Home goods store Flying Tiger lands in Canada, where competition awaits

A northman place goods-brand is moving into Canada, and retail experts say competitors testament feature reason out to worry if it picks up enough momentum.

Flying Tiger Copenhagen is a Danish retailer that has expanded into 44 global markets over the last 31 years by selling low-priced items such as dish towels with fruit motifs, animal-shaped erasers and jewellry boxes resembling fancy sofas.

Canada will become its 45th market when the brand opens its first store here Friday at Toronto's Eaton Centre. At least four more Canadian locations are expected to follow this year, and the retailer plans to continue expanding from there.

"Quality over quantity, but we have great plans for Canada," said Jens Aarup Mikkelsen, Flying Tiger's chief executive.

"We really believe it's going to be one of the leading markets in the Americas."

The chain's arrival is expected to shake up a segment of the retail market long dominated by Dollarama but has increasingly challenged by Asian entrants Miniso, Daiso and Muji, as well as established retailers such as Giant Tiger and Walmart.

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"Arguably, there are limits to what the consumer will spend on what could be termed fun frivolities, so the ongoing expansion of chains that focus on this will eventually produce a crunch," Neil Saunders, managing director of retail at research firm Global Data, said in an email.

What will set Flying Tiger apart is not its prices — 80 per cent of its 1,800 products will cost less than $10 — but its eye-catching merchandise and ability to keep up with trends, said Lisa Hutcheson, a retail strategist with J.C. Williams Group.

"It's a bit more elevated, curated. It doesn't come off quite as cheap," she said of Flying Tiger's merchandise. "Some of the products are more artistic and to spend $5 or $7 on something, might be that answer to feel good, to scratch that itch."

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Flying Tiger is known for its use of colour and patterns and often takes cues from viral merchandise. Lately, that has meant selling bullet journals, hand fans and miniature washing machines for makeup sponges.

Every product the company sells is designed in-house, and new merchandise arrives constantly. About 300 new items are introduced each month, and many are not rereleased once they sell out because the brand has already moved onto the next crop of "it" things.

By comparison, Flying Tiger is "more aspirational than a chain like Dollarama," Saunders said.

While there is some overlap with Muji, which entered Canada in 2014 and now has eight stores, Saunders said the two brands have distinct styles.

"Flying Tiger tends to be quite maximalist with a focus on fun and colourful products, whereas Muji is minimalist and more sombre," he said.

Miniso and Daiso have even more overlap with Flying Tiger and therefore pose more direct competition, Saunders and Hutcheson agreed.

Miniso, a Chinese retailer that sells tchotchkes, beauty products and plush toys, has opened more than 100 stores since entering Canada in 2017.

Daiso, which has founded in Japan, has just four Canadian stores, all in B.C., but a global footprint of more than 5,000 locations.

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"Miniso might be a bit of a competitor. As they continue to open stores, will people understand the difference?" Hutcheson said. "I think that's maybe something that's a bit of a risk."

Daiso and Miniso did not respond to requests for comment. Dollarama declined to comment.

Mikkelsen is not worried about the established competitors. In fact, he welcomes the contest.

"We like a good competition and we're ready to take on what Canada brings," he said.

Canadian Press

Tara Deschamps is a business reporter with The Canadian Press

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