Siba to be converted to Netonnet

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Waiting for the announced IPO – now comes a final merger of the electronics chains SIBA and NetOnNet – as the older brand SIBA will be closed down and the stores converted to the Netonnet’s warehouse concept with predominantly selfservice.

“We gather the resources and long experience SIBA and NetOnNet built up and creates a clear direction forward. The focus now is to develop and expand NetOnNet’s successful brand and self-concept. With an advanced e-commerce and a greatly increased number Outlet Shops, we make it even easier for more people to buy consumer electronics at low cost directly from store shelves, “says Susanne Ehnbåge, CEO Netonnet Group.

Siba, founded in 1951, has for years been on the retreat in the Swedish consumer electronics industry and closed several stores. A new store opened, however, in Örebro a year ago and as recently as February they announced a new opening in Östersund. It will now open as Netonnet.

NetOnNet was founded in 1999 as an online pure player. 2001 it was supplemented with physical stores, called warehouse shops with the same prices as on the web. 2011, the minority owner Siba family put a bid for the company through the holding company Waldir and bought out the founders. 2015 went SIBA and NetOnNet together in a single group, which is scheduled to be listed as Netonnet Group during 2016.

“Netonnet Group’s new management has done a successful job of weaving together and streamline the operations of SIBA and NetOnNet. The goal is to build a stronger and larger company with long-term profitable growth and expansion. This is an important next step in that effort, ” said Roland Vejdemo, Chairman Netonnet Group.

The Group has a total of 53 stores in the Nordic countries, of which 38 are regular stores. Today begins the transformation of four SIBA stores; Växjö, Västerås, Sundsvall and Svågertorp/Malmö. At the same time begins a review of conditions in other locations, with the goal to have a concrete plan for conversions and new store locations later in the year.

NetOnNet will also open three new Outlet Shops (Östersund, Uddevalla and Stavanger) in parallel with efforts to transform SIBA stores to NetOnNet Outlet Shops.

The work is done gradually and is expected to be completed by the end of 2017. Any changes for the Computer City in Denmark is not advertised

“The retail sector is going through a digital conversion and customers require seamless integration between e-commerce and retail trade. This initiative strengthens Netonnet Group’s position as the market leading e-retailers with omnikanalskoncept in Sweden. We are proud of the knowledge and experience we have built up in the SIBA over 65 years, which now form the basis for Susanne Ehnbåge and her colleagues work to take the NetOnNet brand and concept further,” says Fabian Bengtsson, owner Netonnet Group.

Netonnet Group sales increased in 2015 to 6.37 billion SEK, a growth of 2 percent compared with 2014. Operating profit amounted to 68.2 million and the operating margin was 1.1 percent.

“We deliver a positive result despite the strong dollar and the weak Norwegian krone. During the year, we also initiated a comprehensive development and efficiency of work of the Group. This has resulted in some initial impact during the year and a slightly increased level of investment, “says Susanne Ehnbåge, CEO Netonnet Group.

“Investments include a new central warehouse, new offices, IT investment and a new e-commerce platform for NetOnNet. These investments lay the foundation for even greater focus on customer satisfaction and growth, but also creates opportunities for synergies and more efficient cost base, “concludes Susanne.

Netonnet Groups resultatutveckling 2013-2015

MSEK 2015 2014 2013(pro forma)
Net turnover 6 370,3 6 247,3 5 732,3
Operations result (EBIT) 68,2 135,9 82,8
Operations margin 1,1% 2,2% 1,4%