Germany : Mustang to expand by opening more stores

Mustang, the German jeanswear company, suffered a fall in sales for the first half of 2003 and has set its sights on stepping up its retail presence. Its 50 stores located in Germany, France and Switzerland are to be joined by a series of new outlets. Managing partner Heiner Sefranek sees particular potential in France, where Mustang currently operates 23 shops. The mid-term total here is to increase to between 100 and 120. Mr Sefranek also envisages 50 retail stores in Germany and is keen to venture onto the Italian market where own stores and in-store concepts only are deemed feasible. As Mustang increases its commitment to the retail trade, it is simultaneously scaling down production. Plans are in the pipeline to cut its production from a current 55 per cent to around 40 per cent of total output. Mustang has an increasing proportion of output made in the Far East. The Kuenzelsau-based company posted an 11 per cent drop in sales to € 60.5m for the first half of 2003. None the less the company expects to reach a flat turnover in 2003. Last year, the Mustang Group failed to match the previous year''s sales closing with a marginal 1.7 per cent slide to € 135m. Business on the home market was disappointing with sales dropping 7.9 per cent to € 75.4m. Abroad the group recorded a plus of 1.2 per cent to € 40.8m, pushing the proportion of exports up from 33 per cent to 35.1 per cent of total sales.