Søstrene Grene, the renowned Danish homewares and hobby brand, is commemorating its 50th anniversary with a remarkable display of financial achievements and a strategic vision for the future.
The company’s recently disclosed financial report for the fiscal year 2022/23 underscores unprecedented turnover figures, totalling 1,797,138 DKK (equivalent to around 208,000 GBP), and a principled decision to absorb rising costs, reaffirming the brand’s unwavering dedication to its customers and core values.
CEO Mikkel Grene elaborated on the brand’s trajectory, stating, ‘After proceeding cautiously in recent years, we are now accelerating expansion. We plan to add approximately 100 physical stores over the next 2.5 years, targeting a turnover of 3 billion DKK [350 million GBP] by 2023-24, an eightfold increase over the past decade.’
In a standout performance for the fiscal year 2022/23, Søstrene Grene proudly announces a historic surge in turnover. Despite substantial price hikes across various sectors, the company chose to absorb most of the additional costs, resulting in a modest decrease in profit margins. This aligns with their commitment to customer price stability while addressing profitability challenges. The company is presently engaged in renegotiating agreements with its suppliers and partners, signalling a concerted effort toward a more favourable financial trajectory.
Mikkel Grene expressed satisfaction with the results, stating: “Our objective is to enhance both our top and bottom-line performance year after year, yet I am content with our decision to absorb most of the price increases driven by inflation rather than passing them on to our valued customers.”
Mikkel Grene credited the company’s resilience to its dedicated team and loyal customer base. Despite the challenges posed by the inflation crisis and the Ukraine conflict at the start of the fiscal year, Grene noted: “It seems that our concept, which in many ways is a small, wonderful break from a stressful everyday life, has found an even greater justification in an uncertain and tumultuous times.
In the current fiscal year, Søstrene Grene is poised to accelerate its expansion initiatives, including the opening of new physical stores across Europe. Moreover, the company anticipates continued growth and is set to establish new turnover records.
Søstrene Grene is making substantial investments in digitalization, with plans to launch webshops in Austria, Belgium, Ireland, Switzerland in 2023. The UK webshop was successfully launched at the beginning of September. Additionally, the company has unveiled a customer app, boasting over 500,000 downloads, with high expectations for its future contributions. A significant investment is also underway for the implementation of a new ERP system, SAP.
This strategic digital expansion is fully aligned with the international retailer’s broader strategy, which encompasses a global presence with over 270 stores worldwide, including 17 stores in the UK. Recent store openings in Cheltenham, Kingston, High Wycombe, Bracknell, and Sheffield have been warmly received by customers, and their latest store is set to open in Liverpool on October 6th. Søstrene Grene’s ambitious plan extends to establishing an additional 50 stores across the UK in the next 3 to 4 years. Their goal is to repurpose vacant retail units and actively contribute to the revitalization of high streets and shopping centres.
At the forefront of Søstrene Grene’s priorities is the Environmental, Social, and Governance (ESG) agenda. The company remains steadfast in its pursuit of responsible product offerings, circularity, reduced CO2 emissions, and sustainable practices.
Mikkel Grene underlined this commitment, stating: “We are steadfast in our commitment to being a responsible company, continuously striving to minimise the environmental impact of our product offerings.”
Initiatives include phasing out single-use plastic products, reducing packaging waste, and prioritizing modes of transportation with reduced footprint.
Søstrene Grene is a Danish homewares brand known for its commitment to providing aesthetic designs, creativity, and a sense of ‘hygge’ to its customers. With a rich history spanning five decades, the company remains dedicated to its core values while adapting to the evolving needs of consumers.