Deichmann, one of Europe's largest footwear retailers. The group from Essen, Germany, is celebrating 110 anniversary this year since its founding and announced that it closed 2022 by achieving significant results such as, for example, sales of more than €8.1 billion, 23% higher than in 2019, the last financial year not affected by COVID-19, when it had reported worldwide gross sales of €6.4 billion.
For 2023, Deichmann will focus on self-funded expansion, modernising its store network, expanding its brand portfolio, and optimizing its omnichannel strategy.
In 2022, the group sold 178 million pairs of shoes globally through its own physical stores and online shops. Out of its total sales, 67% were achieved outside Germany, through a total of 4,565 stores and 41 online stores and had more than 48,000 employees by end of December 2022.
"Having dealt with the crisis effectively by taking advantage of available opportunities, we look to the future with optimism," said Heinrich Deichmann, chairman of the Management Board of Deichmann SE. "Approximately 9% like-for-like growth in all Group stores is a very positive result, and if you also include online stores, we grew by almost 15%." In the year of its 110th anniversary, Deichmann is still a healthy company ready to face the future."
"We have also succeeded in attracting other target consumers to our stores and online store thanks to our assortment of fashion designs and famous brands, and even the more expensive brands have sold well. We have also continuously invested in improving our stores and digital services, and our courage has been rewarded by most consumers," continued the manager.
The company also wants to make major investments in 2023, amounting to about €500 million, what it considers the highest investment ever allocated by the company in a single year.
Investments will be mainly for modernizing the store network and opening new stores, as well as for international expansion, digitalization, and logistics. In addition, more stores will be opened in the Arabian Peninsula after the successful market entry in Dubai in 2019, in Kuwait in 2020, and in Qatar and Oman in 2021 and 2022. The first stores are also scheduled to open in Abu Dhabi and Saudi Arabia in 2023.
The new concept that will shape the image of the stores was developed as part of an international collaboration and is now being implemented throughout the Group. The new store concept features a modern design, large surfaces, muted colors and significant space dedicated to sports brands. The ceilings are open and complemented by sails. In addition, identifying colors guide customers through defined areas and newly refurbished spaces.
The large women's and men's sports department houses a wall dedicated to Adidas, Nike, Puma, Fila, Reebok, Asics and Skechers sneakers. "Sports is still one of our main themes," Deichmann continues. "We have intensified our strategic partnerships with sports brands to make the latest innovations available to everyone. And that's why we are also selling sportswear and accessories in some of our stores and in our online shop."
Deichmann's brand portfolio has also been further expanded recently. "In our portfolio we have brands that are successful today, our range for example now also includes selected models of the popular New Balance brand," concludes Heinrich Deichmann. Expanding the range with Airwalk, a well-known name in skater fashion, and the functional footwear brand Rieker is also planned for 2023.
The Deichmann Group was founded in 1913 and is still wholly controlled by the founding family. It operates in 31 countries worldwide, operates more than 4,500 stores and 41 e-commerce channels and employs more than 48,000 people.
In addition to Deichmann stores, it owns the My Shoes chain, Dosenbach, Ochsner Shoes and Ochsner Sport in Switzerland, vanHaren in the Netherlands and Belgium, and Rack Room Shoes in the United States. It also owns the Snipes Group, which operates through stores and e-commerce channels in Europe and the United States.
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