We aim to invest up to USD $3 bn in a few retail businesses that we believe can become leaders by moving with and leading long-term trends. Initially, L1 Retail is focusing on investing in retail businesses in Europe, including the UK, and emerging markets. Subsequently, the focus will move elsewhere, including North America.
We aim to add value through our deep sector and strategic expertise as well as our familiarity with data and financial markets.
Stephan DuCharmeL1 Retail Managing Partner
L1 Retail has a strong investment team, which is seeking investment opportunities and is supported by a world-class Advisory Board. We know the retail market well. Our investment team and the Advisory Board have guided many retail businesses to success through the years.
Customer expectation is changing fast
The retail market is in significant flux, driven by changes in society, demographics and technology. We are looking for long- term investments in retail disruptors. In everything we do, we want to remain close to the consumer.
L1 Retail is looking at investments in food retailing, which is open to consolidation and where we have significant experience in building growth-oriented operating models. We are also considering health and beauty and speciality retailing models that can be rolled out internationally, based on data and global supply chains. We will overlay digitalisation opportunities across any retail business we invest in.
Proactive internationally renowned retail Advisory Board
We have appointed an Advisory Board of internationally renowned retail leaders and specialists. They are deeply involved in supporting the investment team.
Karl-Heinz Holland served eight years as Chief Executive of Lidl Group, the pioneering German food retailer.
Clive Humby, one of the founders of dunnhumby (today part of Tesco), was pioneering the use of data in retail organisations long before the existence of ‘big data’.
John Walden has been at the forefront of multi-channel, consumer-driven retailing for more than 20 years. Most recently, as Chief Executive of Home Retail Group, John drove the digital transformation of Argos.
Directionality of retail
While retailing will continue to evolve at a rapid pace, some trends will impact the industry over the long term and, as such, will feature prominently in our investment strategies.
The level of online connectivity will only increase. Retailers’ customer offerings will have to adapt and even take advantage of such connectivity. Physical stores, e-commerce, hub-and-spoke supply chains and data will come together in various combinations to help satisfy customer needs.
The transparency of the internet makes shoppers smarter. Therefore, value-for- money will feature predominantly in sustainable retail concepts. The intelligent value space, directed at the needs of the middle class, is where we want to help build large companies with leading positions in their markets.
Using data to help retailers satisfy customer needs and manage supply chains and store operations is invaluable in creating a sustainable competitive advantage.
Today’s busy lifestyles favour retail concepts that feature geographic proximity and convenience. Health and wellness are also increasingly on consumers’ minds.