Oh Canada
It seems for those of us who are serious retailers, the Canadian marketplace sure seems to be getting smaller every day. Not that it was ever large to begin with. In the days of Dylex, Comark, Woolco, Bretton’s, Eaton’s, Cotton Ginny, Beaver Canoe, Coconut Joe, Aikenhead’s, Freedom, Kettle Creek etc., it seemed that there was a diverse, healthy and creative retail industry thriving in “our home and native land”.
Today, all of the abovementioned retailers are gone except for Comark which is now a shadow of its former self. Most retail chains today are either owned and operated by foreigners or of the “cheap and cheerful” variety like Stitches, International Clothiers or Urban Behavior. Roots has lost its iconic status, Hudson’s Bay Company just lost its latest U.S. born owner, Sears is owned by a U.S. Hedge Fund manager, Club Monaco is owned by Ralph Lauren, and Gap, Abercrombie, American Eagle, Zara and H and M now seem to dominate the landscape.
It makes things difficult for those who want a career in retail in this country to find a path. With most home offices south of a border or across an ocean, it doesn’t promote the kind of well rounded development an aspiring retailer should possess in order to create new concepts or drive exisiting ones to new heights. It is one thing to gain operational and “on the floor” experience in the field (which is crucial especially when one is just starting out), but then to be able to be exposed to what happens functionally behind the scenes in merchandising, design, marketing, human resources, visual, distribution, planning and allocation is almost impossible given the state of the industry in Canada and one is forced to re-locate to the U.S. to gain that type of experience, which causes a talent or “brain drain”.
I would love to hear what your thoughts are on this topic as it is critical for Canada’s retail industry and the industry’s creativity as a whole, that we continue to nurture and develop and encourage young people to choose a career in retail as opposed to luck into one, like I did.
What can really be done about the state of the retail industry? For every Lululemon, there are 10 Best Buy/Future Shop, Wal Mart/Woolco, Home Depot/Aikenhead’s or Michael’s stories in Canada. American Apparel, which is opening stores in this country is actually an American company owned and operated by a transplanted Montrealer, out of L.A.
Does that really how it has to evolve in Canada? It needs a concerted effort to nurture and foster creativity and career orientation amongst all Canadian retailers to change this trend. It’s time to wake up and get busy.
TheRetailTherapist 
April 15, 2008 at 6:05 pm
Hi there retailtherapist,
Yes you are right, most of todays retail environment - especially in fashion retailing is dominated by foreign companies. But is this really a bad thing? The question arises, why are foreign firms so successful in Canada, a retail environment, that most observers from other parts of the world cannot understand. Why is it that Canadian consumers by “hip” clothes from swedish H&M, spanish Zara or American whatever? Are the Canadian chains and brands not hip enough? Why is it that a Toronto or Montreal Fashion week have to include foreign brands in their shows? Are the Canadian designers not able to make a stand in the international fashion world?
The situation in Canada is similar to the retail environment all around the world - I guess that is what you call globalisation!
a retail enthusiast
April 16, 2008 at 12:42 pm
Thanks for your comments “retail enthusiast” Marc. I agree that it is a global trend. My concern is more from a development and career-pathing standpoint wrt anyone who aspires to be a retailer in this country. With most foreign organizations operating skeleton satellite offices in Canada at best, where does that development and experience come from without having to move south or elsewhere?
June 24, 2008 at 5:03 pm
Reading this post brought back memories of the article “Underestimating the Risk of the Status Quo” by Roger Martin in Rotman Magazine (Spring 07 issue).
The article discusses the lack of Canadian firms expanding outside of our boarders. This is part of the reason why our businesses (and retailers) end up being acquired by foreign companies and people.
While it likely raises more questions than answers, it includes some good examples of world class Canadian companies that can inspire the leaders in and around our retail industry.
To read Martin’s article, follow this link and scroll down to page 4.
http://www.rotman.utoronto.ca/pdf/spring_07.pdf