Dubai-based luxury retail and distribution giant Chalhoub Group has acquired a majority stake in London-based marketplace and personalised shopping platform Threads Styling.
The sum of the deal has not been disclosed.
The motive behind Chalhoub’s acquisition of Threads Styling lies in the platform’s robust social media content, which accounts for more than half of its revenues, according to the brand.
Sharmila Murat, chief investment officer at Chalhoub Group, said: “We saw great potential in Threads’ approach to digital commerce and a new way to inspire and connect with our core luxury consumer.
“We truly believe this is a business that can scale through expertise and personalised service with assistive technology both in our region and globally.”
The deal also provides an auspicious opportunity for Chalhoub Group to stand out among its rival regional luxury goods distributors by fostering its e-commerce sector through online store Ounass.
Threads Styling’s founder and chief executive Sophie Hill is looking forward to strengthening the brand in the GCC.
“We have such a loyal customer base in the region and with Chalhoub Group’s presence in the market, we have a unique opportunity to enhance our capabilities and continue Threads Styling’s journey alongside a strategic partner,” she said.
Initially established in 2010 as a personal shopping service, Threads Styling has prospered into a global luxury retail business via a commercial chat service that unites affluent consumers with internal and external personal buyers.
Today, it boasts more than 400 luxury brand partners in its portfolio.
According to a report by Chalhoub Group, sales of luxury goods in the GCC witnessed a 23 per cent increase last year compared with 2019, outpacing pre-pandemic demand.
The market is projected to hit $11 billion next year, growing at a compound annual growth rate of 7 per cent.
