The building materials chain opened its first department store in Norway in 2007. Today, the Norwegian operation consists of three units with 300 employees. The history in the country has been marked by financial losses, and until the end of 2024, the accumulated losses amounted to 870 million Swedish krona.
According to the company's marketing director, Johan Saxne, the closure is due to the fact that the company failed to open more department stores according to the original plan.
We have come to the conclusion that the operation in Norway does not achieve the profitability and stability required to be long-term sustainable, says Kenneth Litland, CEO of Bauhaus Sweden and Norway, to Dagens Næringsliv.
Turnaround in Sales in Sweden
In Sweden, the situation looks different. Here, the company operates 24 department stores with around 2,500 employees.
In 2023, sales decreased by 14 percent and the company reported an operating profit of -300 million Swedish krona. The following year, 2024, sales instead increased by 2.7 percent. Operating profit for the same year amounted to -151 million Swedish krona.
Despite the fact that the Swedish operation has also reported operating losses in the last two years, the markets differ in terms of geography and competition. The company sees no risk that the Swedish department stores will follow the same path as the Norwegian ones.
Our sales are better than ever in Sweden and many previous long-term investments have been completed and are starting to yield returns, says Johan Saxne to Market.