Breaking the symbolic €5 billion barrier, the Deichmann group raised its global gross revenues in 2015 by 8.3 percent to €5.3 billion. Net revenues increased to €4.6 billion, and they were up by 3.1 percent on a currency-neutral basis and by one percent on a comparable store basis. The group sold a total of 172.3 million pairs, marginally more than in the previous year judging from the information provided by the company.
The volume declined by one percent in Germany to 74.5 million pairs, but sales grew by 4.3 percent in the domestic market to €2.1 billion, with a 1.6 percent increase on a comparable store basis. The figures indicate that Deichmann raised its market share slightly in its home country, reaching a level of around 17 percent.
In addition to its websites, the group operated 1,391 stores in Germany at the end of 2015, or 62 more than a year earlier, including 59 Roland stores and 38 MyShoes shops. A recent survey shows that it is regarded by German customers as the best fashion and footwear retailer in terms of the price/benefits ratio, ahead of C&A and H&M.
About 59 percent of the total turnover was generated in 22 other European countries and in the U.S., where Deichmann trades under the Rack Room and Off Broadway banners. The group owns Dosenbach-Ochsner in Switzerland and van Haren Schoenen in the Netherlands.
Deichmann is expanding some of its local chains into other countries. Ochsner Sport, which has become the largest sporting goods retailer in Switzerland, has opened its first two stores in Germany and bought a German chain of sporting goods shops. The German MyShoes chain entered Austria last autumn and is now operating three shops there.
The total number of stores around the world grew last year to 3,710 from 3,600 in the prior year. They employed 37,300 people. The group is planning to add 168 more stores in 2016, while renovating 144 existing locations. Deichmann's plans in the home market include the opening of 72 stores, the shutdown of 25 shops and the modernization of 99 others. Snipes, a chain of sneaker shops controlled by the group, is growing now in Germany as well as in Austria, Switzerland, the Netherlands and Spain.
The family-owned company said its results were satisfactory, making it independent of outside financing. The group has budgeted investments of €233 million for this year, including €103 million in Germany. It will open a new head office for the U.K. market, where it currently operates 85 physical stores and an online shop. Some of the budget will again go into the development of a more comprehensive multi-channel retail structure, which currently contributes about 10 percent of the total turnover.
The number of e-commerce sites has risen to 25 from 19 last year, and more are in the pipeline. Deichmann is gearing up to introduce a “click & collect” function after launching a “ship to home” service in Germany last year, whereby customers can order shoes that they cannot find a particular store and get them sent to their home.