Client:
Phase Eight

Reporting level:
Senior Management

Task:
To undertake detailed vendor due diligence as part of the bid process to obtain additional outside investment for the UK-based womenswear retailer

What we did:

The due diligence assignment was designed to address the following issues:

• The womenswear market dynamics relating to Phase Eight and key competitors
• Evaluation of the Phase Eight concept and customer base
• Evaluation of the retail distribution, business model, store roll out plan and future growth strategy
• A comprehensive work programme involving management interviews and primary customer research including:

           - Online survey of Phase Eight target market
           - Exit survey and focus groups with Phase Eight customers

• Market and competitor analysis, including range and price audit, competitor benchmarking
• Trading data analysis considering like-for-like performance and critical success factors
• Store roll out review
• ecommerce review

Result:

The vendor due diligence report produced by Pragma provided crucial assistance to the bidding teams, presenting important insight on the Phase Eight customer, brand, financial and operational performance.

In February 2011, TowerBrook Capital announced a significant investment in the womenswear retailer.

"Pragma did an excellent piece of work for us on the Phase Eight customer and brand, as well as our financial and operational performance and the extent of our rollout opportunity. What particularly impressed us was their ability to go beyond the call of duty and provide fresh ideas that really challenged our thinking."

Ben Barnett, Finance Director, Phase Eight