NKD Group

Leveraging data science insights to drive growth

Market-leading discount retailer with approximately 2,000 stores across Germany, Austria, Italy, Croatia, Slovenia and the Czech Republic

NKD is a market-leading discount retailer with approximately 2,000 stores across Germany, Austria, Italy and Slovenia and with a growing presence in Eastern Europe. The stores sell a mix of basic apparel and homeware products at competitive prices.

NKD has a unique market positioning operating typically from small format stores in provincial towns. NKD stores often serve as a local community one-stop-shop with a strong customer connection. The company has considerable further roll-out potential in its core markets.

At a glance
Status: Unrealised
Deal Type: Private Sale
Sector: Retail
Initial Investment Date: May 2019
Website: www.nkd.com

Transaction

TDR carried out extensive analysis of the retail market in the context of the well-documented struggles the sector has faced in recent years. We focused in on the discount retail subsegment of the market on the basis that it is less susceptible to online disruption and offers significant data-driven upsides. We felt that NKD Group in particular had a unique market positioning with a differentiated location strategy.

We entered bilateral negotiations to acquire the company in early 2019 and the acquisition was completed in May 2019.

Since TDR’s investment

NKD restarted its new store roll-out programme in existing and new European markets targeting over 100 new store openings a year
With the help of the TDR Data Science team, NKD has implemented a number of value accretive initiatives focused on optimising discounting and pricing, eliminating low return marketing spend and better stock management