International apparel retailers hoping to win the favor of American shoppers are increasingly building out a fleet of stores in the U.S.
Japanese casual wear retailer Uniqlo said in April that it plans to open four locations in the U.S. this summer as part of its goal of having over 200 stores in North America by 2027. Spanish fashion retailer Mango is also focusing on a U.S. expansion, with plans to have 40 stores in the country by 2024. Value-based fashion and home goods retailer Primark, on the other hand, plans to open three new U.S. stores this summer.
It’s no surprise that apparel retailers abroad are interested in taking a slice out of one of the largest consumer markets. But while there are plenty of ways to enter the U.S. market, such as partnering with an established retailer, having a standalone physical store lets international players have control over their messaging and shopping experiences. However, these retailers are expanding their presence in the U.S. market during a highly competitive environment, where existing players are vying for shoppers who are pulling back their discretionary spending.
“You’ll set yourself apart in a better way if you have your own standalone stores rather than be represented as part of the assortment of a large department store,” said Dmitry Magas, senior manager at The Parker Avery Group. “At the same time, it is of course higher risk.”
Apart from real estate costs, apparel retailers must also grapple with ways to localize their assortment in a country as large as the U.S., Magas said. Uniqlo told Reuters that localizing its assortment in different parts of the country is “challenging” because of the range in climates and shopper experiences.
Loading…
Source: www.modernretail.co
ENB
Sandstone Group
