Winnipeg Retail

[emeraldeyes]

Would they be likely to take the Sears space at some point in the future?

[CoryB]

Some interesting facts from the WFP article on Simons:

1. The are at least 3-4 years out from opening hear.
2. St Vital Center has done a serious evaluation on added a second floor including talking to existing tenants.
3. Simons evaluated and rejected the Target store on St James.
4. CF is working on a plan to make space available in Polo Park for Simons.

It has also been well documented that Sears is more than open to leasing out store space to the right parties. It is also known that Sears Polo Park location includes a full basement currently used as their loading dock. What if CF cut a deal with Sears to move their loading dock to the western half of the St James Target, freeing up the basement at Polo Park for a redevelopment. Sears could then split the two floors and the basement and allow them to keep a presence while making room for Simons. A main floor mall entrance could be added across from Sports Check and a second floor one between Cultures and the escalators, or you drop the Cultures stall in the food court.

[esquire]

Originally Posted by CoryB

It has also been well documented that Sears is more than open to leasing out store space to the right parties. It is also known that Sears Polo Park location includes a full basement currently used as their loading dock. What if CF cut a deal with Sears to move their loading dock to the western half of the St James Target, freeing up the basement at Polo Park for a redevelopment. Sears could then split the two floors and the basement and allow them to keep a presence while making room for Simons. A main floor mall entrance could be added across from Sports Check and a second floor one between Cultures and the escalators, or you drop the Cultures stall in the food court.

Sears actually has some unused retail floor space in their basement... it only takes up a portion of the total floor area given that some of it is loading dock. It was their clearance centre until sometime in the 90s. You have to wonder if they could move some second floor departments to the basement (say, hardware, mattresses and bedding, etc.), squeeze some to the main floor and then that would free up the second floor for Simons? I wonder if that would be enough room for them?

[esquire]

I notice that more office space has popped up on the 2nd level of Portage Place, right by the now-vacant Ricki's location... the gradual evolution of that floor into office space continues. Makes you wonder why they didn't put the Service Canada on the 2nd floor to keep all the office and non-retail functions together...

[cheswick]

Originally Posted by esquire

I notice that more office space has popped up on the 2nd level of Portage Place, right by the now-vacant Ricki's location... the gradual evolution of that floor into office space continues. Makes you wonder why they didn't put the Service Canada on the 2nd floor to keep all the office and non-retail functions together...

I saw that too. Access to the elevators there right off the mall (I don't remember those being there, were they in some back hallway before?) I assume the elevator access off the second level there has to do with the relocation of Investors Group call centre to the 3rd floor offices.

[esquire]

Originally Posted by cheswick

I saw that too. Access to the elevators there right off the mall (I don't remember those being there, were they in some back hallway before?) I assume the elevator access off the second level there has to do with the relocation of Investors Group call centre to the 3rd floor offices.

I was wondering the same thing, I don't recall seeing the elevator bank there but maybe it was hidden behind a door or something like that.

I guess if IG has offices on the upper levels then it makes sense to provide easier access for those walking over from One Canada Centre. I couldn't quite tell what was going into the new office space, though... now that offices are invading the main shopping core of Portage Place, I think it's fair to say that time is probably winding down for second floor retail in there.

[pegcity]

Would Sears do all that work for a competitor? I mean Sears is already struggling. Give up great retail space to Simons then move to the dungeon/ basement? I would just give up the lease and shut it down.

The last time I bought something at Sears was 3 years ago, I bought underwear, that's it.

[esquire]

^ It's interesting that Simons apparently wouldn't consider Kildonan Place. They set up a store in Edmonton's Londonderry Mall, which is basically that city's equivalent to KP in that it's one of the bigger malls in the city, but not among the very biggest and most prestigious.

[CoryB]

Simons and Sears don't really seem like direct competitors as Simons seems to be significantly more up market. That said, if Sears can charge 50% or more than what they are paying to lease the space to turn around and let Simons in it could make sense. The current Sears layout at Polo Park is making heavy use of space fillers to avoid looking empty. You could even completely scrap appliances and mattresses from the store, rework the main floor to house the kids department and put the hardware, linens and kitchenware into the basement.

A different layout would move all the Sears areas of the store away from the Portage side of the current site. Split the location down the middle and give the Portage side to Simons. This would give both stores mall access from both floors and direct exterior access.

The end of the day in comes down to revenue per square foot and right now Sears seems to be struggling to productively use all the space it has at Polo.

[pegcity]

I don't see Sears Canada lasting that much longer.

[buzzg]

Originally Posted by esquire

I was wondering the same thing, I don't recall seeing the elevator bank there but maybe it was hidden behind a door or something like that.

I guess if IG has offices on the upper levels then it makes sense to provide easier access for those walking over from One Canada Centre. I couldn't quite tell what was going into the new office space, though... now that offices are invading the main shopping core of Portage Place, I think it's fair to say that time is probably winding down for second floor retail in there.

I know it's kind of a long shot, but I wonder if maybe they (PP) know this and have some plans for the future to boost up the main floor a bit... The whole Promenade is getting redone so there's a glimmer of hope. Yeah really sucks about Service Canada because it had an entrance right to the Promenade that could have been better used.

[cllew]

Originally Posted by cheswick

I saw that too. Access to the elevators there right off the mall (I don't remember those being there, were they in some back hallway before?) I assume the elevator access off the second level there has to do with the relocation of Investors Group call centre to the 3rd floor offices.

I think the elevator access to the 2nd floor of Portage Place is brand new.

They are doing like City Place did years ago when they had Otis come in and put in elevator doors into the bricked up access to open up to the 2nd floor.

It may be to get more people from the upper levels to circulate on the 2nde level as you suggest.

[cllew]

Would there be any way that Sears could be induced by CF / Shindico to move into the Target space to free up their space for a healthier retailer?

[plrh]

I just noticed Lowe's is under construction on Kenaston by Scurfield, NE corner, sorta behind the co-op. Sewer and water is currently going in. I thought they were gonna build on Sterling Lyon in front of Cabela's.

[buzzg]

Originally Posted by cllew

Would there be any way that Sears could be induced by CF / Shindico to move into the Target space to free up their space for a healthier retailer?

There's no way, that place is just so big and I doubt sears would ever go through the trouble of moving when they know they only have a couple years left at most.

[The Unknown Poster]

Originally Posted by plrh

I just noticed Lowe's is under construction on Kenaston by Scurfield, NE corner, sorta behind the co-op. Sewer and water is currently going in. I thought they were gonna build on Sterling Lyon in front of Cabela's.

Whats this going to do to traffic? That idiotic intersection at the Co-Op sees a lot of accidents already. I really wish they'd stop left hand turns from the south bound lane. Ties up traffic so much. That whole area would have been better served with access roads. Direct turning on and off of Kenaston is idiotic.

[CoryB]

Originally Posted by cllew

Would there be any way that Sears could be induced by CF / Shindico to move into the Target space to free up their space for a healthier retailer?

For Sears to move out of Polo completely they would need someone to offer a pretty healthy premium over their current lease rate which that money going straight to Sears. Then to move into Target on St James, CF/Shindico would need to put a long term deal on the table with way below market rates for the space. Worse, Sears struggles to generate traffic when attached to the mall, do you really think people are going to drive in their car to go there?

Originally Posted by plrh

I just noticed Lowe's is under construction on Kenaston by Scurfield, NE corner, sorta behind the co-op. Sewer and water is currently going in. I thought they were gonna build on Sterling Lyon in front of Cabela's.

It was announced around the time of their failed bid to take over Rona that Canadian expansion plans, including the Season site on Sterling Lyon, were on hold. Much more recently Lowes announced a new round of expansion plans in Canada including their first Winnipeg store where it is now under construction.

It is worth noting that Seasons did not develop out anywhere near the market plan they shopped around. For example between the now closed River City Sports and Cabela's was supposed to be a second leg of stores. AMC movie theaters exited Canadian operations sinking the proposed multiplex. Great Wolfe Lodge hit operational troubles and the water park at Seasons evaporated. The plan for the upscale retail development on the "north" parcel failed to secure tenants and was quietly sold to another developer.

The reality is the south-west Winnipeg retail market is close to saturation so why put yourself at the relatively isolated Seasons development when other options are available.

[h0twired]

Originally Posted by emeraldeyes

Would they be likely to take the Sears space at some point in the future?

I would hope something a bit more upscale like Nordstrom would take the Sears space.

[esquire]

Originally Posted by h0twired

I would hope something a bit more upscale like Nordstrom would take the Sears space.

I'm sure Sears would be of far more use to Winnipeggers than Nordstrom's... this city doesn't have a history of supporting upscale retail, at least not in recent decades.

But that said, I agree with CoryB, Sears would be signing its own death warrant by moving into the old Target. They would probably have a hard time drawing foot traffic if the mall wasn't spoon-feeding it to them.

[h0twired]

Originally Posted by esquire

I'm sure Sears would be of far more use to Winnipeggers than Nordstrom's... this city doesn't have a history of supporting upscale retail, at least not in recent decades.

Winnipeg is not the same Winnipeg that you currently think it is.

Have you seen the crowds in the Apple Store?

Younger people (those under 40) like brand names and high quality clothing instead of just the same crap from The Gap/Old Navy.