06.03.2018 | Hamburg/Munich
The internationally active retail and services company Otto Group raised its global e-commerce revenues in the 2017/18 financial year (to 28.02.18) to around 7.76 billion euros, according to preliminary estimates. This represents an increase of 10.9 per cent or approximately 760 million euros from existing business. The Group’s online revenues in Germany topped 5.4 billion euros, a rise of 10.2 percent.
E-commerce remains the Otto Group’s successful growth powerhouse. Compared to the 2016/2017 financial year the internationally active retail and services group was able to increase its global online revenues by 10.9 per cent, from around 7 billion to over 7.76 billion euros* according to initial forecasts. Revenues from the German market rose by 10.2 per cent from 4.92 billion* in the previous financial year to over 5.4 billion euros. The Otto Group thus consolidates its position as the second-largest e-commerce player in Germany and one of the largest worldwide.
“We are delighted at this dynamic development in revenues”, emphasises Dr Rainer Hillebrand, Otto Group Executive Board Deputy Chairman and Member for Group Strategy, E-Commerce and Business Intelligence. “These results show clearly that our strategy is gaining traction and that the course we have charted is the right one. At the same time, however, we are well aware that we cannot afford to neglect our customers’ wishes – customer centricity remains our priority. The effort is worth it, as our current customer base of around 31 million proves. What drives us is continually finding new solutions that are a perfect fit for our differing target groups.”
One focus in the technology area is on ‘conversational commerce’, i.e. customer communication via Digital Assistants and bots. An agile team comprising members from differing Group areas and Group companies will continue to work on strategies and customer-centred solutions that support personal customer service in the most effective way. Augmented Reality (AR) applications are also gaining relevance in the core business, and are already being used successfully at Group companies such as OTTO and Crate and Barrel.
Sebastian Klauke, Otto Group Chief Digital Officer since July 2017, comments: “At the Mobile World Congress in Barcelona, Google has just presented a further new AR solution together with OTTO as its unique partner in the retail sector. This shows how successfully we are driving these topics forward. Whether in Conversational Commerce, the Internet of Things, or in data-driven business models – our focus remains on the Group-wide expansion of our technological competence.”
*on a comparable basis
Founded in Germany in 1949, today the Otto Group is a globally operating retail and services group with around 49,750 employees. The Group includes 123 major companies and is present in over 30 countries in Europe, North and South America and Asia. Its business activities are grouped into three segments: Multichannel Retail, Financial Services and Service. In the 2016/17 financial year (to 28 February), the Otto Group generated turnover of 12.5 billion euros. It is one of the world’s largest online retailer. E-commerce, catalogue sales and over-the-counter retail form the three pillars of the Otto Group’s Multichannel Retail strategy. Its worldwide corporate activities, numerous strategic partnerships and joint ventures provide the Otto Group with excellent opportunities to transfer knowhow and leverage areas of synergy potential. Group companies operate largely independently, guaranteeing flexibility, customer proximity and optimum target-group appeal in their respective national markets.