Le Chateau looks to reconnect with once-loyal shoppers

Montreal-based clothing retailer promoting more mature styles in upcoming campaign

Le Chateau reconnectsLe Chateau says it hopes to reverse years of financial losses by reintroducing itself to customers who were loyal in their rebellious youth, but are now seeking fashionable office attire.

The Montreal-based clothing retailer said it would promote its more mature styling in an ad campaign next month. It is also preparing to introduce a loyalty card next year and expand its online wedding boutique, which was launched last spring.

Company founder Herschel Segal said after Wednesday’s annual meeting that the company moved slowly to reposition itself, but is regaining its footing.

That means reconnecting with former customers by offering clothes targeting working men and women, he said.

With the help of ad agency Sid Lee, Le Chateau plans to promote the brand’s repositioning that has been developing over the past few years, including the rollout of a new store concept that features better lighting, more fitting rooms and improved clothing displays.

Le Chateau executive vice-president Franco Rocchi said he’s optimistic about a turnaround because that concept, which has been rolled out in several top markets in Canada, has shown sales improvement even without advertising.

About 20 stores will be remodelled by the end of this year, representing about 10% of its Canadian network. More will be added as leases are renewed, the company said.

Le Chateau also plans to continue closing underperforming stores in a bid to stem four years of losses amid declining sales. Its ecommerce business is growing by double digits, but accounts for less than 10% of its overall business.

Segal, who recently lent the company another $15 million on top of a previous $10 million, said he would continue to give it a lifeline as long as he sees potential for improvement.

Meanwhile, his wife Jane Silverstone Segal, who replaced him as chairman and CEO, reassured shareholders that Le Chateau has developed the right strategy for a brighter future in a competitive retailing segment that has seen several failures.

Add a comment

You must be to comment.

Consumer Articles

Consumer shifts put retail hiring at record low

Online shopping and automation means fewer positions to be filled on the floor

A CEO’s tips for using DIY video in consumer marketing (Column)

Vidyard's Michael Litt argues against outdated 'text tunnel vision'

What ‘customer centricity’ means to me

The season of giving is a good reminder to keep giving back

More Canadians to cross the border for Black Friday

UPS study shows many more Canadians shopping online or in store in the U.S.

Natrel whips up lactose-free butter option

Agropur Dairy to promote product with digital and in-store campaigns

Cold-FX class action lawsuit over misleading ads thrown out

Judge says Vancouver man couldn't effectively prove his claim

‘Suck it up,’ says Fisherman’s Friend in flu campaign

The lozenge maker sticks to its tough roots in TV spots

Harry Rosen’s secret to winning customer loyalty

Menswear company's founder keeps his eyes on what's next in style and design

Which shoppers are affected most by high food prices?

New study reveals pre-shopping habits and food vulnerability in food retailing