British retailers are flooding the U.S.
fashion market. Primark, Superdry, AllSaints and other top British brands
are opening U.S. stores.
But that love of fashion from across the pond appears to be one sided.
The United Kingdom has proven to be a very tough market for American fashion
companies to crack. The U.K.
is a really difficult market.
In general, U.S.
retailers do struggle with it.
American Eagle Outfitters is one of many U.S.
companies that have tried and failed to break into the U.K.
Despite being one of the most popular stores among U.S.
teenagers, the retailer exited the U.K.
market in 2017 amid intense competition.
The teen and young adult retailer opened two stores in London and one in
Kent in 2014.
Those stores didn't last long.
They were closed just three years later.
In a call with analysts, American Eagle said its business in Europe was
loss-making. American Eagle isn't alone.
Forever 21, J.Crew
and Banana Republic have also struggled to make it in the U.K.
Retail experts say a big part of a problem is that American retailers don't
do enough to tailor their offerings to U.K.
consumers. The market in the U.K.
is already overcrowded and U.S.
retailers products are often too expensive.
Despite its failed attempt to win over the U.K.,
American Eagle said it's trying again.
The company is licensing its brand in seven European countries, including
the U.K. American Eagle's strategy will be different this time.
But the big question now, will the brand actually resonate this time around?