Douglas is undergoing a transformation: it will close 500 stores in Europe, one of them in Lithuania

The group announced Thursday that some 500 of its 2,400 stores in Europe, mainly in southern Europe, will close in autumn 2022 as a result of consumers’ seamless transition to online shopping. Of all the closed stores, about 60 will be closed in Germany, where Douglas has approximately 430 stores.

When Delfi contacted the company’s representatives in Lithuania, it was stated that the company’s network carefully analyzed the entire situation of the European stores during the pandemic, so it was decided to optimize the business by moving some physical stores to the selling online or strengthening the capacity of others. physical stores.

“In 2020, the online sales of the international network of cosmetics and perfumery Douglas increased by 50% and the record number of electronic sales increased by 40.6%. We have reached 1 billion euros. Despite several months of store closures due to the COVID situation, the Douglas Group had sales of 3.2 billion euros, an increase of only 6.4%, less than last year, when sales reached 3.5 billion, an amount of EUR. The pandemic situation has greatly accelerated the general trend of online shopping. <...>

This year, the Douglas chain operating in Lithuania plans to close only one store located in the CUP shopping center in Vilnius. Employees will receive new jobs in other stores and a new Douglas store is planned to open in the Vilnius OUTLET shopping center, which is currently under construction.

“As in the global Douglas network, there is significant growth in online sales in Lithuania,” company representatives said.

Meanwhile, the stores, as explained, will continue to be integrated into the Douglas digital platform.

“We also have ambitious plans for the coming months: in addition to the necessary cuts in our store network, investments will be made in key stores in strategically better locations, in the best international brands and in the constant development of digital retail across Europe.” . Douglas Group said in a statement: “Tina Müller, CEO.

Taking store closings and other measures into account, Douglas’s operating profit is expected to reach approximately € 120 million from the group’s next fiscal year. by year.

During fiscal year 2019-2020, Douglas’ operating profit decreased by 16.7 percent. up to 292 million – This was mainly due to the slowdown in physical stores, directly linked to the COVID-19 pandemic and the quarantines imposed as a consequence, and the investment in the development of the group’s e-commerce.

Douglas e-commerce sales increased 40.6 percent during the fiscal year. up to 822 million euros. For the first time in calendar year 2020, the group generated more than € 1 billion in e-commerce revenue.

In the fourth quarter of Douglas’s fiscal year, the group’s e-commerce sales accelerated to 44.5 percent; Southwest and eastern Europe posted strong growth in online sales of more than 80 percent.

Last year, Douglas had a 25.4 percent market share in the online beauty industry. At the European level, and only in Germany, 39.9%, according to NPD Group.

During the last fiscal year, Douglas attracted more than 40 percent. new customers buying online. During calendar year 2020, visits to the retailer’s online store increased by more than 50 percent.

Thanks to the Douglas beauty products trading platform, where partner companies sell their products, the retailer’s range has exceeded 100,000 products. Douglas’ trading platform now operates in Germany, Austria and France.

“After record sales in 2018-2019, our investment in e-commerce helped us tremendously as part of our #ForwardBeauty strategy during the COVID-19 pandemic,” Müller said, referring to the initiative to digitize Douglas in general. “We have a very good understanding of the needs of our customers, we understand their purchasing tactics and we intend to further promote the transition to e-commerce that began in 2018.”

According to data from strategic market research firm Euromonitor International, in 2020 Douglas accounted for 2 percent. Lithuanian market share in the health and beauty product retail market and ranked 7th among the top 10 sellers in this market.