- Angela Gonzalez-Rodriguez |
The fashion group announced its new partnership over the weekend, advancing that the deal inked between Global Brands Group Holding Limited and Bebe Stores, Inc. (BEBE) is meant to re-launch Bebe Stores' e-commerce platform as well as its international brick-and-mortar stores.
The partnership will be directed towards expanding the company's consumer base and creating a robust omni-channel presence across the international markets the brand is already present in. Additionally, Bluestar Alliance LLC – which acquired Bebe Stores' in 2016 – would still continue to manage the brand, keeping the terms of the new partnership intact.
Bebe enters partnership with Global Brands to refloat e-commerce and international network
Market expects this venture to create growth opportunities for both Bebe Stores' and Global Brands. It’s worth recalling that back in March, Bebe announced its intention to shift focus from its brick and mortar stores to online, looking into widening its online business to adapt with the changing retail scenario. In this regard, having e-commerce experts such as Global Brands’ by their side has given Bebe confidence with its online transformation plans.
Meanwhile, Global Brands will gain from Bebe Stores' strong brand image, being now able to make use of the wide reach of Bebe Stores' products.
Bebe Stores' has been struggling in the U.S. shift focus , not being able to keep its brick-and-mortar business afloat as it stands now, given the changed consumer habits and even fierce competition.
The tough retail landscape led Bebe Stores' to ‘underperform’ the broader Zacks categorized Retail-Wholesale sector in the past three months, reported Zacks’ analysts in a market note this weekend, adding that “In the said time frame, the company's shares fell 22.2 percent compared with the industry's growth of 9 percent. The partnership with Global Brands is expected to elevate Bebe Stores' performance and emerge as a successful e-commerce retailer, in addition to transforming the brands international business segments.”