Elgiganten targets small town coverage

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Sweden might be the best example of how Elgiganten’s establishing strategy looks like in the Nordics.

After upgrading to megastores on key-locations and converting the Phone House chain to a new mini concept, the new target is a better coverage in smaller cities.

For the next years, 10 new mid-sized stores are planned, starting in Ängelholm.

In autumn 2016 the electronics chain opens a new store in Ängelholm and trade area Brännborn Center.
”We see a great potential in Ängelholm. Brännborn Center offers a good mix of categories and strong players, providing a steady flow of customers. We can offer customers a complete offering with both consumer electronics, appliances and kitchen which we hope will benefit the customer experience of the entire trade area further,” says Niclas Eriksson, CEO of Elgiganten.

The electronics department store will have a total area of more than 1,400 square meters and offer a normal range of consumer electronics, white goods, Epoq-kitchen, and Elgiganten new service and service concepts knowhow.
The franchise expansion that’s covered these locations in the past years has not been significant lately. But for Market magazine Niclas Eriksson also says the Ängelholm shop is an unusual happening – but that it will be followed by more soon.

“The next 2-3 years, we expect to open an additional total of ten stores of about 1,500 square meters in places where we are not yet in place,” he told Market.

Two similar establishments are in the pipeline this year – in addition, two regular stores are upgraded to the megastore concept and three Megastore department stores will be further sharpened.

The investments will be made mainly in the B2B and kitchen departments.
“Epoq kitchen and B2B transaction is our strongest growing areas and it is of course something we consider when establishing new stores. On the kitchen side is about to fold showroom space  in the department stores while we are focusing on personal service and designated contact persons for our business, “says Niclas Eriksson.

At the same time, e-commerce today is 20 percent of stotal ales. With the conversion of Phone House chain to a Elgiganten in miniature, before the opening in Ängelholm, there are now 175 different stores and distribution points for Click and Collect.