Sears Holdings announced on Wednesday that it may sell Sears Canada. The company still has several exceptional Canadian store locations, despite divesting most of its better leases. Finding one buyer for all of its stores will ultimately be difficult, as Sears Canada has a substantial number of arguably undesirable store locations. The company could end up selling off a few of its better stores, as it has done before, and we’ll profile several of these locations. Ultimately, Nordstrom, Saks Fifth Avenue and La Maison Simons could move into some of Sears Canada’s remaining real estate.
Below, we’ll profile several of Sears Canada’s better locations and who could occupy them, moving west to east across the nation:
Vancouver/Lower Mainland: The proposed $1 billion redevelopment of Sears’ Metropolis at Metrotown real estate is uncertain, and Sears Canada owns this location (and surrounding parking) outright. If redevelopment doesn’t come to fruition, the existing 217,300 square foot Sears space could be redeveloped to include several retailers, including possibly Vancouver’s second La Maison Simons store. Vancouver’s first Simons store opens next year at West Vancouver’s Park Royal.
Sears also has a productive 122,000 square foot store at Richmond Centre. Sears sold Its Richmond lease in October of last year, however, and the store will close in February of 2015.
Edmonton: Sears has two fairly high-profile Edmonton locations, the largest being at Southgate Centre. Spanning 234,000 square feet, this former Eaton’s location could be reconfigured to include new retail, as well as possibly a new anchor store. Top contenders include Nordstrom and Saks Fifth Avenue, though not if West Edmonton Mall gets its way. West Edmonton Mall’s 149,000 square foot Sears location is in the mall’s original ‘Phase I’, which could be redeveloped to increase shopping traffic to that part of the mall.
Calgary: Southcentre’s 234,000 square foot Sears could be redeveloped, and La Maison Simons has been in talks with Oxford Properties. Simons typically seeks about 100,000 square feet for its new stores. If Sears sells this store, redevelopment could include multiple tenants as well as Simons.
Winnipeg: Polo Park‘s 263,000 square foot Sears store could be redeveloped to include multiple tenants, including a new anchor. Saks Fifth Avenue is highly unlikely, though Nordstrom and/or La Maison Simons are possible.
Toronto: Most of Toronto’s best Sears locations have been divested, including locations at the Toronto Eaton Centre, Yorkdale Shopping Centre, Sherway Gardens, and at Mississauga’s Square One. Several decent locations remain, including Sears stores at the Fairview Mall (149,500 sq ft) and a 173,600 square foot unit at the Promenade in Thornhill.
Sears’ former 816,000 square foot Toronto Eaton Centre store will be replaced with a 213,000 square foot Nordstrom store, 460,000 square feet of office space, and 140,000 square feet for other retailers, yet to be determined. Yorkdale’s 190,000 square foot Sears will be redeveloped, and Sherway Gardens’ 225,700 square foot Sears will be partly occupied by a new 132,000 square foot Saks Fifth Avenue store. Sears’ 145,000 square foot Square One location will become a 113,000 square foot La Maison Simons, opening in 2016.
Montreal: The 150,850 square foot Carrefour Laval Sears could be redeveloped, and sources inform us that Saks Fifth Avenue is considering the mall. Other desireable Montreal Sears locations include a 182,000 square foot unit at Fairview Pointe Claire, as well as a 146,600 square foot Galeries d’Anjou store.
Who could you see filling the remaining stores, if anyone? Especially in the smaller cities.
Excellent question. We think that these locations will eventually become home to multiple tenants, from Canadian Tire to Marshall’s to Primark (for anyone reading these comments, Primark is, indeed, looking to Canada).
I think that the economic strength of the St John’s market these days would make the Avalon Mall Sears an attractive property for someone. I’ve heard that it’s one of Sears’ top performers in Canada.
I think that the economic strength of the St John’s market these days would make the Avalon Mall Sears an attractive property for someone. I’ve heard that it’s one of Sears’ top performers in Canada.
You’re correct – Avalon’s Sears is a top performer. We excluded it mainly because Avalon isn’t an ‘A’ mall, and it’s unlikely Sears will be be replaced by Saks/Nordstrom/Simons. Watch for Primark to enter Canada in the next two years, however, though we’re not sure what space they’ll end up with.
I’m particularly interested in seeing what happens with the Sears at the St. Laurent Centre. It’s the most significant Sears outside of the Rideau Centre. A major renovation will be starting soon at the mall and it’ll be along the new LRT line so I imagine there will be a demand for the Sears space. As for potential tenants, I don’t think Simons will want a third store in the Ottawa area. Holt Renfrew could use a new space. Personally, I’d love to see them turn it into a new wing with a bunch of different stores. I wonder if the St. Laurent Centre chose to go with a renovation instead of the major expansion they already received City approval for because of questions surrounding the future of the Sears space. Maybe.
St. Laurent Centre is going reno instead of expansion because it is a poor performer full of odd c-level mall stores (It is way more similar to Place d’Orleans/Carlingwood than Rideau/Bayshore). There are never people with shopping bags in their hands, just c-level people wasting time, and the only thing ever busy is the food court (which it only has c-level offerings as well). Holt Renfrew (and anyone really) would be better off having no location in Ottawa than having a location at St. Laurent.
Holt Renfrew is North America’s most productive department store chain so you’re correct, they’re unlikely to consider anything less than an A+ location. Its current Ottawa store is very unfortunate, both size and location wise.
Markville was already divested. Closing in Feb.
We just made the correction, sorry about that!
@KevinBourne
St. Laurent Centre is going reno instead of expansion because it is a poor performer full of odd c-level mall stores (It is way more similar to Place d’Orleans/Carlingwood than Rideau/Bayshore). There are never people with shopping bags in their hands, just c-level people wasting time, and the only thing ever busy is the food court (which it only has c-level offerings as well). Holt Renfrew (and anyone really) would be better off having no location in Ottawa than having a location at St. Laurent.
My understanding is Sears St Laurent’s lease was up in March 2014 and has not been renewed…they must be month to month. They also recently had a post for a new store manager for this location. There is lots of rumours it will close soon.
Very interesting! We weren’t aware of that. It will be interesting to see what moves in.
Assuming Sears sells all those A-list stores above, how many are left, about 90, in the lower-tier malls? I think what we are seeing in Canada is a realignment in terms of retail – the lower-tier malls might want to consider a new future or perhaps end up as "dead malls" like in many US cities. That will be especially problematic in cities too small for higher-end retail, and if no mall anchors can be found, other stores may be forced by default to big-box plazas or downtown shopping areas.
Malls will have to change, generally, to address an increase in online retail. Only the best will survive, while others will shutter and/or be redeveloped. We agree with you 100%.
It might have an interesting side effect in smaller cities: a rejuvenation of downtown areas as mall retail may find it better to go there if they are currently in malls with no anchor…
Outside of the major metropolitan areas you’ve mentioned there are other good locations which may be attractive to prospective buyers. Lime Ridge in Hamilton (opened with the mall in 1981) is a good performer in an excellent super-regional center, as is the Mapleview location in Burlington (former Simpsons).
Absolutely – we should have been more clear when writing this article. We were generally examining Sears spaces that could become occupied by upscale retailers such as Nordstrom or Saks. Although there are some productive Sears stores in some secondary malls, none of these malls will secure such upscale anchors.
when it comes to smaller cities, the mall’s that will be around are ones that understand retail market and will adjust to it, the ones that don’t will be like the mall in moose jaw ware the owners ego is killing it with its expensive rent and unattractive interior design that look like its still the 70s
Primark is one of the nine circles of hell. Cheap merchandise, indifferent staff, messy stores. Makes Joe Fresh look like Holt Renfrew. As much as I would like to see Sears reinvigorated or replaced with something interesting, I’m looking forward to Primark coming to Canada about as much as I look forward to a canker sore in my mouth.
It’s unfortunately what people love: Bottom of the barrel merchandise from sweatshops in Bangladesh. You could could actually show people pictures of the exact people who died trying to make their specific clothes and they’d be like "whatever! this dress is only 12 bucks!"
Depending how Nordstrom rolls out in Canada, a case could probably be made for them in the Sears space at Mapleview – if you look at the tenant mix there and consider that it was originally a Simpsons–a format that was fairly upscale itself – a case could be made for Simons in that space as well (Simons may work at Lime Ridge as well if they choose to venture further afield in the GTA…or GTHA). In the catchment area there is certainly a critical mass of affluent shoppers.