South African retail giant Woolworths Holdings will roll out concession outlets in David Jones of men’s fashion chain Politix, in direct competition with Myer, after buying the Melbourne-based ragtrader for about $60 million.
Woolworths said on Wednesday its wholly owned subsidiary, Country Road Group, would acquire Politix, adding another Australian retailer to its burgeoning stable that also includes Mimco, Trenery and Witchery.
500-301 The company declined to disclose a purchase price, but sources said the company, which had $56 million revenue in financial year 2016 from its 75 stores, was valued at $60 million.
Politix, which began as one shop selling Italian-inspired suits on Melbourne’s famous fashion strip, Chapel Street, has been through a period of rapid growth under owner and chief executive Peter Sitch in the past decade.
Sydney Swans player Lance ‘Buddy’ Franklin and Socceroos star Harry Kewell pose for the Politix Spring Racing Campaign …
Sydney Swans player Lance ‘Buddy’ Franklin and Socceroos star Harry Kewell pose for the Politix Spring Racing Campaign at Flemington Racecourse in October 2014. Quinn Rooney
Mr Sitch bought the retailer in 2006. It has expanded rapidly from 16 stores then to 75 now, including 31 concession stores in David Jones’ main rival Myer.
Woolworths chief executive Ian Moir said the company intended to “roll out the brand in David Jones and into New Zealand”.
Woolworths to 70-774 maintain Myer concessions
However there are no plans to remove Politix concessions from Myer, according to an industry source. Other Woolworths-owned retailers – Country Road and Mimco – both have Myer concessions despite the link to David Jones.
“The acquisition of Politix is a logical acquisition that will deliver value for WHL’s shareholders,” Mr Moir said.
“We are delighted to welcome the Politix team to our business. Politix CEO Peter Sitch and his team have done a fantastic job over the past 10 years growing the company to become the success story it is today and we look forward to Peter and his management team driving the next phase of the brand’s growth.”
Mr Sitch called the deal a “tremendous result” for Politix’s staff and customers.
“WHL is a world class retailer and will provide the best possible platform for further domestic growth and future international expansion of our brand,” he said.
Politix is targeted at 18 to 35-year-old men and counts Socceroo star Harry Kewell as a long-time ambassador.
Edison Partners acted as the exclusive corporate advisor to Politix.