UK all the fashion for Spanish retailers
Posted by Lucky on Jan 25, 2010
Falling high street rentals and the low value of the pound are making Britain increasingly attractive to Spanish retailers, who are suffering a tough time in their home market, with consumer spending in freefall. Zara, Massimo Dutti, Desigual and Mango all have plans to expand this year in the UK.
Paola Cuneo, of Think London, a government body that encourages foreign companies to come to the capital, said that, apart from the financial incentives, “another reason is the number of tourists and shoppers who come here. Over Christmas, shoppers spent £1 billion in two weeks. It is attractive to lots of companies.”
Spain is facing its worst economic crisis for decades, according to the Spanish Official Credit Institute. In the January sales, Spanish shops were offering 50 per cent discounts to tempt shoppers.
Mango, the Barcelona-based fashion group, is planning more outlets in the UK this year. The chain opened 15 new “corners” in House of Fraser and Fenwick and two shops last year. It has 46 points of sale — 25 “corners” and 21 shops in all. “The UK is a market in which we are in a period of growth and there remain important opportunities for Mango,” a Mango spokesman said. “There is work to be done.”
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Zara, Mango’s great rival, has opened 65 stores in Britain since it arrived in 1998. Two thirds are outside London and the South East.
Inditex, the Spanish fashion group that owns Zara, has also expanded in Britain with its other brands — Pull and Bear, Massimo Dutti, Bershka and Zara Home.
Pablo Isa, its chief executive, said: “The UK is among Inditex’s most important world markets.”
Desigual, the Spanish fashion chain that targets the younger end of the market, also plans more outlets in Britain this year. It has more than 200 shops throughout the UK.
Other Spanish companies, including Tous, the jeweller and accessories company; Camper, the designer shoe retailer; and Neck and Neck, the children’s clothing company, are planning new stores.
Tous, whose public face is Kylie Minogue, plans to add to its two stores in London. Rosa Tous, director of institutional relations, said: “The British market is one of the most important internationally. It is essential to have a presence in London for any lifestyle brand.”
Even the Café y Te (Coffee and Tea) chain plans to open three branches in London. If it does, then the Spanish will be selling tea to the British.
source: http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article7000769.ece
