Danish Coop CEO Peter Høgsted give up on making the chains work more closely together and splits the responsibility on three directors.
The explanation is completely different customer patterns in Irma and Fakta.
Irma lost a part of its independence in 2012 as it was moved into Coop’s headquarters in Albertslund. To ensure even closer cooperation between Coop’s various chains selected Peter Høgsted in January 2014 to move Irma and the other four chains under the same Executive Board member and the executive officer were also given the task of creating synergies between the chains and thereby save millions of Coop.
His goal was to stop the unhealthy internal competition.
“The chains had been driven individually, and they did not cooperate very much – or they were actually at war with each other, “says Peter Høgsted to business.dk.
But the new structure has worked less well than hoped, and now chains are split again.
“There are probably more differences in the discount chain Fakta and high-end chain Irma and the three supermarket formats (Dagli’Brugsen, SuperBrugsen and Kvickly) than I had expected,”says Peter Høgsted to business.dk.
In the future, Fakta chain will be under the executive officer Jan Madsen. Irma chain comes directly under Peter Høgsted and the trio Kvickly, SuperBrugsen and Dagli’Brugsen will be lead by Gregers Wedell-Wedellsborg.
“To me it makes more sense today that there is a tripartite division of the market instead of a split into five. So I wanted to change, now that the possibility of a change appeared, “says the CEO.
He says there is a difference between consumer behavior in Fakta’s and Irma’s counter-use formats. But there are not much difference between the three other shops – except for the size of the stores and the size of the range.
All five chain managers will stay in their positions though.