As Denmark is speaking about a polarisation in the grocery industry, Supermarket chain Superbrugsen makes a statement.
More customers, higher sales and improved earnings makes SuperBrugsen report a record growth after the first 8 months.
“The success is because we are doing the opposite of experts and competitors”, says chain director Kenneth Pedersen.
Coop-owned Superbrugsen consists of 230 supermarkets with a total annual turnover of approximately 15 billion DKK.
Kenneth Pedersen, SuperBrugsen has had the job since 1 June.
“We are dedicated to be a classic, local supermarket. Our competitive situation haschanged fundamentally over the past 10 years. Where we at most places previously had at least one grocery store owned supermarket as a competitor, we now see typically 3-4 discount stores, but no other supermarkets. Therefore, we are redoubling our efforts on what is special about us: More choice (at least twice as much food as in a discount store), operating butcher departments with qualified employees and not the least, localization of freedom for our dispensers, local products and support of local associations. We can see that customers appreciate it”,says Kenneth Pedersen.
Turnover increased by 300 million DKK to 9.7 billion DKK Incl. VAT and earnings improved by 25 percent compared to last year when the chain got into a really positive development.
SuperBrugsen is also experience breakup in the grocery industry in a different way.
“We have recently received a handful of inquiries from merchants who are interested in selling their shops, whom we’re looking at at the moment. At the same time, we also have projects with brand new SuperBrugsen. So, contrary to what we expected two years ago, the chain grows, “says Kenneth Pedersen.
Over the past two years, 109 stores were modernized and converted to the so-called Concept 15. In 2015, the chain will open new stores and continue the program of modernization of another 75 stores to create a supermarket that is manageable and enjoyable to visit.
An announcement Monday says SuperBrugsen is central in Coop’s plan to strengthen Danish food culture and boost quality.
“In reality, we are in many locations the only alternative to discount. We will take responsibility for ensuring that the high quality is popular, making it accessible to as many people as possible, whether it’s delicacies from our own butcher departments, ecology, specialties or local products”, says Kenneth Pedersen.