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Dive Brief:
- Investing heavily into its direct-to-consumer strategy, luxury apparel brand Canada Goose plans to more than double its existing brick-and-mortar presence over the next five years, according to a press release Tuesday. The company currently operates 51 permanent stores globally.
- The brand plans to reach $3 billion in revenue by 2028, with growth expected to be driven predominantly by its DTC channels and product category expansion. It aims to have DTC account for 80% of its total revenue; the channel made up more than two-thirds of total revenue in fiscal 2022.
- CEO Dani Reiss announced during an investor day presentation on Tuesday that the brand would soon appoint its first chief digital officer. The position will be responsible for all consumer-facing digital platforms and report directly to the CEO.
Dive Insight:
While wholesale gives Canada Goose more geographical reach, the company’s President Carrie Baker said during the presentation that its DTC stores act as the “pinnacle” experience for shoppers looking for immersive luxury.
The brand has leveraged temporary pop-up stores in key markets to prepare and test for opening permanent locations, according to Baker. Although it operates a range of different store sizes, the company’s “sweet spot” size is 3,000 square feet with a target productivity of about $4,000 per square foot.
Canada Goose also views its new secondhand resale platform — which launched last week — as an avenue to drive DTC engagement.
“We’re meeting consumers where they’re at, giving them even more reasons to reengage with us,” Baker said. “In fact, we expect this new platform to drive significant engagement back to our DTC channels, as sellers will be compensated in Canada Goose gift cards redeemable through our DTC network.”
Adding to its nine existing stores in the country, Canada Goose plans to open new stores in Seattle, Los Angeles and Las Vegas in the first quarter of fiscal year 2024, according to the brand’s President of North America Ana Mihaljevic.
Mihaljevic added that the company does not currently have plans to open stores in warmer areas of the U.S. where it has seen stronger e-commerce and wholesale activity, such as Texas, Virginia and Florida.
“We’re not done here in Canada, and in the U.S. there’s still so much whitespace ahead, especially as we quest West,” Mihaljevic said. “And all of this is against that backdrop of the expanding category offering, and never to forget that return of the international tourism. Where I’m standing, we’re just getting started. “
Canada Goose plans to expand its offerings over the next five years, with the goal of creating more year-round relevance. The brand will continue its growth in core areas such as heavy and lightweight down, but also launch into newer categories including rainwear, home, eyewear and luggage.
via https://www.aiupnow.com
Dani James, Khareem Sudlow
