Fashion Company uncovers how their expansion strategy and digital transformation will reshape the fashion retail market across the Balkans.

Fashion Company is one of the largest and most influential fashion retailers in Southeast Europe, operating a network of over 150 stores across six countries.

The company has brought more than 70 globally recognized fashion brands to the region—including names like Diesel, Replay, Boss, Tommy Hilfiger, Calvin Klein, Ralph Lauren, Boggi, Guess, Coach, Marc Jacobs, and many others.

With its vast brand portfolio and store network, Fashion Company has a big influence over how people shop for fashion in the region.

For this reason, we spoke with Tamara Drašković, Retail Director at Fashion Company, to find out about their expansion plans, tech innovations, and vision for the future of fashion retail in the Balkans.

1. As Fashion Company is one of the leading fashion retailers in the Balkans, could you tell us more about your store network?

We currently operate 45 multi-brand and 105 mono-brand stores.

Our multi-brand portfolio includes Fashion&Friends, XYZ, Movem, and Shoezen concepts. Through these stores, we offer strong brands such as Antony Morato, Ugg, Premiata, Desigual, Love Moschino, Armani Exchange, Versace Jeans, Just Cavalli, Joop, Karl Lagerfeld, All-Saints, Sandro, Maje and many others.

While our mono-brand stores proudly represent some of the world’s most iconic fashion names such as Boss, Hugo, Tommy Hilfiger, Calvin Klein, Guess, Replay, Diesel, Superdry, Levi’s, Liu Jo, Scotch & Soda, Timberland, Steve Madden, Camper, and Kiko Milano.

You can find us in Serbia, Croatia, Montenegro, Bosnia and Herzegovina, North Macedonia, and Albania.

In fact, we successfully entered the Albanian market last year, and we are excited to expand into Slovenia this year.

2. How many stores did you open in 2024, and how many are planned for 2025?

We continue to grow each year, strengthening our presence across the region.

In 2024, we opened 22 new stores, and our plans for 2025 include the launch of 24 additional stores.

This consistent expansion reflects the increasing demand for our brands and retail concepts.

3. How does consumer behavior differ from country to country, and where do you see the strongest growth?

Consumer behavior varies from country to country and is shaped by local preferences, purchasing power, and lifestyle trends.

Our commercial team pays close attention to these nuances. We tailor each country’s product offering based on in-depth research, sometimes even adapting by region within the same country.

Right now, the Albanian market is showing the most dynamic growth.

We have two stores in Albania, and we plan to continue to expand.

4. Considering the growing importance of e-commerce, how are you adapting to online shopping trends?

Online shopping has become essential, especially since the pandemic.

Today’s consumers value convenience and time-saving solutions, so we have invested heavily in our digital presence.

We currently operate separate websites for Fashion&Friends, XYZ, and Movem.

Additionally, our loyalty app not only registers every in-store purchase but also adjusts customer benefits based on their purchase volume. The app doubles as an e-commerce channel, allowing users to shop online seamlessly.

We are proud of our online presence and loyalty app, which reflects our commitment to enhancing the customer experience across all touchpoints.

5. Are you integrating more in-store technology to blend offline and online experiences?

One of our key innovations is the Runner Up App, developed in-house and used by our retail team.

It allows real-time inventory checks across our system, streamlines communication between sales teams and the warehouse, and supports fast replenishment and other operational tasks.

We are also testing Radio Frequency Identification (RFID) technology in six mono-brand stores to simplify receiving goods and stocktaking. The results are impressive—productivity is up, and time savings are significant.

Soon, we will introduce user-friendly interactive screens in Fashion&Friends stores. Shoppers will be able to check product availability, register for our loyalty program, and browse the entire collection.

We are even working on a system that recognizes clothing from a customer’s photo and recommends similar styles.

6.  Are you open to expanding your brand portfolio further? 

We are always open to expanding our brand portfolio—but only in the direction that aligns with our long-term strategy.

We carefully evaluate each potential brand through detailed Profit and Loss analysis.

The brand must not only fit our retail concept but also demonstrate strong market potential and profitability.

7. Which of the brands in your portfolio are currently performing the best—and what do you believe is driving their success?

Currently, Boss, Replay, Guess, Tommy Hilfiger, and Calvin Klein are leading in performance.

These brands have a strong identity, a clear mission and vision, and invest significantly in collection development and detail. Their seasonal campaigns are consistently impactful, often featuring globally recognized ambassadors.

However, their success in our markets is also a result of how Fashion Company introduced and positioned them—building strong brand awareness and customer loyalty over time.

8. You also operate the multi-brand chain Fashion&Friends. What do you believe makes this concept successful? How does performance differ between your mono-brand and multi-brand stores regarding profitability?

Fashion&Friends is a unique concept in the Southeast European region.

It’s not just a store—it’s a complete shopping experience, carefully curated to reflect our brand DNA. Its strength lies in diversity. With a wide range of products, it appeals to various age groups and fashion preferences, making it more resistant to market fluctuations.

Mono-brand stores, on the other hand, can experience ups and downs depending on brand lifecycle, marketing, and consumer loyalty.

For example, a customer might start with Superdry in their teenage years, move on to Calvin Klein or Hugo in their 20s, and then choose Boss as they mature.

9. Many of your stores are located in shopping centers. How do you collaborate with mall managers to increase foot traffic and visibility for your stores?

We actively collaborate with shopping centers through joint marketing campaigns.

These include in-mall events, influencer partnerships, styling sessions with well-known experts, and many other activations.

Our commercial activities are always paired with promotional offers to maximize customer engagement and drive store traffic.

10. How do you see the future of fashion retail in the Balkans?

The future of fashion retail is a balanced blend of online and offline experiences.

Online channels will continue to grow, but physical stores remain essential for providing a tactile and emotional shopping experience.

We believe the integration of both will be the key to long-term success.

11. What advice would you give to new brands entering the market?

Thorough market research and a clear strategy – those two are essential.

Before entering any new market, we carefully analyze consumer behavior, local trends, and competitive landscapes.

We recommend setting measurable goals and investing time in understanding the local customer—who they are, what they need, and how they shop.

12. What would you recommend to shopping centers hoping to attract major retailers like Fashion Company?

Shopping centers need to focus on creating unique and memorable experiences.

A mix of retail, entertainment, and leisure—complemented by regular events—can significantly boost foot traffic and visitor engagement.

This is crucial for retailers like us, who depend on high visibility and steady customer flow to succeed.

For more information visit: fashioncompany.rs