Indigo’s next chapter includes chainwide refresh
Retailer says it has plenty of cash for renovations, and is still eyeing expansion into U.S. market
Indigo is planning to renovate nearly every store in the chain within the next 30 months, said chief executive officer Heather Reisman on Wednesday.
“The fleet is old now, most have not had investment in a long time, so now we’re going to be investing all across the board,” said Reisman, speaking at the company’s annual general meeting in Toronto.
Reisman said the location at CF Sherway Gardens, opened in May and billed as a cultural department store, has been a smashing success and the model will be incorporated across the country.
She also has her eye on the U.S. market, where Barnes and Noble continues to struggle with negative returns, even after the failure of competitor Borders in 2011.
Reisman said the timing for a U.S. expansion looks better now than it did three years ago when she talked about moving into the U.S., but finding the right real estate is a challenge.
“We’re looking at a couple of markets. We could find something in six months (or), because we need a cluster of stores, it could take two years. It’s on our horizon, we literally work on it all the time, but it’s a thorny issue, so who knows?”
She would not reveal how much the company will spend on capital renovations, but said it has plenty of cash — and no debt — to do it.
The renovations will include some store relocations, but no more closures. “There aren’t any weaklings left in the network,” said Reisman.
According to the company’s annual report, 21 stores have been closed in the past three years, including nine superstores and 12 smaller format stores.
As of April 2, the company operated 88 superstores under the banner Chapters and Indigo and 123 smaller format stores under the banners Coles, Indigospirit, SmithBooks and the Book Company.
Indigo employs 6,200 people nationwide.
No decision has been made yet on whether banners will be rationalized as the renovations are done, Reisman said.
The renovations will resemble the changes introduced in the Sherway Gardens store, but won’t be cookiecutter, reflecting instead the idiosyncrasies of each market.
She is also open to new brands to carry in the store, as a full shop-inshop, such as American Girl, or a smaller presentation, such as the Moleskin notebooks featured in her stores.
The new buzzword for her organization is phygital, said Reisman, and refers to the need to incorporate digital technology to enhance the shopping experience for customers, making it easy for them to shop online and in-store seamlessly.
Whatever comes, Reisman said she will remain at the helm of the company she founded19 years ago. There are no succession plans in place.
“I have no intention of leaving Indigo. None. I expect to be here for a long time to come.”
That includes leading a possible expansion into the U.S. “I’m too old to be scared,” said Reisman.
“I have no intention of leaving Indigo. None. I expect to be here for a long time to come.” HEATHER REISMAN INDIGO CEO