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Sears Canada (1952-2017)

  • Thread starter CanadianNational
  • Start date
Not the best career move, unfortunately. We've got a source telling us that there will be mass layoffs and further store closures announced in January. As well, a large Canadian retailer (not HBC) could end up buying Sears Canada in its entirety, converting it to their nameplate and utilizing its retail spaces for their own concept.
 
I doubt it is Canadian Tire too, as I would likely know about it by now if that were the case.
 
Target? The reason I say Target is because I heard from a friend that the Markville Sears would be converted to a Target. Never asked how they got that info.
 
rdaner said:
Simons. Please.
Click to expand...

I'm already concerned that Simon's is extending itself too quickly with first the West Edmonton Mall store, then adding Square One, Rideau Centre, Gatineau and now Calgary and West Vancouver. It's doubling in size in a very short period of time. It only had seven stores in Quebec in 2012.

Les Ailes de la Mode, a similar, higher-end store expanded and then retreated quickly as it overextended. It almost completely went bust.
 
Simon's will be fine.

Target taking over all of these Sears stores seems unlikely. I can't see Eaton Centre with a Target. It would not make sense. Maybe on one floor, but not the entire thing obviously.
 
ShonTron said:
I'm already concerned that Simon's is extending itself too quickly with first the West Edmonton Mall store, then adding Square One, Rideau Centre, Gatineau and now Calgary and West Vancouver. It's doubling in size in a very short period of time. It only had seven stores in Quebec in 2012.

Les Ailes de la Mode, a similar, higher-end store expanded and then retreated quickly as it overextended. It almost completely went bust.
Click to expand...

That's a fair concern, although Les Ailes and Simons are two very different retailers, and Simons has had a lot more success outside Quebec thus far than Les Ailes did. But you're right, Simons could be the best retailer in the world and still drown in debt.

Simons isn't really high-end. They do sell some higher-end, designer clothes, but the vast majority of the floor space is inexpensive, private label clothing. The prices at Simons are generally much cheaper than they were at Les Ailes at its peak, although both chains were similarly focused on excellent store design and environment. Sadly, today Les Ailes, under new ownership, has all the charm (and product quality) of a Giant Tiger.
 
khristopher said:
Target taking over all of these Sears stores seems unlikely. I can't see Eaton Centre with a Target. It would not make sense. Maybe on one floor, but not the entire thing obviously.
Click to expand...

Sears has sold off the lease to the Eaton Centre store (as well as all the other former Eaton's flagships, other than Ste. Catherine which they never had), so the Eaton Centre wouldn't be part of the equation. What's left are the stores in suburban malls like Markville, and I could see a retailer like Target kicking the tires. However, I doubt Target itself would want to take this on, and the rumours (as I understand) speak of a Canadian retailer.
 
Skeezix said:
That's a fair concern, although Les Ailes and Simons are two very different retailers, and Simons has had a lot more success outside Quebec thus far than Les Ailes did. But you're right, Simons could be the best retailer in the world and still drown in debt.

Simons isn't really high-end. They do sell some higher-end, designer clothes, but the vast majority of the floor space is inexpensive, private label clothing. The prices at Simons are generally much cheaper than they were at Les Ailes at its peak, although both chains were similarly focused on excellent store design and environment. Sadly, today Les Ailes, under new ownership, has all the charm (and product quality) of a Giant Tiger.
Click to expand...

I agree. Simsons is somewhat like a cheaper department store version Aritzia. The vast majority of its sales come from private label goods (Which are price comparable to H+M or Gap) which they mix in with with higher end goods in certain areas.

That being said -as I analyzed earlier - Simons does (at max) $1B a year in Gross Sales. For them to take over Sears' second tier locations (let's be honest - what's left of Sears are second tier mills) doesn't entirely make sense given their strategy of negotiating to be in Tier A malls in Quebec, Edmonton and Vancouver. It would also be a mammoth undertaking that would involve a private equity backer. They couldn't take on the associated debt at current levels without a financial backer. The Simons family has been notorious about keeping the business private and avoiding outside financing so I'd be surprised if they'd do this. It's not strategic nor is it financially viable.
 
pw20 said:
I agree. Simsons is somewhat like a cheaper department store version Aritzia. The vast majority of its sales come from private label goods (Which are price comparable to H+M or Gap) which they mix in with with higher end goods in certain areas.

That being said -as I analyzed earlier - Simons does (at max) $1B a year in Gross Sales. For them to take over Sears' second tier locations (let's be honest - what's left of Sears are second tier mills) doesn't entirely make sense given their strategy of negotiating to be in Tier A malls in Quebec, Edmonton and Vancouver. It would also be a mammoth undertaking that would involve a private equity backer. They couldn't take on the associated debt at current levels without a financial backer. The Simons family has been notorious about keeping the business private and avoiding outside financing so I'd be surprised if they'd do this. It's not strategic nor is it financially viable.
Click to expand...

When I meant that Les Ailes was similar to Simon's, I meant that they were both smaller Quebec-based, fashion-conscious stores (without most of the trappings of a regular department store); Ailes did try to go high-end while I know Simons (I've been to the Ste-Catharine store and the one in Ste-Foy) and know that they have an interesting mix and great bargains.

Sears still has some very good malls, even if the most prestigious are gone (Yorkdale, Eaton Centre, Sherway, Square One and the like). Fairview, Bramalea City Centre, Upper Canada Mall, Erin Mills Town Centre, Oakville Place, Mapleview, Limeridge, Masonville, for example are good, strong malls that other retailers would really like to get their hands on.
 
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