“2023 was a challenging year for the Deichmann Group, but it was also a successful one,” commented Heinrich Deichmann, Chairman of the company’s Board. “Our collections and the top brands we retail at convincing great-value prices are exactly what our customers are looking for. They have enabled us to buck the general market trend and achieve growth in the stores and online. Despite difficult market conditions, including high inflation, consumer restraint and shifting customer preferences, the Deichmann Group’s revenue rose by more than 7% to 8.7 billion euros last year. Like-for-like revenue, which is revenue at our existing stores, also increased by 5%. This is an outstanding international achievement that we accomplished with the support of our fantastic sales, logistics and administration teams”, he concluded.

Fiscal 2023 Results

In the last financial year, the German-based retailer recorded a gross revenue of 8.7 billion euros, or net revenue of 7.4 billion euros, up by just over 7 % on a currency-adjusted basis, as compared to 2022. In total, Deichmann sold 184 million pairs of shoes (up by 1.4% year-over-year) through both its 4 700 physical stores (2022: just under 4 600) and 41 online stores that it operates.  

A highlight of Deichmann’s performance in Germany was that gross revenue in the country increased by 9% to 2.8 billion euros, or 2.3 billion euros net, on a comparable basis to the previous year; like-for-like growth was almost 9% year-over-year. More than 70 million pairs of shoes were sold around the 1 400 stores that it operates in Germany as well as online, an increase of 3% as compared to 2022.

In 2023, the footwear retailer generated approximately 68% of its revenue abroad, with the company performing particularly well in Switzerland, Austria, and Turkey. The company opened 18 new stores in Italy, 12 in Poland and 8 in the UK. Deichmann operates in 34 countries worldwide.

Outlook

“Against the backdrop of the current economic situation”, emphasised Deichmann, “extensive investments totalling around 374 million euros are also on the agenda for 2024”. The company plans to modernise its stores with more attractive designs and omnichannel services. At the moment, “A total of around 450 new and remodelled stores are currently planned across the group in 2024, including around 120 outlets in Germany”.  

In addition, investments will be made in the further digitalisation of processes, product development optimisations, the modernisation of IT systems, the growing e-commerce business and logistics.

Deichmann also plans to redefine its brand identity in 2024. “We want to emotionally reinforce the Deichmann brand as a ‘love brand’ in the minds of our customers. Everyone can find fashionable shoes, cool trainers and accessories in our stores and online shops,” emphasised Heinrich Deichmann.