Despite the death of department stores and the Internet: PKZ invests one million francs in its new seven-storey super branch

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PKZ quietly opened its converted branch on Zurich Bahnhofstrasse last week. Only the best customers and partners were invited. There was no major advertising campaign surrounding the opening ceremony. The fashion chain has every reason to celebrate its new home. Because the branch is completely out of line.

In recent years, the Manor store in Zurich and the Modissa fashion store had to close. This year, the doors of the Jelmoli store will also close forever. PKZ is taking the opposite approach and expanding. Customers can now try on and shop the fashion world’s latest men’s clothing across seven floors. The chain invested one million francs in the renovation and expansion of the sales area by 200 square metres. Currently there is a total of 1,400 square meters.

“We have been following a countercyclical investment policy for a long time,” PKZ CEO Manuela Beer (54) tells Blick. “We still rely heavily on captive retail and are taking advantage of opportunities in the market,” she adds.

Best customer service in Switzerland

Beer hopes for the Jelmoli effect: “With the announcement of the end of Jelmoli, various fashion brands are losing sales space and therefore sales. As a result, many clients become homeless. “Hopefully we can address the breach,” says the general manager.

PKZ has been renting the branch since the 1950s. For a long time there was a private bank on the upper floors. But the breach of banking secrecy has affected some financial institutions more than online trading has affected brick-and-mortar trading. The bank had not been in the building for a long time, and the fashion chain used the top floor as an event space and has now integrated it into the retail space. Here, customers can customize their ready-made shirts and suits.

“Service and individual advice are important components,” says Beer. He also points out other offers such as masslounge and personal shopping, where both are actively used. Their strategy is working: PKZ may have the best customer service in Switzerland, according to a survey conducted by Blick together with data researchers Statista at the end of February.

Significant growth in a shrinking market

The operating figures also confirm the path followed: in 2022, PKZ managed to increase its sales by a strong increase of 18 percent to 190 million francs. “We were able to continue to grow in 2023 and specifically increase online business by 10 percent,” says Beer. The weather put a small dent in his work, as in everyone else’s. But now we’ve made a good start to 2024 and are on the right track.”

The fashion chain currently operates 41 branches in Switzerland. “And there are one or two locations where we could envision additional expansion,” Beer says. And that’s true in the overall market for clothing and footwear, which has shrunk by over 20 percent since 2015, according to market research institute GFK, and that includes online retail. In fixed retail, the decrease was up to 35 percent.

Source :Blick