Upscale British-based fashion house Karen Millen will open its first Canadian store at Montreal's Centre Rockland.
Combined store rendering: City of Montreal
By Mounia Ayoub
stores will merge,
, slated for completion in late 2017. The Holt Renfrew store on Sherbrooke Street will close and the Ogilvy store located on the trendy Sainte-Catherine Street West will be revamped and expanded northward on the site of the former
. It is the only Ogilvy/Holt Renfrew-merged store planned so far in Canada.
Ogilvy and Holt Renfrew are heritage brands founded in Quebec: Ogilvy in 1866 in Montreal, and Holt Renfrew in 1837 in Quebec City. Both now belong to
., owned by the
of Toronto which also controls
in the United Kingdom,
in Ireland and
in the Netherlands (and grocer
. in Canada). The new department store will take the (long) name in French of
Ogilvy, membre de la collection Holt Renfrew & Co
The purpose of this merger is to boost sales in Montreal by combining and developing the strengths of both stores. As the Vice-President of Holt Renfrew, Joanne Nemeroff, pointed out
, the decision to merge both stores was made after a market study (confidential sources) showed that the Holt Renfrew customers wanted a larger range of products with a new assortment of brands while the Ogilvy customers were asking for a new dynamism. Moreover, according to Mark Derbyshire, President of Holt Renfrew, the strategy of targeting the customers of both stores the same way remains consistent since these customers have a lot in common. “We think we can offer them something bigger in one place instead of two,” as M. Derbyshire stated in his interview with
La Presse Affaires.
Current Holt Renfrew store on Sherbrooke St. W. [
Holt Renfrew opened its store in Montreal on Sherbrooke Street in 1937; historically it has been the go-to place for fashion addicts in search of unique contemporary designer clothing and modern luxury accessories. On the other hand, Ogilvy has the reputation of offering a range of much more classic brands. We will see in the future if the regular Holt Renfrew customers will accept to change their shopping habits and leave the luxury Sherbrooke Street district to make their purchases on the less fashionable Sainte-Catherine Street.
What is more, this merger of the two stores in Montreal should allow the group to arm itself for the coming luxury battle with the arrival of its next big competitor, the New York-based luxury department store
. Saks was acquired by the Hudson’s Bay Co. (HBC) last November and
in Toronto, Montreal, Vancouver and possibly Calgary in the next few years. Two Saks Fifth Avenue stores should open in Montreal, one free-standing downtown store and one suburban store,
Saks will be the main competitor of Holt Renfrew in Canada as it has the same luxury positioning, carrying the same prestigious brands, from
, including the same trendy designer labels such as
etc. Differentiation will therefore be difficult for both companies in Canada. We have reason to believe this Ogilvy/Holt Renfrew merger in Montreal is likely to facilitate the differentiation process as this new luxury megastore will add the classic, respected and well-established image of Ogilvy to the avant-garde spirit of Holt Renfrew.
Fortunately for the Selfridges Group, Seattle-based Nordstrom does not plan to open any high-end department store in Montreal so far.
(the first Nordstrom store in Canada should be opened in Calgary in 2014).
Besides the Saks issue, the other question raised with this Ogilvy/Holt Renfrew merger in Montreal is whether or not the market can support such a luxury megastore given Quebec's market. With 220,000 square feet, the new Ogilvy/Holt Renfrew department store will be the largest luxury department store in Canada. Yet, according to
, only 4.1% of the population in Montreal had an income of $200,000 or more, compared to more than the double in Toronto, with 8.4%, and 5.6% in Vancouver in 2013. Moreover, 16.8% of the households earning more than $200,000 a year in Canada were living in Montreal against 44.8% in Toronto and 13.3% in Vancouver in 2013. Therefore one can wonder whether or not there is enough demand for luxury products in the area to warrant such a huge department store in Montreal.
The point is many Montrealers are used to shopping outside the city, whether it be in Toronto, the rest of Canada, or the United States. According to Alecsandra Hancas, Fashion Industry Analyst at the
, cross-border shopping is a serious issue in Canada overall since it represented an estimated $1-billion loss for Canadian retailers in the year to May 2013
. Thus Ogilvy and Holt Renfrew’s executives expect that upscaling the luxury offering in Montreal will dissuade these customers from doing cross-border shopping and encourage them to make their purchases in this new Ogilvy/Holt Renfrew megastore instead.
In conclusion, this new Ogilvy/Holt Renfrew megastore will definitely change the luxury landscape in Montreal, and will probably contribute to the retention of the local customers who used to shop outside Montreal. The arrival of Saks in the next years will also upscale the retail market in the biggest city of the province of Quebec. In the meantime, this increasingly fierce competition in the luxury market will affect not only the department stores and their customers but also the suppliers, which will have to figure out how to distribute their collections without compromising past allegiances with Holt Renfrew or Ogilvy and without cannibalizing their current sales.
Mounia Ayoub is a luxury retail, fashion lover and a contributing editor for Retail Insider. Born in Paris and raised in Marseille, in the South of France, she is strongly attached to her Mediterranean roots. With a business background, she has worked for Marc Jacobs in Paris and contributed to consulting services at the French Trade Commission in Toronto for French luxury and cosmetic companies expanding their activities in North America. After living in Japan, New York City, Toronto and Paris, she has found in the multicultural city of Toronto the perfect pied-à-terre for now.
Sources tell us that
could open at Montreal's
Shopping Centre. If talks are successful, it would occupy part of the 181,795 square foot
store that currently anchors the mall's eastern portion.
The 1 million square foot Fairview Pointe-Claire Shopping Centre is owned and operated by landlord
. It features almost 175 stores and is one of Montreal's most productive malls with yearly sales per square foot of $617.
Simons is expanding across Canada and plans to open new stores in
, Ontario. It may also open a
. We'll keep you updated on Simons' Canadian expansion including this possible new suburban Montreal store.
|Photo: Catherine Malandrino|
|1472 Sherbrooke St W prior to Malandrino [Image Source]|
|Rendering: City of Montreal|
BREAKING: We'll follow up on this announcement with an analysis article in a few hours.
Nov. 19, 2013
/CNW Telbec/ -
, Renfrew & Co., Limited today unveiled grand plans to expand and transform the St. Catherine's Street Ogilvy location into a unique and exciting luxury retail destination branded
: Ogilvy, part of the Holt Renfrew & Co. collection
. Spanning 220,000 square feet, the new specialty store will expand to include an adjacent site and become the largest in the Holt Renfrew network, offering innovative new retail concepts and
richest assortment of luxury fashion and beauty brands. Following a
investment, the new store is slated for completion in late 2017.
"This is another exciting step forward in Holt Renfrew's dynamic growth plan," said Holt Renfrew President
market presents a unique opportunity to leverage two storied brands. Inspired by the best of both Holt Renfrew and Ogilvy, and based on extensive customer research, we have developed a grand vision with bold new concepts that celebrate
rich fashion heritage and sophisticated shoppers."
"I am also pleased to note at this time the appointment of
as Senior Vice President, Ogilvy, part of the Holt Renfrew & Co. Collection, based in
, to lead our team and this exciting development," Derbyshire said. "Joanne is a seasoned retail executive with a great wealth of expertise and relationships in the
"We're thrilled to offer this exciting fashion retail concept for
, one that is sure to cement this city's standing as an international luxury shopping destination," said
. "With an expanded offering at a high-traffic location, the energized new store that will emerge in 2017 will provide customers with an unparalleled shopping experience. It's about getting the best of both worlds and more, all under one roof and one banner."
Grand, one-store vision to become a reality in 2017:
Ogilvy, part of the Holt Renfrew & Co. collection
The construction phase for the future store is scheduled to begin in the fall of 2014 and be completed later in 2017. The store will remain open throughout this period to serve customers, as will the current
Familiar elements of the distinctive and stylish Ogilvy building will be celebrated in the new store design, including its magnificent façade, complemented with an expansion on the site of the former Hotel de la Montagne. The store will also continue to offer a mix of lease partners.
The Holt Renfrew store on Sherbrooke Street will also remain open to welcome customers throughout this period, with exciting upgrades to enhance the shopping experience, including the recent launch of a new Dior shop, which offers the richest assortment of its kind in
, and plans for a new Prada shop. Plans for the Sherbrooke Street property post 2017 will be confirmed at a future date, and are expected to include retail offerings to benefit the local community.
"We are very excited about the development of this unique concept for the
market. For now it remains business as usual for the current Ogilvy and Holt Renfrew stores. They will continue to provide the very best in beauty and luxury fashion as well as the quality service our customers have come to expect and enjoy," concluded Nemeroff.
About Holt Renfrew
Celebrating a 175-year heritage, Holt Renfrew is recognized worldwide for an inspired shopping experience. Once a purveyor of fashion to Her Majesty Queen Victoria, Holt Renfrew began in 1837 as a modest hat shop in
. Over the years the brand developed and expanded across
. In the 1930's Holt Renfrew began exclusive accounts with some of the best designers in
and in 1947 hosted Monsieur Christian Dior when he launched his "New Look." After many years of foreign ownership Holt Renfrew was bought in 1986 by W. Galen and the Hon.
Hilary M. Weston
. Under their ownership Holt Renfrew has become
destination for luxury retail. Holt
has 2,300 employees with nine stores across the country in
, Sherway Gardens and Yorkdale). In early 2013, Holt Renfrew launched hr2,
first premium off-price concept, offering leading brands and on-trend styles at irresistible prices. Visit us at
Ogilvy, part of the Holt Renfrew & Co. collection
, are part of Selfridges Group Limited. With extensive know-how and experience in operating luxury fashion retail stores, the Selfridges Group owns and operates leading heritage banners in key markets around the world, including Brown Thomas in
; de Bijenkorf in
; Holt Renfrew and
Ogilvy, part of the Holt Renfrew & Co. collection
, and Selfridges in the
. Selfridges Group Limited is a family owned business,
W. Galen Weston
SOURCE Holt Renfrew
German luxury retailer Porsche Design will open stores across Canada according to sources, and its list of desired cities includes Calgary, Ottawa, Montreal, Vancouver and possibly Edmonton. It is also expected to open at least one more Toronto-area store. The company is testing the market, having already opened a pop-up shop at Toronto's Sherway Gardens as well as a temporary store location in Vancouver. We'll briefly describe Porsche Design's potential plans in several cities:
A source at Porsche Design tells us that the company is looking to open in Calgary's Chinook Centre, ideally close to the mall's new Nordstrom store which is scheduled to open in the fall of 2014. The source wasn't sure if Porsche Design has already signed a lease in the mall.
Porsche Design's Sherway Gardens pop-up store, which opened a few days ago, will remain open for only about two months. A company representative says that Porsche Design is hoping to secure a permanent retail presence in the mall by the end of 2014.
Another possible Toronto store location could be at the Yorkdale Shopping Centre. A source tells us that Porsche Design might look to take over the 1,365 square foot retail space currently occupied by ICON Shoes, as ICON's lease expires in 2014. The space is located across from the mall's expanding Holt Renfrew store and is within close proximity to upscale stores such as Mulberry, Tiffany & Co., Cartier, Salvator Ferragamo, David Yurman and others.
An Edmonton store is a possibility for Porsche Design, and we were informed that West Edmonton Mall would be the most likely location. Our source wasn't able to provide any further information as to when this could happen or its location within the mall.
Ottawa and Montreal:
Ottawa and Montreal have both been mentioned as possible locations for Porsche Design stores, though we have few details besides Ottawa's Rideau Centre being the likely candidate for an Ottawa store location.
More on Porsche Design in Canada:
Porsche Design already has two Canadian store locations: one on Toronto's Bloor Street and another which opened last week in Downtown Vancouver. Further plans to expand show Porsche Design's confidence in Canada's luxury retail market.
It appears that Porsche Design's presence in Canada could become substantially greater, per capita, than that in the United States. Porsche Design only has 11 American store locations and one outlet location. Within a couple of years, Canada could have as many as 8 Porsche Design stores (though we suspect that number will end up being more like 5).
We'll continue to keep you updated on Porsche Design's Canada-wide store expansion.
|Interior of Montreal's Maison Birks [Image Source]|
Colliers International has released its latest report on retail space rents, including those on Canada's most expensive shopping streets. Interestingly, Toronto's Yorkdale Shopping Centre charges rents higher than Canada's most expensive street, Bloor Street West, in Toronto.
According to the study, these numbers are average quoted asking rental rates, and we're using Canadian dollars. Canada's highest retail rents, as measured per square foot, are as follows:
1) Bloor Street West, Toronto: $315/sq ft
2) Robson Street, Vancouver: $200/sq ft
2) (tie) Ste Catherine Street, Montreal: $200/sq ft
4) Alberni Street, Vancouver: $150/sq ft
5) Granville Street, Vancouver: $125/sq ft
6) Spring Garden Road, Halifax: $65/sq ft
6) (tie) 17th Avenue S.W., Calgary: $65/sq ft
8) 4th St. S.W., Calgary: $60/sq ft
9) Greene Avenue, Montreal: $60/sq ft
10) Rue de la Montagne, Montreal: $60/sq ft.
The following are a few comments about several of these streets, followed by comments on Yorkdale:
Bloor Street West, Toronto:
Bloor Street's high rents are concentrated in a few short blocks between Yonge Street and Avenue Road. Retailers include some of Canada's most prestigious stores (Chanel, Gucci, Prada, Mulberry, Dolce & Gabbana, Tiffany & Co.) as well as some lower-priced stores including the likes of Zara, Winners, Roots and, soon, J. Crew and Brooks Brothers. Bloor Street is considered to be Canada's most prestigious high street and its high rents reflect this. Interestingly, Bloor Street's rents are only marginally lower than those of Chicago's Michigan Avenue, assessed at $328/sq ft. Bloor Street has been Canada's most expensive street for years, and rents only went up 1.6% from last year.
Robson Street, Vancouver:
Vancouver's Robson Street has more mid-range retailers, and its relatively high rents reflect the volume of sales on the street. Asking rents of $200 are up substantially from last year, when asking rents were only in the $150 range. New retailers continue to open stores on Robson including, recently, Browns Shoes, Victoria's Secret and J. Crew. Shoe retailer Steve Madden just opened a Robson Street store, and retailers New Balance, HMV, Shoppers Drug Mart Beauty Boutique and a popular car retailer (we'll discuss this in a later article) have recently secured space on Robson Street. The most expensive Robson Street blocks are the 1000 and 1100 blocks, between Burrard and Bute Streets.
Ste Catherine Street, Montreal:
This street has been relatively successful in featuring mostly mid-priced retailers. It also includes several larger stores including La Maison Simons and Les Ailes de la Mode. The most popular retail portion of Ste Catherine Street is anchored by Ogilvy to the West and Hudson's Bay/La Baie to the East. Saks Fifth Avenue will likely share Hudson's Bay's retail space within the next 24 months.
Alberni Street, Vancouver:
Vancouver's Alberni Street saw a substantial increase in rents (43%) over last year. This is mainly due to the asking rents at The Carlyle, a luxury retail redevelopment on Alberni Street's 1000 block. We recently wrote an article discussing the increase in luxury shops on Alberni Street, which will soon see the addition of De Beers, Tory Burch and Tumi. More luxury retailers are on the way, with lease negotiations ongoing.
Spring Garden Road, Halifax:
This street is home to popular department store Mills, which recently "re-opened" after moving to a new store location. The rest of Spring Garden Road includes some popular and some moderately upscale retailers, contributing to Halifax's most popular shopping street. Surprisingly, rents on this street are down 7.1% from last year.
17th Avenue S.W., Calgary:
Calgary's retail is overwhelmingly dominated by shopping malls. Despite this, 17th Avenue S.W. continues to come out on top as the city's most popular retail high street (and at $60/sq ft, ties for most costly). Substantial changes are on the way for the street, including a renovation and expansion of the Mount Royal Village complex (we'll do an article on this in the next while). Rents are up 8.3% over last year.
Retail Insider's Karim Rashwan directed us to comments made by Yorkdale Mall's General Manager Anthony Casalanguida, who stated that rents in his mall are now in the $350-375/square foot range. These are higher than any of the streets described above. Yorkdale is on track to becoming North America's highest-selling mall , with sales expected to be $2 billion by 2018. Yorkdale has also opened several new luxury stores including Mulberry, Ferragamo, and (soon) a renovated and expanded Holt Renfrew store. Another expansion of the mall breaks ground soon, including a 188,000 square foot Nordstrom store. Yet another expansion is expected where Sears is currently located, and this could possibly include a La Maison Simons store.
The following is a link to the entire Colliers International 2013 Retail Report.
|Photo: David Goldmann|
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