Reserved owner “strongly believes” in UK expansion despite failing to turn profit

Reserved holds back on UK expansion
Reserved operates more than 1,700 stores across 20 countries, but said its UK expansion was on hold.

Reserved has announced plans to continue expansion across the UK over the next year despite failing to turn a profit since its debut last year.

Speaking to the Sunday Telegraph, the owner of Reserved’s parent company LLP Marek Piechocki says he “strongly believes” the brand could open dozens of stores in the UK.

The Polish fashion retailer, which opened its first UK store in September last year in the former BHS Oxford Street building, has not yet made a profit in the country.

“For sure right now we have losses (in new the UK market), everybody does for their first couple of years,” Piechocki added.

“When H&M ­entered Germany, which is today their biggest market, they had losses for seven years.”

In October last year, the brand hired property advisors Harper Dennis Hobbs (HDH) to advise them on further expansion ambitions in the UK.

However, the troubles on the high street may have dampened its plans for rapid expansion, with Piechocki seemingly favouring a more cautious roll out.

“We want to be there, we are talking about some other locations in London but we just say ‘step by step, moderate, not too fast’”, he added.

“He who is fast arriving is fast leaving.”

Reserved currently trades from 450 stores across 20 countries, and has grown by around 20 per cent per year for the last five years, turning over £1.5 billion last year.

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