American Eagle Decided To Withdraw From The UK Market

In the third year of entering the UK market, the United States clothing American eagle, the retailer, finally decided to "withdraw from the whole line". At present, the brand will be located in Bluewater, London Shopping Mall Three stores in Westfield and two in Westfield were closed.

In addition, the brand It also closed its UK website. After that, online users in the UK who want to buy American Eagle products can only do so through the brand's US portal.

(American Eagle UK station prompts to transfer to us station)

It is a fact that the UK fashion market is becoming more and more difficult. American eagle, like other peers, faces the impact of tax increases, cost increases and consumer spending cuts.

According to the world clothing, shoes and hats.com, store tweenty one, a British local fashion chain, was revealed to be in liquidation in early July, with 122 stores closed and more than 900 employees unemployed. Jaeger, a 133 year old British fashion brand, and brantano, a shoe retailer, also collapsed, and some stores in pound land, a chain of cheap goods, were forced to close. In addition, big retailers, including boots, John Lewis, Tesco and Sainsbury, are also laying off staff.

But back to American Eagle itself, its strategic tightening in some national markets may also come sooner or later.

According to public information, in the first quarter of 2017 as of April 29, American eagle's net income was $25.2 million, down 37.7%, store sales were down 1%, and sales of its underwear brand Aerie were down 25%. On the whole, its gross profit rate decreased by 2.7% to 36.5% year on year.

In addition to the revenue problem, American Eagle also has to face huge inventory pressure. According to Wolfe research, the inventory sales ratio of the brand has been expanded to 1136 points.

What's more, it's a real problem that American Eagle's teenage apparel market is on the decline. For example, another American youth clothing brand, American apparel, filed for bankruptcy protection twice in a year, and also withdrew from the Chinese market; another American youth clothing brand, urban outfitters, also announced that it would control the speed of opening physical stores and close some stores at the same time; In addition, teen clothing retailers such as rue 21 and wet seal have also filed for bankruptcy protection, and Abercrombie & Fitch is still looking for a sale.

In this regard, some analysts pointed out that on the one hand, the styles of these young clothing retailers are seriously homogenized, and their innovation level is low. Most brands focus on the positioning of "American leisure", and most of their products are T-shirt, jeans and sweater. Naturally, consumers will not "step into the same river forever".

In addition, the rise of fast fashion has accelerated the decline of these young clothing retailers. Fast fashion brands such as Zara, H & M, ASOs, etc. not only update SKU quickly, but also have more advantages in price.

So the space left for American Eagle is very limited. It was revealed that the lease of "kessd" brand in North America will be renewed for more than three years in the future.

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