US firms making it a tough Christmas for UK companies on the high street

With consumer confidence still having a tough time picking up, and Christmas just around the corner, the last thing that UK fashion retailers need is to get more competition in the market from international companies. However, it appears that this is exactly what is going to happen with many of the top US apparel retailers including J. Crew, Abercrombie & Fitch, and Gap Inc considering entering the UK market or if they are already there at least upping their presence.

These US companies are looking primarily at London as the place to start their international shopping expansion given the fact that it does not take too many stores in order to offer the UK national coverage. From here they can spring out into the market farther extending across other European markets.

In the UK alone there is generally a total of £63b spent on clothes making it the fifth largest fashion market, but due to its smaller size it is not often as sought after by American stores. The one exception is Gap which has opened a total of 140 stores in the UK and been in the UK market for the past two decades.

Morgan Stanley experts have compiled a list of ten US brands that are thinking about expanding within the UK that have over six thousand stores each in the US. These companies hope to tackle Britain and take a 6.5% share in the British fashion market. Some of these stores have already made their move with Victoria’s Secret opening UK stores in Leeds and Manchester and J. Crew working on building a London flagship store.