Jojo plans international expansion
Jojo Maman Bebe, the maternity and babywear retailer based in Newport, plans to expand overseas. Managing director Laura Tenison told Insider she would test export markets with an international website this year. The company will use online sales to identify the best places to set up shops.
Jojo's multi-currency website will first target Germany, Scandinavia, the east coast of the USA and perhaps eastern Europe and Russia.
But Tenison admitted she was reluctant to go after sales in France. She said: "What I have done with Jojo is adapt a French nautical style for the UK. So I’d be slightly embarrassed to launch it in France."
Online sales should give Tenison an idea of which countries look most promising for retail outlets. Then she would look for retail franchisees: “If I can build up brand loyalty, then the franchises will be worth more.”
But she said the company was more likely to tackle the US market directly rather than through franchises: "It could be a straightforward roll-out with local partners."
Jojo is on target for turnover of £26m for the year to June 2011, up from £22m for the year to June 2010, with an earnings before adjustments (EBITDA) margin of about 10 per cent. Tenison said Jojo's turnover was growing as new shops opened, such as one in Cardiff's extended St David's shopping centre.
She said: “Business has been fantastic. Higher income groups of consumers have moved down from designer brands to brands they trust. And some people on lower incomes have come to the realisation that cheap supermarket clothing isn’t always good value for money.”
