Recently American Girl announced that all of their Indigo Boutiques in Canada would be closing permanently. This announcement does not come as much of a surprise to Canadian collectors; the last several months have seen Boutique stock dwindling, with new products either very slow to arrive or failing to show up at all. But why did they close? And what do these closures mean for Canadian AG fans? I have a few thoughts and theories.
For starters, we all knew this was coming, even if we hoped it wouldn’t. American Girl sales have been poor for years, and the stores don’t seem to have been as profitable as they used to be. They’ve closed several AG Place locations in the US over the last few years, Covid dealing the final blow to these brick-and-mortar locations. Indigo Boutiques have been great for those of us who can’t get to any US locations, and especially for those that live close enough to go frequently. However, Indigo has always been a bit behind on new products, even online. It often takes longer for new items to stock, and takes even more time to stock individual stores.
In addition to this, the AG Boutiques take up a large amount of floorspace in a store. These dolls are large, and require a lot of room to display. Imagine how many books could fit in a single Boutique area. If the Boutiques aren’t generating enough revenue, it’s a lot of wasted space that could be used for other stock that does make money.
Finally, the Boutiques require more than just standard staff training. Most of the Canadian locations offered salon and ear piercing services for dolls, which means that whoever worked in the Boutiques needed to know how to do those things. Last summer I visited the AG Boutique in Toronto; and while the hair salon appeared to be mostly shut down, there was still a staff member there who could pierce my doll’s ears. This additional training takes time and resources, and spending that on something that has decreased in profitability… Not great for your business.
Please keep in mind that these are all just theories- neither AG nor Indigo have given reasons for the closures. These are just a few factors that I believe contributed to it.
So what does this mean for Canadian AG fans? Well, so far there haven’t been any announcements about what comes next. As of right now, there is still a good variety of AG stock on the Indigo website; I’m hoping they will continue to partner with AG in an online format, and we will still be able to buy items from a Canadian site.
If for some reason Indigo does not continue partnering with AG, I for one will be buying items much less frequently. With the cost of shipping to Canada on AG’s website, I usually only buy directly from them once or twice a year. I am hoping that they will finally allow Canadians to join the AG Rewards Program, but that may be wishful thinking on my part. As of right now, everything is a bit up in the air, and we’ll just have to wait and see.
What are your thoughts on the Indigo Boutique closures? Let me know how you feel!
So sorry to hear the American Girl stores are closing in Canada. 🙁 We’ve experienced the same in the U.S. with only a few remaining (9, I believe at this posting in 2023). Hoping they continue to sell online and at Costco stores during the holidays!
I’ve heard about a bunch of the US stores closing, and it’s so disappointing! The AG Place is such a magical experience; shopping online is more convenient, but can’t compare to picking things out in person. I hope they at least keep a few stores open! 🙁