samsonyuen
Active Member
Plus, the logo is Lord & Taylor.
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JasonParis
Moderator
Corporate names (and the federal government) are exempt from Quebec's language laws anyway. They could call their stores "English is the best language ever" and there's nothing stopping them from doing that.
Towered
Superstar
Looking at google maps the other night, it would be fairly easy to extend Sheppard west as far as Kipling, but after that you'd have to smash through an established residential neighbourhood to reach Woodbine Centre/Rexdale Blvd. The city needs improved road connections. In Rexdale they're especially bad. Extend Wilson west to meet up with Islington and Rexdale Blvd too.
Sorry for going off topic - I'll shut up now.
samsonyuen
Active Member
http://www.nationalpost.com/story.html?id=665085
_______________________
Bay, Zellers beyond fixing
Would-be saviours should treat HBC as a real estate play
Sean Silcoff, Financial Post Published: Saturday, July 19, 2008
Split the Bay chain into entities based on store type and package them off to different buyers.Chris Wattie, ReutersSplit the Bay chain into entities based on store type and package them off to different buyers.
I once toured the Bay's downtown Toronto store with the chain's then-president, Ira Pickell. He was a brash, accomplished American retailer, a bulldog of a man who promised to bring big, bold statements to store aisles. "We either do plaid," he said before booming in a Brooklyn accented voice, "Or we DO PLAID!"
That was more than 10 years ago, and it's a safe bet there hasn't been a shopper since who has yelled with excitement in a Bay store (Mr. Pickell lasted a year). At the time, parent Hudson's Bay Co. was led by William Fields, an aloof former top Wal-Mart executive. He gave way to George Heller, a former top executive at Bata and Bay sister chain, Zellers. Mr. Heller parted when the late U. S. billionaire Jerry Zucker bought HBC in 2006. Now there is a new U. S. owner, NRDC Equity Partners, led by real estate scion Richard Baker and CEO Jeffrey Sherman, past president of Blooming-dale's and Polo Retail Group.
Canada's oldest company has not lacked for big-name buyers, executives or fix-it plans. But despite much tinkering, there is little to show. In all that time HBC has failed to shake the moribundity out of the Bay or dreadfulness from Zellers. What it has lacked is the will at the top ranks to do the right thing: blow up the company.
Pardon my heresy. But if you're into the heritage, read the Peter C. Newman books or visit the archives in Winnipeg.
Somehow, a decade after The Great Turnaround Era started at HBC, the Bay is still a crummy department store. Everything it sells, somebody else does a better job of selling. Electronics, furniture -- why bother? It's an OK place to buy cosmetics, kitchenwares, clothing chocolates, but has no identify or raison d'etre. Customers love the stuff at Lululemon, the bargains at Dollarama, and, apparently, the coffee at Tim Hortons. What does anybody love about the Bay? Zellers, meanwhile, is a great place to get away from the crowds at Wal-Mart, which sells more of the same stuff, in better locations, backed by superior systems and capital spending.
HBC's would-be saviours have treated it as a retail turnaround story. Instead, they should have treated HBC as a real estate play. The answer has seemed obvious for years: split the 98-store Bay chain into two or three different entities based on store type, and package them off to different buyers. Same goes for Zellers, which has 280 stores -- way too many, considering many are small, poorly located or both.
Mr. Baker still sees value in HBC's "tarnished" brands, but at least he has a few good ideas. NRDC owns the Lord & Taylor chain, which despite having little name recognition in Canada, is different and upscale, and should perform well if he sticks to putting 10 to 15 of them in existing HBC space. It sounds like he thinks Zellers should be split into two chains, differentiated by size, which is a start.
"It's clearly two different format stores running under the same banner," he says.
As for those giant downtown Bay stores, he says, put two or three of our banners in and use the rest of the space for clubs, restaurants and offices. "We are making the box more efficient," he says. He's not shy about saying the assortment, service and "price-value equation" must improve.
But his overall plan is to "reinvent the department store in Canada." Good luck to him. Putting it out of its misery would be a better idea.
_______________________
Bay, Zellers beyond fixing
Would-be saviours should treat HBC as a real estate play
Sean Silcoff, Financial Post Published: Saturday, July 19, 2008
Split the Bay chain into entities based on store type and package them off to different buyers.Chris Wattie, ReutersSplit the Bay chain into entities based on store type and package them off to different buyers.
I once toured the Bay's downtown Toronto store with the chain's then-president, Ira Pickell. He was a brash, accomplished American retailer, a bulldog of a man who promised to bring big, bold statements to store aisles. "We either do plaid," he said before booming in a Brooklyn accented voice, "Or we DO PLAID!"
That was more than 10 years ago, and it's a safe bet there hasn't been a shopper since who has yelled with excitement in a Bay store (Mr. Pickell lasted a year). At the time, parent Hudson's Bay Co. was led by William Fields, an aloof former top Wal-Mart executive. He gave way to George Heller, a former top executive at Bata and Bay sister chain, Zellers. Mr. Heller parted when the late U. S. billionaire Jerry Zucker bought HBC in 2006. Now there is a new U. S. owner, NRDC Equity Partners, led by real estate scion Richard Baker and CEO Jeffrey Sherman, past president of Blooming-dale's and Polo Retail Group.
Canada's oldest company has not lacked for big-name buyers, executives or fix-it plans. But despite much tinkering, there is little to show. In all that time HBC has failed to shake the moribundity out of the Bay or dreadfulness from Zellers. What it has lacked is the will at the top ranks to do the right thing: blow up the company.
Pardon my heresy. But if you're into the heritage, read the Peter C. Newman books or visit the archives in Winnipeg.
Somehow, a decade after The Great Turnaround Era started at HBC, the Bay is still a crummy department store. Everything it sells, somebody else does a better job of selling. Electronics, furniture -- why bother? It's an OK place to buy cosmetics, kitchenwares, clothing chocolates, but has no identify or raison d'etre. Customers love the stuff at Lululemon, the bargains at Dollarama, and, apparently, the coffee at Tim Hortons. What does anybody love about the Bay? Zellers, meanwhile, is a great place to get away from the crowds at Wal-Mart, which sells more of the same stuff, in better locations, backed by superior systems and capital spending.
HBC's would-be saviours have treated it as a retail turnaround story. Instead, they should have treated HBC as a real estate play. The answer has seemed obvious for years: split the 98-store Bay chain into two or three different entities based on store type, and package them off to different buyers. Same goes for Zellers, which has 280 stores -- way too many, considering many are small, poorly located or both.
Mr. Baker still sees value in HBC's "tarnished" brands, but at least he has a few good ideas. NRDC owns the Lord & Taylor chain, which despite having little name recognition in Canada, is different and upscale, and should perform well if he sticks to putting 10 to 15 of them in existing HBC space. It sounds like he thinks Zellers should be split into two chains, differentiated by size, which is a start.
"It's clearly two different format stores running under the same banner," he says.
As for those giant downtown Bay stores, he says, put two or three of our banners in and use the rest of the space for clubs, restaurants and offices. "We are making the box more efficient," he says. He's not shy about saying the assortment, service and "price-value equation" must improve.
But his overall plan is to "reinvent the department store in Canada." Good luck to him. Putting it out of its misery would be a better idea.
catcher_of_cats
Active Member
HBC ponders real estate sales
Retailer's new owner hires Brookfield to cull portfolio
Sean Silcoff, Financial Post, with files from Garry Marr
Published: Wednesday, August 06, 2008
MONTREAL - The new owner of Hudson's Bay Co. has hired a unit of Brookfield Asset Management Inc. to shop some of its flagship downtown Bay stores and former headquarters to potential real estate buyers.
HBC spokeswoman Hillary Marshall confirmed the 338-year-old retail giant, bought by NRDC Equity Partners of Purchase, N.Y., last month, has engaged Brookfield Financial Real Estate Group to do a "big-picture analysis" of HBC's real-estate portfolio with an eye to selling it if values are good. The portfolio consists primarily of six downtown Bay stores and the 32-storey Toronto building that rises from its flagship 900,000-square-foot store and, until recently, served as its head office.
Brookfield Financial recently advised Canadian National Railway on the $355-million sale and leaseback of its down-town Montreal headquarters.
Chris Wattie/Reuters
Ms. Marshall said Brookfield, which is a lender on some of the Bay's flagship stores, will start with "a limited focus" on the three massive flagships in Toronto, Vancouver and Montreal, as well as the office tower. The process is still in the preliminary stages of a 12- to 24-month period, but she said the intention would be for the Bay to remain a tenant in a "sale-leaseback" arrangement with the buyer.
"It's not about closing stores," Ms. Marshall emphasized. The owners "are real estate guys, so they're looking at the value of the real-estate holdings and seeing where it's appropriate to sell to get the best value of the real estate while continuing to run retail stores."
NRDC, led by Richard Baker, the third generation of a Greenwich, Conn., real-estate dynasty, bought the Lord & Taylor chain in the United States for US$1.2-billion two years ago primarily as a real estate investment.
But NRDC has since taken a fancy to the trade, investing US$500-million in renovations and bringing in a spate of trendy brands to spruce up the august but tired 47-store chain.
NRDC also bought U.S. jewellery and home-furnishings retailer Fortunoff out of bankruptcy this year and made unsuccessful bids for Toys 'R' Us and Burlington Coat Factory.
The new owner has moved quickly to fill the top ranks of HBC with veterans, hiring Jeffrey Sherman, former president of Polo Ralph Lauren Corp., as CEO, former Canadian Tire retail boss Mark Foote to run Zellers and former Holt Renfrew general-merchandise manager Bonnie Brooks to head The Bay.
While Mr. Baker is committed to rejuvenating HBC's existing banners and putting 10 to 15 Lord & Taylors into existing HBC retail space, few doubt he could trim a big chunk of the $1.1-billion-plus NRDC paid for HBC by selling off its choice locations.
In recent years, investors have been drawn to the retail business for the underlying value of the properties many retailers still own. That includes hedge fund manager Ed Lampert, who bought and merged U. S. retailers Kmart and Sears, indicating he would sell some or all of the 765 company-owned stores if the franchise value failed to exceed that of its real estate. French mass merchant Carrefour has also said it would spin off some of its real-estate assets in a public company when markets improve. HBC has sold and leased back some of its properties over the years, including its downtown Victoria store in 2005.
Although the three flagship stores and Toronto office tower are seen as tired assets that require some investment, one Toronto real-estate brokerage executive estimated the properties could sell for upward of $600-million in total, with the Toronto and Vancouver stores representing most of the value.
Meanwhile, Louis Burgos, senior managing director with real-estate firm Cushman & Wakefield Lepage Inc. in Montreal, said the downtown Montreal Bay would be a good candidate to have some of its upper floors converted to office space, as the market for office space is tight, with overall vacancy more than 200 basis points below the long-term equilibrium rate of 8%.
"The building offers several options. It will require someone that has the vision to work in this market and see the various advantages," he said.
HBC has a total of 580 stores, including its Fields and Home Outfitters banners.
© National Post 2008
Retailer's new owner hires Brookfield to cull portfolio
Sean Silcoff, Financial Post, with files from Garry Marr
Published: Wednesday, August 06, 2008
MONTREAL - The new owner of Hudson's Bay Co. has hired a unit of Brookfield Asset Management Inc. to shop some of its flagship downtown Bay stores and former headquarters to potential real estate buyers.
HBC spokeswoman Hillary Marshall confirmed the 338-year-old retail giant, bought by NRDC Equity Partners of Purchase, N.Y., last month, has engaged Brookfield Financial Real Estate Group to do a "big-picture analysis" of HBC's real-estate portfolio with an eye to selling it if values are good. The portfolio consists primarily of six downtown Bay stores and the 32-storey Toronto building that rises from its flagship 900,000-square-foot store and, until recently, served as its head office.
Brookfield Financial recently advised Canadian National Railway on the $355-million sale and leaseback of its down-town Montreal headquarters.
Chris Wattie/Reuters
Ms. Marshall said Brookfield, which is a lender on some of the Bay's flagship stores, will start with "a limited focus" on the three massive flagships in Toronto, Vancouver and Montreal, as well as the office tower. The process is still in the preliminary stages of a 12- to 24-month period, but she said the intention would be for the Bay to remain a tenant in a "sale-leaseback" arrangement with the buyer.
"It's not about closing stores," Ms. Marshall emphasized. The owners "are real estate guys, so they're looking at the value of the real-estate holdings and seeing where it's appropriate to sell to get the best value of the real estate while continuing to run retail stores."
NRDC, led by Richard Baker, the third generation of a Greenwich, Conn., real-estate dynasty, bought the Lord & Taylor chain in the United States for US$1.2-billion two years ago primarily as a real estate investment.
But NRDC has since taken a fancy to the trade, investing US$500-million in renovations and bringing in a spate of trendy brands to spruce up the august but tired 47-store chain.
NRDC also bought U.S. jewellery and home-furnishings retailer Fortunoff out of bankruptcy this year and made unsuccessful bids for Toys 'R' Us and Burlington Coat Factory.
The new owner has moved quickly to fill the top ranks of HBC with veterans, hiring Jeffrey Sherman, former president of Polo Ralph Lauren Corp., as CEO, former Canadian Tire retail boss Mark Foote to run Zellers and former Holt Renfrew general-merchandise manager Bonnie Brooks to head The Bay.
While Mr. Baker is committed to rejuvenating HBC's existing banners and putting 10 to 15 Lord & Taylors into existing HBC retail space, few doubt he could trim a big chunk of the $1.1-billion-plus NRDC paid for HBC by selling off its choice locations.
In recent years, investors have been drawn to the retail business for the underlying value of the properties many retailers still own. That includes hedge fund manager Ed Lampert, who bought and merged U. S. retailers Kmart and Sears, indicating he would sell some or all of the 765 company-owned stores if the franchise value failed to exceed that of its real estate. French mass merchant Carrefour has also said it would spin off some of its real-estate assets in a public company when markets improve. HBC has sold and leased back some of its properties over the years, including its downtown Victoria store in 2005.
Although the three flagship stores and Toronto office tower are seen as tired assets that require some investment, one Toronto real-estate brokerage executive estimated the properties could sell for upward of $600-million in total, with the Toronto and Vancouver stores representing most of the value.
Meanwhile, Louis Burgos, senior managing director with real-estate firm Cushman & Wakefield Lepage Inc. in Montreal, said the downtown Montreal Bay would be a good candidate to have some of its upper floors converted to office space, as the market for office space is tight, with overall vacancy more than 200 basis points below the long-term equilibrium rate of 8%.
"The building offers several options. It will require someone that has the vision to work in this market and see the various advantages," he said.
HBC has a total of 580 stores, including its Fields and Home Outfitters banners.
© National Post 2008
Conrad Black
Senior Member
Well the guy is first and foremost in the real estate business so this makes sense.
Patriot
Active Member
Can't wait to see Lord & Taylor in Canada!
MetroMan
Senior Member
So here's the scoop from insiders:
The Bay on Bloor
- The Bay on Bloor is going to be converted into a Lord & Taylor
The Bay on Queen
- The Bay on Queen Street is going to be redesigned as The Bay's flagship and feature store with an emphasis on heritage.
- The Bay Queen will be just two floors of retail. Entire departments will be killed off (i.e. bye bye furniture)
- The first floor will focus on Cosmetics, Fragrances, Jewelry, Men's Clothing and accessories and some minor departments that are already on the main floor.
- The second floor will be dedicated to Women's fashion
- Everything above that (3rd floor to 8th) will be converted into a hotel. It's not clear if this involves the HBC tower on Bay/Queen or a new one.
- The lower level is to be converted into a Zellar's with a focus on home accessories. There'll be an expanded food market and pharmacy.
These are the most recent plans. Most of it will reach implementation which will phase in after the Christmas season is over.
I think that HBC's new owners have the right approach. They're focusing on their winning departments (fragrances, cosmetics and fashion) and killing off the rest. Lord & Taylor is more upscale so it'll be a good fit for Yorkville.
The Bay on Bloor
- The Bay on Bloor is going to be converted into a Lord & Taylor
The Bay on Queen
- The Bay on Queen Street is going to be redesigned as The Bay's flagship and feature store with an emphasis on heritage.
- The Bay Queen will be just two floors of retail. Entire departments will be killed off (i.e. bye bye furniture)
- The first floor will focus on Cosmetics, Fragrances, Jewelry, Men's Clothing and accessories and some minor departments that are already on the main floor.
- The second floor will be dedicated to Women's fashion
- Everything above that (3rd floor to 8th) will be converted into a hotel. It's not clear if this involves the HBC tower on Bay/Queen or a new one.
- The lower level is to be converted into a Zellar's with a focus on home accessories. There'll be an expanded food market and pharmacy.
These are the most recent plans. Most of it will reach implementation which will phase in after the Christmas season is over.
I think that HBC's new owners have the right approach. They're focusing on their winning departments (fragrances, cosmetics and fashion) and killing off the rest. Lord & Taylor is more upscale so it'll be a good fit for Yorkville.
Dan416
Senior Member
Sounds like a decent plan
scarberiankhatru
Senior Member
Nothing says upscale like Zellers in the cellar! How many hotels are actually in the downtown pipeline?
adma
Superstar
So? Furthers the Filene's Basement tradition of such stuff...
The hotel plan doesn't make sense. The floor plates are huge. Unless the rooms are really large. Either that or some rooms will have no windows or they'll have to put an atrium in there.
Peepers
Banned
This is a mixture of good and bad news. I like the idea of a Lord & Taylor at Yonge & Bloor however it will be very sad if they reduce the Queen street store to 2 floors. It is the only major department store left in this City (Sears continues to close down floor after floor at the Eaton Centre Store). Don't understand how a greatly diminished store will become Hudson Bay "flagship"
scarberiankhatru
Senior Member
It'll have more of a Harrod's food court meets Dollarama vibe. Pharmacy + cheap homestuffs + basement = eww. Eww + luxury food emporium = huh?
urbandreamer
recession proof
Who cares?