International
New Look has gained significant experience in operating in markets outside the UK in the last few years through bricks and clicks, and has established a clear and rigorous route to market selection. Our goal is to become a truly international retailer, establishing a significant footprint in all of our existing and new own-store markets and building a successful franchise model that is truly integrated within the Group business.
The proportion of New Look’s revenue generated from international operations has increased steadily from £87.3 million (12.5%) in FY04 to £343.8 million (24%) in FY11. Last year we opened 129,000 sq ft. across our international portfolio taking total space outside the UK to 1,802,000 sq ft. Including our e-commerce channel, we now serve 122 countries globally.
New Look International
Looking to the year ahead, we will continue to focus upon growing our existing own-store businesses in France, Belgium, Netherlands and RoI either organically or via acquisition, alongside the development of potential new markets. Our goal remains to ensure all our international businesses follow a clear and credible path of sustainable profitability.
Mim
The Mim stores offer a product range and brand proposition that is distinct from that of the New Look brand. Whilst also operating in the value fashion segment, Mim’s offer is targeted at a younger (<30 years old) and more value-conscious female customer.
As at 26 March 2011 there were 300 Mim stores trading across France and Belgium, with 656,000 sq ft of total trading space. Mim also has an e-commerce website at www.mim.fr that launched in September 2009.
Following a difficult year in FY10 due to the decline in the French apparel market, management changes and unpopular product ranges, Mim staged a strong recovery last year, posting 2% and 96% increases in sales and underlying operating profit respectively. This was achieved through the reinstatement of the previous management team, a rebalancing of the product offering to appeal to traditional Mim target customers, the sharing of operational best practice with New Look (e.g. improved store layout and inventory management) and by exiting a small number of loss-making stores. During the year we also converted a small selection of Mim stores to the New Look brand, typically where stores are situated in locations more suited to the New Look customer than the Mim customer.
The priority for the year ahead is one of continued recovery in the business, with a focus on optimising profitability of the core existing estate. Over the medium term, New Look sees considerable opportunity for growth through further performance improvement, development of the portfolio both in France (refurbishments and new stores) and internationally, and development of the e-commerce offer.
New Look Franchise
New Look has developed a successful franchise business model, that today trades from 67 stores in 10 markets. This year, New Look launched our Franchise operations manual setting a global brand standard and clear benchmarks and objectives to all our partners in all our markets. The manual aims to provide a single point of reference for all our partners, providing everything they require to successfully operate New Look stores. Looking ahead, we will continue to open new stores in line with existing franchise partners’ business plans, and continue to work on identifying new territories which share characteristics similar to the UK market and will be receptive to the New Look brand. We operate a rigorous franchise partner selection process, working only with those partners with proven track records who are able to provide access to talent, real estate and local market knowledge.
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