Breuninger's transformation into a digital multi-channel retailer
What: Breuninger, a traditional department store founded in 1881, has transformed into a digital, internationally positioned multi-channel retailer with a strong online presence.
Why it is important: This transformation highlights the company's successful adaptation to the digital age, leveraging cloud-native technologies and data-driven strategies to remain competitive in the luxury and premium fashion market.
Breuninger, once a traditional department store in Stuttgart, Germany, has undergone a significant transformation into a digital multi-channel retailer. Under the leadership of CTO Frank Postel, the company has shifted its focus towards online retail, which now accounts for over 50% of its sales. This transition began in 2016 with the replacement of the outdated Hybris online shop with a cloud-native, high-performance e-commerce platform built using AWS, Google, and Oracle Cloud.
The new platform has enabled Breuninger to expand its international e-commerce business in ten countries, offering premium and luxury fashion and lifestyle products. The IT organization has grown substantially, with over 90 in-house software developers, 20 product owners, UX designers, architects, and system engineers. A data platform team was also established to provide state-of-the-art reporting and data science services, supporting around 6,500 Breuninger employees.
The transformation has also led to cultural changes within the company, adopting a New Work approach with modern working time models, flexible work arrangements, and a more relaxed office environment. The IT department now operates on an equal footing with other business units, influencing strategic decisions and managing IT-supported customer processes, merchandise services, and corporate services.
Key innovations include the introduction of a new e-shop, a redeveloped Breuninger app, and advanced data analytics tools. The company has also implemented forecasting models for customer returns and customer value development, as well as product and outfit recommenders based on customer purchase data.
