Otto Group’s revenue drops 9%

The German well-known Otto Group’s global ecommerce revenue is expected to reach 10.8 billion euros in the financial year of 2023, which ends today. This is a decrease of 9 percent compared to a year earlier. Unlike previous years, the decrease in sales is also noticeable in its cross-border markets.

The German Otto Group owns several brands, such as About You and Bonprix. In 2022, the company’s revenue shrank 2 percent compared to the year before. Its revenue came down to 12 billion euros. Online sales within Germany dipped 8 percent in that year, while international sales increased 8 percent.

9% decrease across all markets

In 2023, the company’s online sales in Germany decreased with a little over 9 percent and its cross-border sales decreased almost 9 percent. This brings the total sales to almost 10.8 billion euros. While this is a strong decline, the Group also states that the turnover is still well above the 8 billion euros before the corona pandemic (in its 2019 fiscal year).

‘A decline in sales in ecommerce was to be expected.’

“In the current financial year, securing results was and is the priority. In this respect, a decline in sales in ecommerce was to be expected. In addition, Christmas business was less strong than hoped, both here and in the market as a whole”, said Sebastian Klauke, Group board member for Ecommerce.

According to the Group, the decline was caused by the consumer climate and inflation. There was a decline in average shopping basked sizes, as well as overall sales. However, partner sales on the Otto marketplace did increase in comparison to 2022.

Expectations for 2024

“2024 will also be challenging. We can now at least see smaller streaks of light on the horizon. Inflation is falling and people have more money at their disposal again, thanks to sensible collective agreements that have already been made and are still pending. At the same time, the proportion of people who shop online is growing in almost all age groups.”

‘We do not expect a more noticeable recovery until 2025.’

“For the 2024/25 financial year, we are expecting growth in ecommerce for the Otto Group again. However, we do not expect a more noticeable recovery until 2025.”