KAPPAHL

ELISABETH PEREGI, CEO & GROUP PRESIDENT

FACTS

KappAhl was founded in Gothenburg in 1953 and is one of the Nordic region’s leading fashion chains, with around 360 stores under the KappAhl and Newbie Store brands in Sweden, Norway, Finland, Poland and the England, as well as Shop Online in Denmark. The KappAhl business concept is to offer affordable and responsible fashion in a simple and inspiring way. 75 per cent of the company’s products are now made of more sustainable materials.

KappAhl has been part of Mellby Gård since 2013 (wholly owned subsidiary since 2019). Mellby Gård’s representatives on the Board of Directors are Thomas Gustafsson (Chairman) and Sven Knutsson.

  • Headquarters: Mölndal
  • Sales 2021: SEK 4,665 million
  • Employees (FTE): 3,780
  • Chairman: Thomas Gustafsson

www.kappahl.com

KAPPAHL’S 2021

“WE CAN COMBINE GROWTH AND SUSTAINABILITY”

2021 was both successful and eventful for Kappahl. Sales and earnings grew strongly, and Kappahl rolled out strategic projects and launched new brands to ensure growth would continue across the Group.

“The Kappahl brand was reinforced during the pandemic as we managed to cope with lots of challenges in 2021, with positive outcomes. Kappahl now has even more loyal customers, and we managed to engage with them in a variety of channels while successfully managing our costs.”

If 2020 was a year in which Kappahl dealt with the challenges of the pandemic and planned for increased growth, 2021 was the year in which the company successfully made the transition from words to action. A number of strategic projects were launched and significant investments were made in order to reinforce and develop the brand and prepare for sales in more markets and channels. 2021 was also the year in which a climate strategy was devised that’s realistic in commercial terms and firmly rooted in the ambitious plan for growth. Turnover rose to SEK 4,665 million and profit more than doubled compared with the previous year.

“We’ve demonstrated great drive and commitment throughout the company and implemented Kappahl’s new brand strategy and our higher purpose: celebrating diversity in everyday life. We’ve also strengthened our values and clarified our business concept – affordable and responsible fashion to our customers in a simple yet inspiring way.”

CLIMATE STRATEGY ROOTED IN GROWTH PLAN

In 2021, Kappahl devised a climate strategy based on the Paris Agreement which is rooted in the company’s ambitious growth plan: to shift to a sustainable business model. Its aim is to halve its absolute footprint across the entire value chain by 2030, from supplier to customer.

“We can combine growth and sustainability. To achieve this, we have to take responsibility for our entire carbon footprint, from design to production and, eventually, the user phase. We have to make it easy for our customers to adopt a more sustainable approach and ensure long life for their clothing.”

MAJOR INVESTMENT IN DIGITAL TRANSFORMATION

During the year, Kappahl decided to invest SEK 200 million in a comprehensive digital transformation. This investment includes a new business system with integrated cash register and payment solutions, as well as customer databases for both physical and digital stores in different markets.

“If we’re to get Kappahl ready for growth, we have to replace systems and have a system solution that allows all elements to communicate. This is absolutely crucial for scalable and efficient growth.”

NEW GRAPHIC IDENTITY AND NEW BRANDS

A new visual identity was devised for Kappahl so as to highlight the rollout of the new brand strategy. The aim of all this is to move the fashion chain’s position towards an even more value-based brand where the visual identity is a vital signal. The new identity includes an updated logo and a complementary communication concept that will be launched in 2022.

The Minories brand for children was launched in early 2021. The fashion chain already owns the Kappahl, kay/day, Newbie and XLNT brands.

“We’ll continue to grow, and we perceive major potential in reinforcing the brands held by the Group. They’re all at different stages of development, and they’ll eventually be meeting their respective customers also outside Kappahl as well, with their own channels, in the same way that Newbie does today”.

GROWTH IN NEW MARKETS AND CHANNELS

The Kappahl Group currently sells products in its own stores in Sweden, Norway, Finland, Denmark, Poland and England, and its ambition is to launch its brands in more markets and new channels. This includes the Group’s own stores and channels, as well as enabling sales on other platforms. The Group will also be working to optimise its store network and create some exciting new shopping experiences.

“We need to go on looking at each individual store on the basis of local market conditions, location and size. Customers are very interested in continuing to shop both in physical stores and online. The fashion chain has developed some exciting new customer experiences both in-store and online. Liveshopping has been popular during the pandemic, and this concept offers major potential for the future. Members of the Kappahl customer club are also offered free advice and personal shopping online.”

Selected parts of the Newbie range can now be rented via the Hyber rental service. Kappahl Woman and kay/day also offer clothing subscriptions via the Hack Your Closet service. Kappahl has to keep

SIGNIFICANT EVENTS 2021

Strong sales and earnings growth.

Embarked upon a Group-wide journey of digitalisation.

New visual identity, including an updated logo.