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Fossil Announces Flagship Montreal Location

November 27, 2012

We are pleased to announce that Richardson, Texas based, watch and accessory specialist, Fossil, has confirmed that they will open a flagship Fossil store in downtown Montreal. The store will be located at 1253 Sainte Catherine Street West, strategically placed, adjacent other globally recognized retail brands such as F21, A\X Armani, Apple, and facing Lululemon, Urban Outfitters, and Oakley. The premises will be 2475 sq.ft, and Fossil's largest full priced location in Canada. A Q2 2013 opening is scheduled. The Sainte Catherine Street store will be Fossil's 3rd store in the province of Quebec, and 18th in Canada.

FACT 1: Fossil Inc opened 80+ new stores in 2012, and now operate over 475 company owned locations.

In other important Fossil news, in mid-November, the Fossil Inc released its 3rd Quarter Earnings. Here's a quick snapshot of the results, which continue to beat expectations and impress Wall Street.

Third Quarter Results (2012 vs 2011)

- Net sales increased 6.4% to $684.2 million compared to $642.9 million

- Gross Profit rose 6.1% to $381.5 million or 55.8% of net sales, compared to $359.5 million or 55.9% of net sales

- Net Income attributable to Fossil Inc increased 10.3% to $76.8 million compared to $69.6 million

- Comp Store Sales increased 1.8% - Fossil's 18th consecutive quarter of comp sale store increases

Nine Month Period Results (2012 vs 2011)

- Net sales increased 10% to $1.91 billion compared to $1.74 billion

- Gross Profit rose 9.6% to 1.07 million or 55.9% of net sales, compared to $973.3million or 56% of net sales

- Net Income attributable to Fossil Inc increased 8.8% to $192.3 million compared to $176.8 million


FACT 2: In terms of performance, Fossil's average sales in Canada are an amazing $1000 psf. WOW!

We'll have more new store openings to announce soon. Stay tuned.

For additional news on Fossil, please visit their website www.fossil.com.

Watch Station International Opens at Sherway Gardens

November 13, 2012

We've got some exciting news to share with you regarding Watch Station International.

In early November, Watch Station opened its first full price location in Canada, at Sherway Gardens in Toronto. The premises is 979 sq.ft and is strategically situated just off centre court adjacent such tenants as Mac, Guess by Marciano, BCBG, Roots, Fossil and Gap. The store is beautifully designed (see photos) and carries upscale brands such as Michael Kors, Marc by Marc Jacobs, Burberry, DKNY, Emporio Armani, Michele...etc

About Sherway Gardens - Sherway Gardens is a fantastic shopping centre. The mall is owned by Cadillac Fairview, the country's leading fashion mall landlord (also owners of Toronto Eaton Centre, Chinook Centre, Pacific Centre...etc). The mall has sales of $915 per square foot, ranking it at #7 in terms of performance in Canada. Sherway Gardens has a Gross Leasable Area of approximately 1 million sq.ft, and is anchored by Holt Renfrew, The Bay, Sears, and Sporting Life. Other top retailers at Sherway include: Lululemon, Aritzia, Apple, Harry Rosen, Coach, William Sonoma, Pottery Barn...etc. Further, Cadillac Fairview just announced a $350 million dollar expansion (and full mall renovation), which will be highlighted by the addition of Nordstrom (2 levels, 138,000 sq.ft), who is scheduled to open in 2016. Cadillac Fairview will also expand the mall, adding a total of 210,000 square feet.

Huge Announcement: We're so pleased to confirm that Watch Station will enter the province of Quebec in the spring of 2013. The flagship store will be located in downtown Montreal, on Sainte Catherine Street West (at the corner of Peel Street). The premises will be 2400 sq.ft. The Montreal store will be the company's 1st Canadian high street location (and 4th in Canada).

Watch Station will continue to expand in Canada. Markets of interest include: Alberta, British Columbia, and Ontario.  The company is looking to open in super regional centres, outlets centres, and high pedestrian street-front locations. Size required is 1000 sq.ft (with 23.5 ft width).

Watch Station International operates approximately 12 locations in North America, with several more scheduled to open soon.

For more information on Watch Station, please visit their website at www.watchstation.com.

Hot Fudge Wins ICSC Maple Leaf Award - Best Store Design

November 12, 2012

We're so pleased to announce that in late October, at this year's Canadian ICSC Awards, branded fashion accessories specialist, Hot Fudge won the ICSC Maple Leaf Award for Best Store Design. Click here to see the press release.

We'd like to offer our congratulations to Hot Fudge owner Joey Labrecque and his phenomenally talented store designer, Frederic Bernier.

Hot Fudge operates five stores in the province of Quebec. Further next week, the company will open two more locations; Carrefour Laval and Galeries de la Capitale.

For more information on Hot Fudge, visit www.hotfudge.ca or check out them out on Facebook at www.facebook.com/hotfudgecanada.

Pinkberry Shines Bright in New Cadillac Fairview Dining Terrace

November 05, 2012

We are pleased to announce that Pinkberry is now open in the new Dining Terrace at Richmond Centre in Richmond, British Columbia. The 225 sq.ft kiosk (see photo) looks fantastic and is strategically situated right in the middle of this beautiful new terrace area.  

Pinkberry joins other top food brands such as Edo Japan, Quiznos, KFC, Bourbon Street Grill, New York Fries to open in the Dining Terrace, which was modelled after the new Toronto Eaton Centre Urban Eatery.

Richmond Centre is owned by both Cadillac Fairview (CF) and Ivanhoe Cambridge. The mall is approximately 1 million square feet and is anchored by The Bay, Sears, Spot Chek. Other notable tenants include Apple, F21, Lululemon, Aritzia, and Sephora. Sales at Richmond Centre are an impressive $750 psf.

I'd like to thank Marcia Grant of Cadillac Fairview, for all of her efforts while negotiating this transaction. Marcia saw this deal through from inception to closing (including the design and build-out phases) like a true pro, and for this she deserves great credit.

The new Richmond Centre location is Pinkberry's 3rd store in British Columbia and their fourth in Canada. More units are planned. In this regard, the company has its sights set on the provinces of Alberta and British Columbia for additional expansion. Pinkberry will open in large format open air centres, super regional malls, downtown high streets, and airports. Size required is 500-1250 sq.ft. Kiosk locations will also be considered.

Further to the above, I can confirm that the company's next Canadian opening, will take place on April 1(2013), in the much talked about High Street property, in Abbottsford, BC.

Pinkberry was launched in Los Angeles in 2005. Since then, the company has flourished into one of retail's true iconic brands. They are the world leader in the frozen yogurt category and operate over 250 stores in 15+ countries. They revolutionized the industry with the introduction of frozen yogurt that is both sweet and tangy, yet natural and healthy.

For more information on Pinkberry, please visit their website at www.pinkberrycanada.com, www.pinkberry.com or visit www.facebook.com/PinkberryCanada.

Bizou Celebrates 30th Anniversary!

October 25, 2012

In a fantastic evening event that won’t soon be forgotten, Quebec City based, fashion accessories specialist, Bizou, celebrated their 30th anniversary party. At a beautiful venue overlooking the St. Lawrence River, over 300 employees, industry colleagues, friends and family were in attendance to celebrate Bizou’s long-term achievements with an enjoyable dinner and dancing reception.

Bizou’s business (and the industry) has come a very long way since the opening of their first store 30 years ago in Les Galeries Chagnon, in Levis, Quebec. Everything from product, marketing, inventory management, store design, merchandising, warehousing and distribution has been carefully monitored and continually improved. Today, Bizou has blossomed into a dynamic retail powerhouse with over 500 employees and a network of over 120 stores, spanning 6 provinces.

In an industry where retailers can rise to fame, only to then fall to irrelevance almost overnight, maintaining your standing as a successful retail chain over the long-term is truly a remarkable accomplishment.

On a personal note, Bizou has been our business partner for 15 years. We greatly value this relationship and are so pleased to offer them our heartfelt congratulations on this wonderful achievement.

Looking ahead to 2013, Bizou is focussed on continuing their expansion into the province of Ontario, with plans to open 4-8 new locations. Size required is 600-1000 sq. ft. in regional and super-regional malls as well as high pedestrian street-front locations.

For more about Bizou, please visit the company’s website at www.bizou.com. For additional information and leasing opportunities, please contact Michael Stroll at (514) 731-7936.

Canada Prepares For Historic Retail Boom

October 09, 2012

I've been in the shopping centre business for 23 years (clearly, longer than I wish to remember) and have worked on both sides of the table; first as a landlord with Morguard & Olympia & York, and over the last decade and a half, as a real estate broker. Historically speaking, the Canadian retail real estate market has been remarkably consistent, highlighted by strong retail demand, extremely low vacancy, and phenomenally high retail sales. I have written previously, about the prevalence of such conditions as well as the growing attraction of Canada to US and international retailers who have, in the last 3-5 years not only entered the market, but have doubled and tripled their originally forecasted store openings. Here’s something to consider; according to the International Council of Shopping Centres, enclosed shopping centres perform 43% higher sales in Canada than they do in the US. WOW. With such great success, it is no wonder that Canada has become a growth vehicle for such globally recognized retail chains such as F21, Anthropologie, Michael Kors, H&M, Sephora, J Crew, Target (who will open 170 locations in Canada in the next 2 years), Marshalls...etc. So far so good, but that said, even a robust market is not exempt from obstacles and problems.

In Canada, the primary challenges are simple. With little or no vacancy in the top Canadian centres and high streets, landlords have been successful in charging rental rates that are a premium and sometimes cost prohibitive. Further, with retailers performing so well, Landlords are forced to wait for natural expiry dates before they can consider replacing their non-performing tenants (and in Canada, most of these tenants that landlords wish to replace are domestic ones). Given the above, Canadian landlords have been able to amass a long wait list of tenants wishing to open in these centres. It’s also important to note that many retailers who are losing money are also reluctant to give up their spaces. To these retailers, the value of their real estate is greater than the loss they are incurring from operating the store (I don't necessarily ascribe to this philosophy).

Our ability to execute successfully on behalf of our clients is predicated on the following: a) our volume of transactions is ten times that of the average expanding retailer; b) our relationships with the top landlords is extensive and nationally driven (in contrast to the typical retailer whose expansion plans are more frequently regionally based); c) our clients are best in class retailers, who perform at the top of their category, and draw huge numbers of shoppers to the shopping centre. These retailers are game changers to the sales performance of their respective categories, and landlords often say are worth their weight in gold; d) our company has formed longstanding relationships with retailers throughout Canada and it is commonplace that we secure top quality dispositions from many of these domestic (and international) retailers who are looking to consolidate their retail networks. Essentially we figured out how to overcome these hurdles that most will encounter.

Notwithstanding the above, the Canadian market is about to encounter a major shift which is welcome and will have a long lasting impact. For the first time in thirty years, there will be a massive wave of new retail development. Spearheading the boom is Canada's top fashion mall landlord, Cadillac Fairview (CF). Owned by the Ontario Teachers Pension Fund, CF is about to announce plans to completely re-develop centres such as Pacific Centre, Chinook Centre, Rideau Centre, and Sherway Gardens. The catalyst for these projects can be attributed to the Canadian arrival of Nordstrom, who will open in all of these great malls. All of the above-listed centres are market dominant and perform between $910 psf to $1525 psf. Each centre will be adding new critically needed CRU space and commensurately will offer an abundance of new opportunity. CF will also be re-developing centres such as Richmond Centre ($700 psf), Market Mall ($825 psf), Promenades Saint Bruno ($525 psf), Fairview Pointe Claire ($570 psf)...etc. At the end of the day, CF will likely invest a billion dollars to ensure these centres remain #1 in their respective markets. I have no doubt that they will succeed. In addition, Ivanhoe Cambridge, who are owned by the Caisse de Depot, and one of the world's largest property owners, also have a series of exciting new mall openings and re-developments planned.

The other principle factor driving the Canadian retail boom will be the introduction of outlet centres to Canada. While centres such as Vaughan and Cross Iron Mills are highly successful, they are not true outlet centres (such as those that are currently operating in the United States). These centres are hybrids that offer value and discount. The US model which will soon be introduced in markets such as Toronto, Montreal, Ottawa, Vancouver...etc, are true branded outlets. I've written about this previously and won't spend much time here; it is however, noteworthy to highlight that Canadian consumers have a pent-up demand for outlet retail. In fact, just last year, Canadians spent over $5.5 billion dollars at US outlet centres. Major developers such as Simon Properties and Tanger Properties recognize the un-tapped potential and are leading the charge for such new projects.

Pursuant to the above, here's but a short list of high profile new centres that will be built and re-developed in the next 12-36 months in Canada.

Super Regional Centre Re-Developments:

Pacific Centre
Chinook Centre
Rideau Centre
Sherway Gardens
Vaughan Mills
Guilford Centre
Bayshore Shopping Centre
Polo Park
Brentwood Town Centre

New Outlet Centres:

Toronto Premium
Montreal Premium
Tanger Ottawa Outlets
Tsawwassen Mills
Niagara Outlet Collection
Vancouver Upscale Outlets

In Calgary alone, there is scheduled to be an additional 12.5 million sq.ft of retail that will be added in the next 3 years. Further I was in Edmonton two weeks ago and marveled at all of the impressive new projects in this market. Another 3.2 million square feet will be added in the next year alone.

So what does all this mean for you.

Well, if you're retailer from the US or Europe, this is a once in a lifetime opportunity to enter the Canadian market with a series of openings; further you now have the ability to cluster these locations to ensure better economies in operations, which will lead to great savings. No longer will your strategy be piecemeal and fractionalized. Second, with all of the new development, Landlords are aggressively looking to fill these new spaces. There's now tremendous pressure on the leasing executives to do deals NOW. In this regard, top performing retailers can now negotiate much larger tenant inducements. Given such conditions, from a financial perspective alone, it is the opportune time for your company to green light a Canadian market entry.

Our company specializes in developing and implementing Canadian market entry strategies for globally recognized retail brands. Our list of exclusive clients include: Fossil, American Apparel, Pinkberry, Watch Station, Le Creuset, Bare Escentuals, Johnny Rockets...etc. On behalf of these (and many other) clients, we secure flagship retail locations throughout Canada. Need more info? We're happy to discuss how we can ensure that your Canadian entry is both seamless and (more importantly) highly profitable.