Deichmann with record result: how the shoe dealer defies the crisi

Schwere Zeiten für Schuhhändler: Seit Jahren kämpfen die Geschäfte mit Kundenschwund. Denn längst haben sich große Online-Player wie Zalando oder Amazon auf dem Markt breit gemacht. Und auch die Modeketten wie H&M oder Zara bieten inzwischen Schuhe an - und die sind meist modischer und günstiger als in den Schuhgeschäften. Laut dem Bundesverband des Deutschen Schuheinzelhandels (BDSE) schrumpfte die Zahl der Schuhhändler allein zwischen 2010 und 2014 um mehr als zehn Prozent.

While smaller, owner-managed shops disappear and the big chains like Reno or Görtz also feel the headwind, Deichmann defies the trend. The family business, which was founded in 1913, was able to report a new record result in 2016. While the industry recorded a sales minus of two percent, Deichmann & APOs; s sales in Germany grew by 5.9 percent to 2.2 billion euros.

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Deichmann: expansion and acquisition

But why is Europe & APOs; s biggest shoe dealer successful, where other retailers fall to their knees? This may be due to the cheap shoes, which drive sales up-but the accusations against the Essen shoe business are also increasing. There are regular reports of hunger wages and exploitation. Most recently, ARD took over Germany & APOs; s Schuhimperium.

Deichmann himself says that expansion into new markets will boost growth. And also acquisitions like last in autumn 2016, when Deichmann took over the Buffalo brand-however, it does not place it as its own brand in the Deichmann stores, but maintains the distribution channels and the self-reliance of the brand. But the real recipe for success of the Essen Group is the online strategy-and it is now 17 years old.

Online strategy convinces

Already in 2000, the Essen Group opened its online shop. For comparison: the internet retailer Zalando has only been available since 2008. Today, Deichmann benefits from the network activities. "our sales development is also largely driven by online growth," says Heinrich Deichmann, Chairman of the Board of Directors at Deichmann.

The strategy of the Essener: they interconnect the on- with the offline world. In larger shops there are now touch screens, through which customers can view the entire range. If a model is out of print in a branch, customers can get the shoe delivered home. If the shoe doesn & APOs; t like it, it is possible to return it by post or in branches. In addition, the company is expanding the mobile accessibility of the shop.

The omnichannel tactics appear to be coming up and are now being adapted by competitors. Industry experts Don & APOs; t wonder, because the number two and three on the shoe trade market-Reno and Görtz-have only hesitantly jumped on the online trend. A big mistake, as it now turns out. Because other, new players are taking the place of the old established companies.

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Reno launches new online shop

Reno also gained competition from the network. In 2015, the company was sold, almost a year ago it became known that the financial investor Capiton and the largest Turkish shoe retailer Ziylan Group joined the shoe chain. In autumn 2016, the new strategy for the online appearance became known-and this strongly reminds us of Deichmann & APOs; s ideas. Reno was awarded the "Deutsche Online-Shop-Preis 2016" for the newly designed internet branch.

Görtz, the "shoe king of Hamburg", had also slipped into the crisis. The family business, which had been in existence since 1875, suffered from a decline in sales, and in 2014 had to get the investor Afinium on board, which entered the company with 40 percent. They "missed one or the other chance because we did not follow all promising ideas with the necessary stamina", said Frank Revermann, Managing Director of Görtz, about the "world".

Deichmann's competitors have neglected online trade. Now upgrade. Whether this step is too late will first have to show itself.

"Stone age" trade is hardly viable

It & APOs; s clear: it won & APOs; t be easier for shoe retailers. Gerrit Heinemann, head of the eWeb Research Center at Niederrhein University of applied Sciences, warns trade against acting like "in the Stone age". He expects that the share of online purchases will increase from currently around ten percent to 25 percent. Amazon, Zalando and Co. are lurking here, who really stir the advertising crowd for their platform. "Amazon wants 30% of the market-and they're going to get them over more actions," a trade expert said about the industry paper "shoe courier" almost two years ago. The fashion sector was last expanded at trade giants.

And Zalando? Even though the company is still associated with the & quot; cry for happiness & quot; spot and shoe delivery, the online store now sells fashion rather than shoes. According to Etailment, Zalando estimates its own market share at five percent. Powerful competition for shoe sellers from the pedestrian zone. & quot; those who operate local trade as in the times of Fugge and Hanse are clearly the most vulnerable, & quot; also admonishes Heinemann in an interview with Locafox.