HOME WHAT WE DO WHO WE ARE OUR PORTFOLIO RESPONSIBLE INVESTING CONTACT INVESTOR PORTAL NKD GROUP Unique market position and strong roll-out potential NKD is a market-leading discount retailer with over 1,800 stores across Germany, Austria, Italy, Croatia, Slovenia and Czech Republic. >1,800 stores across Europe €6 average ticket item €15 average basket spend Description NKD is a market-leading discount retailer with over 1,800 stores across Germany, Austria and Slovenia and with a significant and growing presence in Italy, Croatia and Eastern Europe. The store sells a mix of basic apparel and homeware products at competitive prices. NKD has a unique market positioning operating typically from small format stores in provincial towns. NKD stores often serve as a local community one-stop-shop with a strong customer connection. The company has considerable further roll-out potential in its core markets. Transaction We have spent a significant amount of time analysing the retail market in the context of the well-documented struggles the sector has faced in recent years. We focused in on the discount retail subsegment of the market on the basis that it is defensible, less susceptible to online disruption and offers significant data-driven upsides. We felt that NKD Group in particular had a unique market positioning with a differentiated location strategy. We were able to enter bilateral negotiations to acquire the company in early 2019 and the acquisition was completed in May 2019. What we've done Since the investment in the business, NKD has restarted its new store roll-out programme in existing and new European markets targeting over 100 new store openings a year. With the help of the TDR Data Science team, NKD has implemented a number of value accretive initiatives focused on optimising discounting levels, eliminating low return marketing spend and improving promotion targeting and merchandise selection. Key facts Sector: Retail Status: Unrealised Date of initial investment: May 2019 Website: www.nkd.com Deal type: Private sale Contact email: nkdgroup@tdrcapital.com Back to Our portfolio View previous case study View next case study Quick links Home What we do Who we are Our portfolio Contact us Investor relations Recruitment Media Responsible investing Terms & Conditions Privacy policy Disclosure & transparency Modern Slavery Act 2015 Contact 20 Bentinck Street, London W1U 2EU tel: +44 20 7399 4200 email: info@tdrcapital.com Directions Bentinck Street is located in Marylebone near to Bond Street and Oxford Circus tube stations, and is accessible via the Central, Jubilee, Bakerloo and Victoria lines. © TDR Capital LLP 2021