The strong effect of Byggmax’s new concept in Sweden is increasing expectations for sales in Norway and Finland.
In Finland, the conversion is almost done – while it’s still in the starting blocks in Norway.
“The expansion in Finland will accelerate in 2017,” says CEO Magnus Agervald to ScandinavianRetail.com
At the same time he denies any plans for a market entry in Denmark.
The report for Q1 had some goods and bads for Byggmax.
“I am pleased with the sales, but not with the costs,” says Magnus Agervald.
Despite a double-digit sales increase of twelve percent in comparable stores, operating profit was lower than the same period last year, 16.1 million SEK.
This is partly explained by increased investment in the upgrading of stores and the plans for expansion in Finland.
But the Finnish expansion remains quite still, no new stores are announced. However, Byggmax recently hired Aleksi Virkkunen as country manager who defined a need to strengthen the brand.
“We first have to get a better spin on the stores we have in Finland. We have a combination of market position and business development to work with, “says Magnus Agervald.
He says the expansion will most likely take off in 2017,
In Finland, the upgrade of the store concept is almost ready – a measure that gave very positive results in Sweden. The effect is usually seen after just one quarter.
In Norway it is only in the initial phase.
“We started with Sweden and saw that it was most suited to continue in Finland. It is a greater need for extended range there, “says Magnus Agervald, adding that all stores will be be converted next year.
Thus, the potential for increased sales is extra large in Norway in the near future.
In contrast, Magnus Agervald does not see any potential in Denmark. Speculations about an ongoing market research for Byggmax in the country he dismisses completely.
“We have no one who works for us in Denmark,” he states to ScandinavianRetail.com.
In contrast, he says Poland, UK and Germany is on the agenda.