Once known primarily for its selection of work boots and flannel, apparel and footwear retailer Mark’s is venturing into largely unexplored territory: The upscale shopping mall.
The Calgary-based retail chain, a unit of Canadian Tire Corporation (CTC) since 2001, is opening its largest-ever store at the West Edmonton Mall this October. Mark’s has traditionally favoured free-standing stores, with vice-president of operations Kris Maslanyk telling Marketing they account for approximately 90% of its 380 locations.
The planned 22,000 square-foot store in Canada’s largest mall – which boasts approximately 3.8 million square feet of retail space – will be up to 50% larger than a typical Mark’s store, which ranges in size from 12,000 to 16,000 square feet.
Maslanyk described the store as a “lab,” where Mark’s will continue testing a variety of concepts: An accessories shop, multiple store-within-store offerings for brands including Alfred Sung, Columbia Sportswear and Levi’s, and digital technologies such as screens informing shoppers about the features and benefits of certain products.
CTC has identified transitioning from so-called “old-world retailing” to a digitized environment as one of its corporate priorities for 2015, noting that the future of retailing requires “significant investment” in technological platforms.
The new store will also highlight a selection of casual footwear brands including Merrell and Skechers, while an industrial wear section – something of a rarity in mall environments – will feature manufacturers like Helly Hansen.
It will also carry some higher-cost items, such as an $80 pair of sunglasses, in order to determine customer appetite for those types of products. “Not only are we going to have that great value and quality, we also feel that when you’re in a mall environment you can probably capture a little bit more [share of wallet],” said Maslanyk.
Toronto-based retail consultant Ed Strapagiel called the store a logical move for Mark’s as it continues to transition from a predominantly workwear-focused business into a casual clothing retailer.
“One of the things you do once you start getting into the true fashion business is have a flagship store or concept store in a high-traffic area, so that people can see it and change their minds about what the store is about,” said Strapagiel.
A traditional challenge for Mark’s, he said, is that many of its stores have been situated in “B” locations and haven’t traditionally inspired customers to window-shop, both areas addressed by the new Edmonton store.
Mark’s first began testing the shop-within-a-shop concept at stores within Winnipeg’s Polo Park and Calgary’s Deerfoot Meadows about two years ago. Those stores also featured wider aisles, wood finishes and new fixtures that distinguished them from the no-frills environment of traditional Mark’s stores.
“The past couple of years have been about creating a better environment, and now it’s supplementing it with these great brands to gain a new customer,” said Maslanyk.
While about 80% of Mark’s inventory is comprised of private label brands such as Denver Hayes, WindRiver and its industrial-wear brand Dakota, the company has added more national brands like Alfred Sung and Columbia to its product assortment in recent years.
“I think this is going to be a great test to showcase some of these brand shops in all different areas of the store,” said Maslanyk. “The national brands do help drive some authenticity and foot traffic.”
He said Mark’s has experienced “phenomenal” increases of as much as 50% in the jeans category, which he attributed to the Levi’s shop-within-a-shop concept, supported by the chain’s “Everything in jeans” campaign.
“We’re pretty confident in a lot of the new strategies we’re implementing, so once we do that and see success within the mall, we’re going to figure out what we can use across the fleet of stores,” he said.
Mark’s has spent the past two years making a concerted effort to increase its share in the casual apparel market. It dropped the words “Work Wearhouse” from its name in 2010 – 34 stores still bear the “Work Wearhouse” name, but Maslanyk said the transition to “Mark’s” is moving “very quickly” – in an attempt to expand its customer base.
While Mark’s remains the country’s largest seller of industrial wear, Maslanyk said it also appeals to “casual confident Canadians” 30-55 who like what it represents from both a quality and price standpoint.
In CTC’s first quarter earnings report, Mark’s reported a 5.5% increase in same-store sales – total revenues for the quarter were $209.6 million, up 2.6% from $204.3 million in the corresponding year-earlier period, which Maslanyk said were driven in large part by its current strategies.
But, while Maslanyk called the increase “very strong” in the current economic climate, Strapagiel deemed it “about average,” pointing to a 7.6% increase for clothing and clothing accessories stores on a year-to-date basis. “Clothing and accessories sales have been doing quite well on a year-over-year basis, so 5% is good but not exceptional,” said Strapagiel.
He called Mark’s in its current incarnation “a good solid business,” and warned against trying to put too much distance between its retail roots. In other words, if the work-boot fits, wear it.
