In line with Terranova’s policy worldwide, DIZZ Group opened their second Terranova megastore in Malta last weekend in Zabbar Road, Fgura.
Among those present at the opening were DIZZ Group CEO Diane Izzo, Terranova Malta General Manager Denise Bonello and Simona Berardi, Marketing Manager of Teddy SpA, owners of the Terranova and Calliope brands, represented by DIZZ Group in Malta.
According to Ms Izzo, DIZZ Group has taken a major turn since becoming a plc and adopting a formal corporate structure. “We have a team of people in place to continue to position the company for significant growth,” she said.
Although she remains fully committed to the business and hands-on, the structure that has been put in place ensures continuity and the achievement of sustained success. “Over the coming two years we have plans to build a transhipment hub in Malta – a site for which has already been identified – that will be used by many of our franchises, enabling us to increase our potential to do business through local manufacturing. Two franchises have already signed contracts with us so that we can embark on manufacturing in Malta.”
Also in the plans of the DIZZ Group is an e-commerce platform with the ultimate aim of increasing turnover even further. Employment has also doubled in the past couple of years from 100 and reaching to 200, and the number of fashion brands represented has increased to 12.
Ms Bonello said that DIZZ Group was moving with the times in opening the new Terranova megastore concepts. “Today life is very fast-paced and we need to support our customers more. The concept of Terranova is changing. We cater for all customer needs within the megastore, and as a result one can find a large selection of products for men, women and children in one department store.
Among the key features of the Terranova megastores are practicality, enhancing the customer shopping experience through excellent customer service and making shopping comfortable through having a kids’ area.
Both the Terranova megastore in Fgura and that in l-Iklin are supplied directly from Italy without going through any local warehousing. Both concept stores house the latest technology in warehouse support systems. “With this system in place we can serve the customer faster by replenishing the stock more often,” Ms Bonello said.
The two new megastores have also got space ready to take on a new household line that is currently in development in Italy. Ms Izzo said: “We don’t need to move once again and look for another megastore. We are already thinking in advance so that when Terranova grows in future, we will grow with them.” The new line of Terranova CASA will be introduced early next year.
“It is the strategy of Terranova globally in terms of future development to open megastores where possible since you can see the full product line under one roof,” Ms Berardi said. “I carry the values of the brand and attempt to fine tune them each time according to the market, the country, the town or city, whether it is a historic city centre outlet, a commercial centre or a shopping destination to achieve a better opening event.
“Every market has its needs, so what is important is to marry the brand’s values with the market where we are present. Then, in Malta, we have an affiliate who knows the market perfectly, knows what to do and reflects accurately the brand’s values. This for me is fundamental.”
Ms Berardi said that despite the tough economic climate, Teddy Group has grown consistently at a rate of over 17% for over 25 years. It has not taken on any bank debt and invests what it earns thanks to its solid business partners. Group turnover has reached €560 million with an EBITDA (earnings before interest, tax, depreciation and amortisation) of €89 million and retail outlet takings approaching €1 billion annually.
Teddy Group affiliates have opened 560 stores in Italy (46% of group sales) and are currently present in 49 countries of which 34 in Europe, five in Asia, six in the Middle East, two in Africa and one in North America. It currently employs 2,323 people and invests in 150,000 hours of corporate training each year. There are 4,500 employed in the retail outlets of its franchise holders.
Teddy Group does not give economic support to its affiliates for their marketing initiatives, Ms Berardi said. “What we do give them is all the material they need in the various outlets: images, images with a message, sales events, promotional campaigns and videos – all supplied by us centrally. Normally, in franchising, a percentage of sales turnover is deducted from the affiliate for publicity. We do not ask for that deduction but we do not invest in their initiatives.”
The Terranova megastore in Fgura, spread over three floors and over almost 2,000 m2, is the largest on the island. It currently contains the women’s collection including lingerie, the men’s collection, the kids’ line and sportswear on separate floors.
Visitors to the Terranova Fgura megastore last Saturday were greeted by Mickey and Minnie Mouse characters, who gave out balloons to the many children who accompanied their parents into the outlet, and also had the opportunity to win free gifts and benefit from in-store promotions.