Major US Retailers Arriving in Vancouver
Mass Retail Industry September 24, 2012
A number of major US retailers have recently made the decision to open their doors in Vancouver, which shows how quickly this market is growing. The latest is Nordstrom's which has unveiled plans for a major outlet in downtown Vancouver. The plans for the store include a major renovation of one of the most central spots in the downtown core, with extensive outdoor spaces, rooftop gardens, and cafes. This location will be a flagship location for the company, as they expand into Canada.
Another major retailer, although not a bricks and morter traditional one, that has also recently announced plans to expand into Vancouver, is Amazon. Currently their only distribution center in Canada has been located in Toronto. Amazon has cited several reasons for making this move into Vancouver logistics and sales, primarily being that the market in Western Canada has grown to the point that justifies it. This Vancouver Distribution center will employ 100 people, and is scheduled to start operating this fall.
Other US retailers, recognizing the value of the Vancouver Logistics and Sales market, have been planning to enter or expand operations. Target has purchased Zellers, and will be rebranding all of its locations into Target stores, as well as opening several new stores. Lowes has been opening retail locations in Canada for a few years, and recently made a take over attempt of Rona, a Canadian hardware store chain, to accelerate their expansion. Although this effort failed, it would have represented a significant investment in Canada by Lowes.
The arrival of these companies, and others, into Canada, promises to shake up a retail environment that many think has not had enough competition. This will add new elements to their vendors logistics strategies, but also represents a great opportunity. Vancouver continues to grow in its role as a major North American port for Retail product to enter into. Canadian Pacific railway has announced, in response to this growing volume, that they will be offering a new expedited service, with four day service into Toronto, and six days into Chicago. The increasing availability of cost effective rail options bodes well for the logistics industry in Canada, and lower costs should be reflected throughout the supply chain. At McKenna, we are here to help you should you decide that you need someone to help you out with your Vancouver logistics and Vancouver transportation!