Arcadia Group Limited.doc

Arcadia Group Limited HistoryThe Arcadia Group began life in the early 1900s when 18-year-old Lithuanian migr Montague Burton arrived in Britain and borrowed 100 to set up an eponymous menswear business in Chesterfield. The Burton shop was a success and within six years he had established a chain of Burton stores selling both ready-to-wear and bespoke suits. In 1910, the thriving business relocated to Leeds, where Arcadia Group retains a major office location to this day.The advent of the First World War in 1914 provided Montague with further expansion opportunities as his growing business supplied clothing for a quarter of the armed forces.By the end of the conflict, Burton employed 132 staff at its Leeds headquarters.In the early 1920s, Montague began to develop the Hudson Road factory in Leeds. Within 15 years the enterprise (which today is the location for Arcadia Groups accounting and facilities teams) had become the largest clothing factory in Europe.Montague adopted a philanthropic approach to business, which was evident when he implemented a welfare office at the Hudson Road factory, providing workers with meals, a dentist and an eye specialist to treat eye strain brought on by close needle-work. In 1931 Montague received a knighthood for services to industrial relations; he also served as a Justice of the Peace for many years.By the end of the Second World War Burton was estimated to be clothing around a fifth of the British male population. In 1946 Montague made his first foray into womenswear with the acquisition of the Peter Robinson womens fashion chain.In 1952, the year in which Sir Montague died, the company he founded comprised a staggering 616 stores, making it the largest multiple tailor in the world.The mid-1960s saw the unveiling of Topshop a young fashion department within Peter Robinson, and in 1969 the business changed its name to The Burton Group. A year later, Topman was launched as a counterpart to Topshop, catering to a young male audience and within 12 months The Group had added Evans to its portfolio of businesses. The mid-1970s saw the first standalone Topshop store open its doors, thus cementing its reputation as one of the high streets leading fashion retailers.Following the acquisition of Dorothy Perkins in 1979 and an extended period of growth throughout the 1980s and 1990s, The Burton Group demerged in 1997, divesting its department store business to focus on its fashion multiples and giving rise to the Arcadia Group. In 1999 the Arcadia Group acquired Wallis, Miss Selfridge and Outfit thus completing the Groups current stable of dynamic fashion brands.In 2002 Arcadia Group became part of Taveta Investments owned by Sir Philip Green and his family thus joining the UKs largest privately owned retail group. Since then, weve enjoyed significant expansion in our eCommerce division as well as rapid growth in our international presence. This latter sector includes the opening of own-brand branches in New York, Chicago and Las Vegas (opening 2012) as well as a large number of successful franchises around the world.BrandsArcadia Group Limited, a private company owned by Taveta Investments Ltd, is principally engaged in the retailing of apparels and accessories. It caters to men, women and children. The group operates more than 2,500 outlets in the UK. The company owns several brands which include Burton, Dorothy Perkins, Evans, Miss Selfridge, Topman, Topshop, Wallis and Bhs. The company also sells its branded products in over 34 countries across Europe, the Far East and Middle East through a network of 420 international franchise stores. In total, its store network includes over 3,115 outlets. The company is headquartered in London, United Kingdom.CultureGiven that each of our nine brands has its own intrinsic culture, its fair to say that were a pretty diverse group. But when people ask us what the secret to our success is, we tell them its down to the key qualities which underpin every facet of our business.CUSTOMER FOCUSBecause so much of what we do revolves around ensuring our customers are satisfied, we focus on every aspect of their experience whether its online or in any of our stores worldwide - and we put all our efforts into ensuring our customer service is tailored to suit each individual brand.COMMERCIAL FLAIREngaging our existing customers and enticing new ones is essential with a customer base as broad as ours, so you could say that keeping a finger on the pulse of industry shifts and trends is a full-time commitment.Being intuitive and spotting opportunities before our competitors do excites us today as much as it always has, and because were always on the look out for exciting ways to develop our business, we make a point of encouraging new ideas and innovation.STRATEGIC FOCUSPeople who dont know better probably think that working in our fast-moving, trend-driven sector is something of a guessing game. In fact, nothing could be further from the truth. Of course, we pride ourselves on our ability to innovate but were also in this for the long-term. So how do we stay ahead of the curve? By keeping a keen eye on other markets, and by being able to spot challenges and opportunities that enable us to readily adapt to the ever-changing global retail environment.ENERGY AND DRIVEOur expectations are high, but thats because we have every confidence in our people who are driven by the passion they have for their work and our business. Not only are they determined to make things happen, their goal is to deliver great results. Its our ambition, energy and drive which underpins the success of the Group.PEOPLEOur team of people are at the heart for everything we do. When we recruit people, we make sure that we place them in the brand thats right for them and their personality. Our people are friendly and sociable but theyre also professional, supportive and knowledgeable.Why does it work? Because although we have nine brands under one umbrella, when it comes to the things that unite us strong work ethics and enthusiasm for fashion were one big team.International StoresThis table describes the Arcadia Group Ltd in the world around the store .In UK retail marketMarket trendInformalityModern lifestyles, on the whole, have become much less formal, a trend reflected in clothing. While some places of work may maintain a strict dress code, they are fewer and further between especially in the information technology industry. Many offices have a policy of dress down Friday where it is quite acceptable, indeed expected, to dress casually. This attitude extends into social life. Certainly some clubs and restaurants insist on a formal dress code, but many more think it unnecessary. A prime example of this movement toward informality is the huge resurgence in the denim market. UK sales of denim clothing in 2000 shot up by 8% on the previous year to reach $1.3 billion.SportswearParticipation in sports has increased over the long term, and there is a high level of branding in sports clothes. A particular feature of the sports clothing sector is its acceptability as leisurewear, whether or not any participation in sport is intended. With the growing trend towards informality, the sportswear market is set to grow. This is evident on the UK High St with the entrance of U.S. chains such as Footlocker.Brand ExtensionIn the fiercely competitive UK retail market, the extension of an established brand name into other products has become common practice. This trend is becoming more popular in the clothing industry. Technology in TextilesBefore the 1940s, clothes were made of wool, silk or cotton. The 1950s saw the introduction of synthetic fibres that would revolutionise the industry. Elastane microfibres, such as Lycra and Tactel, combine the qualities of stretch and control while being comfortable, durable and easy to care for. Manufacturers now claim to produce fabrics with other characteristics, such as anti-bacterial or moisturising properties, even cellulite-reducing hosiery.As a result of these changes in textile technology, prices are likely to increase, therefore assisting in growing the value of the market.Larger SizesResearch has shown that British women are now taller, and more curvaceous, than in the past. This trend has been confirmed by bra manufacturer, Triumph, which has found that the average bra size has grown from a 34B to a 36C in less than a decade. Accordingly, Marks and Spencer, for one, is to use a UK size 14 (US size 10) rather than UK size 12 (US size 8) as its base model. Size 14 bust, waist and hip measurements have also been increased.With 62 percent of women in the UK wearing a UK size 14 or larger, there are undoubtedly opportunities for growth in the larger size clothing market.IMPORTSAn estimated two-thirds of the value of the UK clothing market is imported, a percentage that is increasing as more countries