UT Member
I spoke to the Regional VP of The Bay today, and they won't bring Lord & Taylor to Canada. They are, however, bringing some L&T brands to The Bay, including Z-Spoke by Zac Posen handbags (they're currently at your Queen St. store). America's Lord & Taylor will also get their own version of The Bay's 'The Room' in a few selected stores, starting with their Manhattan flagship.
Former Torontonian. Still keeping in touch.
Senior UT Member
What are the chances the Bay on Bloor changes hands to another department store.
Is Bay still interested in that location?
It's basically Lord & Taylor with "The Bay" name. They seem be to doing really well since the take over, i can't see them changing the name or store now.Originally Posted by Thanos
Senior UT Member
Okay, that's very different from your earlier post, where you stated that Lord & Taylor *was* coming to Canada. I was curious where you got that news.
When NRDC first bought HBC, there was some speculation that they would bring the L&T banner to Canada. But just about everything about the strategy they've taken with the Bay since then makes pretty clear that L&T is not coming here, especially now that the two banners are becoming more and more similar (now sharing brands, concepts and Bonnie Brooks).
Senior UT Member
I do know L&T and Bay are essentially the same store and owned by the same company.
What i am interested in finding out is if the Bloor street location of the Bay has gone through any renovations over the last year. If not are their any rumors that Bay may be handing over that location (ie. not interested in it anymore)?
You must have me confused with someone else. I never said L&T was coming to Canada.
Senior UT Member
You're absolutely correct. It was Otto that made that comment. I did confuse you for someone else. Sorry about that - my apologies.
Senior UT Member
No worries skeezix.
There's just been so many rumors in the retail industry the past 6 months it's hard to keep track.
I wonder whatever happened to those Saks rumors.
Senior UT Member
Rumour has it (via Vancouver SSP) ...
That SEARS turned down an offer of 80M to buy out its Eaton Centre (Toronto) lease.
I cannot confirm or deny this based on personal knowledge......
However, I find the rumour credible; and can't imagine that offer was made without a minimum of 1 solid offer, if not 2 or more......for the space in question.
There seems to be little doubt in the market that Nordstrum is the leading tenant at the moment; though the over 800,000 sq feet ++ that is Sears (including head office) (the former Eaton's space) would be extraordinarily large by Nordstrum Standards.
I don't see the space as easily divisible other than giving up the remaining basement level.
I can not confirm any offer from Saks'; but as noted in my previous posts, it is not a secret that multiple U.S. retailers are looking at the space.
Probably the most suited to the space (on size) would be Macy's......but I haven't heard there name as much lately as in the past..........
An environmentally conscientious, libertarian inclined, fiscally conservative, socialist.
Senior UT Member
But presumably wouldn't the offer have come from Cadillac Fairview, who bought about the other leases? They are the ones who could profit the most from freeing up that space (currently leased at below-market rates) and subdividing it.
Senior UT Member
They are still not commenting on the death of the banner rumours but they are taking the next steps on the store itself.
http://www.montrealgazette.com/busin...903/story.html
UT Member
I was speaking to a manager at Nordstrom in Seattle last week, and this person says Nordstrom's major challenge right now is Canadian law relating to their bringing in American managers to run Canadian operations. According to him/her, it's as much of a hurdle as securing real estate at the moment. I found that interesting.
Former Torontonian. Still keeping in touch.
Senior UT Member
Nordstrom pins Canadian push on former Sears locations
MARINA STRAUSS - RETAILING REPORTER
The Globe and Mail
Published Wednesday, Jul. 18 2012, 8:18 PM EDT
The fast-shifting department-store landscape is getting another jolt from a U.S. retailer.
Nordstrom Inc. of Seattle is finalizing its plan to set up shop here in four locations, including three top sites that Sears Canada Inc. is abandoning this fall. The plans come as Sears announced on Wednesday it will close yet another store, at Deerfoot Mall in Calgary.
Upscale Nordstrom plans to launch its first stores here at the Pacific Centre in Vancouver, Chinook Centre in Calgary and Ottawa’s Rideau Centre – whose leases Sears sold back to landlord Cadillac Fairview Corp. this year for $170-million – as well as Sherway Gardens mall in Toronto, industry sources said.
Nordstrom’s long-awaited entry into the Canadian market within the next few years hits the retail market at the same time that a bevy of foreign retailers are arriving here, including U.S. cheap-chic Target Corp. in 2013.
The latest addition is bound to pinch mid- to high-end fashion incumbents, including Holt Renfrew, the Bay and Harry Rosen.
“Some of the fancier stores will find that the competition has heated up,” said Hermann Kircher, a retail real estate consultant in Toronto.
“It will have a negative impact on Holt Renfrew – not devastating but something they would notice … The Bay would feel the impact of Nordstrom also.”
Spokespeople for Nordstrom and Cadillac Fairview on Wednesday said they had no news to share.
Nordstrom’s conservatively stylish offerings and attentive customer service will further shake up the market. The new addition comes as the Bay rapidly overhauls its strategy to move more upscale, while Holt’s and Harry Rosen refine their luxury appeal to gear up for a more brutal retail scene.
Amid the changes, giant discounter Wal-Mart Canada Corp. is investing in its largest expansion yet as it prepares for Target’s arrival, while Zellers is closing its underperforming stores to make way for Target after the U.S. chain bought most of Zellers’ leases from Hudson’s Bay Co. for $1.8-billion. The Bay, for its part, has talked to upscale U.S. department-store Bloomingdale’s about a partnership that could see Bloomingdale’s boutiques in Bay stores.
“There will continue to be a lot of change in the market,” said Neil Linsdell, an analyst at Industrial Alliance Securities in Montreal. “Everybody is going to have to step up their game.”
Adding to the uncertainty, mall operators and Nordstrom officials have been locked in negotiations for months as the U.S. retailer makes its painstaking decisions on store sites for Canada.
Nordstrom is known to drive a hard bargain, demanding relatively low rents in exchange for drawing big crowds to its stores and the rest of the mall.
Nordstrom is still awaiting approval from its board of directors for the four new Canadian locations as well as final documents, industry sources said.
It is believed the retailer also wants to open a store at Yorkdale Shopping Centre in Toronto, one of the country’s top malls with average sales of about $1,300 per square foot.
The centre’s owner, Oxford Properties, was prepared to put aside a 165,000-square-foot space for Nordstrom near the mall’s subway entrance, sources said.
But Oxford also wanted Nordstrom to open a store at its Square One Shopping Centre in Mississauga, Ont., which the U.S. chain is reluctant to do, they said.
Nordstrom is also believed to covet the Sears flagship store site at the Toronto Eaton Centre, but Sears chief executive officer Calvin McDonald said recently he is not looking to unload that lease, which is believed to cost Sears only about $1 per square foot in rent. Sears runs its head office on the top floors of the site.
Vincent Power, a spokesman for Sears, said on Wednesday that the retailer is not looking to sell other leases beyond the four already unveiled.
The new CEO is focused on his three-year plan to turn around Sears, including re-focusing on core departments such as appliances and mattresses and revamping existing stores.
Sears’ lease sales come as its U.S. parent plans to spin off a large part of its stake in its Canadian unit, which steps up pressure on it to bolster its performance and eliminate businesses with poor returns.
Mr. Kircher, the consultant, predicted Sears will take advantage of more store closings when leases expire or even before, as it is doing with its Deerfoot store. , whose lease runs out next year.
“I don’t think it looks all that great for Sears,” Mr. Kircher said.
“They have to make some drastic changes.”
Mr. Kircher said there’s room for a retailer such as Nordstrom, which is positioned at a price level between the Bay (except for its tony Room fashions) and Holt’s. The Bay is trying to occupy more of the higher end space but there may still be room for another player, he said.
UT Member
Some more detail on the news...
http://www.retail-insider.com/
NORDSTROM Secures Leases for 4 Canadian Stores
Retail Insider was just informed that Nordstrom has secured leases for 4 Canadian stores. These locations will include:
1. Pacific Centre in Vancouver, British Columbia - 225,000 square feet
2. Chinook Centre in Calgary, Alberta - 173,000 square feet
3. Rideau Centre in Ottawa, Ontario - ~200,000 square feet and
4. Sherway Gardens in Toronto, Ontario - 225,000 square feet.
All locations are currently occupied by Sears stores. Nordstrom's board of directors is expected to approve these leases by early next week.
Negotiations are still underway for Nordstrom to occupy part of the current Sears store at the Toronto Eaton Centre. Talks are also underway for Nordstrom to take over the current Sears location at Toronto's Yorkdale Shopping Centre. A previous attempt at building a 165,000 sq ft Nordstrom at the East side of Yorkdale fell through, so talks to take Yorkdale's Sears is still proposed. Yorkdale's Sears store is 190,000 square feet.
Given the size of these locations, it is expected that they will include such amenities as restaurants, spas, and the luxury women's department called 'Collectors' (carrying such designers as Valentino, Gucci, Yves Saint Laurent, Prada, etc).
At press time, Bloomingdale's is still negotiating with The Hudson's Bay Company to open concessions within several Bay stores, including a full-line Bloomingdale's store at 44 Bloor Street East in Toronto, Ontario.
More info to follow. Stay tuned!
UT Member
There have been rumors at Sears of the Head Office's being relocated (again).
This would be a clever move to optimize space and revenues on their part.
Interesting call. They can have their Eaton Centre retail cake and eat it to...
Senior UT Member
Opening at Sherway would definitely make that mall more of a destination (sorry, but the lack of good TTC access makes it a little bit out of the way for many), but the Holts and Bay at that mall aren't that great, so I worry about what the impact would be for them.
Founder & Webitor-in-Chief of DelectablyChic! (formerly Prospere Magazine), an online-only lifestyle publication targeting young, hip professional women.
Posting Permissions
Reply With Quote
Bookmarks