Asda set to explore fashion franchise
Tuesday, 17 May 2011
The chain has set up a team at George's Lutterworth, Leicestershire base to explore entering into franchise arrangements for the first time.
George expects to announce its first partner in the Middle East in the next few months, followed by store openings in the first half of 2012.
The George label already trades in six countries in stores run by Asda's US parent company Walmart, but the business now hopes to step up its expansion by opening specialist George outlets in new markets overseas through franchise agreements.
George was set up 21 years ago by George Davies, who also invented the Per Una label at Marks & Spencer.
Asda said George is now the third best-selling clothes brand by volume in the UK, selling through its 364 supermarkets and 27 Asda Living general merchandise stores. George claims to sell more childrenswear than any other retailer.
Asda chief executive Andy Clarke said: "George is a key driver in our ambition to grow our general merchandise businesses."
Mr Clarke has also tried to push food sales by launching a Chosen By You range and a guarantee that its grocery prices are 10% cheaper than those of its rivals. Asda has made growing sales of George one of its key targets.
The firm spent over £70m last year in sourcing products from Northern Ireland suppliers and has invested £230m in food and drink products since moving here in 2005.
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