Strategic alliances, partnerships and business expansions are forming more and more across various retail niches. Many of the partnerships are either U.S-based business or other multinational corporations and they are partnering with established Canadian businesses.
From the beauty industry to business logistics, these strategic partnerships are forming with the purpose of expanding their Canadian retail operations. Accordingly, if you are considering investing in commercial retail real estate in Ontario, Alberta, or Saskatchewan provinces, the time is now, as retail demand is strong. Lets examine.
Beauty Business Expansion
The competition in the Canadian beauty market is becoming more intense as Sephora announced its partnership with skincare brand Kiehl’s and another beauty retailer, Morphe, opened its first brick-and-mortar store in the Ontario province. Their first store is at the Square One shopping centre and their second is at West Edmonton Mall. The Morphe brand is famous for discount brushes and eye shadow palettes versus Sephora is known to offer top brands in their stores catering to a high-end retail clientele. Both markets whether discount or those who want the top beauty brands are seeing a demand for their products.
Sephora and Morphe are not alone as Ulta Beauty “Ulta” which are considered the “Home Depot for women” beauty offers a one-stop shop for all things beauty, under one roof. They recently announced that they are a part of a growing list of retailers that are ready to expand north to Canada and put down roots. In an article by journalist with The Globe and Mail reports that Ulta is on the quest to find retail space for their first Canadian location.
Ulta and other retailers are expanding their footprint in Canada, thus if you have vacant commercial retail space, or are looking to enter the market, the time is now.
FedEx Strategic Alliance with Staples
Federal Express Canada Corp. (FedEx) plans to put Authorized ShipCentres in 305 Staple locations across Canada. This roll out will increase the company’s locations to 1,003 in Canada with several locations in Ontario, Saskatchewan and Alberta provinces that will benefit from the expansion.
Canadians know FedEx and trust their service. Creating better e-commerce experiences for Canadians is at the forefront of all retailers’ minds. Alliances are a way to empower Canadian retail businesses and keep them competitive.
The expansion of FedEx brings innovative solution to both online shoppers, and small to medium-size businesses. The Authorized ShipCentres will provide customers access to the global market place, right before the peak holiday shopping season.
Alliances like FedEx and Staples these are coming together faster. As retailers are closing retail locations in U.S, strategic expansions and deals are happening in Canada.
Whether it’s multinational beauty retailers, like Sephora, or multinational courier delivery services, like FedEx, expansions and alliances are happening more and more in 2019. FedEx alliance with Staples is another example of how to creatively service retail clients, and alliances are a way to lower the risk while increasing the exposure.
Contact ReDev today to learn more about investing in retail real estate in Ontario, Saskatchewan and Alberta provinces of Canada.