OTTO: Umsatz in 2019 um 9 Prozent auf 3,5 Milliarden Euro gewachsen
Hamburg, 2 April 2020: The past financial year 2019/20, which ended on 29 February, was very successful for OTTO. Sales increased above plan by around 9 percent year-on-year to a total of EUR 3.5 billion. As a result, the Hamburg-based online retailer continued its successful development for the tenth consecutive year. This was also possible due to the approximately 7.5 million active customers - 7 percent more than in the previous year - who bought from the various OTTO product ranges in the past business year. The demand via mobile devices in particular rose over proportionally. The OTTO app is currently already generating one third of sales, and in combination with mobile and tablet even as much as 64 percent - which is also 7 percent more than in the previous year.
OTTO consistently expands its Home & Living range
In line with this, all product groups recorded sales increases: most noticeably in the Home & Living segment with a plus of 15 percent, closely followed by technical articles at around 14 percent. "We therefore continue to rank as Germany's largest online furniture retailer by far", explains Marc Opelt, Chairman of the OTTO Executive Board. The capability of automatically connecting brands and dealers to otto.de and hence accelerating the development from online dealer to platform has also been accomplished. Accordingly, OTTO will go live in the coming months with around 1,000 partners, who will then be able to offer their product ranges online at otto.de within two to three days of registration.
Effects of the Corona crisis on the OTTO organisation
The start of the new business year since the beginning of March, has however been clearly marked by the corona pandemic. The management at OTTO reacted very early on to a potential health hazard for its own employees and successfully transferred key business units, including parts of the Relation Centres, to home office. Despite extensive organisational changes to the work processes, the company is operating in a very stable condition for more than 3,000 employees working from home through to the delivery to customers.
"We had already created the technical and cultural prerequisites for networked, agile and mobile working several years ago, which is proving particularly beneficial at the current time. Nevertheless, it is important to highlight the commitment of all our colleagues in the Otto Group, who continue to do a great job in the warehouses, returns operations and on the final mile to the customers," Marc Opelt emphasises
Special effects characterise the current business development
OTTO's current business situation is influenced by very diverse and volatile customer demand. Product categories that are normally in high demand and particularly profitable, such as seasonal spring, summer and swimwear, are recording significant declines and are below plan. In contrast, other product ranges - electronic articles, computers, household appliances such as refrigerators and freezers, game consoles, home furnishings and 'comfortable textiles' - are experiencing unusual peaks in demand.
Overall, this buying behaviour has resulted in a temporary slight increase in sales at OTTO . "We are pleased to be able to contribute with our product ranges to securing the basic supply of the population with articles of daily use", says Marc Opelt, who does not, however, want to deduce from this a generally sustainable trend for further business development.
Long-term crisis management dictates the business
In the opinion of the OTTO management, it is currently not possible to make a meaningful forecast for the current financial year. The medium and long-term consequences of a significant global economic slowdown on business and jobs are not predictable. Which is why OTTO's Divisional Board, together with the management, is preparing the company to steer it well through the corona crisis and, above all, to secure jobs in the medium and long term. Various budgetary and organisational measures are therefore currently being reviewed and implemented in order to maintain financial strength, business operations and customer service at the usual high level.
This includes the adjustment of orders, product ranges and marketing measures as well as the suspension of projects which do not directly effect business. New recruitment has been halted on the personnel side. The option offered in Germany of applying for short-time working for commercial and non-commercial colleagues is also being examined in close consultation with the works council.
Marc Opelt makes it clear that investments will of course continue to be made where necessary for the future of OTTO: "We are doing our utmost to emerge strengthened from this situation, which is unknown to all of us and is hopefully a one-time occurrence. The whole company is working towards this objective with a high degree of energy, flexibility and confidence. As the Otto Group's largest all-round provider, we are in principle also well equipped for difficult times like these and ready to take on responsibility".
