Apr 26, 2019
German footwear retailer Deichmann to expand in Middle East, China
Apr 26, 2019
German footwear retailer Deichmann is thriving. Last year, the group recorded a rise in sales value, in the number of pairs of shoes sold and in the number of physical and e-stores, despite the fashion market’s tough situation. In the last financial year, the Essen-based group, which is active in 25 European markets and in the USA, increased its sales by 2% over 2017 after exchange rate adjustments, reaching €5.8 billion. Last year, the group sold 178 million pairs of shoes worldwide via its physical stores and online, a number which was 1% higher than the previous year.
As of the end of 2018, Deichmann operated 4,053 monobrand stores (up from 3,989 in 2017), 40 e-stores (up from 36 the previous year) and had 40,698 employees (up from 39,564 in 2017), across 25 European countries and the USA. The group claims it created about 1,300 new jobs in the course of last year. Of Deichmann’s total sales, 60% were generated outside Germany.
For 2019, the group is heralding major expansion plans. Deichmann is planning a record investment expenditure of €285 million overall, of which €102 million will be allocated to Germany. The investment is directed at upgrading the group’s existing stores and opening new ones, but also towards expanding internationally and boosting digital operations.
Opening in Dubai
Deichmann will be starting a new chapter by landing in the Middle East in 2019. The first Deichmann store in the region will open in Dubai this summer. In another first, it will be a franchised shop, with local partner Azadea. In the first half of 2019, Deichmann will also enter the Chinese market, featuring a selection of its shoe range online on T-Mall Global. In 2019, the group is also planning to expand into Estonia and Latvia. The Deichmann-owned MyShoes chain, currently deployed in Germany, Austria and Switzerland, is also set to broaden its footprint by opening its first stores in Poland.
In the USA, the Deichmann group finalised the acquisition of Kicks USA, a company founded in 2002 in Philadelphia which currently operates 64 stores in the country’s East coast, chiefly in the cities of Philadelphia and New York and in the state of New Jersey, in addition to an e-shop. In future, Kicks USA stores will be run together with those of the Snipes chain, part of the Deichmann group from 2011, and since then constantly growing.
Deichmann recently arrived in France, where it appointed a new general manager, and is doing well in Italy too. In 2018, it sold 3.6 million pairs of shoes there, via the 70 monobrand stores it operates directly, mostly in northern and central Italy. As of December 31 2018, Deichmann had 568 employees in Italy.