PPR Group, the French retail conglomerate that owns Redcats USA and several other e-commerce properties, has closed a deal to sell off one of its oldest multichannel brands.
Yesterday PPR announced the final terms to sell Conforama, a multichannel retailer of discount home furnishings, to Steinhoff International Holdings Ltd. in a deal valued at $1.65 billion (1.2 billion euro). The sale to Steinhoff, a South African holding company with annual sales of about $6.2 billion (4.5 billion euro) with business units in household goods and related industries, includes the sale of Conforama.fr, which sells a diverse array of discount home furnishings.
The sale of Conforama and Conforama.fr has a direct impact on PPR’s e-commerce operation, which generates web sales of about $2.9 billion (2 billion euro) annually.
By selling off Conforama, PPR will now concentrate on growing its e-commerce operation and its remaining brands which include Redcats, No. 31 in the Internet Retailer Top 500 Guide, and Fnac.fr, Puma.com, Gucci.com, BottegaVeneta.fr, YvesSaintLaurent.com, Balenciaga.com, Boucheron.com, SergioRossi.com, AlexanderMcQueen.com and StellaMcCartney.com. “The disposal of Conforama would constitute a further step forward in the execution of a strategy pursued since 2006, designed to establish PPR as an international group of global brands within the luxury, sport and lifestyle sectors,” says PPR.
Conforama has annual sales of about $4 billion (2.98 billion euro) and has 239 stores worldwide, including 189 in France. Conforama also sells in Switzerland, Luxembourg, Spain, Portugal, Italy and Croatia.