Supergroup aims for some Turkish delight

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SUPERGROUP, the company behind the Superdry fashion brand, said it would enter the growing Turkish market through a partnership with local company Demsa Group.

The group, whose celebrity fans include Real Madrid goalkeeper Iker Casillas and singer Ed Sheeran, said it had signed a five-year exclusive franchise deal with Demsa.

Demsa will open three stores by early 2014 – two in Istanbul and one in Ankara.

There is growing competition among retailers to establish a presence in the Turkish market.

Demsa will also carry Superdry products within their Harvey Nichols department stores and their Brand Room stores.

Superdry is now sold in more than 50 countries through the group’s franchised and licensed network and in over 100 countries via its websites.

Last month, the firm signed a 10-year distribution agreement with FJ Benjamin to grow the brand in Malaysia and Singapore.

SuperGroup is due to provide an update on first quarter trading next week.

Last month, SuperGroup, predicted that a new womenswear and jeans range would boost sales after it posted a 22 per cent rise in annual profit.

The growth came against a tough backdrop for consumer spending in Britain, where many retailers have struggled as consumers worry about job security and squeezed incomes.

SuperGroup’s performance and that of AB Foods’ Primark, which reported continued strong trading last month, supported recent British retail data which showed a steady rise in sales, reached a two-year high.

Last month, SuperGroup chief executive Julian Dunkerton said the profit rise marked a return to form, and was driven by improved management and by having a bigger range of suppliers.

The company, which competes with brands such as Abercrombie & Fitch and Jack Wills in casual clothing like hooded sweatshirts, posted adjusted pre-tax profit of £52.2m for the year to April 28, just beating average market expectations.

Shares in the group rose last month to reach their highest level since October 2011.

“The outlook, because we look forward in terms of how the product is received in wholesale, is incredibly positive,” Mr Dunkerton said last month.

He said the group had made progress in womenswear, including dresses and tailored clothes, and the next big focus would be the jeans market for both men and women.