Peacocks to nest in Turkey
Clothing retailer in franchise deal
UK clothing retailer Peacock Group has signed a franchise deal that will take its value-for-money offer to Turkey and the Arabian Gulf.
Franchisee Alshaya has negotiated an exclusive franchise agreement to operate Peacocks stores. Alshaya already has more than 550 outlets across the region, including franchise stores for Next, Bhs, Mothercare, River Island and several Arcadia brands.
The first Peacocks stores have opened this month in Istanbul and Bahrain, with a third opening in Dubai in April.
Peacocks will supply its full range of clothing and homeware to the stores, receiving a royalty payment on all sales. Alshaya sees potential for at least 40 stores over the next five years.
Mohammed Alshaya, chief executive of Alshaya’s retail division, said: “We are excited and have high expectations of the Peacocks brand. It widens our portfolio by allowing us to trade across the family shopping spectrum at lead-in retail price points.
“As such, we are planning a challenging and aggressive store opening programme across all of the major markets in which we operate.”
Peacocks chief executive Richard Kirk said: “Alshaya has great experience and a proven track record of working well with British retailers in this increasingly important and dynamic region.
“Our partnership with them minimises the risks associated with international development, whilst maximising the pace and likelihood of its success. We are excited by the partnership and the interesting opportunities that it will open up going forward.”
The announcement of the deal coincided with news that Woolworths is to scale back its Big W out-of-town stores. The move will see the end of a contracts under which Peacocks supplies and runs adult clothing sales areas in Big W stores.
