Dive Brief:
- Adding another retail partner to its lineup, Levi’s is opening a 6,600-square-foot shop within Hudson’s Bay in downtown Vancouver, the iconic denim brand announced on Tuesday.
- The shop-in-shop will have a Levi’s Tailor Shop, where customers can modify jeans to achieve the perfect fit or customize their purchases with special embroidery, colored shank buttons and other unique features, according to the press release.
- The store is designed with digital displays, an illuminated mannequin runway and black-enameled fixtures. It will also have tech-enabled fitting rooms that can provide shoppers with styling recommendations and connect them with sales floor employees for help with the style and fit of their purchases.
Dive Insight:
As it aims to grow its revenue substantially, Levi’s has continued to partner with key retailers to reach more consumers. In March, the denim brand teamed up with Target to bring its red tab jeans and other clothing into more than 300 Target locations. The brand also brought back its 1990s Levi’s SilverTab collection and will sell the collection in Kohl’s stores until early next year.
In the Hudson’s Bay announcement, Laura Janney, chief merchant at The Bay, said Levi’s new shop-in-shop represents the brand’s consistent innovation and product quality.
“With consumer behavior shifting in the ever-changing retail landscape, Levi’s continues to prioritize how we deliver our iconic products and impactful brand experience,” Nicolas Versloot, managing director for Levi’s Canada, said in a statement. “Our goal was to provide a premium one stop shop in a coveted, high-traffic area, perfect for engaging with Levi’s fans who want to connect with the brand, and who are searching for a retail experience as well as their dream pair of Levi’s.”
Earlier this summer, Levi’s executives said the company aims to reach between $9 billion and $10 billion in revenue by 2027, a 6% to 8% top-line growth instead of its previous benchmark of 4% to 6%. It also wants to grow its e-commerce and direct-to-consumer businesses to 55% of annual net revenue by 2027, which it plans to do by increasing its investment in its direct-to-consumer channels.
As workers begin returning to the office, the demand for jeans could be a boost for Levi’s. In Q2 2022, the company saw a 15% increase in net revenue from last year to $1.5 billion, a 15% bump in wholesale and a 16% rise in direct-to-consumer. Its CEO Chip Bergh partially attributed the increase in revenues to the casual work attire trend that has emerged after the COVID-19 pandemic.
