Continental Drift: UK Brands Expanding Globally
17th April 2024
Is it time to fly the nest?
Last year we analysed the location planning strategies of 6 retailers entering the UK; exploring where and how these retailers decided to locate their first store, and the retail location planning behind these choices. This year we decided to reverse this and explore the retail location planning of British brands which have recently opened stores outside of the UK.
Here at GMAP we often work with international brands who are looking at entering new markets, often with a strong network in one country or continent. Spreading your store network across the ocean is a big move, and one that can be much easier with our location planning intelligence, consultancy and products.
In this blog we have explored the ‘whys’ of different brand’s forays across the ocean.
Astrid and Miyu – From Newcastle to New York
Astrid and Miyu is a jewellery boutique brand founded in 2012 that has over 20 stores in the UK.
Last year they opened their first store outside of the UK, on Bleeker Street in New York City’s West Village neighbourhood, in the Nolita area of New York City. The Nolita area is well known for its designer jewellery store and unique clothing boutiques, making it a perfect place for Astrid and Miyu’s first American store. This agglomeration of jewellery stores such as Marlo Laz across the road, Versani and Ring Concierge, means that Astrid and Miyu has decided to locate itself with affinity stores – using the retail location planning approach of locating near store that attract similar consumers to increase brand awareness and to attract customers.
Additionally, Astrid and Miyu evidently prioritise social media trends, with their investment in permanent jewellery and bracelet welding, which has been extremely trendy online . Potentially accidentally, they are located a block away from Magnolia Bakery which has been famous for years due to its appearance in various shows, as well as its recent social media explosion due to how tasty their banana pudding is. (Years ago I tried the red-velvet cupcake which was divine – so I’m sure the banana pudding is just as good!) This location planning as well as their brand strategy seems to favour what is current and targets the young, social-media using geodemographics, as well as tourists in the highly visited trendy area of Nolita.
This being said, Astrid and Miyu’s move to NYC was measured. They hosted three pop-ups in the Nolita area undoubtedly to test whether it was the right fit in terms of customer accessibility, geodemographics, profitability and the right feel for them and their brand. Notably when discussing this technique, Connie Nam, the founder and CEO, mentioned having their “online and Instagram fans lining up to experience the brand first-hand” – highlighting the importance of social media for their retail location planning strategy.
We may soon be seeing stores in central Europe as Astrid and Miyu have hosted a number of pop-up stores in
Paris and
Berlin , possibly testing the waters for another store, yet again in a trendy and large city with a lot of tourism and social media traction. Can you guess where they might open a new store?
Seasalt - It’s better when you’re with a friend
Alternatively Seasalt has decided to venture out of the UK with a companion. The Falmouth- based British brand has decided to extend its longstanding partnership with Ballantynes, a New Zealand based retailer. Ballantynes became the first wholesale account for Seasalt in 2014 and more recently with the launch of the brand's first international concept store, which opened as a branded area within the Ballantynes Christchurch store in 2021. This partnership will see Ballantynes become the exclusive distributor for Seasalt across New Zealand, including opening a few Seasalt branded stores. The first store has opened in Milford Centre, Auckland, a coastal city.
This strategy is a cautious one after COVID-19 hit Seasalt, a company that lent mainly on its physical store sales, quite hard . This means that moving into a new market independently may have been too financially risky, and instead partnering with Ballantynes allows both companies to grow in aa safer, more manageable way. Additionally, partnering with a company who are based in, and experienced in that network, and know the retail hotspots, and the personalities and geodemographics of different consumers, gives Seasalt a best friend/ tour guide for their first venture abroad. Ballantynes work with various international suppliers, meaning that this partnership is not monogamous.
In years to come will Seasalt become independent overseas, or will they continue to partner with experts in the networks they want to enter?
Hotel Chocolat - If at first you don’t succeed…
The London born brand Hotel Chocolat have had a tumultuous few years struggling with entering new markets and surviving the retail fog of COVID-19. In 2022 Hotel Chocolat closed its five stores in the USA, retreating back to online only sales. Additionally they had a second blow when their joint venture in Japan with Chris Horobin, the former boss of QVC Japan fell apart after its first deal, leading to a loss of over £21 million.
After these setbacks Hotel Chocolat have decided to sell their business to Mars for £534 million. This will allow Hotel Chocolat, a British brand, to enter the US market through Mars, an American brand. As said best by Angus Thirlwell, Hotel Chocolat CEO, by partnering with Mars they “can grow their international presence much more quickly using their skills, expertise and capabilities ”. Mr Thirlwell discussed how he believes their brand resonates with consumers abroad, but that the challenge of operational supply chains has meant this resonation was dimmed. Hopefully the combination of Mars’ understanding not only of American consumers but also American supply chains, will meant that the Hotel Chocolat brand and its resonation with consumers will be successful.
Similarly, Hotel Chocolat announced a joint venture in 2023 with Tokyo’s Eat Creator Corporation to set up 21 Hotel Chocolat stores in Japan. This mirrors the story of Hotel Chocolat – second times' a charm!
The story of Hotel Chocolat over the past few years highlights important factors in retail location planning, which is that social media presence and geodemographics, although extremely important are not enough on their own. At GMAP we explore the practicalities of entering new networks with you – the supply chains, the access for vehicles, and the different avenues to opening a store.
Our Thoughts
We pulled together a map in
MVPLUS, our self-serve mapping software, of these new stores outside of the UK. This visual really shows how far these brands have moved and therefore what a leap moving to a new market is. With location planning experts like GMAP, this move can be done with confidence.
Where will these three UK brands be in few years down the line? Will Astrid and Miyu continue to enter new markets independently, and will they continue to target social media users and younger consumers through pop-ups and trendy urban locations? Will Seasalt continue their expansion in Oceania hand in hand with Ballantynes, or will their next new market entry be a solo mission? Will Hotel Chocolat recover from their various losses and enter the USA well with Mars, and will their Asian venture be successful despite the different culture?
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