According to retail consultant Trendex, a large burst in the number of high-end retailers coming to Canada could lead to tough times for the segment. The report suggests that this will occur due to a classic case of too many sellers chasing too few buyers.
Trendex notes that over the past two years, luxury retailers Nordstrom, Saks, Holt Renfrew, and Harry Rosen have come into sharp focus, with the total number of stores operated by the four banners increasing from 24 in 2014 to 26 in 2017.
“While these store counts alone rightly raise concerns, they are only part of the story,” says Trendex, which estimates that more than 40 new high-end retail locations have opened in Canada over the past three years, with 30 more to be added between 2015 and 2017.
A report by The NPD Group suggests that this oversaturation of high-end, franchised stores in Canada will require independent luxury brands to re-strategize their retail environment. In this aggressive market, this may require companies to re-think their target categories in order to meet new consumer demands. CJ
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