People
In this first episode of the 2026 World Retail Podcast series on Unlocking volume growth, Ian McGarrigle, Chair, World Retail Congress, is joined by Sergio Bucher, Otto Group, and Paul Martin, Global Retail Growth Leader, Partner & Managing Director, AlixPartners, for a wide-ranging conversation on getting the basics right.
Listen to the episode on Spotify or Apple, or read the transcript below.
Ian McGarrigle:
Welcome to the World Retail Podcast. This conversation is from our 2026 series, produced in partnership with the global Retail team at AlixPartners.
This series, Unlocking volume growth: How to succeed in an ever-evolving retail environment, focuses on one of the most pressing topics in retail today. Margins are tight, consumer confidence is low, and competition is relentless. So, how do retailers grow when the old rules no longer apply?
Today, Paul Martin and I are joined by Sergio Bucher, a member of the supervisory board of the Otto Group, one of Germany’s largest retailers with a turnover of over €19 billion. Sergio has extensive experience leading retail brands like Crate & Barrel, Manufactum, Freemans, and Grattan, and has held senior roles at Inditex, Puma, Amazon Fashion, and Nike.
Sergio, it’s our great pleasure to welcome you to the World Retail Podcast. How are you?
Sergio Bucher:
Hello, Ian. Hello, Paul. It’s a pleasure to be here. Thank you for inviting me to join you.
Ian McGarrigle:
Sergio, you’re part of the Otto Group, which you’ve described as one of the retail world’s best-kept secrets. Could you introduce the Otto Group?
Sergio Bucher:
Of course. We’re a multi-billion-dollar, vertically integrated retail business. What has made the Otto Group successful is our integration across various retail functions.
We have sourcing organizations, retail operations, a bank to provide credit, and supply chain organizations. For example, we own Hermes, a logistics company in Germany. We’re involved in the entire retail value chain.
Being family-owned allows us to take a long-term view—we optimize for the next generation, not just the next quarter. We operate about 30 companies in 40 countries worldwide. Around 80% of our activities are online, which is why we consider ourselves both a retailer and a tech company.
Ian McGarrigle:
Thank you, Sergio. Otto Group is hugely relevant to this discussion. Paul, over to you.
Paul Martin:
Thanks, Ian. Sergio, at AlixPartners, we’re privileged to have many conversations with retail leaders around the world. One recurring theme is that like-for-like volume growth should be a priority for retail leaders. Do you agree with this statement, and why?
Sergio Bucher:
Retailers want to grow, but stagnant markets make it very difficult. Growth should be a priority, but it depends on the company’s current state. To grow, you need the right infrastructure, technology, supply chain, and sourcing capabilities.
Trying to grow a company that isn’t ready can lead to disaster. During the pandemic, Crate & Barrel nearly doubled revenues in two years as people redesigned their homes, but our backend couldn’t keep up, leaving 300 containers stuck in a parking lot.
We spent the next three years upgrading our systems, moving to the cloud, and implementing state-of-the-art technology. Now, we’re positioned to grow 8–10% annually because we’ve taken the time and invested the money to ensure our backend is ready to serve customers to their fullest satisfaction.
Ian McGarrigle:
That’s fascinating. How would you describe operational excellence within the Otto Group?
Sergio Bucher:
Operational excellence is in our DNA. By measuring our “perfect order rate” (OPOR)—the percentage of orders delivered flawlessly—and auditing any issues, we’ve improved our Net Promoter Score (NPS) by 10 points in 18 months.
This level of discipline isn’t just a differentiator—it’s essential for survival.
Ian McGarrigle:
So, you’re really pushing for customer feedback to drive improvements?
Sergio Bucher:
Exactly. At the end of the day, we all know what customers want: the right product, delivered on time, with no friction, and a friendly delivery experience. If you get that right, you’re 90% of the way there.
Operational excellence and service are absolutely key to our success.
Paul Martin:
Building on Ian’s question, you’ve already touched on some of the four Ps like product, pricing, and promotion. But I’d like to explore two other critical areas: the operational flywheel and technology.
Retail businesses are often complex, with multiple departments that need to work seamlessly together. For example, supply chains must align with e-commerce teams and pricing strategies. At the same time, technology and data infrastructure are foundational to making this work. Do you agree that optimizing these areas is pivotal for the future?
Sergio Bucher:
I couldn’t agree more, Paul. At Otto, we’ve taken significant steps to integrate our operations. For example, we have a sourcing organization in Hong Kong that works as an extended arm of our buying and design teams. This vertical integration ensures alignment across silos.
We’ve also completely overhauled our processes and tech stack. Otto was originally a catalog business, but we pivoted to become an online-first organization. Over five years, we redesigned everything—from backend systems to user interfaces, payment methods, and marketing tools. It was like performing open-heart surgery while overhauling multiple systems simultaneously.
We could not afford to fail. I’m just so impressed with how this has been delivered. Building on the strength of a structured and process-driven organization, we’ve been able to achieve this. We finished the implementation last year, and ever since, we’re growing double digits in this marketplace because we mastered these fundamentals. It’s now become one of our growth engines.
Another example is Crate & Barrel. We’re developing integrated business planning, a new software system. AI is playing a big role here.
We prioritized building a centralized data infrastructure to support future systems. Integrated business planning now allows us to plan vendor capacity and guarantee delivery dates for customers—all within a single system where all functions collaborate seamlessly.
It’s heavy lifting. For example, we had to change our entire point-of-sale system. We completed that in November last year. The results have been fantastic. Customers can now sit on a sofa, design their living room with our consultants, and place an order. They receive a pay-by-link in their inbox and don’t even have to go through the cash desk anymore.
This foundation is now allowing us to focus on growth because we know we can handle the additional volume we want to deliver within a stable and reliable environment.
Ian McGarrigle:
That’s fascinating. It sounds like culture also plays a big role in driving these changes. Could you share more about the culture at Otto Group?
Sergio Bucher:
It’s been a journey. We’re a decentralized organization, which has allowed us to succeed in diverse markets. Each company has its own CEO, executive team, and board, and they’re free to develop strategies tailored to their markets.
Historically, we’ve been a friendly, family-owned business, but that sometimes came at the cost of performance. Our new CEO, Petra Scharner-Wolff, has focused on balancing friendliness with performance. We’ve also taken performance evaluations more seriously, using KPIs to ensure we stay on track.
Culture evolves, and it’s essential to align it with the company’s needs.
Paul Martin:
I think the points you’ve just mentioned are so important in this day and age. At any event we attend or in any publication we read, we’re constantly bombarded with the idea that AI is going to be the eternal salvation for every industry going forward—whether we believe that or not.
In that context, it’s increasingly evident that data-driven decisions are absolutely critical for organizations to succeed. You gave us a couple of examples earlier, but to Ian’s point, human nature is also incredibly important.
Could you share some examples where human nature—particularly in buying, merchandising, and commercial functions—is being improved and fine-tuned with better data capabilities? How are humans and machines working together to drive better outcomes?
Sergio Bucher:
AI is a priority for us. We’re not developing our own large language models, but we’re fast followers, partnering with companies like Microsoft and Google. AI helps us forecast better, plan more effectively, and reduce working capital.
At the same time, we’re building “moats” against AI. For example, we don’t sell Crate & Barrel products on marketplaces because we want full control over the customer experience.
Ian McGarrigle:
Looking ahead to 2030, where do you see the biggest opportunities for retailers who get the basics right?
Sergio Bucher:
AI will undoubtedly play a big role, but size and financial stability will be critical for survival. Retailers who master the fundamentals and differentiate themselves will thrive.
