Market trends

Retailers and leisure businesses that focus on value are performing especially well in the current environment. Consumer products and retailers selling non-discretionary consumables have thrived, even though commodity prices and exchange rate fluctuations have affected margins. Other key trends include internationalization and driving business online. Advent is one of the most active private equity investors in the sector, with a particular focus on subsectors likely to outperform the general market. Near-term we see opportunities in distressed brands and concepts that may recover quickly when coming out of recession, if positioned well and adequately capitalized.

Stokomani

We first recognized the investment potential of the discount and value retailing trend 15 years ago when dollar stores opened up in the US. We look for companies with a strong supply chain, efficient logistics, product development opportunities and an engaging in-store environment – companies like Stokomani, the leading off-price retailer in France. In Stokomani customers can choose from more than 20,000 brand and own-label items across multiple categories. Many are sourced at low cost through clearance channels established with major consumer brands – one of the reasons why Stokomani is able to maintain higher margins and outperform its peers, even in difficult times. Our growth strategy is to continue to expand in France through store openings, product and channel development and an online model.

www.stokomani.com