Final Chapters for bookstore on Robson
Rent increase would make store unprofitable, says Indigo Books & Music CEO Heather Reisman
Chapters on Robson Street will be closing its doors this summer, citing high rent as the reason it has to vacate its prime retail spot.
The store is slated to close June 30, said owner Indigo Books & Music.
CEO Heather Reisman said the 53,000-square-foot flagship store is profitable but faces a hefty rent hike that would put it in the red.
“The new terms are simply untenable for us to stay in that location,” said Reisman on Monday.
Robson is Canada’s second-most expensive retail strip after Toronto’s Bloor Street, with rents averaging $200 per square foot in 2013.
The company had shuttered the Chapters in Richmond last May. It also closed some stores in Eastern Canada, including two in Toronto and one in Montreal.
On Monday, many Chapters shoppers were surprised and dismayed by the impending closure, saying the loss will leave a hole in downtown Vancouver’s retail landscape.
“That’s sad news,” said Ben Harris, who lives and works downtown and considers the three-storey Robson and Howe Street store his primary bookstore. “They’ll probably replace it with some big clothing store or something, and that’s not what downtown needs.”
Oliver Christie said the closure of the store, which opened in 1998, might be a reflection of changing consumer habits. “It’s hard to compete with Amazon,” he said. “A lot of people will just get books online and save a few bucks.”
Retail consultant David Ian Gray of DIG 360 said the closure isn’t a sign Canadian retailers are in trouble, despite the news coming on the heels of Target’s and Sony’s impending exit from Canada. Nor is it a sign of the death of bricks-and-mortar bookstores, as Indigo’s sales were up the last quarter, he said. Gray said the closure was likely prompted by the jostling of plum spots on Robson in anticipation of the arrival of U.S. retailer Nordstrom in the fall.
“I believe this is completely owing to the looming opening of Nordstrom,” said Gray. “That is such a prime spot, it changes the value equation of the property.”
Gray said it’s likely the landlord has a new tenant in mind that is prepared to pay top dollar for the space: “It’s not suited to a book reseller anymore, but maybe a luxury retailer or a global brand.”
On Monday, Business in Vancouver reported Calgary-based FGL Sports, which operates Sport Chek and Atmosphere, will take over the space. Indigo said it plans to open another store later this year to serve the Robson area. The Chapters store at Granville and Broadway remains open.