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· Posted on
February 21, 2024

Canada Goose takes the plunge into Australia as the luxury market defies cost-of-living gravity

Despite the higher cost of living, Australians are still shopping at high-end retailers in droves.D

What's the key learning?

  • Australians are still very much into shopping at high-end retailers, with Chanel and Lululemon facing increased sales and Canada Goose opening up shop in Australia.
  • A 'two-speed economy' is when one part of an industry or business is growing at a much more rapid rate than others.
  • While many retailers are struggling to grow their business in the face of growing costs and less discretionary spending, others in the more 'premium' space are seeing their sales and profit accelerate.

👉 Background: Australia is undergoing the largest cost of living surge of the past 30 years. In fact, annual inflation is now growing faster than it has since 1990. And now, we know this has led to a number of Australian consumers seeking out value products.

👉 What happened: But despite the higher cost of living, Australians are still shopping at high-end retailers in droves:

👉 What else: Canada Goose, a luxury brand that competes with the likes of Moncler and Woolrich and whose jackets starts at $1,000 plus, is opening up shop in Australia... And this is just another sign of the two-speed economy in the country right now.

What's the key learning?

💡A 'two-speed economy' is when one part of an industry or business is growing at a much more rapid rate than others.

💡While many retailers are struggling to grow their business in the face of growing costs and less discretionary spending, others in the more 'premium' space are seeing their sales and profit accelerate.

💡The pattern of 'two-speed consumption" is creating clear winners and losers in the retail industry. This is why Canada goose is opening up new stores and why Target is starting to shut down some of theirs.

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