Despite recent economic news, retail expansions still on plan

This week I had the privilege of moderating the Retailer Podium at the always tremendous ICSC Whistler Conference.  Working with a line-up of ten outstanding retail executives and on the heels of a keynote by  ex-Canucks' GM Brian Burke, a full house was assured.

The diverse group of presenters all conveyed a sense of optimism and continued opportunities for store growth.

In this session, the ten retailers described their Canadian growth plans and real estate needs to a room full of leading developers, leasing agents and retail real estate pros.  

Some, such as Hallmark Canada and A&W were focused on refreshing the brand with new formats, while Best Buy Canada continues to rollout Best Buy stores (including new format sizes) with Future Shop in underserved areas. Hallmark in particular expressed a theme common to several presenters and certainly one gaining momentum across leading retail: the idea of building community.

Presentations by Great Clips (USA), Mavi Jeans (Turkey), and Michael Hill Jewellers (Australia) on their expansion plans reminded us how much global competition is still flowing into Canada – a relatively under-competed Western nation.  Mavi in particular illustrated how the US is no longer the only place to watch for emerging global challengers.

Yyoga and Pebble Creek Design are terrific entrepreneurial stories.  Small retail is not all mom-and-pop (although plenty of it is).  Most retail concepts begin small with a vision to grow. In fact, much innovation in retail comes from growth-oriented startups, able to create without cumbersome cultures and infrastructure. These two are no exception.  Yyoga, expanding now in the Lower Mainland of BC, is poised to consolidate the top yoga studios across Canada into a common brand.  Pebble Creek is delivering customizable furniture to shoppers in its 6 stores (most of which have opened in the past year).

Coast Capital Savings was the first financial institution to present in the long history of Retailers Podium.  They are embracing a philosophy of becoming truly ‘retail’ in its branches. Its new store format looks promising.  I hope they continue to force themselves out of the box, because "retail banking" generally tends to be an oxymoronic euphamism for "forcing our customers into our operations".

Finally, Franworks is a franchiser covering 4 food and beverage concepts growing from a base out of Calgary.  Original Joes is its restaurant brand and reinforces the tradition of strong dining concepts that have emerged from the West.

So for these ten businesses at least, retail expansion is alive and well.  However, discussions with attendees suggest there are a couple of emerging impediments retail store growth.  First, lending for development has shrunk considerably in the past few months, although many feel temporarily. 

Second, in many areas much of the low hanging fruit in terms of prime retail space has been grabbed, and more growth retailers are seeking the fewer remaining plum locations in given markets (particularly major markets).  Still, a number of impressive developments are coming on line in the next few years across the country.