It’s been a sad year for retail in our home and native land, as we’ve kissed once retail staples – some which were pretty much Canadian institutions – goodbye.
If last year’s loss of Jean Machine in shopping malls across the country wasn’t a tough enough pill to swallow (even just for the nostalgia factor), other beloved stores have met a similar fate.
After a long run as a staple go-to discount footwear retailer, in February 2019, Payless ShoeSource filed for Chapter 11 Bankruptcy for the second time in two years. It didn’t take long before the brand began closing up shop one North American location at a time, including 248 stores across Canada. It’s natural to question whether the emergence of other affordable – yet elevated – spots to score shoes like, Nordstrom Rack and Saks Off Fifth, played a role.
In August, longtime go-to value-priced retailer Zellers announced the closing of its last two Canadian stores left standing – a move that came as no real surprise to everyone who had long ago switched to Walmart and others. The brand faced unprecedented competition among value-priced retailers and had sort of lost its shine in Canada. If you have a soft spot for Zellers, you can still hit the Etobicoke location until January 2020.
This past September, fast fashion retailer Forever 21 filed for Chapter 11 Bankruptcy Protection, announcing plans to close 350 stores worldwide, including all Canadian locations. The news came after the brand’s sales fell from $4.4 million in 2016 to $3.3 billion in 2018. Forever 21 has lagged behind its competitors in the sustainability department, is no longer the “fastest” in the fast fashion game, and has experienced no shortage of legal woos.
Another homegrown retailer to bite the dust in 2019 was London, Ontario-based retailer Green Earth, who announced that it would close down all 29 locations across Ontario after nearly 30 years in business. It’s closure is telling of the times: the store sold unique collectables, jewelry, and knit-knacks and took a major blow with the growing prominence of online shopping, when customers no longer needed to hit the mall for such finds.
HBC-owned home giant Home Outfitters was another victim to the retail apocalypse in 2019. In February, the parent company announced it would close the doors at all 37 Home Outfitters locations across Canada. Though popular, the 20-year-old company was relatively short-lived in the retail world compared its shuttered-in-2019 counterparts.
Once go-to children’s wear brand Gymboree closed all of its Canadian locations after a solid 40 years in business. Gymboree kicked off 2019 by successfully filing for Chapter 11 Bankruptcy after doing so for the first time in 2017 and managing to stay in the game for a little while longer. According to industry experts, fact that Gymboree Group’s own collection of brands were competing against each other contributed to the downfall of the brand. Most recently, however, Gymboree announced plans for a 2020 comeback.
We started 2019 knowing that Town Shoes – a footwear brand exclusive to Canada – would soon be a thing of the past. By the end of January, U.S.-based shoe company DSW had closed all 38 of its stores across Canada. According to a spokesperson for the brand, the decision was made after a 90-day review that analyzed Town Shoes’ historical performance, competitive positioning, and future requirements.
While David’s Shoes was solely a Toronto and Ottawa institute for the cities’ fashionable footwear lovers, it’s relevant because it became iconic in Toronto in its 60-year run. Sadly for the brand (but not a bad thing for babes on a budget, who flocked to the store to scoop up the deals), it was placed on receivership in the summer and liquidated its five stores before closing up shop for good. Rising rents and increased competition in the designer footwear space are thought to have contributed to its demise.
Most recently, in December 2019, Montreal-based Bentley Leathers announced a plan to liquidate and close 90 underperforming stores in Canada as part of a restructuring agreement. The retailer will, however, continue to operate its more elevated concept stores. The fate of those remains TBD; after all, who really wants to lug a suitcase home from the mall when you can have it delivered to your front door?
Earlier this fall, mom-to-be and new mom spot Motherhood Maternity announced the closing of all stores across North America, including 29 Motherhood Maternity and Destination Maternity stores in Canada. The announcement came after Destination Maternity filed for Chapter 11 bankruptcy in the U.S. and after the company’s name, website, and operating assets were acquired by Marquee Brands LLC.
To be honest, many of the shuttered spaces are the result of good, old-fashioned shifts in consumer behaviour and growing competition. More than ever with the arrival of massive American retailers in Canada in the past decade and the availability of brands from around the world in just a few clicks. Canadian-based retailers face intense pressure to keep up to their American counterparts and their American counterparts face intense competition with one another.
Whether than means more interactive features, incorporating more tech, hosting in-store events, and influencer collaborations. In the meantime, it’s safe to say that more retailers are on their way out as we head into the fresh decade (Lowes and J Crew, we’re looking at you).
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Throughout the years, the Canadian retail landscape has seen its fair share of ups and downs.
From the launches of major American beauty chains to the closures of popular brands, 2019 saw many impactful events that reshaped how Canadians shop.
In 2019, there were two Zellers stores still open in Canada: one in Ottawa and another in Etobicoke. With the Ottawa location gearing up to shutter and the GTA location slated to close in January 2020, StyleDemocracy went inside the store to give readers one final look around. Continue reading.
Dollarama has seen prices for items rise up to $3 or $4, something not all customers have been happy about. In 2016, the Montreal-based chain made a move towards better quality products. Using toothpicks as an example, Dollarama’s Chief Executive Officer Larry Rossy said, “it’s not so much that we can offer 500 toothpicks, but it’s more if we offer 200 very good toothpicks that the customer will be happy with, I think that’s what counts at the end. It’s a culture that we’re trying to instill in everyone. Again, it’s not quantity but quality that counts.” But now the company is singing a different tune. Continue reading.
Long-standing Toronto retailer, Davids Footwear, was placed in receivership after 60 years of business in the summer of 2019. For those unaware, receivership is when a “receiver” is appointed by a creditor to take over all of the assets, undertakings, and properties from the debtor. In the retail world, a receiver will host liquidation sales so that creditors can recoup their money. Continue reading.
Ulta Beauty is expected to open its first Canadian stores in late 2020 or early 2021. This is huge news for beauty lovers across the country. The Illinois-based beauty brand is similar to Sephora, but has larger stores and a wider range of prices, services, and products. Ulta carries everything from price-friendly favourites like Maybelline and Revolution Beauty, to higher end exclusives like Tarte Shape Tape and Kylie Cosmetics. Continue reading.
At the beginning of 2019, Morphe opened its first Canadian location in Mississauga at Square One Shopping Centre. To kick off the launch, the L.A.-based beauty brand pulled out the big guns, inviting YouTube beauty guru for the official ribbon cutting event. Of course, chaos ensued. Take a peek at the response the opening saw or inside the store.
Who doesn’t love dollar stores? In this economy, finding anything that’s a bargain is pretty amazing so when we see something available for cheap, it’s basically love at first sight. Now, there’s a new Korean dollar store in town and we’re ready to get shopping. Korean-inspired dollar store, Mumuso has just opened its first location in Toronto at North York Centre. Continue reading.
Over the past handful of years, we’ve seen more and more American companies infiltrate the Canadian market. We’ve seen in it retail, and we’ve seen it with many fast-food and restaurant chains as well. Notable eateries like The Cheesecake Factory, Cauldron Ice Cream, and Chin Chin have crossed the border. In the upcoming years, Toronto will also see a Nobu open their doors. But one of the most talked about openings has easily been fast-food chain Chick-Fil-A. Continue reading.
Gymboree has filed for Chapter 11 bankruptcy for the second time in two years. In January 2019, it was announced that the children’s wear retailer was successful in its filing for Chapter 11 bankruptcy. The company plans to close all of its Gymboree locations in Canada and the United States, as well as its Crazy 8 brand in the United States. Continue reading.
If you’re anything like us and don’t like wasting your time and money while shopping, you’ll be happy to know that Canada’s largest dollar store chain, Dollarama, launched its online store in January 2019. That means that starting today you can stock up on hundreds of Dollarama products from the comfort of your home and get them delivered right to your doorstep. Continue reading.
If your budget won’t allow you to travel all the way to Italy, then a visit to Canada’s first Eataly location at Bay and Bloor, in the newly renovated Manulife Centre, is most definitely the next best thing. Eataly Toronto opened in November 2019 and ever since, the 50,000 square foot space has been chock full with foodies alike who are filled to the brim with excitement. Continue reading.
This was another big story for Canadian retail 2019. At the end of September 2019, Forever 21 announced that it will be closing all of its Canadian locations. 44 Forever 21 stores closed across the country, including locations in Toronto, Vancouver, Edmonton, Montreal, and more. According to Retail-Insider, Forever 21 closed close to 880,000-square-feet of retail space in Canada. Continue reading.
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Over the past few years, Canada has seen some many once-beloved stores shutter locations or shut down business for good.
Just last year, we said goodbye to retailers like Bombay Company and Bowring Brothers, Nine West, and Jean Machine to name a few. And the retail apocalypse has already claimed many victims in 2019.
As we’ve done in past years, we are keeping a watchful eye on the retail store closures and bankruptcies that affect the Canadian market.
Note: This article will be updated as more stores and brands announce filings and closures.
Gymboree filed for Chapter 11 Bankruptcy for the first time in 2017. And just when the retailer thought it had escaped trouble successfully, in January 2019 the retailer successfully filed for Chapter 11 Bankruptcy once again. Industry experts blamed the children wear brand’s demise on the fact that Gymboree Group’s own collection of brands were competing against each other. After 40 years in business, Canadians will be saying goodbye to Gymboree for good as they shutter all Canadian locations.
In February 2019, Payless ShoeSource filed for Chapter 11 Bankruptcy for the second time in two years. But this time around, instead of launching a turnaround plan, the discount shoe retailer announced that it would be closing all North American locations including 248 stores across Canada.
For shoppers, H&M’s announcement of 160 store closures across the globe came as a shock. However for those in the industry, it was a decision that had to be made. The fast fashion retailer fell victim to inventory bloating, forcing H&M to slash prices in order to move product. In 2018, the conglomerate shuttered its Cheap Monday brand. And in February the company announced that it would be shuttering locations over the span of the year. Fortunately for H&M fans, the company will continue to open stores at the same time with a net of 175 new stores — however, it’s rumoured that Torontonians might be saying goodbye to the retailer’s Bloor St. location.
In February 2019, famed Canadian retailer Hudson’s Bay announced that it would be shuttering all Home Outfitters locations — 37 stores across Canada. In the same announcement, HBC announced that it would be analyzing its Saks Off Fifth locations and shuttering a number of its stores in the U.S. While no Saks Off Fifth closures have been announced in Canada, one thing’s certain: the retail landscape is ever-changing and we never know which retailer the apocalypse will claim as its next victim.
After years of struggle and constant markdowns, it came to no surprise when Gap announced massive closures were coming to North American stores. In March 2019, the company shared that it would shutter 230 stores in the U.S. and Canada. The mall staple also announced that it would be separating from sister brand Old Navy in order to better focus on both brands.
Over the years, Victoria’s Secret has seen a decline in popularity, with publishers like Forbes declaring that the company has “lost its sexy.” In March 2019, the Victoria’s Secret announced that it would be closing 53 stores across North America, up from 30 stores closed in 2018. While it has not been announced whether the decision will affect Canadian shoppers, we can confirm that we haven’t seen the end of the brand yet. With two new CEOs, the company plans to turn business around.
In March 2019, Diesel jeans filed for bankruptcy. The company attributes the decision to falling sales, a failed turnaround, and expensive leases, as well as instances of cyber fraud and theft. But unlike other retailers and brands in similar positions, Diesel will not be shuttering stores. Instead the brand has a three year turnaround plan which includes reimagining current stores to lower operational costs and better marketing.
In March, Ontario-based Green Earth announced that it would be liquidating all 29 of its locations, offering discounts of 40-80% on all merchandise which includes candles, jewelry, and many more giftables. The company, which has been operating since 1990, felt pressure from problems similar to many stores facing problems: reduced mall traffic and growing competition. Green Earth filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act on March 4, 2019.
Though it launched in Canada with great success, the American retailer has been quietly closing stores across the country over the past few years. The most recent store closures include a number of Toronto-area locations, as well as CF Chinook Centre in Calgary. Retail Dive reports that executives at J.Crew will “continue to rationalize its footprint” and plan to close 20 J.Crew and factory stores by the end of 2019. With stores in Canada slowly disappearing, it will be interesting to see what’s ahead for the brand.
Earlier in 2019, Forever 21 closed its Yonge and Dundas flagship store, which didn’t seem like a big deal considering the brand already had another location inside CF Toronto Eaton Centre. But at the end of summer, word that the Los Angeles-based fast fashion retailer was struggling started spreading. At the end of September, the retailer announced that it would be closing all 44 of its Canadian locations and exiting the country altogether.
At the end of November 2019, home improvement chain Lowe’s Canada announced that it would be shuttering stores across Canada in order to improve overall performance. The closures will affect 34 underperforming Lowe’s and Rona stores.
Another retailer that announced closures in November 2019 is Montreal-based Bouclair. The home decor retailer filed notices of intention to make a proposal under the Bankruptcy and Insolvency Act, and has been acquired by Alston Investment Inc. Of Bouclair’s total locations, 60 will remain open, while 29 across Canada will close.
In December 2019, Montreal-based Bentley Leathers successfully entered a restructuring agreement, which includes the plan to close 90 underperforming stores across Canada. While underperforming stores are closing, the retailer will continue to open its concepts stores, which are sleeker and more modern.
After Destination Maternity filed for Chapter 11 bankruptcy in the U.S. in the fall of 2019, the company’s name, website, and operating assets were acquired by Marquee Brands LLC. However, all stores were announced to close across North America, including 29 Motherhood Maternity and Destination Maternity stores in Canada.
Featured image: Instagram/@kat_mcewen
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This year, Canada’s retail landscape has seen its fair share of ups and downs. While new retailers have been steadily moving in, we’ve also seen a number of once-popular players exit the retail scene.
The list of 2019 bankruptcies and store closures is long, but if we’ve learned anything from retail history, it’s that bankruptcy doesn’t always mean the end of a company.
While successful comeback stories are rare, in the past few years alone, we’ve seen American Apparel, Bebe, and Bi-Way resurrect from what we thought was the dead. And now, one more retailer is getting ready for a comeback.
For those who don’t remember, in early 2019, the childrenswear retailer filed for Chapter 11 bankruptcy for the second time in two years and closed all of its Canadian locations. The retailer attributed its downfall to its collection of apparel brands that were “cannibalizing” each other.
But the retailer has since been bought out by one of its competitors — The Children’s Place.
The plan for the Gymboree comeback is to relaunch in early 2020 with a new and improved website. The brand will also be shoppable in real life, with shop-in-shop locations within over 200 select The Children’s Place stores in the U.S. and Canada. Shoppers can also expect a new loyality program, plus free returns and shipping with no minimum spend online.
To celebrate its upcoming relaunch, the brand will be giving away $2,500 in Gymboree gift cards per week. To find out how to enter, visit Gymboree.com.
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Earlier this year, we made a prediction about 5 retailers that could be in trouble in the future, and unfortunately, one of the retailers on the list just filed for Chapter 11 bankruptcy. On the list, among the retailers we predicted could be at risk included Topshop, GNC, J.Crew, and Gymboree.
Each retailer faces a variety of different issues, from scandals and increased competition to store closures and overshadowing debt. In some cases, brands are able to overcome these problems, whether it be through new leadership, acquisition, or a refocused mission. But sometimes, even after major changes, the problems persist.
Instagram/@gymboree
Just this week, it was announced that the children’s wear retailer was successful in its filing for Chapter 11 bankruptcy. The company plans to close all of its Gymboree locations in Canada and the United States, as well as its Crazy 8 brand in the United States.
The news comes just two years after the company was able to successfully escape bankruptcy in 2017. In its first go, Gymboree closed and liquidated 330 underperforming store, helping them to shed around $900 million in debt.
“The company has worked diligently in recent months to explore options for Gymboree Group and its brands, and we are saddened and highly disappointed that we must move ahead with a wind-down of the Gymboree and Crazy 8 businesses,” Shaz Kahng, the Gymboree Group CEO said in a press release. “We have tremendous appreciation for the hard work of our dedicated employees and their commitment to Gymboree Group and our customers. We are also incredibly grateful for the many years of support by our vendors.”
Industry analysts attribute Gymboree’s downfall to its collection of children’s apparel brands that were “cannibalizing each other.”
Instagram/@gymboree
With around 900 stores across the globe, Gymboree will be closing them all. However, they will continue to operate the stores and e-commerce sites while they work on the going-out-of-business sales plan.
After over 40 years in business, it’s sad to see another long-standing retailer exit Canada. But until the company closes its doors for good, we’ll continue to support Gymboree during the liquidation sales.
Featured image: Square One
With retailers shuttering stores left, right, and centre and a retail apocalypse looming over the industry, shoppers are at risk of losing their favourite brands.
In some cases, looks can be deceiving. Some brands are plagued by misconduct scandals, tarnished reputations, or seemingly never-ending debt.
Instagram/@_sharonashley
Back in 2011, Hudson’s Bay partnered with Topshop to launch the British high street fashion brand in Canada and it was greeted with much excitement. But as the years go on, competition grows and scandals arise. Analysts think the once-desirable brand could be at risk. Last year, Topshop’s owner Sir Philip Green was hit by multiple allegations of sexual misconduct, resulting in a boycott of the brand and Beyoncé to remove her Ivy Park label from stores.
In addition, one area where Topshop excelled is now being met by loads of competition: its ability to churn out runway-inspired clothing before anyone else. With the rise of social media, brands have quick access to high fashion and celebrity-inspired trends faster than ever, and retailers like Fashion Nova, Boohoo, and Forever 21 are offering similar styles for more budget-friendly prices. In the past couple of years, Topshop has seen store closures across the globe. And in 2018, the brand suffered from plummeting sales.
While we don’t know what the future holds for Topshop, Canadian locations remain open. But it is interesting to note that last year, Hudson’s Bay shareholders pushed to “better utilize” store spaces by selling the company’s real estate and also reported a net loss of $124 million at the end of 2018.
Instagram/@vestiphobianewyork
For the past few years, J.Crew has been quietly closing stores across Canada, including a Toronto location that was deemed to be one of the brand’s most profitable. Initial excitement of the retailer’s launch in 2011 helped J.Crew gain some momentum, but unfortunately, a past decision still haunts the brand.
With help from TPG Capital and Leonard Green & Partners, J.Crew was able to take the company private in 2011. However, since the $3 billion leveraged buyout, the retailer has been drowning in debt. Last year, the Washington Post reported that J.Crew had nearly $2 billion in debt.
J.Crew sales have tumbled for more than three years, and in addition to the debt, the company’s merchandise suffers from poor design and inconsistent quality, resulting in once-loyal shoppers abandoning the brand. With only three full-price stores left in the greater Toronto area, it will be interesting to see what’s ahead for the brand.
Twitter/@CoresightNews
Gap Inc. as a whole may not be struggling, but signs show that its namesake brand is. Near the end of 2018, the brand told analysts that it would be closing hundreds of stores across the globe. And this isn’t the first time the brand has done massive closures — back in 2015, Gap closed 175 stores across North America.
But while Gap struggles to find brand loyalty and a captivated audience, Gap Inc.’s lower-priced brands are flourishing. In fact, GlobalData Retail Managing Director Neil Saunders told Retail Dive that Old Navy, under the Gap Inc. umbrella, continues to attract family shoppers and will actually add new stores.
Analysts believe that Gap’s issue lies in what it sells. “Gap’s issue has always been about product and, by extension, price. They have never really got to grips with producing a compelling range that is interesting to customers and is worthy of a higher price point.”
Overall, Gap Inc. is in a reasonable state, however, if Gap isn’t able to pull itself out of its slump, analysts believe it will continue to drag the company down.
The vitamin and supplement retailer has been a mall staple for time, but back in 2018, many media outlets predicted a rocky future for the brand. With growing competition — both Costco and Walmart are able to sell bulk supplements at lower costs — and lawsuits that questioned the efficiency and safety of GNC’s supplements, GNC’s popularity has dropped.
In the spring of 2018, the retail chain announced it would be closing 200 out of the 3,385 stores it operated across Canada and the United States. According to PSFK, the company’s revenue has been on the decline for 11 consecutive years.
As of right now, the company is planning a turnaround, with the invention of a new experiential store format. The new store is said to be a one-stop shop for health and wellness needs, and will give customers a more customized experience with additions such as a Smoothie Lab, InBody Body Composition Analyzer, and free, in-house consultations by registered dietitians.
However, analysts aren’t convinced that a few new additions will help GNC, which suffers from a massive pile of debt — a whopping $1.38 billion in 2018.
Facebook/Northland Shopping Centre
After successfully pulling itself out of bankruptcy in 2017, the children’s wear retailer is struggling again. According to the Wall Street Journal, Gymboree Group Inc. is allegedly “shopping for a bankruptcy loan as it prepares for a second Chapter 11 filing.” The company is allegedly seeking a bankruptcy loan to keep some stores open while searching for a buyer.
If Gymboree is successful in its filing, it’s likely that shoppers will see the brand close the majority of its 900 stores across the globe, including eight locations in the greater Toronto area.
Analysts attribute the company’s downfall to its collection of children’s apparel brands that were “cannibalizing each other.” Gymboree recently shuttered its Crazy 8 outposts, but continues to operate Gymboree and Janie and Jack stores for now.
Featured image: Instagram/@jnetibles
Every day it seems like another chain retail store is struggling to stay afloat in Canada. We’ve seen some of our favourite retailers close their doors so far in 2017. Whether the closure is a result of increased competition or aggressive expansion, we are disappointed when we lose beloved brands and employees are put out of work. Keep reading for a list of all of the major retailers that closed locations in Canada this year (so far).
At the start of 2017, struggling HMV announced the closure of all of its stores. While we were sad to see this music and movie mecca close, it’s understandable that the retailer could not compete against endless streaming services. Since closing 102 stores in April 2017, at least 70 Sunrise Records stores have popped up in former HMV locations.
In March 2017, ladies apparel retailer Bebe announced the shutdown of 170 stores (including eight Canadian locations,) in an effort to reduce expenses and focus on online sales. Given the sameness of this women’s fashion retailer, was anyone really disappointed to see Bebe close their doors?
We were surprised in March 2017 when upscale women’s fashion apparel and accessories brand BCBG announced the closure of all 51 Canadian locations. Fashion-forward BCBG ladies wear can still be purchased through major department stores including Hudson’s Bay and off-price retailers like Winners.
May 2017 saw the demise of Express as they announced the closure of 17 Canadian locations. The Canadian marketplace proved to be all too difficult for Express, as they decided to not only close stores but also discontinue Canadian operations through its subsidiary, Express Fashion Apparel Canada.
In July 2017, children’s retailer, Gymboree announced the closure of 350 stores in an effort to restructure after filing for Chapter 11 bankruptcy, like so many other struggling brands.
Starbucks announced in July 2017 that it would be closing all 379 Teavana stores (mostly located in shopping centres.) Landlords and employees are angry! Lucky for customers, Teavana products can still be purchased at any Starbucks location.
No retailer (or e-tailer) is safe… In January 2017, Shoes.com announced the shutdown of all operations including two physical retail stores in Vancouver and Ontario. While we weren’t surprised to see this brand fold (given the heavy competition in the footwear market,) it is impressive how long they dominated the online shoe market for.
Sears Canada is closing forever. After serving Canadians since 1953, Sears Canada announced in October 2017 the closure of all Canadian operations and the start of liquidations sales across the country. Attempts to restructure and reinvent the Sears brand over the past 18 months failed miserably, leaving Sears with no choice but to close all remaining full-line Sears, Sears Home and Hometown locations.
Featured image: Cristina Avila
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