In Sweden, restructuring efforts are underway for ÖoB, with a central component being the turnaround of the business’s profitability. The company has adjusted its promotional offerings and reduced the proportion of low-margin consumables in favor of non-food and seasonal goods.
This strategic shift, combined with a negative calendar effect from Easter and temporary store closures, led to a decrease in customer traffic and total sales volume during the quarter. At the same time, gross margin was strengthened and the shopping basket became larger. Sales of non-food items increased by 10 percent during the quarter.
Group CEO Espen Eldal comments on the development in the Swedish operations:
In Sweden, we are implementing a multi-year plan, and the second quarter shows that the plan is on track. Non-food sales are up 10 percent and gross margin is improving, which is exactly the shift we said we would deliver as ÖoB moves towards the categories where we can win profitably.
In parallel, a modernization of the store network is ongoing. At the end of June, 28 of 92 ÖoB stores had been renovated, and the upgraded stores are performing better than other units in terms of both sales and margin. The company’s long-term goal is for ÖoB to reach sales of 5 billion Swedish krona with an operating margin (EBIT) of 5 percent by the end of 2028.
When reviewing the group’s digital business, which is reported within the Norwegian segment under the collective name "pure play", continued growth is noted. These pure e-commerce companies reported revenue of 132 million Norwegian kroner in the second quarter, an increase of 4.2 percent compared to the same period last year.
E-commerce growth was mainly driven by Lekekassen, which showed increased sales in all markets. For the yarn store Strikkemekka, sales were in line with the previous year, as a subdued market in Norway was balanced by sales growth abroad. Overall, both e-commerce groups contributed to the growth of Europris Group’s total sales and results in the first half of the year.