Steve Madden to Expand GCC Footprint via Joint Venture

Apparel Group and Steve Madden have entered into a joint venture.

The Dubai-based retail group has signed an agreement with the U.S. fashion company to expand the brand’s global footprint, according to a Friday (Jan. 27) press release that appeared in Zawya and other news outlets.

The release said the new agreement will allow Steve Madden to grow its presence in the Gulf Cooperation Council (GCC) region, as well as Africa, Turkey and Central Asia.

Focused mostly on GCC markets, Apparel Group states on its website that it operates over 2,000 retail stores representing more than 80 brands globally.

“Apparel Group’s philosophy has always been to be associated with the leading international brands with the vision to ensure, increase, and solidify their commercial status on a global scale,” Apparel Group CEO Neeraj Teckchandani said in the announcement.

He added that “we are proud to be partnering up with Steve Madden and further expanding our strong retail footprint in the GCC region.”

Steve Madden currently has 11 stores in the UAE and 21 locations across the GCC region. Under the joint venture, Apparel Group plans to open 13 new Steve Madden stores this year, according to the release.

“Since entering the GCC market over ten years ago, we have experienced significant growth to our business,” Ian Funk, president of international at Steve Madden, said in the release. “Given the importance of this critical market for our consumer and brand, we are pleased to be entering into a joint venture agreement with best-in-class partners, Apparel Group, and look forward to continued growth in the region as we capitalize on our strong momentum.”

While some apparel retailers are struggling in the current economic climate, Steve Madden can look to its peer in the footwear market Crocs for an example of one business that has managed to increase sales

As PYMNTS reported earlier this month, the firm expects year-over-year revenue growth of 53% in 2022 — higher than its previous guidance of 49% to 52% growth driven by increased revenues from both the Crocs and Heydude brands.

Revenue of the Crocs brand is expected to be up 15% in 2022 while Heydude revenues are expected to have surged by 70% last year, PYMNTS reported.

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