Adler Modemärkte AG is one of the leading and largest textile retail chains in Germany. The industry‘ s trade journal, TextilWirtschaft, ranks the Company 20th in its Top 100 Ranking. As at the end of 2012 the Group operated a total of 169 stores (previous year: 162), 139 of which (previous year: 132) in Germany, 27 (previous year: 28) in Austria, two (previous year: 2) in Luxembourg and one in Switzerland. ADLER is focussing on large-space retail concepts, i.e., the space occupied by the stores it operates is usually considerably more than 1,000 m². Spacious sales floors with wide aisles as well as spacious fitting rooms and rest areas highlight the Company‘s customer-oriented approach. The Company also operates its own online shop at www.adlermode.com.

In terms of fit, fashionability, functionality and quality, ADLER‘s product range is primarily tailored to the age group of over 45 year-olds, whose share of the population will steadily grow. ADLER offers high-quality products that represent attractive value for money in the lower mid-range price segment. ADLER offers a broad and extensive product range of womenswear, menswear and underwear. With a supplementary range consisting of accessories, footwear, kidswear and babywear, traditional dress and durable goods, ADLER offers a well-rounded product portfolio, thus harnessing the cross-selling potential in its stores.

The Group‘s stores are the main revenue drivers of ADLER. The stores generate about 90% of the Company‘s revenue and the vast majority of its earnings. Furthermore, many of ADLER‘s stores also carry external brands of womenswear, menswear and kidswear. While it already offers a number of different external brands popular in Germany and elsewhere, in 2012 ADLER entered into an exclusive cooperation agreement for kidswear with Tom Tailor AG, Hamburg. Since September 2012, every ADLER store with a children‘s fashion section exclusively carries the Tom Tailor Kids brand.

The external brands that the Company carries – often showcased in shop-in-shop concepts – are often positioned near the entrances of ADLER stores. This helps contribute to an attractive storefront design, a highlight found especially in new and modernised stores. ADLER specifically displays combinations of the external brands with its own younger and fashionable brands like Viventy by Bernd Berger, Via Cortesa and Eagle No.7. In this way ADLER wants to attract new customers that will grow into the age group of over 45 year-olds. This simultaneously also introduces new customers to ADLER‘ s own brands and the Company‘s customer loyalty instruments. The Executive Board considers the current share of revenue attributable to external brands (approximately 10%) is appropriate.