Speculation is building that well-known US retailers Abercrombie & Fitch and Gap are coming to Australia, with reports suggesting the iconic chains have appointed agents to start the search for potential sites.
A report in the Australian Financial Review claims the two retail chains are looking to expand into Australia as the economy recovers. However, no sources have been named and both companies have refused to comment.
Kevin Moore, chief executive of retail consultancy Crossmark and a SmartCompany blogger, says Australia is a prime target for overseas retailers who are being battered in the US and European market by the prolonged downturn. By contrast, Australia's economy remains strong.
Moore also says overseas chains that do target Australia typically find success, with Australia ranking in the top 10 revenue generators and the top five profit generating territories for many multinational retailers.
"There is no doubt Australia retailing is a growing market," Moore says.
Moore can see a place for Abercrombie & Fitch in Australia but is particularly enthusiastic about the prospects of Gap, which is already a well-known brand among Australian fashion consumers.
"I think there's absolutely a place for Gap. It's come into Australia from people shopping on the West Coast in the US, shopping in Asia, shopping in Europe and increasingly, people shopping online."
