Hallhuber, headquartered in Munich, is a fast growing European fashion brand positioned in the attractive premium mid-price segment. With its contemporary and stylish products, the company targets a fashion conscious customer between the ages of 25 and 45. Hallhuber operates more than 100 stores and corners across Germany, Austria and Switzerland and concentrates on the design and distribution of fashionable clothing, accessories, and shoes.
Change Capital Partners acquired Hallhuber in September 2009 from Italian fashion group Stefanel, which was looking to focus on its core business.
WHY WE LIKED HALLHUBER
- Distinct positioning in the attractive upper mid-market segment of German ladies fashion
- Undermanaged brand that was underinvested and not operating to its full potential
- Opportunity to improve performance of existing operations to best in class standards
- Opportunity to grow the store network in Germany and Austria and launch an e-commerce website
WHAT WE SAW DIFFERENTLY
Through targeted consumer research and benchmarking of a variety of retail KPIs we identified two major opportunities for value creation: First, to improve the performance of the existing store portfolio through a combination of changes in collection planning, product allocation and retail store operations. Second, to drive growth through an accelerated scientific store opening program and the launch of an e-commerce website.
HOW WE HELPED
As a disposal from a larger group, the business came without a CEO and CFO. We were able to use its network to fill these positions quickly and strengthen the management team ahead of future growth. The new management team, supported by us, immediately started to implement the identified measures to improve the performance of the existing operations. Growth initiatives we have been working on with management include:
- Aligned product availability and newness with market demand through changes in collection planning
- Improving the way product is allocated to stores, making sure the right amount of merchandise and the required sizes are available in each store
- Implemented store service standards including retail performance measures and linked incentive systems
- Developed a new store concept that better communicated the brand’s core values and enhanced the commerciality of the sales area
- Quantified the roll-out opportunity and set up a detailed roadmap for growth through a scientific store opening program and launched the new online store
During our involvement with Hallhuber, we supported management to more than double sales and treble profits. In 2014, Hallhuber was a professionally run company and a great platform for further growth.
We sold Hallhuber in February 2015 to Gerry Weber.