Our business model

Curious about our sourcing or how we design our stores? Read all about our business model below.

We design our own products

Our product range is developed by our in-house product teams and is inspired by our Danish heritage. The product selection is based on relevance and uniqueness and with an overarching focus on sustainability throughout the product range. We have a full in-house design department creating graphic design as well as product design in close cooperation with our Category and Product Managers.

Our assortment categories range from home, kitchen, hobby, and party, to toys, electronics and gadgets, food and accessories and has a broad appeal across all demographics. Each month, the assortment is refreshed with new products typically adapted to seasonal themes and/or festive occasions, e.g., Valentine’s Day, Easter, Back-to-School, Halloween, or Christmas.

The seasonal campaign products are complemented by our fixed assortment consisting of around 1,400 products that are relevant across seasons and always available in our stores.

Sourcing

While the product selection, innovation, and development is mainly carried out in-house, production is outsourced to external suppliers, who commit to our Supplier Code of Conduct, and our ambitious sustainability targets, quality, and ethical policies, while working under our supervision.

All products go through our product safety process, which coupled with our test programme, ensure that quality and all compliance requirements are met.

To ensure an optimal product execution in stores, we have established a cross-functional sales and operations planning process. This process monitors the full supply chain status and alerts in due time in case of any discrepancies in targets or planning.

Logistics

An efficient logistics operation providing our stores with on-time deliveries is a cornerstone of our business. We work with a number of logistics providers to ensure scalable and costefficient operations around the globe. In 2022, our logistics centres in Copenhagen (DK), Raunds (UK), Barcelona (ES), Shanghai (CN), Shimizu (JP) and Incheon (KR) shipped morethan 333,000,000 pieces to our stores.

 

Corporate backbone

Our rapid growth over the past decades is supported by a flexible and scalable supply chain model, investments in IT infrastructure, and continued strengthening of the organisation and business processes. It is a strategic imperative to continue to strengthen our backbone to cost-effectively support future growth.

Brick-and-mortar stores

In 2022, we continued our journey in optimising our store network and functions, and also strengthening the backbone of our business to prepare for solid future growth.

Our stores are leased to minimise upfront investments and are in high-footfall locations on high streets and in popular shopping malls. The typical size is between 150 and 250 m2 of selling space. The stores appear open and light, laid out in a maze, simple to navigate, enabling the customers to seek inspiration and discover the full range of products as they go along, while the lively and recognisable music creates a welcoming atmosphere.

The décor is Scandinavian with unpretentious, practical, wooden furniture, white walls and warm lighting that illuminate the products.

We want to offer a positive customer experience, and our store employees play an integral role creating just that. Their dedication and commitment to our concept is key for our customers’ shopping experience and the perception of our brand. We owe a great part of our success to our store employees, as they interact with thousands of customers on a daily basis. Therefore, we prioritise the development and training of our staff, as this will help us sustain a fun and inspiring customer experience.

Our markets

We have a strong presence across Europe and in Asia. In the majority of our European markets, we own and operate the business ourselves, i.e. 100% ownership.

As part of our consolidation strategy, we have over the past years increased the share of our fully owned entities, which enables us to increase the scale benefits of our organisation. Reaping these scale benefits will continue in the years to come, and over time, we strive to consolidate the markets in Europe, which are currently not fully owned.

Today the fully owned and operated entities are Denmark, Sweden, Norway, Finland, Iceland, Baltics, United Kingdom, Ireland, the Netherlands, Belgium, Poland, Italy, France, Germany, Greece, and Cyprus as well as a large part of Spain including areas around Barcelona, Madrid, Mallorca, and Valencia.

In the remaining European markets, the operation is structured through partnerships.

In Asia, Japan is a joint venture partnership whereas South Korea is run as a franchise partnership. In 2022, we entered the Middle East region with store openings in Israel, Kingdom of Saudi Arabia, and United Arab Emirates through three franchise partnerships with Fox Group, Cenomi Retail, and Azadea Group respectively. All three markets have proved incredibly successful businesses for us in terms of customer engagement and sales as well as strong cooperation with our franchisees. By the end of 2022, we had 21 stores in these new markets. During 2023, we will open additional stores in the existing Middle Eastern markets, as well as expanding in the region with openings in Kuwait, Bahrain, and Qatar. Additionally, we have big plans for Asia and our operation in that region. Therefore, we will open a regional office in Singapore late spring 2023 and later in 2023, we enter Indonesia and the Philippines with two very professional franchise partners.