Skechers planning GCC expansion


December 15, 2014 | By RetailME Bureau

Skechers

US-based sports shoe brand Skechers is investing between $27 million and $30 million to open new stores across the GCC. The brand is planning to open 142 additional stores, bringing the total to 180 by 2018, on the back of strong sales. The company has 1, 000 stores globally and aims to have around 2,000 by 2018. “The company is growing nicely. This year, we’ll end at approximately $2.4 billion in revenue from $1.84 billion in 2013. In 2015, we’re looking at anywhere from $2.8 billion to $3 billion in sales,” says Skechers president Michael Greenberg.

Skechers’ revenue in the GCC is expected to grow from $50 million in 2013 to $95 million this year. Greenberg expects the Middle East, where there are 61 Skechers stores, to account for around 3% of the company’s revenue next year. The company is anticipated to ship over four million pairs of shoes to the Middle East in 2015 from 2.5 million in 2014. It aims to ship over 100 million pairs of shoes worldwide by the end of this year.

Next year, Skechers will focus on developing its product categories, aside from opening new outlets. “The strategy is to continue to grow the business methodically and strategically; grow our different categories of footwear, meaning if there’s a category of footwear that we’re in and we only command a certain amount of shelf space, we can grow and become a more important supplier to that retailer,” Greenberg explains. Skechers currently sells a range of shoes for men, women and children including sneakers, sandals and boots, to name some, with an average price of $60.

The company’s shoes are in the mid-market and above, according to Greenberg. On whether the company is considering entering the luxury segment of the market, he elaborates, “It’s not a business that is a focus of ours. We are volume-minded. We want to touch a lot of consumers. You can’t produce, ship and market 100 million pairs of shoes if you’re in the luxury category.”

The company is not planning to grow through acquisitions at present, but it is considering it. “We are not in the acquisition mode because we believe our focus should be on Skechers and there are tremendous growth opportunities within Skechers. So we can continue to grow organically for years to come, but I would not rule out that acquisitions won’t happen,” Greenberg concludes.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Laura Manning, Managing Director & Founder, BRW Society

Launched in 2019 by Laura Manning, UAE-based homegrown brand BRW Society completes 

Continue Reading

April 5, 2024 | By Rupkatha B
Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B
Hani Weiss, Chief Executive Officer, Majid Al Futtaim Retail

In 1995 regional retail conglomerate Majid Al Futtaim introduced Carrefour to the 

Continue Reading

February 26, 2024 | By RetailME Bureau
Prashant Parameswaran, Managing Director and Chief Executive Officer of Tata Consumer Soulfull

Tata Soulfull, a leading name in the ‘good-for-you’ snacks and breakfast cereals 

Continue Reading

February 22, 2024 | By Rupkatha B
Jean-Luc Graziato, Chief Commercial Officer of Majid Al Futtaim – Retail and Alia Al Harmoodi, Acting CEO of the Environment, Health and Safety Agency

Majid Al Futtaim – Retail, which holds the exclusive franchise to operate 

Continue Reading

February 20, 2024 | By RetailME Bureau
Krishna Dhanak, Managing Director, Alpen Capital

In an exclusive interview Krishna Dhanak, Managing Director, Alpen Capital shared insights 

Continue Reading

February 19, 2024 | By Rupkatha B
Majed M. Al-Tahan, Co-founder & Managing Director, Danube Online

As digital transformation across the retail industry continues to accelerate, the expectations 

Continue Reading

December 19, 2023 | By RetailME Bureau
Frederic Levy-Perrault, CEO, Al Raya Supermarket

Saudi Arabia-based grocery retail chain Al Raya Supermarket serves over 100,000 customers 

Continue Reading

December 15, 2023 | By RetailME Bureau
Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding

BinDawood Holding has a rich Saudi heritage, spanning over 50 years, 38 

Continue Reading

December 13, 2023 | By RetailME Bureau
Majid Al Futtaim Retail commits to Collaborative Impact Goals at COP28

Majid Al Futtaim Retail, which owns the exclusive rights to operate Carrefour 

Continue Reading

December 8, 2023 | By Rupkatha B
BinDawood Holding Company earns Honorary Shield for Compliance Excellence

BinDawood Holding Company has earned an Honorary Shield, a distinguished recognition by 

Continue Reading

December 6, 2023 | By RetailME Bureau




Download Images RetailME Magazine