City
Big Box Bankruptcy a Sign of Things to Come?
Big box retailer and wedding registry superstar Linens 'n Things will close all of its U.S. and Canadian stores, including 10 GTA locations. The latest victim of the economic meltdown, Linens 'n Things will go out of business after filing for bankruptcy protection in May, closing 120 stores, and then failing to turn things around.
With home prices falling, angst over property assessments and talk of recession, the comings and goings of Toronto retailers (especially the big box ones who shut out the local independents) can slip under the radar.
Or maybe that's just because we're all too busy looking at our own bottom lines.
Winnipeg blogger Chris D mentions it's not just the big box stores in trouble in his part of the country, and some of Toronto's independent shops must be worried about their fate, too.
Although if I were Placewares - offering all the same stuff, in a fraction of the space - I'd be doing a quiet happy dance.
As the cost of property taxes take their toll on homeowners, the relatively stable (so far) Canadian retail sector may start to take a hit, and small business owners may have noticed a drop in sales with the economic woes of September and October. We'll see what that means for some of Toronto's independent retail players, such as our best vintage furniture shops, green retailers, or vintage clothing stores.
Toronto wedding registry titans William Ashley and The Bay seem to be weathering the storm so far, but it will be interesting to see if Linens 'n Things' direct competitor Bed Bath & Beyond slows its Canadian expansion plans, or capitalizes on liquidation sales.
I can't say I'm too worked up about the loss of Linens 'n Things. It's a specialty big box store that was mostly good just for registries, and an impressive wall of kitchen gadgets (although I've always preferred Bed Bath & Beyond in the States). But I'm glad I don't have an upcoming wedding for which I'm registered at Linens 'n Things. One of the best reasons to register there was the return policy, which has now disappeared, even faster than the stores.
Oh, and a note for any Linens 'n Things employees: you may want to update the careers page to indicate you're no longer "seeking great talent."
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http://www.reuters.com/article/marketsNews/idCABNG16239720081017?rpc=44
http://www.cbc.ca/money/story/2008/10/20/bc-intrawest-credit-squeeze.html
Gee Chief, did you think you were reading The Economist or something?
Kudos to BlogTO for the attempt at rounded-out coverage of Toronto issues, including how we're affected locally by the credit freeze around the world.
(Cue rant)
In the past, stores along main streets were easily re-usable. This is trickier in the big-box sprawlands, which, minus the store, suddenly become wastelands and testaments to we're-supposed-to-learn-from-the-US-but-are-actually-just-as-dum Canadian urban development.
Seriously, what kind of idiot town allows for a store set back on a giant parking lot outside of downtown to suck away the shopping energy? I'm looking at you, Bracebridge, Cobourg, Lindsay, and almost every other small town in Ontario. I could care less about big box vs mom and pop, but put the stores near existing infrastructure with real streetscape. Wal-Mart wants to come to Orilla or Niagara Falls? Great, but make them jam a store downtown on an empty lot or in reused buildings and demand windows, rear lots and sidewalks. Traffic is good, people, in streets and on sidewalks. Oh, that's right, small towns are desperate for cash and will allow anything to be built because everything in Canada is underfunded...
Even Laird Drive, an ideal spot for this kind of shopping, is an unmitigated disaster because of idiotic planning to put everything facing inward onto a parking lot rather than lining the streets with storefronts with parking in the back. Shocking to say it, but Toronto could have learned a thing or two from the Bronx, where this kind of development was done right. Applebees and Target on an actual sidewalk? Damn right:
http://tinyurl.com/6ylh7p
(End rant)
Anyways, the boxes were built and now the question is what to do with them, starting with Linens and Things. It's still a relatively new phenomenon in Canada where the number of abandoned Wal-Marts has been fairly small, but old hat in the US. There is some pretty interesting stuff documenting what follows:
http://www.bigboxreuse.com/
Story on this was actually on NPR the other day:
http://www.npr.org/templates/story/story.php?storyId=95788156
LNT is quite small in terms of size and rarely an anchor that keeps a whole plaza alive, so their stores will probably get reused by other stores. Still, keep your eyes out for other creative re-uses.
I know one of their locations in Toronto will be taken over by a small local retailer.
A lot of the value and expertise (yes, even on the economy) this community blog offers are found in our readers' contributions in the comments. We don't pretend to be economists, and I think I speak for everyone at blogTO when I suggest that we'd prefer to see comments offer insight rather than insult.
Comments like yours offer zero insight. [darthvadervoice]Consider joining the more constructive of the bunch[/darthvadervoice]
I used to come to blogto to find out fun and entertaining things about the city, hidden gems, etc.. now the blog is just like the globe and mail, constantly posting negative news, to get people worry about things that are nothing unusual.. i think Tim as a publisher should start to think about where this blog is going from an editorial standpoint...
Tim *is* looking at where the blog is going; I hope you participated in the recent reader survey. But don't you think that Torontonians have the economy on our minds? Shouldn't a blog by and for Torontonians reflect that?
And if you look at recent posts, there's some amazing content covering hidden gems, arts, etc.
The beauty of the blog format is that if something doesn't interest you - say this post - you just scroll past it to the next one. Heck, even I like sushi more than Linens 'n Things.
Thanks for coming back with feedback that we can actually embrace, rather than than simply calling our efforts laughable.
the average Canadians(99%) know nothing about the economy, that's why i call articles like this laughable.. most Canadians can't even do simple maths, leave alone economy.. this apply to Americans too.. people now seriously think that the sky has collpased.. they are going to get houses way below purchase price..about this Linens and whatever.. urgh.. maybe because Home Sense.Winners business model is so successful, so they are killing the competitors, opening more stores.. so that to me that's good news, people are actually willing to spend more if you have the right formula!
Us laypeople appreciate it.
The mic is in your hands... feel free to share your wisdoms on the economy right here.
So what you're essentially saying is the net result of this little economic blip we're experiencing is that some buyers are going to get good deals on houses, and that the closing of Linens-N-Things - which has 411 stores and posted sales of $2.8 billion in 2007 - just before the Christmas buying season is not because of the economy, but because the housewares retail market is saturated?
Fascinating theory. Have you ever taught economics 101?
I guess because these companies expanded over the past, it means the economy isn't going downhill, Good Point. Problem Solved. None of them borrowed money to expnd either.
Jack will be making a state of the nation address tonight on TV as he is the nations foremost autority on this subject. Jack can you explain global warming to me???
St. Hubert just added a new coleslaw to its menu. That's more proof for that the economy isn't in decline
My mistake you said it wasn't so bad NOT that is wasn't going down hill at all.
"if the economy was so bad, these companies wouldn't be expanding the division"
Just because some companies have $$ to expand, doesnt mean consumers have the $$ to take advantage of thier expansion.
maybe the content shift in the blog is a sign of people's growing concern with larger issues? i know most people didn't want to talk housing or economy with me a year ago, but now it's on their lips every day.
who cares about St hubert, it doesn't make any of the Top 10 here...don't readers here only go to those restaurants reviewed by blogto? btw, if the economy is going downhill, can we have some stories on how to make your own meal under $2..i am having trouble keeping up with all the fancy restaurants, brunches here...certainly an eye opening experience when people can afford spend $20 on eggs for sunday brunches while crying recession
I don't do global warming.. that's for Dion
1) The economy is slowing (but in TO it isn't as bad as the US...yes we will most likely have a recission but it will be nowhere as deep as the US).
2) Linens'n'Things was on the brink prior to the recission due to apoor investor decision to leverage itself up and give it no breathing space for a bad year. (And it has continued to lose market share due to poor management decisions).
Apple sells 6.9 million 3G iPhones, profit up 26%
Ba Da Da Da Da I'm lovin it
oh really, and I thought it was a sign of things to come
If you really think about it how often do you buy new housewares? Of those times how many justify a trip to a specialized retailer rather then just picking it up elsewhere when your out?
I have been into the store 3 times in the last 2 years and every time it was to simply look around. I needed things but found the prices too expensive relative to the quality of the items.