Abercrombie outlines European expansion plans

At an investor conference hosted by Piper Jaffray last week, Abercrombie & Fitch chief financial officer Michael Kramer said there is potential to roll out up to 500 Hollister stores across Europe, but he declined to provide a time frame.

Kramer said that the retailer is considering two locations on London’s Regent Street for Hollister’s first UK store, but that it will concentrate on finding shopping centre locations for the brand on the continent.

Despite Abercrombie & Fitch’s debut London store generating higher sales and profits than its flagship store on New York’s Fifth Avenue, Kramer said that there are no plans for aggressive expansion of Abercrombie & Fitch in the UK. “We are not planning any mall-based Abercrombie & Fitch stores, because we want to maintain its premium brand status across Europe,” he said.

Abercrombie & Fitch is, however, expected to open larger stores in UK cities. Kramer admitted that the volatile nature of the UK commercial property market meant that securing the ideal location was not always straightforward.

Chief executive Mike Jeffries was in the UK last week, adding to speculation that the retailer is seeking locations for both brands.

The US fashion group has four retail chains: Abercrombie & Fitch, Hollister, Ruehl and Abercrombie.

In January, a fifth brand will be launched, with seven US stores due to open by spring. The retailer said that the brand, speculated to be a lingerie offering, had been in development for two years and up to US$15 million (£7.3 million) will be invested in it this year.

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