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While parent company Galeria needs to reorganise, Inno posted profits for the second consecutive year, albeit slightly lower than a year earlier. The department store chain’s premium strategy seems to be paying off.
Premium positioning
Inno posted a turnover of 292 million euros last financial year – which closed at the end of September – a growth of 2.5%. Net profit was 1.3 million euros. A year earlier, it was 2.6 million. This is according to the annual accounts just published, which newspaper De Tijd was able to inspect. The department store chain posted a profit for the second year in a row, after difficult years. In 2021, the loss was as much as 12 million euros.
The retailer is tinkering with its cost structure, among other things by renegotiating leases, but at the same time it is also investing in the renovation of the shop park and in the expansion of ‘strategic departments’ such as perfumery, jewellery and handbags. CEO Armin Devender wants to position the Belgian department store chain a little higher in the market and make it less dependent on fashion.
Sale process ongoing
Galeria, Inno’s parent company, meanwhile, is going through a reorganisation process, which will see 76 of its 92 branches in Germany relaunch. A total of 1,400 of the 12,800 employees will lose their jobs. Recently, Richard Baker, the owner of the Hudson’s Bay Company, has come forward as a buyer of the insolvent department store group, through his investment company NRDC. Creditors still have to give their blessing to that bid on 28 May, though.
However, Inno falls outside that takeover deal: the Belgian subsidiary operates separately from Galeria and has been for sale separately since October last year. That sale process is still ongoing and the annual accounts offer no new information on that.
