New focus earns Hema “modest” profit

Hema has had a good year, according to CEO Saskia Egas Reparaz. Even better: her new focus on core markets and the mid-market segment is delivering “modest profits”.

Deliberately in the middle

“Things are looking good” for Hema, the CEO told Dutch newspaper De Telegraaf. Over the past two years, the department store chain made a “modest profit” and it will continue to do so in financial year 2023 (which includes January 2024, so exact figures will follow later).

The CEO says the new course, which she set two years ago, is starting to bear fruit. This includes Hema resolutely opting for the mid-market segment: “Our products must be of good quality, but also must be very affordable”, the CEO explains. “We are not a Bijenkorf, we are not Wibra either.”

No uniformity

On its Dutch home market, the chain “really started investing in the shops again”, which became possible as Hema abandoned its international expansion. This allowed Hema to escaped the wave of bankruptcies that swept away many of the Dutch high street chains. Last year, quite a few Dutch chains collapsed, including BCC and Big Bazar.

However, the CEO is not happy about this loss of competitors: “Hema benefits greatly from a shopping street that does not become impoverished. We need enough diversity, customers shy away from uniformity in high streets.” To still keep the high streets attractive, she advocates “a combination of hospitality, living and retail.”