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Lässig, Stylisch, Bequem Press Release DEICHMANN Group grows by 8.3 percent in 2015 – Sales revenue over €5 billion for first time Over 172 million pairs of shoes sold worldwide / Omni-channel strategy continued / 168 new stores planned for 2016 ESSEN, 16 February 2016. In 2015 Europe’s largest shoe retailer, DEICHMANN, was able once again to record an increase in sales revenues, total shoes sold and the number of branches. Sales revenues for the group, which is active in 23 European countries and in the USA, rose by 8.3 percent from €4.9 billion to €5.3 billion (€4.6 billion net). The increase in sales revenues after adjustment for exchange rate effects is thus 3.1 percent. In 2015, the group sold 172.3 million pairs of shoes through its branches and online shops. As of 31 December 2015, the group operated 3,710 branches (2014: 3,600) and employed some 37,300 people (2014: 36,150). DEICHMANN SE, the market leader in the German and European shoe retail trade, is continuing to grow both nationally and internationally. In 2015, the corporate group reported positive developments in sales revenues, in the number of shoes sold and in its network of stores. “2015 was challenging for us, as it was for the entire industry”, said Heinrich Deichmann, Chairman of the Management Board of DEICHMANN SE. “Winter in particular, which failed to materialise last year in many parts of Germany, caused problems for the industry.” Whilst shoe retailers in Germany had to accept a decline in sales revenues in general, the DEICHMANN group grew by 4.3 percent in Germany. “Despite the difficult market situation, 2015 was a good year for us. With the DEICHMANN parent company, supplemented by our various concepts, and with our omni-channel concept, we have kept pace with the times. We feel that we are well equipped to deal with the future challenges facing us and the sector as a whole”, Deichmann commented. A clear profile and growth through our own resources Sales revenues for the corporate group, which is headquartered in Essen, totalled €5.3 billion (€4.6 billion) in 2015. In 2014, gross sales revenues for the group were 1 €4.9 billion, which is a rise of 8.3 percent in 2015. After adjustment for exchange rate effects, the increase is 3.1 percent (like-for-like: 1 percent). Worldwide, the group sold 172.3 million pairs of shoes. These results meant that the company was even able to improve on the record-breaking figures of the previous year. With a workforce totalling around 37,300 people in Germany and abroad, the company employed around 1,150 workers more at the end of 2015 than in 2014. “The European shoe market is in a state of flux. In these times, it is important to have a clear, strong profile. And with our DEICHMANN concept, this means outstanding fashion expertise with attractive own brands offering good quality at a reasonable price”, says Deichmann. “Considering that the shoe trade is gradually consolidating, our good results are not something that should be taken for granted.” The company’s profit situation has also developed satisfactorily. “We are able to continue to grow without any external funding, which means that we are still an independent business”, emphasises Deichmann. “This is an important foundation for our activities”. Almost 60 percent of sales revenues come from abroad In the past year, the corporate group was represented by 3,710 branches in 23 European countries and in the USA (2014: 3,600). It earned 59 percent of its sales revenues abroad. DEICHMANN operates branches under its own name in Germany and 20 other countries. The Group also includes DOSENBACH-OCHSNER AG in Switzerland, vanHaren Schoenen B.V. in the Netherlands and Rack Room Shoes and Off Broadway in the USA. Further subsidiary companies are Roland SE and OCHSNER Sport in Germany and MyShoes SE in Germany, Austria and Switzerland. In 2015, the company concentrated on pushing further forward with expansion in its existing markets. But there was international growth with various formats within the corporate group. For example, OCHSNER SPORT, the market leader in the Swiss sports retail trade, opened its first branches in Germany in 2015. Two branches are now operating: one in Neu-Ulm and one in Ludwigsburg. The DEICHMANN Group crossed another national border with its German subsidiary MyShoes: It started 2 operating in Austria in the autumn and now has three stores there. The group is growing with Snipes in Germany, and is currently expanding in Austria, Switzerland, the Netherlands and Spain. The German subsidiary of the Swiss sports sector leader OCHSNER SPORT took over the German sports chain Sperk GmbH & Co. KG in January 2016. Sport Sperk operates 12 branches throughout Germany, which will be run in the future as OCHSNER SPORT stores. 74.5 million pairs of shoes sold in Germany Last year, the group operated 1,391 stores in Germany (59 of which belonged to ROLAND and 38 to MyShoes). This is 62 more than in the previous year. 74.5 million pairs of shoes were sold, which is a slight decrease of 1 percent (2014: 75.2 million). At the same time, however, sales revenues rose to €2.1 billion (net: €1.77 billion). This is 4.3 percent more than in 2014 (€2.02 billion). Like-for-like, this is an increase of 1.6 percent. At the end of 2015, the DEICHMANN Group employed 15,502 people (2014: 15,201), including 3,223 apprentices. Around 210 new jobs are planned for 2016. In 2015, 1,132 young people started training with DEICHMANN in Germany. 769 people now work at the Essen headquarters. Here too, there has been steady growth, since the group’s headquarters provides a wide range of services for the international group of companies. 168 new openings planned in 2016 In the current year, DEICHMANN will continue to consolidate and modernise its network of stores and to expand across national boundaries with innovative formats within the group of companies. In total, the DEICHMANN Group is planning to open around 168 new branches worldwide in 2016. In addition, 144 stores are to be modernised. In Germany, 72 new branches are planned in the corporate group, with 25 being closed as part of the location optimising concept. 99 shops are to be modernised. 3 In the current year, the corporate group is planning to invest around €233 million. Around €103 million of this will be invested in Germany. The funds will be used primarily for the modernisation and expansion of the branch network and for investments in logistics and IT. In the United Kingdom, DEICHMANN-SHOES UK will be moving into a new administration building which covers an area of 1,500 square metres. Since entering the market 15 years ago, the British DEICHMANN company has grown steadily and now operates 85 branches and an online store. E-commerce expanding: “Ship to Home” is running – “Click & Collect” is coming DEICHMANN is also pushing forward with expansion in the digital world. The company was the first shoe retailer to open up an e-shop online, back in 2000, and since then its online services have been moving swiftly towards omni-channel retailing. The Group currently operates 25 different online stores internationally. Further e-shops in the various markets, along with a range of associated services, are planned for 2016. “Within our omni-channel strategy, we consistently link elements of bricks-and- mortar retailing with those of our online stores”, says Heinrich Deichmann. “It should be possible for our customers to buy the shoes they want anywhere with the minimum of effort. We want to make changing between retail channels as simple and convenient as possible.” The concept is taking off: In some DEICHMANN companies, 10 percent of sales revenues are already achieved through omni- channel services. In 2015, DEICHMANN in Germany started its “Ship to Home” service. That means that customers in the branch can order and pay for shoes that they currently cannot find in the branch and have them sent to their homes free of charge provided they are available. The service is already popular with customers. “This is taking us a further step towards seamless shopping”, says Heinrich Deichmann. 16 DEICHMANN companies offer this service. The new “Click & Collect” service is also ready to go in Germany. It will soon offer customers the option of selecting and 4 ordering shoes in the online store and then collecting them from their nearest branch. Exclusive blogger collection and cooperation In the autumn/winter 2016/2017 season, DEICHMANN will once again be cooperating with a well-known fashion blogger. Working with bloggers is another part of the company’s omni-channel strategy. After cooperations with the Swedish street-style icon Caroline Blomst, Italian Veronica Ferraro and New York star blogger Hanneli Mustaparta, this is the fourth Blogger Collection. “We want to create special highlights for our customers outside the classic season too, and provide them with an incentive to buy”, says Heinrich Deichmann. This also includes cooperations with stars such as Sylvie Meis recently. Last year, the presenter put together a party collection with 24 stylish high-heel designs, with the motto “Sylvie Meis for DEICHMANN”. There will once again be a series of special collections and campaigns in 2016 too. For example, DEICHMANN is continuing the successful “President of Sneakers” campaign with actor Oliver Korittke. Media contact: DEICHMANN SE Corporate Communications Ulrich Effing/Sonja Schröder-Galla Tel.: +49 (0) 201 / 8676 – 960, Tel.: +49 (0) 201 / 8676 – 962 [email protected] [email protected] DEICHMANN SE, which has its headquarters in Essen, Germany, was founded in 1913 and is still 100% owned by the founding family.
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