Verkkokauppa.com Oyj Stock Exchange Release February 12, 2021 at 07:45 EET
Verkkokauppa.com announces its refined strategy for the period 2021–2025
Verkkokauppa.com Oyj, a pioneer of ecommerce, is refining its strategy for the period 2021–2025. With the refined strategy, Verkkokauppa.com aims for a revenue of one billion euro and a 5% EBIT margin by the end of 2025. At the same time, Verkkokauppa.com will continue its policy of distributing a quarterly growing dividend to shareholders.
Verkkokauppa.com’s vision is to remain as a pioneer of ecommerce also in the next decades through continuous innovation and development. The company’s future growth will be built on five pillars:
1. Excellent customer experience and strong brand. Verkkokauppa.com has more than 1.7 million registered customers. The company’s more than 400,000 customer reviews, over 115,000 monthly active customers, NPS score of 70 and a product return rate of only 1.0% are testimonial to the Verkkokauppa.com’s continuous investments into the best possible customer experience.
2. Efficient fulfilment. Today, Verkkokauppa.com’s delivery next day network covers already 75% of Finns. The company is continuously improving its delivery options further with stores acting as logistic hubs.
3. Superior technology backbone. Thanks to inhouse technology expertise provided by a team of skilled IT professionals, the company has an advanced technology platform on top of which to build new services and features in order to provide the best possible customer experience.
4. Extensive assortment. Verkkokauppa.com offers the widest assortment in its chosen categories in Finland. Highly transparent product information and fair pricing are important elements of company’s customer promise of “Probably always cheaper prices”.
5. Cost competitiveness. The company aims to push its fixed costs below 10% of revenue by 2025 through targeted investments into logistics, processes and automation, supply chain and product management, as well as marketing.
Road to one billion
Verkkokauppa.com is seeking growth both within its core categories as well as by expanding into new categories with attractive margin potential, especially online. Additionally, the company sees attractive growth opportunities in the B2B segment, private labelling and in value added services. The company’s aim is to double its B2B and private label business by 2025. In addition, Verkkokauppa.com is looking for potential new business and M&A opportunities, especially among local complementary ecommerce companies.
Verkkokauppa.com’s refined strategy describes the future growth path, which is primarily organic and driven by the accelerating transition from brick-and-mortar stores to online. “Our purpose is to empower customers to follow their passion,” says Panu Porkka, CEO, Verkkokauppa.com. “We are proud to be the pioneer of ecommerce and the best-known and most-visited webstore in Finland. Verkkokauppa.com is in an excellent position to benefit from the ongoing online shift. With our dedicated and entrepreneurial employees, we are now ready to execute our refined strategy and become a billion-euro business by 2025, while always delivering on our customer promise of Probably always cheaper prices.”
Jätkäsaari logistics automation investment program
As strategic initiative enabling the future growth is the Jätkäsaari logistics automation investment program. The investment will bring an upgrade to the Jätkäsaari warehouse operations, introducing a new warehouse automation system, packaging automation and a vertical conveyor system. This investment will enable future growth and create cost efficiencies as well as a better customer experience through improved product availability and faster delivery. The estimated value of the capital expenditure is approximately EUR 4 million, and it is expected to be completed by the end of 2022. The investment will make the Jätkäsaari warehouse a best-in-class, automated urban logistics hub in Helsinki.
For more information, please contact:
Tel. +358 10 309 5555
Tel. +358 50 434 2516
Verkkokauppa.com in short
Verkkokauppa.com is Finland’s most popular and most visited Finnish online retailer, with the aim to sell to products to its customer at probably always cheaper prices. Depending on the season, the Company markets, sells, and distributes some 60,000–70,000 products in 26 different main product categories through its webstore, retail stores, and network of pick-up points. The Company has four megastores: in Oulu, Pirkkala, Raisio, and Helsinki, in addition to which products can be collected at more than 3,000 pick-up points. Verkkokauppa.com was founded in 1992 and it is headquartered in Jätkäsaari, Helsinki. The Company’s shares are listed on the official list of Nasdaq Helsinki under the ticker symbol VERK.