Sears Canada to close 3 stores (Ottawa, Calgary, Vancouver) by October 31st

[canabiz]

Vancouver Pacific Centre

Calgary Chinook Centre

Ottawa Rideau Centre

Wondering if there will be any firesale or if the inventory will be shifted to other stores? I don't shop at the Ottawa Rideau Centre a whole lot as prices are generally higher than other places.

http://business.financialpost.com/2012/03/02/sears-canada-to-close-three-stores/

[Wingding]

I'm much more interested to know who wanted those retail spaces so badly that Cadillac Fairview was prepared to offer $170M to Sears to relinquish its leases. Those are absolutely prime locations . . . extremely high-traffic.

It certainly wouldn't be Target taking on such costly, high-profile spots, and they already have the erstwhile Zellers space in Chinook Calgary.

Is Canada about to have yet another American entry into our retail market???

[canabiz]

I can't comment on Calgary as I don't know the lay of the land there but I could see H&M setting up shop in the space currently occupied by Sears at the Rideau Centre. From what I understand, H&M likes to be around the downtown core and there is currently no store in Ottawa.

That is also prime location and Sears currently takes up 3 floors in that shopping mall. Maybe Nordstrom's from the States?

I just hope 3rd time will be the charm as Eaton's previously occupied said space and Sears took over not that long ago (~10 years or so?)

[Wingding]

H&M could never use such huge amounts of space, and CF sure as hell didn't pay Sears $170M to take a hike so they could split up all those anchor-sized spots into 2000 sq ft bays and then work like mad to try and get them leased.

[zoro69]

There is way more money if the mall can split them up then a huge anchor would pay. malls with zellers that werent sold have been quoted saying they hope they get them back so they can do just that.

H&M opened in Kingston a few months back and were quoted saying they were looking for space in ottawa. Its no where near dept store size here, but larger then anyone else in the mall, taking what would have been a few stores over 2 levels.

[Wingding]

There is way more money if the mall can split them up then a huge anchor would pay. malls with zellers that werent sold have been quoted saying they hope they get them back so they can do just that..

Hmmm, I dunno . . . it's true there's more money in the space in smaller parcels -- but only if you can find all the tenants to fill them. We're talking probably 200K square feet of space for each of those locations Sears is giving up. In the case of Chinook in Calgary it would take them forever to find enough tenants, particularly given the number of stores already in the mall and the fact that they just opened a major expansion that had the mall in turmoil for years.

We're also starting to see a surprising number of mall stores folding up in Calgary. I'm not talking cataclysmic abandonment, of course, but when you start to see empty storefronts in biggest and busiest malls with signs saying "Exciting Retail Leasing Opportunity - Call [insert landlord's name here]" it sure doesn't sound to me like there's a dearth of available space now.

And besides, malls still need the traditional big anchor stores to string traffic along those corridors where all those smaller, more lucrative spaces lie. I think Pacific Centre -- and to a bit lesser extent Chinook -- would be quite negatively impacted by not having anchors take over the current Sears spaces.

[FunSave22]

The Sears in Pacific Centre in Vancouver is either 7 or 8 floors. There doesn't seem to be many retailers today who are interested in the multi-floor department store model. They may keep their older multi-floor stores, but you don't see many new stores of more than 3 levels being opened.


Even if one of the bigger American chains decided to come to Canada, I can't imagine they would be interested in opening up a 7 floor store. I think Cadillac Fairview is going to have to break it up into at least a couple of pieces. Although I agree, they probably don't want to break it up into tens or hundreds of stores.

[Simaahoy]

I do hope H&M jump on that location, I have been to Kingston several times just to shop at H&M.;)

[sketchED]

The one retailer that might be a right fit for the Canadian marketplace is Quebec based Simons, some are suggesting Nordstroms, personally I think that Nordstroms is a little too pricey for price conscious Canadians. Last year, there was an article suggesting that Simons was looking on expanding westward. This fits right into their strategy .... who knows !

http://www.theglobeandmail.com/report-on-business/quebecs-simons-set-to-head-west/article1876533/

[shadow_cruiser]

A friend of mine works as a security guard in Sears at the Rideau Centre location. He said, that location alone, has the highest amount of theft out of all the Sears in Canada. Sears Rideau Centre actually has 3-4 guards at all times in the surveillance room. Not sure if they are closing that location due to theft or because of financial loses. He mentioned they catch the shoplifter about 30-40% of time. It's hard because you have to wait until the person leaves the store until it actually becomes a "shoplift".

[canabiz]

A friend of mine works as a security guard in Sears at the Rideau Centre location. He said, that location alone, has the highest amount of theft out of all the Sears in Canada. Sears Rideau Centre actually has 3-4 guards at all times in the surveillance room. Not sure if they are closing that location due to theft or because of financial loses. He mentioned they catch the shoplifter about 30-40% of time. It's hard because you have to wait until the person leaves the store until it actually becomes a "shoplift".

I don't think the store is slated for closure because of theft, although that could be a contributing factor.

All 3 stores slated for closure occupy prime real estate and it looks like the landlords are getting things ready for other tenants, as discussed earlier.

Did your buddy tell you what kind of stuff is most often stolen out of Sears? I imagine clothing and maybe small appliances? I was going to mention cosmetics and jewellery/watches but realize you usually have to get a clerk to open the cabinet to get what you want.

I would not be surprised to hear that stat as the Rideau Centre attracts a lot of riff-raff. There are also many different entrances and the tunnels for OC Transpo bus stations certainly provides a quick getaway.

[Wingding]

Nordstrom it is, looks like:

http://www.theglobeandmail.com/report-on-business/sears-closing-of-top-locations-opens-door-for-us-rival/article2357390/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2357390


.

[canabiz]

^ I would welcome Nordstrom here, we have been to a store in NYC and I don't recall us buying a lot of stuff there but we certainly enjoyed the experience.

I think Ottawa and Gatineau can definitely support a Nordstrom. Don't forget folks will drive up from Brockville/Kingston and Montreal as well. Sears still has a couple of stores in town and they are looking to open another store here so it's not like they are going away anytime soon.

[litebrite]

Wow! Nordstrom would be amazing.

H&M in Rideau Centre wouldn't be bad either. I read somewhere that they haven't expanded to Ottawa for the being because they haven't found a suitable space large enough. So who knows...

[LonesomeDove]

One less shopping choice for people who live near downtown Vancouver. I go there often because I find their clothes much less expensive than the Bay across the street.

So Vancouver has the highest cost of living, highest cost of housing, now they will have the highest retail cost too. How can people who live in Vancouver afford it?

Now we have only one department store left in Vancouver - The Bay. I remember the old days, when we had the choice of Woodwards, Eaton's, Sears, and Hudson Bay.

[chedo009]

I'm actually quite surprised that Sears announced the closing of only 3 stores but I guess that further closures are upcoming.Their virtually non-existent marketing exposure, proven by their pathetic Boxing Dale sales, was shown in their poor Q4-11 results.Moreover, with the Wal-Mart dominbation and the upcoming Target introduction into the Canadian retail market, Sears will be left out in the same dust as soon-to-be defunct Zellers with the HBC relying only on cosmetics to generate profit as they have been picking up only the scraps in terms of profit margin on other products as shown by their up to 70% sales on the end-of season clothing & the 10 or 15% extra with HBC card almost every weekend now.

[glacier76]

Isn't Holt Renfrew considered a department store? If Nordstrom's is true, then that will be another department store. And there's the Winners a couple blocks from Pacific Centre. Besides, if someone from Downtown Vancouver really wants to shop at Sears, just take the Skytrain to either Richmond Centre or Metrotown.

[Wingding]

Now we have only one department store left in Vancouver - The Bay. I remember the old days, when we had the choice of Woodwards, Eaton's, Sears, and Hudson Bay.

Yes, that was awesome, alright. Having 4 huge department stores made living right in the West End incredibly convenient . . . you could find just about anything you'd buy on a day-to-day basis without really even having to drive anywhere. And tons of selection, plus having so many large chains butting heads still meant competitive pricing and some amazing sales.

[Wingding]

I'm actually quite surprised that Sears announced the closing of only 3 stores but I guess that further closures are upcoming.Their virtually non-existent marketing exposure, proven by their pathetic Boxing Dale sales, was shown in their poor Q4-11 results.Moreover, with the Wal-Mart dominbation and the upcoming Target introduction into the Canadian retail market, Sears will be left out in the same dust as soon-to-be defunct Zellers with the HBC relying only on cosmetics to generate profit as they have been picking up only the scraps in terms of profit margin on other products as shown by their up to 70% sales on the end-of season clothing & the 10 or 15% extra with HBC card almost every weekend now.

Sears isn't closing those three stores due to market conditions, they're closing them because the landlord gave them a huge sack of cash to take a hike so those spaces can be leased to Nordstrom. Most of the Sears stores in Calgary are still pretty busy places from what I've been seeing the past several months.

Just because you're not shopping there doesn't mean lots of others aren't. Sears remains tremendously popular with many segments of the market demographic.

[Wingding]

Isn't Holt Renfrew considered a department store? If Nordstrom's is true, then that will be another department store. And there's the Winners a couple blocks from Pacific Centre. Besides, if someone from Downtown Vancouver really wants to shop at Sears, just take the Skytrain to either Richmond Centre or Metrotown.

Neither Nordstrom or Holt are real department stores, they are primarily high-end clothiers with a few other lines. True department stores, like the Bay and Sears, carry a far broader range of products, including furniture, appliances, electronics, toys, hardware, tools, etc. At one time a typical Canadian department store could sell you just about anything you'd need to buy in a lifetime except for a car or real estate. The Bay and Eaton's even had full-line grocery stores in the basements of their larger urban stores.

[sandy_beach]

I'm much more interested to know who wanted those retail spaces so badly that Cadillac Fairview was prepared to offer $170M to Sears to relinquish its leases. Those are absolutely prime locations . . . extremely high-traffic.

It certainly wouldn't be Target taking on such costly, high-profile spots, and they already have the erstwhile Zellers space in Chinook Calgary.

Is Canada about to have yet another American entry into our retail market???

Well considering the Sears in Vancouver was only paying less than $2 per square foot thanks to the Easton's lease take over years ago... With a 170 million offer, how, could sears refuse! Cadillac fair view must have a big deal in the works. I can't speak for the other cities but it's guaranteed to most likely be Nordstrom or something very similar at the least for Vancouver. Nordstrom has been trying to get into Vancouver for quite sometime but there was no suitable real estate. On the bright side ; it spells the end to that filthy eye sore of a building!

[FunSave22]

On the bright side ; it spells the end to that filthy eye sore of a building!
I may be missing something. Why would this be the end of the building?

I agree the outside of the building is hideously ugly. I can't imagine why someone thought a 6 or 7 story concrete cube with extremely few windows was a good idea for a building in the middle of downtown.


I just don't think Nordstrom's can do anything much to improve the outside appearance of the building. There's no talk about tearing it down, is there?

[sandy_beach]

I may be missing something. Why would this be the end of the building?

I agree the outside of the building is hideously ugly. I can't imagine why someone thought a 6 or 7 story concrete cube with extremely few windows was a good idea for a building in the middle of downtown.


I just don't think Nordstrom's can do anything much to improve the outside appearance of the building. There's no talk about tearing it down, is there?

I think there is allot that can be done to that building, it's just a matter of what. There is no doubt that Cadillac Fairview will do something about the buildings image and wouldn't be surprising to see a major structural redesign to the place to match the rest of the mall. The very least they can do right now is power was the place :P. It will be interesting to see what ends up there! I believe the building is at it's maximum height due to restrictions..

http://www.vancitybuzz.com/image.php?src=http://www.vancitybuzz.com/wp-content/uploads/2012/03/Sears-Vancouver-Closing.jpg&w=650&a=t

[CharlieSheen911]

Sears made a wise decision here. $170,000,000 is a lot of money and those stores they relinquished we're worth giving up especially for that cash.

Whoever made this deal wanted those stores real bad. Sears didn't need to close any stores but it was a deal they couldn't refuse. I can't wait to see what is planned. Sears Canada stock price actually went up on this news. Looks like good times ahead for Sears.

[Wingding]

I may be missing something. Why would this be the end of the building?

I agree the outside of the building is hideously ugly. I can't imagine why someone thought a 6 or 7 story concrete cube with extremely few windows was a good idea for a building in the middle of downtown.


I just don't think Nordstrom's can do anything much to improve the outside appearance of the building. There's no talk about tearing it down, is there?

Given that Nordstrom have been chomping at the bit to get into the Canadian market I seriously doubt they're going to want to wait years for that Pacific Centre building to be torn down, replanned (with endless civic debate and delays) and then rebuilt.

When that building went up in the early 1970s it was considered very architecturally progressive, I suppose. That said, retail stores do not need any windows, other than on the ground floor, and I haven't seen any newer mult-storey retail stores with windows all the way up to the top.

All that place needs is a new veneer with a more contemporary design, and that shouldn't be tough assuming the structure is sound.

.

[Wingding]

I think there is allot that can be done to that building, it's just a matter of what. There is no doubt that Cadillac Fairview will do something about the buildings image and wouldn't be surprising to see a major structural redesign to the place to match the rest of the mall. The very least they can do right now is power was the place :P. It will be interesting to see what ends up there!

Nordstrom is ending up there, same as the other two locations Sears relinquished to C-F.

http://www.theglobeandmail.com/report-on-business/sears-closing-of-top-locations-opens-door-for-us-rival/article2357390/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2357390

[icemasta]

Nordstrom is ending up there, same as the other two locations Sears relinquished to C-F.

http://www.theglobeandmail.com/report-on-business/sears-closing-of-top-locations-opens-door-for-us-rival/article2357390/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Home&utm_content=2357390

In the article it also states:
"The retailer also is in talks with landlords of Toronto’s Yorkdale Shopping Mall and the West Edmonton Mall, among other top centres in the country, sources said."

Could they be looking to takeover Yorkdale Sears too?

[Wingding]

In the article it also states:
"The retailer also is in talks with landlords of Toronto’s Yorkdale Shopping Mall and the West Edmonton Mall, among other top centres in the country, sources said."

Could they be looking to takeover Yorkdale Sears too?

Maybe!

I don't think I've ever been in the Yorkdale Sears but in general I can't see them really fitting in with the Yorkdale crowd. I'm guessing they took that location over from Eaton's?

As far as WEM, well, I believe most Edmonton locals avoid WEM like the plague for quick day-to-day shopping trips, and I don't imagine the tourist shoppers are much inclined to be interested in dishwashers, Craftsman tools, or lawn tractors -- let alone Sears' traditionally unimpressive clothing lines. Probably another location they could well afford to be shed of.

[pkguy]

It's been years since I lived in Vancouver... Back in the 70's Sears downtown opened in Harborfront .. what's there now since they moved over to the Eatons Pacific Centre... btw it does look dirty from the picture above,, needs a good wash

[1226]

Oh please let this mean the demolition of that bulbous white behemoth.

[Wingding]

Oh please let this mean the demolition of that bulbous white behemoth.

Bothers you that much, does it?

:?:

[1226]

Bothers you that much, does it?

:?:

Not as much as if I lived or worked downtown but yes that thing is an eyesore.

[Wingding]

Not as much as if I lived or worked downtown but yes that thing is an eyesore.

Well, I'm betting demolition is out as it would take too long to start from scratch, especially with all the civic planning hurdles. But I'm sure Nordstrom and C-F will give it a pretty new face that will alleviate everyone's angst, so hopefully that will put an end to people jumping off the Lion's Gate over it. :)

[1226]

Well, I'm betting demolition is out as it would take too long to start from scratch, especially with all the civic planning hurdles. But I'm sure Nordstrom and C-F will give it a pretty new face that will alleviate everyone's angst, so hopefully that will put an end to people jumping off the Lion's Gate over it. :)

Well I wouldn't go that far, it's just a building. But it probably bothers me as much as any ugly building could.

You're probably right though. This whole scheme smacks of getting Nordstrom's in there and no doubt they don't want to wait 18-24 months to move in. I still wonder how CF plans to utilize the entire space (not that it's completely utilized now). Surely Nordstrom's is not going to take up more than say the first 3-4 floors or so.

[mslolo]

Fingers crossed we also get a Nordstrom Rack!

[Simaahoy]

An article I found via google

http://ottawa.openfile.ca/blog/curator-blog/breaking/2012/rideau-centre-sears-close-october-2012


UPDATE, March 2:

Peter Kovessy at the Ottawa Business Journal fleshes out the discussion about which large retailers might be interested in the Rideau Centre space. He quotes the Rideau Centre's general manager, Cindy VanBuskirk.

The departure of Sears could open up opportunities for retailers who currently do not have a presence in Ottawa, which Ms. VanBuskirk said in an earlier interview is sometimes due to the unavailability of space within the city's prime shopping locations.

Speaking at last fall's Ottawa Real Estate Forum, Ms. VanBuskirk said there are several retailers who should have Ottawa on their radar, such as Crate & Barrel, Victoria's Secret, J.Crew, Anthropolgie and H&M. She named several other retailers that she'd like to see come to Ottawa, including Juicy Couture, Brooks Brothers, Williams-Sonoma and Pottery Barn.

"The reason they are not here is either that they are just coming to Canada and just going into the Toronto market, and Ottawa is a year or two away or - as in the case of H&M - they haven't been able to get the right real estate here. They can't find the right location, with the right size at the right time."

[Wingding]

Everyone sure seems in a tizzy about H&M taking over these 3 Sears locations, but no one seems to get that H&M stores just aren't anywhere close to that league size-wise. Their current mall locations max out at around 25,000 square feet. By contrast, the typical Sears in a Canadian metropolitan location runs 125,000-250,000 sq ft. Nordstrom could use that up much space easily in Calgary or Ottawa, as its stores run as large as 380,000 sq. ft. The only place there will likely be plenty of extra space to dispose of would be in Pacific Centre, where the current Sears supposedly clocks in at a whopping 600,000 sq. ft.

[stovetop]

pacific centre sears IS massive. i believe they have either 5 or 6 floors that are accessible. because i think after the 4th floor, there's no 5th floor (always sealed off) and the clearance dept is on the 6th floor.

the building across from sears on robson is in the midst of being torn down too.


Off topic but does anyone know what will replace the big HMV store in downtown vancouver that was cleared out?

[1226]

pacific centre sears IS massive. i believe they have either 5 or 6 floors that are accessible. because i think after the 4th floor, there's no 5th floor (always sealed off) and the clearance dept is on the 6th floor.

the building across from sears on robson is in the midst of being torn down too.


Off topic but does anyone know what will replace the big HMV store in downtown vancouver that was cleared out?

Lots of speculation (Apple Store, Victoria's Secret, Abercrombie, Urban Outfitters among others) but I don't think anybody knows for sure yet.

[CharlieSheen911]

Sears Canada is not in trouble. This deal massively strengthened Sears.

[Gero43]

Sears Canada is not in trouble. This deal massively strengthened Sears.

I'm quite surprised about this news.
About a month ago I bought at Sears Ottawa and I made a comment about the lack of people in the store.
For my surprise, the cashier told me Sears Ottawa was the best selling or one of them in Canada.

[Wingding]

I'm quite surprised about this news.
About a month ago I bought at Sears Ottawa and I made a comment about the lack of people in the store.
For my surprise, the cashier told me Sears Ottawa was the best selling or one of them in Canada.

+1

I was at two Sears stores in Calgary yesterday and could not believe how dead it was in both of them. Even though it was during the daytime, midweek, you'd typically still see a fair number of people browsing the merch and lining up at the cashiers, but yesterday they might as well have been closed for what little activity that was going on.

If they've changed their pricing strategy, I sure couldn't see much evidence of it. There was the odd bunk of clothing in menswear with a little "topper" referring to new lower everyday pricing (or some such wording) but most of the stuff was the same price it's always been. Smoke and mirrors will carry a retailer only so far.

[blainehamilton]

Maybe!

I don't think I've ever been in the Yorkdale Sears but in general I can't see them really fitting in with the Yorkdale crowd. I'm guessing they took that location over from Eaton's?

As far as WEM, well, I believe most Edmonton locals avoid WEM like the plague for quick day-to-day shopping trips, and I don't imagine the tourist shoppers are much inclined to be interested in dishwashers, Craftsman tools, or lawn tractors -- let alone Sears' traditionally unimpressive clothing lines. Probably another location they could well afford to be shed of.


Quite true. I enter WEM for shopping purposes once or twice a year at most, sometimes less.

The sears Auto Service area became a Cactus Club Cafe that has been doing quite well from what I understand. I've eaten there and the food was okay, if overpriced. Hmmm. Kind of like the rest of Sears... :D

[CharlieSheen911]

How could any company turn down $170,000,000 in cash to close 3 stores which they could afford to close. Sears Chinook Center in Calgary is very close to Southcentre Mall which also has Sears (used to be Eatons) so all those customers will just shop at Southcenter, and Vancouver location was big and not profitable, and the Ottawa one is not a big loss. Basically Sears came out better with this deal by far. Sears is a great rural and middle class city store. Nordstroms wants to spend that kind of cash I say go for it. Sears did the smart thing here.

[samuel002]

when they are closing sears at pacific centre?

[CharlieSheen911]

when they are closing sears at pacific centre?

I believe by the end of October.