Aggressive start of Danish electronics war

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Danish electronics war has started as Expert opened it’s Power-concept on Monday.

Larger stores and an organization much picked from main competitor Elgiganten is set to challenge with low prices and top modern store design.

But will Expert learn from the Swedish lesson? And will the smaller stores survive?

power_jesper_boysen_high_02It was hard not to notice that Expert opened its first store with the Danish Power-concept on Monday. A massive campaign followed by massive queues at the store
“I have opened many stores in my life, but I have not yet tried to provide deals that are as aggressive as we open with now ,” says CEO Jesper Boysen, who for more than two years has been to turn the Nordic Expert Group’s plans into reality.

The new store opened at Roskildevej in Glostrup, near Copenhagen, next to it’s main competitor Elgiganten,
The new premises in Glostrup is the first out of a total of five establishments, which is scheduled for opening during the year. Upcoming locations are in Herlev,Odense, Copenhagen and Frederiksberg. A total of 25 stores are announced.

Danish CEO Jesper Boysen tells Computerworld and DR the stores are designed for the customers and not for Expert itself.

”It must be super cool to shop in Power, and on top of that, we have a store design and a decor that is more delicious and more exclusive than in any of our competitors. Some of our suppliers have even been kind enough to say that we have built a high-street store, which we have just moved into a warehouse, ” says Jesper Boysen.

Still, the price level stands out and a price war similar to Sweden is expected where Elgiganten has come out as a winner towards chains as Media Markt, Expert and Onoff where the first one has suffered billion losses and the two other ones went bankrupt. Expert gave up after opening bigger stores.
Now several former Elgiganten employees have been recruited for different positions in Expert, both in Norway and Denmark – and a central Expert warehouse is built in Sweden despite there is no store network. It’s a copycat of Elgiganten and the Elkjøp-group who’s strongest card has been the logistics.

“Our goal is not to beat Elgiganten, but we will of course challenge them. But we will also challenge all the other competitors, such as Fona, Skousen, Computercity, Bilka and so on. We will challenge all,” says Jesper Boysen.

Euronics have decided to accelerate by opening 25 more stores.

Therefore retail experts believe many concepts will be squeezed, such as the old Expert stores.
”We have already closed a number of stores, because we know that Expert will make it difficult when there is a huge electronics center close. But those in the local community, with local professionals, are the the ones I think have enough to succeed. But it’s hard to say what will happen over time,” Boysen says.

In Finland, many small Expert-dealers left the chain-brand a year ago after dissatisfaction about new terms and some of the larger franchise concepts who stayed has closed down.

A good comparison of how far the chains in Denmark are willing to go will be at BIG in Herlev this fall as both Expert and Elgiganten open new megastores.

The only clear winner are the consumers.