With Tanger Factory Outlets announcing a northern move yesterday and Target Corp.'s purchase of 200 Zellers stores a few weeks ago, the U.S.-invasion everyone talked about at the beginning of the year is clearly moving ahead.
"The announcement is a noteworthy data point clearly showing that the increased demand by US retailers to set up shop in Canada is gaining momentum," said analyst Michael Smith at Macquarie Securities. "The news may be a signal that more US retailers (yet another wave) are planning to expand in Canada."
So which retailers will be here in the next year? Here's a scorecard.
Target
Tanger
Zumiez Inc.
Express Inc.
J. Crew
Dollar Tree
Marshalls
Kohl’s
Dick’s Sporting Goods
Hot Topic
Victoria’s Secret
Bed Bath & Beyond
And since Tanger opens factory outlets that contain smaller outlets for individual retailers, you can assume more of its U.S. partners will also open outlets. Some of the more upscale retailers include: the discount arms of Saks, Nieman Marcus, Barneys, Polo Ralph Lauren, Coach, Lacoste, Kate Spade, Michael Kors and Brooks Brothers.
"The arrival of the outlet center concept is a natural evolution in the Canadian retail real estate landscape," said Neil Downey, an analyst at RBC. "As in the U.S., the Canadian outlet centre will likely prove to be a niche retail concept (versus neighbourhood, community and power centre formats), yet is will provide a shopping experience which Canadians have already embraced on their travels south of the border."
