Yahoo Finance 'Too little too late': Sears Canada to open pop-up in Toronto’s Queen West
(AP Photo/John Minchillo)
In recent years, Queen Street West has become associated with Toronto’s creatives and ultra-hip, with the New York Times going as far to say it’s a neighbourhood “like no other.”
But that was 2014. And this edge continues to fade as corporate giants such as Aritzia, Lululemon, H&M and now Sears Canada try to cash in on its appeal.
The struggling department store, which isn’t exactly known for being fashion-forward, is set to open a pop-store in the area this weekend.
“This pop-up shop shows the savvy, fashionable and cost-conscious urban Toronto shopper that we are a hot new destination with great-quality merchandise and amazing prices,” Brandon Stranzl, executive chairman of Sears Canada, said in a press release.
“Some Torontonians have never experienced Sears Canada, and can now re-discover us and experience the wow.”
Sears Canada is expected to release its annual results this month, but posted a net loss of $120 million in the third quarter of last year.
The company is a separate entity from its U.S. counterpart, which owns 11.7 per cent of its shares. There have been reports that Sears in the U.S. may close due to bankruptcy.
With its pop-up shop, which is slated to stay open for a few months, Sears Canada is trying to counteract years of decline of its longstanding brand.
The initiative is being used to unveil its new trendy fast-fashion division called The Cut @ Sears. The line includes a variety of clothing, essentials and homeware.
Traditional department stores have been struggling to compete with discount stores, such as Winners and Marshalls.
To mimic their appeal, The Star said that the pop-up uses tags that include “compare at” prices.
Sears Canada said the line will be offered at 30-to-60 per cent off.
“Off-price retail is a hot trend across Canada. It allows us to extend our mandate to provide customers some of the best known designer brands in the world at the most affordable prices,” said Stranzl.
“The product has been in select stores for just a few months as part of a soft launch, and the results so far are very encouraging. This is a pivotal move for the Sears Canada business.”
The retailer has also consolidated its vast offerings of apparel brands into its one line.
“We used to have 64 private-label brands in this store,” Stranzl told The Star.
“Each label didn’t really have a clear positioning or unique selling proposition, so we said, ‘Look, let’s consolidate all of our private brands into one unique selling proposition and one positioning statement for consumers.’ So if it has a Sears label on it, it means this is an amazing quality product from the very best factories in the world.”
The Cut line will also be available in Sears Canada’s traditional stores, as well as an “s” brand, which targets millennials.
John Williams, senior partner at retail advisors J.C. Williams Group, said Sears Canada’s move was reminiscent of Target selling its wares at pop-up shops before opening permanent brick-and-mortar locations in Canada.
And we all know how that story turned out.
“It’s probably timely. It’s probably fashion-right and it’s probably value-right,” Williams told The Star.
“It’s a great idea, but it’s probably too little too late.”
