Kiabi’s expansion in Paris is taking longer than expected due to high rent prices and a scarcity of large retail spaces. However, the affordable family fashion brand is determined to persist. With an existing discreet store in Paris since 2006, located on the upper floor of an Auchan near Voltaire metro station, Kiabi inaugurated a second outlet in the Olympiades neighborhood (13th arrondissement) in February 2023. Similarly, this location does not have a large storefront on the street but is situated on a commercial platform at the base of a residential complex.
The 1,050 square meter store, located at 66 Avenue d’Ivry, has an atypical L-shaped format with a small entrance. Previously a gym, it required nine months of renovation work to accommodate the women’s section at the front, followed by the men’s, children’s, and baby sections further inside the store. “In Paris, the women’s section represents the largest share of sales, whereas it is often the children’s section in other parts of France,” explains Théodore Maurice, the store’s manager, who is also part of the family that owns the other Kiabi unit in Paris.
“We chose this neighborhood in the 13th arrondissement because there are few locations in Paris where Kiabi’s business model can be profitable,” he continues, satisfied with the store’s performance since its opening. “Our customers are mostly local residents, including those from the 12th and 14th arrondissements, as well as people who work nearby.”
Kiabi plans to open a third store in Paris in 2024, which will be a Kids format branch spanning approximately 500 square meters. The exact location is yet to be determined, but it will likely be in the eastern crescent of the capital. This child-focused concept was already implemented in the suburbs, such as at the Kremlin-Bicêtre last year. While this location is functioning well, it still aims to improve profitability per square meter.
In addition to its Paris expansion, Kiabi continues to expand its presence in other regions with around ten store openings planned for this year. Both suburban and city center locations are targeted. Igor Aglat, the development director of Kiabi for the past six months, spends a significant amount of time convincing property owners about the brand’s projects and its strength. “In a challenging market, Kiabi is stable and meets demand, attracting a significant number of customers. It is in the property owner’s interest to have us come in,” Aglat explains. He has examined the lease documents of failing retail stores but often found their rents to be too high.
Kiabi also intends to increase its presence through shop-in-shop partnerships. Presently, the company has dedicated sections for its maternity and plus-size offerings in around 30 Auchan supermarkets (a deployment that began in 2022) and aims to expand to approximately 40 locations. In Belgium, Kiabi has partnered with Cora. “We are seeking partnerships with new players,” adds Igor Aglat.
In addition to shop-in-shops, Kiabi has welcomed other brands into its stores. For example, since February last year, shoe chain Chauss’expo has set up corners measuring 10 square meters in fifteen Kiabi outlets, including Cholet, Arras, and Anglet. This move coincides with Kiabi’s reduction in its own shoe offerings. Moreover, Isotoner products (boots, slippers, etc.) have entered 40 stores, and a partnership with Rand has been established to sell lunch boxes, water bottles, and other insulated bags in ten units.
Overall, Khardiata Ndoye, Kiabi France’s marketing director, notes a “boom effect” in early September 2023, shortly before the back-to-school season. However, she acknowledges that customers today are more discerning about additional accessories and tend to remove them from their baskets. While the brand may not achieve the record growth of 2022 (10%), which was a turbulent year, it still maintains a positive trajectory.
Kiabi currently operates a network of 579 stores in 24 countries, with 340 in France (including 114 affiliates). The company is expanding into three new territories in 2023: Egypt, where it is currently building a factory to streamline production; New Caledonia; and Uruguay. In addition, Kiabi generates 15% of its sales online and aims to regain the 20-25% level experienced during the pandemic. Its marketplace, which started slower than expected, will be improved next year, and new digital services such as split payments will contribute to its online growth.
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