Belgian department store chain Inno, a subsidiary of Galeria Karstadt Kaufhof, is back to profitability today. After being 20 million euros in the red, this year ends with positive figures.
21 strategic projects
Inno ended 2020 with an operating loss of 10.1 million euros. Today, the department store chain proudly announces that that page has been turned: this year, the Belgian retailer expects to end with a positive Ebitda of more than 10 million euros. The chain will also return to profitability below the line, after losing 20.3 million euros in the 2019-2020 financial year.
“In barely two years, we have turned the tide. When the corona crisis broke out, we launched and consistently implemented 21 strategic projects. We never stopped investing in the future, and we are reaping the benefits of that now,” says CEO Armin Devender.
No impact from Germany
For the financial year just started, the department store chain expects sales to rise to 314 million euros. Over the next five years, Inno predicts sales growth to 350 million euros. “Today, Belgian Inno is sailing its own course, separate from our German owner Galeria Karstadt Kaufhof. For example, we have our own procurement strategy and run on a separate, new ERP system. As a result, current developments in Germany have no impact on us,” Devender added.
Among other things, the chain wants to position itself more as a premium department store. Premium brands will be the focus in the coming years, complemented by mainstream products where customers want them. That approach is said to be “deeply democratic”: “Everyone is welcome here and can check out premium products without hesitation. We give shoppers a very different feeling than in the luxury brands’ own shops,” says the CEO.
Online is also a growing sales channel. The new marketplace should account for 15-20% of sales in the next few years. Inno provides the platform, but it is the brands that supply the products. The department store chain will tell more about this digital strategy at RetailDetail Night on 24 November.