Despite demand for high-end apparel has collapsed since the coronavirus struck, Fred Segal continues with its expansion plans.
The famed West Hollywood boutique will open a flagship in Seoul as part of a plan to add as many as 15 new locations in the world’s major urban centres. The ambitious expansion — executives say they’re eyeing stores in UAE and Japan, among other places — is a bet that the luxury market slump will be short-lived.
“Retail will inherently come back,” said CEO Allison Samek. “Whether it is six months or 12 months or 2 years, this too shall pass.”
The optimism contrasts with a retail industry that is laying off workers, shuttering stores and broadly retrenching amid a sharp decline in sales. Management said any market-entry decisions made today would take about 18 months to bring to fruition, giving the market time to stabilise.
The Seoul location will open in early 2021 within the Galleria Luxury Hall, an upscale shopping centre and department store owned by Hanwha Group. Executives are considering additional locations in countries including Argentina, Mexico and Australia.
