After the renovation, the Düsseldorf fashion retailer Peek & Cloppenburg (P&C) wants to reduce the space at some of its 69 locations nationwide. Although the branches are profitable, there is a need for action in the medium term, company boss Thomas Freude told the “Rheinische Post” on Monday. “We will reduce the space in some fashion stores.” There will be mixed-use concepts with hotels or offices in the same building. This also promotes footfall.
According to Freude, the branches should generate more sales and generate more profits. “We will avoid the discount battles.” A fashion retailer can only survive if the goods are not resold too often at reduced prices. “In the future, we will only offer discounts on special items at the end of a season in order to clear up the inventory.” There will no longer be discounts across the entire range, including new goods, said the manager.
P&C restructured itself last year in self-administration insolvency proceedings. The company was in trouble because of the pandemic, the effects of the war in Ukraine and online business. According to Freude, this area, like many other companies, remains unprofitable. “We relied too much on online shopping and invested in new customers – but that carries the risk of accumulating high losses.” Now we are on the way to reaching a “black zero” and becoming profitable in the long term. According to Freude, the share of digital business in total P&C sales is 10 percent and should be 10 to 15 percent in the future. (dpa)