Retail Week sat down with Deichmann’s UK managing director Simon Wilson to discuss affordability and value at Deichmann, the importance of the omnichannel shopping experience and the Deichmann ethos
German, family-owned footwear retailer Deichmann was first founded in 1913 with a focus on affordable footwear for the whole family. A leader in the European footwear market but on a mission to build brand awareness in the UK, the business currently has 139 UK-based stores.
Following seven new openings in 2024 and on a mission to seek out “the right opportunities in the right locations” to open another raft of stores this year, Deichmann’s record sales growth in the UK last year is showing no signs of slowing.
During a tour of the footwear retailer’s store in Westfield shopping centre, White City, managing director for the UK Simon Wilson told Retail Week that the business saw a real shift towards value-seeking shoppers in 2024, marking a year of changing spending habits. He says this is a huge opportunity for Deichmann, which continues to put customers at the heart of the business as 2025 kicks off.
How much opportunity do you see in the importance of value in today’s market?
“I think in terms of the Deichmann value proposition it actually fits in very well because at the end of the day our ethos has always been that the customer comes first. The company must serve the people and that starts with the customer and from when the company started to this day, this is one of the key principles and I would say that it’s cemented in three ways.
“One is that we want to come with the right price the first time around, we are not a retailer that wants to have balloon pricing and fake discounts, we want to have a great value proposition from the get go. We also offer an unmatched quality guarantee which means you can bring back a product at any point within 366 days, so one year plus a day because we are so confident about our quality and I have to say the uptake at the moment on that is thankfully quite low. As a third pillar we have price points and that’s again where we say you can rest assure that if you come to a Deichmann store you will always find the best price on any footwear on any brand, and if you do find a better price somewhere else, we will not only match that price but will give you an extra pound on top of that.
“We feel that the price promise is a very bold message from our side to say that we believe we are the value champions when it comes to footwear in this market. We’re quite happy to put our money where our mouth is.”
Retail more generally has voiced concerns following the Budget, how will this impact Deichmann in 2025?
“I think 2025 will remain a challenging year in terms of consumer sentiment, that’s one thing I am very, very sure about. People don’t all of a sudden magically have more money to spend but on the other hand, for brands like us, this is also an opportunity because people are looking for where they can get better value.
“The decisions of the Budget and how it affects retailers and companies in general is very well known. Any cost pressure or additional cost pressure on a business is not necessarily a positive thing. From our perspective we have been able to plan for that and make contingencies. For us, the number one importance is the customer. Deichmann has been entirely self-funded so we are not too influenced by market pressures or financial market pressures there.”
How important are your stores to the business?
“We pride ourselves in being footwear specialists and serving the entire family. Deichmann has the largest collection of kidswear in bricks-and-mortar in the UK market and for that particular market, I think going to a physical location, trying on the shoes, making sure sizing is correct and getting advice on sizing is very important to the customer.
“That being said we are an omnichannel retailer and we’ve had an omnichannel business for many years but we can offer more value than a pureplay retailer as we have that full breadth of an omnichannel offering. I think it’s the harmony of those services being able to offer a physical location to return or swap a size that really makes a retailer these days.
“Our stores definitely help with return rates but it’s also just a reflection of us as humans – we are social beings and I think that’s where bricks-and-mortar really remains strong and has seen that resurgence after Covid. I think the bricks-and-mortar presence is here to stay and will remain important but in conjunction with a strong online presence.”
Talk to me about the impact of trends on Deichmann
“The holy grail for any sort of fashion retailer is to keep on top of trends but to also understand when a particular trend gets into focus for our customer. And that might not be the first or second season, it might be the third season where our customer feels confident to wear something and know that they will wear it for a good few years to come.
“It’s getting the mix right that is quite challenging because you want to have some very edgy fashion products, but then you also want to have a good foundation of the product where people feel safe to buy and wear for the next few years.
“We will always scan the market and we do obviously have brands that we’re not currently working with that are on our wish list, but there’s also our reality which is working on deepening relationships with our existing brands and making sure we give those brands the space to showcase what they want in our stores.”
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