HEMA returned to quality basics and doubled profit in two years

HEMA, the Dutch variety-store chain, had spent years losing money in a retail race to the bottom against online marketplaces and discounters like Action. New management decided the answer was not cheaper, but more HEMA: everyday quality products at a fair price, communicated as 'Met liefde gemaakt' (made with love).

The strategy centered on hero products — the brand's own classics — and translated the umbrella concept channel by channel, from packaging to campaigns by Hotel l'Amour. The insight was that Dutch shoppers hunt bargains generally, but from HEMA they expect value for money: a good price-quality ratio, not the lowest price.

Against a 7.5% annual growth target in a market growing 5%, revenue rose 29.3% by the end of the period; profit reached €31.6 million in 2022 and €61.2 million in 2023, against targets of €20 million and €50 million — pulling the chain out of years of losses.