Founded in 1962, NKD is a market-leading discount retailer with approximately 2,200 stores across Germany, Austria and Italy, and an expanding footprint in Eastern Europe. The company sells a range of affordable apparel and homeware products from small, local stores, typically located in regional towns and suburban areas.
Initial investment
2019
Sector
Retail
Initial transaction size
€175m
As part of a broader thematic review of the European retail landscape, we identified the discount retail segment as a defensive niche with resilient demand, strong cash generation and less susceptibility to online disruption.
NKD stood out as a differentiated platform, combining a strong value proposition with a unique location strategy and lean cost structure. Although a resilient and well-run business we saw an opportunity to apply our data science capabilities to unlock stronger top line and margin performance and drive the store expansion strategy.
After acquiring NKD in 2019, we worked closely with management to put data science at the heart of all decision making, transforming the business into a data-led discount retailer driving smarter, faster commercial decision-making.
We built and embedded an eight strong data science team within NKD, who work independently to drive sales growth, margin improvement and operational efficiency. Key initiatives included optimising discounting strategies, eliminating low-return marketing spend and improving stock allocation.
This approach also underpinned the store roll-out programme, delivering c.350 new stores primarily across core markets, as well as new markets in the Czech Republic and Poland, expanding its position as a leading discount retailer.