Smiggle leverages success for European expansion

COLOURFUL children’s stationery chain Smiggle is expanding into Europe, with the star performer of Solomon Lew’s Premier Investments group now set a target of passing $ 400 million in sales in three years.

Smiggle had another record year in 2016/ 17, with sales hitting $ 238.9 million in the 12 months to July 29 – up 29 per cent on the prior year.

The 300th Smiggle store has just opened and the chain now operates in Australia, New Zealand, the United Kingdom, Singapore, Malaysia and Hong Kong.

“The Smiggle business continues to outperform all our expectations,” Mr Lew said after unveiling a group profit of $ 105 million.

“The strength of sales growth reflects not only new markets but continued growth in more established markets.”

Mr Lew said Smiggle has come a long way since Premier bought it nine years ago when it had only 35 stores in Australia and was making $ 19 million.

Smiggle is now the jewel in Premier’s crown and was not only the group’s high growth business but also its single biggest by turnover.

Mr Lew said following on from Smiggle’s success in the UK, where it had been operating for four years, and its re- cent successful launch into Ireland, Premier felt ready to roll it out across Europe, starting with the Netherlands and Belgium in 2018.

The plan was for 40 to 50 stores across the two countries over the next four to five years, which was expected to help drive Smiggle’s global sales past $ 400 million by 2019/ 20.

Premier’s chief executive Mark McInnes said UK infrastructure would help keep costs down in expanding into those markets.

A requirement to use French language products in Belgium would provide insights that would help the group look at potential expansion to France and Canada, he said.

Smiggle and its successful stablemate, sleepwear chain Peter Alexander, had offset weakness from the group’s other apparel brands Portmans, Jacqui E, Dotti, Just Jeans and Jay Jays.