Accent Group acquires sneaker-business Subtype
Subtype, a Sydney-based independent retailer, stocks limited release sneakers from brands including Nike, Adidas and Common Projects, as well as apparel from suppliers such as Drole De Monsieur and Ader Error.
The range is markedly different from that offered by Accent Group’s existing brands, such as Skechers, Platypus and Hype DC, which hold more midmarket appeal.
“The acquisition allows us to reach a new market segment via an impressive retail channel and highly curated brand,” Accent Group CEO Daniel Agostinelli said.
Agostinelli said Subtype would benefit from Accent Group’s recent investment in a digital hub, robust e-commerce platform and automated warehouse, which will enable faster online delivery.
Accent Group plans to expand Subtype’s retail offering. Three new boutiques in the works over the next six months, though careful consideration is being paid to maintain the brand identity, as well as its existing community of sneaker buyers and collectors.
Subtype co-director Leith Testoni, who will stay on, was enthusiastic about the acquisition.
“We’ve carefully created a beautiful, immersive experience at Subtype, an incredible sneaker offering, loyal customer base and now the retail power and logistics support from Accent, the best operators in Asia-Pacific,” he said.
Earlier this year, Accent Group recorded a record net profit of $47.1 million – a 17.9 per cent increases year over year – with digital sales having increases 131 per cent for the period.
“We’ve made good progress against our growth plans, including increased digital sales and new stores along with a significant improvement in gross profit margin through vertical brand sales and reduced discounting,” said Agostinelli.
The group is expecting to open 30 new stores across it’s brand line-up, including Timberland, Dr. Martens, Hype DC, Vans, Platypus, Skechers, Merrell and now Subtype, with a further 30-40 stores possible within the next 2-3 years.
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