By guest authorAva Szajna-Hopgood of Retail Gazette
- Ted Baker signs new clothing deal with Next
- Agreement replaces current licensing deal with Debenhams
- Both companies will sell the children’s wear products through Next’s retail and wholesale business and Ted Baker websites
The fashion retailer has signed a five year deal with Next to produce and sell Ted Baker children’s wear from spring 2020.
The companies will now work together on products, selling them through Next’s retail and wholesale business and Ted Baker’s websites.
The partnership covers clothes, shoes and accessories for babies and children. It replaces Ted Baker’s children’s wear licensing deal with Debenhams, which will end in February.
Ted Baker noted the deal will further the expansion of its children’s wear business, but that it did not expect a material financial impact this year or next year from the agreement.
“Product licensing is a proven and highly successful pillar of Ted Baker’s strategy to expand as a global lifestyle brand. It enables us to carefully develop the brand in new, relevant categories by leveraging the specialist product expertise of our carefully selected partners,” said Ted Baker Chief Executive Lindsay Page.
“As a multichannel retailer with global capabilities and wholesale experience, Next is the outstanding partner to take Ted Baker forward in this category, which we believe will deliver significant growth in the coming years.”
Back in June Ted Baker told investors it expects annual profits to fall by as much as 20 % amid “extremely difficult trading conditions”.
The fashion retailer issued a profit warning after group revenue fell 1.1 % on a reported basis, down 2.9 % at constant currency in the 19 weeks to June 8.
The warning comes as the retailer finds itself in the midst of an HR policy overhaul after founder and former chief executive Ray Kelvin resigned in early March due to sexual harassment allegations.