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Peek & Cloppenburg:
Selling on less space in the future
Photo: Jens Kalaene/dpa
After the restructuring, Peek & Cloppenburg is facing a shrinking course. Although the P&C branches are profitable, there is a need for action in the medium term, said company boss Thomas Freude to the “Rheinische Post” (Monday). “We will reduce the space in some fashion stores.” There will be mixed-use concepts with hotels or offices in the same building. This also promotes footfall.
According to Freude, the branches should generate more sales and generate more profits. “We will avoid the discount battles.” A fashion retailer can only survive if the goods are not resold too often at reduced prices. “In the future, we will only offer discounts on special items at the end of a season in order to clean up the inventory.” There will no longer be discounts across the entire range, including new goods, said the manager.
P&C restructured itself last year in self-administration insolvency proceedings. The company was in trouble due to, among other things, the pandemic, the effects of the war in Ukraine and online business. According to Freude, this area, like many other companies, remains unprofitable. “We relied too much on online shopping and invested in new customers – but that carries the risk of accumulating high losses.”
According to Freude, the share of digital business in total P&C sales is 10 percent and should be 10 to 15 percent in the future.
The company from North Rhine-Westphalia should not be confused with Peek & Cloppenburg Hamburg. The two companies are separate.
la/dpa