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London, British online fashion retailer Boohoo has bought three clothing brands owned by the collapsed Arcadia retail group for 25.2 million pounds (USD 34.5 million). Boohoo bought the inventory and online businesses of the Arcadia brands – Dorothy Perkins, Wallis and Burton. The deal did not include the brands’ 214 remaining U.K. shops, which will close, and around 2,450 employees were told Monday that their jobs have been axed.

Following the news that the boohoo group has bought Dorothy Perkins, Wallis and Burton out of administration; Emily Salter, Apparel Analyst at GlobalData, a leading data and analytics company, offers her view on this news:

“The £25.2m acquisition of Dorothy Perkins, Burton and Wallis completes the transition of Philip Green’s former high street empire solely to the online channel in a move that has been facilitated by COVID-19 and will significantly change the face of UK physical retail. Along with the boohoo group’s acquisition of Debenhams, this will diversity its range of brands, with these Arcadia brands a natural fit for Debenhams as an online marketplace. However, with so much already on the boohoo group’s plate, it must ensure they receive the revamp they desperately need instead of letting them fall by the wayside.

“Burton will give the boohoo group the opportunity to grow share in the menswear market, with its wider customer base providing it with a stronger path to potential growth than boohooMAN. However, Burton’s heavy focus on formalwear has been rendered redundant throughout the pandemic, with demand unlikely to fully return as working from home continues, so its product focus will need to be refreshed. Wallis’ core customer is females over 45, a demographic which the boohoo group has little experience of targeting and will be less receptive towards the group’s usual strategy of heavy discounting and social media-led marketing. Dorothy Perkins will be a better fit with the group’s current stable of brands, with a similar shopper base to Oasis and Warehouse, however the group will need to establish a unique selling point for Dorothy Perkins to create differentiation between the brands.”

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Announcing the association, Anant Daga, Managing Director, TCNS said, “Aurelia – contemporary ethnic women’s wear brand from TCNS stands for the fashion choices of the new age women at work as well as home. Over the years the brand has been the market leader in its space. And, associating with Disha Patani, who is a youth icon is a strategic decision to showcase the best attributes of the brand. With that thought, we have on-boarded Disha Patani as our face to strengthen the brand ethos”.

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“The acquisitions will help the company to strengthen its footage in the retail industry and support its long term strategy to enhance its value in the retail industry.

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Sanjay Vakharia, CEO, Spykar Lifestyles, said, “For the last 25 years, Spykar has been leading the fashion denim market in India. With great brand saliency and a superior product, we rank highly on customer satisfaction scores. With a renewed thrust on Marketing , coupled with Spykar’s business strengths of a great product, strong team work and the Metdist group’s strategic guidance , we are all set to a create waves in the fashion denim market. Our ambition is to double our revenue in the next couple years”.

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It acquired 50 percent stake each in GML India Fashion and GLB Body Care for Rs 4.48 crore and Rs 16 lakh respectively.

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Tell us about your latest occasion wear collection and its theme. Also, share your plans for the forthcoming fall-winter season.

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