U.S. discount store operator TJX Companies Inc has acquired a 25% stake in Russian low-cost apparel retailer Familia for $225 million as reported recently.
U.S. discount store operator TJX Companies Inc has acquired a 25% stake in Russian low-cost apparel retailer Familia for $225 million as reportedrecently.
Familia, which has more than 275 stores in Russia selling clothes, shoes, accessories and household goods, enjoyed 24% turnover growth in the first nine months of 2019 compared with the same period of 2018, with like-for-like sales rising 7%.It said the market has significant potential for further growth.
Discount retailers have flourished in Russia as sanctions and a decline in global prices for oil, Russia’s most important export, dealt a blow to the situation and consumer spending.
After the acquisition, TJX, the owner of T.J. Maxx and Marshalls stores, has the right to elect one representative to Familia’s board, Familia said. It was further added that its founders, along with Baring Vostok and Goldman Sachs (GS.N) remained shareholders of the company and were committed to its long-term growth.