Fashion group FNG has become a household name in the Benelux, which is why it is also looking at other markets. CEO Dieter Penninckx sees opportunities for its Dutch brands in Germany, but Spain is more interesting for its Belgian brands.
German acquisition
Claudia Sträter already has a store in Germany, but FNG thinks Expresso and Miss Etam could also thrive in the country. Belgian CKS is already available in Spain, including its own store in Barcelona.
In order to speed up that foreign expansion, Penninckx is even considering a German acquisition. “The majority of sales start online, but often end up in stores. We should not just simply sell things on Otto.de and Zalando, because then one also needs a store network. We are rather modest, but if you acquire something in Germany, you target about a hundred stores”, he told FD.
Possible acquisitions in Benelux as well
The company may still acquire additional companies in the Benelux. “We may still acquire one or two companies in the Benelux”, Penninckx said. “We are large and diverse enough in the Benelux to actively manage our portfolio, which means we can exchange stores, logistics, IT and knowledge. More brands in the fashion industry could result in more of the same.”
FNG tackles every acquisition in the same way: a struggling brand is upscaled thanks to a better image, but its organization is simplified and its profits maximized. “You would get a headache knowing how Miss Etam was structured. An enormous organization, plenty of layers and completely bloated. It had 300 people in its main office, which have now been brought back to below 100. We manage every company as if they were separate SME’s.”
