Europe ripe for the Austin Reed look

AUSTIN Reed is planning a Continental chain of upmarket clothes stores. The group is cashing in on a business revival and is especially keen on expanding into France, Germany, Scandinavia and Spain.

Chief executive Roger Jennings said he wants to do a deal 'within the next two years' and had already held preliminary discussions with some potential European partners.

'The group has been transformed over the past three years and mainland Europe is a huge opportunity,' he said. 'We already have a presence in America, Japan and the Far East.

' There is huge demand on the Continent for high-quality British clothing, so Europe represents another important area for development.' Austin Reed's strategy of shedding manufacturing and becoming less dependent on men's formal wear has helped turn round the group after years of decline.

In October, it reported that sales of smart casualwear had soared by 38% and total menswear sales were up by five%.

Jennings has also been supporting the Austin Reed luxury brand name in the UK with licensing deals on perfumes, sunglasses and its Country Casuals brand.

The group, which has 60 stores in Britain, also plans to open a similar number of in-store concessions over the next three years.