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Arcadia mulls wholesale move as a path to untapped markets

Arcadia Group is considering a move into wholesale to build brand awareness internationally for its portfolio of fascias, Drapers understands.

The Sir Philip Green-owned business is understood to be looking at several options, which include plans to launch a wholesale division that would sell clothing from some of the individual fascias.

Burton and Dorothy Perkins – both of which have been identified internally as ripe for international growth – are thought to be among those that this strategy could apply to. It is expected that other fascias could also benefit.

It is believed this could act as a path for the company to build brand awareness in territories where it has relatively little presence, with Asia thought to be a priority.

Arcadia’s first store in Greater China – a Topshop in central Hong Kong – opened in 2013 and two more are planned for this year in Causeway Bay and Queensway, the latter of which will be the first joint store with Topman. But the business is yet to secure any deal that would take it to the mainland.

A spokeswoman for Arcadia declined to comment beyond saying it was “a work in progress”. It is not yet known when Arcadia could look to launch the new strategy.

International expansion has become a major plank in Green’s strategy for the business, and has picked up pace since Leonard Green & Partners took a 25% stake in Topshop and Topman in December 2012. 

Arcadia is planning to open Topshop’s second biggest store – an international flagship stretching across 40,000 sq ft – on New York’s Fifth Avenue, opposite the Rockefeller Center, this autumn.

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