Global sup­ports Yar­gici in franchising its life­style re­tail brand into Saudi, Kuwait

After years of ro­bust growth within Turk­ish mar­ket

Kuwait Times - - Business -

KUWAIT: Global In­vest­ment House (Global), a re­gional as­set man­age­ment and in­vest­ment bank­ing firm head­quar­tered in Kuwait, with of­fices in ma­jor cap­i­tal mar­kets in the MENA re­gion, an­nounced yes­ter­day that Yar­gici Kon­fek­siyon Ihra­cat ve Ti­caret A S (Yar­gici), one of the lead­ing women fashion re­tail brands in Turkey since 1978 which is owned and man­aged by the al­ter­na­tive as­set man­age­ment arm, Global Cap­i­tal Man­age­ment Ltd (“GCM”), has re­cently signed master fran­chise agree­ments with two key re­tail­ers in the GCC to ex­pand in the Saudi and Kuwaiti mar­kets.

The master fran­chise agree­ment signed with the Saudi re­tailer, Mosa Ibrahim Al-Kaltham & Sons Group, states open­ing three stores in the King­dom in Jed­dah and Dam­mam with the first two stores planned to open in March. The stores will fea­ture women fashion in­clud­ing cloth­ing, shoes, bags and ac­ces­sories. AlKaltham Group, is one of the lead­ing whole­salers and re­tail­ers in the King­dom of Saudi Ara­bia and GCC. Formed over 50 years ago, Al-Kaltham sells goods pri­mar­ily for the bed­room, bath­room, kitchen, table­ware, cloths and other tex­tiles prod­ucts.

The lead­ing Kuwaiti real es­tate de­vel­oper, Tamdeen Group, will open the first Yar­gici store in a new pres­ti­gious devel­op­ment dur­ing the first week of April, with plans for sev­eral more lo­ca­tions. Tamdeen Group, through its sub­sidiary 360 Style Co. op­er­ates brands such as Gucci, Bot­tega Veneta, and Saint Lau­rent through joint ven­tures and fran­chise agree­ments, in Kuwait. The newly es­tab­lished sub­sidiary, Tamdeen Gen­eral Trad­ing, of which Yar­gici will be a part of, will be rep­re­sent­ing and op­er­at­ing a num­ber of af­ford­able lux­ury and fast fashion and ac­ces­sory brands.

Ih­san San­cay, Chair­man of the Board of Direc­tors of Yar­gici and Head of Pri­vate Eq­uity As­set Man­age­ment at Global com­mented, “The two fran­chise agree­ments rep­re­sent key mile­stones in the ex­pan­sion strat­egy of Yar­gici in the GCC which rep­re­sents the largest in­ter­na­tional mar­ket for our prod­ucts based on our on­line shop­ping and duty-free pur­chase his­tory. We look for­ward to work closely with our part­ners in these mar­kets to serve this very loyal clien­tele at their home­towns”.

He added, “With an in­creas­ing share in Yar­gici’s for­eign cus­tomer port­fo­lio, the GCC will al­ways be a key driver in our strate­gic growth plans. As one of the most pop­u­lar brands among Gulf cus­tomers, we plan to fur­ther trans­form this de­mand into a po­ten­tial growth op­por­tu­nity by ex­pand­ing into other GCC mar­kets”.

Since ac­quir­ing 75 per­cent of Yar­gici in 2011, Global Cap­i­tal Man­age­ment Ltd has worked closely with the com­pany to con­sol­i­date its brand po­si­tion and of­fer­ings in Turkey and ex­pand its busi­ness ge­o­graph­i­cally and by prod­uct lines. Dur­ing the past six years, Yar­gici suc­cess­fully opened 32 new stores in Turkey and ex­panded in the Euro­pean Union with 4 new stores opened in Ger­many in the cities of Ham­burg, Ber­lin and Ober­hausen. Yar­gici has in­creased its to­tal num­ber of stores from 20 stores with 2,817 sqm of re­tail space in 2011 to 56 stores with to­tal re­tail space of 11,864 sqm at the end of 2017.

In ad­di­tion to ge­o­graphic ex­pan­sion, Yar­gici suc­cess­fully im­ple­mented new busi­ness ver­ti­cals to its proven op­er­at­ing model. Be­sides shoes and bag, and ac­ces­sories ver­ti­cals, home works busi­ness line is brought into life to in­ter­con­nect fashion and home ac­ces­sories for en­hanced cus­tomer ex­pe­ri­ence. Home works col­lec­tion brings light fur­ni­ture, spe­cialty ac­ces­sories like hand­made ce­ram­ics, wicker bas­kets, home tex­tile, light­ing and dec­o­ra­tive ob­jects to­gether.

It is worth not­ing that Global’s value add was not only strength­en­ing Yar­gici’s cap­i­tal but also es­tab­lish­ing cor­po­rate gov­er­nance, per­fect­ing re­tail math­e­mat­ics of Yar­gici and im­prov­ing the over­all op­er­a­tional ex­cel­lence.

Global signs fran­chise agree­ments with two key re­tail­ers in GCC

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