The Metro Vancouver Retail Thread

[djh]

Originally Posted by Galaxy

The new store location hopefully will inject back into MEC some of what they were 10 years ago.

I'm slightly nervous that the new location may be the straw that breaks the camel's back.
MEC's current neighbourhood has become "Outdoor Living Row" largely because MEC was an anchor tenant, way back in the day, and that helped attract all of the other shops there. As soon as MEC moves away, I'm not sure that the customers will follow. Sure, for the first month they will, but after that, will the new location stick in their minds as the go-to spot?. The remaining retailers will have more momentum and synergy with their neighbouring stores to stay in the area than to move to near MEC. But without MEC, there will definitely be a change in the store traffic.

The only thing I can see causing other stores to leave would be a mass rezoning of that strip of Broadway and/or redevelopment of those blocks. Even under those circumstances, it's unlikely that the stores would then relocate to near the new MEC (high rents, suitablly-sized spaces, development time and costs). So this is the beginning of the end of that shopping district, and I think *all* of those stores will see a fall in business as a result.

[officedweller]

I tend to think of REI as being quite expensive.
I also don't think that there's a lot of bricks and mortar big box competition in the States for outdoor recreation other than on the hunting and fishing side, is there?

[dreambrother808]

Originally Posted by SpongeG

I've been inside MEC once, a friend was a member, and from my perspective, it didn't seem any different to sport chek or any similar store.

Sport Chek is generally for casual users. A hardcore skier or cyclist is not going to Sport Chek. MEC sells quality brands and has a more extensive catalog of items, as well as focusing on backcountry activities. Their in-house brand is the budget option with decent quality.

[SpongeG]

I'm not a core customer I don't do any activities in the outdoors.

I was surprised that there is an REI in Bellingham now.

[cairnstone]

Originally Posted by officedweller

One of the articles I read said they were going to cut back on MEC house brand clothing because they were usually poor sellers and ended up on clearance. ... but that's what differentiates them from the competition (otherwise they'd be another SportChek/Atmosphere). They must just have poor in-house designers / suppliers if people aren't buying them.

Don't stores like Simons create a niche with their house brands?



Kit and Ace also comes to mind...

Kit and Ace is a lulu that failed. Chip tried to use the same model with Kit and Ace to sell extremely overpriced cashmere leisure clothes. When you have the odd billion in your pocket and buying up the DTES get boring you open up your third brand.

[cairnstone]

Originally Posted by SpongeG

I've been inside MEC once, a friend was a member, and from my perspective, it didn't seem any different to sport chek or any similar store.

In the old days you got goods that were made for extreme sports before there was dozens of specialty stores. Growing up in Alberta small town it was the source for outdoor stuff. Otherwise it was mail order from USA.

Now you can buy from a number of brick and mortar stores be it kayak paddles, crazy bike parts etc. 30 years ago this was a very nitch market with no competition.

I think a big part of there problem was they decided to become Atmosphere/ Sport Chek. But also wanted to save the world. Now I can order from 50 stores online the same goods for the same price or less that deliver to my door step with out putting on pants.


Their house brand was good but you can also get similar priced goods with name brands on sale for the same price. Example Eddie Bauer Columbia all make the same action gear and way less on clearance especially from on line discounters

[Changing City]

Originally Posted by cairnstone

Kit and Ace is a lulu that failed. Chip tried to use the same model with Kit and Ace to sell extremely overpriced cashmere leisure clothes. When you have the odd billion in your pocket and buying up the DTES get boring you open up your third brand.

Kit and Ace was founded by Shannon Wilson with her stepson, JJ Wilson, Chip's son. Chip has concentrated on Low Tide Properties, with an extensive portfolio throughout the city, not just in the DTES.

[WarrenC12]

Originally Posted by s211

My experience with their house brands of late is that it's mostly cheap stuff from the Far East now.

Yes and selling cheap stuff that falls apart doesn't mesh with a lifetime return policy, or whatever their generous policy is.

[WarrenC12]

Originally Posted by djh

I'm slightly nervous that the new location may be the straw that breaks the camel's back.
MEC's current neighbourhood has become "Outdoor Living Row" largely because MEC was an anchor tenant, way back in the day, and that helped attract all of the other shops there. As soon as MEC moves away, I'm not sure that the customers will follow. Sure, for the first month they will, but after that, will the new location stick in their minds as the go-to spot?. The remaining retailers will have more momentum and synergy with their neighbouring stores to stay in the area than to move to near MEC. But without MEC, there will definitely be a change in the store traffic.

I disagree. MEC still has a huge customer base, that store is still packed all times of year. They just need to refocus a little bit and adjust some policies.

I think as some others have alluded to here, their product quality mix has fallen down badly, and it's biting them in profit margin more than anything. They need to stop the race to the bottom.

Perhaps a fancy new store with higher priced items will make a little more sense as a package.

[NewfBC]

All Canadian Bench Stores are closing...
https://www.bnnbloomberg.ca/apparel-...ores-1.1377921

Ron.

[NewfBC]

The owner of greeting card retailers including Carlton Cards and Papyrus is closing all of its stores in North America, including 76 Canadian locations.
https://www.ctvnews.ca/canada/carlto...JK_ZHx5P45lmmY

Ron.

[cairnstone]

Originally Posted by Changing City

Kit and Ace was founded by Shannon Wilson with her stepson, JJ Wilson, Chip's son. Chip has concentrated on Low Tide Properties, with an extensive portfolio throughout the city, not just in the DTES.

Chip was very involved in it. Having worked for both brands you can see how close they are. Shannon and JJ Wilson are named as directors and Chip is not is do to most likely non compete clause in his share distribution when he was forced out of Lululemon a number of years ago

[cairnstone]

Victoria Secret has closed the Richmond location

[Vin]

Originally Posted by djh

I'm slightly nervous that the new location may be the straw that breaks the camel's back.
MEC's current neighbourhood has become "Outdoor Living Row" largely because MEC was an anchor tenant, way back in the day, and that helped attract all of the other shops there. As soon as MEC moves away, I'm not sure that the customers will follow. Sure, for the first month they will, but after that, will the new location stick in their minds as the go-to spot?. The remaining retailers will have more momentum and synergy with their neighbouring stores to stay in the area than to move to near MEC. But without MEC, there will definitely be a change in the store traffic.

The only thing I can see causing other stores to leave would be a mass rezoning of that strip of Broadway and/or redevelopment of those blocks. Even under those circumstances, it's unlikely that the stores would then relocate to near the new MEC (high rents, suitablly-sized spaces, development time and costs). So this is the beginning of the end of that shopping district, and I think *all* of those stores will see a fall in business as a result.

Exactly. OV has terrible retail synergy. The new MEC is like a deserted outdoor equipment bastion left on its own. However, I think they may be able to sell well in dragon boating paraphernalia. They should start renting bicycles too as they are so close to the seawall, and especially since they have a bike maintenance/repair shop: can make a killing in the summer.

Along West/East Boradway, the City should have upzoned the stretch decades ago. It has such good potential for good mixed use development, but unfortunately a lot of development money has already found its way to the neighbouring cities. Hence the tired and sluggish feel to the retail along the stretch.

[SpongeG]

Originally Posted by cairnstone

Victoria Secret has closed the Richmond location

Yea the brand is doing very poorly and have been shuttering stores.

Victoria’s Secret Is Fading Into Obscurity, Jefferies Warns
https://www.bloomberg.com/news/artic...efferies-warns

[SpongeG]

some lululemon goings-on, investing in and expanding into buying real estate in Seattle

Lululemon founder Chip Wilson's next apparel play
The entrepreneur discusses going global with a big investment in a number of brands
By Hayley Woodin | January 22, 2020

https://biv.com/article/2020/01/lulu...t-apparel-play

Lululemon used to be a niche player, now some think it could be the next Nike
Six years ago, Lululemon’s stock looked tapped out; fast forward to 2020, it has almost quadrupled

Victor Ferreira
January 16, 2020

business.financialpost.com/investing/lululemon-used-to-be-a-niche-player-now-some-think-it-could-be-the-next-nike

[officedweller]

Originally Posted by cairnstone

Their house brand was good but you can also get similar priced goods with name brands on sale for the same price. Example Eddie Bauer Columbia all make the same action gear and way less on clearance especially from on line discounters

The odd thing is that house brands are supposed to allow you to have a higher profit margin, so they should be able to discount lower than name brands.

I guess the poor quality issue overrides that since these are functional clothes (and that's what the customers are looking for), not fast fashion.

Likewise, the current MEC President is from Best Buy - perhaps a store that relies on planned obsolescence (akin to fast fashion disposability) for its goods, unlike MEC.

[officedweller]

The failure of the Forever 21 empire
https://www.bnnbloomberg.ca/business...pire-1.1375523

[officedweller]

Amazing Brentwood?

Holt Renfrew:
...
A planned second Vancouver-area store was recently said to have been cancelled several months ago.

https://www.retail-insider.com/retai...-2020-analysis

[connect2source]

PAUL, a well-known bakery from France opening on Robson. For those of you who travel a lot, this is an airport staple in Europe that I've enjoyed many times.

https://dailyhive.com/vancouver/paul-bakery-vancouver