After buying Takko in 2007, Advent International supported the company’s management in its transformation from a hard discount to a value fashion brand, and in accelerating its international growth strategy and expanding its business.
The number of stores was increased, existing shops were modernised, operational systems and processes were significantly strengthened and the product range was expanded. In addition, Takko expanded into new countries in Central and Eastern Europe and Western Europe, and a new store concept – 1982 – was launched in inner city locations. Before its sale in 2011, Takko evolved from a functional product organisation focused on sourcing, into a system and process orientated organisation focused on customers and stores.
As partner at our side, Advent supported us and actively accompanied the development of our business.
Stephan Swinka, CEO, Takko
What did the business need?
- Like for like growth through system and process improvement
- Expansion in existing markets and entry into new geographies
- Innovation through extended product range and new format roll-out
How did private equity backing create lasting value?
- Strengthened existing management team with new CEO, CFO and COO hires
- Improved merchandising skills
- Focused on key metrics such as sales per square metre, like for like growth and footfall
- Initiated a store portfolio reshape and redesign programme, refurbishing 1,160 stores in 14 countries
- Expanded into new geographic markets in Central and Eastern Europe and Southern Europe
What outcomes did private equity investment achieve?
- Increased store network from 1,050 to close to 1,500 between 2007 and 2010
- Strengthened domestic position, increasing market share by more than 50%
- Doubled non-German revenues
- Increased workforce from approximately 10,000 to 12,000
- Increased net sales by 30% between 2007 and 2010
- Significant pay down in net debt to well below industry average