Canadian luxury retailer Holt Renfrew is shutting down its hr2 discount retail chain, according to a report. The hr2 concept stores, which debuted in 2013 with locations in Quebec and Ontario, are expected to close in the coming months. Finally, Holt Renfrew Yorkdale will increase by 10,000 square feet to 129,000 square feet and will be expanded to include two additional personal shopping spaces and new shop-in-shops, including an expanded « World of » Gucci boutique, a Fendi boutique for women and leather goods, a Balenciaga boutique and a new Prada boutique for men. The expansion is expected to be completed in 2020. In addition, Holt Renfrew announced plans to invest in new technologies that will augment and improve the way the company interacts with its customers. The updates will be made to the entire online presence, including e-commerce, where different categories are available for purchase. Holt Renfrew has faced increased competition in the Canadian luxury market in recent years due to the entry of U.S. retailers. Luxury retailer Nordstrom opened its first Canadian store at CF Chinook Centre in Calgary in September 2014, followed by openings in Vancouver, Ottawa and Toronto for a total of six locations. The company also plans to open six Nordstrom stores in Canada in 2018. Luxury fashion retailer Saks Fifth Avenue followed suit by opening its first two Canadian stores in February 2016.

In addition, a number of luxury fashion houses have opened monobrand stores such as Chanel, Hermas, Woolrich, Jimmy Choo and jewelry brand Van Cleef & Arpels, to name a few. For years, Holt Renfrew, Canada, commonly referred to as the « Barneys of Canada, » was the only option for Canadians to buy luxury fashion items. However, as more luxury retailers see the potential for expansion, the luxury boom in Canada is expected to continue, meaning increased competition and challenges for Holt Renfrew. Mario Grauso, President of Holt Renfrew, told WWD that the decision to close the company`s over-price division was made so that we could fully focus on our enhanced luxury operations in our Holt Renfrew stores across Canada. Holt Renfrew faces increased competition due to the recent arrival of Nordstrom and Saks Fifth Avenue in Canada. U.S. luxury retailers also operate low-cost divisions under the Saks Off Fifth and Nordstrom Rack in Canada, with several new locations opening over the next two years. At one point, Holt Renfrew announced plans to open up to ten discount stores in Canada, but store openings stopped at two. hr2 concept stores offer an assortment of men`s and women`s clothing and accessories from brands that are generally cheaper than Holt Renfrew`s full-line stores. hr2 stores are approximately 25,000 to 29,000 square feet. Holt Renfrew operates seven full-line stores in Vancouver, Calgary, Edmonton, Toronto, Mississauga and Montreal. The investment includes upgrades to the recently announced Holt Renfrew Ogilvy in Montreal, as well as major renovations to the flagship store at 50 Bloor Street West in Toronto and the Yorkdale site in Toronto.

The improvements build on Holt Renfrew Vancouver`s transformation, which has been underway for two years and is nearing completion. As part of the improvements, Holt Renfrew Ogilvy in Montreal will be over 250,000 square feet, making it the largest Holt Renfrew in Canada. As part of its retail offering, Holt Renfrew will add an expanded beauty room, leather goods store and improved women`s footwear department. A Chanel on the ground floor will also be added, as well as in-store stores like Gucci, Dior, Hermès, Louis Vuitton, Fendi, Tiffany & Co. and Prada. The opening is scheduled for 2020. Meanwhile, Holt Renfrew`s flagship store in Toronto, located at 50 Bloor Street West, will be upgraded with an expanded and recently renovated women`s footwear department. Opening in winter 2018 as well as an expanded beauty department and a space for women`s leather goods. Holt Renfrew`s men`s clothing store at 100 Bloor Street closes and returns to the main store at 50 Bloor Street. The new expanded men`s department will increase by 55% compared to the standalone store. Canadian luxury retailer Holt Renfrew has announced plans to invest more than $400 million to renovate and expand its store network across Canada, as well as its online platform.

« As the Canadian luxury retail landscape evolves, so does Holt Renfrew. These investments will help us enhance the world-class luxury shopping experience our customers have come to expect from Holt Renfrew. We are solidifying our position as the global destination of choice for luxury fashion and beauty products, » said Mario Grauso, President of Holt Renfrew, in a press release. « We are confident in our vision, strategy and team, with a renewed and relentless focus on exclusive partnerships and retaining the world`s best luxury and beauty brands. »