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Bijenkorf suffered from inflation last year: sales declined slightly, even though there were more visitors. However, last year’s substantial restructuring did restore profits.
Focus on cost cutting
2023 was Bijenkorf’s first full year without sanitary Covid restrictions. This brought the Dutch luxury department stores 6% more visitors, but did not translate into matching sales growth. On the contrary, sales fell slightly – although the retailer does not say exactly how much. Consumers still remained cautious in their buying behaviour, due to inflation and higher living costs, according to the subsidiary of the UK-based Selfridges Group.
Nevertheless, Bijenkorf managed to increase its operating profit. While EBITDA increased by 37%, operating profit amounted to almost 7 million euro. Last year, the formula restructured both its department stores and head office. The company also decided to focus on its core markets, the Netherlands and Flanders, and to close the remaining international webshops. The entire operation led to significant cost savings and efficiency improvements, according to the retailer.
Movie nights and star chefs
At the same time, Bijenkorf invested in the shopping experience, including a revamp of the men’s department in Amsterdam and an expansion of the assortment. The luxury chain also continued to focus on ‘distinctive customer experiences’ with events, such as rooftop movie nights in Amsterdam, a beauty weekend with live streams and dinners with a Michelin-starred chef.
“Based on this foundation, we now optimistically continue to build towards healthy growth by creating moments of happiness for our customers,” said CEO Matthijs Visch. A gradual recovery of the retail market is expected for 2024 resulting in modest revenue growth.
