GEELONG retail success story Cotton On will establish international regional hubs as it aims for 2000 stores, its CEO Peter Johnson told a business breakfast.
And he saw no reason the company’s recent phenomenal growth could not continue even further.
“We are addicted to growth,” Mr Johnson said.
He revealed that the company would undergo a major reorganisation to regionalise its international operations while retaining global head-office status in Geelong.
Regional hubs would be established around the world where much of the execution phase of expansion would be moved into the market in the next 12 to 18 months, he said.
“All the decisions about what happens in each store are made in our head office in Geelong but that’s not a model that’s going to get us to 2000 stores.
“We need to take our decision-making to the market. We’re also hiring local retail experts in the countries we are expanding to.
“It’s an evolution for the business but it is part of the first truly global strategy for Cotton On.”
Mr Johnson said Cotton On would soon open stores in Brazil, Qatar and Indonesia, adding to shops already established in New Zealand, USA, Germany, Hong Kong, Singapore, Malaysia, South Africa, Thailand, The Phillippines and United Arab Emirates.
“We’ve learned a lot of lessons since out first international stores opened in New Zealand a few years ago,” he told the Geelong Business Network breakfast.
Mr Johnson said the company attacked the challenges of international retailers rolling out stores in Australia and online shopping with aggressive growth.
The company’s growth relied on staff learning and development, including a soon-to-be established “Cotton On Uni”.
“This will be a three-or-four-year process where employers will go through and gain a qualification, all on the job and in partnership with training organisations in the region.”
Mr Johnson said a superstore concept had breathed new life into expansion plans, creating a single outlet with all Cotton On brands under one roof and doubling sales.
“We’ve also spent the last 12 months realigning by brand, with a general manager in charge of each one.”
Mr Johnson said Cotton On Foundation’s popular Run Geelong charity fund-raiser would expand to Run World, with similar events in Wollongong, Newcastle, Ballarat, Los Angeles, Johannesburg and in Asia, with a target of 20,000 participants.
