Phase Eight to open in Australia and South East Asia to push overseas growth

The fashion retailer revealed that it wants to have 120 overseas stores and concessions by the end of 2014. Phase Eight was already targeting 50 overseas store and concession openings by the end of 2013. It operates 28 currently, which currently account for 10% of its total sales.

Phase Eight finance director Ben Barnett told Retail Week: “Whilst the UK and Ireland continue to grow, we are keen to take the brand into new markets and develop our overseas reach. We expect to have 25% of our sales in international markets by Autumn/Winter 2014.”

Phase Eight is currently operating in Germany, Switzerland, Sweden and the Middle East where it wants to grow its presence.

Barnett said the retailer is looking at opening in additional European markets including Scandinavia, as well as in Australia and South East Asia after its products were well-received by overseas shoppers.

Barnett said that overall Phase Eight is achieving strong sales densities across its international outlets.

“Customers overseas tell our staff that we have a real point of difference to their local offering, saying it offers a broad collection of clothing and accessories that is feminine, stylish and contemporary, with high quality and fabrics, but with a fit that is still comfortable and appropriate for their lifestyle,” Barnett said.

He added that Phase Eight is taking inspiration from the international growth strategy of German clothing retailer Gerry Weber, which has grown internationally through both stand-alone shops and department store concessions.

So far all international stores have been opened through joint venture partnerships with local retailers and investors. But Barnett revealed the retailer is in discussions regarding its first franchise store.

Phase Eight last month reported pre-tax profit up 11.9% to £19.8m in the year to February 2. Sales increased 11.7% to £121.1m.

Barnett said since year-end sales have surged more than 10% year-on-year. Online sales account for more than 15% of Phase Eight’s total sales currently, supported by the retailer’s introduction of in store iPads and the launch of its mobile site.