MQ acquires the Swedish Joy-chain with 54 stores.
”Women in the 50+ age group account for more than half of the Swedish womenswear market and are today the market’s fastest growing customer group,” says MQ CEO Christina Ståhl.
MQ Holding AB today, together with its interim report, announces it is acquiring the retail-clothing company Joy Shop AB from Aktiebolaget Segulah.
Through the acquisition, MQ gains 54 stores in Sweden and an online shopping channel. The purchase price, paid in cash, amounts to 38.5 million SEK.
Retail-clothing company Joy was founded in 1971 and today runs 54 wholly owned stores in Sweden as well as online shopping. The company reported sales of 258 million SEK and an operating loss of 9 million SEK for the 2015 financial year.
Joy has 350 employees and its head office is in Gothenburg. It targets women in the 50+ age group.
“With Joy as part of our Group, we will reach an attractive customer group that has strong buying power and a keen interest in fashion. Women in the 50+ age group account for more than half of the Swedish womenswear market and are today the market’s fastest growing customer group. Subsequently, we see potential for growth in this segment and have a clear strategy for developing the company. At the same time, we see interesting synergies in many areas,” says Christina Ståhl, CEO of MQ.
JOY will be run as a separate retail brand within the MQ Group.
MQ press release says Joy and MQ complement each other with two clearly defined target groups. MQ’s target group includes men and women with the mindset of a 30-to-40 year-old, while JOY targets women in the 50+ age group.
“Joy gains more fashion expertise and retail know-how with MQ as its new owner. This puts Joy in a stronger position for the future and enables us to learn from MQ’s previous development journey. We look forward to working together with MQ to continue to develop our customer offering and further build our well-established brand,” says Charlotte Nordén, CEO of Joy.
The transaction is conditional on the Swedish Competition Authority’s approval.
MQ also released their interim report for their second financial quarter.
Net sales amounted to SEK 433 million (417), up 3.8 percent. Like-for-like sales increased 2.5 percent. Operating profit was 16 million SEK (26), corresponding to an operating margin of 3.6 percent (6.2).
For the first six months, net sales is up 5.3 percent. Like-for-like sales increased 4.6 percent.