Nordstrom is coming to Canada

Discussion in 'Retail' started by kkgg7, Mar 2, 2012.

  1. kkgg7

    kkgg7 Banned

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    G&M seems to imply Nordstrom is considering expanding to Canada. Not online shipping, but real stores.

    "The closings of the Sears stores now provides Nordstrom with the opportunity to set up shop in Canada after it looked unsuccessfully for sites here for the past year.

    Last month, Erik Nordstrom, executive vice-president at the U.S. chain, told a conference call the retailer still finds Canada to be “an attractive market for us ...

    “The challenge, as you can probably guess, is the real estate,†Mr. Nordstrom said. “It’s a tough real estate market given the – mainly the dense urban areas where the population is. So we have an interest in there and we think we could learn a lot that could inform us for other expansion after that. But right now, it’s really a real estate question and at this point we haven’t answered that one.â€

    Colin Johnson, a Nordstrom spokesman, said late Thursday it continues to look “at a number of different opportunities in Canada. We don’t as yet have anything definitive to share.â€

    And while the Sears locations are attractive, they may now be pricey for Nordstrom. While Sears is believed to have paid low rents, its future replacement is expected to face big rate increases. "



    http://www.theglobeandmail.com/glob...e-three-stores-in-top-markets/article2356330/
     
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  2. prosperegal

    prosperegal Active Member

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    The stores Sears is closing are in Vancouver, Calgary and OTTAWA. I can see Vancouver or Calgary being a first to market city, but Ottawa??
     
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  3. kkgg7

    kkgg7 Banned

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    why? I thought Ottawa and Calgary have similar population, no?
     
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  4. prosperegal

    prosperegal Active Member

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    Vancouver is definitely a hipper, more stylish city. Also, I think Vancouver has more of a Nordie's demographic than Ottawa.
     
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  5. kkgg7

    kkgg7 Banned

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    of course. but you were comparing Ottawa to Calgary previously, right?
     
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  6. prosperegal

    prosperegal Active Member

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    Both, actually. And I think Calgary ALSO has more of a Nordie's demographic than Ottawa. Ottawa is usually fourth or fifth in line to get stores - they didn't get H&M until perhaps two-three years ago, well after it landed in Calgary.
     
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  7. Northern Light

    Northern Light Active Member

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    OK,

    Let's clear up what we know, versus speculation.

    SEARS is surrendering (actually selling) back its leases to Cadillac Fairview in three locations.

    This does not necessarily result in one new chain occupying all three locations.

    Nordstrum is widely rumoured (understood) to be interested in the Canadian market and has definitely had real estate people in play here looking for space.

    So they might well take all three stores ( I have no inside knowledge)

    However, its not like they're the only U.S. retailer chomping at the bit.........

    Granted this is rumour.........but its widely rumoured......that Sak's and JC Penny are both looking at the Canadian market in a serious way. While some others are perhaps more removed.....but not out of the question (Macy's, among others)

    ****

    With respect to Ottawa as a market, let's remember it does support Holt's ......it is a 1 million person market and not exactly a modest income one.

    It certainly would not be first on the list...........but I expect its a market in play; and if one or more new players enter the Canadian market, as with Target, I don't expect them to enter one market only, or even 2, that's not cost-efficient.

    Regardless of who gets these spaces (be it one or more of the variously rumoured retailers)...

    Expect that they are not coming to be absent from the Toronto or Montreal markets.

    Also watch for other spaces both new and existing to become available shortly.....

    Just a hunch.......
     
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  8. Bayer

    Bayer Active Member

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    If only this incredible shrinking department store could vacate the Eaton Centre as well!
     
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  9. reidjr2010

    reidjr2010 New Member

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    While i don't think Ottawa would be the top if the list it would be up there as a market that is good for this type of store the Rideau Centre is a very good mall and this would appeal to some stores to be that close to the hill its a win win now with that said there has been rumors Ogilvy or Simons could be in play as well this area left by Sears will be filled and with such a big space it will be interesting.
     
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  10. Toronto1

    Toronto1 Active Member

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    An offer was made for the Eaton Centre location, but was turned down.
     
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  11. prosperegal

    prosperegal Active Member

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    Simons, maybe, but Ogilvy was recently purchased by the Westons, with Holts moving in. The current Montreal Holts location will be turned into condos.
     
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  12. bAuHaUs

    bAuHaUs Active Member

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    Same applies to Yorkdale. Sears appears to at this time want to keep certain locations and still operate them under the Sears banner (persoanlly don't know why...when their Canadian average store sales productivity is around $200/SF). My take is that in the coming days/weeks more landlords will make offers to take back Sears space in their centres. For some, the clear intent is to swop the Sears space for another department store (e.g., Nordstrom, Simons, etc) , and for others they will most likely chop the Sears box down into higher rent paying CRU tenants since there are no suitable big box/department store takers. The only way Sears can survive in Canada the coming onslaught is to get out of the department store business, take the cash from selling it's space back to LL (like they've done in a bigger way in the US), and re-invest in an smaller-community based store format focusing on the fundamentals like white goods, appliances, hardware, etc. Take the Corbeil store model from Quebec and roll it out across Canada.
     
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  13. Coruscanti Cognoscente

    Coruscanti Cognoscente Senior Member

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    For the record, there are no H&M stores in Ottawa.
     
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  14. prosperegal

    prosperegal Active Member

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    REALLY? I thought they had one at the Rideau Centre. Guess I was wrong. Funny how they have them in Kingston and London, but not Ottawa. Guess Kingston and London are targeting the university crowd from other cities
     
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  15. Skeezix

    Skeezix Senior Member

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    I actually think this deal makes it slightly more difficult for Nordstrom's (or someone else) to enter the Canadian market through these stores. Their best bet was to buy Sears Canada, take the leases in which they were interested, and sell off the other stores to other retailers or sell them back to landlords to help finance Nordstrom's entry into Canada. Sears' parent in the U.S. is desperate, Sears Canada is in trouble -- it is probably a matter of time before Sears Canada says yes (just like it took HBC some time before they finally sold the Zellers leases to Target).

    Sears Canada has some spectacular lease with rents at a fraction of market rents -- dating back to the days when Eaton's was a behemoth and helped develop a lot of these malls, and when landlords wanted a great anchor like Simpsons Sears. Now if Nordstroms wants to occupy the former Sears stores at the Pacific Centre, Chinook Centre or Rideau Centre, they will need to bid on the space and they will be paying way more that Sears was paying for the stores. And, frankly, Cadillac Fairview may determine that it's more lucrative to subdivide the space among smaller retailers.
     
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