Saks Fifth Avenue to replace Sears at Toronto's Sherway Gardens

According to mall management, Saks Fifth Avenue will replace the Sears store at Toronto's Sherway Gardens. Saks will occupy over half of Sherway's 225,000 square foot Sears store location which Sears sold back to landlord Cadillac Fairview in October. Saks is expected to open in the spring of 2016, about one year before the Sherway Nordstrom store which will now open in the spring of 2017

We've been told by a source at Cadillac Fairview that Sherway's Saks Fifth Avenue will be about 132,000 square feet, even larger than Holt Renfrew's recently announced store at Mississauga's Square One. The same source tells us that Saks at Sherway will feature a 25,000 square foot 'food hall', differentiating it from Holt Renfrew as well as from American Saks stores. 

We had initially speculated that Saks would to open shops-in-store within existing suburban Hudson's Bay stores, and this is obviously not the case now for all Canadian Saks stores. In December we noted that the entire 225,000 square foot Sears might be a bit too large for Saks at Sherway, especially as only two American Saks locations are larger than 225,000 square feet, and both are 'urban' flagships, being the Manhattan (646,000 square feet) and Beverly Hills (275,000 square feet) stores. 

Sherway Gardens is one of Canada's most productive malls, enjoying per-square-foot sales of almost $900/year according to its landlord. Hudson's Bay anchors the opposite end of the mall from Sears. Other anchors include Holt Renfrew (which is possibly staying at Sherway and expanding) and, in 2017, a Nordstrom store which will be one of two Toronto locations

Sears will be vacating its Sherway location by February 28th, 2014. Hudson's Bay Company CEO Richard Baker previously discussed opening Saks at Toronto's Yorkdale Shopping Centre, as well. We'll update you when we hear more on this and other possible Canadian Saks Fifth Avenue stores.

Top Image - adapted from a Sherway Gardens rendering provided by Cadillac Fairview

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BREAKING: Saks Fifth Avenue to open downtown Toronto flagship and Sherway Gardens store

Photo: Skeezix, Urban Toronto [

Image Source

]

Below is a press release revealing that Saks Fifth Avenue will build a 150,000 square foot Toronto flagship, as well as a second location at Sherway Gardens. We'll update this article shortly with updated information and analysis. 

Hudson’s Bay Company (TSX:HBC) and its wholly-owned subsidiary Saks Fifth Avenue announced today plans to open a full-line Saks store in the heart of downtown Toronto at the Hudson’s Bay flagship store at the corner of Queen Street and Yonge Street. The approximately 150,000 square-foot, multi-level Saks is planned to open in the fall of 2015 and will be co-located with the current Hudson’s Bay store.

HBC has agreed to sell its downtown Toronto flagship retail complex and the Simpson’s Tower located at 401 Bay Street to an affiliate of The Cadillac Fairview Corporation Limited for a purchase price of $650 million. HBC will lease the entire retail and office complex back for a base term of 25 years with renewal options for a term just under 50 years. Proceeds of the transaction will be used to reduce the Company’s debt and invest in growth initiatives. The transactions are subject to customary conditions and are expected to close on or about February 25, 2014. As part of this transaction Saks has also agreed to lease space in Toronto’s Sherway Gardens for a full-line Saks store.

“We’re very pleased to announce this agreement with Cadillac Fairview, which clearly demonstrates the tremendous value of our dynamic real estate portfolio,” stated Richard Baker, HBC’s Governor and Chief Executive Officer. “This sale-leaseback provides HBC with resources to deleverage and accelerate investment in our growth initiatives. We continue to explore other options to create additional value through the power and potential of our real estate assets.”

“The opening of our first Saks Fifth Avenue stores at Toronto Eaton Centre and Sherway Gardens brings Canadian shoppers the full array of luxury fashion collections and exceptional service for which Saks is renowned,” continued Mr. Baker. “We especially appreciate Cadillac Fairview’s strong commitment to the Queen Street location and adjacent Toronto Eaton Centre, providing us with the opportunity to be a major part of Toronto’s premier luxury shopping destination.”

“We are excited to be the first to bring Saks to the Canadian market as part of this iconic property in the heart of downtown Toronto,” said John Sullivan, President and Chief Executive Officer, Cadillac Fairview.

“We believe there is significant and untapped opportunity for retailers such as Saks in Canada. Through this agreement with HBC we are thrilled to expand the luxury offering in downtown Toronto and at Sherway Gardens, enhancing the superior customer experience for which Toronto Eaton Centre and Sherway are renowned.”

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Opening of Sherway Gardens Nordstrom delayed until spring 2017


The opening of Nordstrom at Toronto's Sherway Gardens has been delayed until the spring of 2017. It was originally scheduled to open in the fall of 2016. Some may be disappointed with the delay, especially since the Sherway Gardens Nordstrom was the first Nordstrom to be announced for the Toronto area when the company made the original Canadian store announcement in July, 2012.

Nordstrom spokesperson Brooke White says that the Sherway store's delay is due to the considerable construction activity required to build Toronto's two other Nordstrom stores. Nordstrom's Yorkdale and Toronto Eaton Centre stores are both now scheduled to open in the fall of 2016. Nordstrom announced the opening of its 188,000 square foot Yorkdale store in April of 2013, which will be built as part of a mall expansion. This week Nordstrom also announced that it would build a 213,000 square foot flagship store at the Toronto Eaton Centre, replacing part of a current Sears store.


Nordstrom's Sherway Gardens store will be a newly-built 138,000 square foot space which will replace retailer Sporting Life at the south end of the mall. Sporting Life will relocate to a newly built store in a northward mall expansion, possibly alongside an expanded Holt Renfrew store.

RELATED:


Images above are renderings of Nordstrom's Sherway Gardens store, courtesy of Nordstrom Canada's Media Kit

[Sherway Gardens website]

[Nordstrom website]

UPDATED ANALYSIS: POTENTIAL SUBURBAN SAKS FIFTH AVENUE LOCATIONS IN CANADA

[Image Source]
According to the November 27th edition of the The Globe & Mail Report on Business, Saks Fifth Avenue CEO Richard Baker says that he'll open up to eight Saks Fifth Avenue stores in Canada, including suburban locations in or near Toronto, Montreal and Vancouver. Based on Baker's comments, we're providing an updated list of which suburban Canadian malls are likely to receive a new Saks store. We also have an update on potential downtown stores: they might not go into current flagship Hudson's Bay store space, after all. 

The Globe & Mail article says the following about Richard Baker:


"He’s also weighing setting up Saks in Calgary, and in suburban Toronto, Montreal and Vancouver—up to seven or eight Canadian Saks in all, he says. He’s already negotiating for space in major suburban malls such as Toronto’s Sherway Gardens and Yorkdale."


Given the above statement, we have an update on what suburban locations we think Saks Fifth Avenue could open in Canada. We'll specifically address potential suburban locations. 


The first two locations we'll discuss are the obvious ones which were mentioned in the article: Toronto's Sherway Gardens and Yorkdale Mall. The second two might be less obvious. We speculate that the Vancouver store location could be at Oakridge Shopping Centre, and that the suburban Montreal store could be at Le Carrefour Laval.


Yorkdale Shopping Centre, Toronto: Richard Baker may be negotiating for the entire 190,000 square foot Sears store location that was recently sold back to landlord Oxford Properties. The store enjoys a prime location next to an expanded flagship Harry Rosen store and is between an upscaled Hudson's Bay and a substantially expanded and modernized Holt Renfrew store. We had initially expected a Yorkdale Saks to be established within part of Hudson's Bay's 303,000 square foot store, though now it appears Richard Baker is willing to spend substantially more money on Canadian Saks stores than we had originally anticipated. 

Saks could have some competition for the Yorkdale Sears space, however. La Maison Simons has expressed interest in leasing part of the space. Furthermore, the mall's landlord has also stated that it may wish to demolish Sears in order to expand Yorkdale Mall into that space as well as the adjacent parking space. 


Nordstrom will join Yorkdale in 2016 with a new 188,000 square foot store, in part of a 298,000 square foot mall expansion. 

Sherway Gardens, Toronto: Saks could occupy part (or even all) of Sherway's 225,000 Sears store location which Sears recently sold back to landlord Cadillac Fairview. We again have changed our thoughts on where Saks could go. We were expecting Saks to open a shop-in-store within suburban Hudson's Bay stores, but after last week's article in the Globe & Mail, it appears that Richard Baker is willing to spend money to build large free-standing Saks stores. We think 225,000 square feet might be a bit too large for Saks at Sherway, however - only two American Saks locations are larger than 225,000 square feet, and both are 'urban' flagships, being the Manhattan (646,000 square feet) and Beverly Hills (275,000 square feet) stores. 

Sherway Gardens is a sufficiently upscale mall for Saks, and it features other upscale tenants including Holt Renfrew (which may stay in the mall, despite its building a 120,000 square foot store in nearby Mississauga) and, in 2016, a 138,000 square foot Nordstrom store. 

Oakridge Shopping Centre, Vancouver: Saks had already been inquiring into space at Oakridge Centre, and Oakridge's landlord is looking to fill a proposed 155,000 square foot anchor store with an upscale American department store. Though it wouldn't open until some time around the year 2020, an expanded Oakridge Centre could become home to a Saks store. 

Carrefour Laval, suburban Montreal: Given the possibility that Saks could open in suburban Montreal, our best guess for its location would be Carrefour Laval. The mall enjoys an affluent shopping base and its landlord, Cadillac Fairview, is keen to make improvements to the mall. We're not sure if Saks could take over the mall's current Sears store, or if it would want to - the mall's Sears store is a bit removed from other upscale retailers and is itself neighboured by some more mid-market stores. We're not aware of mall restrictive covenants though it's possible that a purpose-built Saks could arrive in the mall within a few years.

Besides these four suburban store locations, we expect at least three downtown Canadian Saks stores: one in Toronto (replacing Hudson's Bay at Yonge and Bloor) as well as in Vancouver and Montreal. Sources have informed us that Saks management may want to create free-standing downtown stores rather than locate within flagship Hudson's Bay stores in Downtown Vancouver and Montreal. An eighth possible Saks store could be somewhere in Calgary. 


PORSCHE DESIGN TO OPEN STORES ACROSS CANADA

 

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:

Calgary: 

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.

Toronto:

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 MulberryTiffany & Co.CartierSalvator FerragamoDavid Yurman and others.

Porsche Design pop-up shop at Toronto's Sherway Gardens. Photo: Sherway Gardens

Porsche Design pop-up shop at Toronto's Sherway Gardens. Photo: Sherway Gardens

Edmonton: 

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.

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ANALYSIS: SEARS CANADA SELLS 5 STORE LEASES, INCLUDING TORONTO FLAGSHIP

Photo: Google Streetview screenshot

Sears Canada

has sold five more of its store leases to mall landlords for about $400 million. This creates an opportunity to redevelop these spaces as well as possibly pave the way for more Canadian 

Nordstrom

,

Saks Fifth Avenue

,

La Maison Simons

and even

Bloomingdale's

stores. 

Sears has sold its store leases back to its mall landlords in the following locations: 

  • Toronto:The Toronto Eaton Centre
  • Toronto:Sherway Gardens Shopping Centre
  • Markham, Ontario:Markville Shopping Centre
  • London, Ontario:Masonville Place
  • Richmond, BC:Richmond Centre

All of these malls are owned and operated by landlord

Cadillac Fairview

except for Richmond Centre, which is co-owned by Cadillac Fairview and

Ivanhoe Cambridge

The following is our analysis of what could replace these Sears Canada locations: 

Toronto:

 Toronto Eaton Centre

The 816,000 square foot crown jewel of Sears Canada's real estate offers plenty of options for redevelopment. We think that

Nordstrom

is a frontrunner to replace a majority of the vacated Sears space

, and 

that it would occupy 225,000-275,000 square feet. 

Other possible department store anchors include

La Maison Simons

(which would occupy about 100,000-130,000 square feet) and Bloomingdale's, 

which continues to show interest

in the Canadian market. Saks Fifth Avenue is a further possibility, though we believe Downtown Toronto's Saks

will replace the current Hudson's Bay store at the corner of Yonge and Bloor Streets

, closer to the luxury shopping area of

Yorkville

and its anchor,

Holt

Renfrew

.

Some of Sears' current Toronto Eaton Centre space could also be subdivided for use by multiple retailers. We'll elaborate soon in an article devoted specifically to Sears' Toronto Eaton Centre real estate. 

The top four floors of the store will remain Sears Canada's corporate headquarters, at least in the shorter term. Sources tell us that Sears Canada will continue to utilize its $1/square foot/year lease for this office space (which would have expired in the year 2077), making it far less costly than other available office space. 

Sears will be vacating the lower retail portion of this location by February 28th, 2014. 

Toronto:

 Sherway Gardens Shopping Centre

There are plenty of options to reuse the 225,665 square foot Sherway Sears space. The store could even be demolished for redevelopment, to be replaced by multiple smaller stores and one or more anchor stores. Sherway attracts affluent shoppers and the mall could see

Saks Fifth Avenue

 occupy part of the current Sears space, though Saks would likely not occupy more than about 130,000 square feet. 

Sherway Gardens is one of Canada's most productive malls, enjoying per-square-foot sales of almost $900/year according to its landlord. Hudson's Bay anchors the opposite end of the mall from Sears. Other anchors include 

Holt Renfrew (which is possibly staying at Sherway and expanding

) and, in 2016, 

Nordstrom which will open one of two

 Toronto locations.

Sears will be vacating its Sherway location by February 28th, 2014.

Markham, Ontario:

 Markville Shopping Centre

Markville's Sears store is 130,626 square feet according to its landlord, and we think the store space has limited potential for an upscale replacement anchor store. The mall already features Hudson's Bay and Walmart as its anchors, and the entire mall spans close to a million square feet. Sales per square foot at Markville are only about $490/square foot/year according to the mall's landlord. 

La Maison Simons could replace part of Sears' space. The space could also be subdivided for multiple smaller anchors and other stores. We doubt that, given the mall's demographics and sales, Nordstrom, Bloomingdale's or Saks Fifth Avenue will replace Markville's Sears any time soon. 

Sears will be vacating Markville by February, 2015.

London, Ontario:

 Masonville Place

This 127,205 square foot Sears store is in London, Ontario's most productive shopping centre. The mall, in fact, boasts sales of about $770/square foot according to its landlord. Other anchors include a relatively small Hudson's Bay store (at about 85,000 square feet) as well as a 91,200 square foot Target store. 

One could speculate that Sears' space could be replaced by Nordstrom, as the city and store arguably share some of the same characteristics. London is a conservative but relatively well-to-do city whose population could possibly support a Nordstrom. Nordstrom, itself, has been described as being both conservative and upscale. We doubt London would have the quantity of luxury-oriented shoppers to support Saks Fifth Avenue, and we don't expect La Maison Simons to target London in the next several years. 

Sears will be vacating this space by February 28th, 2014.

Richmond, BC:

 Richmond Centre

This 122,000 square foot Sears store could be reconfigured into multiple-tenant retail or be occupied by the likes of Nordstrom or La Maison Simons. Richmond has considerable household wealth, despite income statistics that might indicate otherwise. The mall enjoys sales of about $700/square foot, but may require renovations to entice any new upscale anchors.

Sears will be vacating this space by February, 2015.

Further Details on Sears Leases

In the past 14 months, Sears Canada has sold off several of its leases to mall landlords. In the summer of 2012, Sears sold its leases in Vancouver, Calgary and Ottawa, 

paving the way for Nordstrom's first Canadian stores

. Sears subsequently 

sold two leases in the Toronto area

, resulting in 

speculation that La Maison Simons may move in

. Sears also announced 

a $1-billion project to redevelop its Burnaby, BC real estate

 at Metrotown.

Sears is making a large profit from selling its leases. Its

first lease sale

in the summer of 2012 generated about $170 million. The

subsequent sale of two Toronto-area leases

gained the company over $190 million, and a

possible $53 million

for Sears' Scarborough Town Centre lease could further be realized. This is easy money for Sears, and it leads us to anticipate that more Sears Canada leases will be sold in the coming months.

[

Sears Canada website

]

HOLT RENFREW MAY KEEP ITS SHERWAY STORE

Photo Source: http://www.listentolena.com [Image Link]

Holt Renfrew could keep its location at Toronto's Sherway Gardens open, contrary to what we reported in April. A source tells us that despite its opening a 120,000 square foot store at Mississauga's Square One in 2016, Holt's may keep and enlarge its Sherway Gardens store as well. 

If Holt Renfrew keeps its Sherway store, it will make for a total of 10 full-sized Holt Renfrew stores in Canada.

Holt Renfrew's Sherway Gardens store is currently one of its smallest, at 33,670 square feet. It is located in a part of the mall currently under expansion. No word yet on the size or configurtion of a renovated Sherway Gardens store if it does, indeed, stay in the mall. 

Holt Renfrew is in the process of a substantial expansion that will see its square footage expanded by 40% via a budgeted $300 million. It is doubling the size of its Yorkdale store in Toronto and will likely expand its Vancouver store over the coming 24 months. More on the possible Vancouver store expansion will follow shortly. 


NORDSTROM CANADIAN STORE INFORMATION AND RENDERINGS UPDATE

Nordstrom Rideau Shopping Centre, Ottawa. Image: Nordstrom
Nordstrom has released more renderings of its Canadian stores, and we've got updated information from our Nordstrom insider. The new renderings are of the Ottawa, Calgary and Toronto Sherway Gardens stores. These join previously released renderings of the flagship Vancouver BC store and recently announced Toronto Yorkdale Shopping Centre stores.

Birds-eye view of Ottawa's Nordstrom (in blue). Image: Nordstrom
Ottawa: Rideau Centre

Ottawa's Rideau Centre will get a 157,000 square foot, two-level Nordstrom store on the top two floors of the mall's former Sears store. The exterior rendering of the store is the top image in this article. Our Nordstrom insider informs us the store will include an expanded women's designer department called 'Collectors' that will directly compete with the small designer floor at Ottawa's Holt Renfrew. Our Nordstrom insider tells us they are also well aware that Hudson's Bay plans to start renovations on its Rideau Street store and that Hudson's Bay will attempt to beef-up its designer offerings. Nordstrom will attempt to secure many designer labels Hudson's Bay would carry including Rachel Roy, Spendid, Diane von Furstenberg, McQ Alexander McQueen and "many others". Our Nordstrom insider says despite Hudson's Bay's renovations (and eventual inclusion of a TopShop concession), Nordstrom will trump Hudson's Bay especially in the area of shoes and customer service.

Thank you to our Ottawa Retail Insider Geoffrey Hall for directing us to the Ottawa store renderings. 



Nordstrom, Calgary Chinook Centre. Image: Nordstrom
Calgary: Chinook Centre

The Calgary Chinook Centre Nordstrom will occupy about 140,000 square feet of Chinook Centre's former 173,000 square foot Sears store. The store will be two floors and we'll soon reveal the store's department layout, as per our Nordstrom insider. The front portion of the former Sears store will be configured to multi-tenant retail, while the back half of the former Sears store will be Nordstrom. See the image below, showing Nordstrom's partial occupation of the former Sears. 
Chinook Centre, Nordstrom in Blue. Note: Only part of Sears will be occupied by Nordstrom. Image: Nordstrom
Nordstrom's Calgary store will go head-to-head with Hudson's Bay and (to a lesser extent) Harry Rosen. Our Nordstrom insider says that Nordstrom, again, will excel in areas of designer clothing, shoes and customer service. 


Nordstrom Sherway Gardens Rendering. Image: Nordstrom
Toronto: Sherway Gardens

The two-level Sherway Gardens Nordstrom store will be about 138,000 square feet and will be built where Sporting Life is currently located. Our Nordstrom insider says it will feature a 'small' women's Collectors department and will carry less variety than the new Yorkdale Nordstrom store which will be about 50,000 square feet larger. In December 2012 we provided information on the proposed layout of the Sherway Gardens Nordstrom store. Nordstrom will have less upscale competition at Sherway Gardens, however, as Holt Renfrew will leave Sherway for a new 120,000 sqaure foot store at Mississauga's Square One Shopping Centre
Location of Sherway Garden's new Nordstrom store. Image: Nordstrom

We previously provided images of the recently announced Yorkdale Shopping Centre Nordstrom store, and our Nordstrom insider tells us it will attempt to secure a sufficient designer roster to compete both with Hudson's Bay, Harry Rosen and Holt Renfrew. Holt's will still be "by far" the most upscale anchor at Yorkdale, though Nordstrom will attempt to outdo Holt's in the customer service department. Both will battle for shoes, especially with Holt's soon-to-open 10,000 square foot shoe department. Our Nordstrom insider also says Harry Rosen should be vigilant since Nordstrom will put great effort into offering quality designer men's clothing and accessories with exceptional customer service. 

Nordstrom website: www.nordstrom.com

Could Holt Renfrew Open at Mississauga's Square One?

[Image Source]
Holt Renfrew is in talks with Oxford Properties to open a store at Mississauga's Square One Shopping Centre. Negotiations have been ongoing for several years, according to a source at Holt Renfrew head office. This store would replace Holt Renfrew's current Sherway Gardens store. 

Negotiations with landlord Cadillac Fairview for an enlarged Holt Renfrew store at Sherway Gardens have been unsuccessful and Oxford has jumped in to lure Holt's away from Sherway into a newly renovated Square One Shopping Centre

In July 2012 we reported on Holt Renfrew's expanding its Sherway Gardens store to 102,000 square feet. It appears we may have published this information in haste, given the now-stalled negotiations. 
Floorplan: Screenshot from Square One website
The Globe & Mail reported Sunday evening on Holt's potential Square One move. The link to this Globe & Mail article can be found [here]. 

While researching for this article, we found this online petition to add Holt Renfrew to Square One. So far it only appears to have seven signatures...

We will update readers as we learn more of Holt Renfrew's possible relocation in the Western Greater Toronto Area. 

Holt Renfrew website: www.HoltRenfrew.com

Square One Shopping Centre website: www.shopsquareone.com

Sherway Gardens website: www.sherwaygardens.ca


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Canadian Nordstrom Store Layouts: Insider Info

Salon Shoes (featuring Miu Miu). Image: doyoudesire.com
One of our Nordstrom insiders is involved with Canadian store planning. Our insider provided us some information about the layout of Canada's first four Nordstrom stores. First hint: Shoes will take a substantial square footage in each store.

Retail Insider is going to provide selected Nordstrom store details in the next couple of weeks because 1) We're too busy to do it on one long article and 2) We want you to keep coming back to read our website.  And believe us it will be worth it. In January our website will look substantially different and will include new features including podcasts, for example.

Today we'll have a brief peek at the layout of the Toronto Sherway Gardens store. Sherway's Nordstrom store will be two floors and will be about 138,000 square feet. The store is considered to be a 'satellite' store eventually complimenting a Downtown Toronto flagship location that will be announced after negotiations are completed. The Sherway store's layout will be fairly 'typical' of a Nordstrom store, to be explained below.
ebar at Nordstrom. Image: mattconstruction.com

Ground Level:

The ground-level of the Sherway Nordstrom will include a small, quick-food and coffee concept called 'ebar' at the store's mall entrance. As one enters the store, women's shoes will be presented in three departments. Next to e-bar will be a department called 'Salon Shoes', which includes designer footwear such as Valentino, Gucci, Prada and others. Two other adjacent women's shoe departments will be beside it ('Women's Shoes' and 'Brass Plumb Shoes' - both less expensive), all serviced by a substantial storage area behind.

The ground level will include two women's handbags departments; one for 'regular' bags and one for 'designer handbags'. Designer handbags may include Jimmy Choo, Yves Saint Laurent and others (it's too soon to say). Jewelry and small accessories will be nearby.

A typical cosmetics department will be included on the ground-floor. Nordstrom cosmetics departments are typically densely-packed and adhere to a somewhat uniform look.

Menswear will be located on the ground floor. Men's shoes will be an important part, to be located next to women's shoes (to share storage space). Menswear will include departments at various prices including 'The Rail' (casual/denim), men's clothing, men's 'furnishings', men's sportswear and selected pieces from men's 'designers' department, to be revealed at a later date.

Childrenswear and shoes will also be located on the ground floor.
Collectors, Fashion Valley San Diego. Image: doyoudesire.com
Second Floor:

Nordstom's Sherway second-floor will include several women's departments. 'Collectors' is the name of Nordstrom's designer women's department, typically carrying such designers as Dolce & Gabbana, Gucci, Valentino, Oscar de la Renta and others. St. John womenswear may be carried in its own department, and licensing negotiations for the brand are underway.

Other women's departments will include 'Via C' (contemporary designers), Savvy (contemporary sportswear), t.b.d (trendy contemporary), Individualist/Point of View/Studio 121 (all less-expensive women's departments), as well as dresses, coats, lingerie, hosiery, sleepwear, and possibly larger-sizes and petites (known as 'Encore' and 'Petite Focus', respectively).

Our Nordstrom insider noted that the Sherway Gardens store may be less-well stocked than some American Nordstrom stores due to 1) its relatively small size and 2) Canadian designers are tightly distributed and many Nordstrom designers already have licensing contracts with either Hudson's Bay or Holt Renfrew. So we can expect a slightly different Nordstrom store in Canada, though our source confirms customer service and shoes will keep Canadian shoppers coming back to Nordstrom, Sherway Gardens.

Retail Insider will post regular articles about what is to come with Nordstrom's entry into Canada. We've also interviewed a prominent retail analyst who says Nordstrom has good things but also challenges in the Canadian market. It will be worth the wait. Keep reading and stay tuned!

Nordstrom website: www.nordstrom.com

Sherway Gardens website: www.sherwaygardens.ca



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More Details on the $350million Sherway Gardens Expansion

Rendering of Sherway Gardens Expansion. Image: Cadillac Fairview

We are re-posting details of the Sherway Gardens mall expansion in Toronto. Yesterday we noted that this announcement would happen today, and will be a major project in a total $1.6billion to be spent by Cadillac Fairview in the next 3-5 years to update and expand its retail real estate holdings. 
TORONTO, ONTARIO -- (Marketwire) -- 10/23/12 -- The Cadillac Fairview Corporation Limited is pleased to announce today a $350 million revitalization and expansion of Sherway Gardens, an investment that will reinforce the 41-year-old shopping centre's position as west-end Toronto's most popular retail destination.
The redevelopment will provide for an additional 210,000 square feet of retail space and a remerchandising of 90,000 square feet of existing space. The project is scheduled to begin in January 2013 and will take approximately 45 months to complete.
"Sherway Gardens is one of our best-performing shopping centres, and this revitalization will amplify everything that has made it such a favourite with shoppers," said Clive Baxter, Cadillac Fairview's Senior Vice President, Ontario Portfolio. "By making room for new best-in-class retailers and enhancing our overall shopping and dining environments, we are extending the mall's appeal to the increasingly affluent, discerning shopper that Sherway Gardens attracts."
The full renovation will include new flooring, new ceilings throughout common areas, new lighting and a new set of public washrooms. A new three-level parkade will provide customers with 1,200 parking spaces in close proximity to the mall. In addition, the expansion will allow for a significant change to the merchandise mix, increasing the retail area to 1.3 million square feet, including the GTA's first Nordstrom store and four new full-service restaurants.
"Food is going to play a much more important role, helping to establish and extend the Sherway Gardens experience as an attractive dining destination, day or night," said Andy Traynor, General Manager, Sherway Gardens. "We are making room for four new full-service restaurants, while literally elevating the prominence of our food court," he said, referring to its relocation within the mall.
JOEY and P.F. Chang's are among the new restaurant brands that will open in Sherway Gardens. The mall transformation will also encompass the expansion of both Harry Rosen and Sporting Life, and is designed to continue to attract popular brands, with the recent opening of Tiffany & Co., and Forever 21 slated to open in November.
About Cadillac Fairview
The Cadillac Fairview Corporation Limited is one of North America's largest investors, owners and managers of commercial real estate. For more than 50 years Cadillac Fairview has been leading the way in commercial real estate with innovative design, development and management.
Cadillac Fairview focuses on developing and managing high quality office properties and regional shopping centres in Canada and the United States, as well as international investments in real estate companies and investment funds. With a portfolio valued at more than $20 billion, Cadillac Fairview and its affiliates own and manage nearly 47 million square feet of leasable space at 83 properties across North America, including some of Canada's landmark developments, such as Toronto-Dominion Centre, Toronto Eaton Centre, Pacific Centre and Chinook Centre.
Contacts:
Media contact: MAVERICK Public Relations
Kelly Olive
(416) 640-5525 x230
kellyo@maverickpr.com
Sherway Gardens website: http://www.sherwaygardens.ca

Cadillac Fairview website: www.cadillacfairview.com


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$350million Expansion/Renovation for Toronto's Sherway Gardens

Image: Sherway Gardens (Cadillac Fairview)
Tomorrow morning (Tuesday, October 23rd) Cadillac Fairview will announce a $350million expansion and renovation of its Sherway Gardens mall in West Toronto. We previously reported on this renovation/expansion, which will include a vastly expanded Holt Renfrew store, new Harry Rosen and Sporting Life Stores, and boutiques for Louis Vuitton, Burberry, Kate Spade and others. 

We don't have much else to report on this expansion except we appear to have beat Cadillac Fairview's announcement by a few weeks. We'll continue to update you on commercial real estate news from retail insiders. 

Sherway Gardens website: http://www.sherwaygardens.ca

Cadillac Fairview website: www.cadillacfairview.com


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New Nordstrom Pacific Centre and Sherway Gardens Renderings

This morning, Cadillac Fairview released renderings of two new Canadian Nordstrom stores: Several at Vancouver's Pacific Centre, the other at Toronto's Sherway Gardens. Let's start with the new Vancouver store:

Nordstrom Pacific Centre, Granville/Georgia entrance: James Cheng/Cadillac Fairview
Nordstrom Pacific Centre, Robson/Howe Street entrance: James Cheng/Cadillac Fairview
Nordstrom Pacific Centre, from Robson Street near Hornby Street: James Cheng/Cadillac Fairview
Nordstrom Pacific Centre, Granville/Robson entrance: James Cheng/Cadillac Fairview
Nordstrom in blue. Notice the 2 light wells for offices above. Image: James Cheng/Cadillac Fairview
Howe Street exterior of Pacific Centre Nordstrom: James Cheng /Cadillac Fairview
Nordstrom's Pacific Centre Vancouver store will include four levels of office space, serviced by two internal light wells. Each office floorplate will be about 70,000 square feet, being the largest office floorplates in the city.

The building is being re-designed by architect James Cheng. As we previously reported, Nordstrom will occupy 230,000 square feet on levels Ground, two and three, while the lower-level of the former Sears store will be 48,000 square feet of multiple-tenant retail. 
Sherway Gardens, Toronto. Nordstrom in blue. Image: Cadillac Fairview
The Sherway Gardens store will be newly-built 138,000 square feet, located where the mall's Sporting Life anchor currently resides as we previously posted.

We are expecting further renderings in the near future, and will continue to update this page.

Be sure to follow us on twitter and Facebook, as we provide interesting updates sometimes not included on this website.

Nordstrom website: www.nordstrom.com

Cadillac Fairview website: www.cadillacfairview.com


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Nordstrom Press Release Names First Four Canadian Locations

Photo: Bloomberg
This morning Nordstrom and commercial real estate owner/manager Cadillac Fairview announced Canada's first four Nordstrom locations. We previously reported these four locations, and we now have more information on opening dates and store sizes:

1) The Vancouver Pacific Centre location will be about 230,000 square feet and will occupy the ground, second and third floors of the current Sears location. The top four floors will be 280,000 square feet of office space, and the 48,000 sq ft basement level will be a retailed extension of Pacific Centre's mall-level. It will open Spring 2015.

2) The Calgary Chinook Centre store will be about 140,000 square feet, occupying the Sears store at the North end of the mall. It will open Fall 2014.

3) The Ottawa Rideau Centre store will be about 157,000 square feet, occupying the two upper levels of of the three-level, 240,000 sq ft  current Sears store. It will open Spring 2015.

4) The Toronto Sherway Gardens store will be about 138,000 square feet, and will be a newly-built store at the south-end of the mall (currently occupied by Sporting life, as we previously reported). It will open Fall 2016.

And now for the information not provided in today's press conference. Nordstrom and Cadillac Fairview are actively trying to take over Sears leases at The Toronto Eaton Centre and Toronto's Yorkdale Shopping Centre. Part of the 800,000 square foot Toronto Eaton Centre store would be Nordstrom, part of the space would be sub-divided, and part might possibly go to La Maison Simons, the Quebec-based retailer seeking a Canadian expansion. The 190,000 square foot Yorkdale store would be entirely (or mostly) Nordstrom, going head-to-head with neighbouring Bay and Holt Renfrew stores.

Nordstrom is examining other retail locations across Canada. Many of these are currently occupied by Sears Canada. A few potential locations include:

-Edmonton: Sears Southgate Shopping Centre
-Richmond, BC: Sears Richmond Centre
-Burnaby BC: Metropolis at Metrotown
-Winnipeg MN: Sears Polo Park

Nordstrom's president, Blake Nordstrom, says Canada has room for between six and nine full-sized Nordstrom stores.

Readers may note that some of the Nordstrom stores seem a bit 'small' and indeed are only slightly larger than a full-sized Holt Renfrew store. Canada's Nordstrom's will initially lack some services offered by some larger American Nordstroms, such as spas, multiple restaurants, and wedding dress salons. The Vancouver store, however, will likely have all of these.

Both Holt Renfrew and The Hudson's Bay Company will be scrambling to secure designer labels and vendors. Holt Renfrew already has massive expansion plans as we previously reported, and The Hudson's Bay Company will issue an IPO late October 2012 to raise much-needed funds (over $1billion) to renovate many of its Canadian locations.

We will consistently update this website with further Nordstrom Canada news, as well as Hudson's Bay Company and Holt Renfrew efforts to modernize and expand their current locations in anticipation of retail competition previously unseen in Canada.

Nordstrom website: www.nordstrom.com

Cadillac Fairview website: www.cadillacfairview.com




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Nordstrom Formally Announcing Canadian Locations Thursday, September 13th

Image :Nordstrom
Nordstrom will announce its first round of Canadian stores via press conference on Thursday, September 13th. We have been provided some insider info from our mole at the Seattle headquarters, and have been asked to not share it until after the Toronto press conference. We can confirm that there will eventually be more than four Nordstrom stores in Canada, though only four will initially be announced.

This is only the beginning. Nordstrom Rack will also open multiple locations in Canada, and we will provide details as they come available. Nordstrom will also be carrying some designers not currently readily available in Canada (or at all), and it will be snatching up some exclusive designers from both The Hudson's Bay Company and Holt Renfrew. Expect label wars unprecedented in Canadian history.

As a teaser, next week we'll be discussing Nordstrom's retail interiors and how Canadian locations will be slightly different than American Nordstroms. Nordstrom will also introduce some hard-shops for women's accessories and clothing, competing directly with Holt Renfrew's designer floors. The Hudson's Bay Company should also be concerned, as Nordstrom will carry both Coach and Burberry.

One of Nordstrom's Canadian challenges will be menswear. Details to follow next week.

Watch this website Thursday and follow us on twitter (@retailinsider_) for timely updates on Nordstrom's entry into Canada!

Nordstrom website: www.nordstrom.com




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