The drugstore chain dm is taking drastic measures because of the Corona crisis.
Customers will feel the effects.
The
Corona * crisis is
hitting the drugstore market hard.
That's why the company wants to change its strategy.
Dm customers will also feel the effects.
Karlsruhe - The German
drugstore chain dm
is the current market leader in the drugstore industry and has always advertised with an unbeatable low-cost range and numerous branches.
But that will change now: Due to the corona pandemic, the
Karlsruhe-based company has
to take drastic measures and change its strategy.
Also
customers
are affected by the planned changes.
The prosperous times are over: Although the
drugstore group dm
still
posted
record sales
in the 2018/2019 financial year
and opened
new branches
, sales continued to decline from then on.
As early as the summer, the company increased the price of a noticeable number of items, which was the result of a changed pricing strategy.
Drogerie-Markt dm has noticed a change in buying behavior due to the corona pandemic
🌏 dm drugstore reacts to changed customer behavior: Many people shop differently in the coronavirus pandemic.
The drugstore company dm also notices this and reacts.
Consequences for the branch network are possible.
The contribution dm… https://t.co/0OOYpv5T1V ET pic.twitter.com/xvk7KLM4uO
- Economy & Politics (@WirtschaftDE) November 12, 2020
During the ongoing
Corona crisis
, the drugstore giant dm
noticed that
customers' buying behavior had
changed significantly
: the purchases were less frequent but more extensive.
However, fewer customers went
to
dm markets
, which are located in city centers, shopping malls and train stations,
during the
pandemic
.
The Group's management team feels compelled to react accordingly.
At the presentation of the annual figures, managing director Christoph Werner stated that the
effects of the corona crisis could be
clearly felt.
However, the
corona virus
would have accelerated a trend that had already started, which is why you “have to be where the customers are”, says Werner.
However, this also means that
dm customers
will soon have to
drive or walk
longer to the relevant
market location
.
Despite the corona crisis: drugstore giant dm wants to continue growing
We are talking about
relocations
, as customer requirements “in the future could possibly also be met with fewer stationary branches”.
However, the
drugstore group
plans
to continue growing next year and expand the branch network.
However, customers
could soon
need
significantly more time to shop in the
drugstore
dm.
In the video: Interesting facts about the drugstore chain dm
The
dm markets
are not only successfully represented nationally, but also internationally.
However, corresponding adjustments to the
location distribution will
probably only be made in the weaker segment - and thus in
Germany
.
(Alina Schröder) *
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