Superdry stores to open in Turkey
SuperGroup, the maker of Superdry and Cult clothing, has agreed a five-year franchise agreement with luxury fashion retailer Demsa Group.
Demsa will open three Superdry stores by early next year in Turkey, including two in Istanbul, and will launch at least eight during the five-year tie-up.
Superdry clothing will also be sold through Demsa’s Harvey Nichols department stores and its luxury brand stores Brand Room.
The tie-up with Demsa follows a similar deal last month with FJBenjamin, a retail distributor that has helped Gap and Banana Republic, to open stores in Malaysia and Singapore.
Julian Dunkerton, the founder and chief executive of SuperGroup, said: “Turkey is a territory that has held our interest for some time and our partnership with Demsa Group offers the perfect opportunity to enter this diverse and growing market. Demsa Group has an excellent understanding of our brand ethos and we look forward to growing the partnership.”
A number of UK retailers are already operating in Turkey, but have had mixed success. Tesco and Dixons are both reviewing their Turkish stores on the back of disappointing sales, although Marks & Spencer says its franchise stores have performed robustly.
Mr Dunkerton started his fashion business in 1985 with the launch of Cult, however, the creation of the Superdry clothing label in 2003 with James Holder, the designer behind the Bench brand, fuelled its growth.
The Superdry brand has attracted a series of celebrity endorsements, including from David Beckham.
SuperGroup floated in 2010 at £5 per share and soared to almost £18 within a year. However, its shares then slumped after three profit warnings, provoked by troubles with a warehouse IT system, accounting errors and stock availability issues.
Mr Dunkerton said in July that SuperGroup was back on track and had silenced its critics after a surge in sales.
The company has ambitious international plans. Cengiz Cetindogan, chief executive of Demsa, said: “We aim to broaden our portfolio of investments and SuperGroup presented the perfect opportunity in the retail sector to partner with.”
Shares in SuperGroup rose 15, or 1pc, to £11.80.