Two billion European values ​​are obscured. Now Swedish brutality will embellish the result – DN.no

Maybe it's a floating unicorn that will allow Europris to surf again. The sign of the floating bath has become the big summer success of the year. European manager Pål Wibe has no doubt about how to disconnect from the store this summer

– It's this super unicorn that I will be spending the next two weeks, "said Wibe during the presentation of the performance.

Disappointing results that the share of Europris has fallen by more than 30% since October. The stock market value fell from six to four billion. Folketrygdfondet and several other funds are the biggest owners and have taken the biggest paper loss.

Following the results, the stock fell to 9%.

So far this year, the comparable store for stores is only 0.6%, while total growth, including new stores, is 4.4 percent. Wibe points out that the chain continues to gain market share

– We have weak growth in the quarter but we are pleased with the development of margins and cost control, says Pål Wibe, adding that Easter time is affecting negatively the numbers. by second quarter (in MNOK) 2018 2017 Edit Income 1427 1406 1.5% Operational Result (Ebit) 176 184 -4.3% Profit before tax 177 170 4.1%

Swedish Union

The European Commissioner now hopes to obtain additional equipment by the acquisition of the Swedish chain ÖoB, owned by Runsvengruppen. In the first round, Europris bought 20% of the shares, but has the opportunity to secure the entire chain already well established in the border trade.

The purchase price is based on the current financial results and the Swedes are trading in equities. Wibe believes in a Nordic consolidation, which also includes cooperation in purchasing with Tokmanni, which is Finland's response to Europris.

– In the long term, the combination of the two strong chains ÖoB and Europris will be very important strategically.

Following the acquisition in June, Ole Martin Westgaard, DNB Market's distribution expert, stated that there was potential for synergy in the new Swedish-Norwegian crater,

ÖoB marketed for 3.6 billion Norwegian kroner last year with its 94 stores, while Europolis with a sales volume of 256 sold for 5.9 billion.

– This grouping will have a total of sales to customers of 17 billion a year. I think it's important to have a bigger scale and better access to goods like own brands, "says Wibe

Concurrent Competition

In a few years, Europris has won several new competitors like Rusta, Jula, TGR and now Danish Normal in the industry called wide range of products. Several of them have embarked on a very ambitious establishment with dozens of new stores per year.

– It is not negative for us to have a Rusta store side by side. While grocery stores are fighting each other, there is a wider range of smoking products. The new normal channel is more focused on women under 40, while we have the most customers over 40 years. We are also often in completely different places. Thus, we become more complementary than competitors even though we obviously notice something for all newcomers.

One of the questions raised is whether new stores are profitable enough, what the European boss says they are.

six new stores so far this year, and the new stores are exceeding expectations. It does not get worse and worse with the marginal stores.

He stressed that new institutions must meet four fixed criteria such as profitability after one year and must generate a high return on investment.

– How long can you continue to grow?

– We still think that there is potential for 320 stores versus 256 today. We do revisions of the strategy all the time. Sometimes resettlement in the same area is the most profitable. When we entered the market several years ago, we were offered C – rentals, whereas today we are much more attractive to the owners.

Shampoo and detergent price war

One of the areas where Europris has been successful In recent years, there are personal hygiene and laundry items. Here, low prices have triggered a price war that also affects Europris.

– There was a negative sales trend in this category with falling prices. Figures from the Nielsen analysis agency show that sales of laundry products and household items have fallen by more than five percent, while the health and beauty category has fallen by nearly four percent

.

– We reduce the share of the campaign to increase the gross margin

Now he looks forward to the sale of unicorns and other summer goods.

– The season has taken with an early start. When it starts to get too hot, people can only go somewhere for seasonal items, and that is Europris who returns Wibe. (Terms)