According to the Toronto
Star, Quebec-based department store La Maison Simons is actively seeking
real estate in the Toronto area. The recent sale of store leases by Sears
Canada has provided a point of entry for Simons in two of the most coveted
shopping centres in the region.
Last week Sears announced that as part of a continuing
strategic review of its real estate assets it has decided to sell its Yorkdale and
Square One store leases back to the mall landlord (the malls are co-owned by Oxford
Properties and the Alberta Investment Management Corp.). The $191 million deal
will result in the stores closing in March of next year. The retailer also sold an option for their Scarborough Town Centre location (which the
landlords have 5 years to exercise for $53 million).
“In this case, we were presented with an opportunity that
gives us a significant financial benefit without changing our plans to improve
the business and make Sears more relevant to Canadians,” said
Sears Canada President and CEO Calvin McDonald. Sears previously sold store
leases back to mall operator Cadillac Fairview, which facilitated the entry of
Nordstrom into Canada starting in 2014.
Simons confirmed that they are interested in the spaces being
vacated by Sears at Square One and Yorkdale. Last year the retailer opened its
first location outside Quebec at Alberta’s West Edmonton Mall and an additional
location is planned for Ottawa’s Rideau Centre. The retailer is known for its
mixture of on-trend fast fashion and high-end designer brands.
Also, at this week’s Annual
General Meeting of the Hudson’s
Bay Company, CEO Richard Baker welcomed the competition of both Nordstrom
and Simons saying it benefits HBC and would rather have them as neighbours than
embattled Sears.
