HUGO BOSS to step up international expansion
HUGO BOSS CEO Claus-Dietrich Lahrs annouced this week plans to open 60 new stores every year in an effort to increase turnover. Over a third of these new openings will be in China. The company is also implementing a more agressive strategy for its e-commerce, targetting EUR 100 million in sales till 2015.
The annoucement comes as a surprise, especially considering HUGO BOSS has been among the brands which had closed several stores in China this year due to poor sales. Such aggressive expansion plan usually come with shortcomings such as developping oversized stores, which do not reflect the potential of the respective market or partnering with inexperienced franchisee partners. Less performing Hugo Boss operations in Central and Eastern Europe with Croatia (an oversized store) while in Ukraine and Romania inexperienced local franchisees were to be blamed for the closure of Hugo Boss stores.