Abercrombie Halts European Expansion, Retreats from Barcelona

In a surprising turn of events, American retail giant Abercrombie & Fitch has decided to halt its European expansion, affecting plans for a store in Barcelona and potentially impacting the city's development on Paseo de Gracia with Gran Via.

The planned Barcelona entry would have required a major renovation of the former headquarters of Banco Vitalicio, a significant architectural landmark. The debut store was part of the development of Abercrombie's Hollister chain, a popular youth apparel brand.

The decision to pause expansion was made by Abercrombie & Fitch, a move attributed to the current economic situation. This decision has implications for other cities in Europe, including Vienna, where the retailer had initially planned to open a store through JD Sports in 2012.

Despite this setback, Abercrombie & Fitch has seen impressive growth. The company closed the first nine months of its fiscal year with a 22% growth, and its profit skyrocketed 87%, to $108 million.

Just recently, on November 3, Abercrombie debuted its first main store in Spain, located on Ortega y Gasset Street in Madrid. The new store is housed in the Palacio Aguas de Sevilla, adding another iconic location to the retailer's portfolio.

While the Barcelona store may not open as planned, the success of the Madrid store serves as a testament to Abercrombie & Fitch's appeal in the Spanish market. The opening of the Madrid store was supposed to precede the entry into Barcelona, with the city council expected to give the green light for the Barcelona operation by the end of the year.

This sudden change in Abercrombie & Fitch's strategy will undoubtedly have implications for the city of Barcelona and potentially other European cities. However, it is a reminder of the dynamic nature of business and the importance of adapting to changing economic conditions.