?) equation. I checked out the Target website and they have lots (http://www.target.com/gp/browse.html/ref=sc_fe_l_4_1041482_10/601-2743381-0359368?%5Fencoding=UTF8&node=13826871) of cool (http://www.target.com/gp/browse.html/601-2743381-0359368?%5Fencoding=UTF8&node=13549401) stuff (http://www.target.com/gp/browse.html/601-2743381-0359368?%5Fencoding=UTF8&node=13836131). What's up, Neilson? Ever been to Zellers or just guessing?

Zellers is part of the HBC empire, along with Home Oufitters and Designer Depot.

I have shopped in Zellers. I bought a litre of motor oil there in 1988 or '89.

CMD UW, those US stores are truly amazing but wasn't that Eaton's last marketing gasp--desperately trying to emulate the upscale US department stores? Failed miserably and was the final nail in the coffin.

Yes, in 2002 I went to numerous Zellers locations in the GTA while in town for World Youth Day.

[duper]

^
Numerous Zellers locations while here for World Youth Day. Are you a conaisseur of discount department stores?

[Rendar]

CMD UW, those US stores are truly amazing but wasn't that Eaton's last marketing gasp--desperately trying to emulate the upscale US department stores? Failed miserably and was the final nail in the coffin.

No, it wasn't.

You have to go back to the early 90s to see what was going wrong with Canadian department stores. In the case of Eaton's, they used to kick ass. Then the dip-shit spoiled grandsons decided that certain departments weren't making enough money so they had Eaton's stores go to 75% clothing. SEVENTY-FIVE percent! That's outrageous considering the high volativity of the fasion market.

Then they decided that Canadians didn't want sales and started the whole 'Warehouse Direct' thing. It didn't work. Eaton's was a department store, not a Winners.

Their last push could have done something, but by that time there just wasn't enough money kicking about to help the store.

After Sears took over Eaton's, there was again a chance, but Sears just wasn't interested enough. Plus they relaunched the brand AFTER the holiday season which was idiotic. The Aubergine commercial was brilliant, but unfortunately for most people inbetween Vancouver and Toronto, it didn't really mean much.

What Eaton's should have done is renovate all their stores just as HBC was doing at the time, keep their awesome selection, and make it a destination.

[neilson]

^
Numerous Zellers locations while here for World Youth Day. Are you a conaisseur of discount department stores?

You got that right.:blush:

[Holden West]

Yes, in 2002 I went to numerous Zellers locations in the GTA while in town for World Youth Day.

Jesus, were you being punished for breaking curfew or something?

I like the music in the new Zellers commercials:
"The Littlest Birds" by the the Be Good Tanyas (http://music.barnesandnoble.com/search/product.asp?userid=Vx4966aBei&EAN=67003024525&ITM=2).
"When The Night Feels My Song" by the Bedouin Sound Clash
So they're trying to improve their image. Maybe they should start with the crap they sell. Har!

Rendar, you are correct, especially about the grandson's incompetence. But there was probably nothing anybody could have done to ward off the Wal*Mart tsunami. But I'm certain they were trying to take it more "upscale" by ditching the small goods and focussing on the fashion/home furnishings core.

The fact we disagree is a good example of their muddled marketing.

[Rendar]

I have a thesis that I dug up from the UofT that was on the fall of Eaton's, but I'm not sure where it is. It was a very interesting read.

[miketoronto]

Eatons made some bad choices which helped lead to it's falling as a retail empire.

EATONS expanded way to much. And sadly one of their moves that helped their downfall was their pride in downtowns.
EATONS opened department stores in downtowns of many small cities, that just could not support department stores anymore. Ontop of that they built mini Eaton Centres in these small cities. And that lead to massive loss of money as these malls just could not compete.

Eaton Centre worked in Toronto. But it did not work in Brantford, Kitchener, Peterborough, and other cities they built these malls in.

The EATONS family just did not care anymore, when it comes down to it.

The Downtown Toronto EATONS was "the grand lady" of them all. SEARS while maintaining a nice store, really did not use the downtown store to their advantage. Yonge Dundas is a huge money making spot. But SEARS just does not care.

The SEARS store in downtown Toronto is still in many ways an EATONS, as regular SEARS stores don't have the selection the downtown SEARS has or $200 shirts. But SEARS really could have done even more if they wanted to.

SIMONS is our next major Canadian store I think. SIMONS seems to be expanding slow and making money. I hope they don't expand everywhere as they are a special treat when you go to Quebec. But I think they may be the next famous family run retail store in Canada. But thats because the family cares about running a good store.

The EATONS thing though is just a disgrace to Canada if you ask me. How we let a national icon like that go down, is just sad.
My mom remembers when she was dating my dad and she would come to Toronto to visit him. The main thing you had to go was go to EATONS downtown.
That place was a special place, and a legend. Even the newer store that was built when EATON CENTRE was built, still had memories to it, and I remember special trips to that store at Christmas time.

But man EATONS before the family let it go down, knew how to do things. If you ever see the COLLEGE PARK store in Toronto and see the CARLU floor. Man, EATONS was amazing.

[Tony]

Wow.. the crazy CAPITALIZATION of the store names is annoying.

[Rendar]

The downfall of Eaton's started many, many years ago with their dismantling of their catalogue system.

[Mike K.]

"When The Night Feels My Song" by the Bedouin Sound Clash

I concur, good song.

[SSLL]

My views.

I just don't get the obsession with Target, when it is no different then a WOOLWORTHS or ZELLERS. Just don't get it when people in Toronto make weekend trips to go shop at Target. ITS A ZELLERS WITH A DIFFERENT NAME. My mom agrees with me to about that.
----

And the European chains are no better. H&M, MANGO, ZARA. Soon there will be no need to visit Europe. Because all their stores will be in the Eaton Centre anyway. I will admit I have bought pants from ZARA($120.00 buck pants down to $30.00. Had to buy). But still, lets nuture some Canadian stuff for once, again.
----
Le Chateau manufactures something like 50% or 60% of their clothing in Canada.

Hudson's Bay Company the oldest corporation in North America, is totally redoing their downtown stores now, to make them more classy and bring them back to the 50's heyday attractions they once were in many of our cities and still are to some extent. So far the renovations at the downtown Toronto store are amazing.

miketoronto, you crack me up! I think Target is different from Woolworths in that you'd have to travel in a time machine (or go to the UK, Australia, NZ or South Africa) to visit one.

I agree with the Europe comment. Now that I live in London, there are constantly people asking me if the Tesco is behind that big clock tower;)

I didn't know Le Château manufactured so much clothing in Canada. I frankly didn't realize we had that much polyester and mesh in the country!

[Rendar]

I agree with the Europe comment. Now that I live in London, there are constantly people asking me if the Tesco is behind that big clock tower;)

Just to let you know, I'm jealous ;)

I can't get time off of work this year to go to London and it is by far my favourity city :)

[BlackRedGold]

Second. I don't get the obsession with Target. Yes I am obsessed with certain stores when I visit the USA, like Marshall Fields.
But Target. Come on, it looks just like ZELLERS, and sells the same crap we get at home already. They sell cleaning stuff, and cheap clothing. I just don't get the obsession with Target, when it is no different then a WOOLWORTHS or ZELLERS.

If Zellers and Target are the same then why has every Target (or SuperTarget) I've been in, been neat and orderly with well displayed prices while every Zellers I've ever been in has been dirty, disorderly, and cramped? I barely find what I'm looking for in Zellers and if I do find it, there's either no price displayed or the price displayed is confusing as hell.


But really I wish we could ship out some of the American chain stores and nuture home grown chain stores(if we must have chains in every single place). Because the selection now between the USA and Canada is very slim. Soon there will be no need to even go to the USA for a slice of something different.

And the European chains are no better. H&M, MANGO, ZARA. Soon there will be no need to visit Europe. Because all their stores will be in the Eaton Centre anyway. I will admit I have bought pants from ZARA($120.00 buck pants down to $30.00. Had to buy). But still, lets nuture some Canadian stuff for once, again.


But as those big chains from other countries come to Canada, there are new chains being developed in other countries. There is still plenty different in the US. Even the chains tend to be different from country to country.

[miketoronto]

I don't really shop that much. But I do worry about retail, because it is one of the factors in a vibrant streetlife in our cities.

Anyway who needs TARGET etc. I just shop at the normal stores and wait for sales.

I seem to always find something at WAL-MART prices or better, but better quality at regular stores.

It just takes going into the stores and looking.

Example. I was downtown shopping on Yonge. Went into the David Bitton store. Got a pair of black shorts I was looking for. Regular price $79.00. I got them on sale for $18.00. Last years stock. :)

Also on Yonge Street, I went into a really expensive store that was doing a renovation sale. Got a $80.00 shirt for $9.99. I know the prices from that store before the reno sale, and those shirts were $80.00.

THE BAY always runs great sales in the menswear department. I get lots of designer stuff there for cheap. I work there usually at Christmas. So that is when I stock up on clothing also at reduced rates. Got $100.00 pants for 30 bucks with all my discounts.

So like I said. Who needs TARGET. Just shop the normal stores and get good deals. Just takes a nice stroll downtown on the street to find the sales.

[SSLL]

miketoronto, I agree with you. You can often find discounts at almost any store. I don't really see what the point of the last thread was, though. I also don't know how you see Target (sorry, TARGET), as irregular, (or other stores as regular).

The Bay and David Bitton/Buffalo are chains too and populate many malls too (one chain being American, and one Canadian). On the flip side, Target is popular because it mixes in the trendy styles with Wal-Mart style thrift. Give it another chance if you pop on over to Western New York or Metro Detroit next time. I'm sure you'll find a good sale.

On a similar note, someone recently told me they saw on CBC that the big Chapters at 110 Bloor (between Bay and Avenue) will soon become a Winners. What a shame...

[miketoronto]

I find that hard to believe. I don't think a WINNERS will gon on Bloor Street. They have their huge one two blocks down at College.

I shop at the WORLDS BIGGEST BOOKSTORE at Yonge and DUNDAS. Has even more books then CHAPTERS on Bloor.
And was the first big book store, before it became a trend.

I know David Bitton is a chain. But the downtown store is pretty unique has way more selection then a suburban store.
So I don't mind shopping in chains in downtowns. I like to shop at both. Chains and local stores.

[hackunion]

I find that hard to believe. I don't think a WINNERS will gon on Bloor Street. They have their huge one two blocks down at College.

Yes, Winners (ie WINNERS) is coming to Yorkville where Chapters is/was. It's going to be pretty big!

[SSLL]

Chapters Indigo's been trying to sell that site ever since they merged. It's got to be pretty expensive, being on such a visible site. I think an Apple flagship store would be nicer there, or something less common. Winners at College Park is nice, but it's on Yonge St. Bloor-Yorkville is supposed to be swanky fancy schmancy. What a disappointment. I hope the Starbucks stays though.

[Blitz]

The hell's with the capital letters in this thread? If it takes a takeover by Target for Zellers to clean up their messy and poorly run stores, then bring it on.

[harls]

I like the music in the new Zellers commercials:
"The Littlest Birds" by the the Be Good Tanyas (http://music.barnesandnoble.com/search/product.asp?userid=Vx4966aBei&EAN=67003024525&ITM=2).
"When The Night Feels My Song" by the Bedouin Sound Clash
So they're trying to improve their image. Maybe they should start with the crap they sell. Har!




Hey, I was wondering what those catchy songs were.. thanks HOLDEN.

[SSLL]

I wonder where in Toronto they'll be? How many Ronas are in GTA now (hmm...)?
____________________________________
Lowe's to enter Canada
By TAVIA GRANT
Monday, June 6, 2005 Updated at 4:32 PM EDT
Globe and Mail Update

Lowe's Companies Inc. confirmed Monday it plans to open its first Canadian store in 2007, vying with Rona Inc. and Home Depot Inc. in the Canadian home-improvement market.

The Mooresville, N.C. company said it will open as many as 10 stores in Toronto, its first venture outside the U.S.

The Globe and Mail reported last week that Lowe's was believed to be discussing deals for superstore sites and that an announcement was expected today.

The news comes as Canada has seen a multi-year housing and construction boom, spurred by low interest rates and easy credit — a pace of growth some economists say won't last. On the company's conference call, executives said Lowe's growth isn't traditionally affected by changes in the housing market.

“The Canadian economy is vibrant, stable, and our evaluation of the market indicates Lowe's can deliver value and provide meaningful choices to the Canadian consumer,” Greg Bridgeford, executive vice-president of business development, on the call. In the past year, the company has recorded more than 400,000 transactions from Canadians at Lowe's U.S. stores, he added.

The 59-year-old company plans to open six to 10 stores in Toronto in 2007, creating about 1,700 jobs. Each store will cost about $20-million and will be, on average, about 15,000 square metres.

Lowe's aims to differentiate itself from competitors primarily through high-quality customer service, the company said on the conference call.

Long-term plans include the potential for as many as 100 stores in Canada “as the company continues to evaluate additional opportunities for future expansion,” Lowe's said.

Asked about whether the company has been in partnership talks with Rona, an official said that its “primary and traditional way of expansion is through organic expansion.”

Lowe's will establish an office in the Toronto area later this year. It named Doug Robinson president of Canadian operations. Mr. Robinson, 45, joined Lowe's in 2003 after more than 20 years experience in the home improvement industry, the company said.

Lowe's had 2004 sales of $36.5-billion (U.S.) and operates more than 1,100 home-improvement stores in 48 states. It is the second-largest home-improvement retailer in the world.

Lowe's shares rose 97 cents to $57.93 in New York and Home Deport rose 23 cents to $39.95. In Toronto, Rona shares fell $1.83 (Canadian) or 7.1 per cent to $23.85.

[Lone_Ranger]

Yea...more big box stores :no:

[CMD UW]

/\ hey, that's the reality of today......and has been for over 50 years in North America.

[Rendar]

Well, in term of Lowe's, they have some competition from pre-existing hardware stores.

[neilson]

Lowe's will eat Rona; in fact look at the original Lowe's stores and the original Rona stores and how they've both evolved into majority superstores.

Lowe's, eat Rona.

THEN:

Target, eat Zellers.

[harls]

that's one hungry bunch of stores.

[Rendar]

You can tell they're hungry because they're in caps:

TARGET will eat ZELLERS and then HOLT RENFREW will use nuclear cologne to take out MACY'S.

On the home renovation front, LOWE'S will fake with a garden centre and RONA will counter with a nail gun, all while HOME DEPOT and CANADIAN TIRE play chess down by the riverside.

Oh, and don't forget TIM HORTON'S!

[habsfan]

I make it my duty not to buy from Home Depot. I'll just add lowes to that list.

No offense to any americans, it's just that I've got to draw the line somewhere. If none of us support canadian owned stores, Canada will just become the 51st state.(don't you find that it already is starting to look like the 51st state?)

[harls]

Didn't you used to work at Home depot one time, Habs?

[drew]

I make it my duty not to buy from Home Depot. I'll just add lowes to that list.

No offense to any americans, it's just that I've got to draw the line somewhere. If none of us support canadian owned stores, Canada will just become the 51st state.(don't you find that it already is starting to look like the 51st state?)

Personally, I avoid shopping at Walmart for anything.

This has more to do with their business practices than anything else, but I definitely try to shop local first, Canadian second, and so on.

I have noticed that being a "patriotic" shopper on a local or national scale is certainly not important to the vast majority of Winnipeggers.

It's all about price here. And coupons...

[floralieca]

Wasn't Target trying to buy the Hudson Bay Corporation completely and not just Zeller's?

HBC is the last canadian owned stores... I can't believe some of you wishes the transaction is done just to get a Target in your backward. So narrow minded... save a dollar on a pair of short and kill the canadian market.

[SSLL]

There were rumors that Target wanted HBC, and the Globe and Mail actually reported that it was coming "this week". It never did happen. Roots is still Canadian, and the Forzani empire (Sportchek, Sport Mart, Atmosphere, Coast Mountain Sports, Sports Experts, etc.). So is Chapters, though I guess the number of chains is dwindling. But is it worth it to buy something just because it's a Canadian company? I mean, most of the goods sold aren't made in Canada, should that matter as well? Also, an American company, or a Swedish company employs Canadians, thereby pumping money back in. With globalization, does it really matter all that much?

[floralieca]

I'll have to check that, from what I had read, HBC was the last one. It was in that Globe and Mail article.

Like Drew, I try to shop local, then from Quebec and then Canadian, avoiding big chains.

Some might find it old thinking but I'm for a bit of protectionnism in economy and if our governement can't do anything about it anymore with the treaty he sgned, I feel it is my responsability to shop with conscience so that in 20 years, we might still have a bit of canadian industry.

I know alone it won't change anything but if we all decide to accept to pay a bit more for what we buy and buy local, we can change things.

_________________

Damn, I though my english was good but it's hard to explain myself in an intelligent way in a foreign language ! Sorry for all the mispelling and bad sentences.

[drew]

I know alone it won't change anything but if we all decide to accept to pay a bit more for what we buy and buy local, we can change things.



Exactly. This kind of patriotic shopping is prominent in the U.S.A. and has done wonders for their companies, and kept foreign ownership of the market share in check (along with all the protectionalist policies...)

[SSLL]

^But couldn't you argue that it's not patriotism, but just that the American market is bigger, and makes it easier to succeed? Why there is Canadian Content rules in media, but not a similar thing in the US? There are very successful Canadian companies that just have a better business model, and that's why they do well...

Roots is a very good example of keeping it Canadian. Same goes for Harvey's/Swiss Chalet/Second Cup (all part of Cara). And Aldo and La Senza, which are so successful, that it's gone into numerous other countries!

[circle33]

/\ Don't forget Bata. They're in pretty much every country on the planet.

[CMD UW]

as well, Tim Hortons is expanding in the US and has so far been very successful.

[shreddog]

/\ Don't forget Bata. They're in pretty much every country on the planet.
Except of course, in Canada ...

Bata to close last of its namesake stores
By MARINA STRAUSS

From Tuesday's Globe and Mail

Tuesday, March 15, 2005

Bata Ltd. is closing the last of its namesake stores in Canada, marking the end of an era for the Toronto-based family shoe empire as it succumbs to fierce competition from titan Wal-Mart Canada Corp. and other rivals.

The company, which also has headquarters in Lausanne, Switzerland, will phase out its last 30 Bata shoe stores over the next few months — down from a peak of about 250 in the early 1980s, chairman David Marshall said.

[SSLL]

Tim Horton's is growing like a weed in the US...but I don't know if I'd consider it Canadian. It's as Canadian as Sears, I guess. TH started in Canada, founded by a Canadian (hockey player even!), but then sold to Wendy's International. Sears is the opposite, it came in the 50s, but it's been around so long, it might as well be Canadian. I say grant it honorary citizenship.

Bata closing its namesake stores is a surprise too, but it'll keep its Athlete's World stores open in Canada, and will reenter the Canadian market someday.

[SteelTown]

Tim Hortons merged with Wendys, didn't sell it off to Wendys. Ron Joyce (former Hamilton cop) owns a large part of its share, even gained more when Dave Thomas died.

I read about a few weeks ago there's a bunch of investors thinking separating Tim Hortons and Wendys to further maximize their profit.

Investor group buys stake in Wendy's

COLUMBUS, Ohio - For the third time in less than a month, an investor group has purchased a big stake in Dublin-based Wendy's International.

A division of Dutch bank ABN Amro revealed in a filing with the Securities and Exchange Commission that it now owns nearly 5.7 million shares, or more than 5 percent, of the hamburger chain's stock.

The purchase follows similar moves by two private-investment groups.

Jay Anand, a business professor at Ohio State University, said these investors likely see an opportunity to boost Wendy's stock price, perhaps by pressing management to sell its Tim Hortons or Baja Fresh chains.

So it could go back into Canadian hands in the future.

[SSLL]

Yes, it technically merged with Wendy's, but is now a subsidiary. So basically, to save face, it merged, and was not bought out. It's now a wholly-owned subsidiary of Wendy's, though run separately.

From http://www.timhortons.com/en/about/faq.html#three
"Tim Hortons merged with Wendy’s International, Inc. in 1995. While we are a wholly owned subsidiary of Wendy’s, the Tim Hortons chain is still run completely separately from our head office in Oakville, Ontario, Canada."

Whatever, though. Potato, schmotato. It'll always be "Canada" to me

[Doug]

Lowes will be good for competition.

I can't stand Rona - expensive, poor selection and awful service. Revy/Revelstoke went down the toilet when Rona took over.

[harls]

^ don't forget, they're from Quebec too.

[drew]

^But couldn't you argue that it's not patriotism, but just that the American market is bigger, and makes it easier to succeed? Why there is Canadian Content rules in media, but not a similar thing in the US? There are very successful Canadian companies that just have a better business model, and that's why they do well...


True. But you can't argue that the average American considers it a higher priority to look for the "made in the USA" tag than the average Canadian looks for the "made in Canada" tag.

[circle33]

^ don't forget, they're from Quebec too.

You've noticed a theme there, eh?

[SSLL]

Investors take hammer to Rona in wake of Lowe's invasion news
But some analysts say don't be hasty, the arrival of chain could be good news
By CAROLYN LEITCH
Friday, June 10, 2005 Page B11
INVESTMENT REPORTER

News that marquee home improvement retailer Lowe's Cos. Inc. is shopping for locations in Canada has sent shares of homegrown Rona Inc. reeling.

But perhaps investors have been too hasty in hitting the sell button: Some analysts say the arrival of Lowe's is good news for Rona shareholders -- at least for a few years.

Yesterday, Rona shares rose 78 cents to $25.33 on the Toronto Stock Exchange, meaning the stock has tumbled 5.7 per cent since The Globe and Mail reported on June 2 that Lowe's, the No. 2 U.S. home improvement warehouse chain after Home Depot Inc., plans to open big-box stores in Canada, starting in the Toronto region.

When Lowe's confirmed the strategy on Monday, Rona shares fell 7.1 per cent to mark the stock's worst one-day performance since it began publicly trading in 2002. All in all, the news has knocked more than 11 per cent from Rona's market capitalization.

The selloff appears to be overdone in the opinion of Desjardins Securities analyst Keith Howlett, who upgraded the stock to "buy" from "hold" as a result. He is maintaining his 12-month price target of $26. Mr. Howlett says his estimates for Rona's profits over the next two to three years are likely to increase, not decrease.

In a note to clients, the analyst says Lowe's impending arrival, which was confirmed by the company this week, may accelerate Rona's own store-opening plans and acquisitions.

For now Mr. Howlett is keeping his 2005 estimate at $1.45 a share and his 2006 estimate at $1.65, but he says those forecasts could rise if Rona steps up store openings.

He also suggests that the New Brunswick-based Irving family, which controls Kent Building Supplies, could consider selling the chain to Rona in light of Lowe's pending arrival.

Mr. Howlett has looked at the proliferation of Lowe's, Home Depot and Menards outlets in states such as Indiana and Michigan and figures that Canada could support about 400 big-box stores, or double the current number.

But the analyst cautions that Rona's strategy, which includes different store formats for different markets, could be tested when Lowe's gets up to speed in about five years -- or if the Canadian homeowner's obsession with buying and bettering houses cools off.

He also points out that Rona's stock price-to-earnings ratio of about 17.3 times this year's profit estimates is approximately on par with the valuations of its U.S. rivals. As a result of the uncertainties and the fairly rich stock price, he has tagged Rona shares "high risk."

At Canaccord Capital, analyst Benoît Caron says the magnitude of the recent selloff is exaggerated. He points out that Lowe's arrival will involve only six to 10 stores in Ontario for a start.

The Canadian home improvement retail market is valued at about $30-billion a year, Mr. Caron says, and, if it keeps growing at 4 per cent to 5 per cent a year, it would be worth $37-billion by the end of 2010.

"We believe Rona is at least four to five years away from feeling any pain from Lowe's northern expansion plans," he says in a note.

Mr. Caron points out that the market has not doled out harsh treatment to the shares of Sears Canada or Canadian Tire, even though the retailers sell power tools, paint, gardening supplies and other items that people use to fix up their homes.

He adds that Rona's most lucrative market is in Quebec, and he believes Lowe's is more likely to venture into Western Canada before it tackles Rona on its home turf.

He figures that Rona's strategy of operating under specialized banners, such as Rona Home and Garden big-box stores and the Lansing name, may shield it from more intense competition. Of the 16 big-box stores Rona operates in Ontario, he believes Lowe's poses a threat only to the eight located in Greater Toronto and, to a lesser extent, the seven Lansing stores.

In a sense, he says, the battle for Ontario's mega-outlet format has already been won by Home Depot Canada. Rona, meanwhile, won the battle for Quebec when it acquired Reno-Dépôt and its prime locations in Montreal. Mr. Caron is maintaining his "buy" recommendation with a 12-month target price of $27 on Rona shares.

But CIBC World Markets analyst Kathleen Wong says Rona shares could languish for the next couple of months to a year. She lowered her 12-to-18-month price target to $25 from $26 and kept her "sector performer" weighting.

While Ms. Wong believes the home improvement boom has some room to run -- helped in part by a recent reduction in mortgage insurance premiums -- she says investors could compress the P/E multiple of Rona in coming months because of the worry that competition is heating up.

Nuts and bolts

Since The Globe and Mail reported on June 2 that U.S. home improvement chain Lowe's plans to enter Canada, the shares of Rona Inc. have fallen 6% per cent. But some analysts are still positive on the stock.

[SSLL]

Rona needs to retool in next 2 years to face U.S. rival Lowe's, analysts say
RITA TRICHUR Sun Jun 12,12:54 PM ET
TORONTO (CP) - Canadian home-improvement powerhouse Rona Inc. has just under two years to round out its retail portfolio and secure a vise-like grip on customer loyalty if it wants to avert a takeover by American Lowe's Cos. Inc., retail analysts say.

ADVERTISEMENT

The Mooresville, N.C.-based retailer has confirmed it will open six to 10 stores in the Greater Toronto Area starting in 2007, laying the foundations for a cross-Canada presence that could eventually include acquisitions.

"It is unusual that Lowe's would announce at this time that they are coming in two years because it certainly gives the incumbents that much time to prepare," said Ed Strapagiel, executive vice-president of Kubas Consultants.

"There is some speculation that this is a calculated move to get Rona to sell out."

Rona, headquartered in Boucherville, Que., is Canada's largest operator of home improvement stores with 566 outlets of varying sizes that are a mix of big-box, home-centre, hardware and other specialized formats.

Lowe's Canada president Doug Robinson told investors last week that his company will focus immediately on organic growth but left the door open for acquisitions down the road.

Analysts warn Canada's $28-billion home improvement market is unlikely to escape the "rule of two" which has seen retail boil down to two power stores in each sector.

With interest rates set to begin an upward crawl during the second half of 2005, and the housing starts past their 2004 peak, the home renovation market is expected to cool off by 2007, just as Lowe's arrives, lending credibility to that aphorism.

That means the clock is ticking for Rona to sew up its home base by establishing geographic dominance in Ontario, Quebec and the West and to fortify its sales to avoid being swallowed up by the American retail giant, which is second only to Home Depot south of the border.

"In other words, offensively protect your turf," said John Williams, founder of the J.C. Williams Group Ltd. "They have to finish completing their geographic coverage of the Toronto market with big-box stores."

There are still plenty of smaller, regionally-based chains across Canada that could become available if the price is right, said Strapagiel.

On Friday, CanWel Building Materials Ltd. said it has put the Pro Hardware store brand up for sale, saying it wants to focus on its main business of distributing lumber and other products to retailers.

Pro Hardware is a brand used by more than 500 independent hardware and building supply outlets across Canada, who pay for the brand's marketing programs, private label products, advertising and electronic catalogue, sometimes adopting the Pro Hardware store name.

Strapagiel said this is not the time for Rona to expand into the U.S. market.

"It is kind of a risky proposition," he said, noting a failed attempt by electronics retailer Future Shop to move down south.

"It is hard to see what special capability or resources that Rona could bring to a U.S. chain acquisition."

The other key challenge for Rona is to secure customer loyalty by creating a superior shopping experience based on high-quality service, merchandise, marketing and special events, he said.

Much like Rona - and to a lesser extent, Home Depot - Lowe's actively caters to women's tastes with wide aisles, bright lights and a merchandise mix that includes "softer" home decor products.

"It is going to be a question of whose customer base is going to be the most vulnerable," Strapagiel said.

"Rona has already demonstrated that it can successfully compete against Home Depot, so Rona is no pushover."

Originally founded in 1939, Rona rang up $4 billion in annualized retail sales last year.

That success is largely attributed to consolidation that began during the 1990s - coinciding with the arrival of U.S.-based Home Depot Canada - that saw Rona shore up its domestic holdings by snapping up rivals like Reno-Depot, Lansing, Revy, Revelstoke and the Building Box.

Portfolio managers and other analysts have suggested that Lowe's entry would continue to put downward pressure on Rona's stock. But company spokesman Sylvain Morissette said Rona will continue with its strategic plan which to build a domestic presence through new store construction, strategic acquisitions, recruitment of affiliated dealers and developing new store concepts.

The company's objective is to grow annualized retail sales to $7 billion by the end of 2007 and it will open 15 to 20 new stores of varying sizes each year over the next three years to help realize that goal.

"Our same-store sales are the best in the market during the last years," Morissette said.

"We do not manage differently because somebody will announce something in the market."

Rona's strength lies in its diversified formats, he added, noting the current trend toward one-size-fits-all will eventually lead to a big-box saturation.

"You know, it is in two years," Morissette said. "There is a lot of things are changing in the market everyday."

Rona's shares (TSX:RON - news) closed Friday at $24.90, down 43 cents, on the Toronto Stock Exchange.

[SSLL]

I wonder what they'll be selling? All the smaller older theaters, leaving behind all cinemas few people will want? Or will they have to sell some Silver City-style, large-scale cinemas? Anyone know which specific ones are being sold? I would think Rainbow Cinemas will want to buy some of the nicer ones. Some of the more urban ones might be bought up by Alliance Atlantis, and the bigger ones might be bought up by AMC, I would think.
__________________________
Cineplex buys Famous Players
By TAVIA GRANT
Monday, June 13, 2005 Updated at 1:58 PM EDT
Globe and Mail Update

Cineplex Galaxy LP said it agreed to buy the Famous Players unit from Viacom Inc. for $500-million, combining Canada's two largest movie-theatre companies.

As part of the transaction, Cineplex Galaxy will comply with a Competition Bureau stipulation that the company sell 35 theatres with annual box office revenues of almost $100-million.

Last fall, New York-based Viacom said it planned to sell its Famous Players arm in Canada, the largest movie exhibitor in this country with a market share of about 40 per cent. For months, industry observers have seen Cineplex, with a 31-per-cent share, as a top contender for the unit.

“Working in conjunction with Onex Corp., our largest unit holder and controlling partner, we are bringing together two great companies and are creating an exceptional opportunity to build value through an improved cost structure and expanded product offerings,” said Ellis Jacob, president and chief executive of Cineplex Galaxy.

Cineplex Galaxy Income Fund holds about 42 per cent of Cineplex Galaxy LP, while Toronto-based leveraged buyout firm Onex and other shareholders hold the balance. Onex currently owns 31 per cent of the outstanding income trust units and has a 100 per cent voting interest.

Famous Players operates at 81 locations with 787 screens across the country, including theatres in its joint ventures with Imax Corp. and its partnership with Alliance Atlantis. Cineplex Galaxy operates or has an interest in 86 theatres with 775 screens across Canada in six provinces.

Canada's competition bureau gave a green light for the move, provided Cineplex sell some theatres. The theatres to be divested are in Victoria, Vancouver, Calgary, Edmonton, Lethbridge, Saskatoon, Winnipeg, London, St. Catharine's, Kitchener, Hamilton, Kingston, Ottawa, Toronto, Gatineau, Montreal and Quebec City.

“Our goal is to ensure that consumers continue to benefit from competitive prices and choice in the exhibition of first run motion pictures,” said Gaston Jorré, Senior Deputy Commissioner of Competition.

The move will leave Cineplex with 132 theatres in Canada. Remaining competitors in the movie-theatre landscape include AMC Theatres, based in Kansas City, Missouri, and the Rainbow/Magic Lantern movie chain.

The transaction, which includes about $36-million in capital lease obligations, is expected to close in the third quarter, subject to conditions.

Cineplex Galaxy plans to finance the transaction through a combination of debt and equity. Scotia Bank, RBC Capital Markets and National Bank Financial have provided commitments to finance the purchase price, the company said.

Last year, Famous Players had sales of $520-million while Cineplex Galaxy had sales of $354-million. Theatre level cash flow for the theatres to be divested was about $13-million last year.

“The Cineplex Galaxy management team has excelled in integrating businesses in the past and expects to realize significant operating synergies and improved EBITDA (earnings before interest, depreciation and amortization) from the combined companies as a result of this transaction,” said Mr. Jacob.

The companies hold a conference call to discuss the transaction at 11 a.m. EDT.

Units of Cineplex Galaxy Income Fund were unchanged at $14.20 in early trading in Toronto. Onex rose 7 cents to $19.22.

[SSLL]

From paperbacks to popcorn, power couple strikes again
By RICHARD BLACKWELL
Tuesday, June 14, 2005 Page A1
With a report by Marina Strauss

Toronto power couple Gerry Schwartz and Heather Reisman, who already sell the majority of books bought in Canada, have boosted their take of the country's entertainment dollars by creating its biggest movie theatre business.

Cineplex Galaxy LP, controlled by Mr. Schwartz's Onex Corp., announced yesterday it will gobble up rival movie theatre chain Famous Players Inc., to form a blockbuster business controlling almost two-thirds of the Canadian market.

Cineplex will pay about $500-million to U.S. media giant Viacom Inc. for Famous Players.

They are the majority owners of Indigo, by far the largest book retailer in Canada with more than 250 stores under the names of Chapters, Indigo, Coles and others, ringing up about $800-million a year.

After absorbing its rival, Cineplex will have about 1,300 screens in 132 theatres in six provinces, or between 60 and 65 per cent of the Canadian industry. The only market where the merged entity will have no theatres is Eastern Canada, which is dominated by the Sobey family's Empire Theatres Ltd. chain.

It's been less than five years since Mr. Schwartz and Ms. Reisman, who have a private movie theatre in their Toronto mansion, swallowed the struggling book chain Chapters Inc. and merged it with Ms. Reisman's smaller, ailing Indigo Books and Music.

The Cineplex takeover of Famous Players has some parallels to the Chapters buyout.

To get approval of the deal from the federal Competition Bureau, Cineplex had to promise to sell about 35 theatres in 17 cities where the combined company was deemed too powerful. Those theatres -- in cities ranging in size from Toronto and Montreal to smaller centres such as Lethbridge, Alta., and Kingston -- could fetch as much as $100-million, analysts say.

When Indigo bought Chapters, the bureau said the new company had to sell 23 stores to other booksellers. In the end there were no takers, and Indigo shut some outlets.

The movie theatre transaction has sharp contrasts to the book deal, however. Mr. Schwartz and Ms. Reisman bought Chapters with their own money, and Ms. Reisman is chief executive officer of the bookseller. Cineplex, on the other hand, is controlled through Mr. Schwartz's public vehicle, Onex, and he is not directly involved in managing it.

Onex got into the movie game in 1999, when it helped form the Galaxy Entertainment Inc. chain with the goal of setting up theatres in underserved small and medium-sized markets.

Then in 2002, Onex got control of the North American-wide Loews Cineplex chain while it was under bankruptcy protection. Later, the U.S. theatres were sold at a huge profit, Galaxy and Cineplex's Canadian operations were merged, and a chunk of the venture was sold to investors as an income trust.

The deal for Famous Players will be a "major transforming event," Cineplex chief executive officer Ellis Jacob said yesterday. The Famous Players brand will likely be retained at many theatres, although the Paramount name used in the biggest city-centre theatres will have to be dropped because Viacom owns it. Cineplex may sell the naming rights for some of those theatres to companies that would like to see their name on a high-profile venue, Mr. Jacob said.

Should movie-goers expect to pay higher prices because of Mr. Schwartz's stranglehold on the Canadian business? Not likely, Mr. Jacob said, "I'm not a proponent of ticket price increases." Howard Lichtman, president of Toronto marketing consulting firm Lightning Group, said movie theatres face so much competition from other forms of entertainment that it is difficult for them to boost prices.

[jeffwhit]

Lowes will be good for competition.

I can't stand Rona - expensive, poor selection and awful service. Revy/Revelstoke went down the toilet when Rona took over.

Doug, for the first time I think I agree with you 100%

rona sucks ass.

[SSLL]

Don't forget the Air Miles at Rona though! In Ontario, I think it made Lansing a lot better, it was crap.

[malek]

The list of theatres is strictly confidential.

Guzzo the largest theatre chain in Quebec has declined to buy any of the theatres to be sold in Quebec, stating that they're so expensive to maintain and/or renovate that they prefer to build new theatres instead of acquiring rival ones.

[SSLL]

I guess they're (Guzzo) more in the market for building suburban big ones too, rather than smaller ones downtown (though they have a big one at Marché Central, don't they)? I've heard for so long that AMC wants out of Le Forum 22, but nothing's happening. It'll be even harder to unload now that there's not as many players as before.

[malek]

smaller locations in downtown montreal have almost all disappeared, Lowes, Centre-Ville, Le Berri, Desjardins, .... all closed in favor of big multiplexes even in downtown (paramount, amc 22, quartier latin).

The big one in Marché central hasn't opened yet, its in the final stages, I pass there everyday.

AMC wanting out? surprising, its packed most of the time I'm there... it may be due to their pricing scheme, they're the most expensive in regards to ticket price (unless you're a (fake) student).

[SSLL]

Yep, I think that's why they have the discount night Tuesdays and Wed (? or is it Mondays?) instead of just one day of the week like the rest of its cinmas. I went once, and really like it there though
__________________________
Wednesday » June 15 » 2005
Cinema giants merge
Onex's Cineplex swallows Famous Players, giving company 1,300 screens nationwide

MARY LAMEY
The Gazette

Tuesday, June 14, 2005


CREDIT: ALLEN MCINNIS, THE GAZETTE
Not a bidder Guzzo unlikely to buy excess theatres: Vincent Guzzo, who opens a cinema in Marche Central on June 28, isn't interested in any theatres made available by yesterday's merger.
Canada's two largest cinema chains are joining forces, with Cineplex Galaxy LP swallowing larger rival Famous Players for $500 million, a deal that will consolidate Cineplex's grip on movie screens across the country.

The purchase will give Cineplex, a unit of turn-around king Gerry Schwartz's Onex Corp., 1,300 screens in 132 theatres nationwide and a 63-per-cent market share. It also will relieve U.S. media giant Viacom Inc. of an expensive Canadian headache. The sale has been rumoured for months.

The deal comes at a price, however. Before giving the transaction its blessing, the Competition Bureau of Canada told Cineplex to sell 35 theatres in markets where the two chains compete. They include Gatineau, Quebec City, Montreal and 14 other cities.

"Given the degree of concentration in the industry and the barriers to entry into the market, it is essential that these theatres be sold off to ensure that this merger does not result in a substantial prevention or lessening of competition," said Gaston Jorre, the Competition Bureau's senior deputy commissioner of competition.

There is speculation that among those to hit the auction block will be Cineplex's outlets in Cote des Neiges, the Cavendish Mall, Delson and Dorion, as well as Famous Players' Place Versailles and St. Bruno cinemas.

Finding buyers for the local theatres might be difficult, said one player who already has decided to take a pass.

"We looked into buying Famous Players in Quebec." said Vincent Guzzo, president of Cinemas Guzzo.

"In the end, we didn't have the guts," Guzzo said.

Guzzo is putting the finishing touches on his 12th theatre complex, an 18-screen, 4,400-seat megaplex in Marche Central. The cinema is scheduled to open June 28.

"If Famous Players, with all the big money Viacom had to throw at it, couldn't make those theatres work, what hope do I have?" Guzzo asked.

AMC Entertainment International, Canada's other established exhibitor and owner of the 22-screen theatre at the Pepsi Forum, is said to be looking for a graceful exit from the market. The Kansas City-based chain was privatized last year after being acquired by investment firm Marquee Holdings Inc. for $2 billion U.S.

The merging of industry giants does not worry Guzzo at all. He has allowed Famous Players and Cineplex to duke it out for downtown market dominance, choosing instead to focus on suburban theatres with lower rents and plenty of room for parking.

"Now instead of having to point my guns at two competitors, I can point them both at one," he said during a tour of his newest theatre.

"The problem with these guys is that they tried to buy their way out of their problems. The locations they chose were so expensive that they had to grab 100 per cent of the market just to survive. They jacked their ticket prices up, but you can only do that so long, before the public begins to complain."

In a conference call with analysts, Ellis Jacob, CEO of Cineplex, said management is confident that it will be able to realize substantial synergies once the transaction is completed.

Anticipating the unease the creation of such a dominant market force will cause everyone from the ticket-buying public to landlords and the Hollywood studios, Ellis sounded conciliatory.

"At the end of the day, this acquisition would not work if we don't have our partners on side."

Famous Players, soon to celebrate its 85th birthday, has 81 theatres and 787 screens. In 2004, the company had revenues of $520 million. Cineplex Galaxy operates 86 theatres and 775 screens. It had revenues of $354 million last year.

Units in Cineplex Galaxy Income Trust Fund, traded on the Toronto Stock Exchange, rose 15 cents to $14.35.

[malek]

most theatres have both tuesdays and wednesdays discounted, amc is no exception.

all of Guzzo's plexes are well placed and are always packed. they also had the lowest price at the door till a couple of months ago or so (it was 9$, now 10$).

[harls]

Cavendish theater is pretty lame-o.. same with Place Versailles.. both are outdated and are in crappy malls..

I love Guzzo's chairs.. they're huge and comfortable.

[SSLL]

I guess in Québec it's discounted on Tuesdays and Wednesdays, but in Ontario, I know only Tuesdays are discounted (at AMC and others).

More Mills malls, I wonder where in Montreal, Vancouver, and Calgary they'll be?
___________________________
Caisse set to be a force in mega-malls
By ELIZABETH CHURCH
Tuesday, June 14, 2005 Updated at 8:30 PM EDT
From Wednesday's Globe and Mail

The Caisse de dépôt et placement du Québec plans to invest up to $1-billion to roll out three more mega-malls in major Canadian cities in the next four to six years with its U.S. partner Mills Corp.

The move follows the success of the joint venture's first project, Vaughan Mills, a huge 1.2-million-square-foot shopping, discount and entertainment complex north of Toronto and would include sites in Calgary, Vancouver and Montreal.

Paul Gleeson, vice-president for development of the pension fund's retail landlord Ivanhoe Cambridge, said in an interview Tuesday that the new projects would be similar in size and feel to Vaughan Mills and would likely include many of the same major retailers. He said he hopes construction on at least one site will begin next year, with an opening expected in the fall of 2007. While planning work is being done in all three cities, he said the Calgary location is the most advanced at this time.

“Hopefully we will have these three under way in the next four to six years at least,” he said.

Mr. Gleeson estimated costs for each project would run between $300-million and $350-million, based on his experience at the Toronto site.

Since opening its doors last fall, Vaughan Mills has attracted more than 6.5 million shoppers. More than half of those visitors travelled more than 16 kilometres to come, Mr. Gleeson said, confirming that the mall is attracting customers from much farther afield than a traditional regional mall. “We are drawing from an extremely wide trade area,” he said. “We are quite pleased with how it has performed.”

The new mall, which is anchored by U.S. merchant Bass Pro Shops Outdoor World, also attracted 510 tour buses in its first seven months of operation.

Mr. Gleeson, who is speaking today at a meeting in Montreal of the International Council of Shopping Centers, said he also will announce the opening of a new retailer at Vaughan Mills. He would not provide further details, but industry insiders expect that U.S. clothing discounter Burlington Coat Factory Warehouse Corp. has finally decided that it will move into the mall.

Burlington was supposed to have been among the first major anchors when the mall opened.

But it never set up shop, pulling out at the last minute until it could confirm some other nearby Canadian locations at an acceptable price to the company, sources said.

While Vaughan Mills took eight years to get off the ground, Mr. Gleeson said he is optimistic that the next three malls will go up more quickly. Once land and municipal approvals are complete and leases signed, he said a new mall will take about 18 months to construct.

He said Vaughan Mills represented a new concept for Canada that combines entertainment and retail facilities, but its success should make the latest projects easier to sell.

“The retail community understands the product now,” he said. “We want to roll the project out and capitalize on the momentum that we have from Vaughan Mills.”

Toronto-based retail consultant John Winter says that is a wise move, given the way consumers have reacted to the Toronto site.

“I think the performance in Toronto will make it easier to rent up the other sites,” he said.

Mr. Winter said Vaughan Mills' success shows how tired shoppers are of the same old power centre concept, ruled by large parking lots and big-box outlets. “There is a real appetite for good, new centres.”

Still, that appetite may only be so big. Mr. Gleeson said the exclusive agreement Ivanhoe Cambridge has with Mills Corp., an Arlington, Va.-based developer, is only for four sites. He said there may be room for a plan B that involves malls in other locations, but he said to work, they would have be supported by a population of at least one million within its catchment area and be far away from the joint venture's other malls.

“Right now we want to focus on the highly populated areas,” he said.

[SSLL]

I think this type of mixed-development would be great in Canada's bigger cities! Think of the possibilities...Cities that coudn't support a 300k square foot store (like Quebec city, Winnipeg or Halifax) could get one in mixed use development with affordable housing attached!
_____________________________
Here's a pic http://www.theretailbulletin.com/image_lib/ikeahillingdonpic.jpg
Sat 18 Jun 2005

Giant IKEA thinks small to expand in town centres

PETER RANSCOMBE

THE furniture giant IKEA yesterday unveiled radical plans for the first in a series of smaller stores in town centres across Britain.

The new shops are a departure for the Swedish retailer, which has previously opted for huge out-of-town warehouses.

An application to build a smaller store at Hillingdon, in West London, is expected to be submitted for planning permission within the next fortnight.

Scott Cordrey, IKEA's UK property manager, said: "The concept will be very different to anything we have built before in the IKEA world.

"This will be a benchmark for retailers in the M25 area, both in flexibility and environmental measures."

The new store, which will include a restaurant, will be about 20,000 sq m in size and laid out over three levels. The development also will include 240 one- and two-bedroom flats, with 170 of them classified as affordable housing.

The chain intends to build between eight and ten of the new smaller stores within the next three years.

A spokeswoman for IKEA said they have no immediate plans for a new store in Scotland, but that they have not yet chosen locations for the smaller shops.

The company already has two large branches in Scotland - one just off the Edinburgh city bypass and another at Braehead in Glasgow.

Last year, John Prescott, the Deputy Prime Minister, refused the furniture chain permission to build a £30 million store at Stockport, near Manchester, because it went against government policy on out-of-town shopping developments.

IKEA appealed to the High Court but the decision was upheld last March. In a statement released after the High Court decision the company said it would continue with its expansion plans.

The smaller stores are seen as a way around the planning policy. The firm has described its new format as "IKEA as we know it" but that it would involve "compromises on range presentation and office space".

Leigh Sparks, professor of retail studies at Stirling University, said: "The smaller size of the stores will inevitably mean a compromise on the number of products available. How they handle that will be an interesting choice, and what works and what doesn't work is something they'll have to find out through experimentation."

Prof Sparks thinks the new stores may make use of IKEA's home delivery service and could act as a shopfront for items that may not be held in stock in the smaller stores but would be available to order.

He added: "Much will depend on the mix of products in store. There is a danger that if existing customers go to the new stores and are dissatisfied with the range they find there then it could damage the brand."

Neil Mason, a senior retail analyst with Mintel, said: "This is an attempt by IKEA to modify its format to get planning consent and make itself more available to consumers in the UK.

"They've been a victim of their own success in some ways - they're just so popular. They have a winning formula and I see no reason why they can't repeat that with their smaller format stores."

He added that the Swedish firm's plan to start selling goods online also would appeal to shoppers who wanted to avoid the crowds in its existing 13 large stores.

[Holden West]

I'm baffled. Our IKEA experiment failed miserably.

IKEA opened a similar mini-store in the mid 1980s in Victoria at 1010 Yates St at Vancouver St. in the Plimley Motors Building (now Moxie's Grill).

It was an interesting novelty at first but the thrill wore off when people got sick of being told most large items would have to be delivered from Vancouver. The store closed after a few months. Perhaps they also underestimated the number of modern design minded Victorians that would buy the big ticket items like furniture and custom shelving and cabinetry.

Today, IKEA charters a special bus that regularly leaves Victoria for the Richmond IKEA. I believe the deal is the fare is deducted from your IKEA purchase if you buy over a certain amount--$200 or something.

[SSLL]

Hmm...I think the difference (from Victoria's former store) woud be that the store's would be 20,000 square meters, which is as big as the older Ikeas in Canada (Richmond's is 20k, Montreal's is 23,700, Burlington's is 22,200, and North York's is 24,600 square meters). In fact, it'd be bigger than the one in Ottawa (which at a tiny 12,500 square meters is the smallest in North America, and one of the world's top ten smallest). So I guess we couldn't call them small stores, rather, small footprint, more versatile stores. It's just it'd have a smaller footprint (being spread over three levels), and would share its space with commercial and residential uses. I think it's a great idea to have in inner cities with Ikeas already. I'm surprised Victoria (or Winnipeg or Halifax) doesn't have enough drawing power now to warrant a smallish Ikea.

[Holden West]

Holy crap--that's a huge difference. Here's a picture of the former IKEA store as it looks today (the photo probably covers half the space). As you can see, it's a much smaller century-old building.

http://www.salescene.com/moxies.html

IKEA rumours continue to surface every few years here but presumably IKEA head office has run the numbers and concluded Richmond serves the Island adequatley. Nanaimo might be able to use one if it continues to grow.

I agree--I hope any new ones here have a smaller footprint with complementary retail and a location closer to the downtown core. Not a giant sprawl-monster.

[someone123]

Part of the issue is that IKEA does pretty well even without the stores in most markets. I'm guessing they're doing even better now with online shopping.

The question they're faced with isn't really whether or not an area can support a store, but whether or not a store will bring in enough new business to justify its existence.

[Doug]

I would guess that the most likely location for a Mills mall in Calgary would be either the northwest or north central part of the city, probably along the Stoney Trail extension. Calgary hasn't built a new enclosed suburban mall since 1982, when Deerfot Mall, Sunridge and Deer Valley all opened at the same time. The last three enclosed malls were downtown: Eau Claire Market (1993), Eaton Center (1990) and Bankers Hall (1989). Of course Chinook expanded in 1984, 1987 and 2000, Southcentre in 1988 and 2001, Market Mall in 1987 and 2004, Northlands in 1988 and Sunridge in 2005. Still, compared to most other Canadian cities Calgary has few enclosed suburban malls, especially considering that it has by far the highest retail sales per capita in the country.

[SSLL]

I don't know much about Calgary, or where Calgary Mills will be going. Does anyone know any real estate insiders? With regards to the quads, Market Mall's in the NW, Marlborough Mall and Sunridge are in the NE, Soutcentre's in the SE, and Chinook's in the centre. Deerfoot Outlet mall also in the far NE, so maybe it'd be best to be in an undermalled area. What's in the SW? And where is the largest concentration of people?

I wonder where in Montréal and Vancouver a Mills mall should go.

[Rusty van Reddick]

^ Don't be surprised if a "Calgary Mills" is in Okotoks or Airdrie. The one in Chicago was opened in Gurnee, which was practically exurb in 1989 or whenever it opened. These places go FAR from the standard suburban centres.

"Airdrie Mills" actually had that particular corporate ring to it.

[srperrycgy]

I agree with Stoney and Deerfoot as a potential location for a "Mills" Mall. I'm sure the developer would pony up for a couple of interchanges. There are a couple of others off the top of my head:

- west of Springbank Airport by Calaway Park

- Corner of the future East Freeway and the TCH.

Not really sure about anything to the South.

I'm not crazy about the "Mills" naming though. A little bit dull to me.

[SSLL]

But Gurnee is almost equally in between Chicago and Milwaukee, an area of more than 10 million people (even in 1989), and was near Great America, a popular theme park too. Calgary has one million people now, so maybe closer than further away from people is the way to go...

[Rusty van Reddick]

^just saying that Gurnee was a hamlet at the time with no other big (or small) retail.

All changed now, was visiting a friend who bit the bullet for a house in the burbs (this is a 100 year old house but still, it's a suburban nightmare), in Gurnee, and my God.... it has changed.

[neilson]

Halfway Between eh?

Red Deer Mills anyone?

[SSLL]

That wouldn't be unsmart, since Edmonton's not got a value outlet mall either. West Edmonton's just a regular mall. So in between would catch nearly 2.5 million people! How long would that be to drive from either? An hour?

[neilson]

Red Deer to Edmonton = 100 miles.
Red Deer to Calgary = 99 Miles.

Red Deer to shopping? I think YES!

[SSLL]

I think if you add a casino next door, you could have your next megaresort!

[SSLL]

That's not good news for Toronto's Virgin Megastore plans (at Metropolis). Isn't there one nearby it already? I hate how HMV is driving everyone else away, it's getting near anti-competitive. Tower Records cited HMV's dominance as one of the two reasons it closed its two stores in the GTA, the other reason being their own financial troubles.
_________________
HMV to Open Canada’s largest store dedicated to music and DVD

For Immediate Release. Toronto, ON. June 28, 2005

HMV Canada Inc, Canada’s leading music retailer and fastest-growing DVD chain, announces today that it will open the country’s largest store dedicated to music and DVD, on the site currently occupied by Virgin Megastore in Vancouver, B.C.. As a result, Virgin’s only Canadian Virgin Megastore, located on Vancouver’s Burrard Street, will cease from trading under the Virgin brand name on September 4th, 2005. as Virgin Entertainment Group has decided to withdraw from the Canadian marketplace to enable resources to be fully focused on its retail business in the United States

The 40,000 square foot, three-level store is located on the corner of Robson Street and Burrard Street in central Vancouver, the city’s busiest and most prestigious retail destination.

When it opens for business on September 4 2005, the new HMV flagship location will offer the most extensive selection of CD’s and DVDs in a single store in Canada, with access to a range of more than 400,000 different titles.

With eight stores already located in the greater Vancouver area, and a further two stores opening in Burnaby the summer of 2005 in Lougheed Town Centre and Metrotown Centre, HMV will be the city’s number one music retailer and fastest-growing DVD chain.

Humphrey Kadaner, President of HMV Canada, commented:

“Vancouver is a key market for HMV. Not only is it Canada’s third largest city, but Vancouver also has a great music and movies tradition, making it a fitting location to open HMV Canada’s biggest store to date. Our prime retail location on the corner of Robson and Burrard puts HMV right at the heart of a city which is preparing to ‘welcome the world’ for the 2010 Olympics, and we are delighted to offer Canada’s biggest selection of music and DVD from our new store.”


Employees of the Vancouver Virgin Megastore will be offered continuous employment with HMV. Virgin Entertainment Group wishes to thank all of its staff, customers and suppliers for their support of the Vancouver Virgin Megastore.

About HMV
With over 80+ years of music retailing history, 370 stores worldwide and 102 stores in Canada and growing, HMV is the world's premier retailer of music. HMV is Canada's leading music retailer and it's fastest growing DVD destination. HMV has proven itself as an innovative leader in Canada since 1986 and has been named Canadian Music Retailer of the Year for the past 17 years and most recently named Canadian DVD Retailer of the Year - making HMV the only retailer in Canada to receive both honours in the same year. HMV.com, which launched in July 1999, is now powered by Amazon.ca, and offers Canada's largest on-line music and DVD selection.