Market trends

Consumer spending has been affected by continued economic uncertainty. With household incomes squeezed by rising costs, inflation, and employment worries, consumers are expected to remain cautious in 2011. Moving into 2011, many sponsors and corporates are well-capitalized, heightening the need for disciplined targeting and evaluation of opportunities. 2011 will be a year of further performance polarization: there will be winners, who have survived continued market pressure, and there will be those in need of restructuring and repositioning. Both scenarios will create investment opportunities.

Building successful brands

Poundland and Takko demonstrate our ability to help our portfolio companies build stronger brands with clear value propositions that position them for long-term growth beyond our ownership.

Our seven year partnership with Poundland transformed both company performance and perception of its brand. Working with Advent, management grew the business through a successful UK store rollout program from just 70 stores to more than 260 at exit. During our ownership, significant investments were made into Poundland's infrastructure in order to create a demonstrable platform for growth beyond our investment horizon.

By working alongside management we have supported Takko’s successful transformation from a hard discount to value fashion brand while continuing to expand in Germany and Central and Eastern Europe. Achieving this transformation involved developing all aspects of the business – strategy, brand, product range, pricing, inventory management and one of the most comprehensive store refurbishment programs in the history of German retail.

Both businesses grew successfully in the difficult economic climate of the recent past and are well positioned for continued growth under new ownership

www.takko-fashion.com
www.poundland.co.uk