Digitec Galaxus increases turnover by 59 per cent
Switzerland's largest online retailer Digitec Galaxus was literally bursting at the seams in 2020: last year, the online department store Galaxus and the electronics specialist digitec generated CHF 1.826 billion in the home market of Switzerland and Liechtenstein. This is an increase of CHF 680 million or 59 percent compared to the previous year. The net yield increased by 56 per cent to CHF 1.686 billion. «In this crazy year of 2020, we've achieved an incredible end-of-year result. I'm happy and proud that we managed to handle the enormous demand. This wouldn't have been possible without the tremendous commitment of all our employees and the great solidarity among them,» says Florian Teuteberg, CEO of Digitec Galaxus. «The health of our employees was always at the centre of our decisions. I'm very grateful and relieved that we’ve made it through the Corona year without any serious cases of illness.»
Ticino discovers Digitec Galaxus
Both digitec and Galaxus increased their turnover and gained market share in the past business year. While the online department store Galaxus doubled its sales volume, the electronics market leader digitec still remains the stronger-selling shop of the two. Once again, Digitec Galaxus recorded the largest customer growth in the French- and Italien-speaking parts of Switzerland. In the cantons of Geneva, Ticino and Valais, sales soared by over 90 per cent compared to the previous year, closely followed by the other cantons of French-speaking Switzerland. The most popular products in the pandemic year were everyday items and all products that made life more bearable while working from home and during lockdown. Digitec Galaxus recorded the highest turnover growth in the product groups DIY + Garden and Baby + Parents, closely followed by Health + Beauty, Sports and Home + Kitchen. These sectors achieved at least double the sales of 2019. People living in Switzerland also invested in their home office setup, as the computing sector grew by roughly 50 per cent compared to the previous year.
Next warehouse location in the planning stages
In April 2020, a new fully automated small goods warehouse opened in Wohlen, Aargau. This expansion allowed Digitec Galaxus to increase its warehouse capacity by 60 per cent in the middle of the first lockdown, enabling them to process the enormous order volume on schedule. «Planning and implementing such projects takes years,» Florian Teuteberg says. «Honestly, we were lucky that the construction work was already well advanced and we were able to take the warehouse into operation a few weeks earlier than originally planned.» Digitec Galaxus also doubled its storage capacity for large goods in Dintikon and rented additional storage space in Roggwil. By expanding its logistics infrastructure, Digitec Galaxus created 600 new jobs in the Wohlen region – and more are likely to follow. In order to handle rapid future growth, further infrastructure projects are already being planned; first and foremost, a new building in Utzenstorf, Bern. In the summer of 2023, an extremely modern and energy-efficient service and distribution centre with around 450 workplaces will be built on the former paper mill site.
Climate-friendly shopping on the rise
Digitec Galaxus also used the past year to implement the first milestones in its sustainability strategy. The largest Swiss online retailer defined energy and climate protection goals that are in line with the Paris Climate Agreement. In addition to reducing its own carbon footprint, Digitec Galaxus mainly invested in creating transparency. As the first online shop in Europe, the online retailer offers customers the chance to shop completely climate-neutrally. On top of this, Digitec Galaxus implemented a variety of sustainability filters, which allow customers to filter products by labels that monitor and certify ecologically sustainable, animal-friendly or socially responsible production.
Business is also booming in Germany
Galaxus also did very well last year in Germany: the Hamburg-based start-up exceeded all expectations and ended the year on a high, delivering goods to its 300,000th customer shortly before New Year's Eve. This year, galaxus.de will expand its product range significantly.