Germany: Drogerie Markt announces record earnings
German health & beauty retailer Drogerie Markt (DM) has posted record annual earnings, with sales in its domestic market for the year ending 30th September 2014 climbing 9.6% to €6.4 billion ($8.1 billion).
According to a Lebensmittel Praxis report, the company's growth – like-for-like sales were also up 2.4% – means it is now the undisputed market leader in health & beauty retailing in Germany. Commenting on the results, DM CEO Erich Harsch attributed the achievement not to to the downfall of rival Schlecker but to "our own performance compared to that of our immediate competitors".
Aside from growing the top line, DM reported an increase in overall market share from 21.6% to 23% in health products, while it also retained a share of around 50% in cosmetics.
Store expansion has also been a significant part of the company's strategy. In Germany the company has opened 174 new stores in the last financial year, increasing the total number of DM outlets to 1,637. Overseas expansion is reportedly not on the company's agenda, however. "The question is not what makes us bigger but what makes us stronger", Mr. Harsch commented.
Source: Lebensmittel Praxis