December 2, 2023
Jaume Miquel, CEO and president of Tendam, stressed that the fashion conglomerate, which includes brands such as Cortefiel, Springfield, Pedro del Hierro, SlowLove and Otto, will consider making a debut on the stock market when conditions are right, but it does not show any Concerned about market leadership. Cost.
“We are not worried about being the first to announce it. We will evaluate when the market reopens. The Board of Directors discussed a strategic move, and a debut on the stock market may be possible,” Mikel said during breakfasts at ESADE.
Mikel stressed the company’s readiness to return to the market again, boasting an “attractive, sustainable and profitable business model” that has been “validated”. But he pointed out that “the markets are currently closed.”
The company was listed on the stock exchange from 14 July 1994 to late March 2006, approximately a year after CVC, PAI and Permira reached an agreement to divide control of the company into three equal parts, now reduced to two following Permira’s exit. In July 2017.
Mikkel shared the company’s goals for the coming years. He stressed that our goal is to achieve sustainable and profitable growth ranging between 6% and 8% in the coming years, and to increase our market share from 6% in 2019 to 7% currently.
The company’s roadmap for the future includes turning brick-and-mortar stores into a “more powerful sales engine” for third-party brands, expanding its membership base, and accelerating the growth of new brands — and potentially creating its own brick-and-mortar stores as it is doing with Hoss Intropia. Additionally, he highlighted that SlowLove, the brand acquired from Sara Carbonero and Isabel Jiménez, is performing “excellently.”
“We are exploring expansion, particularly not only in Iberia but also in Mexico, perhaps acquiring a franchise and integrating it into our model as we have done in the past,” he explained. The group, which operates in 80 countries through its franchised and owned store model, counts Spain, Portugal and Mexico, which are performing “exceptionally well”, as the key markets it operates. In the franchise model, they are “very strong” in Latin America, from Mexico to Chile.
“We are absent from Argentina and Brazil because market dynamics and currency fluctuations do not justify it. China, as a market for locals or luxury, does not fit our position, so we prefer to focus on other areas,” he explained.
Ecosystem for growth
The fashion group’s CEO detailed the company’s shift from Courteville to Tyndham, a “less attractive name and the only one that is not registered worldwide”, with the aim of “aggressively capturing market share to drive growth”. The company relies on its brands and core assets to attract new customers.
The group has built an “ecosystem” hosting more than 150 third-party brands, recognizing the Cortefiel client’s style and offering complementary brands. “We have organised, with 60% similar brands, 20% superior brands and 20% inferior brands, ensuring complete integration.”
Following this development, the CEO highlighted the creation of new brands as the next step. “We designed niche brands to protect margins and not to cater to everyone. We also renovated physical stores and turned them into digital centers for sales and logistics.
Regarding third-party businesses, Mikel acknowledged that the primary risk is “cannibalization,” but there is no evidence of this happening. “Online, this has increased conversion rates, average spend and time spent on pages,” he noted, noting the beginning of these brands being sold in physical stores but in digital formats.
Another driver of growth was the creation of new brands, which significantly increased sales and store visits.
“All this transformation would not have been possible without strong, attractive brands and a strong loyalty club, which are pivotal assets that have been reinvented,” he stressed.
Embracing physical stores to create local value
Jaume Mikel emphasized the value and stability that physical stores bring to the regions.
“As retailers, we must contribute to society because physical stores generate value, stability and progress. It would be a shame not to be where we are, where the store that creates jobs turns into a yellow Amazon box, covering 80% of the population and maintaining a profitable network.” By 97%.
“The physical store is socially important, as it helps with community integration. A company seeking to make a positive impact must create value in the regions,” he stressed.
Mikel stressed that the era of “savage capitalism” is over. “For the welfare state to survive, we need social capitalism in which companies play an active role and set examples,” he stressed.
The CEO of Tendam, with support from CVC and PAI funds, recognized them as “excellent” partners who strive to “create value” in the company and contribute significantly to strategic thinking.
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