German growth model: Deichmann doubles sales after adding 15 stores

Germany’s Deichmann group, one of the leading footwear retailers in Europe, almost doubled its business in Romania in 2010, posting 115.98 million lei (27.4 million euro) turnover, at a time when the economy continued to decline, consumer spending dropped by 5.3% according to the National Statistics Institute, and the company opened 15 new stores.
While a number of retailers were closing up shop, the German retailer bet on expansion during crisis, when rent went down and costs for store openings in turn fell. At an average investment in a Deichmann store of 600,000 euros, according to ZF estimates, the retailer invested about 9 million euros in openings last year.
Deichmann plans to continue expansion on the Romanian market in 2011, as well, when it has 10 new stores planned, especially with the turnover having doubled every year since arrival on this market.
Deichmann owns 36 stores in Romania, with only five of them in Bucharest.