Annual Report 2012/13 - Clas Ohlson

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Market trends E-commerce continues to grow Online shopping, e-commerce, is rising steadily. According to the EU, the expected annual growth rate of e-commerce in Western Europe over the next five years is 11 per cent, from EUR 112 billion to EUR 191 billion in 2017. In the UK, e-commerce already accounts for 13 per cent of the total retail market and is expected to reach 15 per cent by 2017. The corresponding figure for Sweden was 5 per cent and, according to HUI, is expected to be 13 per cent. The best-performing segments were home electronics, clothing and shoes. The fastest growing segments were sport and leisure, home furnishings and furniture. More than seven in ten consumers say they have made a purchase online in the past three months, a relatively unchanged level according to HUI. Although the household economic outlook weakened in 2012 and the recession had an overall impact on the retail market, faith in the future among e-retailers also remains strong. M-commerce poised for growth In Western Europe, mobile commerce is expected to rise eleven-fold to EUR 19.2 billion in 2017, according to global research and advisory firm Forrester Research. Europeans spent EUR 1.7 billion on mobile purchases in 2012, which is 1 per cent of total e-commerce sales. M-commerce is expected to represent almost 7 per cent of total e-commerce sales by 2017. The number of individuals who make mobile purchases will increase, rather than the amount that is spent. According to Forrester, the number of mobile consumers will rise dramatically from 7.6 million in 2011 to more than 79 million in 2017 (or 45 per cent of all mobile phone owners). As well as transactions, mobiles will also play a critical role in other parts of the retail market, such as store localisation, discount coupons and price comparisons. According to the survey, 48 per cent of all Europeans owned a smartphone in 2012. This means that consumers are already online – they can search and make purchases wherever they are, whenever they want to. Availability of information on the web means that consumers increasingly conduct pre-purchase research – they search for all kinds of product information online before buying. Individual purchase decisions are now made through a variety of channels. Major investments in non-central shopping centres In the Nordic region, major investments in non-central shopping centres in recent years have led to a growing share of purchasing power being concentrated to fewer towns and retail centres. Sweden, in particular, has invested considerably more in non-central shopping centres than centrally located centres over the past ten years and this trend is continuing. Many city centres have been adversely impacted by the increasing trend to shop at large out-of-town retail centres. Customers make carefully researched choices During a recession, customers become better at making careful choices and seeking more value for money. The desire to seek more value for money usually persists and consumers subsequently spend more time comparing products, prices and quality before making a purchase decision, which involves moving between e-commerce sites, physical stores, shopping blogs and social media to find the right product for the right price. For the retail market, this means that the significance of e-commerce sites as display windows and marketing channels increases more than sales figures actually indicate. Purchase decisions are often made long before the customer visits the store, and this presents new challenges and opportunities for the retail market. Own products Retail chains increasingly market products under their own brands. Clas Ohlson has focused on own brands for many years, including Cotech, Cocraft, Coline and Exibel. By developing own brands, Clas Ohlson can offer high quality at low cost, since development and manufacturing costs are lower and goods can be purchased directly from manufacturers without costly intermediaries. Read more about Clas Ohlson’s investment in own brands on page 21. Competitors Few competitors can rival the breadth of Clas Ohlson’s product range. Those that come closest are Biltema, with stores throughout the Nordic region, and Jula in Sweden, 9 Norway and Poland. Clas Ohlson also competes in five 8 specific product 7 categories with such companies as Media Markt, Järnia, Bauhaus, K-rauta, Rusta, Teknikmagasinet 6 5 4 3 2 1 Private consumption and retail sales Trend in private consumption and retail sales in fixed prices in Sweden 2008–2012, % Sweden 9 8 7 6 5 4 3 2 1 0 0 Private consumption and retail sales -1 Trend in 08 private 09consumption 10 and 11 retail sales 12 in fixed prices Retail sales, in Norway Sweden 2008–2012, % Private consumption, Sweden Norway 9 8 7 6 5 4 3 2 1 0 -1 08 09 10 11 12 Retail sales, Sweden Source: SCB. Private consumption, Sweden -1 08 09 10 11 12 Retail sales, Norway Source: SSB. Private consumption, Norway 10 9 8 Market overview 7 7 6 5
and Kjell & Co. As shown in the table on page 11, a large number of stores have been opened by both Clas Ohlson and our major competitors in the past five years. The total number of stores in Sweden has risen from 245 to 355. To a certain extent, Clas Ohlson also competes with supermarkets and department stores such as Coop Forum and Ica Maxi in Sweden, Obs in Norway and Anttila in Finland. Of these, only Teknikmagasinet and Kjell & Co have a similar establishment philosophy to Clas Ohlson, with stores located preferably in town centres and busy shopping centres. In the UK, Clas Ohlson’s competitors include store chains such as Argus, Maplin and Robert Dyas, which offer products in some of Clas Ohlson’s five product categories. However, no UK competitor has a concept, establishment strategy or product range strategy that is similar to that of Clas Ohlson. Clas Ohlson compared with a selection of competitors 9 Main competition and the number of stores in each country* Sweden Norway Finland 6 UK Year 2012/13 2007/08 2012/13 2012/13 2012/13 of start 73 45 62 27 3 12 1918 • • • • • Biltema 31 18 53 14 1 1963 • • • • • 0 Jula 36 24 17 -1 1979 • • • • • 08 09 10 11 12 8 7 5 4 2 Retail sales, Sweden Private consumption, Sweden Electricity Multimedia Leisure Hardware Home Rusta 68 57 1986 • • • Teknikmagasinet 81 68 23 4 1989 • • 9 9 Kjell 8 & Co 71 33 8 1990 • • 7 7 6 6 5 5 4 extra bygg 4 3 3 2 2 1 1 0 0 -1 -1 08 09 10 11 12 08 09 10 11 12 Retail sales, Norway Retail sales, Sweden Private consumption, Sweden Private consumption, Norway COOP Obs bygg/ Järnia 71 83 165 1951 • • • 82 1907 • • • • Maxbo 75 1995 • • Anttila 30 1953 • • • • K-rauta 21 n/a 43 1940 • • • Argos >740 1973 • • • • • 9 8 7 * Source: Web sites. 6 n/a = not available 4 5 3 4 2 3 1 2 0 1 -1 0 -2 -1 Maplin 205 1972 • • Robert Dyas 100 1872 • • • Private 08consumption 09 and 10 retail 11 sales 12 Trend in Retail private sales, Norway consumption and retail sales in fixed prices Private consumption, in Finland Norway 2008–2012, % Finland UK 7 6 5 Private -3 consumption and retail sales 08 09 10 11 12 Trend in private consumption and retail sales in fixed prices in the UK 2008–2012, % Retail sales, Finland Private consumption, Finland 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 -1 -1 -2 -2 -3 -3 08 09 10 11 12 Retail sales, Finland Private consumption, Finland Source: Statistics, Finland. -4 08 09 10 11 12 Retail sales, UK Private consumption, UK Source: National Statistics. 6 5 Market overview 11 4
Page 1 and 2: Annual Report 2012/13
Page 3 and 4: More people discover Clas Ohls Clas
Page 5 and 6: International expansion The year in
Page 7 and 8: share responsibility for improving
Page 9 and 10: Strategic orientation Clas Ohlson
Page 11 and 12: High level of service The level of
Page 13: Market overview Overall, the retail
Page 17 and 18: Marketing Our marketing communicati
Page 19 and 20: Multi-channel strategy - “one Cla
Page 21 and 22: Three sizes Clas Ohlson has custome
Page 23 and 24: New markets - the key to internatio
Page 25 and 26: environmental properties of product
Page 27 and 28: Clas Ohlson's distribution centre i
Page 29 and 30: smaller, individual specialist reta
Page 31 and 32: Sustainable development Clas Ohlson
Page 33 and 34: Significant events during the year
Page 35 and 36: Business ethics Clas Ohlson works t
Page 37 and 38: Preventive and training measures In
Page 39 and 40: The CSR audit process At Clas Ohlso
Page 41 and 42: From Lund to London in less than tw
Page 43 and 44: Focus on spare parts - Clas Ohlson
Page 45 and 46: Organisation and responsibility Env
Page 47 and 48: Clas Ohlson’s catalogues are prin
Page 49 and 50: One of Sweden's largest Annual Gene
Page 51 and 52: Trend in share capital Additional A
Page 53 and 54: On 21 November 2012, the Swedish Go
Page 55 and 56: ses the Chairman of the AGM. At Cla
Page 57 and 58: nance of subsidiaries, as well as t
Page 59 and 60: Control environment The control env
Page 61 and 62: financial year, LTI 2010 was conclu
Page 63 and 64: Comments Sales Sales amounted to SE
Page 65 and 66:
Group Balance sheet SEK M Note 30 A
Page 67 and 68:
Parent Company Balance sheet SEK M
Page 69 and 70:
and expenses directly attributable
Page 71 and 72:
Price risk The price risk is regard
Page 73 and 74:
emuneration is also conditional upo
Page 75 and 76:
Note 10 Earnings per share Earnings
Page 77 and 78:
Of the total expense, SEK 0.0 M (0.
Page 79 and 80:
Group 2012/13 2011/12 Rents and lea
Page 81 and 82:
Audit report To the Annual General
Page 83 and 84:
Björn Haid Board member since 1990
Page 85 and 86:
Henrik Andersson Board member since
Page 87 and 88:
Göran Melin CFO. Employee since 20
Page 89 and 90:
Addresses Head office Clas Ohlson A
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