LOFT Jeans fit out Europe

Turkish textile is prized for its fine quality and long-standing traditions. Though most people associate Turkey with carpets and soft towels, Turkey is also known for its splendid design and clothing. LOFT Jeans is a Turkish clothing brand with 30 years of garment manufacturing and a strong background in exports. LOFT is officially entering the retail franchise sector, with plans to expand throughout Eastern Europe, welcoming franchisees along the way.

The youth-oriented fashion business operates under Ergolu Holding, which is one of the top Turkish companies in branded export for the textile industry. As a result, LOFT has a degree of stability in the apparel industry. LOFT strives to attract young customers who like keeping up with the newest fashion trends. LOFT's distinct brand identity is reflected in its modern style, free-spirited attitude, and eye-catching ice blue denim.

In Turkey, LOFT operates 50 mono-brand stores with a total floor space of 13,200 m2. Moreover, LOFT has approximately 1,000 sales points in select department stores. However, in the wake of the Covid-19 crisis, the company recognised that is a chance for growth and has actively sought to cultivate new trade possibilities.

Dogan Tarhan, International Sales Manager at LOFT said, “During the pandemic, we, like many other businesses, had to rethink our strategies and investments. We saw the pandemic as an opportunity to expand our brand across Europe. We viewed it as a prospect and took advantage of it. These were difficult times for everyone, yet even difficult times provide possibilities”

Over the next three years, LOFT Jeans intends to open 100 shops in Turkey and 80 locations throughout Eastern Europe and the MENA region. Dogan announced his “company's goal is to establish 80 franchise and company-owned shops in potential areas around the world. These destinations will include Russia, Ukraine, Romania, Serbia, and Morocco, among others,” he said. 

LOFT Jeans also aims to develop new distribution and franchising channels in these regions, such as e-commerce and online platforms. “We aim to replicate the same highly effective organisational and management structure that we achieved in Turkey,” explained Dogan.

FRANCHISE UNITS

Company owned:

• 50

Franchised:

• 15

SUPPORT FOR THE FRANCHISE

• Site visit every 2 months.
• Ongoing support from headquarters.
• Company operations manual.
• Brand book.
• Ongoing Training.
• Product Training.
• Sales Techniques.
• System integration and use of software.
• Visual Merchandising.
• Ongoing Marketing Consultancy.
• Support for yearly marketing plan.
• Guidance for contents.
• Store opening support.
• Onsite training for sales.
• Onsite training for software use.
• Onsite training for visual merchandising.
• Support for placement of the products.

BASIC NETWORK REQUIREMENTS

Ideally a successful franchisee candidate should have:

• Capital to support a multi-store roll-out.
• Retail industry experience with infrastructure to handle logistics, distribution and sales.
• Good relationships with mall management and landlords of high street stores in the area.

KEY FIGURES

• Franchise Fee: Negotiable.
• Royalty Fee: EUR 0.
• Gross Margin: 55% - 58%.
• Store Design capital: EUR 70.000.
• Required surface area: 250 m².