Douglas Adapts to Changing Consumer Behavior with Increased Digital Investment

Beauty retailer Douglas is shifting its focus towards digital investment in an effort to adapt to changing consumer behavior and improve its business performance. The company's Q3 profits took a hit due to weak dynamics in key markets such as Germany, France, and the Netherlands, as well as ongoing price competition in the European beauty sector. ## Declining Sales and Earnings Douglas reported a 2.0% decline in sales during the April to June period, reaching 987.8 million euros. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was down 19.4% to 127.5 million euros, with an adjusted EBITDA margin of 12.9%. The decline in sales was particularly pronounced in the DACHNL region, where sales decreased by 2.8%, and in France, where sales fell by 2.1%. ## Regional Performance While the European premium beauty market continues to expand, Douglas notes that Germany, France, and the Netherlands are lagging behind more dynamic markets such as Poland, Spain, and Italy. Consumer demand for premium beauty declined year-on-year in Germany and the Netherlands, while remaining broadly flat in France. In contrast, Central and Eastern Europe continues to be a key growth engine for the Group, with e-commerce growing at a double-digit rate in this region. ## Digital Investment and Omnichannel Transformation To adapt to changing consumer behavior, Douglas is continuously reviewing its pricing strategy and accelerating its omnichannel transformation. The company plans to shift investment focus towards elevating its digital offering and the shopping experience for its customers, while driving assortment exclusivity and cross-channel services. This includes reviewing stores critically with regard to profitability targets and adjusting the balance between digital and stationary business to match prevailing customer footfall. ## CEO's Perspective According to Douglas CEO Sander van der Laan, the competition for share of wallet is fierce. Van der Laan emphasized the need to adapt to changing consumer behavior, stating, "We are shifting investment focus towards elevating our digital offering and the shopping experience for our customers, while at the same time driving assortment exclusivity and cross-channel services - both of which show significant sales growth." ## Future Plans Douglas expects the balance between store and online sales to shift further in the coming years. As a result, the company intends to place even greater emphasis on e-commerce and will continue to open new locations selectively, particularly in Eastern Europe. The company will also keep on modernizing stores in Western Europe, while adjusting the balance between digital and stationary business to match prevailing customer footfall.