Joint venture formed to boost Gucci's footprint in Philippines

MANILA, Philippines — SSI Group, Inc. subsidiary Store Specialists, Inc. announced on Wednesday the creation of a joint venture company with G Distribution B.V. (Gucci), seen to strengthen the profile of Gucci in the Philippines.

In a disclosure to the Philippine Stock Exchange, SSI Group said the joint venture company, Luxury Goods Philippines, Inc. (LGPI), will start operations on June 1 and is set to own and operate all Gucci stores around the country. 

SSI Group's board approved the joint venture on Tuesday.

"The joint venture between SSI and Gucci further strengthens the cooperation between Gucci and SSI, and is expected to further accelerate the growth of the Gucci brand in the Philippines and enable operating efficiencies, as Gucci and SSI transition from a franchisor-franchisee relationship, to joint venture partners," SSI Group said in a statement.

G Distribution BV is a Netherlands-based company owned by French luxury retail corporation Kering, which owns Gucci.

SSI Group is a publicly-listed Western goods retailer company that operates and sells 95 luxury and fast fashion brands around the country. Under its slate, it hosts Armani Exchange, Zara, Burberry, Lacoste, and Boss among others.

The disclosure said LGPI will receive an initial capitalization of P350 million. Gucci will own 75% of the joint venture company while SSI will be in possession of 25%.

Shares in SSI Group closed trading flat at P1.27 apiece on Wednesday.