Earlier this year, in a significant move within the retail sector, Kinbow LLC acquired a majority stake in fashion retailer Ashley Stewart Inc. from parent company ASI Holdco LLC. This strategic purchase aims to boost Kinbow’s footprint in the value fashion retail market, a growing segment that targets women sizes 10 to 36.
While the financial details of the deal were not disclosed, Kinbow said it plans to maintain the operational status quo. This includes continuing with the existing management team and keeping all of Ashley Stewart’s physical and e-commerce stores operational.
Ram Ajjarapu, executive director at Kinbow, said the company was grateful for the support from Ashley Stewart’s stakeholders and its lender, Wingspire Capital, “which played a critical role in finalizing this deal.”
“This acquisition validates our belief in the value fashion market and represents a strategic expansion for Kinbow into the retail business,” Ajjarapu said in a statement. “Leveraging our experience in apparel and accessories manufacturing, we aim to enhance the on-trend fashion offerings that Ashley Stewart’s loyal customers expect.”
Here, Ajjarapu explains the impetus behind the acquisition and the brand’s opportunities for growth.
WWD: What motivated you to acquire Ashley Stewart?
Ram Ajjarapu: We have been involved in plus-size fashion retail for over 20 years and feel that this is an untapped market for the right combination of fashion, value, and point of view. I believe that the Ashley Stewart brand has a very strong customer following that could be further expanded by wider product offerings, strategic partnerships, and committed leadership to implement strategic growth.
WWD: Since Ashley Stewart has been a customer of yours for some time, what opportunities do you see for the growth and expansion of Ashley Stewart?
R.A.: We are looking to bring excitement and newness to the Ashley Stewart customer by striving to give her head-to-toe outfitting possibilities, and more options to shop for her family and home, as well as keep surprising her with exciting new offerings in both stores and e-commerce. Some of the new categories that we will be launching in the next six months include bridal, soft home accessories, home fragrance, gift items and shoes, as well as introducing big and tall men’s selective offerings.
WWD: Tell us more about your plans for the fashion aspect of Ashley Stewart. And why?
R.A.: We believe that this loyal customer deserves as many options as possible. We want to offer a new lane of fashion sensibility for someone who is not finding enough choices in the current mix. Adding new categories as well as expanding the existing assortment to reflect a wider variety of tastes and choices will appeal to a wider range of demographics and ages.
Starting spring 2025 we will add a capsule of junior plus offerings to both the stores and e-commerce at a competitive price point. What will set us apart from the competition is an introduction of components of the [direct-to-consumer] retailer structure that enables us to test and react to cutting-edge fashion trends that can be produced with [greater] speed to market in the U.S.A.
WWD: What other product categories do you envision adding to Ashley Stewart’s offerings? And why?
R.A.: In addition to expanding the current product assortment, we also work on celebrity collaborations, starting with capsule collections and then expanding into exclusive collections designed for Ashley Stewart. By utilizing these partnerships and opening the company to the entire celebrity social media following, we are looking to enable many more eyes on the Ashley brand.
WWD: What are your plans for enhancing the Ashley Stewart customer experience?
R.A.: Our newly revamped Ashley Stewart platform would be a comprehensive and all-encompassing destination for existing customers that are looking for a seamless omnichannel experience as well as attracting new customers by introducing interactive and engaging ways of presenting our fashion outlook. From trunk shows and appearances by guest designers and personalities to turning store experiences into free-flowing dialogue by using technology to discover new possibilities of outfitting from head to toe, we will strive to make all customers omnichannel to achieve explosive company growth.
WWD: Where do see Ashley Stewart in three years?
R.A.: Ashley Stewart serves a very important niche customer and with broader exposure both in brick-and-mortar and online there will be a trajectory for exponential growth with a brand expansion, even including international. We plan on partnering with large brick and mortar retailers for an exclusive shop-in-shop experience.
