Polarn O. Pyret has today taken the decision to close the smaller and unprofitable operations in the Netherlands and China and to expand the number of stores in Finland and Norway.
“The net number of stores will increase over the next 15 months, ” says Magnus Håkansson, President and CEO of RNB.
In connection with the interim report for the second quarter of 2015/16 it was announced that a review of Polarn O. Pyret’s operations are carried out and a number of conclusions from this review.
One of these conclusions is to focus on the major markets.
As part of this Polarn O. Pyret has now taken the decision to close operations in the Netherlands and China and to expand the store network in Finland and Norway.
“The prerequisites for profitable growth in Finland and Norway has been made possible through the acquisition of franchisers in each country. This is an exciting time for Polarn O. Pyret, as we build an even stronger company for the future, “says Magnus Håkansson.
The closure does not affect the production office in Hong Kong, which will continue operating in its present form. Even the Dutch e-commerce business will remain after the closure of the three physical stores in Holland.
”The measures have a clear purpose – to increase the profitability of Polarn O. Pyret and create better conditions for profitable growth. The markets that we are now completely dismantle has so far only resulted in negative profitability while the larger markets, where we have achieved a certain presence and sales, have historically exhibited an approved profitability. I am convinced that profitability has the potential to increase at a higher rate after these measures are implemented, “says Magnus Håkansson.
The process of winding up operations in the affected markets will begin immediately and is expected to be completed by June 2017.