Apparel Brands Expand Physical Footprints Amid Big-Box Struggles

Despite hundreds of store closures in the wake of teetering finances at Bed Bath & Beyond and several other chains, in-store shopping has regained its footing as consumers' most popular choice — and some apparel retailers are taking advantage by opening more physical locations.

A new survey from PwC showed that in-store shopping held steady as the most popular channel for consumers, with 43% of respondents saying they had shopped in person in the past year. Shopping by smartphones or mobile devices was next at 34%, followed by PCs at 23%. 

That helps explain why brands like Canada Goose, a winter clothing retailer, are planning to expand their physical store presence. Canada Goose is looking to more than double its retail footprint in the next five years, while Ralph Lauren plans to open 250 stores over three years, ModernRetail reported. The North Face wants to add up to 300 retail and partner locations over five years, including 70 stores planned for North America, RetailDive reported.

The expansions come amid a slew of high-profile closures, with brands like Tuesday Morning, Bed Bath & Beyond and Party City shuttering locations due to financial struggles. Business Insider compiled a list of more than 800 big-box stores closing in 2023. 

But Placer.ai found that retailers overall have more than bounced back from the damage of pandemic-related closures, using opportunities to establish new channels, grow into new markets and cater to new audience segments to open new avenues for brick-and-mortar success, Connect CRE reported.

“Traffic is up pretty much across the board” for physical retail, PwC U.S. Retail Leader Kelly Pedersen told Modern Retail.

“People are almost overindexing right now on wanting to go back to the physical environment.”

While brands have built up their online presence, some have overlooked the continued importance of offline shopping, Ethan Chernofsky, vice president of marketing for Placer.ai, told Modern Retail.

“Offline is not any less important than it was a year or two years ago or five years ago," he said. "It’s still super critical and it’s growing. … Physical retail has never been more important.”

In its five-year financial outlook, Canada Goose said it expects to increase its number of physical stores, now 51, to between 130 and 150 by 2028. It will double its store count by the end of this year.

The company’s growth strategies include focusing on women and Generation Z shoppers and offering new merchandise like rainwear, footwear, luggage and home products.

The North Face plans to draw customers by revamping its storefronts and selling more hiking, trail, active and footwear products, RetailDive reported. REI, another outdoor and active product retailer, is opening a new location in California in the spring and a new co-op location in Oklahoma next year.

In-person shopping remains important for discovering new products, Chernofsky told ModernRetail.

“That first visit still needs to happen in the physical environment, because that’s where I can do the try-on,” he said. “That’s where I can fall in love with a brand.”