Topshop’s top man, British billionaire Sir Philip Green, has bought a 25% stake in Australia’s online shopping club Ozsale.
After last year’s plans to list the company on the ASX never eventuated, the Aussie company now looks set to list its initial public offering on the London Stock Exchange.
The online deals site, which began in 2010, is currently estimated to be worth about $500 million and has an annual turnover of about $180 million.
The connection to Sir Philip Green, who is the chief executive of the Arcadia Group, which owns retailers such as Topshop, is expected to provide Ozsale with further growth opportunities.
Sam Yip, senior research manager for Telsyte, told SmartCompany the connection would be beneficial for both parties.
“It will bring Ozsale more sales and a pathway into another consumer sector which they haven’t had before,” said Yip.
Yip said it made sense for the retail giant to partner with the discount chain, because discount buying was proving to be a pillar of ecommerce.
“All of the big retailers who are not known to be discounters have changed their websites and advertising to have more space dedicated to bargains and online specials in recent years,” said Yip.
He said if big retailers wanted to gain quick market share and establish an audience, it was an obvious move to partner with a successful discount brand like Ozsale.
“In the past five years, when it comes to sales and online transactions, it has been proven that you don’t kill your brand by partnering with a discounter, you enhance it.”
SmartCompany contacted Ozsale for comment but did not receive a response prior to publication.