Soon-to-open Superdry, Durham (16 Nov 2011)

Superdry – the SuperGroup-owned fashion chain of the moment – is gearing up to open its new store in Durham’s Silver Street at 9am this coming Friday (18 November), though the shop was still under wraps when I went past this morning.

By opening in the midst of the Durham Lumiere festival – which runs from 17-20 November, and attracts large crowds to the city – Superdry should be well placed for a successful launch.

Until recently, the unit at  30-31 Silver Street was occupied by Burton and Dorothy Perkins. However, in keeping with Sir Philip Green’s property consolidation strategy for Arcadia Group, both brand’s ranges now feature instead in the city’s nearby BHS store, the anchor tenant for the Prince Bishops shopping centre.

Soon-to-open Superdry, Durham (16 Nov 2011)

While Arcadia shrinks its estate, Superdry is rapidly expanding it – and since the first Superdry store opened in 2004, the chain’s growth has been spectacular. Durham will be the 57th standalone Superdry store in the UK – and only its third in the North East, after Newcastle and Metrocentre – alongside 21 shops under the Cult brand and more than 40 concessions in House of Fraser, Harrods and Selfridges department stores.

Cult store in Oxford (11 Nov 2011)

The Superdry estate has also grown rapidly overseas, and currently comprises more than 100 stores across Venezuela, the USA, Taiwan, Spain, South Korea, Panama, the Netherlands, Luxembourg, Italy, Indonesia, Germany, France, Finland, Denmark, Belgium, Austria and Australia. The Superdry website has also become a major sales channel, buoyed by its free delivery offer within the UK, Europe and North America.

Not surprisingly, this expansion has fuelled rapid growth both in group sales – up 42% in the three months to 30 October, following the 66% increase recorded in the previous quarter – and in profit (£47.3m pre-tax profit in the year to 1 May 2011). However, an absence of like-for-like comparisons makes it difficult to discern how sales are holding up in established stores, and the extent of any cannibalisation by newly opened shops.

Commentators’ questioning of how long SuperGroup can sustain such growth – alongside recent distribution difficulties (now apparently resolved) and a sense that the Superdry brand may be becoming overexposed – makes it one of the most fascinating retailers to follow right now, and is reflected in the business’s fluctuating share price. In March 2010, SuperGroup successfully floated on the London Stock Exchange, with the company’s share price subsequently rocketing from its initial £5 to a peak of more than £18 in February this year. However, the share price has since fallen back to just over £6.

Nevertheless, for all those question marks, Superdry’s development of good-looking stores on the high street in the midst of an economic downturn is both impressive and welcome. Presumably due to its student-heavy population, Durham has done well to secure a standalone Superdry store ahead of the larger North East retail centres of Sunderland, Middlesbrough and Darlington, and the chances are that it will be a success. However, time will tell how much further Superdry can grow – in our region, the UK, and overseas – before it starts to see increasingly diminishing returns.

Tesco in Eger, Hungary (15 Jul 2006)

Today’s release of fairly weak UK trading figures from Tesco – where like-for-like sales, excluding petrol and VAT, fell by 0.5% in the first half of the year – has unsurprisingly prompted much media discussion, both about Tesco specifically and the state of the UK economy more generally.

Tesco’s coverage hasn’t been helped by rival grocer Sainsbury’s revealing that its own like-for-like sales, excluding petrol but not VAT, rose by 1.9% in the first six months of the financial year (a measure for which the equivalent at Tesco was a 0.5% rise).

As new Tesco boss Philip Clarke noted, there’s no doubt that retailers across the spectrum are having to eke every penny of spend out of cautious shoppers at the moment, with further gloomy figures on household consumption released today. The big question, however, is why the UK performance of Tesco – a retailer that has long been the behemoth of the British supermarket sector – is seemingly lagging behind that of major rivals such as Sainsbury’s.

Tesco Express, Lyme Regis (4 Sep 2011)

Before trying to answer that question, it’s worth reminding ourselves that Tesco as a whole remains a phenomenally successful business. Today’s figures showed that the company made a profit of £1.9bn in the first half of the year, on group sales of £35.5bn – a performance that most retailers can only dream of. Tesco’s store estate comprises more than 5,300 shops – half of those overseas – and it is now the third biggest retailer in the world, with a strong presence in Ireland, eastern Europe, Asia and the US. And for all that its UK performance is below par, Tesco’s market share remains more than that of Asda and Morrisons combined – thanks in no small part to the efforts of its 200,000 UK staff. As a homegrown international success story, Tesco has given the UK much to be proud of.

Tesco in Košice, Slovakia (2 Sep 2008)

However, it’s the business’s very immensity that also contributes to some of its present challenges. The perception that Tesco is simply too big – and too powerful – is widely held, not least here in the North East where it owns much of Gateshead town centre and holds the key to the centre’s long-awaited regeneration. There are clearly some shoppers who refuse to shop at Tesco for that reason.

In the UK, a significant chunk of Tesco’s growth in recent years has been built on expansion in non-food. This served the business well in the good times, but has arguably left it more exposed than its rivals now that discretionary spend is under pressure. There is also, I would suggest, some sense that Tesco’s expansion into new categories – whether that’s non-food, banking or used cars – has allowed others, such as Waitrose and the hard discounters, to up their game and become the innovators in the core grocery business.

Tesco-owned One Stop, Crewkerne (10 Sep 2011)

I touched upon some of Tesco’s challenges in grocery when I recently blogged about the Asda Price Guarantee, and Tesco, like Asda, is having to fend off rivals at both the premium and value ends of the market. For all its investment in price – including the eyecatching Price Drop campaign announced last month – my reckoning is that Tesco still faces an uphill struggle to be perceived as cheaper than Aldi, Lidl or even Asda. The proliferation of higher-priced Tesco Express stores – and the growth of the supposedly even dearer One Stop ‘stealth fascia’ – surely don’t help this perception. In contrast, Asda’s clear message about charging the same prices in its smaller stores as in the larger ones helps to cement its own value credentials.

What about quality? Here too, Tesco arguably has work to do. Just among my own circles of friends, I often hear perceptions of Morrisons being better than Tesco in fresh produce; Sainsbury’s as being a more ‘upmarket’ shop in general; and Waitrose – still a relatively recent entrant to ‘the North’ – as excelling in speciality products and treats. In contrast, Tesco’s dalliance with being ‘Britain’s biggest discounter’ and its recent launch of ‘venture brands’ – its own in-house products, but without a Tesco branding – overlaid with the familiar Value, mid-tier and Finest ranges, arguably create a confused picture of what Tesco stands for.

One of Tesco's discount brands

The one area where Tesco beats all its rivals is its long-established loyalty scheme, Tesco Clubcard. Reportedly boasting 15 million active cardholders, Clubcard provides the retailer with an unrivalled snapshot of UK consumers’ shopping habits, as well as a means of communicating targeted news and offers to its customers. Given the importance of Clubcard, the decision last week to scrap the Double Points promotion – and invest the money saved in immediate Price Drop reductions – is a bold if risky one. Tesco’s reckoning, perhaps, is that investing in loyalty is only worthwhile if shoppers are actually loyal – and don’t go off to Aldi, Lidl, Morrisons or Waitrose instead.

Back in the days when Prunella Scales’ Dotty was the face of Tesco’s TV advertising, there was a warmth and clarity about the Tesco brand – and even an affection for it – that has got rather lost in the intervening years. Today, Tesco’s rather cold and soulless stores seem like a metaphor for the brand.

Whether the recently announced initiatives will clarify what Tesco stands for – and win back those customers who have started to establish new shopping habits elsewhere – remains to be seen. However, given Tesco’s deep pockets, immense experience as a retailer, and past record of success, only a brave observer would write off its present efforts to bring the UK business back on track.

Clas Ohlson, Newcastle (6 Jun 2011)

Clas Ohlson, the Swedish hardware retailer, has confirmed that its new Newcastle store in Northumberland Street will open on Wednesday 24 August.

Recently erected hoardings around the 20,333 sq ft unit – formerly occupied by Collectables – reveal the opening date, and provide Newcastle shoppers with some background about Clas Ohlson’s 93-year history of “solving everyday practical problems.”

The site as Collectables (14 Mar 2011)

The store’s key product ranges – including home, multimedia, electrical, leisure and hardware – are also highlighted, giving passing shoppers a taste of what they can expect when the new store opens its doors.

Clas Ohlson, Newcastle (6 Jun 2011)

The shop’s fitout work is being carried out by the Midlands-based property services company DRC, whose head office is, coincidentally, located close to my old hometown of Tamworth. I had the pleasure of chatting to DRC’s Louise Bolton yesterday, who explained that the company has worked with Clas Ohlson before, completing the shopfits of the mall-based Merry Hill store and the three-storey former Zavvi unit at Liverpool’s Clayton Square.

Clas Ohlson, Merry Hill (20 Feb 2011). Photograph by Martin Jarvis

The Newcastle store’s basement location makes it one of the more challenging projects to manage, though the retention of the existing public lift and escalator – confirmed by Louise – makes things a little easier. Louise told me that all material has to be brought in and out of the site using the rear goods lift – and with the existing shopfloor being stripped down to a shell and rebuilt from scratch, that’s quite a lot of material to shift.

Nevertheless, Louise assured me that work on site – which began on 4 May, just a couple of weeks after Collectables’ closure – is all “on time and on programme”, with handover to Clas Ohlson scheduled for four to five weeks before the store’s opening date. Louise explained that a few DRC staff will remain on site until the store opens its doors, in order to deal with any adjustments to lighting or fixtures that might be required.

Though DRC will no doubt be in contention to work on future Clas Ohlson fitouts, Newcastle remains, for the moment, the only UK store scheduled to open during 2011. It will be the chain’s twelfth, and most northerly, British store since it entered the UK market in November 2008, and the first one to open since Cardiff, Doncaster and Norwich launched in quick succession in December last year.

Clas Ohlson catalogue

As I’ve noted before, Clas Ohlson’s preference for publishing total sales figures rather than like-for-likes makes it hard to unpack quite how its UK stores are performing. The latest figures (for April 2011) show that the UK stores turned over SEK 16m that month, compared to SEK 11m a year earlier – up 49% in SEK, or a healthier 62% in GBP.

Clas Ohlson from top of Briggate, Leeds (21 Jan 2011)

However, April 2010′s figures were based on just five stores (plus a couple of days’ trading from Leeds and Liverpool), whereas April 2011′s are based on 11. This suggests that while store numbers have more than doubled over the period, sales haven’t grown at quite the same rate.

In short, it seems like Clas Ohlson’s decision to slow its UK expansion is a wise one, given that there’s still some work to do in raising awareness of the Clas Ohlson brand and offer in those locations where it’s already represented. Come August, it will certainly be fascinating to see what the people of Newcastle make of this new and quirky retail experience on their doorstep.

'Notice of Peaceable Re-entry' at Alworths, Llandudno (7 Mar 2011). Photograph by Dave Roberts

Following a weekend of speculation about the future of ‘son of Woolworths’ chain Alworths, events have taken a further turn today with the news that bailiffs have seized the chain’s Llandudno store.

The ‘Notice of Peaceable Re-entry’ (above – click to enlarge), photographed for Soult’s Retail View by Dave Roberts, cites the business’s “failure to pay rent due” as well as “breach of Clause 35.1 (c.111) as provided for in the lease.”

This clause, according to the notice, relates to “the giving of any notice of intention to appoint an administrator, or the filing at court of the prescribed documents in connection with the appointment of an administrator, in any case in relation to the tenant or the guarantor.” This would seem to add weight to Retail Week’s article from Friday, which broke the news of Alworths’ apparent difficulties and speculated that a pre-pack administration may be on the cards.

Closing down sale at Alworths in Llandudno (4 Mar 2011). Photograph by Dave Roberts

According to Dave, the bailiffs changed the Llandudno store’s locks, with all of Alworths’ stock and fittings still inside. Only a few days ago, at least three Alworths stores – in Alloa and Evesham, as well as Llandudno – launched closing down sales, captured by Dave (above) on Friday. It’s not yet clear whether any other stores within the 17-strong chain have been subject to re-entry proceedings today.

Whatever happens next, it’s a sad and disappointing situation for a business that had promised to replicate the best bits of Woolworths while avoiding its predecessors’ pitfalls. It’s also clearly unsettling for the chain’s hardworking staff, many of whom are ex-Woolies workers and have already been through one retail collapse.

As my 18 Alworths-tagged posts testify, I’ve been consistently supportive of what Alworths has tried to achieve, and many of its business decisions have – at least outwardly – seemed sensible.

Woolworths, for example, tended to struggle with its larger stores in bigger town and city centres, but was often a key retailer in smaller communities – those places where it was the only shop in town to sell buttons, DVDs or toys. On this basis, Alworths’ decision to open relatively compact shops (less than 10,000 sq ft) in predominantly small, market town locations appeared logical.

Equally, where Woolworths struggled under its big corporate structure and relative inability to respond to local variations, Alworths’ head office has always appeared to be a leaner, nippier operation.

The now-closed Alworths in Amersham (14 May 2010)

Perhaps most importantly, the Alworths brand seemed to be gaining recognition and popularity within the communities served by its stores – always, you might argue, one of the most powerful assets of the defunct Woolworths.

However, none of this counts for anything if the business can’t make money, and the absence of recent updates from Alworths – whether in terms of store announcements, tweets or website content – can be seen, in hindsight, as a clue to all not being well.

Closing down sale at Alworths in Llandudno (4 Mar 2011). Photograph by Dave Roberts

Over the coming days and weeks, it will no doubt become clearer whether Alworths has a future, and what form that might take. Retail Week’s article last week cited documents filed at Companies House, which showed that Alworths boss Andy Latham had resigned as a director of the company.

In turn, it reported that a new company – Retail Acquisitions, with Latham as one of its directors – had been set up, and was “expected to take control of Alworths.” However, history – such as the experiences of Vergo Retail and Ethel Austin – has showed us that former owners buying back collapsed businesses under a new name have a patchy record of success.

Understanding what has gone wrong with Alworths this time will be critical, if the same mistakes – whatever they turn out to be – are not simply to be repeated. Indeed, what makes the present episode most surprising is that Alworths’ public pronouncements have consistently suggested that the chain was trading strongly.

While Claire Robertson’s tweets give every indication that Dorchester’s Wellworths is still thriving, Alworths’ woes will raise questions over how far a ‘son of Woolworths’ formula can be resurrected at a national rather than a shop-by-shop level.

My friend and fellow retail blogger Steve Dresser, reacting on Twitter, remarked that “Woolworths failed due to it not being a practical business – Alworths was hardly going to be different.” Current events suggest that he may well be right.

UPDATE, 9 March 2011: I understand that Alworths in Llandudno is open again today, after being closed Monday and Tuesday. Presumably the unpaid rent has been sorted?

Clas Ohlson, Leeds (21 Jan 2011)

Things have been pretty quiet on the Clas Ohlson front since the Swedish hardware retailer announced the latest stage of its UK expansion, back in August. Those new stores in Cardiff, Doncaster and Norwich have subsequently opened, just before Christmas, but there’s no news yet on where the next additions to Clas Ohlson’s 11-strong UK store portfolio might be.

In August, the retailer’s chief executive had suggested that the chain could grow to as many as 200 UK stores, though a statement in December indicated that its rate of expansion in Britain was being scaled back due to the “strained” UK economy. In terms of actual store openings, this meant that Clas Ohlson would be envisaging 4-6 new UK stores by the end of the current financial year, rather than the 6-10 that had originally been planned.

Window display at Clas Ohlson, Leeds (21 Jan 2011)

An article in Monday’s Guardian recycles some of this earlier commentary, but gives some positive news regarding Clas Ohlson’s long-term plans for this country. It quotes boss Klas Balkow as saying that “there’s no panic”, and that “there is a long-term commitment from myself, the board and the company’s owners. We are not rushing – we are taking it step by step and building the brand.”

Screenshot of Clas Ohlson website (9 Feb 2011)

The article indicates that “a UK website will be launched in the second half of this year” – presumably a transactional one, given that a basic site with product information already exists – but gives no clues regarding the locations or timing of the next high-street shops. However, in just the same way as US giant Best Buy is selling online in the UK at the same time as building a fledgling store estate, making the Clas Ohlson website transactional will be an important step in increasing the retailer’s UK reach, and in continuing to develop awareness of the brand.

As you’d expect, I couldn’t resist paying a visit to Clas Ohlson’s Leeds store when I was in the city last month. Occupying a prominent corner chunk of The Headrow’s Broadgate development – the building that used to house the Allders (and, before that, Lewis’s) department store – the store benefits from a fantastic, prime location at the top of Briggate, with double-height glazing that makes a bold impression on the street.

Clas Ohlson from top of Briggate, Leeds (21 Jan 2011)

Inside, the 23,142 sq ft store is spread across two floors, and feels very spacious – indeed, other than the shop in Manchester’s Arndale Centre, the Leeds store is Clas Ohlson’s largest to date. On the downside, I was less impressed by the choice of piped music (maybe it’s my age, but I don’t find rapping condusive to relaxed shopping), and the store seemed much, much quieter than it really should have been on a Friday afternoon at 5 o’clock, a full one and a half hours before closing.

Clas Ohlson, Leeds (21 Jan 2011)

Perhaps I just visited at a quiet time, as Clas Ohlson’s UK sales figures continue to be quite strong. The latest figures, for December 2010, show UK sales of SEK 42, compared to SEK 26 a year earlier. As usual, however, it’s important to understand what’s being compared with what – where December 2010 had eight stores trading for the whole month and the three new ones for only part of it, December 2009 had only four fully-open stores with a fifth (Watford) opening during the month. On this basis, and taking into account the generally smaller size of the recently opened shops, sales densities would seem to be more or less on a par with a year ago.

Going back a couple of months, Clas Ohlson announced sales of SEK 18m (about £1.64m) from its then seven UK stores during October 2010 – again, a seemingly headline-grabbing 216% increase from the SEK 6m figure recorded a year earlier, when the retailer had just two stores in this country.

While Clas Ohlson does not publish like-for-like comparisons explicitly – the reason why meaningful comparison of the numbers is difficult – we do know, as I previously blogged, that sales for June last year were SEK 15m. Given that Clas Ohlson’s UK store portfolio (seven stores) was the same in October as it was in June, October’s SEK 18m figure indicates a 20% increase in like-for-like sales over this 4-month period – a strong performance by any measure.

On the other hand, while the increase in UK sales densities – from SEK 2.1 m per store in June to nearly SEK 2.6m in October – is heading in the right direction, there’s still a way to go before the UK branches are generating as much income as their more mature equivalents in Sweden or Norway.

Still, as long as Clas Ohlson is determined to persevere with its UK ambitions, ride out the economic downturn, and make its offer available to more British shoppers, there’s every chance that its quirky ‘usefulshopps’ will become an increasingly common fixture on our high streets.

John Lewis Oxford Street, London

Given how long it’s been since the weekly trading figures for John Lewis department stores last recorded a year-on-year fall in sales, it’s little wonder that the 2.2% sales drop announced today seems to be causing a few jitters. 

On the back of this month’s VAT increase and an apparent “astonishing” plunge in consumer confidence, it’s inevitable that any sign of a wobble in trading at the UK’s retail bellweather will catch the eye of commentators. We’ll have to wait for future weeks’ figures to see whether this fall is merely, as John Lewis suggests, a weather-skewed blip, or if it does mark the beginning of something more unpleasant. 

John Lewis Leicester

For the half year as a whole, however – which ends with next week’s figures – it’s hard to argue that a 10% year-on-year rise in sales is anything but impressive, even if the stellar rise in online sales (38.9% up year on year) does to some extent mask a comparatively less strong performance from John Lewis’s shops. Of those, the half-year performances at Cambridge (+9.4%), Leicester (+8.8%) and Oxford Street (+8.1%) are the most improved.

Thinking about the John Lewis sales figures brought to mind my third ever blog post – a whole 170 posts ago – written back at the height of the recession in July 2009 when weakened retailers, post-Woolies, were still dropping like flies. It’s worth placing today’s 2.2% John Lewis sales drop in the context of the trading picture that I described back then. By way of reminder, here’s some of what I wrote 18 months ago:

Giving a picture of slightly longer-term trends, the comparisons given for the current half-year, rather than just the last week, tend to be more insightful.

These remind us just how challenging John Lewis’s trading was between February and April – even after what is now 13 successive weeks of positive figures compared to 2008, Cambridge is still the only physical store to have enjoyed better sales (up 1.5%) over the current 24-week period than it did during the same stretch a year ago.

In contrast, it’s interesting that John Lewis’s worst performing store over the last 24 weeks has been John Lewis Bristol at the out-of-town Mall at Cribbs Causeway, where sales are down a whole 12.5% compared to last year.

Comparing figures for that half-year with the most recent one show just how much things have improved. Cambridge’s recent +9.4% performance is clearly much better than the +1.5% that I wrote about in July 2009, while Bristol – down 12.5% year on year back then – is currently registering a sales fall of only 0.6% for the current half year. Of course, the flipside is that these comparisons remind us how bad things could yet get, if all the worst fears of a double-dip recession are realised.

John Lewis Bristol. Photograph by Mark Leaver

While Bristol was the weakest performing John Lewis store in early 2009, it’s interesting that current half year figures award that slightly dubious status to Newcastle. Sales at the former Bainbridge are down 3.5% compared to a year ago, with Liverpool (-1.3%) the only other store to record a sales decrease of more than 1%.

However, just as I observed back then that the Bristol store’s figures were undoubtedly impacted by the recent opening of Cabot Circus, one must imagine that the opening of Newcastle’s Debenhams-anchored St Andrew’s Way, in February last year, has had a similar effect on the John Lewis up here. In the same way as Bristol’s figures have now smoothed out, it will be interesting to see what the JL weekly stats for Newcastle look like once the opening of the Eldon Square extension is no longer skewing the year-on-year comparisons.

Even with the overall boost in sales and footfall that the Eldon Square extension has surely given Newcastle city centre, it was always likely that there would be some cannibalisation of existing stores. However, the apparent impact of Debenhams’ opening raises interesting questions about how far Newcastle could support any more upmarket department stores, with House of Fraser, Selfridges and Harvey Nichols all having been linked to the city at various points in the last twenty years.

Maybe we should just be content with our John Lewis, Fenwick and Debenhams – after all, since the closure of Joplings last year, it is still two more department stores than Sunderland has…

Existing Kingston store

The much-blogged-about Swedish hardware retailer Clas Ohlson published its sales figures for June yesterday.

What’s interesting is that sales for the UK are now being stripped out from those of Finland, giving us a much clearer idea of how the UK business is doing. Total sales were SEK 442m, of which the seven UK stores accounted for SEK 15m. A year ago, the UK business delivered sales of just SEK 5m, with the June 2010 figures representing a seemingly impressive 176% increase – or 203% in local currency. Sales in Clas Ohlson’s home market of Sweden, in contrast, were unchanged year on year.

The trouble, of course, of eyecatching percentage figures like these is that they are not based on like-for-likes – in other words, the year-on-year comparison takes no account of any stores that may have opened or closed in the intervening period.

To give another example, this is why, at a time when the business is expanding rapidly, the John Lewis Partnership’s trading figures – which again show only the raw increase in sales, not like-for-likes – need to be interpreted carefully. There’s no doubt that both the eponymous department store chain and Waitrose are trading well right now, with the latter’s latest weekly figures, published today, showing a 13% sales increase compared to a year ago. It’s just that once you take out the effect of new stores opened in the last 12 months, the actual sales increase in the established stores is inevitably lower than the headline figure.

Clas Ohlson fascia

Apply this to Clas Ohlson, and you realise that while the June 2010 figures are for seven stores (two of which had, admittedly, only been open for a month), the June 2009 stats are for just two (Croydon and Manchester). On this basis, the threefold increase in UK sales is just about what you would expect, especially since two of the five new stores are the smallest in the estate.

By way of an alternative measure, what happens if we look at each country’s sales figures for June 2010 in relation to the number of stores?

• For the UK, sales work out an average of SEK 2.1m for each of the seven stores.
• Finland has 16 stores and a turnover of SEK 35m – so that’s SEK 2.2m per store, a little higher than the UK.
• There are 42 stores in Norway – with total sales of SEK 182m, that’s an average of SEK 4.3m for each shop.
• The rest of the stores – 56 – are in Sweden. If total sales are SEK 210m, that works out at SEK 3.8m per store.

What does this tell us? Well, it basically confirms the trends that Clas Ohlson highlighted in its own year-end report for May 2009 to April 2010. Here, the retailer notes that “the response from customers to the newly opened stores in the UK has been positive and the number of visitors to date has been higher than the Group average”, but that “the conversion rate and average purchase in the UK have been lower than the Group average, which is generally the case in conjunction with the penetration of new markets.”

Looking forward, the report explains how “Clas Ohlson anticipates that establishing its brand name and position in a completely new market will take time, and that the conversion rate, average purchase and sales will gradually increase in coming years.”

In other words, while the sales densities for the UK stores are indeed currently lower than those of the more established Scandinavian branches, Clas Ohlson’s message is that this is just a normal part of entering a completely new market, and that they’re in it for the long haul.

As more UK stores open, and the Clas Ohlson brand becomes more widely known among British consumers, it will be interesting to see how quickly the UK sales densities can catch up with those in the retailer’s more mature markets.