The international Otto Group announced preliminary results Wednesday (March 29) for the 2016/2017 fiscal year. Turnover has increased by 5 per cent on a comparable basis surpassing the growth target of 4 per cent and bringing total turnover to EUR 12.512 billion. “We are very pleased with the growth in turnover achieved last year,” said Alexander Birken, who succeeded Hans-Otto Schrader as CEO on January 1, 2017. Birken added: “The companies in our group have gained importance for customers in their markets again. At the same time, we have improved our profitability and will end the year positively on all profit levels.” The good results allow the company to invest in technology and new business models as well in various branches to make them more forward-looking.
E-commerce driving growth
E-commerce remains the retail-business driver at the Otto Group. Compared to the 2015/16 financial year, online revenues rose by around 10 per cent from EUR 6.34 billion to almost EUR 7 billion. The group operates over 100 online shops. Preliminary results for Germany indicate that revenues have risen by almost 10 per cent to almost EUR 5 billion this year. The figures confirm the Otto Group’s position among the world’s top players in international trade and as number two in Germany. Otto put the number of active online customers at some 18.5 million meaning the company has reached about half of all households in Germany.
Investment and cultural change
Commenting on measures undertaken within the group, Birken noted: “During the past business year, we laid important groundwork for developing the Otto Group. We have consolidated the portfolio massively – in technology, the logistics infrastructure and have invested in new services.“ Workplaces in the headquarters in Hamburg have been equipped with cutting-edge technology. Staff can now decide whether they wish to work in the office or in the company’s first co-working space called “Collabor8” created to push ahead with digital transformation. Birken added: “The sum of all the many initiatives in our Culture Change 4.0 strategy allow us to work out our business models faster and to test them on the market.”
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