– We will maintain our revenue, says Home Evening CEO Kent Olsson.
While digital services like Netflix gaining ground goes rapidly downhill for the physical video industry. The market for buying and movie rental shrank by more than 20 percent last year and is expected to decline as much this year, according to Sweden Videodistributörers Association. And lately, the unusually warm weather added insult to injury:
– I think we’ve been particularly very good summer. People have not bought candy and soda that one usually says Salim Chabo, CEO of Film chain.
Additional dozens of movie chain’s stores have been forced to shut down last year. The chain currently consists of nearly 40 stores, compared to almost 70 just three years ago.
While the competitor Hemmakväll, with over 100 stores, video death claimed victims. Since last summer, a handful of stores were closed and a number have been forced to move to better locations. And even if the services for streaming video had an impact so put Kent Olsson, like Salim Chabo, a large part of the blame on illegal downloading.
But overall, Home Evening turnover has remained largely stable over the past year . This is thanks to higher sales of candy, snacks, drinks and ice cream. The edible products account for more than half of revenues.
– Before the movie itself, our main product and the edible icing on the cake, says Kent Olsson.
In the future Hemmakväll invest in to broaden the edible range of “healthy” snacks, lyxgodis and imported products from the United States. This is expected, along with a continued focus on better store locations, not only to save the existing store portfolio:
– We will increase the number of stores, says Olsson.
Movie chain is instead focusing on a subscription service and an expanded assortment of gadgets like mobile phone accessories and electronic products.
– Think Teknikmagasinet and Cool stuff, a little bit in that direction, said Salim Chabo.
He is not quite as optimistic as Home Evening CEO, but expect at least to be able to stem the decline.
– We lose maybe five to ten stores to max. Would I be wrong, and we stay at the same number as in the day, so I will not be sad, says Chabo.
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