VF Corp. is restructuring its distribution strategy to tap into underexploited markets, particularly in Southeast Asia, the Middle East, and North Africa. Expanding its existing partnership with retail conglomerate GMG, VF Corp. plans to open 300 stores across these regions for brands like Vans, The North Face and Timberland within the next five years, a significant increase from the current 90 stores.
Martino Scabbia Guerrini, VF’s Executive Vice President, emphasized the importance of this decision, stating: “Against the backdrop of global markets moving at different speeds, it’s important to make choices.” He sees this move as accelerating growth and returning to international expansion and highlighted the emerging middle class and the passion for sports and outdoor activities in these regions as key factors driving the decision. There’s also a need for a simpler operational approach, focusing on the company’s global commercial prowess, he said.
Mohammad A. Baker, CEO of GMG, expressed excitement about the strategic expansion, citing the growing potential of Southeast Asia for VF Corp.’s portfolio.
The rollout will begin in Saudi Arabia, followed by Southeast Asia and North Africa, aligning with the region’s growing tourism and commercial scope.
The move comes amid challenges for VF Corp., with a slower-than-expected turnaround for Vans and a slowdown in the Americas.
