Retail Rethink

A10 | LOWER MAINLAND WESTERNINVESTOR.COM | AUGUST 2014 Retail rethink COVER | Discount and hybrid outlet malls are set to disrupt Metro’s traditional retail sector. More than 1.5 million square feet will be delivered in the next two years Ivanhoe Cambridge is building By GLEN KORSTROM & WI STAFF a 1.2-million-square-foot mall [email protected] slated to open in spring 2016. Plans call for half the mall to be filled with outlet tenants and half ew hybrid malls are set with regular stores. to shake up Vancouver’s John Scott, Ivanhoe Cam- Nretail scene. bridge’s vice-president of new Two currently under con- development said Tsawwassen struction will have stores that Mills’ tenant mix will resemble are branded with recognizable the other Ivanhoe Cambridge names but sell merchandise at malls that have 50 per cent outlet steep discounts. tenants: Vaughan Mills in Metro Until now, Vancouverites have Toronto and CrossIron Mills in had to go to the U.S. to find outlet Calgary. malls that have stores carrying Mid-market brands such as Ba- branded clothing from Ralph nana Republic, Hugo Boss and Lauren, Gucci and Nordstrom McArthurGlen is building a 375,000-square foot “luxury outlet” mall near the Templeton Canada Line Ecco Shoes operate outlet stores station on Sea Island in Richmond. It opens spring 2015. | MCARTHURGLEN while carrying a secondary name in each of those hybrid outlet such as Polo Ralph Lauren Fac- malls. have otherwise been forced to Monthly retail sales launching branded chains of out- tory Store. Tsawwassen Mills’ only an- watch other Canadian cities be let stores where their core brand Higher end brands are likely nounced tenant is the fishing, the nation’s pioneers in the outlet in B.C. crested to is featured but prices are much to choose to locate their outlet hunting and outdoor equipment shopping niche and to head south $5.49 billion in April, lower. stores at the luxury outlet mall seller Bass Pro Shops, which to malls such as Seattle Premium up 7.1 per cent from That’s why Holt Renfrew is as that Vancouver International will operate a full-priced store Outlets. April 2013 and capping active expanding its HR2 out- Airport Authority is developing in 145,000 square feet of space. Scott said that Ivanhoe Cam- three straight years of let store brand as Nordstrom is in partnership with London- Scott said 15 other anchor bridge plans to open a new string growth. with its Nordstrom Rack and Saks based McArthurGlen near the tenants will each take at least of malls in Canada that are filled Fifth Avenue is with its Off 5th Templeton Canada Line station 20,000 square feet of space and exclusively with outlet stores, Avenue outlet brand. on Sea Island in Richmond. join more than 180 other tenants starting with Niagara Falls, Win- CENTRAL 1 CREDIT UNION Executives believe it is worth That 375,000-square-foot mall in the mall. nipeg and Edmonton. the risk of cannibalizing the is set to open next spring and re- Vancouver has lagged behind “We don’t have a mall filled en- company’s core brand because semble McArthurGlen’s Euro- the rest of North America in hav- tirely with outlet stores planned the new sales channel more than pean outlet malls, where brands ing outlet malls and stores. for Vancouver,” Scott said. “We pays for itself, and the shoppers such as Burberry, Prada, Armani Guess and Tommy Hilfiger believe Tsawwassen Mills, as a who visit the outlet stores are and Michael Kors are prominent. opened some of Metro Vancou- hybrid, will provide the outlet ” different consumers from those No tenants have yet been re- ver’s only outlet stores several complement for us.” who shop at the core brand’s vealed in Richmond. years ago in Queensborough To compete with outlet malls, stores, said Dig360 senior re- Farther south, in Tsawwassen, Landing, but Vancouverites established fashion retailers are tail consultant and former Hugo Quality Investment/Owner-Occupier Opportunity country FOR SALE Owning an abc 0$3/(5,'*( IS AS EASY AS 1,2,3. 1. 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