Although Canada is a young country at just over 150-years-old, the nation has a long history of retailers that have come and gone.

In some respects, retail was the foundation of Canada — the Hudson’s Bay Company was originally a fur trader that opened outposts across “Rupert’s Land,” and over time transitioned to the department stores of today. Fortunately, Hudson’s Bay is still around…at least for now.

Over the years we’ve lost a few very special retailers in Canada. Let’s take a trip down memory lane.

Eaton’s

Flickr/Local History & Archives

The Eaton family was once regarded as royalty, and they operated a chain of department stores coast-to-coast. Timothy Eaton founded Eaton’s in 1869 in Toronto and it grew to become a retail and social institution in Canada, with stores around the country and buying offices around the world. Eaton’s also mailed out its super-popular Eaton’s catalogue to millions of Canadians.

Eaton’s slogan was “Goods Satisfactory or Money Refunded.” The retailer opened gigantic downtown flagships in Canadian cities such as Winnipeg, Montreal, and Vancouver, with some spanning almost a million square feet over eight or more floors.

Until the 1950s, Eaton’s could claim to be the “largest retail organization in the British Empire.”

The claim was no doubt true, as it once accounted for a significant portion of all retail sales in Canada. In 1930, it was responsible for 60% of all department store sales in Canada.

Eaton’s opened downtown shopping centres in many Canadian cities, and named them “Eaton Centre.” The retailer also opened many stores in the suburbs and essentially saturated the country with its stores.

Other department store chains began to see increased success — Hudson’s Bay opened units across the country, as did Sears and a number of local chains. Mismanagement and experimenting with “Everyday Value Pricing” and going “upscale” ultimately led to its demise. By 1997, Eaton’s had only 10.5% of department store sales in Canada, the same year that it declared bankruptcy. The chain folded in 1999 and was bought out by Sears Canada.

Sears Canada, which bought Eaton’s for $50-milllion, renovated and re-opened eight Eaton’s flagships in an attempt to turn things around. It was hard to secure brands, and competitors such as Hudson’s Bay threatened to pull wholesale accounts if Eaton was provided some of the same. All stores closed in 2002.

Woodward’s

Western Canada was once home to its own homegrown chain of departments stores named Woodward’s, and many still talk about the retailer. Woodward’s was founded by Charles Woodward in 1902 in Vancouver with a tiny store on Main Street. A couple of decades later, Woodward’s occupied a 700,000 square foot building on West Hastings Street as it began expanding into cities such as Edmonton.

In the 1950s, shopping centres began to pop-up in Canada, and Woodward’s even co-developed some of the malls where it opened stores. Woodward’s sold almost everything — family fashions, home goods, and even groceries in its popular “Woodward’s Food Floor” grocery departments. Woodward’s had a famous “$1.49″ jingle, and the creator of the tune passed away last month in his ’90s.

Woodward’s carried some of the same designers as Hudson’s Bay and Eaton’s, and all three were fierce competitors in Western Canada, where some malls had all three stores.Many considered Woodward’s to be the most “fashion forward” of the three.

Woodward’s expanded quickly as it gained traction, only to be hit by the recession of the early 1990s like so many other now defunct retailers.

Woodward’s declared bankruptcy in 1993 and the Hudson’s Bay Company converted many Woodward’s stores to Hudson’s Bay stores, amid sadness. As well, Woodward’s owned Abercrombie & Fitch Canada which had four unique department stores in Vancouver, Edmonton, Toronto and Montreal. Hudson’s Bay unfortunately closed these when it bought Woodward’s assets.

Simpsons

Flickr/Rob

Another venerable department store chain, Simpsons has a long history in Canada. Founder Robert Simpson opened this first store in 1858 in the town of Newmarket, north of Toronto, and the store burned down in 1870. Mr. Simpson moved his store to Toronto in 1872 and in 1896, he built a beautiful flagship store at 176 Yonge Street, at the southwest corner of Queen Street. Robert Simpson died in 1897, unfortunately, and the business was taken over by three local entrepreneurs, who expanded Simpsons into a national chain of department stores.

Simpsons became known for its upscale offerings — in 1937 it debuted the “St. Regis Room,” a luxury department with designers such as Christian Dior. Simpsons also opened stores in cities such as Montreal, Ottawa, and London (Ontario), and all became social hubs.

In 1952, Simpsons partnered with Amercian department store chain Sears Roebuck and Company to form a chain called Simpsons-Sears Limited, which operated stores across the country including Vancouver and Regina, as well as in Ontario and Quebec. I

In the 1960s, Simpsons-Sears was one of the first companies in Canada to start using computers at their locations, with enormous rooms with special ventilation housing massive IBM punch card main frame machines.

The Hudson’s Bay Company acquired Simpson’s in 1978 and according to competition law, the Sears partnership ended. The Hudson’s Bay Company kept most Simpsons stores in operation but sales began to dwindle — in 1984 sales were said to have been down 25% over five years, resulting in layoffs.

In 1989, the Simpsons flagship store on Queen Street in Toronto, which had grown to nearly a million square feet over 10 retail floors, saw a $30-million renovation as it relaunched as the “Miracle on Queen Street.” It had the largest cosmetics department in the world, a gourmet food hall in the basement, and luxury fashions as well as shops for brands such as Alfred Dunhill London. Several TV shows and movies were filmed in the store — it features prominently in the opening of 1980s movie Short Circuit 2, and popular children’s TV program Today’s Special was partly filmed in the store.

Sales continued to slump and Bay/Simpsons operations were merged in 1989. That quickly led to Hudson’s Bay getting rid of the Simpsons name entirely — flagships in Montreal, Ottawa, and London closed down, and in 1991, the Hudson’s Bay Company converted the massive Simpsons flagship to what we now know as “Hudson’s Bay on Queen” at the CF Toronto Eaton Centre. Today, Saks Fifth Avenue occupies part of the historic building.

Ira Berg

Vintage Couture

Entrepreneur Ira Berg made history in 1937 when he opened a store by the same name at the corner of Yonge Street and St. Clair street, back when the area was considered to be Toronto’s “uptown” (Yonge north of Eglinton was still a dirt road, imagine that!). Ira Berg unfortunately passed away in 1953 and his son Russel took over the business. He moved the store to 1510 Yonge Street (at the southwest corner of Delisle Street) in 1968, occupying the entire building.

In 1976, Ira Berg expanded into an adjacent building and opened North America’s first standalone location for Paris-based designer Celine. Ira Berg originally carried dresses and outerwear — back then, women didn’t really wear “sportswear.”

For years, Ira Berg was the only retailer carrying the Celine line, and even opened a Celine boutique at 110 Bloor Street West.

Gracious, Good’s Blog

Ira Berg also carried brands such as Akris (the only location in Toronto), Genny (designed by Versace), Byblos, Claude Montana, Versace, Bottega Veneta, Prada, Tod’s, Brunello Cucinelli, and Pratesi Linens — all were either exclusive to Toronto or Canada. Ira Berg opened Canada’s first Donna Karan/DKNY boutique and the store even had a small cosmetics area, and was the first store in Canada to carry the popular Kiehl’s line.

Ira Berg was the launch partner of Louis Vuitton in Canada, with stores in Toronto (110 Bloor Street West), Vancouver (Holt Renfrew), and Montreal (Ogilvy) between 1986 and 1995.

The Berg family also owned two Benetton stores, some of the first in Canada, before the Italian fashion chain grew to more than 50 stores coast-to-coast (all have since closed, sadly).

Ira Berg was known for its trunk shows, fine tailoring (with 16 seamstresses on staff), and was the first store in Toronto to open an in-store coffee bar, and it even had a popular hair salon called “The Private World of Mary Tripi.”

A tough economy in the 1990s and changing fashion tastes resulted in Ira Berg going bankrupt and closing in 1998. While we mourn the loss of Ira Berg, something good came of it — StyleDemocracy! Russel and son Michael learned how to create a business that clears out excess inventory, and it’s been successful to this day. 

Featured image: Wikimedia Commons

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The Canadian retail industry in 2019 is in for a shakeup as competition increases and consumers struggle with personal finances. What is likely to result is more store closures in Canada, though there’s also some good news on the horizon.

International retailers are entering Canada like never before, as the world becomes “smaller” and brands expand globally. In 2017, more than 50 international brands entered Canada by opening stores, and more than 30 opened in 2018, according to Retail Insider’s research. That means the share of the Canadian “retail pie” for existing retailers is potentially shrinking and worse, many Canadians are drowning in debt and the world is increasingly uncertain.

We predict about 30 international retailers will enter Canada in 2019 by opening stores, if not more.

Brokerages and landlords are now traveling the world seeking out the “best” retailers to bring to Canada, and Asia and Europe are particularly being targeted. What that means is we may see more retailers such as UNIQLO and MUJI enter Canada this year, which is exciting news for shoppers.

CNW Group/MUJI Canada

As well, the brands that have entered Canada over the past several years continue to open more stores — eyewear retailer Warby Parker, for example, entered Canada via Toronto in 2016 and this month it will open its first store in Vancouver. From luxury brands to fast-fashion and discounters, shoppers will have even more options to shop at physical stores as well as on the web, as brands open their own Canadian e-commerce sites to capture online shoppers.

At the same time, consumer debt in Canada is at all-time highs, so many of us have less discretionary money to spend on non-necessities. World events are also concerning — Donald Trump is raising concerns as he makes reckless decisions such as shutting the US government down for a “border wall,” and the recent arrest of global tech giant Huawei’s CFO in Vancouver has damaged Canada’s relations with China. People tend to spend less when they’re stressed and things are otherwise uncertain — and while they’ll still spend money on necessities such as groceries, a new pair of shiny shoes can wait.

Consumer spending patterns are changing.

We’re spending more on “experiences,” be it a meal at a restaurant, or a trip to somewhere warm (sounds nice right about now). We’re also spending more on technology — prices for Apple products continue to rise, for example, leaving little money left for other things.

There’s some good news, though. Over the past few years, retailers and developers have been working on some exciting projects that will make Canada a more interesting place to shop. That includes new retailers as well as food-and-beverage options. “Food halls” and “food markets” will take Canada by storm in 2019 and we’ll see the trend continue into 2020 and beyond. In the fall of 2018, Canada’s first mall-based “food market” opened at Upper Canada Mall in Newmarket (north of Toronto), and this year, several others will be opening including at Galeries de la Capitale in Quebec City, as well as at the massive Square One mall in Mississauga.

Toronto’s Bloor-Yorkville will be getting one of the most highly anticipated food markets when this fall, Eataly will open a three-level, 50,000 square foot “grocerant” at the overhauled Manulife Centre — think of it as mix between a grocery store and a really cool restaurant. The place is expected to be mobbed from day one and will add much needed foot-traffic to Bloor Street, which is quieter as people flock to Yorkdale and CF Toronto Eaton Centre.

Courtesy of The McEwan Group

This month, as well, Bloor-Yorkville will see the opening of a McEwan grocery store at 1 Bloor Street East, which is anchored by an impressive glass-enclosed Nordstrom Rack store. Nearby, Aritzia will be opening a massive flagship store at the Holt Renfrew Centre, and Holt Renfrew itself is seeing major renovations that will be completed in 2020. Manulife Centre will unveil new spaces for Birks and Over the Rainbow Jeans, as well as several other retailers.

Shopping Centre landlords have been investing in their malls like never before, and this year will see more new features as malls compete for customers as well as new tenants. Toronto’s Yorkdale Shopping Centre, for example, has seen heavy investments over the past decade and this year, it is expected to hit $2-billion in annual sales and to sell in excess of $2,000 per square foot yearly. Canada’s top malls, for the most part, continue to see year-over-year gains in sales numbers, according to the most recent Retail Council of Canada Shopping Centre Study.

Malls are also adding entertainment, such as VIP movie theatres and concepts such as “The Rec Room” (which is essentially a Chuck-E-Cheese’s for adults). Fancy malls are adding valet parking, and value-priced centres are adding new retailers that offer savings.

While the average person is struggling, rich Canadians continue to get richer.

Image: Alina Prajapati

What that means is we’ll be seeing even more luxury stores in Canada this year. In Toronto, the Yorkdale Shopping Centre’s Holt Renfrew store will unveil new boutiques for Gucci, Fendi and Dior, and Balenciaga will open across from it (watch for a few other big announcements, including a flagship Louis Vuitton). In Toronto’s Yorkville, watch for flagships to open for Dior, Brunello Cucinelli, Versace, and Jimmy Choo, and brokers we’ve spoken with say others are on the way. In Vancouver, high-spending locals and tourists (many of Asian background) are spending a fortune at standalone luxury stores as well as at Vancouver’s Holt Renfrew, which is #1 in the company. We can’t wait for Hermes to open a two-level flagship at the southwest corner of West Georgia Street and Burrard Street. Wealthy Montreal shoppers will be in for a treat as some new luxury brands open in the massive 250,000 square foot “Holt Renfrew Ogilvy” (which will finally be completed in 2020, though some of it opens this spring). Luxury is also expanding in Alberta — CF Chinook Centre in Calgary recently added a Louis Vuitton boutique, and West Edmonton Mall will be adding several standalone luxury stores that will be announced publicly this spring (spoiler, Louis Vuitton will be one of them).

For those of us with less money, off-price shopping continues to expand in Canada as well.

Nordstrom Rack opened its first six Canadian stores in 2018, and more are on the way this year as Nordstrom Rack plans to eventually operate as many as 15 stores in this country. TJX Group’s Winners, HomeSense and Marshalls continue to open stores rapidly, which is being made possible in part as landlords repurpose boxes formerly housing Target and Sears stores (both of which exited Canada).

Instagram/@lexiluxe_finds

Plenty of more off-price retailers will be on the way. Remember BiWay? Co-founder Mal Coven says he’s opening a revived concept called “BiWay $10 Store” and the first location will be opening in August in a strip mall on Bathurst Street in Toronto. Many more could follow if the concept takes hold. Dollarama continues to open stores and Japanese-themed retailer Oomomo will open several this year as well — watch for a 25,000 square foot Oomomo flagship to open in Markham this spring, which will be its largest to date.

For those looking for some of the best bargains, there’s warehouse sales. Imagine thousands of items deeply discounted in a huge space — you can get an entire wardrobe for a LOT less than you’d pay at a full-priced retailer. Companies like StyleDemocracy host warehouse sales across the country, and the company will be doing even more as shoppers seek out bargains. You get an extra 10% off if you’re a “StyleDemocracy Insider” — sign up for big savings (editor, add hyperlink for subscription).  

Amazon continues to gain market share in Canada, and Amazon Prime memberships are way up.

While online shopping represents less than 10% of the Canadian retail market, it’s growing much faster than sales at physical stores, signaling a shift as well as challenges and opportunities. Loblaw recently introduced a loyalty program similar to Amazon Prime where groceries can be delivered free of charge, and we predict others will quickly jump on the bandwagon.

Speaking of grocery retail, it’s never been more competitive than it is now. Ottawa-based chain Farm Boy was recently acquired by Sobeys, following several other mergers in the margin-tight grocery industry. Concepts such as Organic Garage, Nations Experience and Filipino concept Seafood City continue to open stores rapidly. At the same time, shoppers are looking to meal kits for dinner — that is, if they’re not ordering via Foodora or Uber Eats. We predict grocery delivery will be huge in 2019 while at the same time, online grocers such as Fresh City Farms open physical stores in Toronto.

We also predict some stores will be closing in Canada this year.

Image: Amanda Phuong

We’re told that several US chains are looking at pulling out of Canada this year, and several Canadian retailers could declare bankruptcy. Things are changing quickly — this month, for example, Town Shoes and Jean Machine will close all of its stores while Lowe’s will shutter more than 25 stores in Canada, most of which are branded ‘Rona’.

And finally, there’s cannabis. Despite being legalized in Canada in October of 2018, retailers are finding it difficult to keep it in stock. While Alberta has quite a few cannabis retail locations, Ontario won’t be getting any until April of this year. Even then, only 25 will be opening in Ontario in April and the government will be holding a lottery to determine who’s one of the lucky winners. If lineups at other cannabis retailers in other provinces are any indication, supply will continue to be an issue unless a lot more becomes available.

Featured image: Instagram/ @flips4evr

Minimalist Japanese retailer MUJI has announced that it will open a fourth store in the Greater Toronto Area (GTA) this summer, as it plans to eventually operate up to 20 Canadian stores by the year 2020.

MUJI entered the Canadian market in November of 2014, when it opened a 4,400 square foot store in downtown Toronto’s ‘The Atrium’, at 20 Dundas Street. A 5,225 square foot MUJI subsequently opened at Mississauga’s Square One in November of 2015, and in October of 2016, a 6,375 square foot store opened at Toronto’s Yorkdale Shopping Centre.

This summer, MUJI will open its fourth GTA location at CF Markville, an enclosed shopping mall in Markham. The store will span in excess of 6,000 square feet, and will boast a prominent corner location near entrance 10 on the mall’s main level, across from Roots, The Gap, and Forever 21, and next to the mall’s Joey restaurant, as per the floor plan below.

To Read More Head Over to Our Retail Contributors @Retail-Insider

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Upscale and trendy New York City-based eyewear and accessory brand Illesteva has opened its first Canadian location at 829 Queen Street West in Toronto. It’s the company’s first freestanding international store, and also the largest in the company to date.

The two-level store was designed by Toronto-based MSDS studio, and it features the brand’s full eyewear collection as well as leather goods, umbrellas and a ‘build your own bar’.

Illesteva is located in an area considered to be one of the ‘hippest’ in the world, joining a number of other optical retailers in the area, including Cutler & Gross and Warby Parker, the latter of which opened its first Canadian store nearby last summer.

“Toronto, specifically Queen Street West, is a natural fit. While we’ve expanded our retail division quite rapidly, we always look to areas with a real sense of community and history. Queens West has seen a lot of changes over the last few years, but you’ll still see many locally-owned shops, cafes and restaurants as you walk down the street,” said Illesteva CEO Daniel Silberman.

To Read More Head Over to Our Retail Contributors @Retail-Insider

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Jean Machine Will Now Remain Open Under New Ownership

Toronto-based multi-brand denim and fashion retailer Jean Machine has found a buyer and as a result, stores will remain open and employees will keep their jobs. Jean Machine sought bankruptcy protection in early January of this year.

Pacific West Commercial Corporation, an affiliate of Vancouver-based Stern Partners Inc., announced yesterday that it had acquired the business and assets of Jean Machine and that the retailer will continue to operate as an independent entity. The new owner has also offered jobs to nearly all of Jean Machine’s employees. Jean Machine currently operates 31 store locations, all in Ontario.

“We are excited about the long-term potential of Jean Machine and the denim and casual apparel market in Canada,” said Ronald N. Stern, President of Stern Partners. “We are confident in the underlying business and believe that, with Jean Machine’s liquidity issues behind it, the business is well-positioned for success. We are excited about growing the business with the company’s valued employees, customers, and suppliers.”

To Read More Head Over to Our Retail Contributors @Retail-Insider

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Sears Canada has launched a new designer brand off-price concept called ‘The Cut’, which features designer brands at 30% to 60% off regular prices.

Sears will carve out about 20,000 square feet in each Canadian Sears store for its new ‘The Cut’ off-price division. The Cut will be evenly split between apparel and home goods. While The Cut’s planning, marketing and back-office operations are based in Toronto, Sears has also added a team of seven buyers in New York City.

The Cut officially launches in Canada on April 1, and it will eventually be rolled out to all 94 Sears Canada locations.

To Read More Head Over to Our Retail Contributors @Retail-Insider

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German athletic and fashion brand Adidas is launching a uniquely Canadian store expansion that will include new ‘experiential’ locations, renovated and repositioned existing stores, as well as a new focus on hockey-related uniforms and team gear in select locations. Adidas has partnered with the National Hockey League (NHL) for a period of seven years and beginning with the 2017-18 season, Adidas will become the official outfitter of the NHL’s on-ice uniforms, as well as the official supplier of licensed apparel and headwear.

John Summers, Vice President of ‘direct to consumer’ for Adidas Canada, explained that Adidas has three types of stores in Canada — ‘sport performance’ branded stores, outlets, and fashion stores. The company’s outlet stores have seen tremendous growth over the past several years, prompting the company to further expand and refocus its sport performance-branded stores in Canada’s largest cities, as well as its fashion stores which operate under the Adidas Originals nameplate…

To Read More About Adidas, Head Over To Our Retail Contributors @Retail-Insider

The iconic Hard Rock Cafe at 279 Yonge Street in downtown Toronto has been leased to Shoppers Drug Mart, according to sources. It’s the first time in over 35 years that the retail space has been available for lease.

The 22,000 square foot multi-level retail space has considerable exposure on busy Yonge-Dundas Square, which many consider to be Toronto’s answer to New York City’s Times Square. According to CBRE marketing materials, the site offers exposure to over 60 million potential customers, annually.

Hard Rock’s lease on the 22,000 square foot property expires in June of 2017. The asking rent for the space was $2 million annually — about twice what Hard Rock Cafe was paying, according to a source. The space includes a ground floor of 7,503 square feet, a second floor of 7,126 square feet, and a lower floor of 7,373 square feet. There is also a third-floor office space within the building. The site includes a frontage of about 60 feet along Yonge Street, as well as more than 125 feet facing onto Dundas Square, which is animated with various activities throughout the year….

To Read More, Head Over to Our Retail Contributors @Retail-Insider

Ivanhoé Cambridge has officially announced the opening date for its new 100-store Outlet Collection Winnipeg, which will be Canada’s second pure outlet centre West of Ontario. Hiring is ongoing for various retailers, and there will be a job fair this month to fill various positions.

The enclosed 400,000 square foot centre opens to the public on the morning of Wednesday, May 3, and Ivanhoé Cambridge has confirmed the first group of 45 retailers. About half of the new stores will be new to the Manitoba market. Outlet Collection Winnipeg will also feature six anchor tenants, including Saks OFF 5TH*, Old Navy, F21 Red by Forever 21*, DSW Designer Shoe Warehouse* and Winners. Other retailers will include:

To See The List of Retailers Included in the Outlet Collection, Head Over to Our Retail Contributors @Retail-Insider