German lifestyle company Tom Tailor is expanding its Austrian retail network. On April 1, the group took over 51% of the Tom Tailor Retail Joint Venture GmbH located in Wörgl from its long-term distribution partner in Austria, Sagmeister. The objective of this move is to actively expand the group’s controlled retail space in Austria and to boost the brand there. When the deal is done, the eight existing franchise stores (six in Austria, one in Germany and one in Switzerland) will be operated as its own retail stores.
“Austria is an important market outside of Germany and we see enormous growth potential for us there”, said Dieter Holzer, CEO of the Tom Tailor group. Tom Tailor will hold a 51% stake in the subsidiary, with Sagmeister holding the remaining 49%. Founded in 1844, Sagmeister operates high-end fashion stores in the Austrian state of Vorarlberg in addition to the Tom Tailor stores. Including these stores, at the end of March 2011 the company operates 181 of its own stores, 35 of which are in Austria. The group plans to open an additional 60 to 70 retail stores in 2011, primarily in Germany and the key markets of Austria, Switzerland, Benelux and France.