The Alexander Report

We have been covering Kate Moss new fashion launch with particular interest, not only for the line itself, but also for the business strategy behind it. So I think it’s fitting to do a small piece on Sir Philip Green.

Mr. Green successfully runs Topshop, England’s affordable high street retailer, and is the owner of the Arcadia Group and Bhs (British Home Stores), Arcadia is the parent company of Topshop.

Green, Britain’s 4th richest man, started in business as a small time trader. He later bought a failing retail operation and successfully turned it around selling it for a profit. He became the CEO of a public men’s wear company called “Ambers Day” that after declining profit, was forced to resign. Mr. Green ran other retail operations including Debenhams and Allders, JJB Sports, and led the acquisition of Sears Retail Chain (different than Sears, Roebuck and Company)

After a failed hostile bid to acquire Marks and Spencer (another British retailer, and competitor), he bought an ailing department store selling household items called British Home Stores (BHS) for £200 million. He successfully turned the company around and re-branded it to Bhs. The chain is currently worth £1.2 billion.

Mr. Green now wants to bring his fashions to America. Not only with the Fashion launch of Kate’s line, a smart choice, because the name is recognized in the UK as well as the US. But also, with the prospective purchase of Barneys (here is 2 articles for the financially minded, Jones apparel to sell Barneys, and a one from the International Herald Tribune)

We are waiting to see how this story develops. We need to point out that he has not sold a single item in the US market and might not have the right eye for American tastes. However, for a successful retail operator, the purchase of Barneys could be the right foray into US soil.