Point Zero prepares to open stores in New York and China<

While many retailers are terminating leases and trying to salvage furniture, Montreal-based clothing brand Point Zero is gearing up to open its own stores overseas instead. Negotiations are underway to have a storefront in New York and even in China.

Wholesaler since its foundation in 1979, Point Zero is rapidly developing another expertise, that of retail.

The company of Maurice Benisti and his wife Nicole already has 19 stores in Canada and 3 in Mexico. But if all goes as planned, 2021 will mark a real turning point in its strategy of expanding and diversifying its activities.

Only in Canada, Point Zero aims to open 50 points of sale by the end of the year, revealed the specialized publication Retail Insider. “It’s easy to do 50 stores. We are discussing with the five biggest owners [of shopping centers] to make ten stores with each one, ”Maurice Benisti told us during an interview.

The businessman is also negotiating to hang the Point Zero name on facades in Manhattan, Brooklyn, New Jersey and even China, he revealed to us. In China, talks also include a “multi-million” wholesale component to supply local retailers. He also plans to sign wholesale distribution contracts in London and Italy soon.

The massive opening of all these Point Zero shops will be possible thanks to the trends that the pandemic has accelerated in the real estate sector, explains Maurice Benisti, referring to store closures and the drop in customers in shopping centers.

@TheMERL @readingmuseum @BMaestros @TheRockAcademy @StageAbility_RG @PQA_Reading @RABBLE_Theatre Getting off the st… https://t.co/ LwphHDx2Pz

— What's On Reading Wed Jul 28 16:19:17 +0000 2021

“Shopping center owners can no longer charge rent based on their commitments to their banks or financiers and based on traffic. They all got it. »

“There is no longer any risk”

This situation gives rise to unexpected opportunities for Point Zero, believes Maurice Benisti. “We are incredibly lucky. Before, [the donors] had their formula and we couldn't even discuss it. Now, we can make plans with them, sign leases based on the percentage of sales, which is much more normal. »

The leader goes even further. “If we manage to agree on that, there is no longer any risk. Because in retail, he pleads, “all the risk is in the lease”. He is also of the opinion that if there are so many retailers in difficulty – Aldo, Reitmans, Dynamite –, “it is strictly because of the rents”.

Even in the shopping mecca of New York, owners are showing more flexibility. “It has changed enormously, 30% of the premises are empty, reports Maurice Benisti. Reality hits them. The time is therefore ideal, he believes, to tackle the difficult American market with a brand that is "strong" because it dresses "as much the 18-year-old youngster on his skateboard as the 77-year-old gentleman, unlike what they say at Harvard, where they ask you to identify your segment.

Point Zero even manages to negotiate short-term leases – six months or a year – rather than ten years as is the norm. This will then allow him to "determine a base rent" realistic, based on real sales, explains the businessman who employs 300 people at his headquarters on rue Chabanel, in Montreal. "We're going to make the long-term offer on that. That is the way not to go bankrupt, to succeed in partnership with the owners. »

What does not change is that the premises must be well located to be successful. "We have stores that make $5,000 in sales a day and others $500 a day with exactly the same merchandise," explains the manager to demonstrate the importance of location.

A strategy that is not without risk

Manufacturers who have added the string of retail sales to their bow have multiplied since the 2000s. We have seen it in the sector footwear with Ecco, Geox, Clarks and Skechers. On the clothing side, Canada Goose is one of the latest in the running. The trend is also seen in electronics since Apple, Samsung (since August in Montreal) and even Microsoft operate stores.

This strategy is “not without risk, that’s clear,” believes marketing professor Bruno Lussier of HEC Montréal. “As a wholesaler, you don’t have to worry about customer service or training salespeople. Venturing with consumers is something else,” he says, recalling that today’s consumer is “demanding, educated, on the lookout”.

But it is beneficial to have full control over the sale of your products, and avoiding a middleman increases the profit margin.

About Point Zero in particular, Bruno Lussier is not convinced. “Working on a different way of meeting people would be a better idea. I'm not sure that after the pandemic, there will be a massive return to shopping malls. »

Nicole Benisti in Shanghai

The Benisti couple are already familiar with the Chinese market, having opened a space there in Plaza 66, a luxury shopping center in Shanghai. What is sold there, a stone's throw from Prada? High-end coats from the Nicole Benisti brand, the price of which can exceed $3,000. These are designed at the head office on rue Chabanel, in Montreal, but made in China. This range worn by stars like Céline Dion and Jennifer Lopez is sold in London (Selfridges and Harrods), Moscow (TSUM) and the United States (Bergdorf Goodman and Saks Fifth Avenue). In Canada, Nicole Benisti coats can be found in stores of the Holt Renfrew chain. Online sales generate 30% of turnover. “We receive orders from countries you have never heard of! “laughs Maurice Benisti.