Government proposal may lower Gekås



[ad_1]

In order to limit congestion in public transport and to reach a maximum number of customers in stores, the government is designing a special law against pandemics. This was reported by DN on Monday.

– We need to find a way to quickly produce legislation where we can take action that we cannot take today with the Infection Control Act and the Public Order Act. Many comparisons have been made with shopping malls, bathing areas, public transport where current legislation does not apply, Social Affairs Minister Lena Hallengren told the newspaper.

Social Affairs Minister Lena Hallengren wants to quickly produce new legislation.Photo: PONTUS LUNDAHL NEWS AGENCY / TT / TT

Has introduced restrictions

Not infrequently Gekås Ullared has been singled out as an example in the debate, when outraged representatives of the sports movement and the cultural sector have expressed their discontent with the restrictions of 50 people per event they are forced to interact with.

However, this is a criticism that Boris Lennerhov, CEO of the megastore, finds it difficult to accept.

– As far as I know, most of the people who comment on the situation in Ullared have never been here. On our own initiative, we have introduced heavy restrictions. We have the capacity and the permission to have 8,000 people in the store at the same time, but we have chosen not to let more than 3,500 in at a time. We have had many inspections and we handle them excellently at all times, says Lennerhov.

Gekås Ullared. The photograph was taken before the corona pandemic occurred.Photo: HANNA BRUNLÖF WINDELL

Loss in the billion class

More restrictions would have important consequences for the profitability of the company, he continues:

– In 2020, we expect a loss of 1.3 billion. If we lose a little more, we won’t turn around.

The total profit after 10-year net financial items for Gekås is around SEK 3.4 billion.

If you study Gekås AB’s annual report for 2019, the group had sales of just over SEK 4.6 billion and a 6.25 percent profit margin. This means a profit of 6 crowns and 25 crowns for every one hundred crowns traded. With a reduction in sales of 1.3 billion SEK, Gekås would realize, with the same profit margin as in 2019, a profit after net financial items of just over 209 million SEK.

At the same time, Boris Lennerhov says he understands the government’s plans to try and address the main differences:

– I understand the intention and the thought. It is not that difficult to understand that it becomes strange when you are not allowed to be more than 50 people in Liseberg, but any number in a shopping center. But how to solve it is difficult to understand. You have to build it on the basis of the size of the area of ​​square meters and not look blindly at a certain number of people, says Lennerhov.

READ MORE: How Gekås is affected: by the coronavirus
READ MORE: Gekås CEO fights back after congestion criticism
[ad_2]