UK-headquartered Cath Kidston says it will buy out its Japanese franchise business.
Store leases and stock will transfer to a wholly owned subsidiary Cath Kidston Japan on September 1.
The move brings to an end a four year partnership started in 2011 with Sanei International, a subsidiary of TSI Holdings.
Japan accounts for 20 per cent of Cath Kidston’s global sales with four consecutive years of sales growth driven largely by the home, childrenswear and bags categories.
Cath Kidston CEO Kenny Wilson said Japan is the brand’s biggest international market outside the UK and a key part of its business strategy to globalise the brand.
“During 2016 we will celebrate our tenth anniversary since opening the first store in Tokyo and we see real opportunities to grow the brand even further across Asia.
“This is a unique opportunity to take full control of the Japanese business. Sanei International has been a trusted franchise partner and we have worked successfully together, helping to grow the portfolio to over 30 stores. Our desire to buy, and Sanei’s decision to sell back the business, fitted perfectly with each other’s strategy,” said Wilson.
“We are grateful to the Sanei management team in developing the business over the past four years. We have been delighted by the response of the Japanese staff to our decision to take full ownership of the stores.”
Cath Kidston now has stores in 16 countries including China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand, Spain and France.
In April this year, Cath Kidston opened its 200th overseas store in Beijing, China.
Source: insideretail.asia
Related News: CapitaLand sells Bedok Mall
Naiise arises from ashes of GOD
Buffalo Wild Wings serious about Asia
Figaro’s Pizza eyes Asia
eGG to be launched in Thailand, Malaysia, Singapore
Smoothie King eyes Asia
Lippo Malls to buy two Indonesian centres