Throughout the years, the Canadian retail landscape has seen its fair share of ups and downs.
From major launches and comebacks, to the closures of longstanding, heritage brands, 2018 saw many impactful events that reshaped how Canadians shop. Take a peek at some of the most important stories from this year below.
1. Toys “R” Us Is Closing U.S Stores — Can Canadian Stores Survive?
All of your favourite childhood stores have been slowly closing. Toys “R” Us announced on Wednesday that is will close 180 stores in the United States. According to the Toronto Star, while the president for Canadian Operations reassured customers that its business as usual in Canada, many insiders believe that Toys “R” Us won’t last. Continue reading.
2. Management At Pacific Mall “Deeply Disturbed” To Learn Counterfeit Goods Are Being Sold
Instagram/@paul_sherwood_
News broke that Pacific Mall in Markham, Ontario is one of the biggest offending retail locations when it comes to the distribution of counterfeit goods in North America. In a press release from the mall, management said they were “deeply disturbed and disappointed” by the news. Continue reading.
3. Once-Popular Brand Mexx Is Set To Make A Canadian Comeback
Instagram/@mexxofficial
The Dutch fashion brand will be re-launching in Canada and is looking to recapture what they once had in the Canadian retail landscape. At one point, Mexx stores were located in almost every major Canadian mall and operated more than 100 stores nationally. Continue reading.
4. It’s Official: Toys “R” Us Has Been Saved By A Canadian Company
Instagram/@gothgirlgonemom
Toys “R” Us Canada is currently reassuring consumers that although the American Toys “R” Us brand is pretty much all closed up, the Canadian arm, now owned by a Canadian company, is looking to recapture consumers and the brand is back in full-force. Continue reading.
5. Nine West Officially Declares Bankruptcy
Instagram/@offersunderthesun
Reuters is reporting that U.S. footwear and apparel company Nine West Holdings Inc filed for bankruptcy on Friday last week. The brand announced that it would sell off its Nine West and Bandolino footwear and handbag business to Authentic Brands Group. Continue reading.
6. The Largest Asian Shopping Centre Will Be In Markham
Move on over Pacific Mall, there’s a new king in town and it’s already being coined “Canada’s largest Asian shopping centre.” The mall called King Square Shopping Centre is located at 9390 Woodbine Ave in Markham. Continue reading.
7. Nordstrom Rack Is Open On Bloor
The flagship is located at One Bloor, and has the biggest selection of on-trend clothing, footwear, and accessories for men, women, and kids. Its floor to ceilings windows make it a bright and extremely pleasant shopping experience. Continue reading.
8. DSW to Shutter Canadian Footwear Chain Town Shoes
Iconic Canadian footwear chain Town Shoes is set to be closed down after a stellar 66 years in business. Town Shoes currently operates 38 stores across Canada, and according to industry insiders, this may cause problems for mall landlords as another departing chain will cause significant vacancies in malls across the country. Continue reading.
9. Canadians Will Now Be Able To Buy More From The U.S. — Duty Free Limit Raised from $20 to $150
Instagram/@polina_kennedy
The new U.S.-Mexico-Canada Agreement will actually benefit Canadian shoppers that enjoy cross-border shopping or ordering from American online sites. One of the interesting aspects of the new agreement will increase the de minimis threshold for duty-free shopping. Continue reading.
10. American Apparel Is Back In Business With A Focus On Inclusivity
Instagram/@americanapparel
It was a sad day back in early 2017, when iconic fashion brand American Apparel went bankrupt and announced it would shut down its stores. But hot on the heels of a successful relaunch south of the border, the brand announced its plans for international e-commerce expansion earlier this year, setting its sights on Canada. Continue reading.
11. Bombay Company And Bowring Brothers Collapse In Debt
We’re sad to be saying farewell to Bowring Brothers and the Bombay Company, along with all their fantastic sales. Apparently, the home decor chains in Canada will be moving into liquidation mode after their Brampton-based parent company filed for creditor protection. Continue reading.
12. Gap Plans To Close Down Hundreds Of Flagship Stores
Twitter/@CoresightNews
Gap Inc. is struggling with its flagship company, as it continues the fight to stay on top. The brand told analysts that it will soon be shuttering hundreds of its global Gap stores. Right now, the company is seeing 20% of sales and growing online, and 30% in its most profitable outlet stores, while the remaining flagship stores are bringing down profits. Continue reading.
13. Aritzia Opens Its First North American Outlet Store
Facebook/Toronto Premium Outlets
As part of the Toronto Premium Outlets expansion, Aritzia launched a new outlet store — it’s the first of its kind in North America, and the store is joining 130 other outlets in 500,00-square-feet of outdoor shopping space. Continue reading.
14. Miniso Has Filed An Application For Bankruptcy
Twitter/@joannachiu
In the height of Canada’s love for Japanese retailers, it seems like not all retailers are performing as well as they seem to be. Miniso Canada’s parent company Miniso International Hong Kong Ltd. and Miniso International (Guangzhou) Co. Ltd. have allegedly filed an Application for Bankruptcy Order in the Supreme Court of British Columbia.
15. Inside Toronto’s New Japanese Lifestyle Store Where Everything Is Under $12
Oomomo opened their doors at Don Mills and Lawrence earlier this month. The store is the second in Canada, while the first opened in Edmonton, Alberta just last year. Despite only being on the market for a short period, Oomomo has seen massive success. Continue reading.
A few months ago, the CBC is reported that a U.S. bankruptcy judge had approved the sale of the Canadian operations of Toys “R” Us to Toronto-based Fairfax Financial Holdings Ltd.
After eight months under bankruptcy protection, Toys “R” Us is officially back in business and putting a call out to Canadians who are looking to spend their money with Canadian-owned companies.
Toys “R” Us Canada is currently reassuring consumers that although the American Toys “R” Us brand is pretty much all closed up, the Canadian arm, now owned by a Canadian company, is looking to recapture Canadian consumers and the brand is back in full-force.
The Financial Post points out that in order for Toys “R” Us to remain successful in Canada, the brand will have to focus on continually improving its digital offering. Millennial parents are looking to buy online, and Toys “R” Us has to cater to this new style of consumer.
In addition to Toys “R” Us’ digital footprint, the brand will have to focus on providing more experiences in their big box stores. If customers prefer to buy products online, the traditional retail model will have to adapt in order to encourage customers to come back to the store. The old days of cramming a lot of product into a space and trying to sell it for cheap are over.
Industry experts expect Toys “R” Us to make a shift in how they present products to consumers. With that in mind Toys “R” Us has heard the call and is expected to continually grow.
So, if you were worried that Toys “R” Us would be disappearing from the Canadian retail landscape, fret not. Toys “R” Us is here to stay.
Ever since Toys “R” Us announced plans to shutter their U.S. stores, there has been endless speculation on what will happen to Toys “R” Us’ Canadian stores.
Ontario-based Fairfax Financial Holdings Ltd. has signed an agreement to buy the Canadian components of Toys “R” Us Inc. for approximately $300 million.
According to The Financial Post, the agreement big is called a “stalking horse” bid that allows other potential buyers to enter competing proposals. Fairfax holdings would then have the option of matching other organizaitosn bids or can decide to walk away from the deal completely.
The so-called stalking horse bid allows other potential buyers to enter competing proposals by Monday, the person said, asking not to be identified because the matter is private. Fairfax would then have the option of either increasing its offer or walking away. Under the terms of the deal, Fairfax would receive a break fee of about 4 per cent if another bidder is chosen, the person said.
According to insiders close to the agreement, Fairfax would be able to continue operating stores under the Toys “R” Us stores in Canada under the same name.
Earlier this week Toys “R” Us turned down an offer from MGA Entertainment…
Since Toys ‘R’ Us announced store wide closures in the United States, many have been wondering what exactly is going to happen with Toys ‘R’ Us Canada.
According to the Financial Post, it seems as if the struggling retailer might have a buyer in the works. Toy company MGA Entertainment has recently put in a US$890 million bid for Toys ‘R’ Us stores in the U.S. and Canada.
The bid is broken down into US$675 million for stores in the United States and US$215 million for stores in Canada.
While the deal is still in its infancy it will be interesting to see how Toys ‘R’ Us stores in Canada end up shaking out.
Source: The Financial Post
**UPDATE** A Califonia-based toy company, MGA Entertainment INC submitted a bid for the Canadian operations of Toys ‘R’ Us Inc.
With no buyer or agreement with creditors, a Bloomberg report suggested that Toys ‘R’ Us in the U.S. is liquidating its 880 stores. A U.S. shutdown seems likely, but with 82 stores plus an e-commerce site, what will happen to the Canadian subsidiary of the store chain?
The Canadian operation remains profitable with $1.08 billion in annual revenue, even though its parent company filed for Chapter 11 last September. According to Lou Brzezinski, the lawyer who represents Toys “R” Us Canada, it’s still possible for the Canadian unit to be spun off, sold and transferred. Some Canadian units of U.S. retailers have survived their parent company’s bankruptcy, such as The Source, which thrived on its own.
According to Toys ‘R’ Us Canada’s vice-president for marketing on Thursday, Clint Gaudry, the company continues to honour all of its customer policies and programs such as its baby registry, gift cards and loyalty points, and business in Canada is operating as usual.
As far as the Canadian company’s survival, it’s possible, but it would depend on finding a buyer not worried about the future of store-based retailing, who is willing to improve the stores and the e-commerce site. “I could see a private equity firm going in for this,” said George Minakakis, principal at Toronto-based consulting firm Inception Retail Group Inc. “I always wondered why this toy store has to look like a warehouse, versus an environment where it looks like a kid could have fun?”
However, on the negative side, Toys ‘R” Us Canada would have no U.S. business supporting them, and marketing and merchandising costs could skyrocket. Even with its strong balance sheet, buyers of retail businesses are warier than ever before about investing in a brick and mortar business.“The Toys “R” Us bankruptcy, changing nature of retail, the underperformance of movie toys, and the new light-speed at which kids’ tastes change has created the highest level of trepidation and uncertainty we have seen in years, perhaps since the onset of the Great Recession.”
While Toys“R” Us Canada faces an uncertain future, the company said on Friday that it had no information or comment on the reports about its U.S. parent.
Do you think Toys R Us Will Survive in Canada? Let us know in the comments.
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All of your favourite childhood stores have been slowly closing. Toys “R” Us announced on Wednesday that is will close 180 stores in the United States. According to the Toronto Star, while the president for Canadian Operations reassured customers that its business as usual in Canada, many insiders believe that Toys “R” Us won’t last.
Toys “R” Us’ American division is $5 billion (U.S.) in debt and obtained creditor protection in September in an effort to restructure the company. The process didn’t work as planned, and the company will begin closing stores in February with most stores closed by mid-April.
Now as far as Canadian Toys “R” Us go, all 83 stores in Canada will remain open for business, honouring all their policies, warranties, gift cards and loyalty programs. While Toys “R” Us in Canada has actually had a profitable year, industry experts point out that this may not last. Companies like Walmart, Amazon and formerly Target were eating into Toys “R” Us market share and things don’t look to change anytime soon as Toys “R” Us hasn’t yet quite figured out an effective online e-commerce platform that can compete.
Additionally, consumers tastes have changed. When it comes to shopping for toys customers are opting to buy online for specific items, and then gravitate to smaller toy stores for browsing purposes. Boutique stores like Mastermind Toys are eating up Toys “R” Us sales.
While Canadian stores will remain open it will be increasingly difficult for Toys “R” Us to maintain it’s success in Canada.
Source: The Toronto Star
We are now coming into the second month of 2018 and as always, It’s survival of the fittest when it comes to Canadian retail. While some struggling brands manage to restructure and optimize operations following filing for bankruptcy protection, others are left swirling in a downward spiral toward being obsolete. We hate to see retail closures result in layoffs, liquidations and losses, but there are a few big brands that may just be headed in that direction come 2018. The truth is, retailers are struggling and these stores might be in trouble. Keep reading for all of the details.
Michael Kors
We reported in May 2017 that Michael Kors had plans to close over 100 stores due to declining sales. Stores on the chopping block have not yet been revealed. Industry experts say that the drop in sales is a result of the brand’s decrease in perceived value. Michael Kors has discounted handbags in an effort to target value-driven shoppers, at the same time losing their luxury appeal.
Toys “R” Us
Toys “R” Us made headlines in September 2017 with the announcement of filing for bankruptcy protection. This major toy retailer has no plans to close stores. However, this will likely be determined following 2017 Q4 results from a successful (or lacklustre) holiday sales season. Toy “R” Us currently operates 82 stores in Canada.
Gap and Banana Republic
GAP Inc. announced in September 2017 that they would be closing 200 Gap and Banana Republic stores over the next three year. Striving brands Old Navy and Athleta will see new 270 stores open.
Tip Top Tailors
With big debt looming and a bankruptcy protection announcement in January 2017, Tip Top Tailors owner Grafton-Fraser Inc. felt pressure to restructure earlier this year. In June 2017, twelve underperforming store locations closed following the sale of the business to GSO Capital Partners. With hundreds of jobs lost with the handful of closures, who knows what other changes this retailer will see under its new ownership?
Abercrombie & Fitch
Once a mall-goer’s destination, Abercrombie and Fitch is now a fading memory of collegiate style. Since 2015, the number of A&F Stores across North America has dwindled despite efforts to reinvigorate the brand.
Ann Taylor, LOFT and Justice
An announcement by Ascena Retail Group to indefinitely close between 250 and 650 stores by July 2019 will shock the retail landscape. Ascena Retail Group, the owner of retail brands operating in Canada such as Ann Taylor, LOFT and Justice, is hoping to close stores in an effort to reduce costs and pursue rent breaks with landlords to keep remaining stores open.
Jean Machine
In January 2017, Canadian denim emporium Jean Machine filed for bankruptcy protection. In March 2017, Jean Machine was purchased by Comark Services Inc. to save the struggling retailer. With 30 locations across Ontario, new owners plan to reinvigorate stores with brighter lighting and paint. Time can only tell if the changes are successful.
Will you be sad if any of these struggling brands close their doors in Canada?
Featured Image: Instagram/@JeanMachine
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Autism is something that affects millions of people around the world. About 1 in 68 children are currently diagnosed, making it the most commonly diagnosed and fasted growing neurological disorder in Canada. And unfortunately, while prevalence of the disorder is growing, many still do not fully understand the spectrum of it, especially since no two individuals with autism are alike.
World Autism Awareness Day, which takes place on April 2nd, aims to change this and many organizations are celebrating the special day with unique programs and fundraising events. Toys “R” Us is one of those companies and they’ve partnered with Autism Speaks Canada for something amazing.
This Sunday, Toys “R” US and Babies “R” Us stores from coast-to-coast will open an hour early for Sensory-Friendly Shopping. That means that during the hour, there will be no music or announcements, lights will be dimmed, and there will be designated quiet spaces throughout the stores. Toys “R” Us will also host a number of in-store product demos and activities with toys ideal for children on the autism spectrum. The first 48 kids inside will receive a free Magformers Rainbow 14-piece set! Click here for individual store hours
The Sensory-Friendly Shopping Hour is just one of the steps Toys “R” Us has taken to support and help spread awareness of the autism community. Since 2010, they’ve raised more than $5 million for Autism Speaks Canada through the support of customers, team members, and vendors.
Canadians can get in on the action by purchasing an Autism Speaks Puzzle Piece in-stores or online every March and April at Toys “R” Us. Each piece can be purchased for a donation amount of choice and all funds go directly to Autism Speaks Canada. Toys “R” US also sponsors the Autism Speaks Canada Walk in 20 different cities across Canada.
Will you celebrate World Autism Awareness Day with Toys “R” Us?
Featured Image: Instagram/@Toysrus
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