SIMONS BETS ON CORE REVIVAL
Quebec retailer set to open downtown
Quebec-based fashion retailer Simons is putting the finishing touches on its soon-to-be-opened Calgary store, betting that its commitment to quality and Canadian values will help it ride out the city’s ongoing economic downturn.
The 176-year-old, family-owned company will open its first Calgary location (its 14th store overall) March 16 in The Core Shopping Centre.
The 95,000-square-foot store will take up five floors in the historic Lancaster building and portions of the first, second, and third floors of TD Square. The main floor of Simons will run an entire city block on 2nd Street between Stephen Avenue and 7th Avenue SW.
A brand powerhouse in its home province — where it has nine stores, including three in Quebec City, where its headquarters are located — Simons has been slowly working on building a coast-to-coast presence. Its first store outside of Quebec opened in 2012, at West Edmonton Mall, and locations in Vancouver, Mississauga and Ottawa have since opened.
Fifth-generation CEO Peter Simons — who was in Calgary on Tuesday to check on the progress at the local store — said it has taken time for the retailer to come to southern Alberta, but that’s because each new store is taken on as a unique, carefully considered project.
In Calgary, Simons has been working with 20 Vic Property Management and local architect McKinley Burkart to revitalize the 1919 Lancaster Building and integrate it with TD Square. It has also commissioned a number of Calgary artists to create largescale artworks that will be featured inside the store.
“It’s not a quick fix flash ... We’re not trying to grow the quickest,” Simons said. “We don’t want to have a ton of stores — we want to have unique places.”
Falling somewhere between Hudson’s Bay and Holt Renfrew when it comes to price point, Simons offers men’s and women’s clothing, as well as home fashions for the bedroom, bathroom, and kitchen. In addition to big, namebrand
It’s not a quick fix flash ... We’re not trying to grow the quickest …we want to have unique places.
labels, Simons has its own in-house label brands and offers a wide variety of lesser-known, “discovery” brands from around the world.
Simons said he is not spooked by the oil and gas downturn that has thrown thousands of Calgarians out of work and hollowed out the city’s downtown.
He said his company’s entry into the Calgary market is a long-term play.
“I don’t think of things in terms of quarters,” he said. “Look, I know there’s been a huge change in the oil industry, and it’s been hard. But I’m feeling positive about Calgary ... I believe in this city.”
He said he is also well aware that he has big-name U.S. competitors, including Nordstrom — which opened in 2014 — and Saks, which will open at Chinook Centre in 2018.
But he said he doesn’t believe the market is over-saturated, adding he is confident the Simons product offering, as well as its shopping experience, are unique.
“Our service is very Canadian. We’re not on commission, we’re not pushing the sale — I think that makes us unique,” Simons said. “I’m also gambling that if we’re building great stores and we really understand and participate in the communities we’re in, that’s going to resonate more with this younger generation.”
Bruce Winder, an analyst with the Toronto-based Retail Advisors Network, said Simons is a smart retailer that is managing its expansion carefully — and may do very well in Calgary over the long-term. However, he said the company may face a challenging beginning in the market.
“Simons is a well-put-together store, with fantastic private labels and merchandise that’s spot-on in terms of its appeal,” Winder said. “But very few people know them in the West ... So they’re almost starting from scratch like a U.S. entrant.”
Winder added the timing of Simons’ entry into Calgary will also be a challenge.
“Oil has obviously not rebounded — Calgary is still in tough shape, and this merchandise is not cheap,” Winder said.
“There’s some great value there, don’t get me wrong, but this is not H&M, this is not Zara ... And so, it’s a bit of a tough time with the economy right now to be opening.”
Simons expects to hire 150 to 200 full-time equivalent positions to staff the new store.