Republic is bucking the downturn with growing sales, discovers Glynn Davis
These are worrying times for landlords as retailers are forced to shut up shop or curtail their expansion plans. It is refreshing therefore to find an operator that is actively seeking to grow its estate and has a focus on opening units in shopping centres and regional malls.
Branded young-fashion chain Republic is ambitiously expanding on the back of its successful combination of offering in-demand brands including G-Star, Bench and Fenchurch and three exclusive names Miso, SoulCal and Crafted.
When this is combined with keen pricing and a target demographic of 15 to 25-year-olds, who are largely unaffected by the economic downturn, it makes for a sparkling cocktail. Republic’s results over the Christmas period highlight just how strong its positioning is, with sales for the 10 weeks to January 4 up by 18.8 per cent on the same period last year to £47m and on a like-for-like basis they increased by an impressive 6.8 per cent.
With this positive backdrop Republic is aiming to significantly grow its store numbers beyond the present 93. Finance director Tim Bennison says: “We believe there are 200 locations that would support a store. We are very confident of growing our market share and we can offer landlords a stimulating environment. Very few retailers are committed to doing this at the moment.”
What will also interest landlords is the fact that only about 50 per cent of the company’s current stores are ‘right-sized’. This means that as well as adding new outlets the company is also keen on relocations as a way of adding extra square footage. Through a combination of these two manoeuvres Bennison says Republic aims to add around 20 per cent more floorspace each year.
The need for more retail footage is a result of the growth in the numbers of brands the company now offers. To house them the average store size has doubled from 1,500 sq ft of retail space to 3,000 sq ft and its large format units in regional malls can go up to 7,000-plus sq ft.
“We obviously have the full extent of our range in the large format stores but in the older, smaller outlets it will be edited down to just the winners,” explains Bennison. There is also an element of adapting the mix to suit the local environment, which he says can differ between even Bluewater and Lakeside shopping centres, despite them being located only a short distance apart on opposite banks of the Thames.
Although large stores in mega malls are some way from Republic’s birth in a high street store in Wetherby in 1986, the company was quick to recognise the value of shopping centres and two-thirds of its units are now located in such locations.
Republic took an outlet in Sheffield’s Meadowhall, when it opened in the early 1990s, and this prompted malls to feature prominently in its future: “It was a great success and so we rolled out to the Headrow Centre in Leeds, and then into Coventry and Watford.”
The company has continued its close relationship with shopping centres as evidenced by its opening of stores in all the big new developments of 2008 – Cabot Circus in Bristol, Westfield London, Liverpool One, and Highcross in Leicester (which was a relocation).
With women typically making up the majority of shoppers during weekdays in malls Bennison says the gender split of products available in Republic stores has moved to 50:50 compared with more like 60 per cent menswear in the early days.
Bennison says the covered shopping environment fits very well with the Republic brand and its young customer base. “They provide more hang-time for youngsters who gather in malls where there is shelter,” he says.
He also praises the quality of the locations of many shopping centres and suggests that managed schemes are often better than the fragmented high streets as they have a more “cohesive offer” as a result of the management process.
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Bennison also does not believe that mall managers limit the aspirations of store owners in wanting to develop very individual feels to their stores. “They have been challenging in a good way,” he says. “We’ve a very good relationship with landlords.”
Statistics
Republic
Founded: 1986
Founders: Carl Brewins and Tim Whitworth
Number of UK stores: 93
Average store size: 3,000 sq ft
Employees: 2,100
Property agent: Kenney Moore
Website: www.republic.co.uk
