Delta Brands Israel is expanding its operations into the European market. The company announced today that it has won the exclusive franchise to establish and operate the Bath & Body Works network in several key countries in Europe.
As part of the deal, signed with PCAB SWITZERLAND GMBH, Delta will establish a European subsidiary to operate an online store and 20 physical stores in Germany over the next four years. Thanks to the open borders within the European Union, the company will be able to expand its online operations to France, the Netherlands, Belgium, and Austria.
"We continue to implement the group’s strategic plan, aiming to ensure growth and profitability across all its brands in Israel, alongside expanding our operations into Europe," says Anat Bogner, CEO of Delta Brands Israel. "Bath & Body Works’ choice of us as the official franchisee in Germany, in addition to our franchise in Israel, is proof of the group’s strength and the operational excellence that has accompanied us over the years."
Initially, the company will open five stores in Germany within 15 months of signing the agreement, after which it will assess, together with the franchisor, the potential for further expansion. The agreement, with terms similar to those of the Israeli franchise, has been signed for a period of seven years, with an option for a seven-year extension.
The European move comes at an interesting time for Delta, which currently operates 224 stores in Israel under various brands, including eight Bath & Body Works locations. The company, which went public on the Tel Aviv Stock Exchange in 2021 with a valuation of NIS 1.3B, plans to expand the American chain's presence in Israel to 30 stores by 2027.
This new move marks the transformation of Delta Brands Israel into a significant player in the European arena, joining a series of strategic initiatives the company has undertaken in recent years.