Danish furniture chain Jysk has had another strong year of growth, reaching a record profit of 600 million euros and a sales increase by 11 %. However, the first signs of a slowdown are emerging.
135 new stores
The 2021/22 financial year (which for Jysk is September to August) was another success for the Danish chain, with sales rising as much as 11 % to 36.2 billion Danish kroner (4.9 billion euros). Despite rising costs, the company still managed to increase its profit figure – albeit only slightly – from 4.54 to 4.56 billion Danish kroner (600 million euros).
That growth is mainly comes from the chain’s strong expansion: although 86 shops in Ukraine closed temporarily and 30 shops in Russia and Belarus even closed permanently, the chain opened a total of 135 new shops across Europe. Jysk is also rolling out a revamped shop concept.
Sales start to slow
That does not mean the future is looking as bright for the Danes: the chain is now seeing the first signs of the expected slowdown in sales since the summer months. As customer purchasing power is under pressure, they have to choose where to spend their money. CEO Jan Bøgh therefore expects to see that slowdown negatively impact his company’s results for the current financial year.
Next spring, the chain will expand to Turkey. Bøgh has considered to should postpone his plans, but says that would not be in the spirit of Jysk. He does expect it to be difficult, though, mentioning a lack of materials and staff in particular.