Following the recent announcement that Tommy Hilfiger will close its two US full-price stores in New York and Miami, the company, part of PVH Corp, has explained some of its next global expansion plans.
Apparently, Tommy Hilfiger has decided to close only the two US stores–nothing will change at the European ones–as it aims to focus on new retail experiences and partnerships.
Daniel Grieder, CEO, Tommy Hilfiger Global and PVH Europe said: “In line with our strategic objective to further reach and engage with digitally-savvy North American consumers, we will focus on next generation retail experiences and partnerships to stay ahead of today’s continuously changing shopping habits and preferences. This means we are reshaping our retail landscape in North America, closing the New York City Fifth Avenue TH store and the TH store on Collins Avenue in Miami, Florida. Leveraging our store-of-the-future concepts rolled out in the global retail landscape, going forward, North America will be the lighthouse region to develop and test new modular, digitally infused retail concepts. We continue to invest in tommy.com and the ongoing expansion of strong wholesale distribution partners that keep consumers at the heart of our brand.”
A further global expansion is expected in the near future after the recent definitive agreement between PVH Corp and Dickson Concepts Limited to reacquire the license for the TH brand in Central and South East Asia, which includes Hong Kong, Macau, Taiwan, Singapore and Malaysia. The transaction is expected to close in the second quarter of 2019 and is aligned with PVH’s strategy of gaining more direct control over its brands, including the acquisition of licensed businesses.
Following this reacquisition, the US designer brand aims to compact its activities in the whole Asian area as explained by Grieder: “We are looking forward to executing a more fully integrated strategy for the Greater China market in coordination with our directly operated mainland China business. This transaction should allow us to further realize the growth opportunities that exist for the TH brand by enabling the introduction of a wider range of product lines, and offering consumers a more immersive and elevated brand experience. Building on our strong existing regional foundation, we plan to accelerate the growth of the TH business and invest further in driving the expansion of the brand.”
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