Loblaw's Joe Fresh, Canada's biggest grocer, opened a flagship store last week on Manhattan's Fifth Avenue, but instead of meat and produce, it's selling $29-women's dresses and $12-men's shirts, according to Bloomberg.

Target and Walmart first sold clothes and then moved into groceries; Loblaw has done the opposite in hopes of competing with the two major retailers. Joe Mimran, who founded Club Monaco Inc., has designed the store's clothing line, which sold so well that Loblaw decided to open standalone stores and now has 12 in Canada. Last year, Loblaw opened five shops in New York and New Jersey. The new Fifth Avenue store is a block from Hennes & Mauritz AB and Zara locations and 10 blocks from the Uniqlo flagship location.

"We've opted to take the brand international, with New York being sort of the window to that expansion," Mimran told Bloomberg. "We still think there's another 20 percent growth available to us, but the real growth now is going to have to come from outside of Canada."

Read more about specialty stores.

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