Charanga has a record year with high turnover and 30 new shops

The children’s wear company from Malaga expects to end the year with a gross turnover of 36 million euros and a total of 210 shops

NURIA TRIGUERO

Friday, 22 September 2017, 12:36

Charanga has put behind it the problems which led it to file for bankruptcy in 2013. In fact, in terms of volume of business it is in better shape than ever. This year this family firm, which sells childrens clothing, expects a record gross turnover of 36 million euros, and net turnover of 26 million. This is an increase of 15.7 per cent compared with the figures for last year, says the managing

director, Manuel de la Maza.

The company has also been opening new shops. Charanga will end this year with 30 new establishments, bringing the total to 210. We have had to close some shops which didnt fit our new business concept, says De la Maza.

The new strategy has been to reduce the number of Charangas own shops compared with the franchises (the ratio at present is 65-35, with the firms own flagship stores being located in the most exclusive streets in each town or city), while encouraging more people to open franchises. At present, the company is keen on maintaining a presence in major stores such as El Corte Inglés, and has 30 of these to date.

This Malaga firm sells its clothing in the form of three different brands: Charanga, the original, which has the largest number of shops (130), Charanga Outlet (30) and Top Top, with 50. The latter is a type of low-cost shop, but the quality is the same, the clothes are just less elaborate, says Manuel de la Maza. This brand was created at the worst point in the crisis, to adapt to the fact that consumers had less money to spend, but it continues to do well. In fact, ten new Top Top stores have opened this year.

We have learned from our mistakes and from difficult situations, says De la Maza, who believes that the company has come out of the crisis stronger and more financially self-sufficient. He also says that Charanga is now looking at making exports one of its priorities. The main area of expansion will be the Middle East, where it works through master-franchises. In Saudi Arabia, for example, it has signed contracts for 60 shops with a local partner, and seven of these are already open. In UAE it has eight shops, and in Europe it has just opened its first two shops in Italy.

The company is also working on increasing its online sales, and has just set up a team of employees to focus exclusively on this aspect.

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