The Portage Place Proposal

The ideas presented by True North and Architecture49 for Portage Place in this series of pictures is a far better proposal than we have seen from developers thus far. The cost is estimated to be about $500 million and there will be a taxpayer component for some aspects of it. A 15 storey health tower will be built on the western pad. The foodcourt will give way to a first floor of elevator banks and possibly a walk-in clinic and primary care clinics with extended hours. The second floor will remain a main corridor in the skywalk system to connect the arena, the former Bay Building as well as Investors Group.

It is noteworthy that the Pan Am Clinic is involved. Prior to the pandemic they had made arrangements to build a facility on the old mini-golf course adjacent to to the Reh Fit Centre. A bit of a coming home for them as they started way back decades ago in the building. Alas, as soon as it was announced, a panic ensued as the underpass at Waverley which had been cancelled since 1984 Mulroney was finally approved. The Pan Am was cancelled. And thereafter, their onsite physio had to move for lack of space at the clinic. They have been over capacity ever since.

To say the Pan Am Clinic has been waiting patiently ever since is an understatement. The parking lot behind the Pan Am Pool is filled daily with those attending appointments or being told walk-ins are filled by the first hour. A 15 storey Pan Am tower for an Advanced Musculoskeletal Medicine sounds like the they type of  innovative centre that downtown used to be known for. The Boyd Building, Medical Arts Building and the Winnipeg Clinic were where people went for the specialist appointments. Most are closed or downsized from their one prominent position in the city.

Some new suburban offices have opened for doctors but the Pan Am Clinic is in need of space for diagnostic equipment, surgical suites and space for a growing demand in treatment of pain and therapeutic and surgical treatment. It is a long time coming. There appears to be a pick up and loading area for the clinic but better pictures are needed to see if it is adequate. Edmonton itself appears to be a through street although it isn't entirely clear if it is only for pedestrians or one where vehicles can use even in a limited way.

The first floor that has today's present food court appears to be all clinic space. The above floors will have 50,000 square feet of ambulatory and orthopedic surgery space. A concussion clinic is set to operate on on site and a 26,000 square foot dialysis space will be set up. The latter has been desperately needed. Altogether, this is 220,000 square feet of health space and a $300 million investment. 

The above alone would be a huge deal. It is worth pointing out that many cities across North America have hospitals in their downtown areas. Health Sciences Centre is not downtown. Nor is St. Boniface Hospital. Look at Toronto or Saskatoon to see hospital districts. They are 24 hour drivers of social, health and economic opportunity. I sometimes wonder if Health Sciences Centre blocks away from downtown would have been better closer in. As it stands now, we'll never know. For St. Boniface, it is close by but better for the core district surrounding the commercial neighbourhood of the French Quarter rather than downtown.

The Access Clinic on Main Street with its parkade was a multi-million investment in health north of City Hall. However, street friendly, it isn't. It is closed at 4:30 PM every day and closed weekends. Heroic work might be done inside but it is unlikely a single business, restaurant or residential building benefits in ways that St. Boniface Hospital benefits its district or Health Sciences does for its area (although in recent years that part of the city has gone through difficulties).

It is without doubt that a downtown Pan Am Clinic along with primary care and dialysis treatment will be utilized and see many people use the facility. And with 1000 car parking space below, parking should not be considered an issue. However, the foodcourt and some retail, services and the old theatres will make way for this development. Public input is ongoing. It is uncertain what the reaction will be to the loss of the foodcourt as it presently stands will be. Many in the community are attached to it as a place to sit and gather. Some indigenous groups had wanted the mall turned over to them as a community spot. Still, this has to be weighed against the advantage of primary care, addictions care and dialysis in one spot. All of these things are also needed by the downtown community and by indigenous people.

A pocket park along the Edmonton throughway should open up north and south access which could see and increase of people being present. While people could enter and exit via the mall, the north entrance had been the source of security concerns in recent years. With a large health facility present, thousands of people per day from all over the city will be going back and forth. Such is the reputation of the Pan Am Clinic that you if you are in pain, suffering a concussion, you don't care where it is, you care that it is.

As stated, if the only news on Portage Place was this, it would be astounding good news. However, there's more. The western portion of the mall looks to continue hosting long time resident Prairie Theatre Exchange. Manitoba Chamber Orchestra also calls the third floor home. The Expo Live! part which is owned by by True North looks to be making way for a 14,000 square foot grocery to yet be named.

There is no doubt this is good news. Despite what anyone thinks, there are quite a few residential units that have gone up in recent years on north Portage via the University of Winnipeg. There is a lot of housing behind Portage Place and Central Park. And more housing coming atop Portage Place itself and in the Southern Chiefs owned Bay building. 

Some naysayers will talk about grocery stores attracting theft. That happens whether it is in St. Vital, St. James or parts in between. Much like how the liquor stores had to add a layer of security. it could come to that for grocery, pharmacies and the like. I have seen more security guards posted at banks recently all the way out in St. James. Many grocers are going to a single entrance and some sort of gate to cross through. Many have security and police posted. This may be the new normal till we deal with drugs, cost of housing and homelessness.

Regardless, a grocery store is excellent news and the customer base is already in place with so many apartments either connected to the skywalk or walking distance. A 16 storey apartment above the grocery is exactly the type of synergy you need in a mixed development. The other parts of the west side of Portage Place is probably where we will have some discussions. A Service Canada office is in place and should remain a part of the building. What else goes inside should probably be determined by the needs of the people living and working in the area. A Shopper's Drug Mart is there now and still seems a good match. As are many of the cellphone companies operating inside. A new food court seems unlikely a few coffee shops and quick service restaurants seem very likely.

It is unclear what sort of residential units will be going up on the west pad. There was mention of student housing and there is no doubt that downtown has multiple schools that can use it including the University of Winnipeg, Red River Polytech and a host of private colleges. One thing that can be said about schools is that they are great drivers of economic activity. And many choose to be downtown because it makes sense logistically for them to do so.

The University of Winnipeg by the very early 1980s had taken over both it men and women's residences for offices. There was no capital budget, student populations were going up and the feeling was that there was enough apartments and rooms for let near the university. Or that many students lived at home and commuted.  Some of that is true. But a lot of it wasn't. There was inadequate housing for decades and the U of W was suffering for it.

It bears repeating that in 2019, Winnipeg and by extension Manitoba, was doing pretty well. The previous year play-off run by the Winnipeg Jets had brought tens of thousands downtown. Many businesses were in expansion mode, festivals downtown and theatres were running at capacity. By 2020 that all changed with the pandemic. Many small businesses were lost and closed down and others have not recovered due to the continued change in work patterns.

The addition of a medical component and a residential component to Portage Place will make the building busier, less a magnet for trouble, more open with public space and not a three block wall on one of the busiest streets in Winnipeg. The proposal thus far along with upcoming public consultations is the best we have seen. It gives a strong reason to go downtown. If someone needs medical treatment, it is better if it is an all and one place with diagnosis, treatment and doctor and specialist visits. With any luck, we will see a deal complete and work beginning soon.

Birks Jewellers Closes in Winnipeg

 

Known now as Maison Birks, it generally is called Birks Jewellers in Winnipeg. This past week the company said it is closing the last store in Winnipeg at 191 Lombard across from the Richardson Building. It has been at that location for 15 years. At the time of their move from Polo Park from a very prominent location, it seemed counter-intuitive to re-locate back downtown from the most popular mall in the province. However, Birks said that it was more profitable since they didn't have to pay a percentage to the mall owners as they did at their last location.

Generations of Winnipeggers were patrons of Birks from 1903 till 2023. Occupying the former YMCA building next to Eaton's for decades, it was a fairly massive presence over three floors. In 1987, as Portage Place was going up, they leapfrogged to center court of Polo Park for that mall's expansion. The beautiful old location of Birks became Musiplex on Portage Avenue.

While Polo Park seemed less glorious the three floor posh Portage Avenue location, the trade-off was the huge foot traffic. And Birks maintained an exclusive look and feel than other jewelry stores in the mall. It always felt like a place where you'd need an appointment to discuss the family jewels. And surely, it must have been like that for generations. It is the place your great grandparents came to from the turn of the century.

By all accounts Birks did well for the next few decades at Polo Park. The late 1980s expansion of Polo Park had put new life in the place even when anchors like Eaton's closed, they were replaced with stores like The Bay. By 2000, the largest movie complex in the province was built on the site and it seemed all the major retailers had to be at the mall.. 

The latest earning report from Maison Birks was not great. Many jewelers have been hit hard by synthetic diamonds lowering overall price. It could be that the new generation are less likely to have gold plated this or that or a silver tea service. It is unclear exactly why Birks closed. They opened a store in the CF Chinook mall the same week. Perhaps they should have never left CF Polo Park to begin with.

The now closed Maison Birks in the Union Tower on the first floor looks out to Portage and Main. Just across the street is Hy's new patio and the Richardson Building. Kitty corner the Bank of Montreal has been under renovation for months. A branch of 529 Steakhouse will be set up there. One wonders if Birks had held on, would their business have improved at the corner?

We'll never know. The space left by Birks departure is a marquee space and hopefully, it won't stay empty long. Over the last few years there has been an increase in residential units on Waterfront Drive and along Main Street. Office conversions to residential and warehouse to residential along with new builds continue to take place but it is a slow process. And with 500,000 people a year moving to Canada including 20,000 or so per year to Manitoba, we have to quicken the pace.

The Associated Press is reporting that more companies are pursuing the wealthy shopper who continues to spend even in the face of inflation. For sure this might make Birks think they should have waited. It also might mean they come back. Still, it is the end of an era as a jewelry store that served generations of Winnipeg is no longer part of the Winnipeg landscape.

Changes Around Polo Park and Surrounding Area

 Even in a pandemic, the former HBC Home has been converted to other uses. Originally built as Linens and Things, the Bay changed it to Home Outfitters. In recent years they are closed and the ones in Winnipeg have been converted to other uses.

First Oomomo opened. It has not fully operated yet because of restrictions but specialized in sales of Japanese goods. Now next door they have finished painting the red sign of Petland. 

The old Sears building is getting closer to looking complete in the exterior changes.

Hakim Optical across from Polo Park closed. However, they are inside the mall now and down the street at Leon's Centre. Hakim has taken up the type of dominance that Winnipeg-based Shopper's Optical once had. King Optical on St. James once had 200 people producing glasses for all over Canada. It closed in 2014 and few years after all the Stewart N. King/Shopper's Optical stores numbering 74 locations were sold to Luxxotica for $67 million.

Winnipeg used to be a glasses powerhouse.

Sears Polo Park started at Simpsons-Sears in 1959 and was the anchor to around 40 stores arranged in two open air strip malls. It was the second enclosed mall in 1963 and expanded with the inclusion of Eaton's as its northern anchors in 1968. It was in this year that it became entrenched my memory as we became new residents of River Heights. I was probably there earlier but I remember visiting my grandparents on nearby Ashburn and going to the mall and seeing a very new Eaton's.

The Simpson-Sears always seemed to have a busy auto centre and garden centre. I even remember boats being sold. 

The St. James apartments were built in 1969. For years, there was no way to get down Ness to Polo Park because there was no road crossing the rail. This opened the street opposite to Polo Park to things such as the St. James apartments but also for a McDonald's further down the street.

This became the primary way for people south of the Assiniboine to access Polo Park.

Sears has been converted to a mix of offices and retail. It  likely managers never conceived they would ever not have stores leaping at the chance to locate at Polo Park.

EQ3 will be moving into the Sear renovation. This will leave the corner at St. James and Portage empty for the first time in decades. Pier 1 Imports closed years ago and EQ3 has a pop up in there. The re-located store will be larger than what they have now. Even in the pandemic Winnipeg-based EQ3 has done well and this will be a flagship store for them.

Cadillac Fairview wants to put apartments on that corner once EQ3 is gone. Winnipeg Airport will try to stop them. In the next year or so we should see how that turns out.

It is hard to imagine normal after the pandemic. Sometimes we are so busy that it seems like people are back to routine but then it important to point out some businesses have been shut since last March.

And some businesses have been struggling since before the pandemic. The question of what happens to The Bay is an open one. Will HBC survive? I thought no but the store probably needs more revenue streams that it does now. Whatever happened to its restaurants?

Many malls seem to be reeling from filling holes from large retailers collapsing. Some are doing okay. Some are having to do a re-think.

Meanwhile, along St. James some of the stores that have closed in last few years are finding tenants like here where HBC Home has given way to Oomomo and Petland. The sign says fully leased.

St. Vital Centre in 1986

From the air in 1986. St. Vital Centre after being built in 1979. The anchor stores were Eaton's, The Bay, Woolco and Safeway. Corrected from 1979 listed date earlier. In the middle of the picture the add on of the movie theatres was completed. And as noted by a reader, Pizza Hut came to Winnipeg in 1986. That location has since closed.

Downtown Pony Corral Closed

The Downtown Pony Corral took over Grapes location on St. Mary's in 1999. It would be their second location after success on Pembina Highway from the late 1980s. The Ginakes family had a reputation for family restaurants but the downtown location had a bar vibe about it that lasted through its 21 years. Many celebrations were started or ended at The Pony. It was where Cruise Night started as well.

It may not be the last Ginakes venture downtown. He owns the building where Mother Tucker's used to be and the benefits of the True North towers and surrounding investments are still being measured by those who live and work by. Restaurant entrepreneurs are always looking for the next format and location. What works in one place might not work in others.

Grapes operated in six locations in Winnipeg and even further afield but the last one on Pembina closed in 2010. The Kenaston location closed after 28 years in 2008.

The Pony elsewhere probably has enough regular goers and excellent locations. Grant Park is a rejuvenated mall with dense population around it and with good local events such as Cruise Night to keep it relevant. Even with Moxies and Joeys everywhere, the Pony stands apart because it can and has been a gathering place.

The one thing you notice when you go to the Pony downtown is that that is sizable. This is why it was used for celebrations. But that is a competitive market and restaurants have to pulls crowds from lunch to late night. That is no easy feat. While their are office towers with private and government and workers Monday to Friday, it doesn't help that the The Bay is pretty much a dead zone now.

If customer parking can remain available across the street in evenings, there is a chance that another restaurant group might be interested. The patio remains an attractive feature which is something not every restaurant provides. Rumour has it that The Pint is on the hunt in Winnipeg again but The Pony is closer to the RBC Convention Centre than it is to BellMTS so maybe not ideal for a sports bar.

It is tough to be in the restaurant business. Some people are very committed to the same places all the time but if that demographic changes or people check something else out, the slim margin of what is successful can come crashing down.

The Pony Corral was a good restaurant to have downtown and contributed to a vitality on the street. Any restaurant that occupies its space would do well to reach out as many people as they did.

Grant Park Plaza - The Early Days 1967

Grant Park started construction in 1962 and by 1964 it resembled more a big box strip mall than the enclosed mall today. By 1967 it looked like the store directory above. As seen, the mall had two groceries to start: Dominion and Safeway. It was also anchored by two department stores Woolco and Clark's.

But what is Clark's? This store seems to have slipped from the mists of memory for many. It wasn't the only Clark's in town either. There was one on Panet Road at Regent/Nairn.

The above was the Winnipeg location at Panet in 1962. The picture is commonly mistaken for Grant Park and I made it as well.

Clark's was the forerunner of Gambles and was owned by St. Louis-based Gamble-Skogmo which had a stable of stores under many brands. They also owned MacLeod's Hardware of Winnipeg.

Clark's actually went all the way to the Supreme Court and lost to prevent further expansion of Grant Park Plaza in 1967. It was to prevent becoming an enclosed mall as well as stopping Woolco from coming in. Their legal challenge didn't work and eventually the mall was enclosed and Clark's became Gambles.

Eventually Gambles was purchased by Zellers and the Clark's and Gambles names were gone forever from Winnipeg. It would take decades but the Zellers name itself would disappear as owner Hudson's Bay Company would sell it to Target. Some stores remained Zellers but in 2019, HBC will close the final two stores in Ontario.

Grant Park Shopping Centre as one of the oldest malls in Canada has seen tremendous change but was never allowed to simply deteriorate as some malls have in Canada. It was innovative in getting a movie theatre of substance even before places like Polo Park. It became home to the first big box book store in Winnipeg which remains strong today. And it was one of the first to have restaurants in its parking lot.

After its most recent makeover, that added Canadian Tire and Goodlife, it seems the mall has settled into a format that is working for it even where some of its competitors have undone their enclosed concept.

Hudson's Bay Company Store 1960 Winnipeg

In this picture the Bay Parkade is only 3 storeys. It was built in 1954 to 1955 as two floors only. It proved so popular they added a third floor later in 1955.

In 1959 the Winnipeg Clinic added 6 floors to their medical building next door. It is the taller building in the foreground.

This photo is 1960. It would another four years before the Bay Parkade would have an additional fourth floor added for a 800 car capacity in 1964.

The Bay sold the Parkade in 1987. Estimates are that it takes in between $2 and $3 million a year profit. It is very likely that if HBC continued to own the parking lot that the building and lot would have been sold together for development.

Vita Health and Mark's Warehouse Coming to Linden Ridge

The last few areas of Linden Ridge mall are set to be developed in 2019. The new Lowe's will see two buildings constructed across from their parking lot. This is quite a coup for the mall as Kenaston Common just north of their location will be seeing a contraction as Payless ShoeSource and HBC Home close there. In all, three HBC Home and eight Payless will close in the city this year.

The new construction appears to be triggered by two major retailers locating in Linden Ridge namely Vita Health and Mark's Warehouse.

Both retailers should find a market for their goods in the growing area.

Once the buildings are complete, Linden Ridge will be more or less fully developed in their very slow and steady approach over the last few decades.

Home Outfitters/HBC Home to Close - Sak's Off 5th Might Close

HBC announced that Home Outfitters across Canada will close. At one time there used to be near 70 stores across Canada but that number has dropped to 37 and 700 employees. In Winnipeg in 2016, HBC converted three Home Outfitters to Hudson Bay Home and the concept was supposed to spread across Canada. Those locations were Kenaston, Regent and St. James.

It is interesting to note that the St. James location once housed Linens and Things which failed years ago taking Canada's 55 stores along with it. Sadly, it and the other two location HBC locations will be liquidated along with Home Outfitters.

Winnipeg's two major malls at Polo Park and St. Vital are still looking for the perfect fit for their former Sears stores. And more store space is being built even as companies like HBC and Sears close stores. Other retailers as well are closing across Canada including Winnipeg. More on that in another post.

It would be easy to blame Amazon as online retailing has indeed created problems. However, the simple fact is that too many stores can also hurt your business model. Companies like Disney, Lego and IKEA have fewer stores and offer experiences that stand out. They become destinations in and of themselves.

The more interesting announcement by HBC was not that Home Outfitters was closing but that they were closing 20 Sak's Off 5th stores in the U.S. and re-evaluating the whole company. HBC has so far affirmed confidence in Winnipeg's store at Outlet Collection of Winnipeg. It is unknown how profitable the store is in Seasons of Tuxedo.

The Seasons of Tuxedo is continuing to fill in with stores, entertainment and services. But it is also filling in with residents. Thousands of people now live on site. It will be interesting to see if this helps business in the area as they have a resident population within steps of the mall.

In 2019 though it would appear landlords are going to have to struggle to fill space. It could be we see some rent decreases and sub-dividing space to make it more palatable. We also might see some local concepts take off in this new landscape.

Sears Polo Park Closing

Simpsons-Sears in the 1970s

The writing has been on the wall for some time. Sears in Canada has been suffering at the hands of the parent in the U.S. for years now. Every chance to modernize the department store was nixed by head office in the U.S. with ever growing demands to send cash south to bail out Sears/Kmart. Shares of the parent company dropped from 73% in 2006 to 10% today. All attempt to stem the downturn in Sears Canada was met with selfish resistance and the money still flowed south.

Sears joined with Kmart in the U.S. but the brand was old and tired and all investors wanted out of the company was the real estate holdings and credit business. The market was changing to more online sales but any re-investment in the company to other areas was quashed.

In Canada stores closed or leases sold back to the malls. The money was once again sent south rather to get Sears Canada better equipped for the new retailing. In Winnipeg and Brandon  came the closures of Sears Hometown stores and Sears Home stores and then Sears Outlet store at Garden City.

Sears in 2017 was left with three stores at Polo Park, St. Vital and Kildonan. The big whale and once one of the most profitable stores in the country for the department store was the 270,000 square foot Polo Park store. It was the original anchor in the mall and a major funder that got the place built in 1959.

Polo Park has expanded many times since the 1959 opening and Sears has been a major anchor and profitable for decades there. In 1999, Sears operated the old Eaton's as owner for a time making it a double anchor. That Eaton's eventually failed along with the other stores across Canada and HBC became the anchor on the north side.

For a few years now the rumour has been that Sears was going to sell the lease off or go under nationally. Several retailers such as Nordstrom and Simons have sniffed around waiting to see what would happen. It is one of the reasons why new development has not popped up immediately in the recently built Target building north of the mall. Why would a big retailer want to go in there when the 12th largest mall in Canada awaits your arrival?

The last large space to come available Polo Park came as the result of Zellers closure. Rather than looking for a one or two big retailers to take over the spot, the mall reconfigured it into a horseshoe- corridor that added 22 stores including a Disney store.

The Sears location is so enormous covering three times the size. It seems unlikely but not impossible the mall would be convert it to 40 to 60 new stores. Moreover, it is doubtful that Cadillac Fairview wants to leave the space empty for too long into 2018. The competition from Seasons of Tuxedo is not to be taken lightly.

Sears began in 1953 as a collaboration between Simpsons in Canada and Sears, Roebuck. The original sign on Polo Park of the store said Simpsons-Sears for years and was shopped at by many. It was the first credit card many young people ever got. The demise of the store in Canada can be laid at a changing market but hastened by the worst example of branch plant economy management. Selfish, stupid and ultimately self-defeating U.S. demands busted Sears in Canada. In the end it didn't help Sears in the States either.

There will be 159 people who lose their jobs at Sears in Polo Park. Pensions and benefits have been torpedoed as well as vulture strip off the carcass. Pretty shabby treatment from a once great icon of retailing.

Malls are changing for sure in the face of the new economy but Polo Park is probably going to do just fine re-inventing itself. After all, it once was a horse racetrack. They have changed before.

The Bay Downtown Winnipeg Closes 4th Floor

Hudson Bay Company has announced that the 4th floor of the downtown Winnipeg location will close very soon as the department store retrench to the first two floors. It is interesting to note that there aren't any men's washrooms on the first floors so they have to keep that 4th floor open just for that purpose.

For many years now. the fate of the The Bay has been talked about and hopes were that the University of Winnipeg would ride to the rescue as it seems to have in other times. This remains a possibility but the sheer size of a building that has much space as the Richardson Building is daunting.

The closure of Zellers also meant the closing of the grocery store in the basement. By and large, aside from two floors, the Bay is empty. A lucrative parkade attached to the building is not owned by HBC which might have made development and a way to fund it possible. The lot has always been more practical than lovable in look but at 650 spaces, it is very lucrative.

Often it seems everyone wants to own parking lots rather than buildings as they generate consistent money with little effort.

The Hudson Bay Company has been on a bit of a roll lately even in tough times. It has bought several other department stores including Sak's from the United States and made a profit doing so. However, tough times might be ahead if the economy is any indication. Sak's outlet division has already announced they will be in the Seasons of Tuxedo development rather than in the downtown. Still, there may be an opportunity for Canadian retailers with a prolonged fall in the Canadian dollar.

Any redevelopment into retail, offices, classrooms or the like in the downtown space will be more expensive than other construction. There is also the fact that said development can't happen in a vacuum. There is no unicorn out there that is going to say they want the entire space and have all the capital that they need to get the job done.

HBC sits a fairly choice spot though. Across the street is the headquarters of Investor's Group, Liquor and Lotteries headquarters will soon be in the Medical Arts Building. Manitoba Hydro headquarters is just down the street. The Winnipeg Art Gallery, RBC Winnipeg Convention Centre, MTS Centre, hotels and the University of Winnipeg are all nearby.  In short, there are a lot of attractions not to mention growing residential components coming.

Everyone talks about doing something about the HBC but there is no evidence that a working group is actually discussing the issue. Obviously, The Bay owners need to be asked what they would like for the building and determining what is possible.

Here are 25 things that could go into the The Bay downtown (not ranked in particular order):

1. A HBC data center. The St. Louis IT offices of HBC took up 80.000 square feet. They have a data center in Toronto as well. Why not in a building they own in a central time zone?

2. A grocery store. The basement could still be perfect for this.

3. Home Outfitters. This is a HBC owned division that could be in the building.

4. Saks Fifth Avenue. It is a HBC owned division.

5. Off 5th. HBC owned discount store of Saks.

6. Lord and Taylor. HBC owned department store.

7. The Room. Luxury section of HBC in Toronto and Vancouver could have a version in Winnipeg.

8. Back office functions of HBC and other divisions of the company. Winnipeg once was the head office, why not back office functions in accounting, etc?

9. A fitness center. Despite the Y being nearby, fitness centers can occupy generally 25,000 square feet and attract a good amount of people. Eaton Center has two inside.

10. A health food store. Going to have a fitness center, why not a store right across from it?

11. Tim Horton's. Why not? Shouldn't there be one on every corner? Yes, I know there is one just outside.

12. A Pharmacy. Doesn't compete with other HBC lines. Could be in basement with a grocery.

13. A bank or credit union offices.

14. University of Winnipeg class or offices. Yes, it has been talked about before. Could still be a good idea.

15. A CBC Broadcast Center. The old CBC offices could be sold to the University of Winnipeg and a full floor or so HBC could be the radio. TV, broadcast center. Enough parking for all employees. Only question is shipping doors for large broadcast vehicles. Could tap into infrastructure money.

16. Provincial offices. Truth be told is that the province leases space all time.

17. City offices: A more difficult idea if city campus plan is still in effect. But they did move police to south Portage.

18. A regional health authority. Seems like they build new buildings every year.

19. A medical or dental clinic. Could be a downtown quick service clinic or walk-in clinic.

20. A Chinese food buffet. I've joked about this in the past but why not?

21. A restaurant and grill sport bar. The Jets and moose are just around the corner. Should be a no brainer.

22. A daycare. How many head offices, government offices and residents nearby? large daycare would be filled immediately.

23. Escape rooms. They are all over town. Why not part of a floor dedicated to entertainment?

24. A cabaret. Music, dancing, night club.

25. Water park. Always like to throw this one in there.

Sak's Coming to Winnipeg?

There had been rumbles about Hudson Bay Company taking over Sak's Fifth Avenue department store for months. Compared to HBC founded in 1670, Sak's is a relative newcomer started in 1867 and in its present department store form from 1924.

From the start Sak's represented luxury on a scale rarely seen. There have been bumps along the way such as The Depression and wars and business cycles up and down. The department store adapted expanded and extended their brand to other markets through stores and their discount luxury line over many years. The Off 5th stores started in 1990 and now outnumber the department stores. The online store was around from 2000.

Sak's has expanded under licence to Mexico and the Middle East.

The recession has hurt many businesses, especially retail but Sak's has a great name, great real estate and great product.

The savvy shopper in recent years has out pressure on company's like Sak's by shopping online and waiting for steep discounts or deals on shipping. This has marked many retailers the last years. best Buy has closed stores because too many people came in, tested the product, got an education in it and then went home and ordered it cheaper online.

The wait for sales has become a huge game and often retailers blink first.

Add to that the ridiculously low shipping costs subsidized by the U.S. government. The U.S. Postal Service loses $25 million a day every day. If the U.S. wanted to see more people go back to stores, they would stop the post office from losing money and raise stamp prices.

In Canada, HBC has fared a lot better in its turn around with new ownership in the form of Richard Baker from the U.S. and his investment finance group. The group had previously bought the prestigious U.S. retailer Lord and Taylor in the States. In both cases, the two department stores have done very well recovering.

In the case of the HBC, it has shed itself of Zellers, got a pocketful of cash from the stock market, signed some excellent deals with suppliers, upgraded their stores made some money.

The nearly $3 billion deal to buy Sak's is a very interesting play by HBC to face head on the challenge of Nordstrom's arrival sometime in 2014. It is also an indication they are prepared to challenge Holt Renfrew for supremacy of the luxury market in Canada. There is some indication that their plan is a sound one.

There are still some challenges from Sak's shareholders to be sure. Other companies might try to make a play for Sak's. It ain't over yet.

But if it does succeed, what will it mean for Winnipeg? Well mostly, Winnipeg would land maybe one or two Off 5th stores. HBC has indicated that they will put the Sak's discounter in 25 locations. To be sure, at least one will be in Winnipeg. Most of the discount stores are between 25,000 and 28,000 square feet on average. Could this part of HBC downtown and maybe a spot in Polo Park?

There is an indication that HBC might also open full Sak's stores in four of five markets. Most certainly Winnipeg stands a good chance of landing a store if they decide to do one 1 store per market. There is already word that some markets such as Ottawa might be too crowded for a store so Winnipeg might be good with no Nordstrom's coming and a more stripped down Holt Renfrew in place.

And where to place a Sak's? Well, the rumours all week have been the old Zellers location in Polo Park is excellent. Downtown is a possibility too in a building the company owns.

If HBC decides to become a Real Estate Investment Trust as they say they'd like to, it might unlock a complete redevelopment of HBC downtown. What this entails could be a complete demolition of the old parkade and construction of a new one with other mixed uses such as a hotel, offices and condos.

And let's not forget Seasons of Tuxedo. This is the type of store they want. Could be a Sak's or an Off 5th.

Unless the deal is scuttled though, bet on seeing a roll out of Off 5th in 2014 and Winnipeg will be included. As far as Sak's, we can hope. It will bring lots of competition if they do come.

Which Rona in Winnipeg Will Close?

In this blog a while back I indicated that Sears Canada was struggling mightily. It still is. However, after an injection of cash from their sale of some of the large leases to Nordstrom's, they will continue the struggle to emerge as viable. It is not hard to see Sear looking enviously at the Hudson Bay Company flush with cash from ending Zellers achieve profitability.

Target is breathing down all their necks as open more and more stores. Sears has indicated they could close more stores but it isn't their first option. Rumours continue to swirl over their Polo Park location. The suspicion is this is the last chance for the company to make a go of it without a major contraction or sale to someone else. The large Polo Park location is looked upon hungrily by competitors.

The latest company in Canada to talk about shutting stores down is Rona. The decision to drop or sell the big box stores of the home improvement retailer was mulled over the last weeks. The story is that quite a few of the stores including some in Winnipeg are losing money or have thin margins.

The new head of Rona says the option of closing or selling the 28 big box stores outside Quebec is off the table as a whole (The company also has 28 big box formats in Quebec). That is not to say that some unprofitable stores might not be closed. Last year the company closed 5 locations.

Looking at Winnipeg, it is not easy to see what Rona might be closed of the three big boxes. There is the Sargent location at Polo Park (once a Revy), the Panet Road location in Transcona and the Kenaston location down the street from IKEA.

What complicates this whole thing is Lowe's Home Improvement continues to add locations across Canada. They are scheduled to begin construction of a massive store on the Seasons of Tuxedo site. If there is one store in Winnipeg that will face brutal competition, it might be the Kenaston location.

Lowe's actively pursued Rona last year but Quebec enterprise politics prevented a deal from happening. Unless something dramatic happens, it is possible Rona will have to re-visit the sale or closure of some assets.

Could it be Kenaston? Could it be all of the Rona big boxes?

Target Opening, Cabela's Opening

The old Zellers now Target at Southdale Centre on Lakewood Boulevard

This is the day that Target opens three locations in Manitoba, two in Winnipeg and one in Brandon. The first to open in Winnipeg is the Southdale Centre location and Kildonan Place. Both of these stores occupy old Zellers locations.

There are likely only a few people who will mourn Zellers. It never did live up to potential, didn't capture the population like say... Canadian Tire, never became anyone's first choice for anything really. In the end, the smart move for Hudson Bay Company was to sell off the leases and use the money to at least save HBC. And it worked if the retail sales from last quarter of 2012 are to be believed. HBC is doing much better.

Target will be a huge improvement in retailing in Winnipeg and Canada. Each store has undergone a $10 million refurbishment. The Polo Park and Grant Park future locations will likely be much more.

I think the one disappointment people will have is that prices are not going to be as low as stores in Grand Forks or Fargo. Taxes and tariffs only count for a part of what the difference is. There is logistics involved as well and far greater competition in the U.S. To be blunt, world-wide manufacturers figure to have higher margins in Canada because it is considered less competitive or of value than the U.S. market. This forces Canadian retailers to charge more.

The only way to slowly force the prices down to something we see in the U.S. is for successful retailers like Target to be in the market. The scale needed and the competitive drive will certainly help.

What Canadians don't know and probably don't care since it doesn't affect them is that the U.S. government subsidizes or runs at a loss things that help make U.S. prices lower. And by that I mean the Interstate highway system and decades long support from the federal government, subsidized airports that don't charge user fees and a post office that loses money in the billions.

Imagine how that affects prices. A company can ship a product on a federally subsidized highway, place it in the mail offering free shipping cause of the subsidized mail and it can be sent via air because of federally subsidized airports.

As mentioned, Canadian don't care that this might not be sustainable in the U.S....they just wonder how it is that clothes cost so much cheaper there.

The stagnant sales over the last few years in the U.S. have meant that U.S. retailer are casting their eyes northward. We have seen a steady stream of U.S. stores and restaurants come up and we will see a lot more.

Target is not the only one to open up this week. On Thursday, Cabela's opens up their Seasons of Tuxedo location. It is a massive store and is sure to attract people from inside and outside the city to shop there. The fact that Winnipeg is head office to the Canadian operations will pay dividends for years.

A few closures to mention. After 52 years, Gord's Ski shop has shuttered its doors. The owner indicated the Kenaston location and poor snows over two winters along with a decline in snowboarding capped the iconic company.

Curiously, Dolce Vita in Polo Park is locked up in a dispute with Cadillac Fairfew, operators of the mall. No word on their St. Vital Centre location.

Portage Place

Portage Place Imax to Shut Down in March

I have written and talked a lot about Portage Place since 2008. Suburbanist and urbanists alike hate it. Not since Unicity Fashion Mall has a shopping area so universally been unloved. And we see what happened with Unicity.

The comments of the suburbanists run along this line:

You will never find a more wretched hive of scum and villainy. We must be cautious.

The outright hatred, dread and disdain of suburbanites of almost anything downtown is so deep, I have heard some people say they won't even go to a Winnipeg Jets game for fear of crime, parking and people who don't look like them.

The surprising thing is that some people do not believe The Forks is downtown and don't harbour the same ill feelings about the place. Why is that? Well, we'll get to that in another post.

All this city wide talk on Portage Place is a result of the impending closure of the Imax Theatre. The theatre built in 1987 with 276 seats has become obsolete in recent years due to its size and inability to land first run movies or 3D. The writing was on the wall. Polo Park's new Imax with 433 seats and 3D hastened the death.

Finding a new use for the theatre won't be easy. It represents challenges when it comes to its structure. That will be up to Peterson Group of Vancouver to decide.

There always seems to be the naive belief that the University of Winnipeg will swoop in and take over all the empty spaces downtown. I supposed it isn't inaccurate to say the university has indeed jumped on abandoned bus stations, racquet courts and army surplus stores. However, there is a limit to how much, how far and how often the university can do this.

The closure of Zellers and long term future of The Bay have a role in what happens to Portage Place. People forget that the goal of the mall was to link the north side of Portage from Eaton's to The Bay. Well, Eaton's is gone and the The Bay may be following. 

So what of the future of Portage Place?

Well, the one upside of Portage Place is the parkade. It makes money. A lot of it. However, the Peterson Group doesn't own it. If they did, they might be compelled to make additions to the mall such as a tower atop the east and west pads that have stood ready for years for whatever was desired above the mall.

The Prairie Theatre Exchange continues to thrive in the mall. 

Despite the common belief of a completely empty mall, the places does have tenants and more service-based businesses like dental clinics find the place useful as their downtown clients find they are convenient.

I still think the key to leveraging change lies with the parkade but North Portage Development Corporation seems reluctant to discuss that option since they use the money to subsidize other operations.

I have mentioned before and others are starting to repeat it: The food court attracts a bad element. It should be closed in favour of sit down casual dining to attract a hockey, business and an entertainment audience. However, that is a decision for Portage Place management.

It is possible that the LongBoat and Artis development will stimulate Portage Place to do their own makeover. Polo Park and St. Vital have all gone through major renovations whereas the downtown mall has not. Even Winnipeg Square and the Richardson Concourse have had upgrades.

Now that the Jets have returned, there are 10 years of labour peace in the offing. The Manitoba Hydro building is across the street, a hotel and office tower will be soon built. The potential is there for Portage Place to benefit if the ownership and the North Portage Development Coporation is willing.

As a few people have pointed out, it is always one fire after another being put out downtown. Still, we are seeing successes here and there. The continued growth of population around Waterfront Drive will be felt for years. Apartment conversions of hotels will bring a steady population to some streets. And new apartments will help cover surface parking lots. With people comes businesses. 

Portage Place is not going anywhere, anytime soon. And this is a problem in more ways than one. Still, there is no need to panic just yet. We have to see what developments around the MTS Centre will bring.

edit: Change CentreVenture to North Portage Development Corporation

CityTarget

CityTarget in Chicago

Target stores in recent weeks have opened their new urban concept store in Chicago to great fanfare. It is along a major transit corridor and built inside a beloved historic building. The store is smaller than their regular store and much smaller than the 180,000 square foot SuperTarget. Stores are scheduled for Los Angeles, Seattle, Portland.

Target already had two regular Targets in Minneapolis and Harlem, New York. The regular stores are not easily built or always suitable in large urban centres though. Also they are too large for the purposes of the company.

So what does a CityTarget have? It has food and quick service items for urban dwellers. Speed is what the store wants to offer cutomers. Get your milk and bread and oh, rain out...get an umbrella and light jacket. Quick, handy, urbane and needed.

With Zellers shutting downs its downtown store in the next little while and The Bay hanging by a thread along Memorial, one wonders if Target could be attracted to the location. And if not Target, one of the other retailers from the U.S. who are pushing hard for downtown locations such as Walmart.

The next big crisis downtown is The Bay.

In 2013, it is very likely the store will shutter the doors. If there is a retail chance in hell of saving the place, it will come from approaching companies like Target and seeing if it fits in their long view for Canada.

Bloomingdale's Coming to Winnipeg?

Bloomingdale's Coming to Winnipeg?

The Globe and Mail reported this week that luxury retailer Blomingdale's is in the final stage of talks with The Bay to come to Canada. There is no doubt that The Bay is trying to position itself well before other major retailers like Nordstrom's arrives.

There are three Bays in Winnipeg in Polo Park, St. Vital and downtown. It is the downtown stores that The Bay are trying to shore up first. To that end, it is Toronto, Calgary and Vancouver stores that get some form of Bay and Bloomingdale's combo.

After that, the concept is supposed to be rolled out across the country in boutique style. How much space this takes up in a store or how many stores is anyone's guess.

There is empty space in the downtown Bay so could we be looking at Bloomingdale's there?

Hudson Bay Company

The CBC was only one to report it.

I have not been in the store this year. I once worked in toys, records and books in the 1980s and it was a busy place on every floor.

If the story is true, it looks like The Bay was giving up even before Christmas. Can it be that we see a story in the next days that they are shuttering the whole place? Four floors?

We keep hearing that the owners are looking to unload some of the space to whoever will take it. I haven't heard a recent update on that matter but the writing seems to be on the wall.

Unlike the old Eaton's building, I don't think The Bay will face the wrecker but it is a large space to fill and it seems unlikely any retailer will be interested in anything except the first two floors and the basement if that.

Tuxedo Park Shopping Centre Part 1

The picture is the Agricultural College in 1903. Now the Asper Jewish Community Campus of Winnipeg.

The Tuxedo Park Shopping Centre was built in 1962 to serve the town of Tuxedo. It initially had a Safeway, a Bank of Montreal branch, the headquarters of the Tuxedo Police and a hotel.

The land used to belong to the Hudson Bay Company but was granted to Lord Selkirk in 1811. By 1857, it had been surveyed into farmland from the Assiniboine River out to 2 and later 4 miles. The region was known as Assiniboia and by 1880 it became the Rural Municipality of Assiniboia.

One of the first buildings to be built in the area was the The Agricultural College in 1906 along Tuxedo Avenue. It was deemed to be too small and 1911-1913, the college moved to Fort Garry, home to the present University of Manitoba.

From 1914 until 1917 this site was used by the Manitoba School for the Deaf, the first such institution in Western Canada. In 1917, the facility became necessary for wounded men from World War I. The building served as a hospital until 1919. Thereafter, the Canadian Army took over the building and from 1919 to 1968, it was the Fort Osborne Barracks. The Asper Jewish Community Campus of Winnipeg bought the site in 1997 and it is used as an educational and cultural center.

In 1904, 283 acres of the land along the river was bought by the City of Winnipeg for the site of Assiniboine Park.

From 1905 to 1913, Frederick W. Heubach and various investor acquired land for their new Tuxedo Park development. In 1913, the Town of Tuxedo was incorporated and Heuback became its first mayor.

The American firm Olmsted Brothers designed the town and that plan was followed assiduously for many decades.

A British firm held a small piece of the new town. It was a small triangle of land bounded by Tuxedo Avenue, Roblin Boulevard (later Corydon Avenue) and Edgeland Boulevard which was zoned for three apartment blocks and a shopping center.

That shopping center became what is the present Tuxedo Park Shopping Centre.

(to be continued)

Health Sciences Centre Part 1

Photo by the University of Manitoba taken in 1983. The former Manitoba Medical College. It is now the St. Regis Apartment.

The Winnipeg General Hospital was founded in 1872 on the estate of Andrew McDermot, the Red River Settlement's richest man. He was a former Hudson Bay Company (HBC) employee who eventually opened his own store and rode Winnipeg's growth to great fortune. His son-in-law Andrew Bannatyne became the driving force in establishing the hospital and donating the land for the present day hospital.

Today, the streets McDermot and Bannatyne take their names from these two prominent citizens.

As Winnipeg grew, other hospitals were built close to Winnipeg General. The Children's Hospital of Winnipeg was founded in 1909. The Winnipeg General Hospital, Maternity Pavilion was built in 1951. It later became known as Women's Pavilion. In 1962, the Manitoba Rehabilitation Hospital was built.

The medical school was built adjacent to Winnipeg General in 1883. The college, called the Manitoba Medical College, was the precursor to the Faculty of Medicine of the University of Manitoba. Today, the building is the St. Regis apartment block.

(to be continued)