Express Stores Closing in Canada

Not a Canadian, but wonder why the Canadian market is so difficult? Obviously different countries have different climates, tariffs and subsidies, shopping habits, tastes, cultural norms etc but the Canadians on the forum seem to have a harder time with fashion retail locally and online.

Do you think US companies assume it is like the US market and ignore the differences, or that Canadian shoppers prefer Canadian brands/ownership, or trade restrictions etc?

NZers often think of themselves as similar to Canadians ( a smaller population next to a larger population) and we have a lot of Australian fashion retailers in our market. One or two have up and left (Sportsgirl, Katies, Sussan, David Lawrence to name a few off hand) but many seem to be doing okay (Country Road, Just Jeans, Witchery, Dotti, Decjuba, Jeanswest).

8 years ago

Style Fan

Veteran

I only went into one Express in Mississauga (I think) and it was a nightmare. It looked like someone had thrown everything around during a temper tantrum. I quickly left.
I shop in the US and in Canada. Not sure what the difference is in the market.

8 years ago

Anonymous

Sally - the barriers to entry and success in the Canadian market are founded on a huge geographical area with a small population ....which makes efficient and effective distribution a challenge. Shipping/transport is expensive because of the economies of scale and the distances involved. As an example , I live in one of Canada's biggest cities (and the provincial capital), yet it is an 6-8 hour drive to the next closest city of any size. Shipping costs are also why we don't get free delivery with a lot of on-line orders.

Distribution channels were a main factor in Target's demise, along with consumer expectations for price not matching what an American company can provide due to the significant currency value difference.

US companies have nailed down the just-in-time inventory replenishment systems necessary to keeping big chain stores fully stocked, but have not yet figured out how to replicate it in another country, like Canada. Did you know that any 100% cotton items coming into Canada from the US (and that are made in the US) are subject to an 18% duty charge on top of the wholesale price? This drives prices up to untenable levels for a lot of labels. This is what happened to lines like Eileen Fisher.

And why do we not have our own retail success stories like AUS/NZ does? I don't know, and I sure wish someone would figure it out. The ones we do have (Roots, for one) aren't very interesting from a progressive fashion viewpoint. I love my country and would not want to live anywhere else , but the cost of living here is a lot higher than in the US, that's for sure.

8 years ago

Jules

Veteran

Sal, for reference we still have tons of American retail. The malls are full of American chains and now anchor stores (Nordstroms, Saks). Lots of Canadian chains are also failing (Danier, Jacob, etc). Target had taken over many locations from Zellers, a Canadian chain that couldn't compete with Walmart. The retail problems aren't as simple as 'US stores don't understand Canada'. Lisap's points are all good. I'd just add that it make sense to me that Aus/NZ, being far away and with opposite seasons, would have more fashion independence from the US. Imagine the cultural and economic dominance of the US as felt globally, but experienced as from your only real neighbour, with much of the population closer to a major US city than to another Canadian one. Well I guess NZers can relate to some of that...

8 years ago

Sal

Veteran

Thanks Jules and Lisa, yes we can relate for sure!! I had considered most of these factors except for that Canadians living so close to US cities, often closer than their own. Despite what the odd person thinks, you cannot drive across the Sydney Harbour Bridge from NZ to Australia.

And it is interesting times in retail here for sure - online shopping from Asos and many many others, constant sales, offshore production in the most part.

8 years ago

Carla

Veteran

My favourite all purpose work pants are a pair of grey Express Editor barely boot cuts. They are one store that carries (carried?) tall sizes in-store.

8 years ago

rachylou

Veteran

I went off and googled 'Canadian fashion market analysis.' Seems the market is struggling all around? Really interesting points about geography and population and distribution.

I also wonder - well, admittedly I've only spent time in Canada with my own family, so I'm sure that colours my impressions - but shopping never struck me as the blood sport that it is in the US. I remember, me being me, going to look for the hipster shops in Toronto. Infinitely more restrained. No miles and miles of $500 yarn doll shops or high density/intensity $500 yarn doll pits... you know those little courtyard developments, where the yarn dolls attack you with sharp sticks (driftwood, $600).

And then I went to a free, immensely superior performance by the Toronto ballet in the park.

Free! Superior!!

...!!

8 years ago

Marilyn

Veteran

We have a couple Express stores here in Ottawa. I used to check them out when they first opened but have never found anything there of interest. No big loss for me.

Didn't realize that BCBG Max Azria is leaving Canada as well. That explains why the Rideau Centre store is liquidating.

8 years ago

Anonymous

I can't speak about why Express failed but I did want to share my thoughts on Target, if I could.

The thing about Target in Canada is that they took over all the Zellers, and they didn't even renovate anything so you know, you walk in and you see the horrific neon lighting and the grungy linoleum and the layout is the same, and it feels like you're still in Zellers...oh and the brand's colours are exactly the same so again, it really felt like you were in Sellers. This inability to distinguish themselves from zellers played a part in their demise, I'm sure.

8 years ago

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