Marks & Spencer launches first franchise store in Ukraine
Marks & Spencer, one of the leaders in retail trade in the UK, opened its first shop in Ukraine late this May.
Opening of the new clothing store, located at the Komod shopping mall on the left bank of the Dnipro River, marks the continued march of Western retailers onto the promising Ukrainian market, where rising salaries and purchasing power have driven up domestic consumption steadily for several years now.
The Ukraine branch of M&S was opened as a franchise by Turkey’s FIBA Group, which owns the rights to M&S shops in Turkey, Russia and Ukraine. FIBA Group has opened eight M&S shops in Russia since 2005 on a franchise basis.
The company could have similar bold expansion plans for Ukraine, but officials did not respond to Post inquiries regarding such plans.
More than 15 million people in the whole world visit M&S shops every week. The Marks & Spencer chain includes 530 shops in the UK. The company’s 220 shops in 35 countries operate on a franchise basis.
The company’s shops located in foreign countries offer consumers stylish high-quality clothes, home products and high-quality food products. For the time being, Marks & Spencer in Ukraine will offer clothes, underwear, lingerie and accessories. Marks & Spencer goods are oriented mostly toward middle-class consumers.
Andriy Krivonos, head of the Ukrainian Franchise Association, said that the “launch of a new chain would not create a breakthrough on the market.” Nevertheless, the new chain will, like other retailers to follow, add something new to this fast-growing market, Krivonos added.
According to Krivonos, Marks & Spencer in Ukraine does not have any competitors in terms of shop format, since “no other chain sells clothes, underwear, lingerie and accessories under one brand.
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