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News Takeovers and Acquisitions

A surprising alliance in the footwear market

On 17 September 2018 Gino Rossi signed an agreement on business cooperation with the leader on the Polish retail footwear market CCC. Under the agreement, CCC will be sub-licensed to use Gino Rossi’s trade marks and signs, including the production of goods using them, committing in return to purchase goods produced by Gino Rossi (to be precise, to purchase 120 000 pairs of shoes for 2019 and 180 000 in 2020). Thus, Gino Rossi will use the production capacity of its factories in Słupsk and Elbląg and will enter all the markets where the current CCC chain is present, reaching sales both in its channel of stationary shops and in the Internet channel.

At the end of the first half of 2018, the CCC chain consisted of 462 stores in Poland (and 1 164 in total). It is not surprising, therefore, that respondents to a survey conducted by PMR in January 2018, when asked about the brand of the most frequently chosen shoe shops, indicated CCC chain stores. One third of the survey participants mentioned the CCC brand. The second was Deichmann, indicated by 14%, for whom the answers were already fragmented.

CCC was most frequently mentioned by respondents aged 45-54 (44%). In the group of the youngest respondents, the leading position of the CCC network was weaker (23%), and preferences seemed to be very diverse.

Gino Rossi has 77 stores in the country and in the study quoted above it received only 1% of indications (they were given mainly by women aged 35-44).

For Gino Rossi, a company struggling with limited working capital, the appearance of the brand in the leader’s showrooms may quickly bring sales growth. CCC, on the other hand, will expand its offer in the higher price range.

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