December 2004  Email this  Print this
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SPENDING
Fashion for a Song
by Melynda Dovel Wilcox
Not all of the hottest European imports have four wheels. A growing number of European-based retailers, particularly discounters, are setting up shop in the U.S. Aldi, a German discount grocery chain with 700 stores in 26 states, carries only its own private-label products. "It's a valuable alternative to Wal-Mart," says Wendy Liebmann of WSL Strategic Retail. "It's smaller and focused on its own brand, so it's less tempting for customers to overspend." Lidl, a German discount department store that sells household goods, clothing and groceries, also has its eye on the U.S. market.
Zara, a Spanish fashion retailer, and H&M, a Scandinavian clothing chain, appeal to youthful consumers with competitive prices and hip styles that are fresh off the runway. Zara, admired for its fashions inspired by Prada and other couture designers, just opened a fifth store in New York City, its 15th in the U.S. H&M has 76 U.S. stores.
"We tend to think of ourselves as exporting our retail experience, with the Gap and Nike, for instance," says Liebmann. "But the reality is that often it's the other way around." |
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