Wednesday , July 28 2021

Sweden's Rusta is facing a difficult market, with billions in Norway



For the fourth consecutive year, the Norwegian department of the Swedish retail chain Rust significantly increased turnover. During the period of bankruptcy and sales decline, Rusta Retail increased and increased.

According to the annual result for 2017-2018, the company had a turnover of NOK 776.3 million. This is an increase of 207.5 million and more than 35 percent from the period 2016-2017.

The operating profit amounted to NOK 28.1 million, which is 20.3 million of the previous deviation budget years.

When DN talked with Kramer in August, he hoped to achieve a turnover of more than a billion dollars in the near future.

"I have confirmed that we are on the way to a billion sales for the 2018-2019 period, and in the first half we reached a 31.7% growth. Therefore, I believe that in the current financial year we achieve more than a billion turnover," says Erlend Kramer.

Solid market

The number of bankruptcies in the commodity trade started this fall. Over the past year, hundreds of stores have been declared bankrupt.

Chains such as Moods of Norway, Rafens, PM and Simpler Life are in bankruptcy; several companies in the trading industry are struggling with difficult competition and small margins.

According to Kvarud Analyze, sales for the 60 largest shopping centers in Norway fell in half of the first three quarters of this year. Total revenue for the centers increased by one percent during the period, but it was lower than in the same period last year.

For Swedish companies, the numbers look easier. Swedish players, such as Biltema, Jula, Clas Ohlson and, of course, Rusta, have been well-managed in recent years. Kramer thinks this is a concept, and not a nationality that is crucial.

"I do not know if there is anything about citizenship, but it is clear that we went to Norway with a large device on the back with years of experience, which we certainly benefited. Finally, we received a permanent and good confirmation that the Rust concept works in Norway.

Creates 50 to 60 warehouses in Norway

– Now we have 26 department stores, the eighth we achieve 27, and in two weeks we reach 28, laughing Kramer.

"We are focused on the goal of 50 to 60 warehouses. We now open warehouses in Jærhagen and Tromsø. The following year we will open the Eidsvoll, Mosjøen and Elverum supermarkets.

Kramer believes that the challenges that the company now faces is the rental of premises. The warehouses need at least 2000 square meters, if possible they must have good neighbors and a lot of space for parking spaces.

"I know that we have great potential and will continue to expand.(Conditions)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our affairs using a link that leads directly to our site. Copying or any other form of use of all or part of the content is permitted only by written permission or by law. For further conditions, see here.

Olav Thon is online shopping and has tips for small cities in Norway that are losing their trade

The real estate investor opened Thursday shopping center in Ålesund.

01:15 Min

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