Shopping Discussion

Which retailer in Canada will go bankrupt next?

  • Last Updated:
  • Oct 25th, 2020 5:25 pm

Poll: Which canadian retailer will go bankrupt next?

  • Total votes: 735. You have voted on this poll.
Aldo
 
69
9%
Le Chateau
 
261
36%
Lowe's
 
35
5%
The Source
 
150
20%
Canada Computers
 
41
6%
Home Hardware
 
30
4%
The Brick
 
46
6%
Léon's
 
33
4%
Winners
 
17
2%
Staples
 
53
7%
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ferkel wrote: Tim Hortons in the GTA silently starting to close .. Leslie and 16th closed
Not much chance of foot traffic at that location and with a lot of offices across the street, closed or working from home, not really a surprise.

Downtown Toronto, Wellington and University, they are in the process of building out a new location. Guessing a corporate store that was probably planned for awhile as why would anyone start a new business at this point.
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Sherlock115 wrote: I think they are going to die.Giant Tiger is closing in Red Deer this month.They closed up a bunch of stores before Target came to Canada.Bad mistake opening up near Walmart in Red Deer in an old Brick furniture store.
Ok so I did some research into this and the stores that are closing are not owned by Giant Tiger themselves, instead they were franchised to the North West Company. Because of general lagging profitability it seems that North West decided to get out of the business of operating stores in the south to focus on their operations in the north (presumably because their norther stores are more profitable). Because of this they sold 34 stores back to corporate, kept 6 and closed 6. Red Deer was one of the 6 to close presumably because that specific location was not profitable. This all however doesn't mean the chain is dying, healthy companies close under-preforming stores all the time. Metro did this back in 2015 with a few of their branded Metro stores in Ontario but I don't think anyone considers them to be dying. Plus if Giant Tiger was going under they would have not spent the millions to buy the 34 stores.

Source: https://www.winnipegfreepress.com/busin ... 64002.html
https://www.globenewswire.com/news-rele ... idend.html
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jacnel wrote: Plus if Giant Tiger was going under they would have not spent the millions to buy the 34 stores.
Agreed. Plus also, all that investment in a new corporate headquarters (& plan to hold 700 employees there instead of the current 400): https://www.canadiangrocer.com/top-stor ... tore-88016
Also: https://www.newswire.ca/news-releases/g ... 65345.html
Last edited by playnicee1 on Aug 11th, 2020 10:34 am, edited 1 time in total.
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playnicee1 wrote: Some interesting news about Giant Tiger.
If their plan is to go away, why expand the head office? "a “carefully planned growth strategy” that will see it open 10 to 15 stores per year." https://www.canadiangrocer.com/top-stor ... tore-88016
However
This may not include places like Winnipeg, where many stores are being sold back to GT head office with the remaining 12 being squashed down to 5, and some (or all) rebranded as Valu lots. https://www.canadiangrocer.com/top-stor ... ed-2-93574
(Long story short: GT might be doing well in Ontario, but not so much in Western Canada)
Yes I looked into this and it appears to be due to a restructuring at the North West Company and less to do with Giant Tiger themselves. North West is probably used to the high profitability of their northern stores (since there's no competition up there they can charge what they want), so they probably set higher expected profitability metrics for their stores. However this doesn't work well in southern areas as competition is so fierce. What I think happened was that the North West Company looked at the stores they owned and decided since they make more money operating stores in the low-competition northern markets over the high competition southern markets it would be better to just focus on the north and divest themselves of the south.

But I agree a dying company doesn't spend millions on a fancy new headquarters and announces their intention to open 10 new stores a year.
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playnicee1 wrote: Agreed. Plus also, all that investment in a new corporate headquarters (& plan to hold 700 employees there instead of the current 400): https://www.canadiangrocer.com/top-stor ... tore-88016
Also: https://www.newswire.ca/news-releases/g ... 65345.html
Yep, all their metrics show expansion and profitability. This is what annoys me, a lot of people look at store closings and assume that the company is dying, but this isn't always the case.
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jacnel wrote: Yep, all their metrics show expansion and profitability. This is what annoys me, a lot of people look at store closings and assume that the company is dying, but this isn't always the case.
I'm in Toronto. My complaint is not enough locations. 3. All tough to get to, unless you're lucky enough to be living in the area.
They need to open more GT locations in Toronto. That would be nice.
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playnicee1 wrote: I'm in Toronto. My complaint is not enough locations. 3. All tough to get to, unless you're lucky enough to be living in the area.
They need to open more GT locations in Toronto. That would be nice.
I agree, Giant Tiger pretty much ignores cities but I think they're slowly planning on expanding to these areas. Their focus right now seems to be to take over rural areas (since that's always been their bread and butter) then expand into urban areas.
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Feb 22, 2016
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reddyflag wrote: Crappy Chinese Tire.
Fixed for you. There's nothing Canadian about them other than the geographic locations of their stores, and "crappy" describes their products and auto service business.
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Canadian Tire has got to be the worst retailer.. amazed that people step foot inside
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Nov 15, 2008
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reddyflag wrote: Canadian Tire. Although some disagreed when I said it in April, I'll say it again.


https://www.ctvnews.ca/business/hbc-can ... -1.5059416
Good take, when the pandemic hit, CT's website laid down and died. HBC has the second-worst website (technology, functionality, fulfillment). The problem with both this that they ship from store so much (everything in the case of CT), their shipping fees don't cover costs, and individual stores can be loathe to fulfill orders on account of this (sitting on them or cancelling them, but e.g., in the case of HBC if you doggedly reorder an item only in stock at one store, they will eventually sell it to you. It might take 1/2 dozen tries but you can win.)

I could walk to my CT if the 401 wasn't in the way, and they are loathe to ship to me because I am so close (and I am loathe to go if I have to get in a car just to cross the hwy). They have made me wait 2 weeks + before shipping and I think they were hoping I would get my ass down there and pick up and cancel the order.

With both CT and HBC, the consumer has to stubbornly force them to behave like an online store against their will.

I don't think luxury stores/malls are as safe as they claim. In the US they are being singled out and taking the brunt of the rage of protestors. We don't have the same social unrest, but I think we share some of the same underlying sentiment: less respect for the wealthy and their status symbols. Mass merchandisers like Walmart have done well, and I think shoppers are spending their dollars more practically. The Kardashian luxuries-peddling operation is losing its luster in popular culture. I don't buy that the luxury sector is secure.

I think with the unrest in the US we are going to go through another dry spell on imports and we won't even see the "luxury" tp that comes out of the US (Charmin, Cottonelle) again, never mind everything else people don't need. The cost of basic needs is up and people have different pressures on their budgets and surely less appetite for luxury.
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reddyflag wrote: Canadian Tire. Although some disagreed when I said it in April, I'll say it again.


https://www.ctvnews.ca/business/hbc-can ... -1.5059416
Idk this analyst isn't very good, he's just saying "they had a loss and their website isn't great so they gonna die lol" which IMO is a bit far fetched. HBC has invested a lot into ecommerce with their new automated warehouse but Canadian Tire is lacking. Do both companies need a lot of work? you bet. Do I think they're dying anytime soon? HBC maybe, Crappy Tire? since they're a franchised business probably not, if anything they may sell off some minor brands (like Party City, not many parties happening nowadays).
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May 31, 2008
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Toronto
jacnel wrote:
Idk this analyst isn't very good, he's just saying "they had a loss and their website isn't great so they gonna die lol" which IMO is a bit far fetched. HBC has invested a lot into ecommerce with their new automated warehouse but Canadian Tire is lacking. Do both companies need a lot of work? you bet. Do I think they're dying anytime soon? HBC maybe, Crappy Tire? since they're a franchised business probably not, if anything they may sell off some minor brands (like Party City, not many parties happening nowadays).
I agree- the analyst doesnt seem to know the reality on the ground. HBC's warehouse is VERY quick. The ship from store is a bit slow, but the warehouse is quick. The HBC app is pretty decent, especially compared other canadian retailers. We know that HBC will close some stores- but that was part of the plan pre-covid19 when they went private and were going to close the under performing stores anyways. I do think HBC is struggling, but they are probably getting some Govt assistance either on rent or wage subsidy. I imagine before year end they will announce alot of store closings, probably keep the major locations open though. I dont think they will go all out on holiday season. Most retailers canceled their falls order as they had no idea what was going to happen.

Like the above commentator above said, Canadian Tire will be fine- just wait till Ice skates and toboggans will be new bikes in the winter time.
I think Party City will struggle (whos have parties now..halloween?..forgetit..) Helly Hansen (overpriced coats). Marks will be fine, but Sportchek has not been profitable for awhile now. I do think they will close alot of their stores. They have someone new running it- but i think its either turn it around or shut down time. The value of these businesses have plummeted..CT will likley have to take impairment charge on some of these business.
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submalst wrote: I agree- the analyst doesnt seem to know the reality on the ground. HBC's warehouse is VERY quick. The ship from store is a bit slow, but the warehouse is quick. The HBC app is pretty decent, especially compared other canadian retailers. We know that HBC will close some stores- but that was part of the plan pre-covid19 when they went private and were going to close the under performing stores anyways. I do think HBC is struggling, but they are probably getting some Govt assistance either on rent or wage subsidy. I imagine before year end they will announce alot of store closings, probably keep the major locations open though. I dont think they will go all out on holiday season. Most retailers canceled their falls order as they had no idea what was going to happen.

Like the above commentator above said, Canadian Tire will be fine- just wait till Ice skates and toboggans will be new bikes in the winter time.
I think Party City will struggle (whos have parties now..halloween?..forgetit..) Helly Hansen (overpriced coats). Marks will be fine, but Sportchek has not been profitable for awhile now. I do think they will close alot of their stores. They have someone new running it- but i think its either turn it around or shut down time. The value of these businesses have plummeted..CT will likley have to take impairment charge on some of these business.
Not sure how many stores HBC can close, I guess a few locations in the states or so, here in Canada they’re already fairly limited.

I hope SportCheck will be fine mainly because I shop there but also because they’ve picked up so many leases that their demise will cause a bunch of problems.
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jacnel wrote: Not sure how many stores HBC can close, I guess a few locations in the states or so, here in Canada they’re already fairly limited.

I hope SportCheck will be fine mainly because I shop there but also because they’ve picked up so many leases that their demise will cause a bunch of problems.
Anchor-sized leases too.

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