Where to Start
Expanding a retail brand internationally is both a tremendous opportunity and a daunting challenge. If done correctly, moving beyond borders can create competitive advantages, economies of scale, new customers, and increased brand awareness. Unfortunately, the endeavour can be akin to a coin flip. The failure rate for international expansion in retail can be high, often estimated between 40% to 50%, as brands navigate the complexities of new markets.
In order to stack the odds in your favour, there are three crucial decisions that must be made correctly. They are not just about logistics, timing and location, but about understanding what makes a new market tick. The choices a brand makes can determine whether they thrive or flounder on the global stage.
On one hand, the cost of a failure can be huge, risking substantial financial losses, damaged brand reputation, and even a retreat from once-promising markets. On the other hand, if these three decisions are approached correctly and carefully, the potential reward of a successful global expansion far outweighs these risks, offering huge benefits to the brand as a whole.
So what are these essential decision points and how have some of today's most successful global brands handled them? We asked Helena Sampson (SVP International, Malin+Goetz) and Tabria Lenard (International Strategy & Operations, Reformation), to share some insightful advice from their collective 50 years of experience in global growth and international expansion.
Relevance vs. Control
Before a brand even considers going global, it must have an unshakable sense of its identity. This clarity is the foundation of everything else. A brand is more than just its products; it is the emotional connection it forms with consumers, the story it tells, and the values it embodies.
It’s important to recognize that this clarity is not the same as rigid control. Some brands struggle with the tension between maintaining a consistent global message and adapting to local nuances. A controlling approach often leads to a one-size-fits-all strategy, ignoring the unique needs and cultural contexts of new markets. This can result in a disconnect between the brand and local consumers, causing missed opportunities and, in some cases, outright rejection. This is where many brands stumble; they assume that what worked in their home market will work everywhere else. But success in international expansion comes from embracing and celebrating these differences, not ignoring them.
“A lot of things that influence our ability to win in the USA also resonate in these [UK and Canada] markets.
So, I think the fact that we’re an American brand and these are English-speaking markets, we’re able to win in a lot of the ways because our marketing translates”
Tabria Lenard
International Strategy & Operations, Reformation
However, what resonates with customers in New York might not hit home in Paris, let alone in Tokyo or Mumbai. The key to thriving in these diverse environments is maintaining brand relevance, not necessarily complete control. To succeed, brands must have absolute clarity on who they are and what they stand for. This clarity serves as an anchor - a guiding force that ensures the brand’s core identity remains intact, even as the required local adaptations are made.
Brands like Malin+Goetz have found success by focusing on simplicity and core brand offerings. They prioritise hero products that are easy to scale and they adapt operations quickly to align with market demands while retaining a strong core brand identity. Malin+Goetz is not exclusive or overly complicated, it is a brand for people leading busy metropolitan lives and the simplicity and ease that their brand represents is not limited to a certain demographic, it doesn’t follow outdated beauty and skincare standards, it remains accessible and effective. Simplicity is a core tenant in their product design, their retail spaces, and their brand identity. Communicating these pillars of their brand is so much easier given the consistency and clarity that comes with it. In a world where consumers connect with brands that reflect their values, clarity in what a brand stands for - and what it doesn’t - is crucial. Without this foundation, international expansion is akin to building on quicksand.
Malin+Goetz store in Brooklyn, designed by A+I
A successful approach to finding a balance between global consistency and local customization can be seen in Lululemon, for example. While the brand's global identity is centred around mindfulness, wellness, and community, its local strategy is anything but generic. Lululemon uses hyper-local ambassadors and hosts community events tailored to the interests of each market, their ability to integrate themselves into local wellness cultures has helped it build strong, community-driven experiences that extend far beyond just selling activewear. This allows the brand to maintain its global ethos while building deep connections with local consumers. It’s a strategy that emphasizes relevance and authenticity over rigid control.
“I think it is so crucially important when both scaling and exporting a brand to be really crystal clear about what you represent, who you are, what the brand is.
The further away you get from the home market, from the source, the more diluted the messaging becomes.”
Helena Sampson
SVP International, Malin+Goetz
Brands that thrive globally are those that actively seek to understand their new customers through research, surveys, and feedback. For instance, Reformation uses in-store feedback, social media engagement and on-site reviews to continuously adapt to the attitudes of their customers in the UK market as they expand on this side of the Atlantic. You can’t assume you know your market; brands must listen to local voices and evolve accordingly. This commitment to understanding is not just about cultural differences but also about economic realities, shopping behaviours, and even the way customers engage with the brand online and in-store. These changes do not have to rewrite the identity of the brand, but they should alter how that identity is shaped to fit into a new geography and to serve a new customer base.
Reformation store in London, designed by Reformation
This ability to adapt without losing sight of the brand’s essence is what separates the global players who thrive from those who merely survive. It requires a willingness to let go of some control while being laser-focused on what makes the brand unique and how that uniqueness can translate into different cultural contexts. By focusing on relevance over rigid control, brands can keep their story strong and vibrant, no matter how far they are from home.
The Intended Outcome
When entering new markets, one of the most critical questions a retailer must ask is: What is the intended outcome? There is nothing more dangerous than opening a store in a new market without having a clear intention and goal for that store. At home, retailers are often experts in measuring the contribution of each store, tracking metrics like foot traffic, sales per square foot, and profitability. But when expanding into international markets, the game changes. Success may not be defined by immediate sales figures. Instead, it often becomes a matter of customer acquisition and brand presence. Understanding this difference is crucial, as it requires a fundamental shift in mindset.
If entering a new market is essentially about getting new customers to experience the brand, rather than just generating revenue from day one, then retailers need to think of their stores as part of a broader marketing strategy rather than just as sales outlets. Simply opening a physical location on a busy high street in a new market is not only improving brand awareness in this new market, it is also creating a Halo Effect that increases both on and offline sales revenue.
“For example, Malin and Goetz, one of the 1st things they did was to get very involved with amenities, and a lot of our customers have discovered Malin and Goetz through lifestyle amenities and hotels and on airlines.”
Helena Sampson
SVP International, Malin+Goetz
In this context, a store is not just a place to transact; it is a brand showcase, an opportunity to create memorable experiences that resonate with new audiences and likely the core experience that customers will remember and share with others. It’s about planting a flag in a new geography, building brand awareness, and starting conversations that will later translate into loyalty and revenue. For long-term success, brands must cultivate local interest and engagement.
“We definitely consider retail as one of the ways that we kind of grow organic interest in the brand and introduce ourselves to people in a new market [...] in ways that maybe traditional advertising cannot.”
Tabria Lenard
International Strategy & Operations, Reformation
By treating a new market as a customer acquisition channel, brands can measure success beyond immediate sales. Metrics like brand recognition, social media engagement, and customer sign-ups become just as important as traditional sales figures. This approach requires patience and a long-term perspective - focusing on laying a foundation rather than expecting instant returns. It’s a mindset shift, but one that is necessary for building a sustainable presence in new and unfamiliar markets. And for retailers who get it right, the investment in building these relationships pays off in brand loyalty and long-term growth.
Going “All-In”
Expanding into international markets is not for the faint-hearted. The complexities are vast, spanning financial, operational, and legal hurdles that can make or break a brand’s success. To overcome these challenges, a retailer needs to be willing to go “all-in” - not necessarily through massive investment from the outset, but with a commitment to speed, agility, and local expertise. This approach allows brands to adapt quickly, find their footing in new markets, and address the inevitable curveballs that come with global growth.
Financially, the costs of international expansion can be daunting, establishing new supply chains to managing fluctuating exchange rates can be costly. Operationally, new markets bring new logistical headaches, from navigating unfamiliar retail regulations to ensuring a consistent customer experience across borders. Legal complexities add further challenges, as compliance with local labour laws, tax codes, and trade restrictions can require expert guidance and significant resources. These factors demand careful planning, but even the best-laid plans need the ability to adapt quickly.
“Another thing is, of course, taking into account financial variables of markets. The smaller companies I’ve worked for, it’s not part of the DNA to work out most margins around VAT.
Then, of course, you’ve got all the cost of import tariffs, and then on top of that you’ve got the local differences in pricing”
Helena Sampson
SVP International, Malin+Goetz
This is where speed and agility become crucial. Brands that can pivot between different store formats - such as launching with pop-up shops or experiential spaces before committing to permanent locations - can adjust their strategy based on local feedback. For example, pop-ups allow a brand to create buzz, test the market, and refine their offering without the long-term commitment of a full store. If the reception is positive, the transition to a permanent space becomes far less risky. If not, the brand has the flexibility to change direction and try a different approach without being locked into an expensive lease.
“We started with wholesale, we partnered with Browns in 2018, and then shortly after, in 2019, we joined Neta Porter and Selfridges, and then had ambitions for our 1st store in Notting Hill in London.
So it really began with E-commerce in 2014, kicked off with wholesale in 2018 and then retail in 2019.”
Tabria Lenard
International Strategy & Operations, Reformation
The global marketplace is dynamic and unpredictable. Whether it’s navigating regulatory changes, managing supply chain disruptions, or responding to economic shifts, brands must be prepared to pivot at a moment’s notice. Agility, therefore, is not just an advantage—it’s a necessity.
“I often liken it to a game of chess. You know what the end game looks like, but if any of the steps on the way aren’t right, then you need to be pretty good at adjusting course if it’s wrong.”
Helena Sampson
SVP International, Malin+Goetz
However, agility alone is not enough. Navigating the complexities of a new market also requires deep local knowledge - an understanding that only those on the ground can provide. Successful retailers often build local teams, which can be expensive, or alternatively form partnerships with experts who know the market’s nuances. These local allies can provide insight into consumer behaviour, help navigate regulatory hurdles and identify the best retail locations. They are invaluable when it comes to tailoring marketing campaigns and creating experiences that resonate with the local audience. This local expertise enables brands to avoid costly missteps and ensure that their presence feels authentic, not just imported.
Here at Agile Retail, we worked with MPX International, one of Canada’s largest cannabis companies, to create Beleaf, a retail experience-based store for the UK market to bring greater understanding and effective commercialisation of CBD, one of the fastest-growing consumer segments in the world. Defining and optimising the retail strategy, we created immersive and consultative retail stores that responded to the local area and local consumers.
Beleaf store in London, designed and run by Agile Retail
Working with local partners is not just about operational ease; it’s about credibility and approach. A global brand may have name recognition, but partnering with local entities provides social proof, local knowledge, and on-the-ground adaptability. The lesson here is simple: no brand succeeds globally without local expertise.
Going “all-in” doesn’t mean charging blindly into a new market - it means committing to a thoughtful, adaptable approach that acknowledges the complexities while remaining ready to seize opportunities. By blending agility with the insights of local experts, retailers can overcome the inherent challenges of global expansion and establish a presence that is both impactful and sustainable. It’s a demanding path, but those willing to embrace the complexities find themselves well-positioned for long-term success.
Conclusion: A Delicate Balance Worth Mastering
International expansion in retail is not a simple or straightforward journey. It’s a delicate balance between maintaining brand identity and adapting to new markets, between aiming for immediate sales and building long-term customer relationships, and between moving quickly and taking the time to understand local nuances. The stakes are high, with significant risks of financial losses, logistical missteps, and cultural disconnects. Yet, for those who navigate this complexity thoughtfully, the potential rewards are even greater - new customers, expanded brand presence, and growth opportunities that can transform a retailer from a local success story into a worldwide retailer.
The key lies in asking the right questions and being prepared to adjust course based on the answers. Brands that enter new markets with a clear sense of purpose, a flexible approach to retail formats, and a willingness to work with local experts stand the best chance of success. It’s not about having all the answers from the outset; it’s about knowing which questions to prioritize and having the agility to adapt as the landscape shifts. In the end, international expansion is less about the act of opening stores in new countries and more about truly connecting with new consumers.
For those retailers willing to commit to the long game, international growth can be a transformative experience. It requires investment - both in time and resources - but the payoff can be extraordinary. Success on the global stage is never guaranteed, but with the right strategy, it can turn ambitious brands into icons, defining them not just by their products but by their ability to build lasting relationships across borders. As the world becomes increasingly interconnected, this ability to expand thoughtfully and authentically is more valuable than ever. For those ready to take on the challenge, breaking retail borders is not just a risk—it’s a powerful opportunity to shape the future.
For more information on the Retail Book Club and their upcoming events, visit www.retailbookclub.com.
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