Ethel Austin teams up with Co-op
In-store concessions aim to boost clothing retailer’s presence
September 23 2003
Discount clothing retailer Ethel Austin has launched a partnership with the Co-operative Group.
In a bid to increase store numbers and jobs across the UK, up to 20 self-contained Ethel Austin outlets will open in Co-op food stores over the next year, creating up to 100 new jobs.
The tie-up with the world’s largest co-op society is the latest element of a growth strategy for Ethel Austin developed since the company underwent an MBO in June 2002.
The company also plans at least 20 new stand-alone Ethel Austin stores before the end of the year, bringing the total number to 265 and adding more than 100 more jobs.
Ethel Austin retail director, Ray Carroll, said the Co-op partnership was based on shared values: “We have already set up four outlets on Co-operative Group premises and more will come on-line before the end of this year in addition to our own stores.
“We have an excellent relationship with the Co-op and there is a real desire on both sides to take this project forward.
“We have been in talks with other chains about putting our product on their premises and those discussions have been encouraging. With the Co-operative Group, we will not only be operating our own outlets with our own staff but we both have particular shared values in terms of the way we approach our customers and our business.”
The new outlets will employ a full-time manager and four part-time sales staff. Each will have Ethel Austin branding and tills, and occupy an average of 1500 sq ft.
The own-store outlets will employ five staff – two full-time managers and the rest part-time.
Simon Musther, head of buying, non-food in food, for Co-operative Group Retail said: “The trials we have already carried out with Ethel Austin have exceeded all expectations – the offering is very popular with our customers and there is clearly great potential in our two organisations working together.”
The store expansion programme is the most visible part of a growth plan which has already seen Ethel Austin’s operating profits increase by 72 per cent in the current financial year. Like-for-like sales have outstripped the market average for the discount clothing sector by a factor of more than four-to-one.
Richard Hyman of Verdict Research described Ethel Austin as “a rising star of retail,” while another specialist said the firm’s improvement since the MBO amounted to “a spectacular success story.”
