Veritas wants foreign growth thanks to partner | RetailDetail

Veritas wants foreign growth thanks to partner

Veritas wants foreign growth thanks to partner

Veritas is ready to shift up another gear towards European expansion and the Belgian chain is looking for a partner to support that growth. The family-run company will therefore open its doors, for the very first time, for an external shareholder.

200 stores and 200 million euro turnover

Veritas believes its store concept would hit it big in an international market, which is why it wants to start a European expansion: "There are no similar chains in Europe and you cannot find our array of products in a single store anywhere, so we are entering a open market", Veritas' new CEO, Ine Verhaert, said to De Tijd.

 

The foreign growth would start in the neighbouring countries, with pilot stores outside of Luxembourg and Belgium as early as the beginning of 2015. The goal would be to have 200 European stores in the medium term, in a radius of 350 km around its main office, bringing in a 200 million euro turnover.

 

Veritas also aims for online expansion, which should represent 10 % of the accessory and haberdashery chain's total turnover. Local growth also has to continue, with digital booths in 2015 and room for another 16 stores in its home markets of Belgium and Luxembourg.

 

Capable partner required

The entire strategy is a logical continuance of Veritas' turnaround since 2002, when it decided to focus on individualization. That meant that every woman shopping at Veritas would be able to get whatever she needed to give her outfit a personal and unique 'touch'. It turned out to be a stroke of genius at that time and the perfect answer to the contemporary demands, globalization and fast-fashion's surge.

 

Retail nowadays is faced with another decisive challenge: "Where stores used to be open from 10 to 18h today, they have to be available 24/7 tomorrow. There are no more geographical boundaries anymore and it is the next generational retail development that pushes through an omnichannel approach in an international environment", Marc Peeters, chairman of the board, told RetailDetail.

 

That is why Veritas's board came to the conclusion that the current approach was reaching its peak, which meant a new type of business has to be born. "We are, once again, at a pivotal moment in Veritas's history and we are reaching out to the growth opportunities that are available to us now."

 

"We need homogeneous capabilities in Verigroup to make all that happen, with everyone having the right set of skills to implement our omni-channel strategy. That is why we are looking for a strategic referential partner, who can follow us in our strategy and who brings 'unlimited retail environment' experience to the table", the chairman explained.

 

"Everything can be discussed"

ING will help Veritas in finding and selecting a suitable partner with even a majority stake on the table if necessary, according to chairman Peeters. However, it is a matter of discussion and agreement with the current seven shareholder families. "As long as the purchaser can accept the uniqueness of the Veritas idea, everything is possible", Marc Peeters told De Tijd. Veritas expects to have a clearer view of its plans by the end of the year.

 

Over the past 5 years (2008-2013) Veritas has seen an annual 14.1 % growth, despite a stagnant textile fashion market. It even expects another 13 % turnover growth this year, to some 128 million euro.

Questions or comments? Please feel free to contact the editors


Hoegaarden moves part of production to Vietnam and China

18/05/2018

Hoegaarden experiences strong growth in Asia, but is losing ground in Europe. That is why AB InBev will move part of the production to China and Vietnam: the brewery in Hoegaarden will lower cut its production days by 2 a week.

Holland & Barrett wants vegan stores

17/05/2018

British health chain Holland & Barrett (previously known in the Benelux as Essenza) plans to open completely vegan stores, a trend the chain needs to follow according to CEO Peter Aldis.

Nestlé on a diet: cuts back sugar, fat and salt levels

17/05/2018

Nestlé wants to lower its sugar, salt and fat levels to play into the global demand for healthier food.

Analysis: six reasons major brands are under pressure

17/05/2018

Global brands are increasingly struggling to ward off smaller, local companies. Some even believe the brands’ golden age has passed. That may be presumptuous, but there are some noticeable trends.

Coca-Cola is strongest global brand, but local brands are on the rise

17/05/2018

Coca-Cola, Colgate and Maggi are the most popular FMCG brands worldwide, according to a Kantar Worldpanel report. Local brands are stealing market share however.

Amazon Prime members get additional discount at Whole Foods

17/05/2018

Amazon Prime members will get an additional discount on hundreds of Whole Foods products, the chain it acquired in June 2017. Specialists claim there is a clear strategy behind these discounts.