Winnipeg Retail

[Simplicity]

Originally Posted by SpongeG

here's the news story that started it all

http://www.cbc.ca/news/business/good...yees-1.2919823

Cory's done a pretty good job outlining the barriers to this sort of fit. The sheer amount of space is the one least likely to be overcome without even mentioning that very few retail centres are going to have much use for a fitness centre rather than an anchor store. I think it's fair to say this is very unlikely at this point.

And it's true that there may come a time where desperation sets in for mall management, but if Goodlife were serious they'd be able to negotiate a discount on those leases with a commitment to volume and term. That they haven't is telling. If Goodlife were truly interested in the space they'd have tied up certain leases as they did due diligence on each location. They wouldn't be leaving things in the hands of a receiver to pick winners.

[SpongeG]

they could divide the space up, vancouver area has some two level stores where one could become fitness whatever it is

a lot of malls in the vancouver area divided up old eatons stores into about 4 or 5 decent sized stores

[Simplicity]

Originally Posted by SpongeG

they could divide the space up, vancouver area has some two level stores where one could become fitness whatever it is

a lot of malls in the vancouver area divided up old eatons stores into about 4 or 5 decent sized stores

If Target starts subdividing those leases (which they likely can't), those malls are going to be left with more long-term vacancy than they otherwise might be. That's a lot of 'new to Canada' retail operations you'd need in order to fill those spaces. There's almost 200 hundred leases out there. If you started dividing those up you're talking between 600 and 800 spaces. I'm not convinced you'd fill them. Bricks and mortar retail is trending the opposite way...

[CoryB]

Simply put after the Goodlife wants Target story broke I went looking for "the largest Goodlife" and found it was around 40,000 sq ft.

Now lets assume every new Goodlife will be 40,000 sq ft. Target stores would average around 120,000 sq ft, three times that size and there are some locations over 200,000 sq ft or five times that size. Separately add in that Goodlife is the chain with the most gym locations in Canada already so they are doing a pretty good job reach urban populations where Target has stores.

Let's look at this rumor further and assume Goodlife takes over all 133 Target locations. For analysis purposes lets assume that each former Target location would service membership similar to 3 existing GoodLife locations based on the size of those new locations. That would be that same as 399 new GoodLife locations, or roughly a 100% increase in the size of the current chain.

The GoodLife customer base is also not busting at the seems right now meaning that if you are a member and want to go to the gym there are not reports that you can't get in. Suggesting there is some excess capacity in their current locations and they are relatively close to their customer saturation point.

From the customer growth numbers alone if it doubtful this plan is legitimate. The impact and reaction of their competitors to such a move is another point to consider as is their financial ability to pull off such a sizable and rapid expansion.

I could put out a press release saying I have a grand vision on taking over ever Target location in Canada to open a network of teleportation stations. It isn't necessarily founded in an operational reality and having media outlets parrot that out doesn't make it any more true. The main difference here is that GoodLife is an established brand so reporters gave the announcement some level of credibility without a lot of fact checking and due diligence on their own to back it up.

Edit: Even if Target could subdivide those leases without the consent of their landlords (doubtful) there are a lot of other competitors for retail space in the 30,000 to 40,000 sq ft range.

[vjose32]

Originally Posted by trebor204

It looks like Sport Check in St Vital Centre might by expanding.
Their doing some renovations at the south east corner of the mall behind Sport Check and Walmart.

That's been ongoing for months now. It has nothing to do with Sportchek though. They are working on the loading docks area and building a new storage area for the recently opened Victoria's Secret. Currently Victoria's Secret is using a vacant shop on the other side of the mall for storage. Though I wonder why they need so much storage in the first place.

Oddly enough I believe their storage at Polo Park is in the basement level. Same with H&M for the record, I know I worked on it.

But yeah that is what is going on, nothing to do with Sportchek whatsoever, at least that I know of. In fact they are a bit separate from that area anyway.

[vjose32]

Big news, Future Shop is closing all their stores. Some will convert to Best Buy. Hopefully the one in Garden City is retained. I guess someone will quickly jump into the one near Polo.

[vjose32]

Originally Posted by vjose32

Big news, Future Shop is closing all their stores. Some will convert to Best Buy. Hopefully the one in Garden City is retained. I guess someone will quickly jump into the one near Polo.

I'm guessing the only one that will really close in Winnipeg is the one on St James since there is a Best Buy right next door. Doesn't make much sense to close down other locations since there would only be 4 in the city anyway, one in each quadrant basically.

[trebor204]

Heard on the CJOB, that Polo Park and Garden City are closing.
Pembina will close for a week to be converted to a Best Buy

[vjose32]

That sucks, another blow for this area! They will only lose business because customers will just go to Walmart instead. Their loss. I won't be going to any of their locations now.

[horrorbro123]

What That Means For Future Shop In Pembina Hwy?

[vjose32]

Pembina Hwy is being changed to a Best Buy.

As for GC I say kick out Jysk, they can move into one of the abandoned shops somewhere on McPhillips and bulldoze Jysk, Future Shop, and Safeway and put in a Costco or something. Do something, anything!

[vjose32]

Originally Posted by vjose32

Pembina Hwy is being changed to a Best Buy.

As for GC I say kick out Jysk, they can move into one of the abandoned shops somewhere on McPhillips and bulldoze Jysk, Future Shop, and Safeway and put in a Costco or something. Do something, anything!

And while they are at it, they should bulldoze Northgate and put in a Lowes or Rona! Put Cinema City in Garden City and get the punk kids out of my area.

[horrorbro123]

What Gonna Happen To 810 St James Street?

[buzzg]

Originally Posted by horrorbro123

Bell Store Is Taking Over Old MTS Connect Next To EB Games In Polo Park

Polo currently has 3 MTS stores operating... THREE STORES. They got ride of the kiosk. Fido also moved from a kiosk to a store (a little surprising), so did Virgin, and now Bell is too...

Is Polo trying to get rid of some kiosks here (maybe to lower vacancy?) or is there legit that much demand that these small players all want stores all of a sudden.

[The Jabroni]

Originally Posted by vjose32

And while they are at it, they should bulldoze Northgate and put in a Lowes or Rona! Put Cinema City in Garden City and get the punk kids out of my area.

There have been rumours that there was going to be a Costco in the area when Chief Peguis Trail is extended west of Main St. Where exactly is anybody's guess at the moment.

As disappointing to hear Future Shop on Leila is suddenly closed, the only life force around that block left now is Home Depot and Jysk, along with the Liquor Mart and Mark's in that strip mall section.

[laumag]

Originally Posted by vjose32

And while they are at it, they should bulldoze Northgate and put in a Lowes or Rona! Put Cinema City in Garden City and get the punk kids out of my area.

I have had numerous email communications with the Rio Can representative for Garden City Shopping Centre. It seems the reason the area is not attracting retail is that the area is but a 20 minute drive to Polo Park. I was told that American retailers like to move into areas with a group hug effect. Once one American store opens, the others follow. The addition of the Soccer Arena at the Garden City Community Club may generate some renewed interest in the area.

[horrorbro123]

What Size Former Future Shop Location In Polo Park Maybe Cineplex VIP

[vjose32]

Yeah but why drive 20 minutes when you only need to drive 5? Their loss. For me it's too much of hassle to go to Polo if I don't need to. I only just went to the Target recently to check it out and never bother with Rona or Best Buy.

The traffic at Walmart, Superstore, Home Depot, and even Safeway now proves that people will shop here and not drive all the way out there.

I guess the only good news is that Northgate now has a good property management team behind it that has fixed other malls, so maybe there's some faint hope.

[rypinion]

Originally Posted by vjose32

The traffic at Walmart, Superstore, Home Depot, and even Safeway now proves that people will shop here and not drive all the way out there.

But what if, say, Safeway ran the numbers and realized they could close a store and retain 80% of their customers/business while halving their costs. They would definitely consider closing a store.

That's likely what Future Shop has done re: Garden City.

[esquire]

Despite all of the population growth in the NW corner of the city over the last 60 years, the Garden City shopping area on McPhillips has never really taken off. I thought it was telling that when the Eaton's at Garden City SC closed, they said it never made a profit once in the nearly 30 years it was in operation... quite a statement. And the area hasn't grown that much since Eaton's closed.