Expansion- The Good, The Bad, and The Ugly by Aimee Hoefler

Posted to Apparel on 04/29/2013

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After recently reading in Women’s Wear Daily about Versace making plans for a second location in MIlan, I got thinking about expansion- the good, the bad and the ugly.

The Good

What I love about Versace vetting for a second location in Milan is that it makes sense. Versace is synonymous with Italy and of course, Milan is synonymous with fashion. So, this venture makes sense. In addition, considering Versace has its flagship on Via Montenapoleone in Milan, and its new location will be near Prada’s first flagship and a Louis Vuitton boutique, they are in good company.

The Bad

When times are good, they are good. Yet, even Starbucks had to close some of its locations, which shows that the bad can happen to any retailer. Now, does this mean the bad is enivitable? Well, to a degree one can argue the bad is bound to happen. Yet, why not do what you can to lessen the blow? In the case with Starbucks, did they really feel sustaining all the stores, in all the locations- many adjacent to one another- would really work long-term? Remember to think holistically and long-term.

The Ugly

Everyone may have a different image that comes to their mind for this one, but for me, it’s the vacant buildings or the lonely shopping malls. You can envision these once bustling areas filled with life but have evolved into empty spaces. Yes, this is a possibility of expansion, so it’s important to be strategic about where you build and be sure to look at the long-term view of not only your company, but the area you are looking to build in as well.