The Strategist

Douglas perfumery and cosmetics chain to close 500 stores across Europe

01/29/2021 - 04:01

Douglas, one of Europe's largest cosmetics and perfumery chains headquartered in Germany, announced Thursday that it is closing 500 outlets.

It’s just under 20% of Douglas' entire branch network, which includes some 2,400 shops in 26 countries across Europe. The company announced this on Thursday when it published its financial statements for the 2019/2020 financial year, which ended at the end of September.

Douglas' revenues for the year fell 6.4% to €3.2bn and the company posted a net loss of €478m for the period, against a net profit of €17m a year earlier. 

As with many other companies, while Douglas' physical shop sales fell last year - down 15.8% to €2.4bn - online sales, in contrast, rose significantly - up 40.6% to €822m.

According to Douglas CEO Tina Mueller, the closure of some shops is "a logical consequence of the trend towards the proliferation of online shopping". The shops are due to close by autumn 2022. 

Around 60 Douglas shops will be closed in Germany (out of 430 that currently exist), with southern Europe being the hardest hit by the closures, more details yet to be announced.