Mango takes franchise worldwide as sales soar

Clothing chain Mango increased UK sales by 20 per cent last year and plans more franchise stores later this year.

The Barcelona-based retailer, which specialises in expansion through franchise partners, saw sales grow to EUR 52 million (£36 million) last year in the UK. It said the UK now accounts for more than 5 per cent of its E 950.3 million (£627 million) group sales, which are made across 70 companies and 629 stores.

The company plans to open seven more franchise stores this year, taking its UK total to 10. It also has 12 Mango-branded stores in the UK.

Last year, Mango redrafted its standard franchise agreement in the UK to counter high rents and rates compared with other European countries.

A spokeswoman for the company said it is also in the early stages of seeking a loyalty card partner in the UK and Germany.

Group sales are expected to break EUR 1 billion (£690 million) this year to reach an estimated EUR 1,086 million (£752 million), the company said. EUR 12 million (£8.3 million) has been ear-marked this year for the opening of about 100 stores worldwide.

New markets will include Canada, Algeria, Honduras, Serbia and Montenegro.

Another EUR 6 million (£4 million) will be spent on IT and logistics upgrades.

Next year, group headquarters will be transferred to a larger site in Barcelona. The new HQ will cover 600,000 sq m compared to the 102,000 sq m existing base.

The company said expansion will focus on Italy, Australia, China, Hong Kong and the UK.