Chalhoub Group acquires majority stake in UK digital luxury retailer Threads Styling
Dubai-based luxury retailer Chalhoub Group has acquired a majority stake in British digital luxury retail and personal shopping platform Threads Styling as it seeks to expand its digital footprint globally.
Threads Styling founder and chief executive Sophie Hill is retaining the shares she owns in the business, while Chalhoub Group has acquired the remaining stake, the Dubai-based company said in a statement on Tuesday.
He did not disclose the size of his stake or the value of the investment.
The partnership is part of the Chalhoub Group’s digital acceleration drive and investments in digital platforms and brings new capabilities and opportunities for customer engagement and personalization, he said.
“This partnership is a key step in our strategy to expand our digital presence and global reach, while remaining focused on delivering exceptional experiences to our luxury consumers, and inspiring and influencing a global audience through content. innovative and engaging digital technology,” Sharmila Murat, chief investment officer at Chalhoub Group, said.
Sales of luxury goods in the GCC rose 23% last year from 2019, exceeding pre-pandemic demand in March report by Chalhoub Group revealed.
The market is expected to reach $11 billion in 2023 from $9.7 billion in 2021, growing at a compound annual rate of 7%.
The growth of GCC luxury sales will be fueled by factors such as increased demand in Saudi Arabia, the return of international tourists to the UAE, including Chinese and African travellers, the emergence of new consumers of luxury with a growing appetite to shop locally and accelerating e-commerce, according to the report.
The company’s latest deal will allow London-based Threads Styling to strengthen its business in the GCC and the wider Middle East region, according to the statement.
Threads Styling offers a personal shopping service through social platforms and chat-based commerce, catering to Millennials and Gen Z customers across its channels on Instagram, Snap and TikTok.
The partnership with Chalhoub Group “will further strengthen our proposition within the GCC,” Ms Hill said.
“We have a very loyal customer base in the region and with the presence of the Chalhoub Group in the market, we have a unique opportunity to enhance our capabilities and continue Threads Styling’s journey alongside a strategic partner.”
Threads Styling will continue to operate as an independent entity with Ms Hill at the helm, the statement said.
Rothschild & Co acted as financial advisor and Freshfields Bruckhaus Deringer acted as legal advisor to the Chalhoub Group on the transaction.
Broadgate Advisors acted as financial advisor and Latham & Watkins acted as legal advisor to Threads Styling.
Updated: September 27, 2022, 2:10 p.m.