Joe Fresh gains toehold in Asia
Canadian fashion retailer expanding to Philippines next year
TORONTO — Canadian fashion brand Joe Fresh is entering the Philippine retail scene next year, working with a local partner to open free-standing stores.
Joe Fresh owner Loblaw Cos. Ltd. is working with the SSI Group, a publicly traded specialty retailer in the Philippines, according to a disclosure Thursday to the Philippine Stock Exchange.
The Canadian brand is adding to the extensive line of international brands — such as H&M, Forever 21 and Payless ShoeSource — that have recently flooded the Philippines.
SSI Group’s wholly owned subsidiary, Stores Specialists Inc., entered into the franchise partnership with Loblaw. Stores Specialists is also the franchise holder for other international fashion brands, including Marks & Spencer, Anne Klein, Nine West and Bass and luxury brands such as Gucci and Prada.
“There is no better partner than SSI Group, Inc. to deliver our message of essential, modern style and exceptional value to this dynamic market,” Joe Fresh president Mario Grauso said in a statement Thursday.
Grauso said that Joe Fresh will be “an exciting and accessible new fashion choice for consumers in the Philippines.”
The company did not say how many stores were planned.
The expansion into the Philippines marks Joe Fresh’s second toehold in Asia. The retailer opened a store in South Korea last year and has said it aims to have 25 stores in Asia, the Middle East and Central America as part of its global expansion.
Joe Fresh started expanding globally in 2011 with the opening of stores in New York. However, Loblaw severed ties with J.C. Penney early this year as it said it wants to focus on smaller and standalone stores.
An industry analyst said it makes sense f or Joe Fresh to grow by expanding internationally.
“It’s the only way to expand in a market like this,” said Maureen Atkinson, senior partner of retail consultancy J.C. Williams Group. “This is a brand that has legs, it can go a lot of places that some luxury brands can’t go, but because of price points, it can actually go to a lot of different markets.”
Analysts also said Joe Fresh’s strategy to work with an international partner is a good fit.
“To go with a partner who’s there in the country with incountry knowledge is certainly the way to do that,” said Wendy Evans, founder, Evans & Co. Consultants. “SSI would be critical to the success of Joe Fresh.” Atkinson agreed. “It does make sense that if you’re going to a market like the Philippines to really make sure that you have this kind of expertise,” she said.
But Evans also said the brand’s success remains to be seen after the departure of founder and designer Joe Mimran last March.
“The biggest issue would be whether this brand will retain its success without Joe [Mimran] at the helm,” said Evans. “Certainly his designs and his leadership have been tremendous. Can they do without him? That’s the big question mark in my mind.”
“It does make sense that if you’re going to a market like the Philippines to really make sure that you have this kind of expertise.
MAUREEN ATKINSON
JC WILLIAMS GROUP