Belgian plus-size fashion chains Cassis and Paprika have raised capital for their expansion in France and Germany. The retailer aims to be profitable again by next year at the latest.
Fast-growing niche
The two Belgian chains have raised ten million euros from investment fund Wallonie Entreprendre and from historical shareholders Jacques Hayez and Mitiska. With that fresh capital, the retailer aims to fulfil its European ambitions and gain a leading position in the fast-growing niche of plus-size fashion.
The retailer has had difficult years, with continuous losses since 2015. Nevertheless, it managed to boost sales back to pre-pandemic levels last year, reaching 110 million euros. This year or the next, the fashion retailer aims to be profitable again, CEO Geoffrey Baudts told Belgian newspaper De Tijd.
Economies of scale
Like other fashion chains, Cassis and Paprika want to raise prices to improve profitability. The company is also cutting back on marketing and has reinstituted delivery fees for online orders – during the pandemic, home delivery was free.
The retailer sees great growth potential in France and Germany, aiming to create economies of scale. Online is also a growth area: e-commerce is growing faster than sales in physical stores, although growth rates of 30 % are a thing of the past.
Cassis and Paprika have 100 stores in the Benelux, 21 in France and 15 in Germany. In addition to their own webshop, the fashion brands also operate on Zalando in a dozen countries.
