Scotts & Co, the multititle catalogue group which operates Scotts
of Stow and The Original Gift Company amongst others, has
acquired apparel cataloguer Artigiano for an undisclosed sum.
Artigiano was purchased out of administration by Scotts & Co,
which bought the business, its assets and took on all 108
employees in Artigiano’s London and Isle of Wight locations.
Artigiano’s founders Claire and Glyn Locke are no longer involved
with the business.
“We have been looking to acquire an upscale, fashion-led
womenswear business for a number of years as this rounds-out the
group’s catalogue and online retail offer,” says Nigel
Swabey, executive chairman of Scotts & Co. Just three weeks
before the acquisition went public, Scotts & Co unveiled
“tentative plans” to test a fashion offering in 2011.
These plans, made before Swabey was aware of the Artigiano
opportunity, are still firmly on the table, with April earmarked
as a potential launch date.
Going forward, Swabey says he does not want to make changes to
Artigiano’s front-end and that he is excited by the company’s
forthcoming spring catalogue. As part of a larger group, now
comprising 12 catalogue titles, Artigiano will benefit from
Scotts & Co’s 9.3 million-strong customer database and group
buying power.
Direct sales thriving
In November, Scotts & Co released its financial results for the
year ending 26th June 2010. It recorded a 2.6 percent increase in
sales to £52.3 million and a 51 percent jump in operating
profits to £2.13 million. Of its titles, the Scotts of Stow
kitchen and housewares business continues to drive the majority
of sales, accounting for 51 percent of turnover and two-thirds of
profits. “We are undoubtedly facing difficult trading
conditions in the medium term as the prospect of a VAT increase
in January and spending cuts in April 2011 is likely to impact
consumer confidence,” says Swabey. “We have traded
well through the recession thus far however, and there is
evidence that the age and relative affluence of our customers has
cushioned us from much of the impact of the recent
downturn.” He believes the Scotts brands will prove
resilient in the face of any further economic decline. What’s
more, despite the downturn and a general emphasis on discounting
and promotions, the group has managed to improve its gross
margins by “almost a full point”.
As a multichannel retailer, four of Scotts & Co’s businesses have
retail stores. In contrast to direct sales-which are
“thriving”-the stores are underperforming compared
with pre-recession levels. Nonetheless, Swabey is confident of
growing the business. To this end, the group has recently
unveiled its newest title, Viva Vitality. The new catalogue,
launched just before Christmas, sells vitamins and supplements
targeted at people aged 50 and older.
While many of its contemporaries are making forays overseas,
Scotts & Co is not currently looking to expand beyond the UK.
Although the company acknowledges that European and North
American markets are tempting, the Scotts’ management team is
reluctant to dilute its concentration on the UK retail business.
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