Verkkokauppa.com: Department stores’ customers will come to us now

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Verkkokauppa.com reports a strong first quarter, revenue grew 20% at a stagnant retail market.

And CEO Samuli Seppälä sees new growth opportunities as Finnish department stores reduces their focus on consumer electronics.

CEO Samuli Seppälä estimates that, the company has captured market shares in most of its categories, including the recently launched Baby and Family, and Sports and Nutrition categories. Web visit share of Finnish online retailers has increased based on Similarweb’s statistics. TNS Gallup estimates that the Finnish online retail business grew by 7% last year to some 3.6 billion euros, while the overall retail market declined by one percent in the same period.

”Combined with a growth-oriented concept, transparent and customer centric business model as well as rapid changes in the Finnish retail landscape, revenue grew by 20.3%. Gross profit grew less. Gross margin was 16.1%, mainly due to aggressive pricing, strong growth strategy and changes in the sales mix,” comments Samuli Seppälä.

Verkkokauppa.com’s main ongoing projects include the development of consumer financing services, logistics and a C2C-marketplace.

”More and more customers are using financing services, which have resulted in more commissions paid to the company. First program versions of both the C2C marketplace and financing services are already in internal testing.”

Samuel Seppälä also sees additional growth opportunities not just in new categories but also in consumer electronics products as Finnish department stores are reducing their focus on consumer electronics and certain other categories.