Focusing on increased productivity for retail space and reduced costs, German lifestyle clothing company Tom Tailor Group plans to close 80 to 100 stores in 2016, while opening up to 30 more in new locations.
The company will review its existing store network and slow down expansion of its retail space. It aims to increase productivity of retail space, accelerate processes, improve efficiency, and above all, lower the cost base. Gauging the latest trends online, the leading fashion house has also planned to expand its online sales and services
In this regard, Dieter Holzer, CEO of Tom Tailor Holding AG, said, “The textile industry is undergoing rapid changes. Digitalisation is opening up whole new worlds for product and service offerings. At the same time, shopping habits are changing, and buying decisions becoming more spontaneous. After years of strong growth, the Tom Tailor Group has entered a phase of focusing. We began responding to the changes in 2015 and plan to take a step-by-step approach in implementing the launched measures. We have complete confidence that by taking these actions we will improve our profitability and competitiveness in the long term.”
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The group presenting its figures for the fiscal year 2015 confirms a 2.5 per cent rise in sales to €955.9 million as compared to previous year. While releasing its outlook for 2016, the group has initiated strategic realignment that is based on the two fundamental programmes “Pole Position” and “Core”. Pole Position is the acceleration of the Group’s verticalisation and digitalization, while CORE is a cost-cutting and efficiency programme, which aims at strengthening the profitability.
Operating in more than 35 countries, Tom Tailor Group is one of the leading and fastest growing fashion houses in Germany and Europe, operating under its two umbrella brands TOM TAILOR and BONITA.
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