Apparel retailing can be a surprisingly cyclical business, and not
just because of economic cycles. Plenty of U.S. apparel companies,
ranging from Gap (GPS) to American Eagle (AEO) to Abercrombie & Fitch (ANF)
have enjoyed periods where they could do no wrong with merchandising or
marketing, only to see the crowds leave without warning and take their
sales with them. What's more, as a store's footprint grows, it becomes
increasingly difficult to maintain an impressive or satisfying level of
growth.
One solution that apparel companies have found is to go
global. Gap and Abercrombie & Fitch have taken their shows on the
road (with not a lot of success thus far), as have European retailers
like H&M (HNNMY.PK) and Inditex (IDEXY.PK). Looking to the other side of the globe, Japan's Fast Retailing (FRCOY.PK)
looks like a name to watch as the company looks to maintain
double-digit growth through expansion in Europe, the U.S., and Asia with
its proven strategy of savvy marketing, competitive pricing, and
high-quality unique merchandise.
Please continue here:
Living In The Fast (Retailing) Lane Comes At A Price
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