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The US Retail Industry Is Experiencing A Wave Of Closing Stores, While European Fast Fashion Has Opened More
- Nov 01, 2018 -

Credit Suisse estimates that 8600 retail stores will be closed in the US this year, which has exceeded the total number of closed stores during the 2008 financial crisis.

But what's interesting is that when American retailers are withdrawing in large numbers, European retailers are rushing in.

According to the Wall Street Journal, as of February 28 this year, H&M has opened 16 new stores in the United States. The total number of stores in the United States is 484. "We have not yet entered all the malls we want to enter," H&M Investment Relations spokesperson Nils Vinge said, "There are still many opportunities in physical stores."

H&M's competitor ZARA is also continuing to expand, and in 2016 a total of 10 new stores opened in the United States. As of January 31 this year, the total number of stores in the United States was 78. ZARA's expansion has covered the world. At the beginning of this year, ZARR announced that it will open 280 new stores worldwide in one year, which is equivalent to the total expansion in 2016. At the same time, ZARA will enter new markets, such as five countries including New Zealand and Vietnam.

ZARA's expansion also includes the diversification of corporate brands. In order to allow consumers to have more choices and meet the needs of different consumers, they will continue to develop their Bershka and Pull&Bear brands.

The US retail market is much bleak. So far, 19 retailers have declared bankruptcy this year, including RadioShack, Payless, etc., which is more than last year's total (18).

But European retailers still don't want to let go of this huge market. According to Euromonitor Research, the US apparel market is a $ 749 billion market and the largest apparel market in the world.

Last week, the US sports retailer Eastern Outfitters went bankrupt, and Sports Direct, the UK's largest sportswear and equipment chain, bought the company, which they believe will "help them gain a foothold in physical stores in the United States."

Irish discount clothing brand Primark entered the United States in 2015 and will open its eighth store in June this year and will expand its store size by 20%. Princess Kate's favorite brand Reiss entered the US market in 2005 and currently only opened eight stores in New York and Boston. But the recent expansion has suddenly accelerated, opening two new stores in New York last year and opening a store in Miami earlier this year. The UK's Superdry brand currently has 20 stores and plans to open five new stores each summer and fall.

The European brands are similar in their enthusiasm, just as the head of H&M said, "Our people in the same industry are closing stores and leaving, which of course gives us many opportunities."

"European retailers think it's a good opportunity now, they can expand quickly, which was not possible before," said Brandon Famous, manager of CBRE, a US real estate consultant. But the problem is that small international brands can't enjoy this treatment. These small brands usually only choose excellent locations, such as shopping malls with high traffic, but today these businesses are doing well.