|
Yesterday's news that Target Canada president Tony Fisher has been ousted certainly adds to the storyline of doom. But one analyst points out the reverse of such a move.  The moves make it clear that Target is not exiting Canada, “putting to rest that crazy notion, ” CIBC World Markets Corp retail analyst Perry Caicco tells us. Expect more aggressive pricing in the second half of 2014, Perry says, because the new company prez is a merchant, and pricing has been identified as a problem. The company also plans to name a non-executive chairman in Canada, who Perry expects to be a big name Canadian. And he anticipates a focus away from capital investment and further expansion of stores. Pictured: the Delta store.  As for that new Target Canada president, it's Mark Schindele, who was previously SVP of merchandising operations at Target Corp. That other non-executive chairman role will offer "counsel and support to the president" to ensure all strategies and tactics align with the Canadian marketplace, the company said in a statement.  Colliers director of retail consulting James Smerdon says the new Canadian boss will have a “very broad mandate to right the ship.” This morning's earnings report showing small gains in revenues is all well and good but “I think they will want more than small gains.” The stores under construction will likely get built, James says, but in the new year, once holidays sales are in, “we might see selective store closures.” He adds, “strong revenue gains can fix all of the problems at Target Canada.”  The company reported a $1B operating loss the first year up here, as it has aggressively opened 127 stores, with more scheduled to follow. The company this morning reported a surge in sales in Canada in the first quarter (the colder winter months were a killer, although April was stronger) but an operating loss for Q1 of $211M, up from $205M a year earlier. Sales jumped to $393M from $86M a year earlier, keeping in mind they only had 24 stores open during the same period a year ago. |
|
|
 |
E-Commerce Drives Industrial Shift The trouble at Sears Canada and Target could make one think everybody is sitting home not buying things. (That would make for some stale bagels.) Avison Young CEO Mark Rose says its analysis of 35 industrial markets in the US and Canada says otherwise. "Retail is not on life support,” he tells us. What we are seeing is a shifting of the industry's tectonic plates—consumers are shifting to mobile purchasing and same-day or next-day delivery, causing a change in distribution. Real estate is shifting from retail to industrial product. Snapped with Mark is AY's Texas team at the HP Byron Nelson Championship in Dallas last week—Art Green, Greg Langston, and Rand Stephens.  Avison Young VP Ryan Kerr says the relatively recent emergence of demand for order fulfillment centres in Metro Vancouver “will continue to play a significant role." According to AY's spring industrial research, vacancy in the region's active 187M SF industrial market rose slightly to 3.7% at the end of Q1 2014 from 3.5% a year earlier (but down from 3.9% in fall 2013) due primarily to the addition of almost 2.7M SF to the region's industrial inventory in that 12-month period. |
|
|
ICSC VancouverWe've been on the ground at ICSC RECon in Vegas this week and stopped by the McArthurGlen Group booth for an update on its upcoming Vancouver Airport outlet project from development director Joan Jove. The design will be based on the already European-style of Vancouver's architecture, Joan says, and UK-based McArthurGlen seeks to make it experiential, too. Large playgrounds, art installations, and lit-up fountains will be installed to activate the space day or night. Phase 1 of the 375k SF project will open around this time next year, Joan says, with Phase 2 expected to deliver late 2016 to early 2017. |
 |
|
Un-Can-Y Art |
||
 Employees from Triovest Realty Advisors helped form one of the teams in this Canstruction event, a canned food sculpture design competition supporting the Greater Vancouver Food Bank Society. Triovest created a Daft Punk-inspired sculpture to tie into this year's theme, Around the World. |
 Over 9,200 cans of food were used for the sculpture. Over 20 teams of professional designers, architects, and engineers battled it out to complete sculptures in just seven hours. Once the sculptures are taken down, all of the food will be donated to the food bank. (With the emergence of micro-units, we're surprised nobody tried to take up residence in the sculptures.) |
|
|
Calling All ReportersWe're looking for the Bisnow face of Canada (and it doesn't have to be as beautiful as Ryan Gosling's or Rachel McAdams'). We're in need of a Vancouver/Toronto commercial real estate reporter, with a strong journalism background and a passion for writing. You have the gift for delivering groundbreaking real estate news in our breezy but super-informative manner. You live to break stories, work a beat, travel, uncover market trends, and rub elbows with the most powerful people in the industry. Send your journalism-oriented resume to: matt.black@bisnow.com. |
 |
|