Giordano is planning to invest US$5 million to open 20 new stores in the Middle East, confident of the potential growth in the market.

The Hong Kong-based apparel company says the new stores will be trading by the end of 2013 and part of a longer term plan to expand its store network to 300 stores across the Middle East and India by 2015.

“We will be a bit more aggressive in terms of developing our franchises there,” said Ishwar Chugani, MD of Giordano Middle East.

The company also plans to establish an e-commerce in Saudi Arabia to reach out to customers in cities where it has no physical presence.

Meanwhile, with rents soaring in its home market Hong Kong, Giordano says it has no interest in opening more stores there. Rents are too high in the market and the company would only consider further expansion if retail rents fell significantly, says its CEO.

Giordano currently has 2800 stores in 40 countries, 240 of which are located in the Middle East.

GB