Annual Report 2009/10 Excellence in Retailing - Douglas Holding

52 Management Report
Key results
Business activities and operating environment
Net assets, financial position and result of operations
DOUGLAS HOLDING AG
Subsequent events
Control system and success factors
Opportunities and risks situation
Statutory disclosures
Forecast and overall assessment
also attaches more importance to functioning logistics. Competitive advantages can be
generated by ensuring punctuality in delivery and perfect product quality. This also necessitates
good supplier relationships, on which the DOUGLAS Group can rely on a partnership
and a long-term basis.
In the Perfumeries division, focus was placed on the new structuring of logistics locations
in Germany. The number of cross docking centers declined from eight to five sites.
Based on optimum logistics criteria, the stores were regrouped to the cross docking centers
with the aim of reducing transport costs. Furthermore, numerous IT systems were integrated
at the Douglas perfumeries. The computer-supported system for store orders (SAF)
was rolled out at the beginning of 2010. The system supports store disposition by calculating
a disposition recommendation based on past figures and parameters for future events.
In addition, the ATOSS SES system replaces the old staff planning system. Moreover, the
Douglas perfumeries met the current safety requirements (TA 7.0) with the implementation
of the new payment terminals.
The fiscal year’s focus in the Books division was on further development and the roll
out of the new merchandise system Thawis. The new system should assure the company’s
overall operations and growth potential as well as raising profitability – by means of realizing
cost savings potential and optimizing business processes. A major portion of the
stores was successfully converted to the new system in the 2009/10 fiscal year.
Sustainability
The DOUGLAS Group associates corporate responsibility with a clear claim: Retailing
with heart and mind. This means to reconcile economic success with social and ecologic
commitment. The company responds to the challenges of the future with a number
of projects and initiatives. In 2008, the DOUGLAS Group established the in-house “Corporate
Social Responsibility Council”, comprising of representatives from the operating
divisions and the Holding in an advisory capacity. In addition, employees, customers, investors
and other interest groups exhibit concrete expectations of the DOUGLAS Group.
Their interests are bundled and evaluated by the Council; the Council then defines key
corporate responsibility topics as part of its regular meetings, such as the supplier code of
conduct that is mandatory for all suppliers.
Claim to the suppliers
In choosing suppliers, the DOUGLAS Group sees it as its duty to comply with both generally
accepted and local legislative rules and special features with respect to social and
ecological standards. This claim is established in the supplier code of conduct throughout
the entire group. It is based on the human rights declaration of the United Nations (UN)
and the conventions of the International Labour Organization (ILO), and must be signed
by all suppliers of the DOUGLAS Group.
Responsibility to employees
A corporation is only successful when its employees are given the opportunity for further
development. Especially for the DOUGLAS Group, which relies on excellent service
and expert advice, this is the key for sustainable success. With regard to the demographic
change and rising competition for hiring professionals and managers, the retention and