Elgiganten loses sales and profit

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The first year for Peder Stedal as Elgiganten CEO in Denmark has been tough.
The growth seems to have peaked and turnover and profit decreased during 2013/2014.
Now he has to fight his former boss and colleagues who has drained his organisation.

Børsen today unveiled Elgiganten’s results for the fiscal year ending 30 April. The turnover has decreased by two percent to just above two billion DKK and the profit is down from 175 to 145 million DKK.

Tougher competition and lower average prices are a couple of explanations from the new Country Manager, Peder Stedal.
His former boss, Jesper Boysen, now leads the new main competitor Expert.

“We did not steal any customers of them as we are in the midst of a gigantic project with the conversion of our stores,” says Jesper Boysen to Børsen.

Thus, competition will intensify next year.

In particular, it will be visible in Disa where Elgiganten and the new Expert become nearest neighbors. In addition, Expert plans for 25 new, larger, stores following the Norwegian model.