Earlier this week, City Chic confirmed that it had acquired European plus-sized eTailer Navabi for AUD$9.6 million.
But let's take a closer look at the Navabi brand and what it provides to City Chic.
Navabi is a German-based online marketplace that was established in 2009 and was owned by JPC United GmbH before acquisition.
The eTailer sells both third-party women's plus-sized brands and its own brands including Amber & Vanilla, Annalisa and Navabi Kollektion.
It has customers in multiple European countries including Germany, France and the UK, and provides City Chic with an in to the €40 billion European plus-size market.
As previously reported, Navabi generated AUD$16.6 million in sales revenue and clocked 5.8 million website visits in 2020.
Prior to the pandemic, annual traffic to the site exceeded 10 million visits.
The acquisition will allow City Chic to launch its brands into the fourth key geography (Europe) after launching in the US and the UK over the past two years, while also growing its global digital customer base.
The introduction of City Chic Collective's brands - City Chic, CCX, Avenue, Evans, Fox & Royal and Hips & Curves - to Europe will begin through the wholesale channel, utilising the Navabi platform.
Additionally, City Chic may be able to take advantage of the existing talent in the business, having acquired the existing Navabi team as part of the deal.
City Chic will work with the eTailer's founders and senior management through the transition and the go-forward structure will be assessed as the business becomes part of the City Chic Collective.
Meanwhile, the benefits for the Navabi business come in the form of improved profitability, with City Chic set to introduce its lean, customer-centric operating model to the eTailer.
Additionally, the Collective will leverage its global supply chain for Navabi's owned brands.
City Chic Collective purchased 100% of the shares in JPC United GmbH, the company which solely operated Navabi.
The business will rebuild Navabi's inventory over the next six months, after it was reduced during the pandemic.
Trading and profitability are expected to improve in 2022.