‘Boutique’ clothes are being bought by the public at a record pace
New retail sales in Nespresso Boutique Clothing are up 15.4 per cent to a record-high $2.6bn in 2017, with retailers adding about 8,000 stores to their existing inventory.
The company said on Wednesday that the number of stores added in 2017 rose to 1.5 million, or more than five times its 2016 tally of 2.5m.
The increase comes as Nesposco announced that it was buying the boutique clothing and accessories company from rival Nespo in a $1.5bn deal.
Nespresso is owned by the Swiss pharmaceutical giant Novartis AG.
It has a market value of $1bn.
It has been selling its retail arm since July, when the company announced it was shutting down its flagship flagship outlet, in Zurich, and would instead focus on its retail business in Europe.
In the last three years, the company has seen its wholesale turnover jump by 12 per cent, with an average daily turnover of $50m.
Last week, Nespas said it had added 7,000 employees, bringing its workforce to more than 1,100 people, with the majority working in Zurich.
The Swiss company is in the process of selling its remaining business to Nespa for $1 billion, and is also considering buying a majority stake in Nespera, the fashion and beauty retailer.
Last year, Nespresso had a net loss of $921m, or about 5 per cent of its annual turnover.
CEO Fabrizio De Simone said that the company’s global business, which includes the wholesale division, would continue to be profitable, and that the sale of Nespa would benefit the company and the people of the country.