Another empty storefront as Rexall announces downtown store closure

All day Wednesday, a steady stream of shoppers filtered in and out of the Rexall on Richmond and Dundas, clutching bags stuffed full of deodorant, soap and antacids.

The scene could lead passersby to think the drugstore's business was booming, were it not for a bright yellow sign boasting a "store closing sale" in bold-faced type.

"Rexall is reviewing its store portfolio and scaling its retail footprint to fewer but stronger stores," said spokesperson Darius Karus in an email, adding that the brand is relocating employees to other locations where possible. 

Rexall's closure comes as the city undergoes significant street construction downtown, which has meant a disruption to traffic flow in the core, said John Winston, general manager for Tourism London. 

In that context, Winston called the Rexall closure 'disconcerting' but unsurprising. 

"Rexall is a national brand retailer, and for them to make a decision to leave is not encouraging for other brand retailers to consider the core in terms of investing their businesses in the downtown," said Winston.

Store vacancies can further discourage tourists and other visitors from visiting downtown—which results in a vicious cycle for business, he said.

"The more vacancy rate increases, the less of a demand or desire there is to shop in the core," he said. "I think it's a significant development and one I hope doesn't go further."

The Rexall closure means another empty storefront on London's prominent Richmond St. and Dundas St. intersection. Kitty-corner from the Rexall is London's Market Tower, which—despite a bid by Farhi Holdings Corporation to move the health unit headquarters into the building—also remains empty at this time. 

Farhi Holdings Corporation also owns the space that Rexall is about to vacate.

What business owners on Dundas say

Andrew Kim manages the D&R Smoke Shop across the street from the Rexall, and says he noticed a drop in customers when the #2 bus line was re-routed off of Dundas and Richmond.

"This used to be the focal point of the transfer for transit, but for the last almost two months now... We have lost lots of traffic flow in this area," said Kim.

"All of the merchants over here in the downtown core have lost significant customers, which means big business loss as well."

Bikini Paradise manager Carley Gallaway also lost a bus stop when the construction on Dundas St. began.

"Buses with random people come off, they see it, kill time, they come in… But unfortunately it's not happening any more," said Gallaway. "Hopefully the construction will be good when it's done, but it's just getting through the two years."

Gallaway said her store has compensated for some of the loss in foot traffic by selling items online.

Kristofer Laing, manager of London Rock, said he's noticed more people are opting to take the bus to either Masonville or White Oaks mall, and staying away from downtown altogether.

"It seems like everyone's taken a hit," said Laing, adding that he thinks protected bike lanes on Dundas St. would help bring more shoppers back to the area.

'We just go back to the drawing board'

Janette MacDonald, CEO of Downtown London, said she actually spent some time speaking with Rexall, trying to convince the brand to stay. But now that the decision's been made, MacDonald said she's confident the space will soon attract a new tenant.

In fact, Downtown London has already spoken to some prospective tenants who are interested in the location, although MacDonald declined to say what kinds of businesses they represent. 

She said that going forward, her group is focusing on recruiting more independent shops, rather than large retailers who have to go where the corporate wind blows. 

"A hole at Dundas and Richmond's not very helpful, but the beauty of it is that it's renovated now and it should be able to attract a pretty good business," she said. "As one goes hopefully another one comes in."