Matas Group reported a turnover of 2.2 billion Danish kroner for the first quarter of the year, representing a 4.2 percent increase. At the same time, operating profit fell by 37 percent, landing at 86 million Danish kroner. The decline in profitability is due to several commercial decisions and inventory management during the period.
It is primarily driven by our investments in price, promotions and marketing, as well as write-downs of inventory, and partly this is phasing, says Carola Lundell to Ehandel.se.
Layoffs Await at Headquarters
The purpose of the reorganization now being implemented is to create a more market-driven structure and leverage Nordic economies of scale. The new model means that country managers take over responsibility for local operations.
However, the consolidation of expertise within the group means that staffing levels at the central level need to be reviewed.
As part of creating a more efficient and competitive organization, we are reducing the workforce by approximately 7 percent at Matas and Kicks headquarters, which corresponds to about 30 people at Kicks, says Carola Lundell.
She is careful to point out that the cuts are limited to the administrative parts of the company. Customer interaction and logistics are not affected by the decision.
Employees in stores and at our warehouses are not affected by any layoffs, she says.
Local Adaptation of E-commerce
As Kicks transitions from having its own CEO to being managed by country managers in Sweden and Finland, questions are also raised about how the digital business will be handled going forward.
E-commerce has been a key focus area for the company. Although the CEO position is disappearing, the digital presence will continue to develop, but with a more regional focus.
We will continue to invest in a strong e-commerce business based on our group strategy, which we will increasingly adapt to local market conditions going forward, says Carola Lundell.
Online sales will remain a priority area for the entire Matas Group. The work ahead is based on combining the group's collective reach with a feel for what customers are demanding in each country.
E-commerce is a central part of our strategy and growth, and we will continue to broaden our offering and drive innovation and development across Matas Group, she says.
The departing CEO concludes by highlighting the balance between the group's collective strength and the local work.
In parallel, we will work closely with each market to capitalize on local growth opportunities.