Otto Group
A German international retail and services group built around e-commerce, logistics, finance, and consumer businesses.
Last updated August 25, 2026
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Overview
Otto Group is a Hamburg-based German trading and services group whose activities span e-commerce, retail, mail order, logistics, financial services, and related consumer businesses. It operates through more than 100 companies, with its main geographic presence in Germany, other European markets, and the United States. Although the group originated as a catalogue retailer, its commercial center has shifted decisively toward digital commerce and platform-based business models. Werner Otto established Werner Otto Versandhandel in Hamburg in August 1949. The company’s first catalogue, issued in 1950, was a small, hand-bound publication featuring 28 pairs of shoes. Product categories broadened during the 1950s to include goods such as porcelain, bicycles, and electrical appliances. By 1960, continued expansion had led the company to move into a large facility and employ approximately 2,000 people. The group developed capabilities beyond merchandise retail at an early stage. Hanseatic Bank was founded in 1969 to provide customer financing, while Hermes Versand was created in 1972 in response to postal strikes and rising postal costs. Otto entered tourism through Otto Reisen in 1980. Under Michael Otto, who took over from his father in 1981, the business expanded into Spain, Italy, the United Kingdom, Eastern Europe, and other markets. By the late 1980s, it was described as the world’s leading mail-order company. Otto began its transition from catalogue retail to digital commerce in the 1990s. It introduced 24-hour express service in 1990, launched an online shopping website in 1995, and placed its catalogue on the internet in 1997. In the following decades, the group expanded through acquisitions, investments, logistics operations, and digital ventures. Its portfolio has included brands and companies such as Crate & Barrel, Hermes, About You, Scayle, Quelle, Neckermann, and Privileg, although ownership has changed over time. The company’s strategic transformation was reflected in its sales mix. During the 2015/2016 financial year, more than 90 percent of mail-order sales were generated online. The final printed edition of the main Otto catalogue appeared in December 2018, by which point approximately 95 percent of orders were received digitally. The group has also invested in automation and robotics, announcing cooperation with Covariant and Boston Dynamics in 2023. Otto Group combines retail and marketplace activities with logistics, financing, and technology capabilities. Its sustainability program is managed at executive-board level and includes ecological and economic objectives. The group helped establish the Aid by Trade Foundation in 2005, associated with the Cotton made in Africa initiative, and has maintained partnerships including work with Save the Children. In December 2024, Otto Group announced an agreement to sell its 64.7 percent majority stake in About You, including the B2B platform Scayle, to Zalando for approximately €1.13 billion. The transaction was completed in July 2025 following regulatory approval. Otto Group therefore remains a diversified, privately controlled international group, while continuing to reshape its portfolio around digital retail, services, logistics, and technology.
History
Otto Group began in Hamburg in August 1949, when Werner Otto founded Werner Otto Versandhandel. The company initially operated as a mail-order retailer. Its first catalogue, published in 1950, contained 28 pairs of shoes and was produced in a very small print run. The catalogue format quickly became the foundation for a broader retail proposition: during the 1950s, Otto added categories including porcelain, bicycles, and electrical appliances. Expansion required a substantially larger operating site by 1960, when the business had around 2,000 employees. The company progressively built a service infrastructure around its retail operation. Hanseatic Bank was founded in 1969 to finance customer purchases. In the same year, the Werner Otto Foundation was established in Hamburg to support medical research. Hermes Versand was created in 1972 after postal strikes and higher postal rates exposed the risks of relying entirely on conventional postal delivery. Otto later entered tourism with the creation of Otto Reisen in 1980. Michael Otto, Werner Otto’s son, took over leadership in 1981. Under his direction, the group expanded beyond Germany into Spain, Italy, the United Kingdom, Eastern Europe, and additional markets. The business benefited from the growth of mail order and was regarded by 1987 as the leading mail-order company worldwide. Following the fall of the Berlin Wall in 1989, Otto’s sales increased in Eastern Europe. The 1990s marked a transition toward faster fulfillment and digital retail. Otto introduced a 24-hour express service in 1990, launched an online shopping website in 1995, and made its catalogue available digitally in 1997. In 1998, it entered the United States through the acquisition of a stake in Chicago-based furniture retailer Crate & Barrel. The group continued to reorganize its portfolio and consolidate brands, including the creation of Unito Versand & Dienstleistungen for its Austrian Universal and Otto businesses in 2003. In 2005, Otto Group sold 75 percent of Hanseatic Bank to Société Générale. The group also used acquisitions and brand rights to broaden its retail presence. In 2009, it secured rights to the Quelle brand and several associated retail brands, including Privileg. It acquired the Neckermann brand in 2012. In 2014, Otto helped establish About You, an online fashion retailer that became an important digital asset and later developed the Scayle B2B commerce platform. By the 2015/2016 financial year, the transformation from catalogue retail to online commerce was well advanced: more than 90 percent of mail-order sales were generated online. The printed Otto main catalogue was discontinued after its December 2018 edition, when roughly 95 percent of orders were arriving through digital channels. This change symbolized the company’s movement from a traditional catalogue house to a digitally led retail and services group. Otto Group has also pursued sustainability and social initiatives. Sustainability objectives were incorporated into corporate goals in 1986. In 2005, the Aid by Trade Foundation was created, and its Cotton made in Africa initiative became a source of cotton for Otto Group and other textile companies. The group has also described partnerships with organizations such as Save the Children. In 2023, Otto Group announced cooperation with Covariant and Boston Dynamics, reflecting a continuing interest in warehouse automation and robotics. In December 2024, it agreed to sell its 64.7 percent stake in About You, including Scayle, to Zalando for approximately €1.13 billion. The transaction closed in July 2025 after regulatory approval. Otto Group remains a privately controlled international group active across retail, e-commerce, logistics, financing, and related services.
- 2025
About You transaction closes
[1]The sale to Zalando closed in July 2025 after regulatory approval.
- 2024
Agreement to sell About You stake
[1]Otto Group announced the sale of its 64.7 percent majority stake in About You and Scayle to Zalando.
- 2023
Robotics cooperation announced
[1]Otto Group announced cooperation with Covariant and Boston Dynamics.
- 2018
Final printed Otto main catalogue
[1]The December 2018 edition was the final printed edition of the main Otto catalogue.
- 2014
About You is founded
[1]The online fashion retailer About You was founded as part of Otto Group’s digital-commerce expansion.
- 2005
Majority stake in Hanseatic Bank is sold
[1]Otto Group sold 75 percent of Hanseatic Bank to Société Générale.
- 1998
Entry into the United States
[1]Otto Group entered the US market by acquiring a stake in Crate & Barrel.
- 1995
Otto launches an online shopping website
[1]The group began selling through an online shopping website, starting its formal digital-commerce phase.
- 1981
Michael Otto takes over the company
[1]Michael Otto succeeded his father and led the group through major international and technological expansion.
- 1972
Hermes Versand is established
[1]Otto created Hermes Versand to strengthen delivery capacity amid postal strikes and increased postal costs.
Products and positioning
A diversified, privately controlled European retail and services group combining consumer commerce with logistics, financing, technology, and platform businesses.
E-commerce and general merchandise retail · 1949
Otto
Otto is the group’s core consumer retail business and the successor to its original catalogue operation. It offers a broad range of merchandise, including fashion, furniture, household goods, appliances, and consumer electronics. While the business was historically associated with printed catalogues and mail order, its primary customer interface is now digital. The shift to online ordering became dominant during the 2010s, and the main printed catalogue ended in 2018.
Logistics and parcel delivery · 1972
Hermes
Hermes was created by Otto Group as a delivery operation and developed into a major logistics business serving parcel distribution and related fulfillment needs. Its origins lie in the company’s response to postal strikes and rising postal rates in 1972. Hermes supports the movement of goods associated with e-commerce and retail, although its operations and ownership structure have varied by market.
Consumer finance · 1969
Hanseatic Bank
Hanseatic Bank was founded to enable customers to finance purchases made through Otto’s retail operation. It represents the group’s historical expansion into financial services. Otto Group sold 75 percent of the bank to Société Générale in 2005, changing its ownership position while preserving the bank’s connection to the group’s wider consumer and retail ecosystem.
Online fashion retail · 2014
About You
About You was founded in 2014 as an online fashion retailer and became one of Otto Group’s prominent digital ventures. It represented the group’s move toward mobile-first, personalized fashion commerce rather than traditional catalogue retail. Otto Group announced the sale of its 64.7 percent majority stake to Zalando in 2024; the transaction, including Scayle, closed in July 2025.
B2B commerce technology
Scayle
Scayle is a B2B commerce platform associated with About You and Otto Group’s digital technology portfolio. It provides commerce infrastructure for businesses seeking to operate online retail platforms. Scayle was included in the transaction through which Otto Group sold its majority stake in About You to Zalando.
Sustainability initiative · 2005
Cotton made in Africa
Cotton made in Africa is an initiative associated with the Aid by Trade Foundation, created in 2005. It promotes the use of cotton sourced from participating African growers and has been used by Otto Group and other textile companies. The initiative forms part of Otto Group’s broader sustainability and responsible-sourcing activities.
Controversies
2021
Criticism of Hermes UK parcel handling
Hermes UK faced renewed media criticism involving allegations about mishandled packages and poor customer service.
2016
Criticism of Hermes UK courier pay
Hermes UK was criticized over allegations that self-employed couriers could be paid below the minimum wage because compensation was tied to the number of parcels delivered.
Marketing campaigns
- 2005Cotton made in Africa
International · Africa · Europe
Otto Group supported the creation of the Aid by Trade Foundation and the Cotton made in Africa initiative, linking textile sourcing with social and environmental objectives.
Outcome. The initiative became part of Otto Group’s sustainability and textile-sourcing activities.
Brand decisions
2024
Sale of majority stake in About YouM&ABackground
Otto Group announced a portfolio transaction involving one of its major digital fashion assets and the related Scayle platform.
Action taken
The group agreed to sell its 64.7 percent majority stake in About You to Zalando for approximately €1.13 billion, including Scayle.
Aftermath
The transaction received regulatory approval and closed in July 2025.
Transaction value. Approximately €1.13 billion (Announced December 2024; completed July 2025)
- Zalando — Zalando agreed to acquire the stake and the associated Scayle platform.
2023
Expansion into warehouse roboticsStrategyBackground
E-commerce growth increased the importance of automation and efficient fulfillment operations.
Action taken
Otto Group announced cooperation with Covariant and Boston Dynamics.
Aftermath
The cooperation strengthened the group’s technology and automation agenda.
2018
Discontinuation of the main printed catalogueStrategyBackground
Digital ordering had become the dominant channel, accounting for approximately 95 percent of orders.
Action taken
Otto published the final printed edition of its main catalogue in December 2018.
Aftermath
The decision marked the effective completion of the company’s shift from catalogue-led retail toward online commerce.
1995
Launch of online shoppingProduct launchBackground
The growth of the internet created an opportunity to supplement Otto’s established catalogue and mail-order model.
Action taken
Otto Group launched an online shopping website.
Aftermath
The initiative became the starting point for the group’s long-term transition to digital commerce.
Recent events
InPost completes acquisition of Mondial Relay[2]
Reported:
InPost and Otto Group announced the successful completion of InPost's acquisition of Mondial Relay for an adjusted purchase price of EUR 513 million. The announcement says the acquisition is expected to expand InPost's addressable market and support its international strategy.
Sources2 sources
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