The encyclopedia · Strategy & Leadership · Marketing decision · 1973–2024
dm became Germany's top drugstore by refusing discount games — always-low prices won
dm never joins weekly sales: its permanent low prices, own brands like Balea and self-organized stores built the highest loyalty in German drugstore retail.
dm-drogerie markt
the move
Founded by Götz Werner in 1973 in Karlsruhe, dm-drogerie markt grew into Germany's largest drugstore chain — €11.4 billion in German revenue in 2023 — while never running a single national discount campaign.
Its mechanism is the permanent low price: shelves show everyday low prices and each tag states when the price last changed. Analysts say this 'no up-and-down' policy is why dm has the highest customer loyalty in the sector — shoppers know that whenever they come, they get the best price, so they never wait for a sale.
Own brands anchor the loop: Balea is cited as the industry's model private label, outgrowing its 'store brand' image, and dm runs 28 own brands with 5,500 items. Founded in Karlsruhe in 1973 by Götz Werner, dm grew to 4,200 stores across 14 European countries, with half the company held by a charitable foundation since 2010.
why it works
- No discount weeks means customers never wait, compare or time their shopping.
- Permanent low prices and visible tags make the pricing promise verifiable.
- Own brands like Balea convert shoppers into repeat, category-committed customers.
- A foundation-owned structure protects the long-term pricing stance from shareholder pressure.
what transfers
A loyalty loop can be built on honesty instead of promotions: when the price is always the same, customers stop waiting for sales — that trust is a moat rivals cannot discount away.
what came after
dm kept growing through inflation while competitors like Rossmann and Müller leaned harder on weekly deals and app coupons. It remained Germany's top drugstore, with €11.4 billion in German revenue in 2023, and kept expanding across Europe while holding the no-price-games stance.
references
- Drogerien machen Supermärkten immer stärker Konkurrenz
- Fast jeder kauft bei dm ein — doch wem gehört die Drogeriekette eigentlich?
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