In France the chain already earning money

"If I was forty years old, I I make in the restructuring of the Department stores in Germany", lance Heinz Krogner enthusiastically. The manager, who has restated 10 years the clothing brand spirit in Europe, a number of ideas in mind to find a model for the future to Karstadt, Kaufhof and two German strings to loss of speed. Dressed in jeans, a t-shirt black under his jacket as its customers , the leader confesses to sixty-seven years consider instead of out of business... But the crisis has made the passage from witness in mind more difficult than expected.

With an ambitious expansion strategy, based near Düsseldorf has quadrupled its sales since 2000. Activity on the last six months of 2008 was however less resilient compared with its competitors H & M and Zara. For the first time in ten years, operating profit fell 15 percent, to 324 million euros (3.4 billion Hong Kong dollars, head of the Group). Wholesale, stores or franchisees, sales declined by 3, stores having first sought to reduce their stocks. Several franchise contracts were cancelled funding. What push Heinz Krogner to return to the bar, while he had already begun to withdraw from the operational management.

First construction: adapt the positioning to the new situation at the consumer. The brand created in 1968 is for "women and men young, modern and open to the world, which often have a good job," he says. Problem: this customer risk with the crisis, rely on best channels market. "We will strengthen our offer in the lower bracket of prices, so that return to the Basic, as for example the United T-shirts, that we had neglected in recent years." Spirit also wants to attract more expensive signs from 20 to 30 by proposing more articles in its top prize. In the end, "the price range will be expanded, but we will not reach to the positioning of the brand, since the average remains at the same level," continues to Heinz Krogner.

Strategic investor

Spirit has also developed the halt on its expansion abroad, whereas before the crisis he hoped well drilling on the Asian market. The Group thus waives for the moment to make his entrance into new markets. "He must focus our growth on two or three countries to reach profitability as quickly as possible," said Heinz Krogner. The United States, the Canada, the Italy or even the Spain should be a priority. In France, the chain already earning money.

The proposed acquisitions are no longer topical, whereas a year ago, spirit said he was ready to invest up to EUR 1 billion in a luxury brand. Society now prefers to maintain his good Treasury, one of its strengths, according to analysts. Herald Van der Linde, analyst at HSBC, j. recovery on the stock market "low for a distributor also robust." As Heinz Krogner would not an evil eye entry a strategic investor, "provided that it invest for the long term, have experience in the sector, and that one can develop synergies together", says, noting that "there is no concrete negotiations now." The founders sold the majority of their titles, and it is "the last in the management to this generation." "The entry of a shareholder would preserve the tradition". As the question of his succession is still not resolved.