Softlogic Brands (Pvt) Ltd. is Sri Lanka’s only fashion retailer, holding exclusive rights for leading international brands which are trend setting and enjoy widespread brand loyalty and quality acceptance. We added a number of franchise partnerships during the year – ‘Tommy Hilfiger’, ‘Crocs™’ and ‘Pepe Jeans’ were introduced most recently. This has assisted us in driving the market
Softlogic Retail will continue with its expansion strategy, while Softlogic Brands has successfully signed exclusive distributorship agreements with many other international brands. ‘Peter England’, ‘Van Heusen’, ‘Louis Philippe’, ‘Only’, ‘Jack & Jones’, ‘Vero Moda’, ‘Puma’ and ‘Allen Solly’ are new apparel brands with Softlogic. We will also introduce Luxottica’s eyewear portfolio inclusive of ‘Prada’, ‘Alain Mikli’, ‘Armani Exchange’, ‘Arnette’, ‘Burberry’, ‘Bvlgari’, ‘Chanel’, ‘Coach’, Dolce & Gabbana’, ‘Emporio Armani’, ‘Giorgio Armani’, ‘Michael Kors’, ‘Miu Miu’, ‘Oakley’, ‘Polo Ralph Lauren’, ‘Tiffany & Co.’, ‘Tory Burch’, ‘Versace’ and ‘Vogue Eyewear’.These brands will be retailed in exclusive showrooms as well as in our departmental stores – Odel and Galleria.
ODEL MALL :Studies reveal that Sri Lanka’s per capita mall stock versus its per capita income of the country is relatively low within the region. Colombo has about 8 limited space malls with around 10 in the pipeline. Considering the Sri Lankan preference for organised retail space, the paucity of outlets in existing malls and the relatively few malls in the pipeline, the idea of an Odel mall concept came to life. Odel’s mall in the prime Colombo location it occupies, will add to retail dynamism in the country. This 400,000 sq.ft mall will be in operations by 2018
THE STORY OF THE ACQUISITION OF ODEL :Odel is one of the largest retailers of apparel and fashion lines in Sri Lanka, with its brand ideals of satisfying “Mind, Body & Soul”. The company focuses on creating fashion trends and delivering value to its shoppers by offering compelling selections of local and imported apparel, fashion accessories and footwear, and a home store. Odel is the country’s strongest local fashion brand and serves a broad spectrum of customers. Softlogic was offered the 44.5% of the shareholding of the promoters of Odel, in September 2014. The cost of accepting the offer, at a price of Rs.22.0 per share was approximately Rs.2.7 Bn. As required by the Company Takeover’s and Mergers Code 1995 as amended in 2003, a joint offer was then made by Softlogic Holdings and Softlogic Retail to the other shareholders. Parkson Retail Asia Limited, who held 47.46% of the share capital accepted the offer. Taking note of other acceptances also, a total of Rs.5.6 Bn, shared between Softlogic Holdings and Softlogic Retail, was ultimately invested in acquiring a 93.39% stake in the company
Odel is a household name in the Sri Lankan apparel market, attracting approximately 3,500 footfalls on weekdays and over 5,000 on weekends. Softlogic Holdings through its subsidiary, Softlogic Brands, possesses the largest international branded apparel and fashion accessory portfolio in Sri Lanka. These lines complement Odel’s range of products excellently
when they are combined, giving the shopper a unique experience. The addition of Odel to our business portfolio has already created significant synergies through: • Odel’s footfalls becoming available to Softlogic‘s branded apparel and accessories when those are sold by Odel. • Sharing of back-end infrastructure and optimal use of available retail store space. Softlogic Brands has over 35,000 sq. ft. of prime retail space in Colombo, in which 19 brands are retailed. The combination of this with Odel’s makes us a very powerful player. Odel owns a large land area in Ward Place, Colombo 07, whose underutilised area is planned to be converted to a high-end mall, in which rental space is priced at a premium. It also holds land in Battaramulla, which is planned to be disposed of.
Odel has been a favourite shopping centre for Sri Lankans, expatriates and foreign visitors. This retailer has been the one to attract customers from both middle and high income categories selling a good mix of exclusive as well affordable quality range of various related-products. Building on these strengths, we have gradually housed some of our own international apparel section at Odel. Odel was already selling Nike and Levis products, and our international watch range, before the acquisition. All our apparel brands other than Charles & Keith and French Connection have now been placed at Odel. We also plan to offer other leading local brands at Odel. Our aspirationis to make Softlogic/Odel, the choice shopping destination for people across all strata of society. The Odel Mall Shopping malls are popular in Sri Lanka with the greater sophistication and international awareness of customers and the convenience malls offer. We will be constructing a premier shopping mall using German designers at Odel’s flagship store at Kannangara Mawatha, Colombo 07. The present Odel store would continue its operations with the mall being planned at the under-utilised land base. Top German designers and architects have already developed the blue print of this mall. This mall will feature an extensive retail space to house some of the best known brands both locally and abroad to better cater to local and international tourists and retail customers.