The Rotary Club of
Little Falls #4843

Johannes Neckermann - July 17th 2013


At this evenings meeting, Johannes Neckermann spoke about the Neckermann Empire - its rise and recent fall.

The business, located in Germany, was started in 1950 by Joseph Neckermann as a mail order company before opening small department stores. At the peak of the company's activity, it had over 20,000 employees and a turnover of two billion dollars a year. After being in existence for sixty-two years, it closed it's doors just last year.

It's initial sales were material for dress making but quickly moved into ready-made clothing. Further diversification into household items included selling radios, TV's (black and white in 1952), fridges then to cars, motor cycles, followed by food items, all by mail. Many items were as much as 25% less than comparable items in the shops. The empire did not stop there. It opened travel agencies, hotels around the world until the name 'Neckermann' became known as a one-stop shop for all your needs.

By 1975, sales began to fall off so the decision was taken to merge with a similar company. This did not go well as it turned out to be more of a hostile take-over rather than a merger. The new company did not understand the business and the shareholders ended up loosing about two thirds of their value. Even though they embraced the internet to sell, and was averaging around 1.2 billion in revenue, it was not enough, and the company went into receivership in 2010.

The company slogan was "Neckermann Makes it Possible", But that was not enough to save the company. Johannes, who had worked for the company since a teenager, left the company in 1978 just three years after the take over.

Pictured with Neckermann (center holding the mail order catalog) is Ernie Pelli and Mena, both Rotary Members.