DLF Brands ends partnership with Alcott

DLF Brands, a subsidiary of DLF that retails fashion brands

in the country, has ended its agreement with Italy-based brand Alcott. Timmy Sarna, Managing Director, DLF Brands says they are shutting down Alcott stores as it is not performing too well in India. Sarna points out that the company has ended the franchise partnership started with Alcott in 2008. However, it is unclear whether Alcott will now tie up with another Indian retailer. "Some brands are not able to survive in a competitive market such as India, and Alcott is one of them," Sarna added.

DLF Brands, which has about 15 Alcott stores across the country, plans to shut down its last operational Alcott store, located in a south Delhi mall, later this month. Alcott is among the foreign fashion brands that have had a mixed fortune in India. In 2011, Alcott's senior executive Salvatore Colella had said that the brand was doing well and there were plans to convert the partnership with DLF into a joint venture.

DLF Brands had a turnover of Rs 300 crores for the fiscal ended March 2012. And it is bullish on the domestic consumer market as it plans to increase other fashion and home decor labels in its portfolio, including Forever 21 and Kiko. Sarna says DLF will open 40 stores in the next one year with an investment of Rs 50 crores. Moreover, DLF is inking a 561:49 joint-venture with Italian cosmetics brand Kiko and plans to roll out 700 sq. ft. exclusive stores across the country. While with Forever 21 it plans to open stores even in smaller cities beyond metros. DLF also has plans to open more stores of Mothercare, Claire's and Sunglass Hut.