German drugstore leader dm drogerie invests in technology and shopping experience

dm drogerie, Germany’s market leader in the drugstore segment, continues to set industry benchmarks by advancing retail innovation beyond traditional category boundaries.

The company is the price leader in the health & beauty segment, influencing pricing strategies even among German top food retailers. dm adheres to an Everyday Low Pricing (EDLP) strategy, ensuring price stability for consumers. Under this policy, the price of every newly listed product and any price change remains in effect for a minimum of four months.

Above-Average Growth Rates

dm drogerie reported gross revenue of €17.7 billion for its fiscal year ending in September 2024, representing an 11.6% year-over-year increase. In Germany, revenue grew by 9.5% to €12.5 billion, solidifying dm’s leadership in the domestic drugstore market while significantly outpacing growth in the grocery sector.

Between January and October 2024, the drugstore channel in Germany recorded an average revenue increase of 7.2% year-over-year, according to the YouGov FMCG Consumer Index. In contrast, domestic supermarkets and discounters grew by only 3.3%, highlighting dm’s strong competitive position.

International Expansion Propels Growth

Gross revenue from dm’s 13 international subsidiaries rose by 16.5% year-over-year, contributing €5.2 billion to total revenue. While international operations accounted for only one-third of total revenue five years ago, their share has grown to 42% in the 2023/24 fiscal year. This underscores the increasing strategic importance of dm’s international markets.

dm Drives Omnichannel Development

As a leader in technological innovation, dm continues to expand its omnichannel capabilities. The company launched e-commerce operations already in 2022 and has since broadened its digital offerings, including the rollout of 24/7 parcel stations near select stores.

In response to growing demand for self-care and health-focused solutions, dm is also preparing to launch an online pharmacy for the German market, with an initial focus on OTC (over-the-counter) products.

Investment in the Store Network

To support its sustained growth, dm is executing a €1 billion investment plan over five years to modernize its German store network. The retailer aims to renovate 300 stores annually, with a target of 1,800 upgraded locations by 2029. This initiative, launched in 2024, underscores dm’s commitment to enhancing the in-store shopping experience while reinforcing its leadership in the drugstore sector.

At the entrance, dm promotes its loyalty app, offering a 10% discount on all purchases for app users.

A separate fixture at the start of the customer journey highlights on-trend private labels: dm Sportness, dm Bio, and Mivola (OTC).

The first product section features the high-involvement perfumery assortment. The first shelf-end along the customer’s path highlights wellness-themed impulse items at low price points, such as face masks.

The center of the decorative cosmetics section features a newly introduced freestanding fixture designed to resemble a makeup table.

The updated store design incorporates soft, warm pastel colors.

Also at the shelf dm is promoting its loyalty app.

The own-brand Alverde for natural and organic items is showcased next to established cosmetics brands.

Decorative ginkgo leaf elements mark the section with pharmaceutical products.

The home pharmacy aisle is at the center of the store, offering products for well-being, strength, and vitality.

The dm Sportness private label is expanding its shelf space of high-protein functional food.

Category dividers have been redesigned and are aligned with department colors.

Men’s care is a differentiation range and fills a full shelf.

Ceiling decorations signpost larger product worlds, facilitating in-store navigation.

Higher shelves at the back display pet care, detergents, and baby products.

Stylized house outlines mark the home decoration section at the back wall.

The children’s area includes a play zone with tree-inspired design elements.

A diaper-changing corner is installed next to the diaper section.

The ‘Fotoparadies’ area allows customers to print out their own photos.

In front of the cash line, dm offers chilled and unchilled beverages, aligning with the rising convenience trend.

Of the 600+ organic and ecological products, most are branded under dmBio.

The new store layout includes two self-checkouts alongside traditional cash desks.

Next to the exit, customers can collect their online orders from in-store parcel stations.