Burberry will be increasing their expenditure on stores in flagship cities globally, in London and in their emerging markets after it ended with a 40% increase in profits on full year. Asia’s stunning growth helped the fashion brand post a 27% increase in revenues to £1.5bn over the year end March 31st. Angela Ahrendts CEO said worldwide the luxury sector remains strong and estimates put double digit growth over the next few years.
More eye-catching was their plans to double their capital expenditure in this year to £200m from £108 the year before. The majority of the money will be used to refurbish existing stores and open new ones worldwide including doubling the space they have in London and spending capital of over £20m.
In addition to the Burberry Brit store opening in London’s Covent Garden this month, the brand also plans a huge flagship store on Regent Street by knocking out walls of the LK Bennett and Habitat shops it has acquired. There are currently seven Burberry Brit stores worldwide which emphasis’ it’s rich 155-year British heritage.
In the upcoming year Burberry plans to increase their average retail space by 12 to 13 percent. This will include between 20 and 25 new stores with emphasis towards Latin America, the Middle East and China. However a key for the store strategy will be in their flagship markets that include London, Milan, Paris, San Francisco, New York, Chicago, Hong Kong, Shanghai and Sao Paulo.