Cotton On has announced its acquisition of competitor brand Supré in a deal that will likely replicate Cotton On’s online and international successes.
An announcement from Cotton On Group this afternoon reveals the fashion retailer has acquired competitor Supré, in a deal that will see 157 stores across Australia and New Zealand change hands effective immediately.
Originally founded as a family business in 1984 in Sydney, Supré’s fortunes have been mixed in recent times as the transition to online and the arrival of a number of international competitors has driven competition up in fashion retail. In contrast, Cotton On Group, which is based in Geelong, is understood to have created a solid foundation for itself in the modern retail landscape, going so far as to expand into Asia and the US.
Cotton On CEO Peter Johnson has indicated that there will be no immediate, overarching changes made to the Supré brand initially, however he also points to plans to grow the business in the future, Inside Retail reports.
“In 2014 we will work with Hans [Founder of Supré] and his team to understand Supré’s functions in greater detail and define how the Cotton On Group will partner with Supré to take this brand to the next level, strengthening its market position, store footprint and online presence,” Johnson said.
By strengthening its online reach, Cotton On will also be able to lend its experience to expanding Supré’s business into new markets. We may soon see another home grown brand moving becoming truly multinational, is this is the case.
“The opportunity to expand the brand internationally is an exciting one, particularly in the Asian and South African markets. With our world class supply chain, store design, staff training, development and logistics operations, we will maintain the integrity of Supré, whilst expanding it into markets globally,” said Johnson.