Deichmann invests 500 million euros in development
Germany's largest shoe retailer Deichmann plans to invest 500 million euros by the end of the year to modernize its own chain of stores and open new ones, as well as to expand international expansion, business digitalization and logistics capabilities.
The company plans to open about 200 new stores worldwide, with "particularly strong growth" planned in Italy, where Deichmann chairman Heinrich Deichmann says about 30 new retail outlets will be opened.
The Lebanese Azadea Group, a franchise partner of the German retailer specializing in the markets of the Middle East and Africa, is due to open the first stores in Abu Dhabi and Saudi Arabia this year after successfully entering the market in Dubai in 2019, Kuwait in 2020 and Qatar and Oman in the 2021/22 season.
The Group intends to redesign the existing network of 450 stores and continue the digitalization of retail operations. For example, a German retailer plans to install a digital foot sizing device across its entire retail chain, a service currently only available in 120 Deichmann stores.
In addition, the company continues to expand its brand portfolio. So the assortment of the retail network will be supplemented by such brands of shoes as Rieker and Airwalk.
The announced investment in development for 2023 follows the record results achieved by the company last year. In 2022, Deichmann's sales grew by 17,4% compared to the result obtained a year earlier and reached 8,1 billion euros. This “positive development was driven by the growth of its own stores and online stores, as well as successful acquisitions, for example, in the United States,” the company said in a statement. In Germany, the group posted sales of €2,5bn last year, up from €2,1bn the previous year, with like-for-like sales up nearly 9%.
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