The Middle East isn’t an obvious place to try to sell hoodies, but its move there shows Supergroup is on a roll.
Supergroup, the newly floated fashion retailer, announced today it is moving into the United Arab Emirates, with 13 stores due to open over the next three years. It’s not an obvious place for a retailer synonymous with the hoodie to go, but it offers a full range of casualwear for trendy young shoppers and is clearly a brand which is going places.
The City certainly appears to have fallen in love with the business, and having floated at 500p in March, the shares are now trading at 672p. Investors like the potential for growth through womenswear, through online and through international growth, and the UAE franchise deal shows that there is a real appetite for the brand.
The challenge for founder Julian Dunkerton will be how he manages the growth of the business and avoids overexpanding. The brand is red hot right now but the key with any fashion brand which finds itself being of the moment is ensuring it stays fashionable, produces the right product for the market, and maintains some exclusivity around its distribution.
From talking to people close to the business it strikes me that they’re well aware of the potential pitfalls, and if they keep them in mind, there’s no reason why the business can’t go from strength to strength. They will be well aware of the challenges French Connection - a brand once as fresh and exciting as Superdry is today - has faced down the years in keeping shoppers excited by it.
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