Rival chain plans ONOFF store takeover
TT/Rebecca Martin · 20 Jul 2011, 07:07
Published: 20 Jul 2011 07:07 GMT+02:00
"This gives us more stores in Sweden and a chance to increase the synergy of purchases and logistics," CEO for Sweden, Magne Solberg, told the Dagens Industri (DI) business daily.
ONOFF reported a loss of 152 million kronor ($23 million) last year, according to DI. The year before the company reported losses of 44 million kronor.
According to Solberg there is only space for 3-4 actors on the Swedish home electronics market. So far Expert has been reporting losses in Sweden.
“The purchase will give us a better portfolio with stores of the right size and location," Solberg said.
According to Solberg, Expert’s market share in Sweden has hitherto been nine percent. The purchase of the ONOFF stores will raise that share to 12-13 percent.
Expert has 173 stores in Sweden and is part of the Norwegian Expert concern, In total there are about a thousand Expert stores across Scandinavia and the Baltic states.
The sale is scheduled for completion on August 1st.