Amidst economic challenges, Søstrene Grene achieved record financial results, attributing success to strategic investments.
- The Danish retailer reported a 15% increase in pre-tax profits, reaching £24 million in the past financial year.
- Sales for Søstrene Grene surged by 22%, totalling £247 million, despite referencing broader economic challenges.
- The company plans significant investments, including £11 million towards technology and marketing enhancements.
- CEO Mikkel Grene confirmed the firm’s commitment to maintaining affordability despite rising freight costs.
Amidst challenging economic conditions, Søstrene Grene has announced its most successful financial year to date, driven by strategic investments and increasing demand for its product offerings. The company saw a significant rise in pre-tax profits to £24 million, marking a 15% increase for the year ending in April, solidifying its financial footprint in the market.
Sales rose impressively by 22% to a total of £247 million. This growth was achieved even as the retailer navigated numerous economic hurdles, illustrating the effectiveness of its strategic decisions and market positioning. CEO Mikkel Grene remarked, “This performance validates the strategic decisions we have made to innovate and expand our business. The results clearly demonstrate the effectiveness of our investments.”
Despite this robust financial result, the company anticipates challenges in maintaining its profit margins in the coming year due to escalating freight costs. Nevertheless, Søstrene Grene remains resolute in its strategy to sustain low product prices for its customers. Grene expressed confidence in overcoming these obstacles, stating, “While increased freight costs are a challenge, we remain focused on keeping our products affordable. We expect some impact on margins this year, but we are confident in achieving even stronger results next year.”
The retailer’s future plans involve substantial reinvestment into its operations, a move aimed at fostering long-term growth and efficiency. Søstrene Grene will allocate £11 million to various forward-looking projects including the implementation of an SAP system, automating warehouse operations with robotics, and enhancing digital and marketing capabilities. These developments underscore the company’s commitment to both physical and technological expansion.
With a vision of expanding its global footprint, Søstrene Grene aims to open 60 new stores worldwide by the end of 2024, with an ambitious target of establishing 500 shops by 2027. This expansion plan signifies a pivotal step towards achieving sustained growth and increasing its market presence substantially.
Søstrene Grene’s strategic investments and robust expansion plans position it favourably for continued growth and financial success.
