# Canadian fashion brand Garage opens 20 profitable stores annually while Gen Z returns to malls

*Physical retail expansion drives growth as the brand capitalizes on youth traffic reversing the decade-long store closure trend.*

By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC.
Published 2026-07-10.

Canonical: https://www.pops4.com/stash/articles/garage-2026-07-10t18-3
Subject: Garage
Tags: retail expansion, gen z, physical stores, pop-up, mall strategy, conversion

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Garage, a Canadian fashion retailer targeting Gen Z, opened **20 new stores** in the past year while reporting each location profitable, according to Glossy. The brand launched stores in London and two in Manchester last month, plus locations in Louisiana and Hawaii since November. This stands against a retail landscape where competitors closed thousands of doors between 2017 and 2023.

The move works because Garage identified a demographic shift: Gen Z, raised on DTC e-commerce, now seeks physical discovery and social shopping. Mall traffic among 16-24 year olds rose **18 percent** year-over-year in Q4 2023, per ICSC data cited by Glossy. Garage positioned stores in malls where this cohort already congregates, turning foot traffic into revenue without expensive customer acquisition. Each store becomes a billboard, fitting room, and conversion point where product moves at full price. The brand avoided the online discounting trap that erodes DTC margins.

The profitability lies in unit economics most digital brands cannot match. Garage reported store-level margins exceeding e-commerce by double digits, driven by impulse purchases and basket sizes **35 percent higher** in-store versus online, according to the company's assessment cited by Glossy. Stores also function as micro-fulfillment for local online orders, cutting last-mile costs. The brand signs shorter leases in B and C mall locations where rents dropped **22-40 percent** since 2019, per CoStar data referenced in the source. Lower occupancy costs and higher conversion create profitable stores in 90 days.

The steal for a small physical product brand: identify one regional mall or downtown corridor where your demographic actually walks. Visit during peak hours. Count foot traffic for two hours. If you see **150+ people** in your age/gender target, negotiate a 90-day pop-up lease or cart space. Budget **$3,000-$8,000** for buildout: folding tables, signage, tablet POS, lighting. Stock **80-120 units** of your top SKU in multiple colorways. Staff it yourself or hire part-time at **$18-$22/hour**. Open Thursday through Sunday, 11am-7pm. Track conversion: if **8-12 percent** of foot traffic stops and **40 percent** of stops convert, you have a model. Scale to a second location. Use store sales to finance inventory for the third.

Run Instagram ads geo-targeted within **five miles** of the store, showing product and the physical address. Spend **$200-$400** per location per month. The ads drive discovery; the store closes the sale. Offer a store-exclusive colorway or product not available online. Capture emails at checkout with a **10 percent** discount on next purchase. Use those emails to test new products before broader launch. The store becomes your highest-margin channel and your focus group.

This is not about scale. It is about margin and velocity. Garage proved that **20 stores** can outperform **$50 million** in Meta spend if you place them where your customer already is. The next move: test your first location this quarter, measure conversion and basket size, then replicate the model in the next walkable district by Q3.

## The takeaway

Open a 90-day pop-up where your target demographic walks, convert 8-12% of traffic, and use store margins to fund the next location.

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## Publisher

**Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339.
Principal and author: **Jenny Huang Goodman MPA MSc MHSA**.

- Author: https://www.huanggoodman.com/about
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