New Look international managing director Michael Lemner has told Retail Week that value fashion retailers continue to be well placed to expand overseas despite the global downturn.
He said: “I believe that even in difficult market situations, real value brands have a better possibility to enter new markets or develop themselves than other brands. When you enter you have to have a very clear proposition, the local knowledge and a real plan of how to do it.”
He added that difficult market conditions mean increased opportunities, as some retailers slow their expansion and rents become more favourable.
New Look is only at the start of its journey towards becoming “an international retailer”, according to Lemner.
The fashion retailer operates 17 stores in France and seven in Belgium. It has 16 stores in the Middle East – in partnership with Landmark Group boss Micky Jagtiani – and will launch stores in Russia as part of a franchise deal with Delta in spring. It will also test the Dutch market.
“Russia is our next big test market,” he said. “Maybe the whole of Eastern Europe is a big market for us in the future.”
It is also expanding its wholly owned French subsidiary Mim, which has 200 stores in France, and is likely to test it in Spain. He added that bringing Mim, which is price-driven value fashion, to the UK “could be an option” but has “not been worked on”.
According to Verdict Research’s UK Value Clothing Retailers 2008 report, international expansion offers growth opportunities for the value retailers as the UK reaches saturation.
Lemner said: “I think that the value sector will not decrease. In difficult times it is probably the price-driven message that will grow more quickly than fashion-driven and when times get better, then you can switch it.”
He added that difficult market conditions mean increased opportunities, as some retailers slow their expansion and rents become more favourable.
New Look is only at the start of its journey towards becoming “an international retailer”, according to Lemner.
The fashion retailer operates 17 stores in France and seven in Belgium. It has 16 stores in the Middle East – in partnership with Landmark Group boss Micky Jagtiani – and will launch stores in Russia as part of a franchise deal with Delta in spring. It will also test the Dutch market.
“Russia is our next big test market,” he said. “Maybe the whole of Eastern Europe is a big market for us in the future.”
It is also expanding its wholly owned French subsidiary Mim, which has 200 stores in France, and is likely to test it in Spain. He added that bringing Mim, which is price-driven value fashion, to the UK “could be an option” but has “not been worked on”.
According to Verdict Research’s UK Value Clothing Retailers 2008 report, international expansion offers growth opportunities for the value retailers as the UK reaches saturation.
Lemner said: “I think that the value sector will not decrease. In difficult times it is probably the price-driven message that will grow more quickly than fashion-driven and when times get better, then you can switch it.”
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