Owner of 500 retail stores Accent Group (ASX:AX1)
will expand its distribution network, following the acquisition of Glue Store and other exclusive fashion brands under Next Athleisure’s management.
The $13 million takeover will enable Accent (ASX:AX1)
to diversify further into the mainstream fashion segment and access to distribution licenses of world-famous labels including Superego and Kappa.
Accent CEO Daniel Agostinelli described, “The NAL acquisition is perfectly aligned to our strategy to grow our leadership position in the lifestyle and youth apparel market in Australia and New Zealand”.
Popular among young and trendy consumers, Glue Store will add a further 21 stores and a fashion e-commerce platform to Accent’s portfolio of fashion shops. These retail channels generate annual revenue of $90 million.
The new subsidiary will contribute a loyalty database of an estimated 500,000 subscribers, who make up 18 per cent of total sales.
The company said, “Glue Store, along with the NAL wholesale and distribution business, provides an established and complimentary platform to accelerate our growing apparel business.”
Next Athleisure’s incorporation into the Accent Group (ASX:AX1)
will bring homegrown trademarks constituting 25 per cent of the new division’s total revenue, and a new group general manager.
Shares in Accent Group (ASX:AX1)
are trading 5.38 per cent higher at $2.74