Solomon’s plans for growth
Ambitious plans for stationary brands
Solomon Lew (above) has indicated he will not buy the Sussan, Sportsgirl and Suzanne Grae chains, saying expanding his own brands provides a more lucrative growth option.
BILLIONAIRE retailer Solomon Lew has indicated he will not buy the Sussan, Sportsgirl and Suzanne Grae fashion chains, saying expanding his own brands provides a more lucrative growth option.
It is understood fellow richlister Naomi Milgrom is seeking out a buyer for her womenswear fashion business, Sussan Corporation.
Talking to Business Daily, Mr Lew did not completely rule out making a play for the brands.
But he noted Premier Investments – his listed investment company – was rolling out ambitious plans for its children’s stationary brand, Smiggle, and pyjama label Peter Alexander.
Mr Lew is the chairman and biggest shareholder in Premier, which also owns fashion labels Just Jeans, Dotti, Jay Jays, Portmans and Jacqui-E.
He also has a stake of 11 per cent in department store chain Myer.
“At this point, we are investing into our own business,” Mr Lew said.
“We see great returns from what we’re doing now.”
He left the door slightly ajar for an acquisition “if the right opportunity came along at the right price, but I’m sure these businesses aren’t being offered at giveaway prices.”
Mr Lew was speaking after Premier unveiled a new global growth plan for Smiggle, targeting markets in Europe and Asia in a push to increase sales by more than half over the next two years. Solomon Lew has indicated he will not be buying the Sussan, Sportsgirl and Suzanne Grae fashion chains
While Smiggle and Peter Alexander are powering ahead, Premier’s other brands have been buffeted by new online and international fastfashion competitors.
Sales at Just Jeans, Dotti and Jay Jays were down for the year to July 28, but rebounded strongly in the second half as underperforming stores were closed and product ranges were overhauled. Mr Lew said it was clear many of the nation’s big retail brands were struggling.
“We could be the reason because we’re very aggressive; we’re doing better than the market.”
Mr Lew also hit out at landlords, saying they were demanding unrealistic rent increases.
“We need market rents. We are not agreeing to increased rents,” he said.