The closure of 46 Fona-stores and Elgiganten’s acquisition of ten means that the market shares in Denmark will look very different from this summer.
Fona’s annual sales of two billion DKK is on stake.
While Elgiganten quickly will accelerate its number of stores by 35 percent and get a firmer grip on the major cities, the expansion of Expert’s Power-chain won’t take off until next year.
”We will soon open in Aarhus, and in 2016 and 17 in all we will open six new stores in Denmark, says Powers CEO Jesper Boysen to TV 2 Business.
Expert’s big box concept Power is said to be the challenger to Elgiganten in Denmark, which today has 29 shops plus the ten new Fona stores, soon to be relabeled with Elgiganten. Power has so far four stores. Expert, the smaller sized format, has 26 stores according to Expert’s homepage with only one store in Copenhagen where the major part of Elgiganten’s new Fona-stores are located. Expert is also weak in other major cities,
The two billion DKK that the customers of Fona, until now number 2 in Denmark, spend yearly are therefore most likely to end up at other stores than Expert or Power.
Power’s revenue target is now revealed by Jesper Boysen.
”It is my expectation that we reach a billion DKK when 2016 is over, and we have no department stores with a turnover of less than 180 million,” he tells TV2.
Elgiganten Denmark has a turnover of five billion DKK, and Tv2’s industry sources estimate that one billion from Fona will soon be converted to revenue in Elgiganten.
Jesper Boysen states the competition authorities should be concerned that the industry’s number one and number two are being merged.
”It is not exactly something that increases competition in Denmark,” says Jesper Boysen to TV2.