Has Burberry Got The Right US Strategy?

On Slate, Daniel Gross wonders whether Burberry has the right strategy for entering the US market. She thinks that the British fashion brand is opening in the wrong towns.

It makes sense for Burberry to chase growth in the United States. And it makes sense for the raincoat purveyor to chase the sun. Recent store openings have been in San Diego, San Antonio, and Naples, Fla. They might not need raincoats in Vegas or San Diego, but Burberry makes excellent margins on accessories and handbags, like this $1,680 Manor bag. Still, the company shouldn’t ignore the places that feature a crappy climate and lots of highly liquid consumers. Forget about Kansas and Indiana. How about Connecticut, the Hamptons, the Boston suburbs, Portland, Ore., or Seattle—all of which have yet to be graced with a Burberry store?

The British company and its American leader certainly are right that they should get away from the British chavs by heading to the American ‘burbs. I’m just not convinced they’re heading to the right ones.

Slate Mag