Canada’s still waiting for a few top retailers
Here are 10 brands that could move in
TORONTO — The past three years have seen the arrival in Canada of some of the most sought-after retail brands — J Crew, Victoria’s Secret and Target, to name a few. But despite an increasingly competitive market for retail real estate, there remain a handful of international retail players who could still set up shop here, spurred by customer demand or their own desires to further expand global operations.
Trader Joe’s: The California grocery chain with 390 U.S. locations has the unique problem of being so sought after in Canada that the owner of Vancouver-based Pirate Joe’s has built an entire retail business out of re-selling its goods. In fact, Trader Joe’s, owned by the family dynasty behind Germany’s biggest supermarket chain, Aldi, tried to sue Pirate Joe’s for trademark infringement, but a U.S. judge dismissed the case this week. Pirate Joe’s owner Mike Hallatt has spent more than $350,000 buying goods at the U.S. chain on house-branded items such as Trader Joe’s Charmingly Chewy Chocolate Chip Cookies, Multigrain Tortilla Chips and Pumpkin Spice Pancake Mix, and driving them back across the border to resell them at a markup. Washington state judge Marsha Pechman dismissed the lawsuit, ruling there was no basis to apply a U.S. law known as the Lanham Act, which confers broad jurisdictional powers upon U.S. courts. Despite the buzz, Trader Joe’s has not said it intends to open stores in Canada.
Uniqlo: The Japanese cheapchic-apparel giant has more than 1,000 outlets in Asia, France and the U.K. and wants to open up to 200 stores in the United States, where it currently has 17 locations, and will open its first stores in Australia next year. Uniqlo is high on HBC chief executive Richard Baker’s list of retail partnerships for his Hudson’s Bay department store chain.
American Girl Place: Most parents of girls 10 and under have heard about this retailer from their daughters, and most likely to excess. The retailer of $110 US dolls and doll accessories has a thriving online division and stores in 15 U.S. states that emphasize “experiential” retail. Twelve stores include restaurants so one can book brunch, lunch, afternoon tea, dinner, or parties with her doll friends (adults are allowed, too), and all outlets offer a photo studio and theme craft parties for customers.
DSW: Designer Shoe Warehouse is a bit like the Winners (or sister chain Marshall’s) of shoes, selling top footwear brands at a discount. Bigger in size than Canada’s The Shoe Company stores, DSW operates nearly 400 locations averaging 22,000 square feet as well as 355 leased departments in other U.S. retailers.
Delia’s: The apparel and accessories retailer for teens and tweens has a little more than 100 stores in the U.S. but also has a thriving catalogue operation. Could it succeed where La Senza Girl failed?
Lane Bryant: The popular destination for online and cross-border Canadian shoppers who wear plussize women’s apparel has more than 800 locations in the U.S. With an oft-noted void in the category relative to demand, the chain could provide some competition to the Reitmans-owned Addition Elle and Penningtons stores were it to open here.
Madewell: This budding chain launched by J Crew in 2006 has not reached its full capacity in the U.S., so it is unlikely that we will see it here for a few years at least. But much like the prevalence of Gap and Old Navy in Canada over that of pricier corporate sibling Banana Republic, the less expensive J Crew unit may prove to be more popular among Canadian consumers.
Macy’s: The large department store chain has been on the lips of industry watchers for years as a possible successor to Sears Canada, which has sold the leases of some underperforming urban locations back to landlords. Now that Richard Baker has chosen luxury department store chain Saks as the dance partner for Hudson’s Bay, there is speculation Macy’s may step in to give HBC some more serious competition.
Primark: With rivals such as Forever 21 and H&M finding a steady foothold in Canada, the large Irish clothing retailer, which has 260 stores in the U.K., Austria, Belgium, Germany, Ireland, the Netherlands, Portugal and Spain, may find fit to set up shop here, too.
Next: With 500 stores in the U.K. and rivalling Marks & Spencer as Britain’s biggest clothing chain, the contemporary fashion retailer is a well-known brand throughout the world, with 200 outlets in 30 countries including China, Kuwait and Greece.