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– They are low interest rates. Unemployment is low. House prices are rising and the stock market is strong. There’s money in the wallet, so it’s just a question of whether consumers can consume, says CFO Pär Christiansen, who will take over as interim CEO later this week when Lotta Lyrå leaves office.
He estimates that the pattern of consumption will continue as of November, with consumption somewhat more stained than in previous years.
– It benefits us, he says.
The positive outlook for Christmas trading comes at the same time that Clas Ohlson reports a pre-tax profit of SEK 131.8 million for the period from August 1 to October 31, the second quarter of the interrupted financial year. of the company.
During the corresponding period of the previous year, Clas Ohlson made a profit of SEK 116 million.
According to Christiansen, the result confirms a trend in which Clas Ohlson continuously improves its operating profit quarter by quarter.
– On the negative side, we have had the effects of the pandemic and also the Norwegian krone, which affects the result when we translate the gains in Norway into Swedish crowns, he says.
– Norway is a big market for us, so a 10 percent lower currency will have a real impact.
The pandemic drives development
Clas Ohlson, with stores and online sales in Sweden, Norway and Finland and sales through Amazon in Germany and the United Kingdom, in the COVID-19 pandemic has gone to great lengths to create secure commerce in stores, both for customers as well as employees. At the same time, the online offer has been developed, among other things, with collection of orders in stores, parcels and home deliveries through other retail chains such as Mathem.se.
The pandemic has also increased the importance of a successful online business, and in November, online sales rose to around 11 percent of total sales.
– We are making great strides. The pandemic is driving that development. We have set ourselves a goal of doubling online sales every two years. We are a little above that trend and we are satisfied with it, says Christiansen.
– What we see is that online and the store interact and support each other. And together they contribute. We still believe that, he adds.
When it comes to stores going forward, it’s not about one or the other, but where they should be located and where the customer flows are, according to the CFO.
Has hardly been noticed by Amazon
Clas Ohlson barely noticed the establishment of the large American online store Amazon in Sweden during the quarter.
– Of course, we have monitored Amazon and we have had competition in our strategy. But the launch itself and what has happened since then hasn’t had any major impact on us, says Christiansen.
– We’ll see what Amazon chooses to do to increase its long-term engagement. But with the categories Amazon has entered, such as multimedia and beauty products, other players have likely been hit harder than Clas Ohlson, he adds.
Joakim Goksör / TT
Clas Ohlson, which has lost nearly a quarter of its market capitalization since the turn of the year, reports a pre-tax profit of SEK 131.8 million for the period from August 1 to October 31, the second quarter of the company’s interrupted financial year.
During the corresponding period of the previous year, Clas Ohlson made a profit of SEK 116 million.
The company’s sales fell to SEK 2,036 million during the quarter, representing a decrease of 6 percent compared to the corresponding period in 2019. Organically, sales fell 1 percent during the quarter.
The decline continued in November, when sales fell 4 percent to SEK 960 million. But organically, sales increased in November by 2 percent.
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