Women’s Wear Daily

25 June 2015

“It’s pretty hard to be profitable with just one store … you have the same administrative support if you have one or five stores,” Brian Ehrig, retail strategist at Kurt Salmon, explains to Women’s Wear Daily, when discussing how American designers, such as Coach, Michael Kors and Tory Burch, are establishing roots in Paris. Opening multiple locations in high-street and mall locations allows brands to test various locations and transfer unsold merchandise. Ehrig describes a “beachhead” approach, in which brands mount large stores in various European capitals or, alternatively, “coming into a marketplace, understanding and penetrating it deeply. That’s more of a recipe for commercial success and profitability,” he says. When reflecting on the expansion pressures that American brands face, Ehrig states, “It’s slow going in the United States. … There’s a lot more channel conflict,” which can make directly operated stores difficult to open.

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