UPDATE-Bergendahls #1 2011

2011 #1 Published by bergendahl & son ab

We wish you and your family a really Happy Easter!

theme – How to increase sales We’re gathering our forces in every part of Bergendahls to combat and overcome the tough challenges ahead of us internally and from the outside world. One of the most important things is how to increase our sales.

PASSION IS SOPHIA’S DRIVING FORCE

Update on MEI Yedersome

Spira & Gro spring campaign for Granit

Outlook

Spira & Gro

A blossoming spring usually follows a harsh winter We have experienced another very hard winter in northern Europe. This has chipped away at both consumers’ wallets through high energy costs and also at our mood when we found winter starting early and never wanting to end. In addition, we also had business setbacks in the form of sales figures not meeting expectations in most markets. The normally stable Swedish grocery market has faced a setback in the form of reduced sales of comparable goods. Most retail operators have suffered from this lack of consumer demand, which can also be seen in financial statements released in recent weeks, although this is nothing we can seek solace in - it just means that the battle for consumers will be even harder.

I am far from satisfied with our performance so far this fiscal year and we are currently not reaching our targets, which will lead to cost savings and the withholding of investment, but also increased sales activity to win back the sales that have gone to other sectors than our own.

Q1 2011 has been one of the most eventful in a long time.

We have introduced a new Swedish retail concept with retailerowned grocery stores, sold the Bolagret chain and changed the management of both Bergendahls Home Deco and Bergendahls Fashion. All of this while the world has literally exploded with dramatic events in North Africa and the earthquake in Japan.

Although we are not directly affected by these events, we will certainly indirectly experience their effects in the form of new market access and now that the energy issue is becoming even more crucial for many countries.

When you are in the depths of winter and analyze your setbacks, they look to be undeserved, and certainly unwelcome, but I am confident that the spring and early summer will be easier and that we will learn a lot by questioning what we are doing. We must become better at delivering the plans we have made and make corrections if reality has not matched the plan. Bergendahls Food saw the danger early, hitting the brakes over a month ago and committing the organization to reducing costs and increasing sales. This is an excellent example of how a retail organization should act.

I hope and believe now that we have a fantastic spring and early summer ahead of us and also that we can look forward to increased sales. If we succeed in keeping our costs down and getting back our customers, we can then look back on spring 2011 as a turning point and an important lesson for the future.

I would also like to wish you and your families a very Happy Easter.

Spiros

Granit is continuing its clever advertising campaigns. Last Christmas we were met by talking billboards and this spring we will see Granit advertisements in major cities, some on the sides of buses and some in certain metro stations in Stockholm. In this year’s spring campaign, Spira & Gro, Granit is showing off its great new products and seasonal favourites, along with lots of plants.

They have worked with a plain concrete wall as a backdrop to highlight the products’ mood. The materials are, as always, close to nature and the products are made from materials such as concrete, zinc, cane, wood, glass and cotton.

To capture a certain playfulness and wake people’s interest, insects have been illustrated in the photos.

The campaign aims to highlight the proximity of stores and show that Granit, uniquely, has so many products to hang outdoors, despite being in such central locations.

Granit wants to remind consumers that the nearest store is always a bike ride away. To emphasize this, there is a competition for customers to come up with the smartest, funniest and best picnic tips at the end of April. The prize is the two Kronan bikes that appear in the adverts. Granit’s Spira & Gro advertisements inspire us in the spring, when we want to hang out, play, sunbathe, sleep, cycle and eat out!

Profile PASSION IS SOPHIA’S DRIVING FORCE Despite her youth, Sophia Yderbo has managed to do a lot. Maybe it’s her tenacity and drive. Sophia is a person who places great value on the route to the goal. Once she reaches it, she’s not content to stay still. Then it’s time to start the process again and work on with new goals. This is fuelled by her passion.

MEDIA WORK Even as a teenager Sophia was fiercely determined to make her way in the media industry. Political assignments helped her to both train and hone her leadership skills. She then focused on media and journalism at high school and vocational colleges.

She became an intern on local newspapers. She also did an entrepreneurial training course, with the aim of becoming self-employed at some point in the future. Whilst doing her training, she also worked at Guldfynd. Sophia fitted in management training in Stockholm as well before starting her career at Glitter.

AREA MANAGER She applied for and obtained a temporary position as a store manager at Glitter in Nyköping. When Glitter opened a new store at Globen in Stockholm, she got her first permanent job as store manager. After about a year, it was time to move on again. Glitter needed an area manager for a new region, and Sophia got the job. The work involves coaching in 17 stores from Karlstad in the north to Växjö in the south. “My role as area manager means getting store managers to act as managers. Everyone has advantages and opportunities. It’s important to focus on this,” says Sophia. She combines her own philosophy with Bergendahls’ “with freedom comes responsibility”. This, combined with values, makes a sound base to build on at work.

facts Sophia Yderbo HOME: Nyköping AGE: 27 FAMILY: Has had a partner for 12 years INTERESTS: Dancing, writing her diary LIKES TO READ: Non-bestsellers FAVOURITE FOOD: Prawns LISTENS TO: Everything. Quite a fan of Jussi Björling CURRENT POSITION: Regional manager, Glitter

SOFT AND HARD Her work as a regional manager inevitably involves a lot of numbers, results and follow-ups. ”At least as important is to sit down and ask ’how are you?’ You must have a good balance of the emotional and the rational, the soft and the hard.

Otherwise, you can’t create drive or even a nurturing relationship. Behind the achievements, we’re all human beings,” says Sophia.

PLANNING THE FUTURE Sophia always operates both in the present and the future.

Decision-making requires that you see the consequences. It also means that Sophia looks forward and plans for her own future. She loves her job and the challenges involved. She always dreamed of becoming a store manager. That dream has been achieved. Now there are other dreams. She sees the benefits of Bergendahls and hopes one day to be able to work in grocery. She’s in no hurry. Everything has already gone very quickly.

PINE CONES AND STICKS Sophia’s experience of managers is that there are those who sniff out problems and those who sniff out solutions. “I am aware of both, but I work on solutions. I have noticed that I can use both halves of my brain and benefit from both. During my training, we often worked on creativity. Even if we only had a pinecone and a stick to work on the solution. Sometimes the solution may be difficult or seem non-existent. But it’s really just about looking in the right direction,” says Sophia.

theme

How to increase sales We’re gathering our forces in every part of Bergendahls to combat and overcome the tough challenges ahead of us internally and from the outside world. One of the most important things is how to increase our sales.

In a speech in March, our CEO Spiros Mylonopoulos pick-

start of the autumn. We are now focusing on trying to

ed out three key words that are particularly important

be the best at dealing with a stagnant market. We do

for our future development - leadership, entrepreneur-

this by reviewing how we work and trying to optimize

ship and values. Starting with our values and with the

everything we do. We are also trying to be the most

support of good leadership, we can release the entre-

interesting option for people with thinner wallets,” says

preneurship that is the foundation of our continued

Peter Lund, CEO of Bergendahls Food.

growth and development.

As examples, he mentions a number of concrete measu-

Our entrepreneurship is demonstrated by all the various

res. City Gross has changed the look of its adverts and

activities launched this year in order to improve sales

flyers to get more people to visit. No detail has escaped

in our stores. The background to this is that Food, our

change - everything has been adjusted, from the colours

largest sector, has had to contend with a weak retail

to the prominence of the price tags.

market since the autumn, while Fashion and Home

In store, a series of changes have been implemented to

Deco have now merged in an attempt to improve results

inspire customers to buy more than they had planned.

through an increased emphasis on sales, among other

For example, there are more attractive deals imme-

things.

diately after the entrance, to put customers in a good mood and encourage a ’bargain-hunting’ feeling. They

City Gross and pricing

have pursued deals such as selling high-margin pasta

The Food flagship City Gross started working on

strainers together with pasta. Customer aisles have

increasing pricing in the autumn. The recession within

been streamlined so that the consumer sees attractive

groceries has led to much greater competition on prices

offers throughout the store. Various departments have

from weaker-performing chains. For consumers it

been given clearer guidelines on things including floor

means more advertising about low prices.

markings and ceilings.

“We had the highest growth in the industry until the

This work on prices has highlighted different ways to

change working internally and in relation to suppliers.

20%-off vouchers were distributed for the first week-

Every effort has also been made to reduce wastage.

end in April, and a similar activity will be conducted in

“Reducing our own wastage is an important process,

early May. At the same time, there will be more audio

while at the same time we have to make sure that our

advertisements in the store with an emphasis on special

consumers do not suffer because they are forced to

promotions to increase the average purchase.

throw food away after buying the wrong thing from us,” says Peter Lund.

Glitter invests Glitter is busy this spring focusing on hair and hair

Customer care at Granit & Duka Poland

accessories. From 11th April to 25th May they are

25 April – 1 May Home Deco’s Granit starts its im-

running a campaign called Hair Weeks, with different

portant sales period with the spring campaign SPIRA

in-store offers every week. The campaign theme also

OCH GRO. It includes a mailing to its entire customer

includes trendy editorial features on the website, for

database, with a campaign leaflet and an invitation to

example, with the aim of improving Glitter’s fashiona-

a customer evening in almost all stores on 28th April,

bility.

when all goods will be reduced by 30%. “Granit has a

At the same time, Annika Rost the new MD of

tradition of good customer care work, and we’re now

Bergendahls Fashion for the last few months is spending

working harder to attract our regular customers to buy

a lot of time and energy, together with the rest of the

more from us,” says Katarina Grapengiesser, acting

gang, making a plan for how Fashion can take advan-

CEO of Bergendahls Home Deco.

tage of the 253 Glitter shops in Sweden, Norway, Finland, Denmark and Poland, to increase sales. “Because

Duka Poland is currently focusing on in-store activities,

we work with high margins, we have a lot to gain by

with weekend promotions, price campaigns and mobile

increasing sales. The way to do it is through a number

product presentations including Kenwood. Special

of sales activities, which we’re currently planning,” says Annika Rost.

Bergendahls’ world

Kirsten Callinggaard MD of Mei Yedersome, based in Hong Kong.

BERGENDAHL’S WINDOW ON ASIA Why invest in your own import business, instead of hiring an agency? That way we can control the whole flow and process from manufacture to sale.

Therefore we can also control and influence the price and quality of both the product and the factory, and take responsibility for everything we sell.

The larger the volume, the more competitive our stores become. Our goal is that half of Bergendahl’s trade, apart from groceries, should come via selfimport. Finding and developing our own buying office was therefore an important strategic decision for the Bergendahls Group.

ABOUT MEI YEDERSOME

from Denmark and has a long successful career behind

The company was founded in Hong Kong over 20 years

her. She grew up in the travel industry. At a very young

ago. Mei stands for Martinsson East Import. It was ac-

age, she had the chance to form a travel agency in

quired by Bergendahls in 2006 with a view to acquiring

Tallinn. She also met her husband, Bengt, there. Apart

both the company and its skills in imports. It is now a

from Estonia, they have also been in southern Sweden

wholly-owned company within the Bergendahls Group,

and India for a few years. Kirsten worked for Åhléns

with around 20 employees in Hong Kong and Shang-

in India as head of purchasing. She then continued her

hai. Mei Yedersome has responsibility for purchasing

career in Stockholm, although the couple settled in

within all of Bergendahls business areas: Food, Fashion

southern Sweden. There she was offered a job with Mei

and Home Deco. The company has over 15 years of

Yedersome, with their headquarters in Höör, southern

experience in purchasing for the Scandinavian and

Sweden. With her buying experience, extensive training

Polish markets, which has gained the company an ex-

in strategic leadership and her MBA, Kirsten took over

tensive knowledge of customers, culture and improve-

Mei Yedersome 1½ years ago.

ment work that ultimately contributes to Bergendahls’ competitiveness at home.

LEARN BY LISTENING “I love working with different cultures,” says Kirsten.

FROM HÖÖR TO HONG KONG

“It gives me a broad perspective on life. You can learn

Kirsten Callinggaard runs the business. She is originally

so much from others if you just give yourself time to

listen and show respect for other people’s knowledge

We can help with staff health, safety and quality con-

and experience. I have worked with foreign cultures for

trol at the factories,” says Kirsten. “We are a bridge

the past 17 years, something that has definitely made

between Sweden and Asia in all issues relating to range,

me both a better person and a better manager.”

logistics, finance and quality.”

“The larger the volume, the more competitive our stores become.”

FACTS ABOUT HONG KONG Seven million people live in Hong Kong, on a surface area the size of Stockholm. Only around 25% of the surface area is built-up. The rest is mountainous and

OUR “TRADERS”

not suitable for habitation. This has, naturally, cau-

The buyers in Hong Kong and Shanghai can be likened

sed buildings to be built taller. It has also meant that

to “traders”. They love to do business in the best

housing prices here are the highest in the world. It

possible way. Their job is to look for suppliers and

was ruled by the UK for 150 years. Today it is one of

negotiate on price, quality and packaging issues. “We

China’s most important cities.

help suppliers with any queries about the product from production to shipping. Prior to this, we also carry out quality control of both the products and the manufacturers. We care about how staff feel and are treated.

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NOTICE BOARD

and many of our You haven’t missed that Bergendahls companies are on Facebook have you? ls

http://www.facebook.com/bergendah

City Gross has had success in opening new stores in Borås and Västerås.

Annika Rost has taken over as the new CEO of Fashion.

The owner family has awarded the stipendiums for 2010.

Carl-Mikael Bergendahl has received the European Growth Summit Award as Bergendahls was named Europe’s 23rd fastest growing company in 2010.

UPDATE is published quarterly by Bergendahl & Son AB Postal address: Box 14, 281 21 Hässleholm. Tel (Switchboard) +46 (0)451 45 000. www.bergendahls.se If you have any questions about the content, please contact Josefin Danielsson at: josefin.danielsson@bergendahls.se

Katarina Grapengiesser has succeeded Annika Rost as acting CEO of Home Deco.

Sophia Bergendahl has strengthened the purchasing organization at MEI Yedersome in Hong Kong as a merchandiser.