Annual Report 2012/13 - Clas Ohlson

Strategic orientation
Clas Ohlson’s vision is to develop an international retail chain characterised by high
profitability and healthy growth in shareholder value. Since market penetration in
the Nordic region is high, new markets will become increasingly significant for Clas
Ohlson’s future growth.
Clas Ohlson’s business concept is considered competitive and distinctive on a
European basis, enabling future expansion into new markets.
To strengthen the operations and our competitiveness, we focus on three
strategic development areas: growth and expansion, simplicity and efficiency, and
developing our organisation.
Business concept
Our business concept is to make it easy for people to solve
their everyday practical problems. This business concept
is based on an original saying by the founder Clas Ohlson:
“We will sell dependable products at low prices and the
right quality according to need.”
Vision and objectives
We want to develop a strong international retail chain characterised
by high profi tability and healthy growth in shareholder
value. This will be achieved by being the self-evident
choice for people’s practical problem-solving in everyday life.
Sales growth at least 10 per cent
The Group’s long-term objective is a sales growth rate of
at least 10 per cent per year. The objective is measured in
terms of the average annual growth rate over a fi ve-year
period. The growth objective will be achieved through increased
sales in existing sales channels and continued new
establishments in both existing and new markets. In the
2012/13 fi nancial year, sales rose 4 per cent. Sales growth
over the past fi ve years has averaged 7 per cent.
Operating margin at least 10 per cent
The profi tability objective is an operating margin of at least
10 per cent. In coming years, it is estimated that new market
establishments (currently in the UK and Germany) will
have a negative impact of up to 2-3 percentage points
on Clas Ohlson’s operating margin over a fi nancial year.
Growth in new markets must meet the long-term fi nancial
objectives. In the 2012/13 fi nancial year, the operating
margin was 6.6 per cent. For the most recent fi ve-year
period, the operating margin has averaged 9.0 per cent.
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Business model
An affordable and attractive range
Our product range will be adapted to, and focus on, meeting
the everyday needs of our customers. The products
must be affordable and offer the right quality according to
need. Clas Ohlson’s product range should be versatile and
contain smart, sustainable and affordable solutions.
High level of service
Our helpful and competent personnel will provide a
high level of service and guide customers to simple and
sustainable solutions. Our employees will have basic and
broad knowledge of the product range. DIY manuals,
inspiration, tips and advice will also be available on our website,
through social media and in our catalogues.
Strategic orientation 5