The Globe and Mail reports in its Wednesday, Dec. 10, edition that Groupe Dynamite chief executive officer Andrew Lutfy believes the company's expansion into premium markets is "a bet that's paying off," attracting a more resilient customer base. A Canadian Press dispatch to The Globe reports that by opening stores in top U.S. shopping districts and London's Oxford Street, they are reaching consumers in the top 20 per cent who typically have assets. This affluent demographic shows less price resistance while shopping at Dynamite and Garage stores. In contrast, customers in other markets face pressure from inflation and a softer labour market, as they are more likely to be renters without equity.
His observations indicate Dynamite's shift toward more prized markets and properties has been worthwhile for the brand, which has spent recent years contending with inflation-pummelled customers and constantly changing tariffs.
When the company went public in November, 2024, most of its stores were in locations rated tier four and tier five, which Dynamite's financial documents say usually comprise shopping centres.
Chief financial officer Jean-Philippe Lachance says, "Now that has shifted to the opposite."
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