Ermanno Scervino and Valentino mono-brand stores now open in Bucharest, Escada to follow suit
Italian fashion houses Ermanno Scervino and Valentino inaugurated last Friday their mono-brand boutiques in the Romanian capital of Bucharest. Both store are situated within the shopping gallery of the JW Marriott Hotel in Bucharest and are operated in franchising (different local partners). Escada is due to open by March 2012 in the same shopping gallery a mono-brand boutique, with the same partner it used to be present until 2008 when it closed down.
Oliver Petcu of CPP Luxury Industry Management Consultants Ltd reckons that while the three openings might have been well motivated by the very low rents it is highly unlikely they will make it to the end of 2012. ”Regardless of location, the Romanian market, where the Gucci and Emporio Armani mono-brand stores with high street location downtown and increased visibility make less than 1,4 million euros in turnover annually, the opening of Escada or Valentino in mono-brand representation makes absolutely no sense from a business perspective, rather serving as personal whims of socialite owners”. Escada used to be present until 2008 with three mono-brand stores (3 lines), each franchised by different partners.