Denmark: Dagrofa losses deepen & Dansk's hypermarket concept

Date : 14 April 2015

Danish retailer Dagrofa has revealed its 2014 results, reporting revenue of DKK 19,628bn (€2.6bn) alongside a loss of DKK 318m (€42.6m), versus a 2013 loss of DKK 272m (€36.4m). Elsewhere, Dansk Supermarked is continuing with the renovation of its Bilka hypermarkets to the 'future Bilka' concept.

CEO: ‘new retail strategy to be implemented this year’

Commenting on the performance, Per Thau, CEO of Dagrofa said, ‘For our retail business 2014 was a year of intense price competition. However, even if the market has had zero growth, we have managed to strengthen and grow our discounter KIWI, as last year was the fastest growing supermarket chain. We have as planned continued to invest in business and streamline and optimize our organization. In addition, we launched a new growth strategy and a new retail strategy to be implemented this year’.

Format & market update: KIWI, SuperGros & Greenland

• In 2014, Dagrofa opened 8 new KIWI discount stores, having closed 13 unprofitable stores, bringing the KIWI store count to 95 stores.
• SuperGros, the retailer’s wholesale format signed a new supply agreement with the online retailer, www.nemlig.com.
• In Greenland, Dagrofa’s supermarket chain Pisiffik reported turnover of DKK 958m (€128.2m), a decrease of 1.5% versus 2013. The retailer attributed this to‘a stagnant market and a negative development in the Greenlandic economy’.

New online supermarket for small businesses

Yesterday, the retailer launched an online supermarket for small businesses, www.dagrofaerherv.dk. Dagrofa identified this as an opportunity when Metro Cash & Carry exited Denmark last year.

2015 outlook

Dagrofa expects 2015 revenue to be in line with that of 2014 and has developed a strategic plan for 2015-17, which includes establishing a new supermarket concept for MENY.

Dansk Supermarked continues renovation of Bilka hypermarkets

Dansk Supermarked has begun the renovation of another Bilka hypermarket to the ‘Future Bilka’ concept to ‘provide customers with a more inspiring shopping experience’.

The project, which will result in the renovation of 18 Bilka stores, will see stores offer a wider range, including at fish and delicatessen counters. Shoppers will be able to self-scan their products while shopping and in-store fridges and freezers will also be more environmentally friendly. Meanwhile, the décor has been designed following a ‘surveys of customer requirements, expectations and needs’.

 

Photographer - Claus Sjödin

Interested in how retailers are driving growth at large format stores? Explore Retail Excellence: The future of supermarkets and hypermarkets.




Harriet Cohen is a Senior Retail Analyst in IGD's international research team, specialising in Northern & Central Europe. Harriet will be visiting Oslo and Copenhagen next week between April 20th and April 24th. To arrange a meeting and learn more about how IGD's research can benefit your business further, please get in touch. 
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