[matrix]

I remember reading somewhere that Zellers was not a part of that deal strangely enough. I will have to see later where I read that so grain of salt of course, but the idea surprises me

Canadian Tire will acquire trove of Hudson’s Bay brands, but not Zellers

$30-million deal to include profusion of trademarks, logos and slogans, as well as private labels

www.theglobeandmail.com

 

[TossYourJacket]

Yes, I mentioned it a couple of pages back:





The strategy:

1. Canadian Tire returns to its roots as a hardware, car supply and outdoor store, freeing up floor space to focus on the type of merchandise its customers expect to find there.

2. Hudson's Bay takes Canadian Tire's housewares, sells Marks and Hudson North clothing and opens Canadian Tire Corp. to the Beauty space.

3. It's not clear if Zellers is a part of the IP acquisition because HBC let the trademark lapse, but if CT can use it, they can get into grocery and affordable goods i.e. Walmart.

Most malls can support all three of these, with a common loyalty points program driving traffic to all of CT's properties.

I love the idea, but I think that the issue with removing housewares from CT is that the reason the brand got into housewares was because the idea was that they needed parts of the store that would appeal more to women (You can question if that's based on a stereotype or reality, but that was the idea). Also I think at this point, people do expect to find housewares at CT. They have sold them for so long that it's not like someone walks into a Canadian Tire and is like "I had no idea they sell Kitchen Aid Mixers!" (I'd also argue that the fact they put the kitchen section front and centre in their stores suggests it makes them a lot of money).

While I like the idea of having more targeted individual brands, I doubt we get more than HBC as smaller set of stores (or even just store-within-a-stores) that sell (most likely) just stripes merchandise, maybe also Hudson's North clothes, but I don't think that brand ever had good name recognition, so they might not bother with it.

 

[RGB_11]

I remember reading somewhere that Zellers was not a part of that deal...

For this, we also go back to 2021, a time when Bay was still alive enough to sue for using the Zellers name without their permission.
TODAY, it is not clear who would sue for using the Zellers name. There's no Bay to stop them...Can Canadian Tire stop them?? I doubt it... From 2021: https://www.cbc.ca/news/business/zellers-hbc-trademark-1.6216293

 

[lenaitch]

Yes, I mentioned it a couple of pages back:





The strategy:

1. Canadian Tire returns to its roots as a hardware, car supply and outdoor store, freeing up floor space to focus on the type of merchandise its customers expect to find there.

2. Hudson's Bay takes Canadian Tire's housewares, sells Marks and Hudson North clothing and opens Canadian Tire Corp. to the Beauty space.

3. It's not clear if Zellers is a part of the IP acquisition because HBC let the trademark lapse, but if CT can use it, they can get into grocery and affordable goods i.e. Walmart.

Most malls can support all three of these, with a common loyalty points program driving traffic to all of CT's properties.

That would likely only work in urban locations where they can justify multiple locations. If they tried to break product lines out into other stores, unless that same franchisee handles or can afford multiple locations, there will be battles over the lost product lines.

 

[nightstreak]

That would likely only work in urban locations where they can justify multiple locations. If they tried to break product lines out into other stores, unless that same franchisee handles or can afford multiple locations, there will be battles over the lost product lines.

Good point for sure, though I do think that corporate has all the power in the relationship over franchisees and they'd have to carry what they had to carry.

I have 2 Canadian Tires near me, though I'm most often at the one on Bay/Dundas and I'll say this: I'm embarrassed for the franchisee and Canadian Tire Corp that that is the face they show in their flagship downtown store. There is inventory piled high up to the rafters, they've stuffed the aisles with more inventory above head height and aisles often become dead ends with skids left at the end of aisles "temporarily" that just end up living there. It's claustrophobic, it's unsightly and it's likely against fire code.

I think corporate is to blame here because they mandate that every store carry a long list of SKUs that just don't fit in smaller stores but have to fit—somehow. The larger stores could probably have a Hudson's Bay's store-within-a-store model for housewares and clothing while smaller downtown stores or those within malls could have a Hudson's Bay in its own space nearby.

 

[officedweller]

Ruby Liu got consent from Triple Five for the West Edmonton Mall store and another on the way.

Originally, her plan said the department stores would include dining, entertainment, retail and recreational activities but recently, plans she submitted to court dropped those elements.

Most landlords are vehemently opposed to her moving in and have criticized her for not providing enough information about the business she intends to build in their properties.

However, Bay lawyer Ashley Taylor revealed Thursday that Liu has been generating some support. He told Osborne that she has entered into a consent agreement with Triple Five Group, which owns the West Edmonton Mall.

Taylor said Liu is "very close" to signing a similar agreement with another landlord he did not name.

https://www.thecanadianpressnews.ca...cle_dcb14667-1bf8-5432-876b-8c292a4925cf.html

 

[lenaitch]

Good point for sure, though I do think that corporate has all the power in the relationship over franchisees and they'd have to carry what they had to carry.

I have 2 Canadian Tires near me, though I'm most often at the one on Bay/Dundas and I'll say this: I'm embarrassed for the franchisee and Canadian Tire Corp that that is the face they show in their flagship downtown store. There is inventory piled high up to the rafters, they've stuffed the aisles with more inventory above head height and aisles often become dead ends with skids left at the end of aisles "temporarily" that just end up living there. It's claustrophobic, it's unsightly and it's likely against fire code.

I think corporate is to blame here because they mandate that every store carry a long list of SKUs that just don't fit in smaller stores but have to fit—somehow. The larger stores could probably have a Hudson's Bay's store-within-a-store model for housewares and clothing while smaller downtown stores or those within malls could have a Hudson's Bay in its own space nearby.

Canadian Tire tried the store-within-a-store model in a few places but I don't know if they still do it. I was in one in either Hearst or Kapuskasing (don't remember) and it was awkward because each had their own check-out so you had to pass through the CT check-out with Mark's goods you had already purchased.

I totally agree with the 'clutter'. They seem to want to operate a warehouse-style store without the warehouse-style set-up. I don't know what qualifies as "flagship" in the retail world but they have to somehow accommodate from their largest footprint (Ottawa and Welland apparently) at 135Ksf to their smallest - Nipigon - at 3Ksf.

 

[Richard White]

Canadian Tire tried the store-within-a-store model in a few places but I don't know if they still do it. I was in one in either Hearst or Kapuskasing (don't remember) and it was awkward because each had their own check-out so you had to pass through the CT check-out with Mark's goods you had already purchased.

I believe they tried this at Bay and Dundas.

IIRC you used to be able to walk between Marks and Crappy Tire on the lower level

 

[officedweller]

RioCan pulls financial support for some properties in Hudson’s Bay joint venture

“We can report that RioCan has elected not to participate financially in 5 of 12 assets,” said chief financial officer Dennis Blasutti on a conference call Friday discussing the company’s second-quarter earnings.

“What it means is that we will not put any more money into the assets, in any form.”

RioCan was in a joint venture with Hudson’s Bay that held the properties of 12 Hudson’s Bay locations, but all stores closed at the start of June after liquidation sales.
....

The five locations include the Square One Shopping Centre in Mississauga, Ont., Scarborough Town Centre in Toronto, the downtown Calgary HBC store, and the Carrefour Laval and Promenades St-Bruno locations in Quebec.

The company continues to review the other locations in the joint venture, said Gitlin.

https://www.bnnbloomberg.ca/busines...in-second-quarter-despite-hudsons-bay-strife/

None of these were bid for by Ruby Liu.

The 12 properties under the RioCan-HBC joint venture entity and the JV's ownership interests in them are:

• Square One - Mississauga, Ontario (Leasehold)
• Scarborough Town Centre - Scarborough, Ontario (Leasehold)
• Yorkdale - North York, Ontario (Leasehold)
• Carrefour Laval - Laval, Quebec (Leasehold)
• Les Promenades - St. Bruno, Quebec (Leasehold)
• Downtown Vancouver - Vancouver, British Columbia (Freehold)
• Downtown Calgary - Calgary, Alberta (Freehold)
• Downtown Montreal - Montreal, Quebec (Freehold)
• Downtown Ottawa - Ottawa, Ontario (Freehold)
• Devonshire Mall - Windsor, Ontario (Freehold)
• Georgian Mall - Barrie, Ontario (Freehold, 50%)
• Oakville Place - Oakville, Ontario (Freehold, 50%)

https://storeys.com/riocan-hudsons-bay-joint-venture-receivership/

 

[Richard White]

RioCan pulls financial support for some properties in Hudson’s Bay joint venture

https://www.bnnbloomberg.ca/busines...in-second-quarter-despite-hudsons-bay-strife/

None of these were bid for by Ruby Liu.


https://storeys.com/riocan-hudsons-bay-joint-venture-receivership/

@Northern Light

On a scale of 1 to 10 where one is an open secret and 10 requires you to kill me what are the chances this has anything to do with Canadian Tires news last week pertaining to the bay?

 

[nightstreak]

@Northern Light

On a scale of 1 to 10 where one is an open secret and 10 requires you to kill me what are the chances this has anything to do with Canadian Tires news last week pertaining to the bay?

Is level 5 where "it puts the lotion in the basket" or thereabouts? Ok, ok. I don't own a well nor do I like lava beans so I'll give this one to you for free: Canadian Tire's interest in "a handful of Hudson's Bay leases" isn't connected with reviving the department store. They're seeking to fill in gaps in their brick & mortar presence where there is no Canadian Tire nearby. 7 of these malls fit that description. RioCan gets paid if Canadian Tire buys out those leases.

 

[Richard White]

Is level 5 where "it puts the lotion in the basket" or thereabouts? Ok, ok. I don't own a well nor do I like lava beans so I'll give this one to you for free: Canadian Tire's interest in "a handful of Hudson's Bay leases" isn't connected with reviving the department store. They're seeking to fill in gaps in their brick & mortar presence where there is no Canadian Tire nearby. 7 of these malls fit that description. RioCan gets paid if Canadian Tire buys out those leases.

That makes sense.

STC would be the perfect location for a proper, polished Canadian Tire.

 

[nightstreak]

That makes sense.

STC would be the perfect location for a proper, polished Canadian Tire.

Also, there's some movement on what to do with Bay and Dundas. That store is too small for a proper expansion and there's no room to grow on the site—unless Best Buy moves. You know the Winners at The Tenor...the former Future Shop.... yeah, putting those pieces together and I'll get back to you in a jiffy.

Canadian Tire + Best Buy

 

[Richard White]

Also, there's some movement on what to do with Bay and Dundas. That store is too small for a proper expansion and there's no room to grow on the site—unless Best Buy moves. You know the Winners at The Tenor...the former Future Shop.... yeah, putting those pieces together and I'll get back to you in a jiffy.

I can't see them moving to the former winners space. It has no ground level access.

 

[Northern Light]

@Northern Light

On a scale of 1 to 10 where one is an open secret and 10 requires you to kill me what are the chances this has anything to do with Canadian Tires news last week pertaining to the bay?

Lets try this................the divestiture of the Riocan joint venture impacts more than one potential player for the spaces.

I will leave to you to infer which ones.