S.Oliver Head of Sales Daniel Schmidt: "Currently we are above the level of 2019"

S.Oliver finally wants to leave the pandemic behind and starts the year optimistically. FashionUnited visited the Rottendorf-based clothing supplier during the Düsseldorf Order Days. Sales Director Daniel Schmidt explains why the company has changed the order rhythm, how the current order date has gone and to what extent prices have been adjusted.

How is the current order period going for you?

We have two issues right now: the June collections and outdoor for fall/winter, a very important area. As of today, we are on a positive track in both areas. Outdoor even significantly stronger than planned. We are expecting double-digit sales growth.

How does the order volume compare to the time before the pandemic?

We are currently above the level of 2019, which is the "normal" reference year to which we are currently referring.

You have halved the order deadlines from eight to four. How is the changeover going?

We have adjusted the order rhythm to the development of our collections. In the past, we developed, sold and delivered our collections on a monthly basis. Now we develop several delivery dates together and at the same time we have significantly shortened the development times.

As a result, we are now closer to market trends and the needs of our customers. For the next order date in March, in which we write the August, September and October dates simultaneously, the new rhythm also takes effect in the order. As a result, we are moving from the traditional order windows to four order dates per year.

And this hybrid concept is now being rolled out further?

We will now transfer the whole concept of our Hybrid Fashion Studios. We have looked through every single location: Where is it right? Where is it necessary? And now we are gradually rolling it out further.

We recently opened a brand new store in Sindelfingen. This year we will continue in Austria, in Salzburg. We are also planning to modernize and rebuild the showroom in Munich and bring all brands under one roof there as well.

What position do you now hold for stock items?

We have recently reduced our share of classic NOS articles in order to bring more fashion articles onto the sales floor and to focus even more on our expertise in this area.

How has the pandemic affected your supply chain? Are the goods arriving in the stores on time?

We have now found a solution across all transport routes so that we can deliver 'just in time'. Sea and air freight have become more important.

Where is the trend heading?

Outerwear is a general trend that is gaining momentum. This is true in sportswear as well as with wool. There are very many material mix themes that are very well received. This also includes various quilting options. These are the areas where we are achieving positive growth today. Outerwear is currently in the double-digit plus range for us.

Have you continued to expand this area?

We have continued to expand this area and see that the current performance proves us right. We already had very good sales with outerwear in the fall/winter.

Of course, as brands, we stand for a certain segment where we feel comfortable and at home. But this year we have also consciously adjusted one or the other price group in outdoor upwards, supplemented it and invested even more in the product. This has been very well received.

To what extent have you adjusted the price ranges?

We are very clearly trying to maintain our cornerstone price ranges. We have one or two shifts, like many in the market. In the case of outerwear, for example, we also deliberately dare to go up a price group and expand the price range without leaving the existing one.

At Comma, we have added a bit to the outerwear range, but left the existing price levels unchanged. A year and a half ago, S.Oliver had a T-shirt in the men's range with a retail price of 9.99 euros. This was changed to 12.99 euros, with organic cotton goods. At the end of the day, the performance was even better than the 9 Euro T-shirt.

The aim is to maintain magic corner price levels in each individual division and product group, and to do so despite the raw material price trend, which is currently extremely upward.

How are the price changes passed on to the retailers?

At present, we do not pass on the costs directly. If we do, then higher prices result from improvements in the product, for example through higher sustainability standards, better qualities, etc.

The pandemic impacted earnings in 2020. The wholesale business at S.Oliver suffered in particular. How does the wholesale business compare to your own retail?

We have several channels at the S.Oliver Group: We have our own retail, e- commerce, wholesale, franchise, depot, concession. If you put them in proportion, the share of sales from retail and e- commerce, i.e. our own channels, is greater than with partners. If you only look at brick-and-mortar retail, we currently generate more sales with our partners than with our own stores.

What strategy do you pursue with regard to distribution?

We are taking a close look at the issue of distribution: Who are the strategic, important partners for us? We want to work very closely with them. We don't have to be represented everywhere if it doesn't suit our brands and products.

When it comes to retail and internationalization, the company also follows a clear roadmap and examines its portfolio, because not every brand is right for every location.

Finally, how do you think you will finish 2022?

We expect a positive year. The first order results make us very positive. The partners also welcome the investment in the individual divisions that we have recently pushed ahead with. We also need to implement this for 2022 and leave the two years of the pandemic behind us with 2020 and 21. We are in a very positive mood, even though the year has only just begun.

This article was originally published on FashionUnited.DE, translated and edited to English by Kelly Press.