This Is How Luxury Shopping Malls Are Adapting To The Future
For quite a while, global retail shopping centres have reached out to the high-end demographic, but this is a recent occurrence in Canada. Until now, luxury retail stores have been in downtown areas on street fronts, not in shopping malls. However, landlord Cadillac Fairview has picked up on this global trend by creating upscale areas in several Canadian malls to further attract affluent shoppers.
This is a win-win situation for a landlord. Deluxe brands prefer to be in the same area for easier accessibility to their target market, and upscale shoppers prefer to shop where luxury brands are clustered. These customers view a high-end area as customized for them and will shop more, which can result in sky-high sales numbers for luxury retailers.
In Toronto, Cadillac Fairview is creating luxury areas in the downtown CF Toronto Eaton Centre, the busiest shopping centre in North America with more than 50-million visitors a year. Eaton Centre is home to well-known brands such as Hugo Boss, Ted Baker, and Links of London on its third level, which is bookended by such upscale flagship stores such as Nordstrom and Saks Fifth Avenue/Hudson’s Bay.
These high-end department stores are full of luxury brand shop-in-store boutiques, such as Gucci, Paul Smith, and Stella McCartney. Cadillac Fairview is also adding luxury areas at CF Sherway Gardens, another high-end mall they own in Toronto. One of the most attractive shopping centres in Canada, it houses stand-alone luxury boutiques such as DeBeers and Tiffany & Co., and anchors Nordstrom and a 143,200 square foot Saks Fifth Avenue as well as an 18,500 square foot food hall operated by Pusateri’s Fine Foods. CF is creating the same model at the malls they own in Calgary, Vancouver, and Montreal.
While Cadillac Fairview is not the only Canadian landlord increasing luxury to its malls, it is notable because of its expansive national ownership of shopping centres. Other Canadian landlords, such as Oxford Properties, owner of trophy property Yorkdale Shopping Centre in Toronto, as well as Ivanhoe Cambridge and QuadReal, will also be increasing their luxury retail areas as Canada’s retail landscape perspective continues to polarize.
How do you think the future of retail will continue to change? Let us know in the comments!
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