Monday, 28 October 2013

News: Sears Selling Additional Store Leases

Toronto Eaton Centre and Sherway Gardens locations to close in 2014.
Sears flagship at the Toronto Eaton Centre
October 29th Sears Canada will officially announce that it has sold additional store leases to some of its highest profile locations.

Sears has come to an arrangement with Cadillac Fairview to sell a total of five store leases, three are in the Toronto area: Eaton Centre, Sherway Gardens, and Markville Mall. Last year it sold leases to several high profile locations paving the way for Nordstom's entry into Canada.

The Eaton Centre and Sherway Gardens locations are slated to close in February 2014, with the Markville location closing in 2015. The official announcement was delivered to Sears employees.

Last month it was announced that Sears CEO Calvin McDonald was resigning from his position at the retailer (he has since been named head of Sephora Americas). During his time at Sears, McDonald refocused on key product categories and shed store leases to such ionic Sears locations as its Vancouver Pacific Centre store. However he was reluctant to vacate the flagship location at the Toronto Eaton Centre (where the retailer also keeps its head office and for which it paid a very low lease).

In a recent Globe and Mail article, incoming Sears CEO Douglas Campbell confirmed that Sears would consider selling additional leases (including the Eaton Centre location) if the price was right.

Nordstrom has reportedly coveted the Eaton Centre location, and landlord Cadillac Fairview has been craving a more productive anchor retailer.

[Image via Cadillac Fairview]