REAL ESTATE

Victoria’s Secret flagship to open in London

BY CSA STAFF

Columbus, Ohio Limited Brands said Tuesday it will open a 16,500-sq.-ft. Victoria’s Secret flagship store in London in 2012.

The new store will be located on the corner of New Bond Street and Brook Street, in London’s premier retail destination for luxury and fashion brands.

The retailer said it will provide additional information about the new flagship at its second-quarter earnings call on Aug. 19.

Last week, Limited Brands announced it had sold off the remaining holdings in its namesake Limited stores and now operates under the banners Victoria’s Secret, Pink, Bath & Body Works, La Senza, C.O. Bigelow, White Barn Candle Co. and Henri Bendel.

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REAL ESTATE

Study: Global expansion a must for retailers

BY CSA STAFF

Chicago A study released Monday by management consulting firm A.T. Kearney found that retailers should be increasingly focused on international expansion. According to the firm’s 9th annual Global Retail Development Index, a slowdown in the United States means that it is time to look elsewhere for growth.

“Retail executives have learned again that core markets like the United States and Europe are not the powerful engines of growth they would like,” said Hana Ben-Shabat, A.T. Kearney partner and co-leader of the study. “Reliance on developing countries for future growth is no longer a ‘nice-to-have,’ but a necessity. Establishing operations in a portfolio of countries both small and large offers the best path to global success for retailers.”

China returned to the top of the study as a priority expansion market for the first time since 2002. And while many retailers are focused on expansion to larger emerging markets like Brazil, India and China, the GRDI found smaller countries including Kuwait, Uruguay, Albania and Macedonia represent increasingly attractive expansion opportunities for international retail expansion.

The Top 10 countries in the 2010 GRDI, which ranked the retail expansion attractiveness of emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness, retail saturation levels and the difference between gross domestic product growth and retail growth, include China; Kuwait; India; Saudi Arabia; Brazil; Chile; United Arab Emirates; Uruguay; Peru; and Russia.

India, last year’s top GRDI destination, fell to third. Retail growth will continue in India, according to the study, but an influx of foreign players, limited and expensive desirable real estate and foreign investment restrictions have pushed the country’s retail market closer to maturity.

The study found that the Middle East and North Africa region exhibited the most exciting retail growth opportunities today for international retailers, with eight of its countries placing among the GRDI’s Top 21: Kuwait (2); Saudi Arabia (4); United Arab Emirates (7); Tunisia (11); Egypt (13); Morocco (15); Turkey (18); and Algeria (21).

“Local retailers have begun expanding within the region and international names are rushing in as well, many through partnerships using a franchise model due to government regulations,” said Mike Moriarty, A.T. Kearney partner and co-leader of GRDI. “Some local partners have also created retail business models by franchising numerous international brands across the region.”

Also resilient through the downturn is Latin America, which has four countries in the GRDI Top 10.

As part of this year’s GRDI, A.T. Kearney also surveyed 60 retail executives from around the world to identify emerging competitive trends and confirm the GRDI rankings.

China, India, Brazil and Russia remain the highest priority markets for retail expansion according to these executives, with nearly 80% of respondents citing one of these markets as part of their firms’ plans for short-term international growth.

Expansion is also on the agenda for many emerging market retailers. Ninety-two percent of respondents from emerging markets are looking to expand beyond their home market, with close to 30% of those saying a developed country is among their top three expansion targets.

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Starbucks opens in Hungary

BY CSA STAFF

New York City Starbucks Coffee has opened its first store in Hungary, the WestEnd Mall in Budapest.

AmRest Kavezo KFT, a joint-venture company between Starbucks Coffee International, a wholly owned subsidiary of Starbucks Coffee Co., and AmRest Sp. z o.o., a wholly owned subsidiary of AmRest Holdings S.E., will manage the daily operations.

Starbucks and AmRest have worked together since 2008 opening stores together in the Czech Republic and Poland. They now operate 16 stores across the three markets.

“We are excited to open our first store in Hungary and are committed to being part of the community, a good neighbor and a force for bringing our partners (employees), customers and their communities together,” said Buck Hendrix, president of Starbucks Europe, Middle East and Africa. “Our expansion into Hungary with our trusted partner AmRest is another positive step forward in growing our presence in markets that have a longstanding coffeehouse tradition throughout Central and Eastern Europe.”

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