Sears Canada closing stores?

[EdCase]

Oh Walmart are astute alright; drive wages lower to the point where people just have to buy low-quality merchandise at their stores!

WalMart in Canada pays about the same (no less than minimum wage) as most other retail outlets - big box or small local. Most retail does not offer any benefits so that's not an argument, either. When I worked there a long time ago I was paid quite well for the job I was doing. Another similar retail outlet in town paid me the same wage.

GF - I was referring to the impact that Walmart has had on overall wage levels in the community through the elimination of good quality manufacturing jobs in North America, not the wages they pay themselves. The sad thing is that many manufacturers are now finding that the savings from off-shore manufacturing were illusionary and are now coming back. Sure, some of the large unionized industries had become overpaid, but people like Walmart have done more damage to our economy than good.

[Popeye69]

Kevin O'Leary said it best "Sears is where you go to buy the second set of sheets for the guest bedroom"
Sears hasnt changed in 15 years and offers nothing new to consumers.

[FreeRights]

For those of us who are middle aged and don't shop in the "high end" fashion stores, Sears and the Bay offered the only shopping alternatives in the Vancouver downtown core. Now that the Bay is the only one left, it doesn't give folk like me much incentive to go on a shopping trip downtown Vancouver.

It's just one more "death blow" to downtown shopping for regular folk. There was a time when my hubby and I used to enjoy a weekend away in downtown Vancouver, but between the very expensive "high end" restaurants, "high end" stores and "high end" hotels, such weekends are increasingly becoming the purview of the rich.

Yes, downtown Vancouver does cater to more expensive entertainment, but I don't agree that there's no shopping for average folk. There's Pacific Centre Mall that houses many regular shopping stores, as well as several smaller malls and other stores along Robson Street and Granville Street that offers regular person prices. They cater to most tastes, and that's what I like about Vancouver.

Even food. Yes, they do have a ton of trendy, expensive restaurants, but they also have tons of regular eating facilities. White Spot, Red Robin, and a whole variety of slightly higher end ones (Moxies, Earls). Don't forget, they also have Old Spaghetti Factory that is cheap and still excellent, and huge surplus of decently priced bars, pubs, and diners all with great food.

[FreeRights]

As others have mentioned, Sears hasn't evolved, but Vancouver's downtown core has. You don't really go downtown Vancouver anymore to shop at big box stores; Vancouver is more of a city where you travel to and have coffee with a friend, walk around and window shop, and maybe pick up a few things that you may not be able to get elsewhere. Unless you live downtown, and even in that case, you're covered by all of the Safeways and IGA markets, the private markets and butcher shops, Costco, there just seems to be too much competition for Sears.

It's a shame, but I only really use it as a street entrance to Pacific Centre Mall.

[Captain Awesome]

...There's also Army&Nave store just down Cordova St.!

[grammafreddy]

GF - I was referring to the impact that Walmart has had on overall wage levels in the community through the elimination of good quality manufacturing jobs in North America, not the wages they pay themselves. The sad thing is that many manufacturers are now finding that the savings from off-shore manufacturing were illusionary and are now coming back. Sure, some of the large unionized industries had become overpaid, but people like Walmart have done more damage to our economy than good.

I agree with you about manufacturing restructuring and already posted that somewhere else - manufacturers are realizing that "made in third world countries" are not always their most economical/wealth generating moves. First, there's the cost of shipping of products to end market or distributors, then there's also the problems they are having with production itself. Seems the natives have Western ideas now and want better wages and better working conditions. The manufacturers are diversifying production now and building factories closer to their end users in various countries on other continents. And, yup, some are coming home! YAY!

If Robert Fines and company were wise, they'd be tapping into that for Kelowna or even the Okanagan, but somehow I think the major manufacturers will want to be closer to the shipping in Vancouver. But we could have some of the smaller or more specialized ones here.

Perhaps WalMart's legacy will be that it leveled the wage playing field - excessive union wages in NA drove manufacturing there.

[EdCase]

If Robert Fines and company were wise, they'd be tapping into that for Kelowna or even the Okanagan, but somehow I think the major manufacturers will want to be closer to the shipping in Vancouver. But we could have some of the smaller or more specialized ones here.

Robert & EDC have worked long and hard to attract specialized companies here but with limited success. Part of this is due to the logistical costs associated with being in the Okanagan - no mainline rail, distance from markets, etc. - but a lot is due to the lack of interest from City Hall/RDCO and the community in general in having a diversified economic base here; condos, strip malls and golf courses is their idea of economic development. We spend less than half per capita of what Chilliwack spends on ED and when Robert has asked for minimal increases in resources, they've patted him on the head, told him what a great job he's doing and sent him away empty handed. No wonder he seeks solace in his singing career!

Yes, we could have more specialized industries here, including some developed here in the Valley, but it will take a much more strategic approach to ED the we've seen in the past and is unlikely to occur with our current political 'leadership'.

[grammafreddy]

but a lot is due to the lack of interest from City Hall/RDCO and the community in general in having a diversified economic base here; condos, strip malls and golf courses is their idea of economic development.

You forgot wineries.

[GordonH]

Sears Canada will close three large stores in premier locations by the end of October, including the anchor store at the Rideau Centre in Ottawa, the Sears at the Chinook Centre in suburban Calgary and the eight-floor store at the Pacific Centre in downtown Vancouver.

All are located in Cadillac Fairview malls.

A spokesman for Sears said 670 people are currently employed at the three locations: 310 in Vancouver, 160 in Calgary and 200 in Ottawa.

Ending the leases in the three locations will generate $170-million pretax for the retailer, which has already cut 470 jobs and slashed prices amid sliding sales and profits and the threat of new competition from Target. The U.S. retailer of cheap-and-cheerful fashion and homeware plans to enter the Canadian market beginning in 2013.

Calvin McDonald, president and chief executive officer, Sears Canada Inc., said Cadillac Fairview first approached Sears about four weeks ago.

The deal was attractive to Sears because the locations weren’t playing to the retailer’s strengths and the money will help Sears drive growth in other areas, he said.

“This was the right move for Sears,” said McDonald. “This isn’t an exit of the market.”

He pointed out that the three cities have numerous other Sears locations – nine in the Vancouver area alone.

Part of the transition plan will involve moving as many qualified employees as possible into surrounding stores and expanded operations in markets including Ottawa, where the Pinecrest Sears Home Store will expand from 42,000 to 68,000, re-opening with a new look in June.

“It was a tough day for many people. We have a wonderful associate base that has been very loyal,” said McDonald.

Sears is also expanding some dealer operations in smaller markets, growing locations from 3,000 square feet to 20,000.

It is also planning to refresh four full-line stores in Barrie, Belleville, Newmarket and Hamilton by mid-May and plans to launch small urban major appliance stores in Toronto.

Analyst Keith Howlett of Desjardins Securities described the news Friday as positive, allowing Sears to monetize three under-market leases.

“Sears Canada has a strong balance sheet underpinned by owned real estate and valuable under-market leases. These assets afford the company some additional breathing room, as it seeks to turn the tide of declining sales and profitability,” he wrote in a note on Friday.

The Vancouver and Ottawa locations are former downtown Eaton’s locations re-opened as Sears stores in 2000. The suburban Calgary location has been a Sears store since 1965. The Chinook Centre is Calgary’s top-performing mall, according to Howlett.

Sears reported in February that profit fell to $38.7 million or 36 cents a share, from $82.7 million, or 77 cents the previous year.

Sales at stores open more than a year, considered a key retail measure, were down 7.4 per cent compared to the year earlier period.

Sears is majority owned by Sears Holdings in the United States.

Cadillac Fairview confirmed the deal to end the lease agreements. The move makes it possible for the mall owners to rent the spaces to new tenants at higher rates, although no one was revealing who is interested in the locations.

“Sears has been a valued and long-standing tenant of Cadillac Fairview and continues to be an important tenant in several CF shopping centres,” according to an e-mail from Cadillac Fairview in response to an interview request.

“Cadillac Fairview is always looking for opportunities to update the merchandising mix at our shopping centres, to create a fresh and enticing shopping environment for our customers, and this agreement with Sears is a reflection of that.”

http://www.thestar.com/business/article ... ities?bn=1

Look who happens to be a player in Cadillac Fairview http://www.otpp.com/wps/wcm/connect/otp ... vestments/ just scroll if your interested.

[grammafreddy]

Interesting, eh?

[FreeRights]

...There's also Army&Nave store just down Cordova St.!

...Or Hastings, if you're pessimistic.

[trrs]

When a 39 million dollar profit is not enough ...

[twobits]

Look who happens to be a player in Cadillac Fairview http://www.otpp.com/wps/wcm/connect/otp ... vestments/ just scroll if your interested.

Yes it is laughable that the BCTF calls for higher corporate tax rates to pay for their rediculous demands. They fail to realize they are eroding the value of their own pensions by doing so. Talk about cutting off your nose to spite your face!

[matai]

Sad, and now, like its alike RBC, Sears is laying off 245 employees to ship their jobs without the employees in the box to india:

http://business.financialpost.com/2013/ ... ffs-india/

[GordonH]

Sears Canada lay-off's 800 http://www.castanet.net/news/Business/1 ... nearly-800