Canada Goose Doubles Down on Retail Footprint
Retailer aims for 100 stores in five years, opens 3K outlets that offer "pinnacle immersive luxury."
Canada Goose Holdings, a Canadian holding company of winter clothing manufacturers, is planning to double the number of its outlets in the next five years, aiming to increase its bricks-and-mortar footprint to more than 100 stores globally.
In addition to nine existing US stores, the company will be opening new stores in Seattle, Los Angeles and Las Vegas in Q1 2024.
The Toronto-based firm, which specializes in luxury items including goose down coats, says it currently does not have plans to open stores in the Texas, Florida and Virginia, where it has seen strong e-commerce activity, but will continue to expand in the Western US.
The clothing retailer is investing heavily into a direct-to-consumer (DTC) strategy for its Canada Goose luxury apparel brand, with a revenue target of $3B in 2028, according to a press release.
Canada Goose is aiming to have its DTC channels account for 80% of its total revenue, up from two-thirds in 2022, with growth also driven by an expansion of product offerings.
In an investor day presentation on Tuesday, Canada Goose President Carrie Baker explained that new DTC stores—designed in a series of temporary “pop-up” outlets that tested the concept—will supplement the geographic reach of the company’s wholesale outlets with an intimate “pinnacle experience in immersive luxury” for shoppers.
The DTC outlets that will be oozing with luxury will average about 3,000 SF with “target productivity” of $4,000/SF, which is roughly $12M per outlet per day.
Canada Goose also is introducing a new secondhand resale platform.
“We’re meeting consumers where they’re at, giving them even more reasons to engage with us,” Baker said during the investor day presentation, adding that the resale platform will drive loyal customers back to DTC channels because sellers will be compensated in Canada Goose gift cards redeemable through the DTC network.
Canada Goose says it will expand its offerings over the next five years with a goal of creating “year-round” relevance. The brand will grow in core areas such as heavyweight and lightweight down. Other new product categories will include home products, eyewear, luggage and rainwear.