The Danish low-price chain Normal has adventurous traffic growth and increased profits. They completely crush competitors Europris and Nille.
Normal describes itself as a chain of stores that sell completely normal goods at abnormal prices. Common items include Ajax cleansers, Gillette shaving equipment, L´Oreal hair care, Colgate toothpaste and Maybelline makeup. The segment is non-food, i.e. it is not food.
The strategy is to buy brands where they are cheapest and sell them at fixed, low prices. The low-price chains Europris and Nille may be the Norwegian concepts closest to Normal, we’ll get back to that.
The first store in Norway came in early summer 2017, and over three years the low-price chain grew from 0 to almost 1.5 billion turnover.
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– We are very proud of the growth we have achieved, it is a strong growth in the place where we stood together in the era of the crown, says CEO Michael Eeg from Normal Norway for Nettavisen Økonomi. The women-dominated company has 1,058 women and 197 men.
The financial years normally deviate, from August 1 to July 31. The chain increased the number of stores during the financial year from 80 to 93, which explains much of the revenue growth.
Normal Norway managed to increase turnover by as much as 53 percent from 2019 to 2020, from NOK 944.4 million to NOK 1,445.3 million.
Normal thus completely crushes Europris and Nille. Nille did not present figures for 2020, but had lower turnover in 2019 compared to 2018. Europris is doing better and recorded a turnover growth of 26 percent, or half less than normal. Europrise figures are nevertheless very strong, especially as they are much higher than normal.
Eeg raises that in reality they have no competition in Norway.
-I respect Nille and Europris a lot, they are very good at what they do. But they are too different from us, I don’t see them as competitors, he claims.
Normal’s operating profit for the period improved from NOK 45.7 million to NOK 129.7 million, profit before tax from NOK 37.3 million to NOK 117.4 million.
– How did the corona crisis affect the figures from March to August?
– In the beginning, it affected us negatively, but gradually there was a positive growth. Overall, shopping malls are doing well in Norway, Eeg says. In addition to Denmark and Norway, Normal has established itself in Sweden, the Netherlands and France
The Normal Committee of Norway writes in its annual report that the pandemic is less affected than other industries. According to the Eeg, their growth is generally strong, there are no specific areas that stand out.
Read also: Coronavirus generates record sales for Europris
– How was the crown harvest?
– It is the same trend, the number of customers continues to increase in our stores as long as we buy the right goods, says Danish Eeg who moved to Norway. The company is headquartered in Kristiansand, and the company is part of the Danish group Heartland AS through its parent company Normal Danmark.
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– Who is a typical regular customer?
– This is what is so exciting in our concept, we accept a wide range, Eeg replies.
The goals for next year will not be quantified. Eeg says the ambition is to continue to serve customers to gain a good experience and how good the staff is.
– We have not set targets for the number of facilities, but we still see opportunities where there is a big crowd. And then we’ll lie down where there are other powerful concepts nearby. That’s an advantage for us, Eeg says.
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