Demand For Luxury Retailers Rises

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    While big box retailers like Target have struggled to get a foothold in Canadian markets, demand for luxury retailers is strong and fuelling massive expansion projects at shopping malls across the country, says CBRE Group, a commercial real estate company. Its research shows more luxury retailers are predicted to arrive in Canada, albeit at a more moderate pace compared to the flurry of activity seen in the last three years. The aftermath of the 2008 financial crisis and recession spurred a boom in retail development with foreign retailers, primarily American ones, turning their sights to Canada and construction hasn’t kept up with demand. However, there is little to no vacancy in highly sought after shopping centres. Until more venues are built, finding a location is going to remain a challenge, it says. The study, which measured the number and type of retailers that set up shop in 2013, found that luxury and high-end fashion brands constitute the majority of new arrivals in Canada. Newcomers in the jewelry, designer fashion, and accessories categories are driving the demand for additional retail space.