The purpose of strategic risks is to ensure that the company’s business model is properly adapted in both the short and the long term to our customers and the needs of the various markets.
Changes in the business environment and competition
The retail landscape is changing at an increasingly rapid pace owing to changes in, for example, consumer behaviour, purchasing patterns and technology. Online traffic is increasing at an ever greater rate, at the cost of foot traffic in physical stores.
We are also seeing increased competition from both new and existing players. Global e-retailers and other digital players are always expanding their business and challenging existing business models. Many are competing for the same customers with similar offerings, and it is easier than ever to make comparisons.
The purpose of Clas Ohlson’s new strategy for long-term, profitable growth is to develop operations online, to offer a more unique and focused product offering and simultaneously to add a supplementary service offering to meet increased competition.
This means continued work on strengthening our digital platform and on developing our product range and our service offering. We also enter into partnerships with others to develop a relevant and competitive customer offering that inspires and helps our customers in their everyday lives.
Customers’ purchasing patterns and market position
Constantly connected consumers want to buy when, where and how they want, and regardless of the sales channel they use, they expect a simple and consistent shopping experience tailored to their needs.
The rising trend of online shopping means that the physical store is increasingly becoming a meeting place and an arena for experiences. Customers expect quick, reliable and convenient deliveries, and want to choose the best option for them at that specific time.
Clas Ohlson continues to focus on integrating and developing various sales channels and delivery options, and on our capacity to interact with customers through digital channels to further improve our availability and service level.
Digitalisation provides us with tools to enhance understanding of customer behaviour, drive sales, build loyalty and easily serve customers throughout the entire decision-making and purchasing process, with respect for their privacy (GDPR).
Product range, offering and communication
The company’s most important task is to offer customers a relevant, attractive and affordable product range. If Clas Ohlson were to misjudge new trends in both products and communication, this could entail lower growth and profitability.
Clas Ohlson works on detailed market and competitor assessments in order to create good conditions for designing an attractive and affordable product range.
Clas Ohlson works continually to maintain a clear and inspiring store and online concept, the right pricing and world-class service.
Clas Ohlson will grow its operations and strengthen its brand in markets where we conduct operations. In addition, our customer offering, our sales channels and a supplementary service offering are being developed. The risk is that these investments in growth will not generate the intended results.
Clas Ohlson conducts detailed market and competitor analyses before decisions on strategic investments in our customer offering and sales channels, and capitalises on the experiences gained from previous ventures.