Canadian Retail Thread

[LordMandeep]

actually to most Indians here, little India is now little Pakistan...

[SpongeG]

the "urban" Can Tire in Vancouver has a grass parking lot - its kinda annoying in wet weather and was dreadful in the snow

[SpongeG]

Music World to close stores

Music World Ltd., the last domestically owned national music chain, has been put into bankruptcy protection by new owners who expect to wind down the money-losing business - another victim of a rapidly changing music listening and buying landscape.

With 72 stores and a presence in almost every province, the retailer joins Sam the Record Man and others that have succumbed to the new world of music downloading, online file-swapping services and digital radio. As well, music merchants have been squeezed by Wal-Mart Canada Corp. and other big-box stores that sell compact discs as loss leaders.

"The music industry has gone through tremendous turmoil in recent years," Toronto businessman Kai Voigt, one of the three new owners, said in an interview. "Purely music retail has a sad epitaph."

The Canadian music sector has been hammered by a worldwide drop in record sales, leaving dozens of people out of jobs this year at music labels Sony BMG and EMI, while music chain Sam the Record man closed its high-profile flagship in Toronto last summer.

Music World, previously owned by the wealthy and philanthropically generous Pindoff family, should close by early next year, but its new owners will look for buyers for some of its profitable stores and its inventory, court documents state.

The parent company was bought by the new shareholders last Wednesday and, two days later, got creditors' court protection.

By early next year, British-based HMV will likely be the only remaining national music chain in Canada, with 118 stores.

"Unfortunately the nature of the business is, when companies aren't investing and aren't finding ways to evolve their business, the risk is that you start to fall backwards, and I believe that's what happened to them," said Humphrey Kadaner, president of HMV Canada. It will now consider picking up "a few" of Music World's outlets.

HMV is surviving the onslaught of digital downloads by aggressively branching out into non-music products - DVDs and video games - and transforming into an "entertainment" retailer rather than just a music chain, he said. By the end of this year, HMV Canada will generate more than half of its business from non-music sales.

At Music World, the losses were mounting. Last year, it was $9.2-million in the red on sales of $80.6-million; in 2005, it lost $3.2-million on sales of $96.1-million, according to documents filed with Ontario Superior Court of Justice.

The retailer owed its parent, Pindoff Record Sales Ltd., more than $30-million before the parent was acquired by the new owners, according to court filings. The new owners now owe Pindoff, a secured creditor, more than $20-million. It is the only substantial creditor.

Pindoff also owns a CD and DVD wholesaling division, as well as 60 per cent of a music distribution business in Quebec (neither is included in the court filing). Both "are strong companies which we intend to grow significantly going forward," Lawrence Pollack, another of the new owners, said in an email.

The new owners essentially financed the acquisition with $12-million of an advance from the liquidators that they hired to sell the merchandise, the filings indicate. The retailer will lay off its 648 employees, but keep most of them until Jan. 31, the filings state. It wants to start its liquidation sales immediately to cash in on the busy holiday shopping season.

Mr. Voigt said in the interview that he is now thinking of buying some of the Music World stores in the court-shielded bankruptcy process.

He said he is talking to other smaller retailers about combining their efforts in a new model that would entail expanding into non-music categories.

"We're not ruling out retail, but retail as it exists has to be reinvented," he said. "I'm not anti-retail. I'm anti-losing-money.

Music World was founded more than 35 years ago by Eva and Kroum Pindoff after the couple carted records in their station wagon to convenience stores and pharmacies in Ontario, selling them on consignment.

Contracts with larger retailers followed, and they opened a warehouse in 1962 before launching the first store in Toronto eight years later. At its peak in the late 1980s, it ran more than 100 stores.

Known for their largesse, the Pindoffs donated $5-million to the tsunami relief effort in 2005 and, a year earlier, $20-million to War Child Canada, which helps children living in battle zones.

When reached by phone, Ms. Pindoff had no comment.

The music stops

Sam the Record Man

Sam Sniderman first began selling records out of his brother's radio shop in 1937. He opened the flagship store on Yonge Street in Toronto in 1961, and transformed it into a successful chain of 130 stores across Canada. But by 2001, it was down to 30 stores and filed for bankruptcy. Last summer, it closed the Yonge Street store but the decision did not affect two franchise stores, in Belleville, Ont. and Sarnia, Ont.

Music World

Started in 1970 by Eva and Kroum Pindoff after the couple sold records from their station wagon to convenience stores and pharmacies in Ontario, it expanded to supply larger retailers and opened a warehouse in 1962. At its peak in the late 1980s it had more than 100 stores, but today that is down to 72. On Friday, the chain was granted court protection from creditors.

A&A Records

A&A Records was a Canadian record store chain, which declared bankruptcy in 1991. Many A&A stores were absorbed into the Music World or Sunrise Records chains.

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

[SpongeG]

Aritzia tries U.S. on for size

Clothier for the young and well-heeled looks to expand south of the border

VANCOUVER -- Beside the floor-to-ceiling mirrors and textured wood accents that decorate the interior of Aritzia's swish Robson Street outlet hang the racks of designer denim.

These are not your dad's jeans, or even your mother's -- unless your mother's thirst for youth is as substantial as her pocketbook. They are tightly-cut pieces of derriere decoration, some stitched in silver and gold, created specifically for the store's target 15 to 25-year-old woman who is, in the industry parlance, "fashion forward."

A quick jaunt through the store suggests a more proper description might be "obsessed." One pair of jeans sells for $297. Another for $295. Another for $280.


Brian Hill, president of Aritzia clothing stores, is counting on his clothes, customer service and store location to sell the brand.
Photograph by : Photo: Rob Newell / National Post

None of which has proven terribly off-putting to Canadian women, who have made Aritzia's wares the coveted finery of the high school and university set; its cheeky TNA line serving as a de facto teen uniform in some halls.

But can Brian Hill, the store's founder and president, charm American women as skillfully -- and as lucratively?

Beginning with a single Vancouver location built more than two decades ago, Aritzia has seen a recent explosion in growth, nearly doubling its Canadian locations in the past two years alone. It now has 26 locations and is number one or two in most of the malls it operates in, with sales often exceeding $1,000 per square foot in stores that feature live DJs and unflaggingly helpful staff.

But its growth has run up against one problem: there just aren't that many Canadians willing to lay out $300 for jeans. So, rather than cheapen his product to expand to smaller markets in Canada, Mr. Hill turned his gaze southward, and hopes that most of a planned 20 new stores in the next three years will be based in the U.S.

His first two will open in a few weeks, in Bellevue, Wash. and San Jose, Calif.

It is a potentially difficult step for a company that has, to this point, moved cautiously and never closed a single location. But it is, said Mr. Hill, a calculated bet -- and one that retail analysts and Canadian mall owners say he has a good chance of winning.

That is not to say it is without risk. There is the U.S. customer, a person who, said Ron Wratschko, the senior vice-president for western Canada with Cadillac Fairview and a major Aritzia landlord, "looks like us, talks like us, eats the same foods as us -- but is not us." Will Aritzia's product mix and price point appeal in the U.S.?

Then there's climate.

"We sell coats and outerwear," said Mr. Hill. "And then we open up in Los Angeles where it's 80 degrees in the winter. What are we going to do with all our sweaters?"

Lastly, there are operational concerns. Can Aritzia replicate its own sales culture in the U.S.?

Oddly enough, the one thing that doesn't worry Mr. Hill is competition, even though aggressive U.S. retailers have mowed under more than one Canadian market entrant in the past.

But recent years have brought so many U.S. names to Canada --including Mexx, Bebe and Guess -- that a mall here now looks little different from a mall there, Mr. Hill said.

"There is nobody in the U.S. right now that we feel we compete with that we're not already competing with in Canada," he said.

He is confident enough that, like in Canada, his U.S. advertising budget is zero. He is instead counting on his clothes, customer service and store location to sell the brand.

And at least one U.S. retail analyst said Aritzia has a product that could resonate there. Dick Outcalt, a partner in Seattle-based Outcalt & Johnson: Retail Strategists, had never heard of Aritzia, but was intrigued by its meticulous attention to the "theatre of retail" and the sustainability focus it presents on its Web site.

"From the Generation Y standpoint I don't think they care whether this company is from Canada or Colombia. If [Aritzia] believes in what they believe in, they're going to give them a try," Mr. Outcalt said.

"The next part of that question is, will [Artizia] be successful? Well, they're certainly not going to be successful if people don't give them a try."

http://www.canada.com/nationalpost/f...292091&k=80716

[204]

The first Marimekko concept store in Canada opened in Vancouver, 14 November 2007. With around 2.1 million inhabitants, metropolitan Vancouver is the biggest metropolitan area in Western Canada.

The 180 m2 store is located in trendy Yaletown, a downtown spot known for its hip clothing, shoe and interior decoration shops.

North America is one of Marimekko’s most important export markets, with very strong growth registered in the last couple of years.

This year, Marimekko concept stores have also been opened in Yokohama and Nagoya, Japan; Silver Spring in metropolitan Washington DC, the United States; Graz, Austria; and Aalborg, Denmark.

Run by independent retailers, Marimekko concept stores are shops that sell exclusively Marimekko products and carry a comprehensive selection of merchandise from all the different Marimekko lines: clothing, interior decoration and bags.

Developing and anchoring the concept store idea based on Marimekko’s lifestyle thinking represents an important part in Marimekko’s internationalisation strategy.




Jackie O would be proud

HADANI DITMARS

Special to The Globe and Mail

November 17, 2007


Walking into the new Marimekko store in Yaletown on a grey November day provides not only a stylish experience, but also a boost of intense colour therapy.

The Finnish line of fabrics, fashion and bed, bath and housewares is well known for its bold, dynamic prints - such as the famous Unikko floral pattern worn by the likes of Jackie Kennedy. But it's the colours that impress the most - bursts of red, orange, sumptuous greens and luscious blues. In a light-starved Vancouver winter, a trip to the converted Hamilton Street warehouse store is the aesthetic equivalent of an hour under an SAD lamp.

Owners Anne and Steve Miller say that in postwar Helsinki, when Marimekko was founded, "the Finns needed cheering up and colour was the way to do that."

And with the design trends of minimalism and subdued palettes giving way to more colourful leanings, the new Marimekko store couldn't have arrived at a better time.

The Millers - together with their daughters Sarah and Sophie - collaborated with Marimekko representatives from Helsinki to create a gallery-like space to showcase a wide range of products. The Marimekko guidelines are that store walls be painted a "blue-white" to accentuate the colours of the fabrics, but beyond that, individual boutique owners have creative freedom.

The couple say they were honoured to be selected to open the first Marimekko concept store in Canada. While Marimekko products are available at various retail outlets, there are only three other concept stores in North America - in Washington, Miami and Cambridge, Mass. - which all opened last spring.

Marimekko has weathered some storms. After its sixties heyday (Jackie Kennedy was only one of many celebrities that sported Marimekko designs and anyone over 35 is likely to have childhood flashbacks after a tour of the store) and seventies success, the company lost its way in the eighties. But a new chief executive officer resurrected the venerable Marimekko in the early nineties, taking it public again and injecting it with a potent design strategy that bridged generation gaps.

Kristina Isola, daughter of Maija Isola, the designer who invented the Unikko floral print and other Marimekko classics, received the torch. Kristina's reinterpretation of her mother's original vision paid homage to the past, while contemporizing the style.

New designers - including Finns and Japanese (Marimekko, as they say, is "big in Japan") drew from a rich design bank to revitalize and reinvent the classics.

While everyone's mom surely has an old Unikko print frock languishing in a closet, new patterns and prints include Aarre, inspired by the inside of a jewellery box, and Mokki, an homage to the cottage (like us, the Finns like to make the most of their summers).

Some of the most compelling items of the fall/winter fashion collection include a rainbow-coloured raindrop print on black cotton, and a revamped Harlekiini-patterned dress in vivid pinks and browns. Colour classics include a gorgeous red wool coat and a bronze-coloured thermal jacket.

If it's too cold to go outside, you could spend the winter wrapped in the rose-on-black-velvet Festivo-patterned duvet, or one of the colourful plush terry bathrobes with matching towels and shower curtains.

And if you're really inspired, you can buy yards of fabric imprinted with Marimekko designs and do something truly retro - make your own clothes, curtains, bedspreads or tablecloths.

While there is a nostalgia factor at play here for the golden age of fabric design, there is a whole new market for Marimekko.

"It's always refreshing" says Steve Miller, "when people in their twenties walk in and say, 'Wow, what a fabulous design.' "

Marimekko Concept Store

1233 Hamilton St., Vancouver

604-609-2881

http://www.marimekkostore.ca

[SpongeG]

i like this thing

[SSLL]

From: http://www.canada.com:80/ottawacitiz...6-67439a8461b3
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Canada's national Tiger
Ottawa's low-key retailer has quietly opened 182 outlets from sea to sea

Kristin Goff
The Ottawa Citizen

Saturday, November 17, 2007

It seems typical of Ottawa-based Giant Tiger Stores Ltd. that it has no grand plans to promote its new status in the Canadian retail market.

The low-profile company intends to send out a press release marking the fact that it is now a coast-to-coast Canadian retailer. The opening of a Truro, N.S., store on Nov. 3 and one in Cranbrook, B.C. last month filled the last links in its cross-country chain of 182 stores.

It is also, as it turns out, the largest Canadian-owned national discount retailer in Canada, now that Zellers and its parent, The Bay, were taken over by U.S. businessman Jerry Zucker.

Giant Tiger is, not surprisingly, proud to be Canadian and flies banners in stores to back up that point. But it is not likely to run a national marketing campaign to promote its latest milestones.

"The strength of Giant Tiger is at the local level," says Jeffrey York, the 44-year-old president. He makes clear that the company doesn't intend to distract customers or its franchisees by focusing on the national company.

"The strength is our people at the local level."

Its strategy of opening stores in small communities or as a "neighbourhood store" in larger cities offering a wide variety of goods at bargain prices, and letting local managers adjust the merchandise to suit their local areas, has helped the company survive a challenging retail environment in recent decades.

Rising competition and changing trends have killed department stores chains like Simpsons and Eaton's as well as discount chains like K-Mart and Woolco. The latter was bought out by Wal-Mart when it came to Canada in 1994.

Len Kubas, a Toronto retail consultant, says Giant Tiger has managed to do well in this environment because it is focused on a retail segment that is not going head-to-head with Wal-Mart.

Giant Tiger is "an impressive operator" that has managed to position itself as a "variety and convenience" store, where people can pick up everything from bargain-priced fashions to food products without driving to the suburbs, he said.

"It is highly focused in terms of what it does" said Mr. Kubas. "It doesn't offer high fashion. It is sort of more than a dollar store but not a department store."

Giant Tiger's people say they've not only survived but thrived in the post-Wal-Mart retailing era.

"Wal-Mart has been no problem at all, obviously since we've grown so much," said Gordon Reid, 74, who founded Giant Tiger in 1961 and now serves as chairman.

Mr. Reid opened the first store on George Street in the ByWard Market with plans to develop a discount chain in Canada after he gained insight into the trend by working with retailers in the United States.

Privately owned Giant Tiger had around $220 million in annual sales and 63 stores by 1994 when Wal-Mart entered the Canadian retail market. Since then, it has nearly tripled its stores and increased sales to $1.3 billion this year.

Part of the growth was due to a deal in 2000 with the North West Co., allowing the Winnipeg company exclusive rights to open franchised Giant Tiger stores in Manitoba, Alberta, Saskatchewan and British Columbia. So far, North West has 25 stores.

But a lot of the growth has been organic. Years before Wal-Mart moved to Canada, Giant Tiger spent time studying Wal-Mart's strengths and weaknesses in the U.S., said Mr. York.

They came up with a five-year strategy to emphasize more fashionwear, lower prices and increase their ability to "be nimble" or react quickly to changes, in preparation for the changes that it expected Wal-Mart would bring.

The company lets managers decide what to stock in individual stores, picking from a menu of Giant Tiger goods. Items are delivered by courier daily. The company, which has a team of globe-trotting fashion buyers, has also become efficient at delivering bargain-priced versions of the next trend quickly, sometimes within a few weeks.

Ironically, the competitive pressures that contributed to the disappearance of K-Mart, Woolco and others turned out to be a boon to Giant Tiger.

Since the late 1960s, Giant Tiger has worked on a franchise model that involves recruiting experienced retail managers, setting them up in a corporate store and then financing them to turn the store into a franchise operation that the manager would own.

It was a policy that attracted lots of highly experienced managers as the retail industry went through it sharp adjustment. At one point there were 17 ex-K-Mart managers running Giant Tiger stores, along with "a flood from Zellers and Wal-Mart," according to Mr. Reid.

Mr. Reid set out in 1961 to deliberately build a national discount retail chain. It was clear to him that the retail operations needed to grow to be able to order in quantities that would make the system work.

But the franchise idea just came along as a stroke of luck.

In the early days, "we were opening stores but we weren't making any money because the people who were managing them were just the people who were available," Mr. Reid said. Things changed when one manager, Jean-Guy Desjardins, wanted to start his own store in Maniwaki, and Mr. Reid formed a partnership with him.

It was an 'ah-ha' moment.

"Gee, the store made money and I didn't have to do anything. He did the advertising, he found the location, he merchandised it to suit his customers, he did everything," Mr. Reid recalls. "And, I thought, 'by golly, that's a good system.'

"From that point on all our stores were franchised."

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From: http://www.reportonbusiness.com/serv...Executive/home
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Mark Pacinda: How do you say ‘Boston Pizza' in French?
BERTRAND MAROTTE
Globe and Mail Update
November 16, 2007 at 6:19 PM EST
When Boston Pizza International Inc. decided it wanted to crack the Quebec market four years ago, the B.C.-based chain's executive team was warned by industry veterans that they shouldn't even bother.

Outsiders have had a notoriously tough time winning over Quebec consumers, and the eatery business is particularly difficult, given the sometimes puzzling culinary preferences of the francophone majority, they were told.

No doubt about it, La Belle Province presents its own challenges as an island of predominantly French language and culture in North America.

THE LANDSCAPE

Companies keen on making a foray into Quebec with their product or service need to be alert to the differences and respect the predominance of the French language.

To cite one recent case of what can happen when you fail to heed Québécois sensibilities: Coffee chain Second Cup sparked public protests and complaints last month when it dropped from some of its signs the two French words – “Les cafés” – that appeared before its English name.

BOSTON PIZZA'S ENTRÉE

Boston Pizza president Mark Pacinda decided his company was ready to expand into Quebec, but not before it built a credible base in the province.

The results so far indicate that the bet on Quebec is a winner. After just 21/2 years, Boston Pizza will have 24 restaurants in the province by the end of the year and is on track to have 50 by 2010.

The chain boasts more than 280 Canadian locations and sales last year of $647-million.

“We really took our time going in,” Mr. Pacinda says. “The first thing is that we wanted a Quebec team on the ground.”

A separate regional head office for Quebec was opened in the Montreal suburb of Laval 18 months before the first outlet was opened, in 2004.

Quebec City native Wayne Shanahan was hired to spearhead the Quebec strategy.

GOING QUÉBÉCOIS

Once the button on a Quebec launch was pressed, no detail was overlooked. For example, research was conducted into whether a French version of the brand name was warranted. “There's obviously no translation for Boston or for Pizza and we decided the name as it is would work,” Mr. Pacinda said.

A key discovery was that Quebeckers want to have the option of a multicourse lunch, not just the more packaged “combo plate” offering.

“They want a ‘table d'hôte,' in other words an entrée, a salad and desert,” he said.

Also, because wine has more of presence in the province than in the rest of the country, Boston Pizza's wine list in Quebec was expanded from the standard eight choices to 25 labels, Mr. Shanahan says.

The fine-tuning was even extended to the pizza pie: In Quebec, the cheese goes on as a final layer, not underneath the toppings. The Boston Pizza version was dubbed “La Québécoise Boston.”

And two Quebec standards – poutine and sugar pie – were included on the menu.

LE FRANÇAIS, TOUJOURS LE FRANÇAIS

Making sure that all business is conducted in French was also important, Mr. Shanahan said.

Many companies that move into Quebec, and even some local anglophone firms, don't bother to ensure that legal and business paperwork, and even day-to-day communications, are in French, he said.

“What you want to do is essentially be a francophone company.”

In another first for Boston Pizza, a local advertising agency was hired.

A separate ad campaign was created, including billboards that displayed a Quebec vanity licence plate with the words “Boston, QC” on it.

LESSONS LEARNED

Boston Pizza's carefully plotted wooing of the Quebec market is a strategy increasingly practised by retailers eager to make inroads in the province or consolidate their position.

Wal-Mart Canada Corp., for example, went on the offensive in the wake of the outcry over its decision two years ago to shut its Jonquière store after it became the first outlet in North America to be unionized. Wal-Mart insisted the closing was because the store wasn't meeting its financial targets.

The retail behemoth nonetheless was portrayed as a cold corporate outsider that cared not a whit about Quebec society.

A “Buy Quebec” campaign was launched last year, aimed at sourcing more homegrown products and groceries while playing to the province's regional tastes and local pride.

Outfits like Boston Pizza and Wal-Mart will obviously never be known as true Québécois companies.

But as Normand Turgeon, a marketing professor at the business school HEC-Montréal, wryly notes: “If you're going to be a bottle blond, you're better off choosing the right shade.”

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From: http://www.thestar.com/article/277276
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Going to the wall for the Asian mega-mall

Condo malls – common in Asia, but not in North America – have appealed to new immigrants who want to set up their own business.

The phenomenon is largely responsible for the explosion of Asian malls in the GTA.

Before 1989, all shopping centres were typically owned by developers who leased out their units, according to a Ryerson University study.

In a condominium mall development, units are purchased by individual investors. The owners form a corporation, collectively owning the building and shared spaces. The developer collects a management fee. The first condo mall was the Chinatown Centre in Toronto's downtown Chinatown, built in 1989.

A multitude have been built since then, the most prominent being Markham's Pacific Mall.

A decade ago, Carole Bell, then deputy mayor of Markham, was roundly criticized for saying Asian malls and signs were driving away non-Asians. Today, more than one in three Markham residents identify themselves as ethnic Chinese, and the issue is more likely to be about traffic than anything else.

Tony Wong


Scarborough/Markham border is ground zero as developers battle for share of market
Nov 17, 2007 04:30 AM
TONY WONG
BUSINESS REPORTER
On the site of a former Canadian Tire store in Toronto's east-side Scarborough neighbourhood, Sheldon Esbin is showing off his gleaming new mall.

"This used to be the garage bay," says Esbin, pointing to a restaurant that serves upscale Shanghai cuisine. No oil changes here, but crispy shredded ginger eel will set you back $13.99. Over in what would presumably be sporting goods is a cosmetics boutique. A pint-sized jar of face cream sells for $568.

"You could go on vacation for that," laughs Esbin, CEO of Splendid China Tower, an Asian-themed mall that opened earlier this year.

While most people won't be beating a path to Scarborough to buy pricey face cream, Esbin hopes they'll at least sample some of his other stores once they get over the sticker shock.

At the border between Scarborough and Markham, the neighbourhood surrounding his site has one of the largest residential concentrations of ethnic Chinese in Canada. The area has become ground zero in a battle of developers for the growing Asian market.

Not since the 1970s and 1980s, when Chinese migration moved north to Scarborough, then upward to Markham and Richmond Hill, has there been such a massive amount of planned development in the GTA.

Covering 96,000 square feet at Kennedy Rd. and Steeles Ave., Splendid China is directly across the street from the 270,000-sq.-ft., glass-wrapped Pacific Mall and the separately owned 300,000-sq.-ft. Market Village Mall – which bill themselves as the largest indoor Asian mall complex in North America – on the Markham side.

But that title won't last long. A five-minute drive east at Middlefield and Steeles, another 435,000-sq.-ft. mall is under construction. That mall, its developer says, will claim the title.

But the other malls don't plan to sit idly by. They each have plans to expand; Splendid China by as much as 200,000 square feet and Market Village and Pacific Mall by up to a combined 300,000 square feet.

When the dust is settled, about one million square feet of Chinese retail mall space is in development or being planned for the area – equivalent to a new office skyscraper in downtown Toronto.

"This is the most extensive development we've had in some time. What you are seeing is the birth of a major new shopping district," says Shuguang Wang, chair of the department of geography at Ryerson University, who has written studies on Chinese commercial activity.

A major reason for all the activity is that ethnic Chinese have been the fastest growing immigrant group in Canada over the last two decades, says Wang, and the majority settle in the GTA. Chinese is the third- most-spoken language in Canada, after French and English.

"The malls are appealing to the new waves of immigration that are looking for services," says Wang. While the GTA already has five Chinese districts – in Markham, Mississauga and Scarborough, and two in Toronto – the border between Markham and Scarborough is the new frontier. And right now, it's high noon.

At Scarborough Community Council last month, lawyers for the Markham malls argued expansion at Splendid China could have a severe impact on already clogged roads.

In a battle that promises to become more heated, Splendid China lawyers claimed the Markham malls simply want to delay the application of a competitor.

A decision on the Splendid China application is expected to come before the Ontario Municipal Board in December.

One person who isn't happy about all the new building is Sam Cohen, the developer who created the Pacific Mall more than a decade ago and turned it into Toronto's most successful Asian mall development.

"It's a free country. Anyone can build. But the problem is, if you put a new mall in, you could have a problem with over-saturation. Especially when you have all these malls so close together selling the same items, it becomes like a zoo," says Cohen. "Just because one mall does well, now you have everybody coming at once."

Cohen is worried about traffic spilling over from Splendid China across the street, creating congestion for clients at his mall and impacting his own expansion plans, which may include a hotel on site.

A mechanical engineer by training, the 63-year old developer formed Torgan Group with a partner more than 20 years ago and started building strip plazas and medical buildings throughout the GTA. Cohen says he built Pacific Mall because he "thought it would work well. I imagined a town with streets and avenues and a lot of daylight. So I put in a lot of windows."

Behind Cohen's glass-enclosed Pacific Mall sits the rustic Market Village, with retail shops that would fit into an Anne of Green Gables theme park. Most people think the malls are part of the same development since they share parking space, but they have different owners.

Market Village is the most poignant symbol of the change in Markham's demographic. Built as a general mall, with touches of Victoriana, almost two decades ago, it played up the rural roots of Markham – a place to have tea and crumpets, not dim sum.

More than 10 years ago, sensing change in the area, lawyer and developer Rudy Bratty decided to change it to Asian development. The success of Market Village led to other Asian building in the area, which led to controversial comments by then-deputy mayor Carole Bell that there were too many Asian theme malls in Markham and that "everything's going Chinese." One wonders what she'd say now.

Certainly, with mainland China the No. 1 source of immigration to Canada, and many newcomers settling in the Markham area, the prevailing sentiment is to build – and the bigger the better.

Market Village's expansion has already been zoned and approved by Markham, says the mall's lawyer, Barry Horosko. The expansion, combined with plans by Pacific Mall, would bring another 300,000 square feet of space to the market.

Horosko says his client isn't opposed to the expansion of Splendid China, but wants to make sure the City of Toronto "does a proper job in making sure the necessary road improvements are in place."

Splendid China's Esbin, a lawyer turned investment banker and developer, says he's spending millions on road improvements.

But right now, the malls are competing for consumers. Esbin says they can co-exist, and possibly bring new customers to the area.

"It's about mall wars. We're all trying to get market share, but it's a big market," he said.

The war may exact a toll. Apart from the traffic, the area is also in danger of being overbuilt, with too many retail stores targeting a narrow community, warns Wang.

But all the new development could produce a destination shopping point and potential tourist draw, especially if Canada receives Approved Destination Status with China, which would mean more tourists from the mainland, she says.

"I don't think we will see this kind of intense activity again for a long time," Wang says.

Meanwhile, as the Markham and Scarborough malls fight over future market share, Terry Yiu is busy constructing his 21st-century vision of what an Asian mall should look like.

A five-minute drive east along Steeles Ave. from Splendid China, Yiu broke ground this summer on what must surely be the death star of Asian shopping malls, on a massive 8.5-hectare site in Scarborough.

The 435,000-sq.-ft. first phase will already make it the largest such mall in the Greater Toronto Area.

"We are building a regional mall, not a neighbourhood mall. This will be a destination point for consumers," says the 41-year-old developer, who has another 8.1 hectares to work with for phase two.

Yiu's aiming high, starting with his mall's name.

The Landmark is a legendary mall in Hong Kong's central financial district, housing Christian Dior, Louis Vuitton and China's only Harvey Nichols department store.

The Scarborough Landmark won't have quite the same cachet, but Yiu wants to eschew what he calls the "junky" flea market aesthetic of some Asian malls.

His mall, with the look of a space-aged aircraft hanger, will give a nod to its Canadian farming roots. Two heritage homes, the Underwood House and the William Stone house, will be preserved and placed inside the mall, possibly for use as coffee houses or restaurants.

"People shop in Canada for needs. But people shop in Hong Kong for wants. Shopping is like a religion in Hong Kong," says Yiu, who grew up in Hong Kong before moving to Canada to study chemistry at the University of Guelph. "This design is the culmination of shopping for three years in malls around Asia."

The first phase will offer shopping and entertainment zones, and Yiu's open to ideas for the second phase. "The sky's the limit," he says.

"It's a chance to build something special."

[SpongeG]

Lululemon is on its way to Halifax

It’s not just a rumour anymore; lululemon is making its way to Halifax.

Sara Gardiner, spokeswoman for the yoga-inspired clothing chain, said she’s thrilled the popular garment company is setting up shop in Halifax because she gets random calls from people in Nova Scotia asking for the store.

She said there have been rumours for a couple of years about the possibility of a franchise in Halifax, but it just hasn’t happened yet.

“I can finally today say, we have signed a lease, so it’s going to be coming in mid-May,” she said Wednesday.

Gardiner said Halifax has been on the company’s radar for several years but they make it a priority to find the right time and right location for an opening.

“We wanted to make the perfect entrance and this is great,” she said.

Bernie Smith, spokesman for the Spring Garden Road Business Association, said he heard the shop would be joining the Mills Brothers empire.

“My understanding is that the Mills people are building an extension piece on to the building to accomodate it,” he told The Daily News.

The company’s first store opened in the Kitsilano beach area of Vancouver, B.C. in 2000 and since then franchises have popped up across the country and around the world.

The Spring Garden Road location will be the first lululemon shop to open in Atlantic Canada.

Gardiner said the Halifax location has been a long time coming.

“We have had Halifax on our radar for quite a while,” she said.

http://www.hfxnews.ca/index.cfm?sid=86635&sc=89

[SteelTown]

Lowe's enters crowded market
VP says quick customer service will set U.S.-based chain apart from competitors

December 08, 2007
Lisa Grace Marr
The Hamilton Spectator

Lowe's success in Canada may rest in the little red buttons in every one of its aisles.

It all comes down to differentiation -- what makes Lowe's stand out.

Alan Huggins, vice-president of operations said at Lowe's, it's about staff.

Its Hamilton job fair attracted 2,000 people and that helped the Hamilton's store objectives of getting the right staff in the right positions, he said.

"We were able to pick the best of the best. The friendliness and actions of our customer service staff is second to none. That's the main thing."

So if there's no one around to help pick up a heavy vanity or get a blind cut to a custom width, just touch the button and a call for help comes over the store's speaker.

Quick response to customers may be the edge Lowe's needs in a market with a lot of tough players.

John Torella, senior analyst with retail consultant firm J.C. Williams Group, said it's possible Lowe's innovative merchandising aimed at female customers may not be enough.

"How are they going to be special, relevant and say, 'We have something different' ... that's what we're really anxious to see," he said . "Every strategy eventually fails. I think everyone is recognizing the impact of the female customer on this category. Based on the advertising I've seen, I don't see any attempt to differentiate. To me, it's pretty status quo. I was expecting a lot more.

"The jury is out as to whether or not the market can really sustain high-profile brands we have in this category."

Torella said Lowe's faces the additional challenge of trying to emerge in a competitive market in a foreign country with its complex mix of new immigrants and different preferences.

In Canada, the dominating brands in the $40-billion industry are Home Depot and Rona Inc., both with about 15 per cent of the market share, according to estimates by Michael McLarney, editor of Hardlines, a home improvement industry trade publication.

Canadian Tire (home improvement/hardware only) and Home Hardware stores fall into third and fourth with about 12 and 11 per cent of the market. (However, Lowe's U.S. is already eight times larger than Rona.)

Torella said part of Rona's advantage lies in its vast array of formats that can be tailored to various markets.

Home Depot Canada's strength is in its sheer size and impressive buying power as the second-largest U.S. retailer with a heavyweight Annette Verschuren as its Canadian president.

McLarney said, "The concern here was Home Depot in Canada has always been a lot more female friendly than in the U.S. and so is RONA ... could Lowe's meet that challenge?

"Once you see the stores, I think you'll see they can do that ... very stylish merchandise mix. What we were concerned about is will they take into account the distinct Canadian taste, the cultural differences, but it looks like they're getting off on the right foot."

In addition, Huggins said there has been attention paid to Lowe's Canada's product mix. For example, Canadian tastes run to more contemporary designs, cedar decking and there is a demand for higher-end appliances, such as Bosch and an extensive list of standard-sized assembled and unassembled cabinetry.

Certainly the competition in the market hasn't slowed growth.

Huggins said Lowe's estimates there is room in the market for about 100 more stores -- they've already approved 20 more sites across the country.

"We think the customer will decide where to shop, whether or not the market is saturated," he said. "

In fact, in 78 per cent of Lowe's U.S. markets, there is a major competitor within a 16-kilometre radius.

There's no sign the competition is sitting back as Lowe's walks in.

Rona is on a tear, with its announcement of intentions to open about 50 new stores, primarily in Ontario and Quebec. That includes a 100,000-square-foot "female-friendly" store in Waterdown, which opened this fall.

The focus on female-friendly merchandising means more decor items, more visual displays and more selection.

Rona also purchased Dick's Lumber, a Western Canadian chain in September and announced Thursday a new ad agency for a new marketing campaign.

Home Depot has a very aggressive international growth strategy, with plans to expand its new Asian division.

McLarney argues there is room in the market for larger format stores.

"The population in Canada is growing especially in the urban areas where these big boxes are located: Toronto, Montreal and Vancouver. With help from immigration, the consumer base keeps growing enough that it will be enough to accommodate," he said.

He said though that big-box stores in Canada have definitely maxed out at around 22 per cent about five years ago.

"At the same time the big box is turning into something different ... they're turning into the new department store. It's just who's going to capitalize and reinvent the most imaginatively, that's the question."

There are numerous merchandising innovations at Lowe's, all aimed at helping customers see their dream before it's a reality.

While it has stacks of two-by-fours, plumbing pipe and a suite of tool bays like other improvement stores, it also offers 82 ceiling fans, 69 refrigerators, 64 dishwashers, nine blenders, plants, kitchen cabinets, curtains, rugs, stickers for the walls, and the list goes on.

"We debated a new title for our store: If you can't find it here you don't need it," joked Huggins. "If you're coming in here dreaming of a project, our customers say this is the place."

[SpongeG]

the Lowes I have been to have been quite nice - more like home depot than Rona - some nice brands for paint (like Laura Ashley) - hopefully they carry them here

[neilson]

Originally Posted by SpongeG

the Lowes I have been to have been quite nice - more like home depot than Rona - some nice brands for paint (like Laura Ashley) - hopefully they carry them here

I hope Lowe's buys out Rona. Either that or Rona comes down to the USA and makes for a strong 3rd competitor to Lowe's and Home Depot here.

I will tell you, it's gonna be a bloody business battle between Lowe's and Rona.

[SpongeG]

they can probably beat Rona on service - Rona has horrible service from my experience - its next to impossible to find anyone for help and the cashiers are pretty aloof

[SteelTown]

I've seen the new Lowe's here in Hamilton and it's HUGE! Monster size box, probably doubled the typical Home Depot format. They must carry everything. Doesn't open until Monday. You can also see the Garden section (greenhouses) which again is HUGE!

[SteelTown]

Here's an aerial view of the Lowe's store in Hamilton.....



The green is the new Lowe's and the blue is Home Depot, you can see how huge the Lowe's store is.

In Hamilton there's no Reno, just in the suburbs, so that's probably one reason why Lowe's choose to open it's first store in Hamilton.

[SpongeG]

the Lowes are really nice - can't wait till they head west!

Lowe's Expands Internationally, Opens First Canadian Stores

Home improvement retailer opens locations in South Brampton, Brantford, Hamilton

TORONTO, Dec. 10 /PRNewswire-FirstCall/ -- Lowe's Companies Canada, ULC (Lowe's), a subsidiary of Lowe's Companies, Inc. , today opened its first three Canadian stores in the Greater Toronto Area, marking the home improvement retailer's first international expansion. At 7 a.m., stores opened in South Brampton, Brantford and Hamilton. Three additional stores are slated to open February 1, and a seventh is planned to open shortly thereafter. Lowe's has more than 15 additional Canadian sites in the pipeline in various stages of development.

"Today is about delivering on the promise we've made to Canadian customers since we announced our decision to bring Lowe's passion for customer service to Canada," said Don T. Stallings, president, Lowe's Canada. "Lowe's is ready to meet the unique home improvement needs of Canadians with our everyday low prices, products and services. Every customer presents a new opportunity to deliver on that promise."

Stores in East Gwillimbury, North Brampton and Toronto are slated to open February 1, followed by one in Maple. Lowe's announced in 2005 its intentions to open its first stores in the Greater Toronto Area, with as many as 100 stores in Canada over time. Each new store creates up to 175 local jobs and represents an average investment of more than $18.7 million CDN(1) ($18.5 million USD).

The company opened its Canadian headquarters in Toronto in 2006 and now has more than 700 Canadian employees in the office and its stores. Lowe's continues to hire employees for its upcoming stores and offers comprehensive benefits for regular full-time and part-time positions. For more information, visit www.lowes.ca/careers.

Lowe's investment in local communities goes beyond its retail locations. The Lowe's Charitable and Educational Foundation recently announced a $500,000 contribution to the YMCA of Greater Toronto for Camp Pine Crest as well as local Toronto-area projects. In addition, employees have already volunteered on home renovation projects with the Home Ownership Affordability Partnership (HOAP) in Hamilton and participated in a groundbreaking ceremony for the "Lowe's Loop" fitness trail in Brantford's Fordview Park. Work on the trail will begin in the spring.

"Lowe's has a long and proud history of giving something back to the communities we serve," added Stallings. "Our focus is on education, safe and affordable housing and community improvement projects for places that bring people together. It's a commitment we take seriously, and all of us at Lowe's Canada look forward to serving the community and truly becoming a part of it."

http://money.cnn.com/news/newsfeeds/...10122007-1.htm

[SSLL]

From: http://www.chainstoreage.com/story.c...fPage=Homepage
_________

Bed, Bath & Beyond Opens in Canada

Richmond Hill, Ontario - December 7 - Bed Bath & Beyond opened its first store in Canada at the Glen Shopping Center in Richmond Hill, Ontario. The 34,000-sq.-ft. store opened its doors on Friday.
“We are excited to open our first store in Canada and to share our longstanding traditions of exceptional customer service, great value and a broad assortment of merchandise with the GTA [Greater Toronto Area]. Our new location in the town of Richmond Hill, which is experiencing a time of extensive growth, is centrally located off major highways and offers easy access for customers,” said Steven Temares, CEO of Bed Bath & Beyond.

[SSLL]

From: http://www.retailingtoday.com/story....ables&id=34557
________

Food co-branding advances in Canada
By Mike Duff

STELLARTON , Nova Scotia (Dec. 11) Co-branding in private label food has emerged as a trend, and a recent example involving Canadian supermarket chain Sobeys suggests why it is an increasingly popular option for retailers who want to address particular issues.

Sobeys has struck a deal with Disney Consumer Products for a co-branded kids’ food and healthy beauty aids line dubbed Compliments Junior Disney that includes nearly 100 new products, the majority of which are formulated to address acute nutritional issues. Of course, Sobeys isn’t the first food retailer to co-brand a private label. It isn’t even the first to do so with Disney. Disney Magic Selections launched at Kroger in 2006, featuring Disney and Disney Pixar characters—as does Sobeys Compliments Junior —on the packaging of a 100-SKU food and health and beauty aid line. Like Sobeys Compliments Junior, Kroger offers a heavy concentration of healthy alternatives. The program was set for expansion this year to baby and toddler products, personal care and floral items.

With children’s health and obesity concerns rife in both the United States and Canada, demand for products with a superior nutritional profile has grown. The approach that both Kroger and Sobeys have followed provides instant recognition, and even a degree of credibility via the Disney name. The Disney co-brands also specifically associate the chains with efforts to boost children’s health in the markets they serve, a nice point of differentiation.

Not all co-branding efforts are focused on children or even health. Costco’s co-branding of its Kirkwood private label with Paul Newman and Martha Stewart plays to the wellness trend to a degree, but also introduces a gourmet element into the own-brand story.

At Sobeys, the Disney name is married to the supermarket operator’s Compliments private label. The co-branded line includes Compliments Junior Disney Mickey Burgers, Compliments Junior Disney Alpha-Taters mashed potato letters and Compliments Junior Disney fruit Pic-Mix dried fruit snack. While not every product might be considered healthy, 75% of Compliments Junior Disney products meet the criteria of the Canadian Heart & Stroke Foundation’s Health Check initiative, providing a designation that’s similar to the heart-check seal awarded by the American Heart Association’s Food Certification Program.

Compliments Junior Disney also addresses the concerns of busy parents by including among the package graphics a Canada’s Food Guide serving information icon that highlights the applicable daily serving of vegetables and fruit, grains, dairy and alternatives, or meat and alternatives. Packaging also offers key positive product attributes through the use of four icons, highlighting the nutritional benefits each product delivers as it impacts the health of teeth, bones, eyes or muscles. All products are formulated for easy preparation to help out adults who need convenience in coping with their busy routines, and are priced at a discount of about 20% to competitive branded products to aid family budgets.


As the 100-SKU size of the launch suggests, the Compliments Junior Disney program was intended to address children’s nutritional issues as comprehensively as was practical. “From the start, we designed Compliments Junior Disney around healthful products,” Scott Cooper, Sobeys vp of consumer marketing and location planning for corporate brands, told Retailing Today, but he added that the retailer, in taking the broad view, kept in mind that food items kids won’t eat can’t be healthy. “They have to taste great and have to have a dimension of fun.”

The fun angle is important as today’s kids are increasingly vocal about products purchased for them. Character tie-ins inform children that the products have their sensibilities in mind. Disney, by virtue of its long history in children’s entertainment, may be regarded as something of an authority on both the sensibilities of children, as well as their uniqueness and sensitivities. “Disney did a great job helping us segment the product portfolio properly to target kids of different ages,” Cooper said.

Which suggests another advantage of co-branding—bringing new kinds of consumer product experience into a retailer’s private label program. In the case of Compliments Junior Disney, that meant helping Sobeys modify the program to the consumer and regulatory requirements of the Canadian market.

Julie Mills, Disney’s senior manager of food, health, beauty and pets for Canada, said food products have become a priority for the company in its role as a licensor. Disney especially wants to identify itself with solution-oriented items for today’s families, so it is working with partners to develop convenient, healthy products that use graphics and flavor to entertain kids as vehicle to improve their health. Disney’s support of its co-brands doesn’t stop there, though. Disney has been working with Sobeys on a big promotional push that will introduce Canada to Compliments Junior Disney throughout the coming months.


“This will be one of largest marketing support programs Sobeys will be doing this year,” Mills noted. “There will be TV, radio, print and Web advertising, as well as a lot in-store. Sobeys will be using wraps around their trucks to advertise. We’ve allowed them to use some of our best creative [and] given them access to our art library so they can best use our characters.”

Thus, Disney has helped Sobeys develop a comprehensive program to address nutritional issues impacting Canadian children in a manner that meets parental needs, but also addresses the preferences of kids, even those kids who are normally wary of anything that might be good for them.

[MolsonExport]

Those damned home improvement centres. Here is an idea: How about having leaflets at the front of the store, complete with a map? It is virtually impossible to find anything at these places, what with the merchandise stacked 100 feet high.