Focused growth strategy

Focused growth strategy
Focused growth strategy

Due to digitization, the business environment in retail is changing rapidly. To achieve entrepreneurial success, the Otto Group systematically invests in market-relevant business models and Group companies that achieve an especially good performance and high growth. As an internationally operating e-commerce and service Group, we want to use this targeted growth strategy to push the limits, grow substantially, expand our strengths nationally and internationally, and promote innovation throughout the Group. This focused growth can only succeed if the business areas in which we invest are clearly defined and our goals are outlined specifically and understandably.


Focused growth strategy in detail

Business areas

Platforms

The development of our platforms is driven by high growth investment at OTTO and About You. Through their reach, both contribute to the shareholder vision as fair and responsible trading platforms and inspirational hubs for customers and partners.

Brand concepts

Substantial investment in international expansion and the targeted development or acquisition of new concepts serve to strengthen the profitable business area of brand concepts, as seen in our established brands such as Bonprix, Witt, and Crate and Barrel.

Retailers

The individual positioning of retailers such as Mytoys ensures competitiveness while strengthening the ecosystem of our platforms or increasing the Group’s reach.

Services

Flexible and customer-centric services via the Hermes Group enable us to achieve high profitability with distinctive competitive products and to strengthen the market position of our platforms, retailers, and brands.

Financial services

With our financial services, primarily the EOS Group, we want to continue to grow profitably and set ourselves apart positively from competitors through professionalism and fair and responsible services.

Goals

Growth rates

We achieve ambitious growth through a focused expansion in high-yield businesses as well as through the development of new and innovative concepts.

Profitability

We generate sustainable profits to finance the development of our Group with the goal of achieving a double-digit ROCE* in the medium term.

*Return on capital employed: Earnings before interest and taxes in relation to total capital employed

Investments

We are increasing our investments in existing business areas, operational excellence, innovative concepts, and attractive markets, taking advantage of possible opportunities offered by mergers and acquisitions.

Financial framework

We maintain our entrepreneurial freedom and flexibility through a healthy balance sheet structure with an equity ratio of over 25 percent and good credit metrics.

Corporate responsibility

We act sustainably in all of our areas of activity and pursue clear and ambitious goals such as climate neutrality 2030.