DEICHMANN SE partners with AZADEA Group For International Expansion In The MENA

Shoe retailer enters into partnership with retail giant AZADEA Group on further development in the MENA region; first DEICHMANN franchise business opens in Dubai in 2019 Essen, 11 October 2018 - DEICHMANN SE is continuing its international growth on a new scale. The company plans to enter the market in the MENA region (Middle East & North Africa) in the next few years. In this spirit, the shoe retailer has entered into a long-term partnership with AZADEA Group. A premier lifestyle retail company that has been operating across the MENA for the past 40 years and currently operates over 50 leading international franchise concepts in fashion & accessories, food & beverage, home furnishings, sporting goods, multimedia, and beauty & cosmetics. The opening of the first store on the Arabian Peninsula under the DEICHMANN brand is scheduled for 2019 in Dubai. "We are aiming for further growth and keen to open up new markets. Having opened stores in France and Belgium last year, we are now represented in almost every country in Europe. So it is time for us to develop further growth markets," says Heinrich Deichmann, Chairman of the Board of Directors of DEICHMANN SE. "We believe that there is huge potential for our concept of 'high-quality fashion shoes at an affordable price' in this region." DEICHMANN SE is the largest shoe retailer in Europe and now present in 26 countries worldwide. In the 2017 financial year, the Group sold more than 176 million pairs of shoes internationally in around 4,000 stores and 36 online shops. DEICHMANN is striking a new path with the expansion now planned: for the first time in its more than 100-year history, the company will be working with a franchise partner. "In the AZADEA Group, we are pleased to have found a partner with many years of experience in using the franchise model and at the same time with proven expertise in the fashion sector as well as in the Arabian and North African regions. We see it as a major advantage to be entering a new region closely aligned with a local partner," says Heinrich Deichmann. "Together with our partner AZADEA Group, we first want to gain initial experience in the region, on which the timing of further developments will depend," he adds. “We are proud to announce our partnership with DEICHMANN and are excited about introducing an international shoe concept to the Middle East”. Stated Said G. Daher, Chief Executive Officer at AZADEA Group. He adds: “The addition of DEICHMANN SE to our portfolio comes to anchor once again our longstanding promise of continuously offering our customers nothing less than a great shopping experience for the whole family.”

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• 14 Oct, 2018

Azadea Group – True to the Customer

14 Nov, 2021

The Azadea Group exists to provide customers and people with an entertaining and exciting way of life. In this interview, RLI speaks with the company CEO Said Daher to discuss how he and the team steered the business through the Covid-19 pandemic and what the ambitions are moving forward. A premier lifestyle retail company that owns and operates international franchise concepts in fashion and accessories, food and beverage, home furnishings, sporting goods, multimedia and beauty and cosmetics, the Azadea Group has a presence across the Middle East and Africa and is situated across 13 countries where they operate over 600 physical stores and more than 40 digital e-commerce/omni-channel experiences with a specific concentration on the GCC region. “While 2020 was a difficult year for everyone, we are extremely excited about the stronger-than-expected recovery in our region so it is business as usual for us, with a slightly more increased focus on digital which was already a strategic pillar for our business,” says Azadea Group CEO Said Daher. When discussing how the company steered itself through a time of such adversity, Daher was quick to point out that great credit must go to their people and partners who supported them during the difficult times, saying that everyone generously pitched in to ensure that they overcame one of the most difficult macroeconomic situations in history. Meanwhile closer to the present, already this year the business has seen the opening of 60 new stores across Africa and the Middle East, and they are particularly excited about new properties such as Al Zahia City Centre in Sharjah, UAE and Garden City in Algiers, Algeria in addition to new stores in some of the existing prominent properties in the region such as The Dubai Mall and City Stars in Egypt. “It is going to be a busy 12 to 18 months as most openings that were planned in 2020 were pushed to 2021 and 2022. We are looking to add 200 new stores and 20 new digital experiences to our portfolio by the end of 2022,” says Daher. “While we continue to assess new markets, the GCC remains our core geography and in the coming 18 months we aim to strengthen our position in these core markets.” Having developed a vast presence across their core markets, they continue to develop new stores and customer initiatives by working with amazing partners who continue to deliver exceptional customer experiences by extensively engaging the frontlines. “We exist to provide our customers with an entertaining and exciting journey. We aim to deliver on that through a differentiated omni-channel offering that adds value to the experience of our customers,” Daher explains. Social media is of vital importance to Azadea Group, not only because it is at the heart of being able to engage with their customers closely through marketing campaigns, but also because social media in the GCC has a much higher penetration than in European markets according to Daher. “If you combine this with the importance of this channel within the discovery part of the journey for fashion consumers, it is no surprise we often refer to social media as the virtual shop window for our brands, he comments.” Rather than follow the market, Azadea Group prefers to follow their customers and as they have moved and shown interests in channels like TikTok and Snapchat they have seen their media channels diversify within the social space. Their partners are also key innovators in this medium and in the use of influencers; as such they see influencers as a core part of their marketing but the execution of this varies by brand and by objective. Recent global events have seen the company accelerate the execution of their online strategy and they will continue to work closely with their partners to ensure a seamless omni-channel experience where their customers can enjoy a fully integrated shopping experience. “All of our brands are online with a mix of desktop, mobile and app experiences that integrate with their stores, enabling a seamless experience for click-and-collect or receipts for store orders delivered into online accounts which is great for sustainability but also great for customers who lose their receipts, this is just one example of the phygital experiences that we are working on,” explains Daher. In recent years the Group’s customer communication has also evolved, enabling them to offer a far more seamless and immersive communication experience with their customers. They no longer target online and physical customers as disparate groups, they have now consolidated their data into a single view of the customer, which means they can talk to their customers via digital platforms including WhatsApp and APP Push’s with bespoke and personalised messaging based on their profile. As we near the end of our time with Daher, we asked him why he felt customers remain loyal to the Azadea Group and what sets the company apart from its peers in the industry? “Customer loyalty is earned by being true to the customer and we reward loyalty by offering the most innovative fashion products week after week. As for our key differentiator, this is our people as they are able to evolve the customer’s journey throughout our touchpoints,” he explains. “We strive to provide our people and customers with an exciting and entertaining way of life and moving forward we will continue to have a relentless focus on customer experience.”

DEICHMANN SE partners with AZADEA Group For International Expansion In The MENA

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Deichmann has been a family-owned business since 1913 and will continue to remain independent. The 100-year history began in Essen, in the Ruhr river area. This is still the headquarter for the group