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Bebe to Revive eCommerce with Global Brands Partnership

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Global Brands Group Holding Limited announced it’s partnership with Bebe Stores, Inc. on June 15. The aforementioned collaboration is aimed at re-launch of Bebe Stores’ eCommerce platform as well as its international brick-and-mortar stores.

This would be one of the first initiatives by the latter to reorganize its eCommerce, direct-to-consumer and international divisions under the direction of Global Brands. Through this deal, the leading female fashion retailer, Bebe Stores', will be able to meet the expectations of its targeted consumers.

Amidst the expanding global eCommerce business, it was quite a natural move by Global Brands to take over Bebe Stores’ eCommerce segment. The partnership will be directed towards expanding the company’s consumer base and creating a well knit omni-channel network from an international perspective.

This venture is expected to create growth opportunities for both Bebe Stores' and Global Brands. Bebe Stores' had been planning to widen its online business to adapt with the changing retail scenario. Backed by the renowned expertise of Global Brands, the company is now quite confident with its eCommerce platform transformation related plans.

On the other hand, Global Brands will gain from Bebe Stores’ rich brand image in the world of women‘s fashion. The former can make use of the wide reach of Bebe Stores’ products, from clothes to accessories and beyond. In order to make this venture a success, Nathan Jenden has been named the Creative Director.

The management of Bebe Stores' seems to be quite excited to have Mr. Jenden on board, given his remarkable designing expertise and proven talent in the fashion industry. Further, Bluestar Alliance LLC that had acquired Bebe Stores' in 2016 would, however, continue to manage the brand, keeping the terms of the new partnership intact.

Bebe Stores' has been struggling with its brick-and-mortar business for quite some time now, due to changed consumer habits as well as rising competition. An increasing number of consumers are shifting to online shopping, hurting the performance of brick-and-mortar stores. Such a scenario led many retailers such as American Eagle Outfitters Inc. (AEO - Free Report) , J. C. Penney Company, Inc. (JCP - Free Report) and Macy’s, Inc. (M - Free Report) to indulge in store closures. To follow suit, store closure plans are also being considered by Bebe Stores.

The tough retail landscape led Bebe Stores' to underperform the broader Zacks categorized Retail-Wholesale sector in the past three months. In the said time frame, the company’s shares fell 22.2% compared with the industry’s growth of 9%. The partnership with Global Brands is expected to elevate Bebe Stores’ performance and emerge as a successful eCommerce retailer, in addition to transforming the brands international business segments.

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