Annual Report 2012/13 - Clas Ohlson

Three sizes
Clas Ohlson has customers of all ages. To increase availability,
we offer three different store concepts with the following
surface areas: 1,500–3,000 square metres for large cities
and catchment areas, 1,000–1,500 square metres for
medium-sized locations and 700–1,000 square metres
for smaller locations or as a complement to existing stores
in large cities. In our smaller stores, the product range
is concentrated to the most popular products. Other products
can be ordered and picked up from the store within
48 hours. This concept has now been introduced in several
cities throughout Sweden and Norway.
Store concept
Our store concept has been designed to help customers
find their way around our stores. The concept includes new
store fittings, signs, customer terminals, service counters
for information and placing orders, and points of sale.
The current store concept was launched in 2008/09 and
all stores since opened are designed according to the new
concept. Older stores are gradually being adapted as they
are renovated or updated.
Increase in sales
Comparable stores in local currency
New stores
Exchange-rate effects
Total
– 4 per cent
+ 9 per cent
– 1 per cent
+ 4 per cent
Trolley case. Impact-resistant polycarbonate. TSA combination
lock and four swivel ball-bearing wheels.
34-9208-1 38x24x51 cm, 20", 2,7 kg.
Financial commitment
A new store entails an initial financial commitment of SEK
10-13 M, comprising SEK 2-3 M for start-up costs, SEK 4-5
M for investments in store fittings and computer systems
and SEK 4-5 M for inventories. In some cases, investments
in leased premises may also be required, for which Clas
Ohlson is compensated by nonrecurring income and/or
lease deductions.
In the UK, the start-up costs for our stores are initially higher
and amount to about SEK 5-6 M, mainly as a result of
higher marketing costs. New stores in Sweden and Norway
are already profitable within the first twelve months of operation.
The same applies to some of the stores in Finland. Achieving
profitability generally takes longer in countries where
Clas Ohlson is newly established and the brand is new.
Continued store expansion
Clas Ohlson is continuing to open new stores in markets
where we are already established. A total of 17 new stores
were opened in the 2012/13 financial year and we plan to
establish 12-17 stores during the 2013/14 financial year.
The proportion of new stores in mature markets is declining
in pace with the trend to invest in new and growing sales
channels (e-commerce). In the UK, Clas Ohlson sees a
potential for favourable long-term growth, but is balancing
the expansion rate against current market conditions.
Preparations to enter the German market are currently
under way, with plans to launch an initial one to two stores
in northern Germany and an e-commerce platform by the
2014 calendar year.
Mail order/Internet sales, SEK M
Proportion e-commerce/total
mail order and Internet sales %
Proportion Mail order and Internet
sales/Stores, %
160
120
80
100
94 89
95
122
100
80
60
71 74 73
75
85
Mail order and
Internet sales, 2% Stores, 98 %
40
40
20
0
08/09 09/10 10/11 11/12 12/13
0
08/09 09/10 10/11 11/12 12/13
Operations 17