Tuesday , May 17 2022

Purchase Stop Hugo Maurstad on Retail Bankruptcy: "You're Really Away To Die – Shopping – Business


"We all know what's going to happen with online shopping." Buying stores loses 20-30 percent of sales, so the majority is in minus, and their costs are the same, says Hugo Maurstad at E24.

From 2008 to 2016, we saw a drop in the number of retail companies in Norway by almost 10 percent if we were to withdraw from newly established online companies.

Virke's main organization calls the situation "apocalyptic".

Since 2004, Maurstad has been a partner in the Scandinavian private equity fund Altor Equity Partners and manages the company's international investment. Altor's portfolio includes, among others, Sbanken, Sats Elixia, the Kingdom of Norway and Rossignol.

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It has to change

The question is how to adapt the industry to a changing business model to ensure its continued existence.

"Some stores in the larger chain could convert much faster, you're too tired, you're dying anyway." Certainly someone did it wrong, he says, and continues:

"But if you are one sports shop, it's not so bad what you can do. Maybe you could trade the chain a little earlier.

He believes that this retail business is evolving, the stores must ultimately offer more value-added services and work with higher margins.

"But there will always be a risk that customers will come, get a lot of advice and help before they go online and buy the product 20 percent cheaper," he says.

Shop as a showroom

In recent years, Maurstad lived in Zurich to build the Rossignol base in the country. This work is now completed and Maurstad moved to Norway a few weeks ago.

After five years of chairing a French ski equipment maker, he realizes that there is a tradition in the future – the company has just opened its first trade in Paris – if it is part of a larger ecosystem.

"We have a principle in Rossignol that says our store is also a showroom, we have all models, all colors and all sizes, but not all models of all colors and sizes, try to find out what's appropriate and instead order the model online in the required color. This reduces costs by not having all the options, he explains.

Flights from the warehouse

Maurstad explains that the worst thing in e-commerce is return.

"It's 25-30 percent on the mature market and it's incredibly costly, for example, in the United States, you often buy three pairs of shoes, one size above and one below, and then you keep the one that fits and return the other two. places to pick up.

Especially in Norway, it will cause a huge cost to the player, he explains, because the shipment is very expensive even at shortest distances.

"We also started shipping goods from Rossignol, I do not think there is anyone else in Norway, and when you connect, you will change the entire economy to business," he says.

– Do not lose yourself

Maurstad also believes in the future for physical trades, but realizes that we will see a relatively large leach in the next few years.

"I do not think the stores will be gone, but I think they are getting smaller and I think they will be part of a bigger deal." We have a dynamism that makes very few trades behave like shops, "he says.

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