What: Dutch luxury department store chain De Bijenkorf reports mixed results for 2023, with increased visitor numbers but lower sales.

Why it is important: The case highlights the impact of inflation on consumer behavior in the high-end retail sector.

De Bijenkorf, the Dutch luxury department store chain, experienced a challenging 2023 due to inflation, despite a 6% increase in visitor numbers. The retailer reported a slight decrease in sales as consumers remained cautious due to rising living costs. However, the company managed to increase its operating profit, with EBITDA rising by 37% to nearly €7 million.

This improvement in profitability was achieved through a restructuring of its department stores and headquarters, focusing on core markets in the Netherlands and Flanders, and closing remaining international online stores. These measures resulted in significant cost savings and improved efficiency.

Simultaneously, De Bijenkorf invested in enhancing the shopping experience, including reorganizing the men's department in Amsterdam and expanding its product range. The chain also focused on "distinctive customer experiences" with events such as rooftop cinema nights and beauty weekends with live streams.

CEO Matthijs Visch expressed optimism for 2024, expecting a gradual retail market recovery and modest sales growth. The company aims to build healthy growth by creating "moments of happiness" for customers.

De Bijenkorf reports mixed results for 2023