Clas Ohlson: Good move into new German shop – Dagens Industri

Several indicators show that Clas Ohlson first German store has got a much better start than when the company ventured into England.

CEO Klas Balkow highlights both the conversion rate (how many of customers in the store to buy something) that average sales receipt (how much each customer’s order).

“We have received a significantly better start to the conversion of our German store than, for example, when we opened up our last country of England. Very many of the customers who come into the store converts. we are not up on the Nordic level yet, but it’s a good start. the average receipt is now almost at the same level as in Finland and our own brands have had a fantastic start, “says Klas Balkow to the news agency Direkt.

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Clas Ohlson first German store opened in Hamburg in mid-May. A second store opens in Hamburg next week, on 15 September. The third Hamburg store and e-commerce will be launched in the autumn.

Clas Ohlson’s total August sales beat analysts’ expectations substantially, with particularly strong growth in the Nordic region.

on the minus side was labeled segment Outside the Nordic countries (England, Germany and Dubai), where sales in local currencies fell by 14 percent.

Behind the decline is including the ongoing store closures in the UK.

“Underlying we experience a slower August is generally in England – Brexit or not remains to be seen. But what is positive is that the smaller stores we have opened in the London area is constantly increasing month by month. the smaller stores are going better and better, “says Klas Balkow.

During the first quarter, the Norwegian krone 7 percent down on the corresponding quarter in last year, according to the CEO.

“But we hedges six months before so we have secured the worse levels, which means that we have a negative hedging effect in the first quarter” says Klas Balkow.

How the total effect from the Norwegian krona in the second quarter remains to be seen, but “all else equal” leaning to negative currency effects, mean CEO.

Clas Ohlson’s gross margin fell by 1.3 percentage points to 39.1 percent in the first quarter and the bulk of the drop was due to the Norwegian krone.