Ted Baker chief executive Ray Kelvin maintains wholesale will continue to be a central part of the business, despite the challenges faced by multi-brand retailers such as USC and Bank.
When asked about the future of this model in the UK, Kelvin said: “I think there will always be a place for multi-brand retail and I can’t see that changing. Wholesale will continue to be a big part of our business going forward.”
Kelvin was speaking to Drapers following Ted Baker’s appointment as a Nordstrom Partner in Excellence. The company received the award in recognition of its “outstanding” performance in categories including quality, value, fashionability and business culture at the US department store retailer.
Kelvin said: “This is a tremendous accolade for us to win from the thousands of brands which are stocked in Nordstrom. It is great for British fashion.”
He said Ted Baker is expecting Nordstrom, which stocks the brand on a wholesale basis, to generate retail sales of approximately $80m (£52m) for the brand this year in its stores. Nordstrom has 292 stores in North America, including 116 full-price stores in the US and one in Canada, and 167 Nordstrom Rack outlet stores.
Ted Baker will announce its full-year results on March 19. As part of a trading update in November, the company said it expects group wholesale sales to be around 20% ahead of the previous year. In 2014, full-year wholesale sales were £62.8m, compared with retail sales of £259.1m.