Why International Brands Are Rushing to Open US Brick-and-Mortar Stores

After successfully launching and operating over 100 retail stores for more than 60 brands across the United States, we, at Leap, have the unique opportunity to witness a significant shift in global retail strategy. More and more international brands are turning their attention to the U.S. market, not just for their e-commerce expansion, but to establish a physical retail presence. These brands have seen great success in their home countries and understand the power that brick-and-mortar stores have in driving brand visibility, fostering community, and amplifying customer acquisition. They recognize that, in the U.S., a retail presence is key to achieving omnichannel success, driving direct-to-consumer (DTC) sales, and building lasting relationships with American shoppers.

The U.S. is the largest e-commerce market in the world, but it’s also an incredibly diverse and dynamic marketplace. Brands that have developed strong online followings here are eager to tap into that audience in a deeper way by setting up physical stores. Consumers increasingly want experiences that blend the convenience of e-commerce with the tangible connection of in-store shopping. International brands understand this shift and see retail stores as a powerful channel for growth and community engagement.

There’s a strategic advantage in moving into the U.S. market now. With logistics and supply chain costs being one of the largest expenses for international brands, opening U.S.-based stores can dramatically reduce the costs associated with shipping, warehousing and returns. In turn, these brands can offer faster delivery times, localized customer service, and a better overall customer experience.

Many international brands have already proven the power of retail in their home markets and are now leveraging that experience in the U.S. Take, for example, brands like Baobab, Seraphine, Hey Harper, Nadine Merabi, and Hunza G. Each has built strong retail operations in Europe and other regions, and they’ve seen firsthand how brick-and-mortar stores can elevate their brand. These brands have opened stores in major U.S. cities like New York, Los Angeles, and Chicago — recognizing these markets as crucial stepping stones in their expansion strategies.

Through these stores, these brands are doing more than simply selling products. They’re building communities, hosting events, and fostering relationships with local buyers. This in-person connection is invaluable in markets where online competition is fierce and customer loyalty is harder to build.

However, launching a physical store in the U.S. comes with its challenges. International brands often express concerns about the complexity and cost of opening a store in a foreign country. These brands are already experts in e-commerce and local retail, but navigating U.S. real estate, labor regulations, and taxes is a daunting task. Many have told me that, despite their experience in their home countries, opening a store in the U.S. can feel like starting from scratch. The high costs of leasing retail space, hiring staff, and setting up the necessary infrastructure are considerable hurdles. This is where retail-as-a-service platforms can be a huge advantage to international brands. A RaaS platform can take care of all facets of a physical store while the brands can concentrate on what they do best — creating amazing products.

When international brands consider entering the U.S. with brick-and-mortar stores, there are four primary goals they’re looking to achieve:

1. Penetrating the U.S. market: Brands want to replicate the success they’ve had in their home countries by opening stores that complement their online presence. This omnichannel approach helps drive DTC sales and expand wholesale opportunities in the U.S. market.
2. Activating local communities: International brands understand the importance of community building. Opening stores in key U.S. cities allows them to engage with influencers, buyers and customers on a personal level — something that online-only strategies can’t always achieve.
3. Saving on logistics and operations: Operating stores in the U.S. significantly reduces logistics costs, from warehousing and shipping to handling returns and providing customer support. With a localized operation, brands can streamline their processes and offer a better customer experience.
4. Turnkey U.S. store launches: Brands want to enter the U.S. market without being bogged down by the complexities of U.S. real estate, labor laws, taxes, and store development. By partnering with a retail-as-a-service platform, brands can open stores quickly and efficiently, allowing them to focus on scaling their business and building their brand presence.

In today’s omnichannel world, it’s essential for brands to meet consumers at every possible touchpoint. While e-commerce is a crucial part of the equation, a physical retail presence adds another layer of connection and trust. For international brands looking to grow in the U.S., brick-and-mortar stores are a key ingredient in achieving long-term success. By ensuring each touchpoint is seamless and engaging, these brands are positioning themselves for sustained growth and deeper relationships with American consumers.

Amish Tolia is the co-founder and CEO of Leap, a platform that develops and operates retail stores for modern brands.