Retail Week’s recent white paper, in association with Crowdcube, analyses the plethora of options open to retailers looking to fund their future growth agenda.

As the UK economy returns to pre-recession levels, ending the longest downturn in post-war history, the outlook for retailers hoping to fund their future growth agenda is brighter than it has been in years.

The funding options open to retailers with a sound business case and an appetite for expansion are varied and diverse, from raising debt via a mini-bond to selling shares in a public listing. And there are plenty of investors out there interested in the retail sector.


Funding retail’s growth ambitions, a new white paper presented by Retail Week and Crowdcube, is an invaluable overview of the financing options now available to British retailers, enabling firms to select which option for raising finance is best suited to the business from a strategic, operational and cultural perspective.

New phase of growth

Sparked by the flotations of Conviviality and Bonmarché in late 2013, there has been a flurry of excitement about retail IPOs in the past 12 months, with retailers such as Pets at Home, Ao.com and Poundland all coming to market with punchy valuations in 2014.

As the year progressed, however, share prices dropped and a number of flotations were pulled, raising questions about the viability of public listings going forward.

Opinions vary, but the consensus is that the IPO window for retail is far from closed, as long as the price is right; indeed, no fewer than 12 retailers floated on the stock market in 2014 and there are plenty more retail flotations slated for the coming year, including luxury fashion website Net-a-Porter. What is more, a plethora of other funding options are opening up for retailers in the present economic climate, which is described by commentators as a new phase of growth for the retail industry as it emerges from the shackles of recession.

In sharp contrast to the recessionary years, retailers are gaining confidence in the market again and looking at how they might raise money to invest. Securing debt is fast becoming an increasingly popular option for businesses seeking to raise finance.

That has been bolstered by the emergence of new debt products such as mini-bonds and credit funds. According to figures from law firm DLA Piper, refinancing activity surged 25% in 2013 across Europe, exceeding the number of primary deals for the first time in many years. That is predicted to continue in coming months, with the UK expected to be the most active market.

A stronger economic backdrop has bolstered all this deal activity. The UK economy has finally passed the peak level of output reached before the economic crash, according to the National Institute of Economic and Social Research, while consumer spending is also on the up.

There is a palpable sense of optimism coursing through the high street, but not all retailers are smiling. The recent demise of Phones 4u, poor Christmas trading for Marks & Spencer and sales dip at Sainsbury’s are signs that competition remains tough.

There is plenty of choice for businesses looking to fund growth - the bottom line is are they attractive enough for investors?

Join the #growthretail Twitter debate

Across the UK, emerging retailers are pushing the boundaries of conventional retailing and re-inventing the retail space in a big way. But what does it take to succeed long-term in today’s crowded market?

Share your views on how ambitious growth retailers can cement their niche brand in a live Twitter debate, run by Retail Week in partnership with Crowdcube, on January 22 at 1.30pm.

The debate will explore the challenges and opportunities facing businesses as they attempt to shake-up the retail landscape for good.
Use the hashtag #growthretail and add your voice to the debate.

Topics being discussed will include:

  • How are retail’s most exciting new businesses funding their future growth ambitions?
  • What opportunities exist for raising capital in the current climate?
  • What’s the best way for emerging retailers to inspire consumer loyalty in a saturated market?
  • What are your strategies for growth in the new financial year?
  • How can new retail brands challenge the UK’s established retail names?
  • What challenges are emerging businesses up against and how can they surmount them?

About Crowdcube

Crowdcube is the world’s leading investment crowdfunding platform, helping businesses raise finance through equity, debt and investment fund options. Success stories include Hugh Fearnley-Whittingstall’s River Cottage, which raised £1m in 36 hours through a Crowdcube mini-bond, and Sir Stelios Haji-Ioannou’s latest venture, easyProperty, which raised £1.4m through an equity raise.

This advertorial feature was provided on behalf of Crowdcube