MadHatters is preparing to expand its footprint across Western Canada through franchising after investing in a new store concept designed to make growth more efficient, says John O’Beirne, the company’s vice-president of sales and marketing.
The Surrey, B.C.-based retailer recently opened a newly expanded corporate location at Central City in Surrey that serves as the model for future franchise stores. At approximately 2,000 square feet, the store features updated product displays, digital signage and a merchandising approach the company plans to replicate as it grows.
O’Beirne said the company currently operates five locations in Calgary, Edmonton, Vancouver, Westminster and Delta, B.C., and is targeting affordable, family-oriented neighbourhoods and B-grade shopping centres as it looks to expand through franchise partners. He said the long-term goal is to extend the brand from Vancouver to Winnipeg and beyond, supported by systems the company has developed to help franchisees succeed.
The new concept store is at the same location where MadHatters was founded over 20 years ago. The new store is double the size of its previous location, spanning 16 departments including travel and luggage, bed and bath, colognes, perfumes and cosmetics, toys, men’s and ladies apparel, and a full range of seasonal items.
The new store has been designed around a simple philosophy: keep a good store, a happy ambiance, and happy staff, so customers have fun while they shop. As a retailer that sells toys, MadHatters likes to say it goes with the territory — happy kids, happy life.
MadHatters has built its brand over two decades by offering affordable, trend-driven merchandise that reflects the needs of local communities, and our business continues to thrive in multicultural, value-conscious neighbourhoods.
In the last five years, it’s grown through franchise partners into Calgary, Edmonton, Delta BC, New Westminster, and Burnaby BC — and it now sees a path to as many as 10 stores across Central and Western Canada.
“We’ve started different systems for selling product. We have different displays, with a little more use of vertical displays where we used to have flatter, simpler displays,” said O’Beirne.
“We use video monitors to bring information to customers, and we use the windows and the front of the stores to enhance the promotion for that particular month.
“Social media, Marketplace, and TikTok are on top of all that. That’s been new in the last couple of years. It’s definitely new to me. We’ve really gotten some extra mileage from it, and we find our customers really resonate with it. If it’s Marketplace, they feel they’re connecting with you there, and then they come into the store and see the same connection at the store level. We’ve got a connection. We’ve got business. People buy into it easily.”
O’Beirne said the growth plan is through franchising which gave the retailer a totally different insight into the whole business.
“We found that franchisees are very keen. They’re quite successful. It’s their business, and they have a totally different approach than, say, a staffed store. That’s the model to expand because they may live in a city—for example, Saskatoon. Somebody might live in that city, and it would be more ideal for them rather than staffing the stores,” he said.
“We’ve developed and invested heavily in the franchise model and the systems behind it. The plan is to roll that out from Vancouver, Edmonton, Calgary, right to Winnipeg, or virtually anywhere that people relate to us. We have the backup and the systems, which are very straightforward.
“What’s unique about it is the departments in the store complement each other. Families come in, so the mom can buy something, the father can buy something, and the kids can buy something—all in the same store at a fairly affordable rate.
“That’s why we know there’s a neighbourhood in every city. We go for affordable neighbourhoods—people who have budgets on the smaller side—and there’s one of those neighbourhoods in every city.”
O’Beirne said that in expansion it looks for B-grade malls that suit the demographic, in neighbourhoods where people find houses reasonably affordable, or accommodation that can be found affordably these days.
“Blue-collar areas, new Canadian neighbourhoods, multicultural families—all of that. They’re our customer base. We feel every city in the country has areas that are conducive to that kind of family,” he added
“The word of mouth goes around very fast as well because someone in Calgary will tell someone in Vancouver about something because they’re connected. Those people are all well connected. It doesn’t have to be social media. They’re connected through family and friends, and word of mouth is strong. Once people start coming, they keep coming. That’s the thing.”
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