Takko Plans Major Expansion with 300 New Stores by 2027

In a bold move amidst challenging economic conditions for the retail sector, Takko Fashion has announced plans to significantly expand its presence across Europe. The German fashion retailer intends to open 300 new stores over the next three years, with the majority of these launches slated for Germany, one of its key markets.

Currently, Takko operates approximately 2,000 locations in 17 countries, including Germany, the Netherlands, France, Italy, and several Eastern European nations. The company's CEO has revealed that about 90% of the upcoming stores will be established in Germany, reflecting a strategic focus on enhancing its footprint in this core market.

Martino Pessina, who took over as CEO in early 2024, stated that the expansion would result in a 15% increase in the total number of Takko locations. In Germany specifically, this translates to a growth of approximately 22.5%. Pessina emphasized that the decision to expand is rooted in thorough market analysis, citing considerable growth potential in numerous regions across Germany.

Since taking the helm, Pessina has shifted the company's focus back to its domestic market after several years of international expansion efforts. He noted that while no new countries are being added to Takko's operational portfolio for the time being, the company is committed to maximizing success in its established markets before considering further international ventures.

Pessina expressed confidence in the company's financial health, arguing that the expansion is a response to strong performance indicators. He asserted that Takko would not pursue growth if it were operating at a loss, highlighting the firm's robust position in the market. The CEO anticipates that the fiscal year 2024/2025 will be a significant period for the company.

In addition to the new store openings, Takko plans to renovate existing locations, with a target of modernizing 75 to 100 stores annually. Pessina believes that these upgrades will enhance customer experience and drive sales, citing previous increases in revenue following store renovations.

This announcement from Takko contrasts sharply with recent trends in the fashion industry, where many retailers have struggled with financial difficulties. Notable brands have faced insolvency, and several companies have announced closures or restructuring plans. In this context, Takko's expansion appears to be a strategic counter-move aimed at capitalizing on market opportunities while competitors grapple with challenges.

As the retail landscape continues to evolve, Takko's ambitious growth strategy may position the brand favorably in a recovering market, allowing it to capture a larger share of consumer spending in the fashion sector.