French Connection: Retail Growth Diagnostics, Mar 2017
-- THIS REPORT IS FREE TO DOWNLOAD --
Published: Mar 2017
As a part of our Retail Growth Diagnostics series we have looked at FRENCH CONNECTION GROUP PLC. The fashion retailer and brand has had a comparable history to that of Benetton with a meteoric rise followed by over a decade in decline with losses.
French Connection board of directors has been under criticism for a long time, but the CEO & Chairman, Mr Stephen Marks, is sitting safe thanks to his 42% holding in the company. The company appears desperate for good news and have embarked on licensing perfumes and home products. It has a range of sofas with DFS in the UK as an example of its lack of strategic foresight.
We believe the company has allowed itself to turn strategy into obsessive compulsive behaviour and having obsessed about the US market it is now embarking on an obsessive behaviour about its online sales. However, its £24m revenues pale in comparison with single brand players such as Boohoo.com and Missguided.com.
Mike Ashley, an avid buyer of British brands with licensing potential, has taken an 11% stake in the business. The company is debt free and currently hold £13.5m in cash. Licensing brings in about £6.5m per year.
This report is a 4-page outline of Styleintelligence ideas on how to return the brand to growth.
This is a FREE DOWNLOAD (NO CARD DETAILS REQUIRED) four-page Retail Growth Diagnostic report outlining new revenue stream suggestions.
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