Otto Group/Crate and Barrel
Otto Group, formerly known as Werner Otto Versandhandel or Otto Versand, is a prominent German retail company headquartered in Hamburg. It operates globally across various sectors including retail, e-commerce, financing, logistics, and mail order. As of 2023, the Group boasted a revenue of €16.2 billion and employed approximately 41,186 individuals.
History
Established in August 1949 by Werner Otto in Hamburg, the company initially operated under the name Werner Otto Versandhandel. Its first catalog, published in 1950 with a print run of 300 copies, showcased 28 pairs of shoes across 14 hand-bound pages. Over time, the catalog expanded to include a diverse range of products such as porcelain, bicycles, and electrical appliances. By 1960, Otto Versand had moved into a sizable 205,000-square meter building and employed 2,000 individuals.
In 1969, the company founded the Hanseatic Bank to facilitate customer financing, and concurrently, the Werner Otto Foundation was established to support medical research. The launch of the delivery service Hermes Versand in 1972 addressed challenges posed by postal strikes and increased rates. In 1980, Otto Reisen GmbH marked the company's foray into the tourism industry.
In 1981, Michael Otto, son of the founder, assumed leadership of the company. Under his guidance, the Otto Group expanded its operations into Spain, Italy, Great Britain, and other international markets. By 1987, it had emerged as the leading mail order company worldwide. The fall of the Berlin Wall in 1989 facilitated further sales growth in Eastern Europe.
In 1990, the company introduced a 24-hour express service, and in 1995, it launched its first online shopping website. The transition to digital continued in 1997 with the publication of the catalog on the internet. Expansion into the US market occurred in 1998 with the acquisition of a stake in the Chicago-based furniture store Crate & Barrel.
In 2003, the Austrian brands Universal and Otto were consolidated under Unito Versand & Dienstleistungen, while the German mail order business was rebranded as Otto GmbH & Co KG. The sale of 75% of Hanseatic Bank shares to Société Générale transpired in 2005.
In subsequent years, the Otto Group secured rights to various retail brands including Quelle and Privileg in 2009, followed by the acquisition of the Neckermann brand in 2012. The online fashion retailer About You was founded in 2014.
By the 2015/2016 financial year, over 90% of mail order sales were conducted online, positioning the Otto Group as the second-largest German online retailer behind Amazon. The last printed edition of the Otto main catalog was issued in December 2018, marking a significant shift towards digital platforms.
In 2023, the Otto Group forged partnerships with Covariant and Boston Dynamics, marking its continued commitment to innovation and technological advancement.
Corporate Structure
Since 2016, the shares owned by Michael Otto and his son, Benjamin Otto, have been consolidated within a foundation.
The Group operates a diverse portfolio of over 100 companies globally, with a primary focus on Germany, Europe, and the United States. Its business activities span across e-commerce, brick-and-mortar retail, and catalog sales channels. In the 2023 financial year, the Otto Group reported a total revenue of €16.2 billion, with approximately €12 billion attributed to online sales, solidifying its position as one of the largest online retailers worldwide.
Subsidiaries within the Otto Group:
Platforms, Brands, and Retailers:
- About You
- Bonprix
- Crate & Barrel
- Heine
- Küche & Co
- Sheego
- Venus
- Witt
- Baur Retail
- Frankonia
- Freemans Grattan
- Limango
- Manufactum
- Unito
Services:
- Baur Logistics
- Evri
- Girard Agediss
- Hermes Einrichtungs Service
- Hermes Fulfilment
- Hermes Germany
- Otto International
- EOS Group
- Hanseatic Bank
