Canadian Tire Corporation Acquires Real Estate Leases for Mark’s Expansion
Canadian Tire Corporation has recently acquired 10 leases for $1.6 million from Bed, Bath & Beyond in Canada. The acquisition is aimed at expanding the footprint of Mark’s stores, which is part of Canadian Tire Corporation’s banner.
CTC has designated six of the 10 leases to be acquired for relocating Mark’s stores in several areas in Alberta, British Columbia, and Ontario. Mark’s President, PJ Czank, stated that relocating these stores would enable them to provide more products and deeper assortments of their best brands, thus meeting their customers’ needs in these areas.
In addition to the Mark’s relocations, the agreement will also allow Canadian Tire Corporation to implement plans for four new Pro Hockey Life (PHL) stores in Ontario. The 10 leases combined represent over 242,000 square feet of retail space.
Canadian Tire Corporation, Limited comprises a group of companies that includes a Retail segment, a Financial Services division, and CT REIT. Its retail business is led by Canadian Tire, which provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive, and Seasonal & Gardening divisions. Its Retail segment also includes Mark’s, a leading source for casual and industrial wear, Pro Hockey Life, a hockey specialty store catering to elite players, and SportChek, Hockey Experts, Sports Experts, and Atmosphere, which offer the best active wear brands.
Canadian Tire Corporation operates close to 1,700 retail and gasoline outlets. Moreover, it owns and operates Helly Hansen, a leading technical outdoor brand headquartered in Oslo, Norway.
Retail Ventures CND Inc. was retained by Bed Bath & Beyond Canada LP and Alvarez & Marsal Canada Inc. to facilitate the sale of leases or other property rights for 54 leases of Bed Bath & Beyond and the 11 leases of Buy Buy Baby across the country.
Bed Bath & Beyond's Canadian Stores Close as Part of Restructuring Plan
Bed Bath & Beyond, the American chain of domestic merchandise retail stores, has announced the closure of its Canadian locations amidst a restructuring plan aimed at streamlining its operations. The decision comes following several years of significant net losses and declining revenues since 2018, further compounded by the COVID-19 pandemic.
As part of the restructuring plan, Bed Bath & Beyond offered 65 leases for sale in Canada, with 48 leases purchased by landlords and retailers in a recent sale process. The remaining leases were not able to be sold due to various reasons such as insufficient term, exclusives, or restrictions. In some cases, landlords bought back their own leases to control future tenancy.
The closure of Bed Bath & Beyond's Canadian stores, which employed approximately 1,400 employees, marks another example of global retail struggles due to shifting consumer demands and the impact of COVID-19 on the industry. The company's efforts to restructure its operations were interrupted by the pandemic, resulting in global supply chain disruptions and persistent inflation. While the company was able to address its liquidity constraints and improve its balance sheet and cash flows, inventory issues continued to plague the business through the 2022 holiday season.
Retail Ventures CND, the brokerage involved in the sale process, worked under the direction of Osler, Hoskin & Harcourt LLP in Toronto in the lease sale process that concluded on March 31. Sam Winberg, principal/broker of Retail Ventures CND, noted that there is now very little large format space available in the better power centers across Canada due to strong demand for space.
While Bed Bath & Beyond's Canadian stores may be closed, the company continues to operate its American locations and online retail platform, offering a wide variety of domestic merchandise to consumers. Retailers in all sectors must continue to adapt to changing consumer demands and market conditions to remain successful in a rapidly changing industry.