Republic, formed in 1985, is a leading UK apparel retailer of young adult fashion with a differentiated multi-brand concept offering consumers a wide range of proprietary house brands and aspirational 3rd party brands.
CCP acquired a controlling stake in the business in October 2005 to enable the founders to take some rewards off the table and to provide capital and support in pursuing an accelerated growth agenda. At the time, the business was operating 76 stores.
WHY WE LIKED REPUBLIC
- Proven “portfolio of brands” approach to young fashion with a growing own-brand component
- Strong sales growth, sales per sq ft and attractive store contribution margins
- Flexible sourcing model with outsourced manufacturing and warehousing
- Opportunity to dramatically expand the store network across the UK
- Opportunity to launch multi-channel operations to a loyal and eager young customer base
WHAT WE SAW DIFFERENTLY
Working closely with the founders pre-acquisition, we identified a significant opportunity to increase the average size of the Republic stores by developing a network of “Megastores” that would better support the “portfolio of brands” positioning, increase authority in the eyes of our young consumers and further differentiate Republic from the competition. This insight underpinned our growth strategy for Republic and was a tremendous success.
During our involvement with Republic, we supported management to double sales and treble profits and to build a strong platform for continued growth. Change Capital Partners exited the business after four and a half years in June 2010.