Otto’s multi-store strategy pays off; Schlafwelt.de goes cross-border

Otto, a subsidiary of Otto Group, has set out a multi-store strategy and this seems to pay off. Recently, with the launch of Privileg.de it now has six “sub stores” and together this niche portal generated net sales worth of 70 million euros. No wonder, one of these niches, Schlafwelt.de will now also launch in Austria and Switzerland.

As Neuhandeln.de writes, the multi-store strategy of Otto will be expanded. But this time, it’s no expansion of the offer, but the internationalization of its existing stores. First, it’s up to the online mattresses shop Schlafwelt.de, which is launched in Germany since the end of 2009. Soon, this online store will start with localized versions in Austria and Switzerland.

Unito wants to roll out more Otto stores
However, the operation of the foreign subsidiary will not happen from within Otto in Hamburg, but from Unito-Gruppe, the Australian daughter company of the Otto Group. Harald Gutschi, CEO of Unito, says his company has plans to roll out more niche stores from Otto in Austria and Switzerland. Of the six niche stores of Otto, the online furniture stores Cnouch and Naturloft and the consumer electronics stores Privileg and Ekinova would also qualify for an expansion outside the German borders.

Neuhandeln.de explains how the other niche store, Neckermann.de, is not an option as the online store Neckermann.at is already runned by TopAgers AG. The website goes on about how Ekinova and Privileg.de will fall through the cracks, “because in Switzerland there’s a different plug type needed for electrical equipment than in Germany or Austria.” It continues: “As a first step, Unito wants to take care of such concepts, whose range can be rolled out internationally without any major adjustments.”

Lascana will also expand in Europe
But still, six to eight specialty stores are planned to have their launch in Austria and Switzerland. Unito also wants to have localized versions of swimwear store Lascana, which in turn is a subsidiary of the Otto Group. With the “Otto” brand Unito is already active in the Czech Republic, Slovakia and Hungary and now it also wants to launch Lascana in these Eastern European countries, in the fourth quarter of 2015.