5Q: Peter Simons, CEO of La Maison Simons

Near the end of our conversation, Peter Simons, chief executive of La Maison Simons Inc, wonders aloud if there's been too much focus placed on him in this interview as opposed to his staff, which has helped the fashion retailer remain an institution in Quebec City for 173 years. 
 
It's a bit "weird" stealing all the spotlight, says Simons, 49, and equal credit must be given to his brother, Richard, vice-president of buying. Also critical are the 2,000-plus employees working on the sales floor to head office, he adds.
 
As a fifth generation leader of the family-run shop he understands the importance of valuing people. Paying special attention to workers and customers is essential as Simons undergoes an aggressive national expansion just as competition in Canada's retail landscape is heating up with U.S. entrants like Target, Nordstrom and Saks expected to swallow share.
 
Known for its mix of cheap-chic private label fashions and higher-end brands such as Stella McCartney and Paul Smith, Simons currently operates nine stores. But only one is located outside Quebec at the popular West Edmonton Mall, which houses a permanent art installation designed by Canadian architect Philip Beesley titled "Simons Aurora" that is inspired by aurora borealis.
 
Simons currently has deals to open stores in Ottawa and Vancouver within the next three years and is also hoping to eventually open as many as four shops in Toronto, possibly at various sites that Sears is vacating.  
 
Did you always know you'd be in the family business?

Was it always predestined? No, not at all. My parents were really great. They didn't put any pressure on us. It really wasn't until my last year at the Richard Ivey School that I made a decision after talking to my father to go into the family business.
 
How are you prepping successive generations to run the business?

It's quite early still. My brother's children are a little older than mine. We've talked a bit about it. I mean, really, I'm focused on making good kids that have good values that find their passion in life.
 
Do you think what you do in Quebec has a chance outside the province. How is the Edmonton store being received?

I believe what we do will resonate outside of the province. Edmonton has certainly proved that right. There's a great reception to fashion, designer and higher-end merchandise. That said, we have our work cut out for us. It doesn't just fall from the sky.
 
There's a lot of buzz around Sears and whether you'll move into the Toronto Eaton Centre. Are you in discussions to do that?

Our interests have been expressed. We're always in discussions with Cadillac Fairview and other people in the real estate market for sure. Are we currently in deep discussions? We've been interacting with the owners.
 
What about other locations in Toronto and beyond?

We're in deep discussions with Oxford (Properties) and I would really love to do business with them. I think they're a dynamic, high-class organization. I'm very optimistic that we'll commit to one another very soon. I have some opportunities across the country from the GTA to Calgary to out East.
 
Why is it important now to have a national brand?

There's the ultra local and the ultra national. We believe there is place for a truly Canadian retailer in the large scale, specialty store segment. If we are going to compete against the larger international players we need to have a little more coverage in order to support essential initiatives like our web business.
 
You spent more than $40 million building the Edmonton store. Will the others be as costly?

The Edmonton store was a little out of control. We wanted to make a great store and we put our heart and our soul into it. We put everything we had into it. We wanted to deliver a world-class store. If we're going to expand we have to be able to use our capital a little more efficiently.
 
Who do you see as being your main competitors?

I'm watching Target. They're going to get their act together. I'm thinking about Nordstrom. I'm wondering where Amazon.com is going in the fashion business.
 
How worried are you?

We're a little mouse. It's a jungle filled with elephants and tigers. They're coming to Canada and they want to crush us all. A lot of us have gone bankrupt. In that context, I wake up every morning and I worry about a lot. We're going to continue being scared. The minute you get your head up in the clouds you're dead.
 
Do you see a division in the retail industry in terms of price point?

There is a polarization in the market, but the consumer is quite sophisticated in the ability to mix and match and travel over the spectrum. Our customers enjoy being able to mix very competitive price points in private labels with designer merchandise and put together their own looks.
 
How does being a private company play a role in your competitive edge?

We feel by staying private, there's a lot of risk, a lot of pressure on our shoulders. If we can handle that, I think it can give us a strategic advantage to allow us to make some unique choices about how we develop our business and how we balance out the interests of people we work with, our customers, our suppliers.
 
Would you consider going public?

No. Right now there's no plans to go public. We're not trying to build a gigantic corporation. We're trying to roll out a quality business, a quality brand. When your name is on the door, you think a little bit differently about the business.
 
Turning to e-commerce, what are the big hurdles there?

E-commerce is not a simple thing to execute. It's not just whipping stuff up on the web. It's a massive integration. It's really a question of tightening up the integration between our bricks and mortar. We have fast-moving inventory so it rolls over quickly. It's very challenging to create content economically.
 
Who do you go shopping with and do you have a stylist?

I don't have a stylist. Well, my brother could be my stylist. He's way more stylish than I am.
 
What designers do you like?

I consider myself pretty mainstream, but I do have a little fashion side to me. Our private label is great, but then I move up to some mid-range stuff like Tiger of Sweden -- I bought a cool suit in burgundy (recently) -- right up through to Jean Paul Gaultier. I'd like to buy more Paul Smith, but the sizing doesn't really go that tall (Simons is 6 feet 5 inches) in some of the stuff.
 
*This interview has been edited and condensed