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Tesco fashions F&F franchise concept in Middle East
18
Jan '12
Tesco is announcing a new franchise model for F&F as it looks to turn the fashion label into a major global brand.

The innovative F&F franchising model will see Tesco working with local partners to bring F&F to customers in a flexible range of settings, including stand alone stores within shopping malls and units within department stores and hypermarkets.

F&F clothing and accessories will first become available in Saudi Arabia later this year as part of a franchise agreement with retailer Fawaz Abdulaziz Al Hokair & Co (SJSC). Tesco is also exploring further franchise opportunities in other countries.

The move supports Tesco's long-term strategy to grow highly valued international brands. Using the franchising model enables Tesco to accelerate the growth of its F&F brand on a much wider scale.

The F&F vision is to become the world's leading brand of affordable fashion and it is already trading in 11 markets.

In just three years, it has become the leading fashion brand in Central Europe, recently launching its second stand alone F&F store in Brno, Czech Republic. The stand alone stores have enabled Tesco to test and refine ideas on which the franchise format will be based.

Jason Tarry, CEO of F&F International said:

“The franchise model is a natural extension of the work we have been doing to turn F&F into a truly global fashion brand.

“We have in a very short time created a market leading fashion brand in Central Europe, now worth over GBP 400 million. Now we have the opportunity to grow our brand further, in markets where Tesco does not have a presence.

“Al Hokair is an excellent partner for F&F. It offers local expertise, knowledge and franchise experience that will really make a difference for local customers.”

Mr. Simon Marshall, Chief Executive Officer of Fawaz Abdulaziz Al Hokair & Co (SJSC) said:

“We're delighted to be partnering with Tesco, and to be the world's first franchise partner for F&F, which has the expertise and the brand equity to become a leading player both in Saudi Arabia and other markets globally.

F&F will augment and enhance our portfolio of international brands and has the potential to become one of the leading fashion brands in Saudi Arabia.”

The first F&F franchise is planned to open in 2012. Based primarily on the core European F&F range, Tesco will work closely with Al Hokair to build a range of clothing that is ideal for the local market.

F&F launched in the UK and Ireland in 2001. Today F&F is available in 11 countries.

F&F range includes a number of sub-brands including:

- F&F Basics for everyday products at everyday prices
- F&F True for larger sizes
- F&F Blue for denim
- F&F Black for suits.

The Fawaz Alhokair Group is the largest owner of shopping malls in Saudi Arabia and is today the largest franchise retailer in the MENA and CIS region with over 1100 stores across eight countries. In 2012, it will be further expanding its operation to 11 countries.

Tesco


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