DECEMBER, Exclusive Research Report CANADIAN SHOPPING CENTRE. In partnership with. Developed by. RetailCouncil.org

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1 DECEMBER, 2017 Exclusive Research Report CANADIAN SHOPPING CENTRE In partnership with STUDY 2017 Developed by RetailCouncil.org

2 design with retail soul Jean-Paul Fortin Yorkville Village, ON A new signature look was created for Jean-Paul Fortin, the multi-brand footwear retailer, for their first location outside of Quebec at Yorkville Village in Toronto. Befitting of its location in an urban upscale shopping destination, the store evokes understated luxury. CF Sherway Gardens Toronto, ON The expansion drove a complete renovation of the existing mall, the redesign of eight garden courts, new guest amenities and a relocation of the Food Court. The vision supports twostorey retail storefronts immersed in natural light. There is also significant exposure for new restaurants with patio spill-out and a new mall entrance facing a major highway.hway. Saks Food Hall by Pusateri s CF Toronto Eaton Centre, ON The aesthetic objective was to create a space that would reflect the elevated appeal to both the Pusateri s and Saks brands in a resolutely modern style that projects a contemporary lifestyle image. The food hall features 24,000 square feet of unique culinary stations, gourmet ingredients, artisanal products and prepared foods. let s talk retail design! info@ghadesign.com programing & planning concept & schematic design design development design technical drawings construction coordination brand graphics II

3 CANADIAN SHOPPING CENTRE STUDY 2017 TABLE OF CONTENTS 1. Introduction Executive Summary Top Malls in Canada By Sales Per Square Foot Top 10 Largest Malls in Canada by Square Footage Top 10 Busiest Malls in Canada By Annual Pedestrian Count Canadian Regional Analysis...10 a. Vancouver/Lower Mainland, British Columbia...12 b. Calgary, Alberta...18 c. Edmonton, Alberta...22 d. Winnipeg, Manitoba...26 e. Greater Toronto Area, Ontario...30 f. Hamilton/St. Catharines/Niagara, Ontario...38 g. Ottawa/Capital Region...40 h. Montréal, Québec...44 i. Québec City, Québec...48 j. Maritime Provinces Top Shopping Mall Trends Conclusion...62 Retail Council of Canada All rights reserved.

4 Let our payments solutions take your business to the next level. As Retail Council of Canada s Preferred Processing Provider for over 10 years, and a global financial innovator, Chase Paymentech provides payments solutions and expertise for in-store and e-commerce situations to help you grow no matter where your business is headed. We were ranked the #1 acquirer 1 globally in 2016 and our clients know us as the company that helps them quickly and reliably accept payments in 130 currencies with world-class cybersecurity. Visit chasepaymentech.ca for more on how we can help. RETAIL COUNCIL OF CANADA S PREFERRED PROCESSING PROVIDER FOR OVER 10 YEARS 1 The Nilson Report, Chase, the Chase Octagon, and Paymentech are registered trademarks of JPMorgan Chase Bank, N.A JPMorgan Chase & Co. All rights reserved.

5 1 INTRODUCTION Welcome to Retail Council of Canada s second Canadian Shopping Centre Study. The study examines Canadian malls on ranking metrics including productivity, size and visitors. Canada s top malls continue to thrive, with leading centres investing in their properties as well as courting the top domestic and international retailers. In an age where e-commerce is growing quickly, physical retail can only succeed when it is experiential, creative, and customercentric. Top malls are responding to this challenge with additional investments, services and amenities. While many top malls are performing much better than their U.S. counterparts, many landlords in this country will face the ongoing challenges of a sector in constant disruption and re-invention. A case in point is the announcement of Sears Canada s departure from the retail space. This change in our landscape will in itself result in approximately 15 million square feet of vacated retail space nationally. To say that consumer shopping habits are redefining our bricks-and-mortar environment is an understatement. With a larger share of the customer s wallet dedicated to online shopping, entertainment, food, travel and the likes, shopping malls will be constantly challenged to up their game to attract and retain customers again and again. Who ever said retail was easy or boring! We hope you enjoy our Study and thank all those who participated. For more information on the Study and Retail Council of Canada, please visit our web site at Kind regards, Diane J. Brisebois President and CEO, Retail Council of Canada ABOUT THE STUDY AUTHOR Craig Patterson is a retail analyst and founder of the leading Canadian retail industry news publication, Retail Insider. He holds Bachelor of Commerce and Bachelor of Law degrees from the University of Alberta, and is also the head of research at the University of Alberta School of Retailing. He has been studying the retail industry for over 25 years and has a keen interest in shopping centre real estate. Retail Council of Canada All rights reserved. 1

6 It s Do you know why you have customers? This is no longer a simple question. Why? Because ongoing shifts and trends in global markets, the rise of the millennials and the exponential proliferation of connected devices have all dramatically upended consumer behaviors and the various approaches traditionally used to analyze them. This in turn has led to a perfect storm of disruption, especially for retail outlets and the shopping centres that house them a storm that isn t merely on the horizon, it s here now. If the next two to three years are indeed more transformational than the previous 50, as many expect, how will you prepare? Start by reading Me, My Life, My Wallet, and don t come in from the storm... Ride it. kpmg.ca 2018 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved

7 2 EXECUTIVE SUMMARY Retail Council of Canada s second Canadian Shopping Centre Study analyses Canada s top malls based primarily on productivity, size, and pedestrian counts. It then examines 10 Canadian regions based on demographics and provides information on top centres as well as highlights local facts about each region and its malls. The study also dives extensively into key trends seen among leading shopping centres in Canada, including an extensive list of best practices. Specific mall data was collected directly from landlords while reference data was collected from several sources as noted. Canadian mall productivity numbers were collected for the 12-month period ending June 30, 2017 KEY OBSERVATIONS Canada s top malls continue to thrive. While there are regional differences in terms of overall productivity, Canada s leading malls are healthy, and top centres continue to see investment and innovation. OTHER FINDINGS INCLUDED: Shopping centres are enhancing their food & beverage options, by creating food halls and adding full-sized restaurants. Landlords are more and more focused on creating a shopping experience that is more convenient, enjoyable and entertaining. Pop-up/curated retail is more popular than ever. A range of brands and price points continue to open in malls, with top malls featuring a range from the affordable to the luxurious. International brands continue to come into Canada, with top malls featuring a range of retailers and retailer types. Some of the country s top malls are looking to diversify their existing sites by adding housing and other amenities. Information in this study is collated from industry data and from noted participants. Retail Council of Canada, to the fullest extent permitted by law, makes no warranty (express, implied or otherwise), or assumes any legal liability or responsibility for the accuracy, completeness, reliability and usefulness of this information. Some opinions in this report are based on current market trends and may be subject to change. Retail Council of Canada All rights reserved. 3

8 3 TOP MALLS IN CANADA BY SALES PER SQUARE FOOT For the 12 months ending June 30, 2017 Rank Mall Name City Province Sales Per Sq Ft 1 Yorkdale Shopping Centre Toronto Ontario $1,653 2 Oakridge Shopping Centre Vancouver British Columbia $1,579 3 CF Pacific Centre Vancouver British Columbia $1,531 4 CF Toronto Eaton Centre Toronto Ontario $1,528 5 Southgate Centre Edmonton Alberta $1,147 6 CF Chinook Centre Calgary Alberta $1,075 7 Square One Shopping Centre Mississauga Ontario $1,064 8 Metropolis at Metrotown Burnaby British Columbia $1,031 9 CF Rideau Centre Ottawa Ontario $ CF Sherway Gardens Toronto Ontario $ CF Fairview Mall Toronto Ontario $ CF Richmond Centre Richmond British Columbia $ CF Masonville Place London Ontario $ CF Polo Park Winnipeg Manitoba $ Conestoga Centre Waterloo Ontario $ Mapleview Shopping Centre Burlington Ontario $ CF Market Mall Calgary Alberta $ Guildford Town Centre Surrey British Columbia $ Park Royal Shopping Centre West Vancouver British Columbia $ Scarborough Town Centre Toronto Ontario $ CF Carrefour Laval Laval Québec $ Coquitlam Centre Coquitlam British Columbia $ Halifax Shopping Centre Halifax Nova Scotia $ Place Ste-Foy Québec City Québec $ Bayview Village Toronto Ontario $ CF Markville Richmond Hill Ontario $ Vaughan Mills Vaughan Ontario $ Upper Canada Mall Newmarket Ontario $ CF Lime Ridge Hamilton Ontario $ CF Fairview Pointe Claire Pointe-Claire Québec $748 (Source: Retail Council of Canada, Canadian Shopping Centre Study, 2017) 4 Retail Council of Canada All rights reserved.

9 Make a personal memory out of your In-Mall Activation with the only experiential agency that has: A registered strategy formula for In-Mall Sampling. Experience in every business category. National multi-event tour success. Turnkey activation ability. makepeoplehappy.ca Retail Council of Canada All rights reserved. 5

10 3. TOP MALLS IN CANADA BY SALES PER SQUARE FOOT RETAIL COUNCIL OF CANADA ANALYSIS Canada s top shopping centres continue to thrive. An impressive eight centres boast annual sales per square foot that exceed $1,000 with several others close behind. For the second year in a row, Toronto s Yorkdale Shopping Centre ranked as the country s top mall in terms of annual sales per square foot. Of the top 30 malls listed, 11 are in the Greater Toronto Area and 15 are in Ontario. Seven of the top 30 malls are in the Greater Vancouver Area, making it the top region per capita for the most productive malls in the country. While most of the country s top malls are in major metropolitan centres, strong centres can also be found in the Ontario communities such as London, Waterloo, and Hamilton. All top 30 shopping centres listed, except for Park Royal, Scarborough Town Centre and Bayview Village, include an Apple Store as a tenant. Yorkdale and Chinook Centre both house highly productive Tesla stores. While most of the top malls feature a mix of retailers, a substantial number have a growing list of luxury retailers. Three of the top 10 centres above noted are in downtown cores. Alberta s top malls continue to thrive despite economic challenges, with Edmonton s Southgate Centre and Calgary s CF Chinook Centre ranking 5th and 6th, respectively. Note that the 2017 Canadian Shopping Centre Study is based on 12-month data collected as of June 2017 while the 2016 study reflected 12-month data as of August Additionally, the 2017 study focuses on centres with GLA exceeding 300,000 square feet in size. 6 Retail Council of Canada All rights reserved.

11 U.S. MALLS COMPARISON The United States has many productive centres, though several declined to provide their performance results to Retail Council of Canada for this year s study. Consensus is that the Bal Harbour Shops in Bal Harbour, Florida, is the top centre in the United States with sales per square foot exceeding US $3,000. The landlord would not confirm exact numbers for Sales productivity in Canadian Malls vs. U.S. Malls Canada ($C) $680 $743 $761 $766 United States ($US) $474 $474 $467 $466 (Source: International Council of Shopping Centres, July 2017, not seasonally adjusted) Canadian malls have seen a positive trend in terms of overall annual sales per square foot for non-anchor tenants since 2014, while the United States has seen minor decreases year-over-year. Canada saw a smaller increase year-over-year between 2016 and 2017, while the United States saw a minor decrease. Gross Domestic Product per capita Shopping Centre space per capita (GLA) Canada $46,437 United States $57, United States 16.4 Canada (Source: International Monetary Fund 2016, $US) (Source: International Council of Shopping Centres) Retail Council of Canada All rights reserved. 7

12 4 TOP 10 LARGEST MALLS IN CANADA BY SQUARE FOOTAGE Rank Mall Name City Province Size (square feet) 1 West Edmonton Mall Edmonton Alberta 3,200,000 2 CF Toronto Eaton Centre Toronto Ontario 2,098,754 3 Square One Shopping Centre Mississauga Ontario 1,904,595 4 Yorkdale Shopping Centre Toronto Ontario 1,841,961 5 Metropolis at Metrotown Burnaby British Columbia 1,795,326 6 Scarborough Town Centre Toronto Ontario 1,593,248 7 Park Royal Shopping Centre West Vancouver British Columbia 1,501,405 8 CF Carrefour Laval Laval Québec 1,403,947 9 Les Galeries de la Capitale Québec City Québec 1,348, Vaughan Mills Vaughan Ontario 1,270,163 (Source: Retail Council of Canada, Canadian Shopping Centre Study, 2017) RETAIL COUNCIL OF CANADA ANALYSIS West Edmonton Mall remains the largest mall in Canada. CF Toronto Eaton Centre is Canada s largest downtown shopping centre, and is larger than most sprawling suburban centres. Canada s largest malls are spread out geographically, though they tend to be in larger metro regions. West Edmonton Mall remains the biggest mall on the continent, though three American malls will eventually surpass Canada s West Edmonton Mall in size. Landlord Triple Five (which also owns West Edmonton Mall) plans to expand Mall of America in Bloomington, MN, as well as open two larger centres (each with in excess of three million square feet of retail space) over the next several years, both named American Dream, one will be in New Jersey, the other west of Miami, Florida. 8 Retail Council of Canada All rights reserved.

13 5 TOP 10 BUSIEST MALLS IN CANADA BY ANNUAL PEDESTRIAN COUNT Rank Mall Name City Province Annual Footfall 1 CF Toronto Eaton Centre Toronto Ontario 50,100,000 2 Metropolis at Metrotown Burnaby British Columbia 27,967,061 3 West Edmonton Mall Edmonton Alberta 27,000,000 4 Centre Eaton de Montréal Montréal Québec 24,100,000 5 Square One Shopping Centre Mississauga Ontario 23,000,000 6 Scarborough Town Centre Toronto Ontario 22,000,000 7 CF Pacific Centre Vancouver British Columbia 21,600,000 8 CF Rideau Centre Ottawa Ontario 21,400,000 9 Yorkdale Shopping Centre Toronto Ontario 18,000, The CORE Calgary Alberta 16,923,382 (Source: Retail Council of Canada Canadian Shopping Centre Study, 2017) Top two US Malls as a comparison Rank Property City Metro Region State Est. Number of Visitors Annually 1 Ala Moana Shopping Center Honolulu Honolulu Hawaii 42,000,000 2 Mall of America Bloomington Minneapolis Minnesota 40,000,000 (Source: Information supplied by property landlords) RETAIL COUNCIL OF CANADA ANALYSIS CF Toronto Eaton Centre remains as North America s busiest shopping centre, surpassing the top US centre by 8 million annual visitors. Canada s busiest malls tend to be in metro regions with a population surpassing 1-million people. Remarkably, four of Canada s top 10 busiest malls are in urban cores (CF Toronto Eaton Centre, CF Pacific Centre, CF Rideau Centre, The CORE). In the United States, none of the country s top 10 malls are downtown. This can be attributed to factors including stronger urban cores in Canada as well as a combination of history, culture, downtown population concentration and mix, investment priorities, and transit access when compared to most cities south of the border. Retail Council of Canada All rights reserved. 9

14 6 CANADIAN REGIONAL ANALYSIS Malls were selected primarily based on productivity, followed by size and foot traffic. Data for mall space per capita is from Ryerson University s Centre for the Study of Commercial Activity (CSCA). Population, and population growth numbers are from Statistics Canada, 2016 estimates, and average household incomes are via Environics Analytics. The following pages feature regional demographic data and top shopping centres for census metropolitan regions (CMA) in excess of 750,000. 6a. VANCOUVER/LOWER MAINLAND 6b. CALGARY, ALBERTA 6c. EDMONTON, ALBERTA 6d. WINNIPEG, MANITOBA 6e. GREATER TORONTO AREA, ONTARIO 6f. HAMILTON/ST. CATHARINES/NIAGARA, ONTARIO 6g. OTTAWA/CAPITAL REGION 6h. MONTRÉAL, QUEBÉC 6i. QUÉBEC CITY, QUÉBEC 6j. MARITIME PROVINCES * * The study includes a region for the Maritime Provinces (New Brunswick/Nova Scotia) to provide balance, recognizing that the population threshold of 750,000 residents could not be met in some areas. 10 Retail Council of Canada All rights reserved.

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16 Tsawwassen Mills, South Delta 6a. VANCOUVER/LOWER MAINLAND, BRITISH COLUMBIA METROPOLITAN POPULATION: 2,548,700 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 1.7% AVERAGE HOUSEHOLD INCOME:* $102,242 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet TOTAL SALES PRODUCTIVITY FOR NON-ANCHOR MALL TENANTS, 12 MONTHS ENDING July 2017 (ICSC): $1,051 RETAIL COUNCIL OF CANADA ANALYSIS For the second year in a row, the Vancouver/Lower Mainland region has the highest average total sales productivity for malls in Canada ($1,051) according to the International Council of Shopping Centres, and less shopping centre space per capita than most Canadian regions, according to CSCA Shopping Centre Database, Ryerson University. *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 12 Retail Council of Canada All rights reserved.

17 The region has the highest average total sales productivity for malls in Canada The region has 7 of Canada s top 30 malls in terms of sales productivity, also making it a top market for shopping centres in Canada in terms of per capita productivity. Simply put, Vancouver punches above its weight. However, the BC Lower Mainland saw a slight reduction in its total annual sales per square foot productivity for its malls between 2016 and In 2017, the region s average was $1,051 compared to $1,053 in 2016 and $1,011 in 2015 (ICSC). Retail Council of Canada All rights reserved. 13

18 6a. VANCOUVER/LOWER MAINLAND, BRITISH COLUMBIA CANADIAN REGIONAL ANALYSIS TOP REGIONAL MALLS CF Pacific Centre, Vancouver (Downtown) Cadillac Fairview Sales Productivity: $1, ,679 sq ft Annual Pedestrian Count: 22,000,000 Yes Howe Street/W. Georgia corner expansion, 3 levels Parking Spaces: 1,558 Nordstrom Holt Renfrew Transit (SkyTrain) 637,000 sq ft 230,000 sq ft 187,694 sq ft Oakridge Centre, Vancouver QuadReal Sales Productivity: $1, ,742 sq ft Annual Pedestrian Count: Unavailable Yes (substantial multi-year overhaul planned Parking Spaces: 3,032 Transit (SkyTrain), major roadway 182,485 sq ft Safeway 50,099 sq ft CF Pacific Centre, Vancouver 14 Retail Council of Canada All rights reserved.

19 Park Royal Shopping Centre, West Vancouver Larco Investments Ltd. Sales Productivity: $874 Annual Pedestrian Count: 1,501,405 sq ft Not disclosed Yes Parking Spaces: 5,715 La Maison Simons Home Depot The Brick Sport Chek Transit (SkyTrain), major roadway 165,000 sq ft 100,000 sq ft 72,000 sq ft 48,000 sq ft 51,000 sq ft Guildford Town Centre, Surrey Ivanhoé Cambridge Sales Productivity: $875 1,073,727 sq ft Annual Pedestrian Count: 15,000,000 No Parking Spaces: 4,370 sq ft Walmart Empire Theatres 174,540 sq ft 149,000 sq ft 141,345 sq ft 75,426 sq ft Coquitlam Centre, Coquitlam Morguard Metropolis at Metrotown, Burnaby Ivanhoé Cambridge Sales Productivity: $1,031 1,795,326 sq ft Annual Pedestrian Count: 28,000,000 Yes redevelopment (including former Target and Sears spaces) Parking Spaces: 8,334 Sales Productivity: $ ,482 sq ft Annual Pedestrian Count: 12,001,340 No Parking Spaces: 4, ,455 sq ft 120,527 sq ft Transit (SkyTrain), major roadway Real Canadian Superstore Winners SilverCity Cinemas T&T Supermarket Sport Chek 217,283 sq ft 132,465 sq ft 128,617 sq ft 64,916 sq ft 59,651 sq ft 59,651 sq ft 48,423 sq ft Retail Council of Canada All rights reserved. 15

20 6a. VANCOUVER/LOWER MAINLAND, BRITISH COLUMBIA CANADIAN REGIONAL ANALYSIS Willowbrook Shopping Centre, Langley Tsawwassen Mills, South Delta Bentall Kennedy Ivanhoé Cambridge Sales Productivity: $ ,520 sq ft Annual Pedestrian Count: 6,200,000 N/A Parking Spaces: 3, ,439 sq ft 113,146 sq ft Sales Productivity: (Centre open for less than 12 months) 1,200,000 sq ft Annual Pedestrian Count: N/A N/A Parking Spaces: 6,000, bus and ferry Bass Pro Shops 145,000 sq ft Tsawwassen Mills, South Delta 16 Retail Council of Canada All rights reserved.

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22 Chinook Centre, Calgary 6b. CALGARY, ALBERTA METROPOLITAN POPULATION: 1,469,300 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 1.9% AVERAGE HOUSEHOLD INCOME:* $137,761 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet TOTAL SALES PRODUCTIVITY FOR NON-ANCHOR MALL TENANTS, 12 MONTHS ENDING July 2017 (ICSC): $777 RETAIL COUNCIL OF CANADA ANALYSIS Calgary has experienced a reduction in its total annual sales per square foot productivity for its malls between 2015 and 2017, according to the International Council of Shopping Centres. In 2017, Calgary s average was $777 compared to $788 in 2016 and $827 in Lower oil prices have had a negative impact on the economy since 2014 but many are bullish about the city and the province s future. The city is growing rapidly despite its challenges. Calgarians are among the top earners in the country, despite a local recession. *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 18 Retail Council of Canada All rights reserved.

23 Calgarians are among the top earners in the country. Retailers and landlords continue to invest in Calgary s malls. CF Market Mall recently re-tenanted its Target space, for example, and CF Chinook Centre will see Saks Fifth Avenue open a 115,000 square foot store in February of Retail Council of Canada All rights reserved. 19

24 6b. CALGARY, ALBERTA CANADIAN REGIONAL ANALYSIS TOP REGIONAL MALLS CF Chinook Centre, Calgary CF Market Mall, Calgary Cadillac Fairview Cadillac Fairview Sales Productivity: $1,075 Sales Productivity: $887 1,212,712 sq ft 776,556 sq ft Annual Pedestrian Count: 14,000,000 Yes - Saks Fifth Avenue (spring 2018) Parking Spaces: 5,500 and transit 203,342 sq ft Nordstrom 140,000 sq ft *Spring 2018: Saks Fifth Avenue 115,000 sq ft Cineplex 90,000 sq ft Annual Pedestrian Count: 9,000,000 Yes - former Target space to see Sporting Life, Zara, HomeSense, Saks OFF 5TH Parking Spaces: 4, ,000 sq ft The CORE, Downtown Calgary 20 Retail Council of Canada All rights reserved.

25 Southcentre Mall, Calgary Oxford Properties Sales Productivity: $643 1,116,279 sq ft Annual Pedestrian Count: 6,700,000 None reported Parking Spaces: 4,193 Transit Safeway Sporting Life 234,109 sq ft 164,514 sq ft 76,326 sq ft 46,000 sq ft The CORE (TD Square-Holt Renfrew), Downtown Calgary Cushman & Wakefield Sales Productivity: $ ,151 sq ft Annual Pedestrian Count: 17,000,000 Yes - redevelopment Parking Spaces: 800 Holt Renfrew La Maison Simons Transit 146,887 sq ft 92,000 sq ft CrossIron Mills, Balzac Ivanhoé Cambridge Sales Productivity: $660 1,125,254 sq ft Annual Pedestrian Count: 9,000,000 Yes - food court redevelopment Parking Spaces: 6,400 Bass Pro Shops Toys R Us 148,911 sq ft 51,069 sq ft CF Chinook Centre, Calgary Retail Council of Canada All rights reserved. 21

26 Kingsway Mall, Edmonton 6c. EDMONTON, ALBERTA METROPOLITAN POPULATION: 1,392,600 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 2.1% AVERAGE HOUSEHOLD INCOME:* $117,225 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet TOTAL SALES PRODUCTIVITY FOR NON-ANCHOR MALL TENANTS, 12 MONTHS ENDING July 2017 (ICSC): $744 RETAIL COUNCIL OF CANADA ANALYSIS As with Calgary, Edmonton has seen a reduction in its total annual sales per square foot productivity for its malls between 2015 and In 2017, Edmonton s average was $744 compared to $765 in 2016 and $820 in The city is growing rapidly despite its recent economic challenges. Londonderry Shopping Centre in the city s northeast completed an overhaul in August that included new interior and exterior, electric car charging stations, and a new anchor La Maison Simons department store. *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 22 Retail Council of Canada All rights reserved.

27 West Edmonton Mall is in a state of constant change it recently added The Rec Room entertainment centre, and it is also in the process of re-tenanting its former Target space. Edmonton is growing despite its recent economic challenges. Retail Council of Canada All rights reserved. 23

28 6c. EDMONTON, ALBERTA CANADIAN REGIONAL ANALYSIS TOP REGIONAL MALLS Southgate Centre, Edmonton Kingsway Mall, Edmonton Ivanhoé Cambridge Oxford Properties Sales Productivity: $1,147 Sales Productivity: $ ,800 sq ft 842,408 sq ft Annual Pedestrian Count: 9,000,000 Annual Pedestrian Count: 6,600,000 No Yes - former Target space Parking Spaces: 4,385 Parking Spaces: 3,756 and transit and transit Safeway 263,019 sq ft 236,551 sq ft 52,571 sq ft 241,872 sq ft 162,404 sq ft West Edmonton Mall, Edmonton Triple Five/West Edmonton Mall Property Inc. Sales Productivity: *$760 3,200,000 sq ft Annual Pedestrian Count: 27,000,000 Yes Parking Spaces: 21,152 Edmonton City Centre, Edmonton (Downtown) Oxford Properties Sales Productivity: $ ,424 sq ft Annual Pedestrian Count: 9,200,000 Yes - centre overhaul ongoing La Maison Simons Sport Chek/Atmosphere T&T and transit 164,000 sq ft 149,000 sq ft 125,000 sq ft 80,800 sq ft 55,000 sq ft Parking Spaces: 2,184 Transit 167,946 sq ft Empire Theatres 73,702 sq ft *West Edmonton Mall numbers reflect entire non-anchor mall CRU, with the mall s central corridor seeing sales of $1,178 per square foot, according to landlord Triple Five. Southgate Centre, Edmonton 24 Retail Council of Canada All rights reserved.

29 Londonderry Shopping Centre, Edmonton Sales Productivity: Cushman & Wakefield (Declined: Centre recently overhauled) 776,749 sq ft Annual Pedestrian Count: TBD (centre overhauled) No Parking Spaces: 3,528 La Maison Simons 118,240 sq ft 100,800 sq ft Londonderry Shopping Centre, Edmonton Retail Council of Canada All rights reserved. 25

30 CF Polo Park, Winnipeg 6d. WINNIPEG, MANITOBA METROPOLITAN POPULATION: 811,900 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 2.3% AVERAGE HOUSEHOLD INCOME:* $94,884 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet RETAIL COUNCIL OF CANADA ANALYSIS Winnipeg is one of Canada s fastest growing cities with a population exceeding 750,000 people. CF Polo Park is on a trend to surpass $1,000 per square foot in annual sales. The city has considerably less retail space than Alberta s largest cities, though it has more than the Greater Vancouver area. *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 26 Retail Council of Canada All rights reserved.

31 TOP REGIONAL MALLS CF Polo Park, Winnipeg Cadillac Fairview Sales Productivity: $921 1,171,893 sq ft Annual Pedestrian Count: 11,000,000 Yes Parking Spaces: 5, ,000 sq ft 212,000 sq ft Winnipeg is one of Canada s fastest growing cities. Retail Council of Canada All rights reserved. 27

32 6d. WINNIPEG, MANITOBA CANADIAN REGIONAL ANALYSIS St. Vital Centre Garden City Shopping Centre, Winnipeg Cushman & Wakefield RioCan Sales Productivity: ,831 sq ft Annual Pedestrian Count: 8,600,000 N/A Parking Spaces: 4,661 Walmart 159,285 sq ft 131,513 sq ft 122,000 sq ft SilverCity Cinemas 66,971 sq ft Co-Op 55,000 sq ft Sales Productivity: $ ,558 sq ft Annual Pedestrian Count: 1,839,130 Renovations will be complete in Winter 2017/2018 Parking Spaces: 1,974 Canadian Tire 94,267 sq ft 92,604 sq ft 28 Retail Council of Canada All rights reserved.

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34 Hillcrest Mall, Richmond Hill 6e. GREATER TORONTO AREA, ONTARIO METROPOLITAN POPULATION: 6,242,300 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 1.8% AVERAGE HOUSEHOLD INCOME:* $113,477 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet TOTAL SALES PRODUCTIVITY FOR NON-ANCHOR MALL TENANTS, 12 MONTHS ENDING AUGUST 2016 (ICSC): $932 RETAIL COUNCIL OF CANADA ANALYSIS The Greater Toronto Area has consistently seen gains in its total annual sales per square foot productivity for its malls between 2015 and In 2017, the GTA s average was $932 compared to $926 in 2016 and $892 in 2015 (ICSC). The Greater Toronto Area is home to far more major shopping centres than any region in the country. Many leading malls have seen substantial investments over the past five years, including renovations, expansions and new retailers. *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 30 Retail Council of Canada All rights reserved.

35 In the past five years, many leading malls have seen investments in the form of renovations and expansion. Retail Council of Canada All rights reserved. 31

36 6e. GREATER TORONTO AREA, ONTARIO CANADIAN REGIONAL ANALYSIS TOP REGIONAL MALLS 6e (i) City Of Toronto: Yorkdale Shopping Centre, Toronto Oxford Properties Sales Productivity: $1,653 1,841,961 sq ft Annual Pedestrian Count: 18,000,000 Yes - Southwest wing with RH and Sporting Life (fall 2017), Holt Renfrew expansion Parking Spaces: 8,000 and transit 300,870 sq ft Nordstrom 199,000 sq ft Holt Renfrew 121,000 sq ft *October 2017: Restoration Hardware 69,000 sq ft SilverCity Theatre 68,470 sq ft *October 2017: Sporting Life 48,700 sq ft CF Toronto Eaton Centre, Toronto Cadillac Fairview Sales Productivity: $1,528 2,098,754 sq ft Annual Pedestrian Count: 50,100,000 Yes (Samsung Store, Pedway) CF Sherway Gardens, Toronto Cadillac Fairview Sales Productivity: $979 1,083,139 sq ft Annual Pedestrian Count: N/A Yes - Nordstrom Wing now open Parking Spaces: 5, ,477 sq ft Saks Fifth Avenue 143,200 sq ft Nordstrom 140,000 sq ft CF Fairview Mall, Toronto Cadillac Fairview Sales Productivity: $ ,009 sq ft Annual Pedestrian Count: 14,000,000 Yes Parking Spaces: 4,588 and transit 152,420 sq ft 149,552 sq ft SilverCity 59,401 sq ft Parking Spaces: 1,300 Nordstrom Saks Fifth Avenue/Pusateris H&M Transit 220,000 sq ft 169,000 sq ft 58,000 sq ft N/A sq ft 32 Retail Council of Canada All rights reserved.

37 Retail Council of Canada All rights reserved. 33

38 6e. GREATER TORONTO AREA, ONTARIO CANADIAN REGIONAL ANALYSIS Scarborough Town Centre, Toronto Oxford Properties Sales Productivity: $866 1,593,248 sq ft Annual Pedestrian Count: 22,000,000 Yes Parking Spaces: 5,708 and transit Walmart Famous Players 252,656 sq ft 231,590 sq ft 158,810 sq ft 105,000 sq ft 6e (ii) Downtown Toronto Centres (Under 250,000 sq ft, and Highly Productive): Holt Renfrew Centre, Toronto Morguard Sales Productivity: $1, ,510 sq ft Annual Pedestrian Count: 7,139,892 No (Yes for Holt Renfrew anchor upstairs) Parking Spaces: N/A Transit Bayview Village, Toronto Holt Renfrew 181,415 sq ft QuadReal Sales Productivity: $ ,642 sq ft Annual Pedestrian Count: N/A Yes - substantial mall redevelopment planned Parking Spaces: 2,164 and transit Loblaws 70,000 sq ft Royal Bank Plaza, Toronto Oxford Properties Sales Productivity: $1, ,003 sq ft Annual Pedestrian Count: Not reported N/A Parking Spaces: 627 Transit None CF Toronto Eaton Centre, Toronto 34 Retail Council of Canada All rights reserved.

39 Toronto Dominion Centre, Toronto Erin Mills Town Centre, Mississauga Cadillac Fairview Morguard Sales Productivity: $866 Sales Productivity: $ Annual Pedestrian Count: 163,404 sq ft Not available 847,532 sq ft Annual Pedestrian Count: 9,000,000 No No Parking Spaces: 1,090 Parking Spaces: 4,517 Transit 6e (iii) West Greater Toronto Area: None Walmart 135,892 sq ft 134,073 sq ft 132,227 sq ft Square One Shopping Centre, Mississauga Oxford Properties Sales Productivity: $1,064 1,904,595 sq ft Annual Pedestrian Count: 23,000,000 YES - north-west expansion plans in the works Parking Spaces: 8,704 Walmart Holt Renfrew La Maison Simons and transit 220,000 sq ft 188,000 sq ft 140,000 sq ft 113,000 sq ft Mapleview Centre, Burlington Ivanhoé Cambridge Sales Productivity: $ ,418 sq ft Annual Pedestrian Count: 6,000,000 No Parking Spaces: 2, ,066 sq ft 125,707 sq ft Square One Shopping Centre, Mississauga Retail Council of Canada All rights reserved. 35

40 6e. GREATER TORONTO AREA, ONTARIO CANADIAN REGIONAL ANALYSIS Bramalea City Centre, Brampton Upper Canada Mall, Newmarket Morguard Oxford Properties Sales Productivity: $580 (enclosed mall only) Sales Productivity: $779 1,499,782 sq ft 996,183 sq ft Annual Pedestrian Count: 16,000,000 Redevelopment and/or renovation to the centre over next 12 months. The balance of the former Target space and the pending availability of the Sears space will necessitate changes to the centre Parking Spaces: 6,109 Annual Pedestrian Count: 7,400,000 Parking Spaces: 4, ,776 sq ft 121,869 sq ft Metro 157,156 sq ft 131,438 sq ft 63,809 sq ft CF Markville, Markham Cadillac Fairview Sales Productivity: $ ,273 sq ft 6e (iv) North Greater Toronto Area: Vaughan Mills, Vaughan Annual Pedestrian Count: 12,000,000 Yes Parking Spaces: 5,138 Ivanhoé Cambridge Sales Productivity: $792 1,270,163 sq ft Annual Pedestrian Count: 14,000,000 Walmart Winners/HomeSense 140,094 sq ft 131,028 sq ft 50,973 sq ft No Parking Spaces: 6,213 Winners Bass Pro Shops 131,184 sq ft 61,405 sq ft 36 Retail Council of Canada All rights reserved.

41 Hillcrest Mall, Richmond Hill Pickering Town Centre, Pickering Oxford Properties Cushman & Wakefield Sales Productivity: $523 Sales Productivity: $488* 498,029 sq ft 924,554 sq ft Annual Pedestrian Count: 6,700,000 Yes (Target space to be re-tenanted) Parking Spaces: 2,631 Both 136,915 sq ft Annual Pedestrian Count: 9,880,000 Yes Parking Spaces: 4, ,348 sq ft 121,730 sq ft *Number obtained from landlord website. 6e (v) East Greater Toronto Area: Oshawa Centre, Oshawa Ivanhoé Cambridge Sales Productivity: $717 1,140,006 sq ft Annual Pedestrian Count: 10,000,000 Yes - Expansion Parking Spaces: 5, ,118 sq ft 122,624 sq ft Retail Council of Canada All rights reserved. 37

42 CF Lime Ridge, Hamilton 6f. HAMILTON/ST. CATHARINES/ NIAGARA, ONTARIO METROPOLITAN POPULATION: 1,190,100 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 0.9% AVERAGE HOUSEHOLD INCOME:* SHOPPING MALL RETAIL SPACE PER CAPITA** $101,143 (Hamilton) (Hamilton) (Saint Catharines) *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 38 Retail Council of Canada All rights reserved.

43 TOP REGIONAL MALLS CF Lime Ridge, Hamilton Cadillac Fairview Sales Productivity: $ ,517 sq ft Annual Pedestrian Count: 10,000,000 No Parking Spaces: 4, ,643 sq ft 125,307 sq ft Pen Centre, St. Catharines Cushman & Wakefield Outlet Collection At Niagara, Niagara-on-the-Lake Ivanhoé Cambridge Sales Productivity: $ ,817 sq ft Annual Pedestrian Count: 6,000,000 No Parking Spaces: 2,796 Bass Pro Shops 81,250 sq ft Sales Productivity: $566* 1,072,132 sq ft Annual Pedestrian Count: 11,000,000 N/A Parking Spaces: 5, ,611 sq ft 150,688 sq ft Zehrs 59,908 sq ft Empire Theatres 48,888 sq ft *Number obtained from landlord leasing site Retail Council of Canada All rights reserved. 39

44 CF Rideau Centre, Ottawa 6g. OTTAWA/CAPITAL REGION METROPOLITAN POPULATION: 1,351,100 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 1.4% $116,815 (Ontario) AVERAGE HOUSEHOLD INCOME:* SHOPPING MALL RETAIL SPACE PER CAPITA** $87,434 (Québec) square feet Total Sales Productivity for Non-Anchor Mall Tenants, 12 Months (Ending July 2017 ICSC) $699 RETAIL COUNCIL OF CANADA ANALYSIS The Ottawa/Capital Region has consistently seen gains in its total annual sales per square foot productivity for its malls between 2015 and In 2017, the region s average was $699 compared to $697 in 2016 and $687 in 2015 (ICSC). The downtown CF Rideau Centre has seen substantial improvements including the addition of a La Maison Simons store in the summer of 2016, as well as a multi-level retail wing with a striking design. 40 Retail Council of Canada All rights reserved.

45 CF Rideau Centre has seen substantial improvements including a multi-level retail wing with a striking design. Retail Council of Canada All rights reserved. 41

46 6g. OTTAWA/CAPITAL, ONTARIO CANADIAN REGIONAL ANALYSIS TOP REGIONAL MALLS CF Rideau Centre, Ottawa St. Laurent Shopping Centre, Ottawa Cadillac Fairview Morguard Sales Productivity: $987 Sales Productivity: $551 1,003,228 sq ft 886,802 sq ft Annual Pedestrian Count: 21,000,000 Annual Pedestrian Count: Not reported No Not reported Parking Spaces: 1,330 Parking Spaces: 4,104 and transit Nordstrom La Maison Simons 335,000 sq ft 157,000 sq ft 103,874 sq ft 158,314 sq ft 149,141 sq ft Bayshore Shopping Centre, Nepean Ivanhoé Cambridge Sales Productivity: $ ,641 sq ft Annual Pedestrian Count: 7,000,000 No Parking Spaces: 2,200 Winners 184,324 sq ft 58,880 sq ft Carlingwood Mall, Ottawa Cushman & Wakefield Sales Productivity: $ ,206 sq ft Annual Pedestrian Count: 7,500,000 N/A Parking Spaces: 2, ,319 sq ft 42 Retail Council of Canada All rights reserved.

47 Les Promenades Gatineau, Gatineau Oxford Properties Sales Productivity: $ ,424 sq ft Annual Pedestrian Count: 9,200,000 Not reported Parking Spaces: 3,130 Costco La Maison Simons 144,316 sq ft 140,363 sq ft 80,500 sq ft CF Rideau Centre, Ottawa Retail Council of Canada All rights reserved. 43

48 CF Carrefour Laval, Laval 6h. MONTRÉAL, QUÉBEC METROPOLITAN POPULATION: 4,093,800 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 0.8% AVERAGE HOUSEHOLD INCOME:* $80,906 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet TOTAL SALES PRODUCTIVITY FOR NON-ANCHOR MALL TENANTS, 12 MONTHS ENDING AUGUST 2016 (ICSC): $699 RETAIL COUNCIL OF CANADA ANALYSIS The Montréal metro area has also seen gains in its total annual sales per square foot productivity for its malls between 2015 and In 2017, the area s average was $646 compared to $626 in 2016 and $594 in 2015 (ICSC). The region has less retail space per capita than most regions in Canada. With less mall space per capita than many parts of Canada, developers are recognizing the potential to build new retail space. Big-box retail is popular among developers and some retailers because of its lower costs and its access to sprawling suburbs. *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 44 Retail Council of Canada All rights reserved.

49 Developer Carbonleo is proceeding with the construction of a mega-mall in Royalmount, located near the centre of Montréal. The region s malls have lower sales per square foot than regions such as Vancouver, Edmonton, Calgary, Winnipeg and Toronto. Retail Council of Canada All rights reserved. 45

50 6h. MONTRÉAL, QUÉBEC CANADIAN REGIONAL ANALYSIS TOP REGIONAL MALLS 6h (i) Downtown Montréal 6h (ii) Leading Montréal Area Malls: NOTE: Place D Orleans declined to participate in this study. Complexe Les Ailes, Montréal (downtown) Ivanhoé Cambridge Sales Productivity: $1, ,696 sq ft Annual Pedestrian Count: 10,000,000 Parking Spaces: Yes - redevelopment Centre Eaton de Montréal, Montréal (downtown) N/A Transit None Ivanhoé Cambridge Sales Productivity: $ ,376 sq ft Annual Pedestrian Count: 24,000,000 Yes - redevelopment Parking Spaces: 472 Transit None CF Carrefour Laval, Laval Cadillac Fairview Sales Productivity: $848 1,403,947 sq ft Annual Pedestrian Count: 11,000,000 No Parking Spaces: 8,297 RONA L entrpot La Maison Simons 185,588 sq ft 150,850 sq ft 140,824 sq ft 71,744 sq ft CF Fairview Pointe Claire, Pointe-Claire Cadillac Fairview Sales Productivity: $748 $1,019,520 sq ft Annual Pedestrian Count: 8,000,000 Yes Parking Spaces: 5,706 Winners 181,795 sq ft 164,195 sq ft 59,638 sq ft 46 Retail Council of Canada All rights reserved.

51 CF Galeries D Anjou, Montréal Place Rosemère, Rosemère Cadillac Fairview Morguard Sales Productivity: $579 Sales Productivity: $490 1,212,755 sq ft 891,671 sq ft Annual Pedestrian Count: 7,000,000 Annual Pedestrian Count: 8,000,000 No N/A Parking Spaces: 5,295 Parking Spaces: 4,149 La Maison Simons The Brick Sports Experts 190,192 sq ft 146,571 sq ft 119,858 sq ft 77,881 sq ft 48,567 sq ft Walmart Place Vertu, Montréal 138,162 sq ft 133,498 sq ft 132,162 sq ft CF Promenades St. Bruno, St. Bruno Cadillac Fairview Sales Productivity: $559 1,016,860 sq ft Annual Pedestrian Count: 7,000,000 No Parking Spaces: 5,900 La Maison Simons 134,255 sq ft 130,622 sq ft 65,605 sq ft Cushman & Wakefield Sales Productivity: $334* 838,089 sq ft Annual Pedestrian Count: 11,500,000 N/A Parking Spaces: 4,149 Canadian Tire 196,448 sq ft 105,086 sq ft *Number is from landlord leasing site, not directly from landlord. Retail Council of Canada All rights reserved. 47

52 Les Galeries de la Capitale, Québec City 6i. QUÉBEC CITY, QUÉBEC METROPOLITAN POPULATION: 807,200 (Stats Canada, 2016) POPULATION GROWTH BETWEEN 2015 & 2016: 0.1% AVERAGE HOUSEHOLD INCOME*: $82,979 SHOPPING MALL RETAIL SPACE PER CAPITA** square feet RETAIL COUNCIL OF CANADA ANALYSIS Québec City has one of Canada s most productive malls, Place Ste-Foy, which also houses the flagship location for La Maison Simons. Les Galeries de la Capitale is enjoying a boost of new investment that will include the modernization of its in-mall Mega Parc park expected to be rethemed steampunk *Data Source for Household Income: Environics Analytics **Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, 48 Retail Council of Canada All rights reserved.

53 TOP REGIONAL MALLS Place Ste-Foy, Québec City Les Galeries de la Capitale, Québec City Ivanhoé Cambridge Oxford Properties Sales Productivity: $815 Sales Productivity: $ ,348 sq ft 1,348,381 sq ft Annual Pedestrian Count: 8,000,000 Yes Parking Spaces: 3,028 La Maison Simons Signature Maurice Tanguay 101,996 sq ft 51,235 sq ft Laurier Québec, Québec City Ivanhoé Cambridge Sales Productivity: $531 1,252,181 sq ft Annual Pedestrian Count: 11,000,000 Yes - food court redevelopment Parking Spaces: 5, ,024 sq ft 157,363 sq ft Sports Experts 48,161 sq ft Annual Pedestrian Count: 7,600,000 La Maison Simons store to relocate, Mega Parc amusement park being redeveloped/rebranded Parking Spaces: 6, ,000 sq ft 163,000 sq ft Toys R Us 51,500 sq ft *La Maison Simons 46,000 sq ft (to relocated to new 80,000 sq ft space in Spring 2018) Place Fleur de Lys, Québec City Cushman & Wakefield Sales Productivity: $353* 857,571 sq ft Annual Pedestrian Count: N/A N/A Parking Spaces: 4,410 Maxi 187,000 sq ft 106,576 sq ft 54,294 sq ft *Obtained from landlord website. Retail Council of Canada All rights reserved. 49

54 Halifax Shopping Centre, Halifax, NS 6j. MARITIME PROVINCES METROPOLITAN POPULATION (NOVA SCOTIA, NEW BRUNSWICK)* HALIFAX: 425,900 SAINT JOHN: 127,500 MONCTON: 149,700 NOVA SCOTIA: 953,900 NEW BRUNSWICK: 759,700 NEWFOUNDLAND AND LABRADOR: 528,800 PRINCE EDWARD ISLAND: 152,000 POPULATION GROWTH BETWEEN 2015 & 2016: 0.1% AVERAGE HOUSEHOLD INCOME:** NOVA SCOTIA: $79,492 NEW BRUNSWICK: $76,555 PRINCE EDWARD ISLAND: $77,141 NEWFOUNDLAND: $86,384 SHOPPING MALL RETAIL SPACE PER CAPITA*** (Halifax) *Source: Stats Canada, 2016 **Data Source for Household Income: Environics Analytics ***Data Source for Retail Space per Capita: 2017 CSCA Shopping Centre Database, Ryerson University, RETAIL COUNCIL OF CANADA ANALYSIS The Maritimes are home to some relatively strong shopping centre properties with one and two malls dominating each large city. Halifax Shopping Centre, which continues to see investments and new retailers, ranks as one of the top malls in the country, as well as the 50 Retail Council of Canada All rights reserved.

55 only mall in the Maritimes to boast the largest number of retail tenants. Halifax Shopping Centre is the only mall in the Maritimes to house a number of popular national and international retailers. TOP REGIONAL MALLS Halifax Shopping Centre, Halifax, NS Cushman & Wakefield Sales Productivity: $ ,641 sq ft Annual Pedestrian Count: 10,000,000 No Parking Spaces: 2,456 Sport Check 106,410 sq ft 51,870 sq ft Mic Mac Mall, Dartmouth, NS Ivanhoé Cambridge Sales Productivity: $ ,492 sq ft Annual Pedestrian Count: 5,000,000 Yes - redevelopment Parking Spaces: 3,109 Winners 151,303 sq ft 52,693 sq ft CF Champlain Place, Dieppe, NB Cadillac Fairview Sales Productivity: $ ,103 sq ft Annual Pedestrian Count: 8,000,000 No Parking Spaces: 3,237 Walmart Sobeys 133,621 sq ft 107,029 sq ft 51,456 sq ft Retail Council of Canada All rights reserved. 51

56 6j. MARITIME PROVINCES Regent Mall, Fredericton, NB McAlliser Place, Saint John, NB Primaris Primaris Sales Productivity: $572* Sales Productivity: $464* 504,987 sq ft 483,000 sq ft Annual Pedestrian Count: 6,600,000 Annual Pedestrian Count: N/A N/A N/A Parking Spaces: 2,690 Parking Spaces: N/A Walmart 133,338 sq ft 83,934 sq ft *Obtained from landlord leasing site, August 2017 number. 134,425 sq ft *Obtained from landlord leasing site, August 2017 number. Avalon Mall, St. John s, Newfoundland Crombie REIT Sales Productivity: $ ,625 sq ft Annual Pedestrian Count: 6,305,972 Yes, over next 12 months Parking Spaces: 2,900 Cineplex Winners 128,941 sq ft 56,000 sq ft 50,132 sq ft 52 Retail Council of Canada All rights reserved.

57 Retail Council of Canada All rights reserved. 53

58 7 TOP SHOPPING MALL TRENDS Despite its ubiquity, the mall as it s been conceived for the last half century is at a critical inflection point. A storm of global trends are coming together at the same time to cause malls to change the role they play in people s lives. No longer are they primarily about shopping. Now, when consumers visit malls, they are looking for experiences that go well beyond traditional shopping. - McKinsey & Company, 2014 The above quote from a McKinsey & Company article dating back to 2014 is still relevant and summarizes the challenges and opportunities facing shopping centres in this country. Much has been written about the difficulties facing U.S. malls and we are often asked why Canada has not been hit by a similar tsunami. There is no question malls in this country have had to adapt to changing consumer shopping habits and lifestyle trends and as the study shows, some have done better than others. Not all malls are created equal as most retailers know but Canada s shopping centre ecosystem has been shielded somewhat from the trials and tribulations we have seen south of the border. The top malls in Canada are quickly adapting to changing demographics and increased urbanization, with many of these benefiting from existing locations within or close to major urban centres. They are re-inventing themselves as public spaces, leveraging mixed-use development, adding tenants that emphasize consumption and pleasure and embrace digital technologies to enhance the customer experience. A MIX OF TENANTS While some might say that department store anchors are no longer as important in a centre s footprint, one should not dismiss their role in key malls. In Canada, new banners in this space have indeed reinvigorated many shopping centres such as Nordstrom, Saks Fifth Avenue, Simons and re-modelled Hudson Bay stores. However, they are no longer the only anchors and other major banners, primarily in fashion and technology, are now a mainstay to attract and retain customers. They include such players as H&M, Zara, Aritzia, Lululemon, Winners, SportChek, Sporting Life and Apple stores just to name a few. While some might say that department store anchors are no longer as important in a centre s footprint, one should not dismiss their role in key malls 54 Retail Council of Canada All rights reserved.

59 Collaborate. Contribute. Connect. The only organization dedicated specifically to retail multi-site facilities management professionals throughout the United States, Canada and around the globe. Collaborate with Other Industry Leaders Gain new skills and enhance your current talents with resources by industry-based authorities who know the challenges you tackle each day. Access the educational tools you need to chart your path for professional growth and success. Contribute and Share your Knowledge Take advantage of opportunities to enhance your professional credibility and grow your business network by writing articles, participating in industry surveys, speaking at conferences, obtaining professional certifications, and more. Connect and Grow Your Network Connect with the foremost thought leaders in facilities management and a dynamic, trusted member community of over 3,700 multi-site retail facilities professionals, and build relationships that are critical to your success. Join Today! Call or 55 membership@prsm.com Retail Council of Canada All rights reserved.

60 6j. MARITIME PROVINCES Additionally, shopping centres are embracing the mantra of Food is the new Fashion. Certainly, with millennial consumers, food is taking a position of importance and in some cases, usurping fashion and travel. Finally, to compete with online retail shopping, many shopping centres are embracing curated retail concepts such as pop up stores and a variety of tenants who bring entertainment and distinctive customer experiences to life, such as expanded theatres, community and digital technology services. ENHANCED FOOD AND BEVERAGE OFFERINGS One example of the importance of food to malls is the fast-growing trend toward healthy eating, driven by millennials preferences and government policies to curb obesity. Food-focused digital platforms that see consumers routinely reading online reviews before choosing restaurants or ordering through food-delivery platforms are on the rise. Leading Canadian mall landlords are responding to this trend by adding more food and beverage offerings to their centres to enhance the overall centre experience, as well as create a reason for visitors to stay for a longer period time. Cookie-cutter doesn t cut it there needs to be a mix of the unexpected to be added to the expected. The traditional mall food court is being transformed into food halls and food tasting emporiums. Of the top 30 malls ranked in this study in terms of productivity, most have seen their food court offerings elevated within the past several years, sometimes at a cost of tens of millions of dollars. The feedback from landlords is that the investment is paying off and they have noticed consumers staying longer and embracing the foodie culture. Full-sized restaurants are also being added to shopping centres with a frequency previously unseen in malls. Shopping centres are now becoming launch points for some international restaurant chains Food is the new fashion is the mantra that increasingly guides development. entering Canada. Toronto s Yorkdale Shopping Centre, for example, became home to the country s first location for celebrity chef Jamie Oliver Jamie s Italian restaurant concept in December of Yorkdale also became home to Cheesecake Factory s first Canadian location on November 21, 2017 and in March of 2018, Bubba Gump Shrimp Company will open its first Canadian restaurant at West Edmonton Mall. Canadian landlords are now dedicating more space to food and beverage offerings, with some leading landlords saying they plan to double the space devoted to such offerings. Landlords are also now looking to China, where some of the country s leading malls devote as much as 50 per cent of their space to restaurants and food offerings, with Chinese malls acting as de facto downtowns in rapidly growing cities that lack such amenities. Some American and international malls are creating food halls that include local restaurant providers, butcher shops and other food-oriented boutiques under one roof, and these ideas are being imported into Canada. By the year 2020, several leading Canadian malls will feature specialized food halls in addition to their more traditional food courts. These food hall concepts celebrate quirkiness versus uniformity according to experts, and their ability to draw crowds is particularly attractive to landlords seeking to combat the rise of e-commerce, as well as changing shopping habits. Canadian shopping centres are now also adding more grocery stores to their properties. With some anchor spaces being vacated by Target and Sears in Canada, we may see more grocery tenants become anchors. These may range from discount grocery stores to high-end offerings such as Pusateri s Fine Foods, which operates marble-clad luxury grocery stores at Oakville Place in Oakville, Ontario, as well as at Bayview Village and CF Sherway Gardens in Toronto. 56 Retail Council of Canada All rights reserved.

61 The traditional mall food court is being transformed into food halls and food tasting emporiums. CONVENIENCE, REMOVING FRICTION Leading mall landlords are making the shopping experience as comfortable and convenient as possible. A few of the most popular trends include: Upgraded Washrooms: Spacious and well-lit, some include seating areas and nursing rooms for parents with young children. Toronto s Bayview Village even includes a shoe shine machine in its men s washroom. Comfortable Seating: Landlords have been adding comfortable furniture throughout their centres for patrons to take a moment to relax stay longer. Concierge and Personal Shoppers: Leading Canadian malls are also adding concierge and related services to their malls. Some malls provide styling and other personal shopping services, with dedicated spaces where shoppers can meet with consultants to put together a new look, or to shop for gifts for others. Free Wireless Internet: Mall landlords are finding that including strong public internet connection helps drive traffic into malls, and keep consumers there longer. Improved Wayfinding: Many malls have recently upgraded their wayfinding systems so consumers can find their way around the mall, and some even have apps and customer service departments that consumers can text for directions, as well as store suggestions. New technology companies are also offering promotional services, including texting consumers when there s a deal at their favorite stores as they walk by. Retail Council of Canada All rights reserved. 57

62 6j. MARITIME PROVINCES Some shopping centre landlords are including entertainment centres to diversity offerings while adding attractions for the whole family. Enhanced Parking Solutions: While shoppers may utilize public transit to get to downtown malls, suburban centres overwhelmingly still see visitors arrive by car. A common complaint is finding parking, and leading mall landlords are seeking enhanced parking options that make finding parking relatively frictionless. Many are using just-in-time signage indicating how many parking spots are available within the parking lot. Shopping centres are now also adding fee-based valet parking, especially at more upscale malls. Shoppers can simply drive up to the valet stand, and the rest is done for them. ATTRACTIONS IN MALLS Some shopping centre landlords are including entertainment centres to diversity offerings while adding attractions for the whole family. The idea is to create an experience that keeps visitors longer and coming for more not to mention, one family member may choose to shop while another seeks out other activities. For example, to appeal to children, some malls include large stuffed animals on wheels that can be driven around the centre to entertain younger consumers. West Edmonton Mall was at the forefront of this trend with its multiple entertainment offerings that include an amusement park, skating rink and water park, among other amenities. Movie theatres aren t necessarily a new phenomenon in malls, though they re becoming more common, and becoming more elite. Several leading malls are now offering visitors enhanced movie offerings such as VIP Cinemas and IMAX screens with some theatres featuring restaurant table service and alcohol, further elevating the experience. Entertainment centres such as The Rec Room are being rolled out in some leading Canadian malls, turning shopping centres into entertainment centres that also offer products and services. Malls such as Les Galeries de la Capitale in Québec City are recreating their in-mall entertainment centres in order 58 Retail Council of Canada All rights reserved.

63 to draw a wider range of visitors. Art Shows/Exhibits: Adding to the experiential nature of malls are art and other exhibits. For example, charity-driven The Brain Project has been showcased in several Canadian malls over the past year. Some centres, such as First Capital Realty s Yorkville Village, are seeing success in driving traffic by hosting rotating art shows and related events for patrons. In-Mall Promotions: Events and social media are key, with some malls employing in-house marketing teams as well as utilizing external public relations firms for expert assistance. Competing for consumers is becoming fiercer with each passing year. For the 2016 winter holiday season, CF Toronto Eaton Centre partnered with Company/Saks Fifth Avenue for two remarkably popular promotions. For the unveiling of Saks and s holiday windows, superstar Mariah Carey was flown in to sing to excited crowds. CF Toronto Eaton Centre unveiled a jaw-dropping 108-foot high Christmas tree, the likes of which has never been seen in a Canadian shopping centre. from physical shoppers. Examples include Frank & Oak from Montréal and Indochino from Vancouver. Outlet and Hybrid Outlet Centres: Canadians like their bargains and developers continue to open outlet centres, as well as a unique model of hybrid outlet centres that have been expanding across Canada. Just a few years ago, Canada lacked USstyle designer outlet malls - now the country has almost reached a saturation point, with outlet malls having recently opened in Winnipeg and, next year, Edmonton. Hybrid outlet centres are proving to be popular as well and in the fall of 2016, British Columbia saw the opening of its first such centre - the 1.2 million square foot Tsawwassen Mills. Other hybrid outlet centres in Canada include Vaughan Mills near Toronto, as well as CrossIron Mills near Calgary. Pop-Up Retail in Malls: Temporary retail is becoming more common in Canadian malls and is a strategy used by some retailers in addition to their permanent THE CHANGING FACE OF RETAIL IN LEADING MALLS A More International Tenant Mix: Now more than ever, international brands are opening stores in Canadian malls with International retailers competing with homegrown brands for consumer loyalty and a share of wallet. New international brands continue to enter the market, as is especially evident at Toronto s Yorkdale Shopping Centre. Brands Opening Their Own Stores: Toronto s Yorkdale Shopping Centre is taking the lead in Canada for new concepts and new entrants. In the fall of 2017 alone, Yorkdale will be the country s first locations for brands including technology brand Dyson, UK-based Hunter Boots, French fashion brand Zadig & Voltaire, and the very first retail location for Montréal-based fashion brand Moose Knuckles. Online Retailers Open Physical Stores: Retailers that formerly only sold online are finding they can drive sales across all channels by opening physical stores. More and more are doing this in malls where they realize they can get considerable exposure and traffic Pop up retail in malls can range from one day events in a public area to dedicated pop-up spaces. stores. Pop-up retail in malls can range from one-day events in a public area to dedicated pop-up spaces that feature a rotation of new tenants. Retail Council of Canada All rights reserved. 59

64 7 TOP SHOPPING MALL TRENDS Oxford Properties launched a permanent pop-up space called CONCEPT at Yorkdale Shopping Centre in the spring of The 3,600-square foot space can house one or several tenants at once. It is an innovative installation that is prominently located in the mall. The temporary nature of the vendors participating creates a buzz of get it before it s gone, and the rotation of new tenants is keeping consumers coming back to check out what s next. Oxford Properties is rolling out similar pop-up spaces in some of its malls across Canada. Variations on the pop-up space trend are literally popping up everywhere. Dixie Outlet Mall in Mississauga, Ontario, launched The Living Room in the spring of the 3,100-square foot space is free to book, and can host everything from retailers to community activities. In September 2017, Toronto s Bayview Village launched a unique 1,000 square foot pop-up space that featured an almost daily rotation of vendors, ranging from handbag to confectionery. Individual retail spaces in malls are also being used by some retailers to test new concepts before opening permanent stores - Montréal s L Intervalle shoes, for example, tried out some Toronto malls temporarily before deciding to commit to permanent leases. Off-Price Retail in Traditional Malls: Now more than ever, off-price retailers are locating within traditional shopping centres. TJX-owned Winners, HomeSense and Marshalls are signing leases and moving into malls at rapid speed. The Company s offprice division Saks OFF 5TH, as well, is moving into traditional malls in Canada - its US stores are typically either freestanding or in outlet malls, though that s also changing south of the border. Dollar stores are expanding quickly, with retailers such as Dollarama opening stores in major shopping centres. Chinese value-priced retailer MINISO, which entered Canada this year, is also signing leases in malls with plans to eventually operate as many as 500 stores in this country. Luxury Stores in Malls: Most mono-brand luxury stores in Canada were located almost exclusively on urban street-fronts. This has been changing Toronto s Yorkdale Shopping Centre now features a dedicated luxury section with an impressive roster of luxury stores, which landlord Oxford Properties says has helped push sales at other retailers, including anchors Holt Renfrew and Nordstrom. Other Canadian mall landlords have taken notice and are adding luxury as well as aspirational luxury stores to their malls. Car Brands and Dealerships in Shopping Malls: Electric car brand Tesla opened its first Canadian in-mall retail space at Toronto s Yorkdale Shopping Centre in the fall of 2013, with other locations added in 2015 at Calgary s CF Chinook Centre, and most recently at Park Royal in Canadian consumers are becoming increasingly more design savvy and Canada s malls are responding by providing a better aesthetic and functional experience. 60 Retail Council of Canada All rights reserved.

65 West Vancouver. Mercedes Benz and Genesis Motors are following suit. Mercedes Benz recently opened its second Canadian showroom at CF Markville North of Toronto, and Genesis is beginning to open locations this fall in several large Canadian shopping centres. RAISING THE ROOF LITERALLY Canadian consumers are becoming increasingly more design savvy and Canada s malls are responding by providing a better aesthetic and functional experience. Higher Ceilings, Grander Store Facades: Higher ceilings create an increased sense of space and grandeur allowing retailers the ability to design dramatic branded facades. In the new north and south expansion wings at CF Sherway Gardens in Toronto, ceiling heights exceed 30 feet and retailers used the additional height to create impressive storefronts to attract shoppers. At Toronto s Yorkdale Shopping Centre, tenant Saint Laurent chose its current space because of the capacity to build a taller façade to emphasize its unique brand. Edmonton s Londonderry Shopping Centre, which recently completed a $130 million overhaul to its premises, actually raised the ceiling heights in its centre to offer tenants the opportunity for enhanced branding, while at the same time creating greater space and light in the centre. Fewer in-mall Kiosks: Some leading mall landlords are reducing and even eliminating retail kiosks typically found in the centre corridors of some malls. In some instances, these tenants are being moved into their own in-line spaces in the mall. Landlords are doing this to create broader sight-lines in their centres, while creating a more upscale, spacious look to mall corridors. Shopping Centre Site Intensification: Landlords are densifying their properties by adding housing and other services. Office space and hotels are being added to create complete communities, and residential housing is also being included. For example, there are plans to add residential towers to Toronto malls such as Yorkdale Shopping Centre and Bayview Village, while Vancouver s Oakridge Centre will eventually see thousands of residents in multiple towers, directly above an overhauled and expanded shopping centre podium. Retail Council of Canada All rights reserved. 61

66 8 CONCLUSION The e-commerce revolution and the rise of digital technologies are fundamentally reshaping consumer expectations and shifting the function of stores toward useful and entertaining experiences. Malls are now experimenting with technologies such as face recognition, location-based mobile ads, and beacons to identify and establish targeted contact with repeat customers. Progressive mall operators understand these technologies are extremely valuable for gathering consumer behavioral data. New technologies provide an opportunity for malls to decrease customer pain points, while creating entirely new delight occassions. Technology, for instance, can be used to address some of the biggest challenges shoppers face at the mall finding parking and finding stores. Sensors located in parking lots detect how many spots are available on each level and give visual indicators to drivers. Once within the mall, mobile apps offer quick, easy guides to help shoppers find what they re looking for in malls that are increasingly becoming larger. In an age where consumers get instant gratification, instant information and instant validation, shopping centres and tenants are beginning to embrace the tools technology provide to enhance the physical customer experience. From touchscreen navigation panels, virtual fitting rooms, augmentedreality areas to click-and-collect zones and services, same-day delivery and a constant array of new amenities, shopping malls and retailers are embracing social shopping and helping blend the offline and online shopping experience. The future of shopping is unclear but there is a universal truth know thy customer! Shopping centres and their tenants must be more relevant to their customers by understanding their shopping-to-buying journey. Truly personalizing the experience, creating the wow, and contributing to their lifestyle needs and wants in an authentic way are the price of entry today. Leading landlords are at the forefront of this revolution and bringing shopping centres to life in an exciting and meaningful way is a role they are embracing wholeheartedly. 62 Retail Council of Canada All rights reserved.

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