“Our stores are essential for our success”

Our around 1,860 stationary stores are the backbone of our business. And we are investing strongly in the expansion of our network: We plan to open over 200 new stores and refurbish more than 400 existing stores by the end of the financial year 2025/26. Marcel Uphues is Senior Vice President Group Controlling & Real Estate of the DOUGLAS Group since February 2021. In this Interview, he gives us an insight into our strategy and expansion plans.
 

Marcel, you are responsible for the store network expansion at the DOUGLAS Group. Why are we expanding and refurbishing our stores to such an impressive extent?

MARCEL UPHUES: Our stores are essential for our success. In four out of five cases, our stores play at least a partial role in the customer journey. The new openings and refurbishments are part of our strategic portfolio development, as we see significant potential for growth and are not yet  fully represented in all markets. To give an outlook: We expect to open more than 20 additional stores by the end of the current financial year and are fully on track to achieve our goal of opening more than 200 stores by the end of the financial year 2025/26.

Why are we focusing on so many new store openings when so much shopping is done online?

MARCEL UPHUES: While it’s true that online shopping is incredibly popular, about 80 percent of our customers are omnichannel shoppers. Around two thirds and thus the majority of our sales are generated by our stores. At the same time, one third of our sales is generated by our E-Com business. The message is clear: Our customers want the flexibility to shop both online and in-store, and our omnichannel offering is highly attractive for them. They appreciate the convenience of online shopping but also value the in-store experience, where they can see, feel, and try out products before making a purchase. At the DOUGLAS Group, we strongly believe in our stationary stores across Europe, because the in-store experience allows our customers to engage with our brand on a deeper level. By focusing on new store openings and a rejuvenation of our network, we are catering to our customers' preferences and ensure a seamless shopping experience with a clear strategy. 

Can you explain this strategy in more detail?

MARCEL UPHUES: We have created a multi-format strategy, which is based on three key formats: premium stores, luxury stores, and our E-Com business. Our stores generally vary in size from small stores to large and flagship stores. Our premium stores are our core format, and we expect them to comprise about 90% of our network. They offer a balanced selection of brands and include beauty services. Meanwhile, in our luxury stores the focus is on more luxurious brands and niche products. They will make up around 10% of our network and provide both beauty services and advanced treatments in private cabins. Finally, our E-Com platform features the widest range of brands and is continually expanding. The bottom line is that the formats should and will complement each other: We are convinced that beauty shopping is experience-orientated and requires a functioning interplay between modern stores and E-Com. 

How do you and your team select these new store locations?

MARCEL UPHUES: We base our decisions on several key criteria. First, we consider suggestions from our colleagues on site in the countries, as they have valuable insights into customer needs and market conditions. Additionally, we follow a strategic process where we analyze our portfolio to identify areas with potential. We evaluate how new locations will integrate within our existing network and make sure that we are enhancing, not cannibalizing, our store presence. We aim to avoid having too many stores too close to each other by strategically positioning new openings. Investing in our portfolio is essential for us: By carefully selecting new locations, we ensure that each addition strengthens our overall market presence and supports sustainable growth. This also contributes to an increased capital efficiency of our investments.

Which role does sustainability play in the development and refurbishment of new and existing stores?

MARCEL UPHUES: Sustainability is a core consideration in both the development and refurbishment of our stores. This commitment includes implementing energy-efficient systems, using sustainable materials, and reducing waste during construction and renovation processes. We also utilize Green Lease agreements, which set environmental performance standards for our properties. These leases ensure that both the DOUGLAS Group and our landlords are aligned in our sustainability goals, with a focus on energy efficiency, water conservation, and other sustainable practices.  Overall, we want to create a sustainable and environmentally friendly store network, because the savings we can generate in our stores in this way also have a major impact on our emissions savings as a company. For us as a team, the sustainability aspect is an integral part of our work, and the two areas therefore always go hand in hand.

What are some of our recent openings? 

MARCEL UPHUES: We already opened several stores this financial year, including Graz, Arnhem in the Netherlands, the 150^th Polish store in Leszno and three stores in France – one of them in Paris. And just recently we also reopened the “House of Beauty” flagship store in the heart of Vienna, which offers a luxurious product portfolio and several beauty services on two floors with a total of 795 square meters. There is a lot more planned for this financial year, and our customers can look forward to plenty of exciting openings!