Footasylum secures a £35 million sustainable funding package from HSBC UK.
- The funding will support UK and international growth, including new store openings.
- Sustainability goals are integrated into the funding, offering potential benefits for Footasylum.
- The company aims for significant environmental improvements, targeting net zero emissions.
- Footasylum plans to enhance digital capabilities and brand development.
Footasylum, a renowned footwear and sportswear retailer, has successfully secured a £35 million funding package from HSBC UK. This financial package is aimed at supporting the company’s growth both domestically and internationally, with plans for new store openings in the UK cities of Aberdeen, Warrington, and Doncaster. Additional stores are expected to open in Rotherham and Wrexham later this year.
The funding arrangement includes a sustainability improvement loan, with integrated goals to enhance Footasylum’s environmental footprint. If the retailer makes improvements to its sustainability rating, as monitored annually by an EcoVadis ESG rating, the company can benefit from reduced interest rates. Footasylum has committed to achieving a carbon net zero target for its scope 1 and 2 emissions by 2030 and scope 3 emissions by 2040. An ongoing initiative to offset carbon emissions began in 2020, alongside goals to have a fully electric or hybrid fleet by 2025, with 70% of logistics already reliant on biodiesel.
HSBC UK’s funding will not only facilitate physical expansion but also enable Footasylum to explore international acquisition opportunities. The retailer’s Merry Hill store in the West Midlands will be expanded threefold. Over 100 new jobs are anticipated with these expansions. Acquired by Aurelius in 2022, Footasylum has already been actively enhancing its presence by opening and upsizing stores, including a flagship outlet on Oxford Street, London.
This loan will also be pivotal in Footasylum’s technological enhancements, specifically a new modular, mobile-first omnichannel retail solution, to provide a seamless digital-first customer journey. The investment supports the progression of Footasylum’s exclusive brands such as Zavetti Canada, Alessandro Zavetti, and Monterrain. Continued partnerships with social media influencers remain a key aspect of Footasylum’s content marketing strategy.
Nick Scott, CEO of Footasylum, noted the significance of this funding, describing it as a ‘key milestone’ in their growth and environmental strategy. Zubayr Atcha from HSBC UK echoed this, reflecting on the flexibility the funding provides to drive Footasylum’s expansion and sustainability plans, further strengthening their presence in the street and sportswear market.
This strategic funding positions Footasylum for significant growth and sustainability advancements in the coming years.
