Wourth Group’s acquisition of Peter Hahn significantly boosts turnover.
- The newly rebranded group aims to cater to its over-50 demographic.
- Wourth Group’s strategy involves reviving companies acquired from administration.
- Home manufacturing and physical store strategy strengthens brand loyalty.
- Potential reopening of Peter Hahn’s UK website amidst Brexit challenges.
The Wourth Group, formerly known as Woolovers, has expanded its portfolio by acquiring the German company Peter Hahn. This strategic purchase is projected to increase Wourth’s annual turnover from £110m to an impressive £300m. The acquisition exemplifies Wourth’s business model, which focuses on acquiring and revitalising companies facing administration. With a customer base primarily over 50, Wourth targets a demographic known for brand loyalty and economic stability.
As part of its strategy, Wourth reintroduced traditional methods such as printed catalogues to appeal to its mature customer demographic, complementing digital solutions. The group plans to open eight additional stores in the UK, recognising the preference of its clientele to experience products before purchase. This ‘blended balance’ approach aims to reconnect with its customer base, combining the convenience of online shopping with the trust of physical stores.
Hotter Shoes, a significant brand within the Wourth portfolio, has witnessed substantial growth under this model. The company, now manufacturing 75% of its shoes in the UK, expects sales to reach £52m by March 2025, doubling the previous year’s figures. This shift towards domestic production not only reduces costs but also aligns with the preferences of the company’s customer base for home-manufactured products.
Meanwhile, Peter Hahn remains a staple in its core markets such as Germany, Austria, and Switzerland. However, its UK website remains suspended due to administrative issues following Brexit. Despite these challenges, Wourth considers reopening the website feasible should conditions improve, thus potentially expanding Peter Hahn’s reach within the UK market.
Mike Lester, the chief executive of Wourth Group, who joined as CFO in 2017 and became CEO in the same year, has overseen a period of impressive growth, with revenues and EBITDA growing over 30% annually. The group, which includes brands like Hotter Shoes, Scotts of Stow, and Thought Clothing, epitomises a successful transformation strategy by leveraging a synergetic approach to brand management.
The strategic acquisition of Peter Hahn positions Wourth Group for robust growth, leveraging traditional and innovative strategies to engage its loyal customer base.
