Coop to invest 300 million to strengthen Fakta-chain this year

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Coop Denmark gears up in investment for the Group’s discount chain Fakta.

This year, the Group plans for 150 store modernizations, conversions and closures for a total cost of 300 million DKK.

During the past year, 80 stores have been modernized for the new so-called F-16 concept. Coop says the results have been so good that the pace now set up, and this year there are plans for a further total of 150 modernizations.

In addition there will be a group of shops that will either switch to other Coops chains or close. Approximately 20 stores will be closed.

“We have great improvements in the basic operation of the chain, but the closure of unprofitable stores and investments in modernization, leads to that both 2015 and 2016 will have substantial deficits. With this plan we create a foundation to again achieve satisfactory results on Fakta’s bottom line,” says CEO Jan Madsen, Coop.

Investment in modernization and the costs of store closures, in 2016, will be in the order of 300 million kr – which means that the chain will also have deficits in 2016.

“This past year we have made great progress in our measurement of customer satisfaction, reported significant improvements in our financial operations and created a concept that has proven its sustainability. That is why we invest so heavily in strengthening the chain, “says Jan Madsen.