Psycho Bunny is planning measured expansion across North America as improving mall traffic and targeted technology investments shape the apparel retailer’s strategy for the coming years, CEO Anna Martini said in an interview.
The Montreal-based brand, which operates 108 corporate stores across North America, expects to open between five and 10 new locations this year while continuing to evaluate long-term growth potential in both Canada and the United States.
“We’ve got a few stores already signed and done, and we’ve got another four or five that we’re evaluating,” Martini said. “We’re probably going to be somewhere between another five to 10 stores in North America.”
A stabilized Canadian footprint
Psycho Bunny currently operates 14 stores in Canada following recent portfolio adjustments, including the reopening of a downtown Montreal location and the opening of a store at the Montreal Premium Outlets. Martini said the company has no additional Canadian store openings scheduled this year, but Calgary remains a priority market under consideration.
“We do have on our to-do list to open in Calgary,” she said. “We are just waiting for some potential locations in the Calgary market.”
Martini described Calgary as a strong retail market, noting she visited the city in November. While she did not commit to a timeline, she indicated the company is monitoring specific mall opportunities as part of its site selection process.
Continued focus on the U.S. market
The company’s most recent openings were in California, with new stores launched in Glendale and at the Beverly Center in Los Angeles late last year, just ahead of the Black Friday shopping period.
California remains a core growth market for the brand, Martini said, with Psycho Bunny now operating 16 stores across the U.S. West Coast.
“California’s a great market for us,” she said. “LA obviously is a great market. These will be great stores for us. It’s everything from the co-tenancy, great malls, great demographics — the usual markers that we look at when we’re deciding to open a location.”
Martini said the company continues to build density in key urban markets rather than pursuing rapid or broad geographic expansion.
Mall traffic showing signs of recovery
Martini said consumer behaviour has remained broadly consistent across Canada and the United States, with recent improvements in physical retail traffic providing some optimism.
“We’re seeing the traffic is going back up in these malls,” she said. “The trend has been much better in terms of traffic into the malls in the back half of ’25, and hopefully it’s going to continue into ’26.”
She said the improvement has been visible across multiple regions, suggesting a more balanced recovery rather than strength isolated to a single market.
Price sensitivity and promotions
Despite improved foot traffic, Martini acknowledged that consumers remain cautious with spending, particularly amid broader economic pressures.
“Everybody’s in promotional periods at the same time,” she said. “It’s about being competitive at the times where you need to be competitive.”
She noted that promotional activity, particularly during peak shopping periods such as the holidays, continues to play a significant role in driving sales. Shoppers, she said, are increasingly deliberate about timing purchases to coincide with discounts.
“You get a lot of traction during those times because everybody’s fighting for share of wallet,” Martini said. “It’s typical in retail. I don’t think it’s that new.”
Technology investments take priority
Beyond store growth, Psycho Bunny is placing increased emphasis on internal systems and technology as part of its medium-term strategy. Martini said the company is preparing to invest heavily in technology over the next two to three years.
“We’re about to start rolling out and looking at a lot of technology investments,” she said. “How do we bring in the right AI tools to help us with better decision-making? How do we use some of this technology to automate some of our business processes?”
The focus, she said, is on optimization and gaining deeper insights into customer behaviour to support decision-making across the business.
“How do we continue to have better insights on the customer so that we bring the best brand experience?” she said.
Long-term growth targets
Looking ahead, Martini said Psycho Bunny sees room for significant expansion across North America, though she emphasized that any growth would remain disciplined.
“We probably go to like 150 stores in the U.S. and probably 25 to 30 stores in Canada,” she said, referring to the brand’s long-term potential footprint.
That growth, she added, would be guided by market fundamentals rather than aggressive timelines.
Differentiation in a crowded market
Martini said Psycho Bunny’s positioning remains centred on brand identity and product quality rather than rapid scaling. She described the company as a high-energy, premium brand targeting confident, style-conscious consumers.
“We’re about standing out. We’re about colour,” she said. “We bring to market a premium product, with a lot of our stuff made in Peru with premium Peruvian Pima cotton.”
She said that approach has helped foster customer loyalty, which the company is working to deepen as competition for discretionary spending intensifies.
As the retailer balances expansion with operational investments, Martini said the focus remains on building a sustainable business that can adapt to shifting consumer behaviour and retail conditions.
“We’re working really hard to continue to acquire more customers,” she said. “That’s kind of how we differentiate ourselves.”
Jeff Berkowitz of Aurora Retail Group represents the brand in Canada and negotiates leases on Psycho Bunny’s behalf.
