Habitat has pushed the button on international expansion plans and will launch stores in the Middle East and Russia next year.
The retailer, which is also in talks with local partners about opening stores in China and India, wants to ramp up its international franchise operations to equal the volumes generated by its standalone operations within three to five years.
Habitat has 80 directly operated stores in four countries – the UK, Spain, France and Germany. It operates about 50 franchise stores in 16 other countries.
Habitat’s expansion into Russia and the Middle East, with as yet unnamed partners, marks an increased momentum for the retailer, which has suffered from widening losses in recent years.
International development manager Mauricio Solodujin said: “Most of the business was based on retailing, but going forwards the focus will be more on franchising.”
He said Habitat’s expansion had “not been so aggressive” but it would now focus on emerging markets where brand awareness and consumer wealth had grown.
In contrast to its existing franchise stores, Habitat will roll out its full format stores, which average 16,145 sq ft and follow the design of its Finchley Road store in north London, which is performing ahead of expectations.
The retailer is seeking established overseas partners to roll out the brand, beginning with capital cities in each of the countries. “It is a long-term commitment with partners with established brands and financial models and brand awareness,” said Solodujin.
Habitat will open stores in Moscow and St Petersburg by September and is also focusing on Dubai and the Gulf region. It wants 10 to 12 stores in Russia and the same number in the Middle East within five years.
Solodujin added that Brazil, Mexico and Chile also present opportunities in the long term.
Habitat has 80 directly operated stores in four countries – the UK, Spain, France and Germany. It operates about 50 franchise stores in 16 other countries.
Habitat’s expansion into Russia and the Middle East, with as yet unnamed partners, marks an increased momentum for the retailer, which has suffered from widening losses in recent years.
International development manager Mauricio Solodujin said: “Most of the business was based on retailing, but going forwards the focus will be more on franchising.”
He said Habitat’s expansion had “not been so aggressive” but it would now focus on emerging markets where brand awareness and consumer wealth had grown.
In contrast to its existing franchise stores, Habitat will roll out its full format stores, which average 16,145 sq ft and follow the design of its Finchley Road store in north London, which is performing ahead of expectations.
The retailer is seeking established overseas partners to roll out the brand, beginning with capital cities in each of the countries. “It is a long-term commitment with partners with established brands and financial models and brand awareness,” said Solodujin.
Habitat will open stores in Moscow and St Petersburg by September and is also focusing on Dubai and the Gulf region. It wants 10 to 12 stores in Russia and the same number in the Middle East within five years.
Solodujin added that Brazil, Mexico and Chile also present opportunities in the long term.
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