Britain‘s biggest retail company Tesco has today announced that it is embarking its first ever international franchise agreement for its clothing label F&F.
Saudi Arabian based retailer Fawaz Abdulaziz Alhokair, which operates around 1,000 outlets and has existing franchise agreements with Gap, Inditex and Marks & Spencer, will house the F&F fascias.
After choosing the Czech Republic as the location for the first ever standalone F&F stores, which opened at the end of last year, Tesco is now hoping to expand the brand even further internationally without the expense of launching own-stores.
A statement from the retailer read: “The F&F vision is to become the world‘s leading brand of affordable fashion and it is already trading in 11 countries.
“Tesco is also exploring further franchise opportunities in other countries.”
Clive Black, analyst at Shore Capital, says sales of F&F products in its four Central European markets now total £400 million annually and although the brand still has some way to go in terms of reputation in the UK, it represents a great opportunity internationally both in stores and online.
Black commented: “Whilst we believe that F+F has considerable work to do to develop its performance and brand perception in the UK, the franchise route has the basis to accelerate growth internationally and so provide access to beneficial economics of scale through its supply chain to make the business more profitable.”
Tesco also announced today that it has signed a new sustainability deal with consultancy firm Capgemini, as the global trader looks to achieve its target of being carbon neutral by 2050.
Last week Tesco reported a 2.3 per cent drop in like-for-like sales over the crucial festive period.