How to Expand a New Retail Location in Canada

Opening a new retail location is a milestone. It signals that your brand is growing, that your customers are loyal, and that you have built something worth replicating. Yet many Canadian retailers underestimate the complexity of running more than one store. The risks are real, but so are the opportunities when you plan strategically and use the right tools.

Rather than relying on generic advice, here are practical, proven strategies that successful retailers are using right now to expand without overextending yourselves.

In This Article:

• Questions to ask yourself before expanding

• Popups vs soft opening

• POS Systems and Analytics

• Tailor your inventory to the local market

• Localized marketing launch plan

Questions to Ask Yourself Before Expanding:

• Is my current location consistently profitable year-round?

• Am I building a loyal and growing customer base?

• Do I have clear evidence of demand in the new market?

• Can my current systems handle the workload of multiple stores?

• Is there a strong management team ready to run locations independently?

• Do I have enough financial reserves to weather delays or a slow start?

If you can answer “yes” to most of these questions, you’re in a stronger position to expand. If not, focus on strengthening your existing store and systems first.

Popups Vs Soft Opening

When should you consider a popup and when to consider a soft opening?

To test the waters, many businesses choose to reduce risk and test demand through either pop-up shops or soft openings.

Pop-Up Shop
A pop-up is a short-term retail presence, often lasting from a few days to a few months. It’s ideal for gauging demand in a completely new market or experimenting with a smaller footprint. Pop-ups allow you to:

• Test customer interest without the cost of a permanent space.

• Build awareness and excitement ahead of a full launch.

• Experiment with different product assortments to see what resonates locally.

Platforms like PopupTogether, Pop-Up Go, and Storefront make it easy to find temporary spaces and even provide turnkey setup, staffing, and analytics so you can focus on sales and customer engagement.

Soft Opening
A soft opening is a controlled, early launch of your actual new store before the official grand opening. It’s best suited when you’ve already committed to the location and want to:

• Train staff in a live environment.

• Work out operational kinks before facing peak traffic.

• Gather real customer feedback and adjust before your formal launch.

Many retailers invite a select group of customers, local influencers, and community members during a soft opening to build word-of-mouth before going public.

Which to choose?
If you’re still deciding whether a location is worth the investment, a pop-up is the lower-risk option. If you’ve already secured the space but want to refine operations and create buzz, a soft opening sets you up for a smoother official launch.

Testing the Waters Work Better Than Most Tactics

Testing the waters before a full-scale launch can save time, money, and stress. Short-term strategies like pop-up shops or small-format locations give you a real-world read on customer demand without the long-term financial commitment of a permanent lease. This approach turns guesswork into hard data to help you decide if a market is truly worth investing in.

In Canada, flexible retail options make testing easier than ever. There are many options for platforms that offer spaces in high-traffic locations, ranging from vacant storefronts to cafés, art galleries, and even rooftop venues, allowing you to match the setting to your brand and audience.

Market conditions also make testing attractive. Vancouver’s downtown lease vacancy reached 14.9% in 2024, while Toronto’s sat below 1.5%. Pop-ups allow retailers to seize available space where it exists and test demand in markets where leases are harder to secure.

Turnkey pop-up platforms lower barriers further by handling logistics like fixtures, POS setup, staffing, and analytics. This allows retailers to focus on engaging customers—something 73% of shoppers still prefer to do in person. The temporary nature of a pop-up also creates urgency, boosting both sales and visibility.

Canadian fashion and specialty retailers are increasingly using pop-ups in high-traffic areas, seasonal markets, and even inside larger stores to build buzz and gather valuable customer insights before committing to long-term expansion.

POS Systems and Analytics

Opening a new location can expose weaknesses in staffing and leadership if there is no consistent structure in place. Successful multi-location retailers focus heavily on training store managers and ensuring they can lead teams independently while still aligning with company culture.

Consider cross-training managers by having them work in different locations before your new store opens. Use POS analytics to identify peak traffic periods and make informed staffing decisions. These steps ensure that both locations deliver the same standard of service, even when you can’t be in two places at once.