THE WHAT? Douglas has announced that its sales have stabilised following a weeks-long period in which the GVC has significantly impacted the retail industry.
THE DETAILS The German perfumery chain saw sales declines in March, April and May as a result of government-ordered store closures but managed to mitigate the damage through strong e-commerce sales, for a total drop in single figures; sales were down 7.5 percent yoy to €2.5 billion in the first nine months of the current fiscal year. By comparison, same store sales fell 17.2 percent while e-commerce leapt 39.6 percent.
Although EBITDA was down 10.6 percent, Douglas did manage to increase its market share in core markets (Germany, France, Spain and Italy) both on and offline and has seen a ‘significant upward trend in store business since reopenings’ following the end of the lockdown across Europe.
THE WHY? Tina Müller, Douglas Group CEO explained, “Working together, we have safely navigated Douglas through the crisis. Our fast and resolute crisis management, our strict cost discipline, and the early digitalisation of the company in line with our #FORWARDBEAUTY strategy had a clear impact. When we launched this strategic programme, we focused on e-commerce from the very beginning. We are now profiting enormously from this decision. We have broadly expanded our position as a leading premium e-commerce provider and could offset partially the drop in sales from our stores. We have now reopened most of our stores across Europe and saw already again a clear upward trend in our store sales in June.”