We will grow our business and remain financially strong by investing in activities that our customers find valuable, inspiring and helpful in their everyday lives – this is what we call Delivering Sustainable Growth.
We have four main goals in the overall strategy towards 2022.
Our home country Denmark is by far our biggest market, and we want to secure our stronghold as the preferred place for Danes to go shopping for their everyday lives.
The Danish market is characterised by fierce competition from both domestic and foreign retailers, a dense network of retail stores and new consumer trends that increasingly challenge traditional retail.
We hope to win the hearts of our customers by continuously re-investing our profit in value-added shopping experiences across our Netto, føtex, Bilka and Salling chain brands and our Starbucks and Carl’s Jr franchise brands. This includes new store designs, events, inspiration, extended opening hours and continuously improving quality, range and price.
Poland is enjoying growth in its economy and its citizens are expected to continue to increase their level of disposable personal income. Polish customers are increasingly looking to Netto and discounters to meet their daily needs. We want to play a significant role in the market by opening more stores, developing the store design and offering local products as well as an international range.
Sweden is dominated by traditional domestic supermarket chains; however, a growing number of Swedes are turning to Netto and the other discounter in the market for their everyday shopping. Discount is the fastest growing segment, and we want Netto to drive the development even further by opening more stores, developing the store design and offering local products as well as an international range.
Germany is a highly competitive market with powerful national retailers. Our ambition is to maintain Netto’s current position as a well-established discounter in North-East Germany with a strong focus on local products as well as an international range.
Customers are increasingly supplementing their supermarket visits with online shopping. As a strong e-commerce player in Denmark, we want to meet their wish to connect with a trusted retailer at all hours and from anywhere.
We are progressively expanding our product range and improving the functionality of our existing channels: Bilka.dk, føtex.dk, Salling.dk and Wupti. Furthermore, we aspire to create seamless and personalised shopping experiences across physical stores, in-store touchscreen kiosks, customised digital leaflets, websites and apps.
The e-commerce ambitions go beyond our own organisation. With Wupti Marketplace, we offer producers, niche web shops and other businesses an online platform with a well-known brand that will help them showcase their products and grow sales. With more than one million shoppers every month, we aim to make Wupti Marketplace an attractive and strong Danish alternative to global e-commerce players.
Fast paced lives, new food trends and digital development is rapidly affecting the way people buy, prepare and eat food. We continuously investigate how to play a more active role in helping our customers plan, save time and get inspired when creating their everyday meals. This entails entering areas outside traditional retail.
We have already expanded our convenience range in stores and will explore this further in collaboration with our suppliers. Furthermore, we are looking into various solutions such as subscriptions, meal boxes (e.g. acquisition of Skagenfood in 2017), click & collect for food (e.g. launch of BilkaToGo in 2017).
Convenience is definitely a trend that we will tap into. Healthy food and sustainable products are others. We will build on our strengths within organic and animal welfare products and further investigate how to grow our range of free-from, vegan, fair trade and other sustainable products to meet our customers’ expectations.