Despite a number of special challenges, JYSK found the recipe for success and ended up with an increase in earnings of 15 percent in the financial year 2019/20.
Today, 26 November 2020, CEO & President of JYSK, Jan Bøgh, can present the result for the first year during which JYSK has been run as one entity after the merger of JYSK Nordic and DÄNISCHES BETTENLAGER, which came into effect on 1 September 2019.
And with a record turnover of 4.1 billion EUR and record earnings of 489 million EUR before taxes, Jan Bøgh is very satisfied.
“First of all I would like to thank all of our employees. They have done a great job in a difficult period with a lot of changes internally in our company as well as the external challenges caused by coronavirus,” says Jan Bøgh.
Invest in the future
Like all other companies, JYSK has faced many issues caused by the effects of coronavirus, and the fact that the company had more than 2,000 stores forced closed as a result of governmental restrictions.
However, for Jan Bøgh it is more important to focus on the factors, which JYSK is able to influence.
“Like most companies, we are challenged by the effects of coronavirus. Of course the first priority is to ensure the safety of our customers and employees. But it is also important that coronavirus does not take up more of our resources than necessary. We are here for the long run, which means that we have to keep investing in the future and be ready for a time when coronavirus is no longer the centre of attention in society,” says Jan Bøgh.
Strong business model
He points out that the challenges during the last financial year have made it clear that JYSK’s business model is strong.
Both concerning the small store concept and in regards to combining central concepts with strong local country head offices, this means that JYSK can quickly adapt to both global and local changes.
“I believe it is fair to say that we have really seen the strength of our business model in the last financial year. Not only in terms of utilising our strong local organisations. It also concerns our ability to control flow of goods under very unpredictable circumstances and to convert customers and employees to click & collect and to our online sales channels to keep up sales, even while most of our stores were closed,” says Jan Bøgh.
In his opinion, the last financial year highlighted the advantage of operating both physical stores and a variety of online opportunities, and JYSK expects to open more than 150 stores during the current financial year.
That was not the case in the last financial year, and according to Jan Bøgh the negative side to the great result was the lack of investment caused by coronavirus.
“It was simply not possible to carry out all of our planned store activities, which has a positive economic effect on the last financial year, because we saved money. But it also means that we did not invest as much in our physical stores as planned. This makes it even more important to ensure that we invest as much as possible during the current financial year,” says Jan Bøgh.
Another topic that is becoming even more important for JYSK is the company’s efforts to become more sustainable.
“JYSK has always been focused on doing business in a responsible way. But it is something that has become much more important in recent years. During the last financial year, we took some important steps, which includes new and more sustainable packaging design, we set a date for our transition to 100 percent FSC-certified wood, we introduced a number of additional products made from recycled materials, and we became a member of BCI (Better Cotton Initiative). However, we need to continue the journey to become even more sustainable,” says Jan Bøgh.