The five pillars of Breuninger's success in the fashion retail industry

news May 2024 Handelsblatt

What: Breuninger, a family-owned fashion chain in Stuttgart, has excelled in the retail market, achieving significant growth both online and offline.

Why it is important: Breuninger's success is notable in a sector where many are struggling, showcasing how a well-executed strategy focusing on online expansion, customer loyalty, and targeted offerings can lead to substantial growth and market differentiation.

Breuninger has distinguished itself in the competitive retail market by achieving a total turnover of around €1.5 billion in 2023, up by seven percent from the previous year, with more than 50 percent of its sales generated online. This growth contrasts sharply with the broader market trends where many retailers are experiencing slower growth rates. The company has thrived due to a combination of strategies that include an early and sustained investment in online retailing, a strong focus on customer loyalty programs, and maintaining a clear focus on target groups. Breuninger has also benefited from its role as a real estate developer, further diversifying its revenue streams.

Holger Blecker, the company's CEO, emphasizes the importance of emotional engagement with customers and profitability following suit. The company plans to continue investing in future viability, including expanding its logistics capabilities. Breuninger's approach also includes a strong service orientation, which has allowed it to serve areas without physical stores effectively. The company’s success factors highlighted by experts include its early commitment to online retail, a serious approach to customer loyalty programs, a clear focus on target groups, a strategic approach to regional presence, and the courage to make tough decisions about store closures when necessary. This strategic mix not only differentiates Breuninger from competitors but also positions it strongly for sustainable long-term growth.

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