New Look wants to get rid of onerous French subsidiary Mim

New Look wants to get rid of onerous French subsidiary Mim

British fashion group New Look will end its fiscal year 2013-2014 with an EBITDA loss of some 67.8 million euro, mainly caused by a write-off of its onerous subsidiary Mim.

Mim for sale

When it presented its financial results, British fast-fashion retailer New Look announced it wants to sell its onerous French subsidiary Mim. It bought a stake in the French ready-to-wear brand in 2000 and acquired it in 2003, but the British company has not had much pleasure from its purchase.

 

Mim CEO Xavier Wilmes resigned at the end of January and Xavier Dura succeeded him in April, merely a few months after new appointments were made for its product range and its styling. Their assignment was to get the brand back in touch with the 18 to 25-year old ladies who have flocked to the Primarks, H&M's and Zara's of this world in huge numbers.

 

Mim says it is one of the 10 largest female fashion chains in France, with some 360 boutiques in France and Belgium. According to Anders Kristiansen, New Look's CEO, "outsiders have shown an interest in the business, but there are other options as well", without revealing what it actually is.

 

New Look keeps growth going

If Mim is taken out of the numbers, New Look is performing well. The British fashion brand, on sale at more than 1,100 stores in 24 countries, had a 3 % sales growth to 1.53 billion pounds (some 1.88 billion euro). On a like-for-like basis, it grew 2.2 % despite "a volatile market". Underlying operational profit grew 11.3 % to 128.5 million pounds (158 million euro).

 

Its online sales are growing very fast, up 63.9 %, even better than the 46 % increase it experienced last year. Its update website, visited by 2.7 million people per week, and its smartphone and tablet apps have helped increase the numbers, while deals with Asos, Zalando, Zalora and other web shops have also helped. All in all, New Look is available in more than 195 countries worldwide.

 

According to Anders Kristiansen, New Look has a 6 % British market share, which can grow significantly through new stores and remodeled, larger existing stores. It will also focus on smaller cities, as "these ignite online sales".

 

New Look will open another 10 boutiques in China, which means it will double its local presence, while it also has high expectations for Poland, where it has purchased the 10 stores previously held by its local franchisee.

Questions or comments? Please feel free to contact the editors


Aldi Nord and Aldi Süd collaborate for animal welfare

18/01/2018

Aldi Nord and Aldi Süd will join forces for a unique collaboration: they will launch their own animal welfare quality mark. “Fair & Gut” (Fair and Good) will launch in Germany for poultry products, but steadily expand.

Rewe uses chocolate pudding to see how little sugar is acceptable

18/01/2018

German supermarket chain Rewe has asked its customers how little sugar they can bear. It aims to lower its private label’s sugar levels, but the consumer will decide by how much.

Lidl dials down its American ambitions

18/01/2018

Lidl had hoped to have about 100 stores in the United States by the summer, but will be forced to adjust its first-year goals. It currently has 49 stores in the United States.

Carrefour looks back on difficult year

17/01/2018

Despite an fourth quarter improvement, Carrefour experienced a very difficult year. There was no growth in Belgium either and it now all depends on CEO Bompard’s new guidelines, which will be revealed next week.

British supermarket chain Iceland gives plastic the boot

17/01/2018

British frozen food chain Iceland will be the first supermarket chain to cut all plastic packages from its private labels. By 2023, each of its 1,400 private label products will have more sustainable packaging, like cardboard and paper, alternatives to plastic.

AB InBev sells two German beers

17/01/2018

AB InBev has sold German beer brands Diebels and Hasseröder, alongside its breweries, to investment fund CKCF. The new owner wants to invest more in the two beer brands.

Back to top