Allen Edmonds to expand to China
US based footwear retailer Allen Edmonds has said it will begin selling shoes in China under a new licensing deal that could double the size of the company over the next 10 years.
The brand said it expects to open its first Allen Edmonds store in Shanghai in the second quarter of 2012. Under a licensing agreement, Shanghai-based firm Talent Creations will sell Allen Edmonds business and casual shoes in China, Hong Kong and Macau.
“There is a big trend going on in China toward higher-end apparel and major Western brands opening stores there. And those stores are doing very well,” said Paul Grangaard, Allen Edmonds’ chief executive.
“We’re planning in a three-year period to probably have six to 10 stores under the Allen Edmonds flag in China,” Mr Grangaard said. “But over a 10-year time period, which is the length of the license, we think it has the potential to even double the size of the company, which would obviously mean doubling our manufacturing over 10 years.”
Allen Edmonds currently employs almost 330 people on production lines at its Port Washington factory, and owns and operates 37 retail stores in the US.
“It's fantastic for us to continue to make shoes in the USA and now to export our American products to China,” Mr Grangaard said. “People around the world want great quality and respect American manufacturing. Our reputation and our longevity have been built on the fact that our shoes last for years.”
Allen Edmonds sales in the US for 2011 will be up almost 25% from 2010 after increasing 20% in 2010 from 2009, the company said.
“We are going to hit $100 million this year in sales, which will be a new record for us,” Mr Grangaard said.
Through the licensing agreement, Talent Creations will open the Allen Edmonds-branded stores. “We will sell the shoes to them at a wholesale price and then they’ll turn around and sell them at a retail price in China,” Mr Grangaard said.
