Canadian fashion retailer Aritzia has unveiled a five-year growth plan targeting annual revenue of between $9.5 billion and $10.5 billion by fiscal 2032, with a major expansion of its U.S. boutique network and a more selective approach to its established Canadian stores.
During its October 27 Investor Day presentation, the Vancouver-founded company outlined plans to approximately double its retail square footage while investing $2 billion in capital expenditures over five years. The United States is expected to generate just over 85% of incremental revenue growth, while Canada will contribute approximately 5% and international markets just under 10%.
The geographic split reflects Aritzia’s different stages of development in the two markets. Management considers Canada a mature market where the priority is improving existing boutiques and concentrating demand in stronger locations, while the United States offers considerably greater opportunities for new store openings.
Aritzia Expects Slight Decline in Canadian Store Count
Karen Janes, Aritzia’s Executive Vice President of Real Estate, told investors that the company intends to build on its established Canadian presence by directing investment toward locations with the strongest potential.
“In Canada, where our presence is well-established, the focus is on optimizing the portfolio and concentrating demand behind our strongest Aritzia boutiques,” Janes said.
During the question-and-answer session, Janes confirmed that the company’s Canadian boutique count is expected to decline slightly under the plan. She explained that Aritzia still operates legacy stores under its Wilfred, Tna and Babaton banners, which affect the overall location count.
“Our goal, we should be looking at it as net of that, so like around 50 odd stores, and we are going to keep that cadence and invest in the stores that we have and just make sure they are right-sized in that market,” Janes said.
The comments suggest that Aritzia intends to maintain a relatively stable network of approximately 50 principal Aritzia boutiques in Canada, while the number of separately branded locations may decline. Management did not identify individual stores slated for closure or provide a schedule for those changes.
For Canadian shopping centre landlords, the strategy could create opportunities to work with Aritzia on existing store configurations, particularly where additional space, a better position within a property or a consolidated assortment could improve performance.
A recent example of this approach is the company’s expanded flagship at CF Toronto Eaton Centre, which opened in April 2026. As Retail Insider previously reported, the approximately 18,000-square-foot location brought together merchandise previously sold through separate Wilfred, Babaton and Tna storefronts within the shopping centre.
Larger Boutiques and Repositionings Drive Growth
Aritzia’s real estate strategy increasingly emphasizes larger boutiques and improvements to established locations alongside new store openings.
Over the past four years, its total boutique count grew at a compound annual rate of approximately 7%, while total retail square footage increased at an annualized rate of 14%. The difference reflects the company’s investment in larger stores and repositionings, which can increase selling capacity without a corresponding increase in the number of locations.
Janes said Aritzia plans to reposition five to seven boutiques annually over the next five years. Projects can involve relocating stores to more desirable positions, improving layouts or expanding capacity in markets where the company already has an established customer base.
“We are taking that established demand and giving it better real estate,” Janes said.
Aritzia expects total retail square footage to increase at a mid-teens annual rate through fiscal 2032, approximately doubling its physical footprint. Most of that growth will occur in the United States, although the company is also investing in selected major Canadian locations.
In downtown Vancouver, Aritzia is developing a four-level flagship of approximately 41,800 square feet at CF Pacific Centre, occupying part of the former Nordstrom premises. The project, previously examined by Retail Insider, shows the company’s willingness to make substantial investments in prominent Canadian retail properties.
U.S. Boutique Network Expected to Reach 160 Stores
Aritzia plans to open 12 to 14 new boutiques annually across the United States, expanding its American network from a projected 87 locations at the end of fiscal 2027 to 160 by fiscal 2032.
The company also intends to enter 15 to 18 additional U.S. markets during the five-year period while expanding its presence in established cities. Its strategy combines new market entries with investments in existing locations, including repositionings and selected larger-format boutiques.
Aritzia’s U.S. revenue grew at a compound annual rate of approximately 31% over the preceding four years, according to management. The country is expected to account for roughly two-thirds of total company revenue in fiscal 2027, with the American business projected to continue growing at a high-teens annual rate under the new plan.
The scale of the opportunity helps explain the company’s geographic priorities. While its Canadian store network is well established, Aritzia continues to see substantial room to increase its physical presence in American markets where the brand has already attracted customers through digital sales and marketing.
Boutique Economics Support Continued Investment
Aritzia provided additional detail about the economics supporting its physical retail expansion, including the relationship between boutique openings and digital sales.
Management reported that newly opened boutiques are currently achieving investment payback in less than 12 months. The company’s five-year financial plan assumes a more conservative payback period of 12 to 18 months, providing a benchmark for future store investments.
Janes also said that when Aritzia opens a boutique in a new market, the company sees an average increase of approximately 65% in digital sales within that market. The company-reported figure suggests that physical stores help introduce the brand to new customers and generate additional online business beyond purchases made inside the boutique.
Aritzia’s digital leadership described a similar relationship in the opposite direction. Approximately half of boutique transactions are influenced by a digital interaction immediately before the purchase, while customers acquired through digital channels are twice as likely to shop across physical and online channels.
These relationships help explain why Aritzia continues investing heavily in stores while pursuing significant digital growth. A boutique can generate revenue through its own sales while supporting customer acquisition, brand recognition and additional online purchases in the surrounding market.
Management expects digital revenue to grow approximately 20% annually over the next five years. Physical retail and digital channels are each expected to contribute roughly half of incremental North American revenue growth.
$2 Billion in Capital Spending Planned
Aritzia expects to invest approximately $2 billion in capital expenditures over the five years leading to fiscal 2032, supporting its retail expansion and the infrastructure required for a substantially larger business.
Approximately $1.1 billion will be directed toward retail square footage expansion, including new boutiques and improvements to existing locations. Another $500 million is allocated to increasing U.S. distribution capacity by approximately two million square feet, while roughly $400 million will support technology, digital initiatives, office expansion and capital maintenance.
The distribution investments reflect the company’s geographic priorities. Management said Aritzia has established approximately 1.2 million square feet of distribution capacity in Canada, with its next major phase of logistics investment focused on the United States.
Aritzia expects its adjusted EBITDA margin to reach approximately 21% by fiscal 2032, compared with approximately 20% anticipated for fiscal 2027. Its financial plan assumes low- to mid-single-digit comparable retail sales growth, alongside continued boutique expansion, digital growth and improvements in merchandise productivity.
Product expansion is expected to contribute approximately $1.5 billion in incremental annual revenue by fiscal 2032. The company sees opportunities to increase sales through additional merchandise categories, supporting productivity within both new and existing boutiques.
Vancouver Retailer Expands Its International Reach
Aritzia’s new growth targets mark another stage in the development of a company founded in Vancouver in 1984. Management said annual revenue was approximately $550 million when the retailer went public a decade ago, compared with expected fiscal 2027 revenue of between $4.78 billion and $4.88 billion.
The company now expects revenue to grow at a compound annual rate of 15% to 17% through fiscal 2032. International markets beyond North America are expected to generate approximately $500 million in annual revenue by that point, supported by digital growth and the opening of Aritzia’s first boutiques outside North America.
The company’s expanding American operations are also reflected in its corporate infrastructure. Vancouver remains its largest support-office location, while New York has become its second-largest, bringing management and operational teams closer to the company’s most important growth market.
Aritzia’s new targets follow expectations discussed in Retail Insider’s October 20 report examining Stifel analyst Martin Landry’s outlook. That earlier analysis considered the possibility of Aritzia targeting approximately $10 billion in annual revenue, while the Investor Day presentation has now provided details about the real estate and operating investments intended to support the plan.
The next five years will involve significant changes to Aritzia’s physical retail network, with the company targeting 160 U.S. boutiques and approximately twice its current total retail square footage by fiscal 2032. In Canada, management’s focus on legacy branded boutiques and strengthening established Aritzia locations will make the configuration and productivity of existing stores an important part of the company’s real estate strategy.
