Home / Knowledge / News / Apparel/Garments / Bjorn Borg to restructure Dutch retail operations
Bjorn Borg to restructure Dutch retail operations
07
Oct '13
Björn Borg’s distributor in the Netherlands has applied for a corporate reconstruction of its retail operations in the country.

The plan is to implement a substantial reduction of the retail network, currently comprising 24 Björn Borg stores, against the backdrop of long-term weakness in the Dutch market, because of which several stores have underperformed expectations.

The distributor’s wholesale operations, which generate the large part of brand sales in the country, are managed by a separate company that is not included in the reconstruction.

“We can see that this is a result of a tough macroeconomic situation in the Netherlands, where the performance of retail possessed one of the lows among EU countries in early 2013, according to Statistics Netherlands.

"This has strongly affected local demand and hurt opportunities for our distributor’s retail operations. The wholesale operations are profitable, however, and the brand maintains a strong position in the country, even if the Dutch economy is struggling with major problems,” says Arthur Engel, CEO of Björn Borg.

Björn Borg estimates that a reconstruction of the retail network in the Netherlands, according to the current plan, will reduce annual consolidated sales by approximately 3-4 percent based on 2012 sales. Lower purchases from the Dutch distributor for its retail network affected Björn Borg’s sales as early as the second quarter of 2013. A portion of sales from closed stores could eventually be shifted to other channels, including e-commerce.

The reconstruction is expected to be completed by December 31, 2013.

About Björn Borg

The Group owns the Björn Borg trademark and its core business is underwear. It also offers sportswear and fragrances as well as footwear, luggage & bags and eyewear through licensees.

Björn Borg products are sold in around thirty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has operations at every level from branding to consumer sales in its own Björn Borg stores. In total, there are 57 Björn Borg stores, of which 17 are operated in the Group.

Bjorn Borg


Must ReadView All

Courtesy: Michael Kors

Fashion | On 25th Jul 2017

Michael Kors to acquire Jimmy Choo

Global fashion luxury brand Michael Kors Holdings Limited has reached ...

Apparel/Garments | On 25th Jul 2017

VF Corp posts $2.4 billion revenue for Q2 2017

VF Corporation has recorded revenue of $2.4 billion, up 2 per cent,...

Textiles | On 25th Jul 2017

Egypt signs agreement with UNIDO for cotton production

Egypt has signed a €1.5 million ($1.74 million) cooperation agreement ...

Interviews View All

Headhonchos
Indian textile value chain

'One nation, one tax' is a great concept

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X