Wal-Mart (NYSE: WMT) recently announced that it is going to begin opening urban stores in Canada. The first concept store will be opened on an old Zellers property that it will be acquiring from Target. The format of the store will be named "Urban 90," and it will be located in the east-end of Toronto.
The new Wal-Mart's are intended to fill a gap that Wal-Mart experiences in Canada currently. Since the company is usually located on very large suburban lots, they have been unable to reach many dense urban buyers. They hope that the new stores will allow them to expand further into a Canadian marketplace that they have largely saturated.
The new Urban 90 format, being located in dense urban environments, is going to hit the traditional retailers and grocers the hardest. Many Giant Tiger, Loblaws (TSE: L), Metro (TSE: MRU.A), and Sobeys banners are located in urban environments that currently are free from Wal-Mart's tentacles. Soon, however, the ubiquitous yellow smiley face will shower Canada's urbanites as well. Canadian retail investors beware!
Happy Investing, and for more info:
http://www.thestar.com/business/companies/walmart/article/1014669--wal-mart-to-open-urban-store-buys-zellers-sites
Showing posts with label American Retail. Show all posts
Showing posts with label American Retail. Show all posts
Friday, June 24, 2011
J. Crew Coming to Canada. Reitmans, Le Chateau, and Others Beware... Consumers are Fickle.
American clothing retailer J. Crew will be opening its first Canadian store this August. The new location will be in Toronto at the Yorkdale Shopping Centre. In addition to Target, there is going to be a slew of U.S. retailers heading north to take advantage of a more stable and seemingly robust consumer base.
Other Canadian clothing retailers like Reitmans, Joe Fresh, (TSE: RET) and Le Chateau (TSE: CTU.A) are really going to start feeling the pinch as there is only so much consumer spending power to go around in a country of 33 or so million people. Both stocks have been hammered as of late and could pose a potential buying opportunity to any adventuresome investors who dare to enter the clothing space, which is notorious for being fickle and difficult for investment consultants like myself to predict. To be sure, Reitmans has a large dividend of about 5 percent, but a clothing company can burn through money very quickly with advertising and price wars a constant threat.
So Intelligent Investors beware, another competitor in the clothing space means more hands in the consumers' pockets.
Happy investing, and for more info go to:
http://www.cbc.ca/news/business/story/2011/06/24/j-crew-toronto.html
Other Canadian clothing retailers like Reitmans, Joe Fresh, (TSE: RET) and Le Chateau (TSE: CTU.A) are really going to start feeling the pinch as there is only so much consumer spending power to go around in a country of 33 or so million people. Both stocks have been hammered as of late and could pose a potential buying opportunity to any adventuresome investors who dare to enter the clothing space, which is notorious for being fickle and difficult for investment consultants like myself to predict. To be sure, Reitmans has a large dividend of about 5 percent, but a clothing company can burn through money very quickly with advertising and price wars a constant threat.
So Intelligent Investors beware, another competitor in the clothing space means more hands in the consumers' pockets.
Happy investing, and for more info go to:
http://www.cbc.ca/news/business/story/2011/06/24/j-crew-toronto.html
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