Loblaws Inc., the Canadian groceries supergiant, has recently opened its first American store of its Joe Fresh line in the most unlikely of commercial avenues: Madison Avenue! Opening its first store in the middle of New York City seems like an extreme gamble, especially in hyper-competitive and uber-expensive Manhattan.
Spanish and Japanese clothiers Zara and Uniqlo are renovating and expanding just a few blocks up from the new Joe Fresh store, and H&M is a fixture on Madison Avenue. Joe Fresh’s target market is already saturated with competitors who have a leg-up in terms of brand recognition. However, Loblaws is counting on Joe Fresh’s low prices and smart designs to make its American foray a success.
Fashion is a fickle business and trends change in the blink of an eye. Like all risky moves, this venture has the possibility to either become a resounding success, or a complete failure. Personally, as a student on a small budget and a penchant for well-made clothing, I am a big fan of Joe Fresh and I think that people who shop at Zara and H&M will have no problem gravitating towards Joe Fresh once they see its designs and prices.
Great post! I talked about this in my blog post as well. It can be found here: https://blogs.ubc.ca/priscillaw/2011/11/06/fresh-in-the-big-apple/