DGAP-News: Adler Modemärkte AG: Strategy Update for ADLER's Online Shop

Press Release
from Adler Modemärkte AG

ADLER Aims to More than Triple E-Commerce Revenue by 2023

Strategy Update for ADLER's Online Shop
Clear focus on ADLER's online clients' needs

Haibach (near Aschaffenburg), 28 August 2019: Significant improvements in profitability can already be seen following the successful launch of ADLER's "Strategy 2020", and Adler Modemärkte AG is now implementing a strategy update to expand its online business. The goal is to more than triple e-commerce revenue by 2023. "So far, ADLER has hardly been able to benefit from the growing online market. With a new strategy, a new shop system and targeted marketing, we are now setting our sights firmly on this goal", said Carmine Petraglia, CCO of Adler Modemärkte AG about the plans.

At the beginning of 2019, ADLER started to lay the necessary groundwork, firstly by reallocating marketing expenditures to stabilise online revenue. Initiatives in this context are showing their first positive effects on the key performance indicators, with a significant rise in visitor, customer and order numbers in the ADLER online shop (www.adlermode.com) since then. Consequently, online revenue increased in the double-digit percentage range from the second quarter of 2019. "We have begun to do our homework and have broken new ground regarding revenue generation, for example with the implementation of our ordering hotline which will go live during the 4^th quarter, and we have worked on our processes and costs in the e-commerce segment. Moreover, we have realigned our group marketing expenditure in the past months. Our online business stands to benefit from this, for example because of the intensified use of radio advertising", said Jochen Weiß, Head of E-Commerce, about the current situation. Reallocating the marketing expenditures means that ADLER will only incur a minor additional expense in the current financial year.

New Online Shop System to be set up until 2021
A total of more than EUR 10 million will be spent on the expansion of ADLER's e-commerce activities until the year 2023. With a positive net liquidity of EUR 54.5 million as at 30 June 2019, ADLER is excellently equipped financially for these investments into the future. For example, ADLER will implement a new online shop system in 2020, which it plans to roll out to customers over the course of 2021. The new system will further improve the customer experience and it will be more closely tailored to existing and new customers' needs. Going forward, the new shop system and the ensuing infrastructure upgrade will give ADLER further room to leverage revenue potential, for instance by including secondary and tertiary brands or internationalising the online business. The goal in the medium to long term is to position ADLER as a network platform for its target groups. Cooperating with established online players is also part of this. For example, the recently launched sales channels for ADLER products on Otto.de and Amazon are showing encouraging results. The ADLER app is also being downloaded at a growing pace, which pays testament to a significant increase in its appeal.

Adler Modemärkte AG press enquiries and investor relations
Jasmin Dentz
Investor Relations
Tel.: +49 6021 633 1828
E-mail: investorrelations@adler.de

About Adler Modemärkte AG:
Adler Modemärkte AG, headquartered in Haibach near Aschaffenburg, Germany, is one of Germany's largest and most important textile retailers. In 2018, the Group earned EUR 507.1 million in revenue and generated EUR 20.7 million in EBITDA prior to IFRS 16 (adjusted: EUR 26.2 million). As at 30 June 2019, ADLER has approximately 3,600 employees and currently operates 173 stores, 146 of which are located in Germany, 22 in Austria, three in Luxembourg, two in Switzerland, plus an online shop. The Company focuses on large-space concepts offering in excess of 1,400 m² of retail space. With its many own brands and select external brands, ADLER offers a highly diverse product range. Thanks to 70 years of tradition and strong customer loyalty, ADLER considers itself to be the market leader within its target group of affluent customers aged 55 and over.
For more information: www.adlermode-unternehmen.com; www.adlermode.com