francesca's Acquires Richer Poorer to Bolster Digital, Wholesale Operations

francesca’s, a nationwide chain of fashion and accessories boutiques based in Texas, acquired the 13-year-old digitally native brand Richer Poorer on Tuesday. Effective immediately, Richer Poorer is now a wholly owned subsidiary of Francesca’s. The terms of the deal weren't disclosed, but according to Andrew Clarke, CEO of francesca’s, the impetus was Richer Poorer’s experience with e-commerce, its wholesale partnerships and its Gen Z customer base. All three — e-commerce, wholesale and Gen Z — are areas where Clarke is targeting growth for francesca’s. The retailer's primary demographic is 18- to 25-year-olds, and since the launch of its tween-focused brand Franki in April 2022, it has been seeking a younger audience.

Total Retail's Take: francesca's is taking a strategic approach to growing its business through acquisitions of brands that align with its exiting business and/or fill a need. This latest purchase will push francesca's further into wholesale, a targeted need — Richer Poorer has wholesale relationships with Revolve, Bloomingdale’s, and Nordstrom. Furthermore, Richer Poorer brings with it to francesca's a growing e-commerce business. The apparel brand increased its direct and online sales from 30 percent of revenue to 75 percent between 2020 and 2021. Lastly, with another brand in the fold, francesca's figures to benefit from economies in scale when it comes to production, supply chain and shipping operations.