The Original Factory Shop
The Original Factory Shop is a value retailer with an offering equivalent to a mini department store. Its outlets are predominantly located in small towns and its trading strategy is to offer a highly cost-effective and convenient alternative to consumers who prefer to shop locally. The growth strategy is to continue rolling out stores across the UK. We backed the existing team led by CEO George Foster and David Williams, our retail Operating Partner, has been appointed Chairman.
A robust business
The Original Factory Shop is a value retailer with over 100 outlets across the UK selling a wide range of discounted merchandise including clothing, sportswear, footwear, electrical and household goods, gardening, toys and gifts, fashion accessories and beauty products. A large element of the goods it sells are good value branded or special purchases or were originally made for other high street stores and supermarkets.
Given the location of its stores, The Original Factory Shop faces limited local competition. There is also a significant opportunity to open additional stores across the UK.
Expertise and management backing
Unusually for Duke Street, we acquired The Original Factory Shop through an auction. One of the principal reasons for participating was our interest in value retailing having come close to acquiring a similar business in France.
George Foster and his team had extensive value retailing experience and particular expertise in buying, a vital part of what makes this business successful. Under George's stewardship, the company accelerated the store opening plan.
In January 2009, Angela Spindler, formerly Managing Director at Debenhams, succeeded George as Chief Executive. Prior to Debenhams, Angela spent 10 years at ASDA where she held a number of key board level roles and was the Executive Managing Director of the succesful George brand.
A viable concept for development
A key element of what makes The Original Factory Shop different from other value retailers is the fact that most of its outlets are situated in small towns rather than urban high streets or out-of-town shopping centres. As well as offering great value for money to people who want to shop locally, this gives customers the convenience of shopping at a department store without having to travel to a bigger town.
Our market due diligence confirmed that the company’s concept had substantial potential for growth, and identified a large number of suitable sites across the country.
We are now working closely with the management team as they continue to open more outlets across the UK, with a target to open 30 new stores a year.