Polish daily Puls Biznesu cities Gino Rossi’s representatives about intensifying the dynamics of domestic and exports expansion as well as new acquisition plans.
Upcoming acquisitions: After the purchase of 100% stake in Simple (high end women brand), Gino Rossi is looking for new targets. According to the CEO, these could come from cosmetics and jewelry segments. The acquisitions could come either as purchasing brands or via acquiring outlet networks. According to the CEO, the company is negotiating with two targets, one of which is outside Poland.
Domestic expansion: Here up to 10 oulets of Gino Rossi are to be opened versus 84 currently, 8 outlets of Vanita brand and 6 shops of Simple.
Foreign expansion: According to the CEO the German market is very attractive for Gino Rossi’s products. Currently, the company has 5 shops there (20 abroad overall) and loyal customers. In 2007, Gino Rossi not only plans to expand the network of its shoe-related products but also the network of Simple.
Our view: We believe that the news could have some positive trading impact. We are generally positive on retail companies for 2007. We favourably judge the acquisition of Simple and expanding the product chain from shoes only to shoes-clothing. Acquisitions in the cosmetics and jewelry segments could also prove favourable.