SPAIN: Grupo Cortefiel renews Russian retail deal
Spanish fashion retailer Grupo Cortefiel has renewed a deal with its distributor in Russia to open 190 stores in the next four years.
It has signed a seven-year renewable agreement with Swedish-based company Mellon Fashion Group which includes a purchase option for the Spanish firm.
Juan Carlos Escribano, Grupo Cortefiel’s CEO, signed the agreement this week. The deal will boost Cortefiel's presence to 243 points of sale in the Russian Federation and Ukraine.
MFG itself owns a total of 300 stores in these markets under the Loverepublic, Befree and Zarina brands. It becomes Grupo Cortefiel’s biggest master franchisee on the international market.
For the first time ever, the agreement includes a purchase option, which the Spanish company may take up when the contract comes up for renewal over a seven year period.
Grupo Cortefiel entered the Russian market in 2002 with Springfield and women’secret stores.
A statement added: "This latest agreement is a further step forward in the international strategy of Grupo Cortefiel, which is now present in 60 countries, and comes on the heels of another recent signing with UK firm Brand Empire.
"The objective is to increase its presence on key strategic markets and to boost sales on international markets to 50% of the total turnover in the mid-term."
Like most industries in Spain today, the apparel sector has not emerged unscathed from the deep recession that's roiling the country. ...
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