Annual Report 2009/10 Excellence in Retailing - Douglas Holding

By relaunching its online presentation in autumn 2010, Christ has completed another
step towards the direction of the multi-channel concept. The aim is to secure its solid position
attained in stationary retailing and to expand its expertise as an online retailer in
the jewelry and watches segment.
In the Fashion division, AppelrathCüpper will focus on the further, consequent implementation
of its new direction for women’s fashion stores in the areas of marketing and
store design in the fiscal years ahead. The first signs of success are already evident from
gaining new suppliers. Moreover, the product line and accessories have been broadened.
The challenge now for AppelrathCüpper is to make the new strategy known to the customer
– through the support of intensive marketing measures.
With the launch of the AC online shop www.appelrath.com in autumn 2010,
AppelrathCüpper tapped into the Internet business as a distribution channel. The aim
is to improve both sales and earnings and to successfully establish “AC” as a profiled
premium brands seller in the mid to upper genre for women’s fashion clothing at attractive
prices.
The Hussel confectionery shops will focus on its home market in Germany in the next
two fiscal years. Entry in new markets is not planned at this time. The focus of the 2010/11
fiscal year will particularly be set on the scheduled numerous modernization work and
implementing the new shop design concept. An investment budget of about 4 million EUR
has been set aside.
Together with the new shop concept, which has been successfully tested at the pilot
shop in Aschaffenburg, Hussel has introduced a new logo in 2010, modified the presentation
of products and packaging and offers additional services. The objective of the new
concept is to highlight Hussel’s expertise in the area of high-quality chocolates. Hussel
aims to profit from the current trend of a more conscious consumption and to establish
itself as a qualitative and innovative leader in the confectionery market.
The target is to fascinate existing customers for the new Hussel concept and to win new
customers. Moreover, Hussel will secure its leading market position on the German confectionery
market and expand its expertise in the confectionery segment on the Internet.
Positive overall assessment of the DOUGLAS Group
The DOUGLAS HOLDING AG’s Executive Board continues to assess the situation of
the DOUGLAS Group as being positive. The Group has once again demonstrated a successful
performance and has increased both sales and earnings in the year under review.
Pleasingly, the positive performance of the all-important home market in Germany could
offset the adverse sales performance delivered in some foreign markets.
The DOUGLAS Group is well-positioned in all corporate divisions and has available
solid net assets, financial position and result of operations positions. It will continue to
carryforward its investment portfolio from today’s standpoint and will continuously examine
and use the optimization potential. Decisive for corporate success in the future is
the commitment of its employees, the first-class products and a modern store network.
Furthermore, with the group-wide introduction of the multi-channel concept, a forwardlooking
strategy has been developed for all five of the corporate divisions.
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
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