Page 44 - MELLBY_MAGASIN_2023_ENG_LOW_UPPSLAG

KAPPAHL
For over 70 years, Kappahl has offered affordable fashion for
the many, and the company’s commitment to sustainability
extends beyond the latest trends. Sustainability stands for
both responsibility and the power of innovation and is in itself a value
anchored in Kappahl’s culture and strategy.
“We’ve made significant investments in the transformation process
that will take us towards a sustainable business model,” says Elisabeth
Peregi, CEO of Kappahl.
PROFITABILITY AND SUSTAINABILITY GO HAND IN HAND
Kappahl is convinced that profitability and sustainability go hand in
hand and has chosen to take responsibility for the entire value chain:
design, manufacturing and distribution. The new business system is
therefore designed to also explore and scale up sustainable solutions
for all parts of the supply chain.
The TrusTrace digital tool enables traceability and measurability
throughout the supply chain, meaning that Kappahl keeps track of
each individual garment’s life cycle, all the way from the cotton field to
the local store for the millions of garments sold each year.
“During the year, we started to introduce traceability for our products
and now offer full traceability in our jeans range,” says Elisabeth Peregi.
“Customers can now see where the cotton is grown, the yarn spun and
the trousers sewn.”
With new tools and systems in place, Kappahl is well placed to link
up with selected suppliers and make more informed decisions based
on data rather than assumptions.
“This is a huge investment for us,” says Elisabeth Peregi. “It affects
how we deal with our suppliers and adapt to new legislation. We’re
convinced that transparency at all levels strengthens Kappahl’s
credibility and brand.”
STRONG BRANDS WITH POTENTIAL
The Kappahl brand currently serves as an umbrella for several brands
(Kaxs, kay/day, Minories and Xlnt), while the Newbie brand has been a
separate business unit since 1 June.
“Newbie has online sales in over 20 markets and its own stores in
Sweden, Norway, Finland, Poland and the UK,” says Elisabeth Peregi.
“We really believe in the brand and have tasked the new CEO Thomas
Kusoffsky with optimising its underlying potential through expansion.”
The plan is to expand Newbie’s online sales into additional markets
in Europe in 2024. In parallel, Kappahl plans to continue remodeling,
open new stores and establish itself in new channels.
44
IN-STORE AND ONLINE INITIATIVES
Traditionally, Kappahl has mainly operated through its own sales
channels, either physical stores or its own e-commerce. Today,
Kappahl has 355 stores of its own, which are the hub of the business
and account for 85 percent of sales.
“We like customers to come to the store, and to keep them happy we
have to constantly work on upgrading the store experience,” explains
Elisabeth Peregi.
Something new this year is that Kappahl is testing second-hand
sales of children’s clothing in selected stores in Sweden and Norway,
the aim being to drive development towards more sustainable
consumption and circular business.
“Clothes really shouldn’t end up in the trash!” says Elisabeth Peregi.
“That’s why we need to offer simple alternatives such as repair or reuse
to extend the life of the garments.”
By investing in a new e-commerce platform, the company will also
be able to more effectively scale up its online sales – in both its own
and other channels.
“We’ll soon have a stable system solution with the new e-commerce
platform,” says Elisabeth Peregi. “This allows us to have more of a local
presence in the countries in which we operate.”
SALES STRONGER THAN EXPECTED
The year began with relatively low expectations and a great deal of
caution. Where customers’ wallets were concerned, the company
expected both inflation and the energy crisis to have a dampening
effect on consumption. Kappahl decided to review its cost base to
prepare for lower sales. But the year’s outcome was surprisingly
positive.
“Sales have grown more than we could have anticipated,” says
Elisabeth Peregi. “Our brand stands for sustainable clothing at
reasonable prices, and that’s a combination that always works.”
Kappahl’s initiatives and successes have not gone unnoticed by
the industry either. In October, the company won a prestigious Market
Award in the clothing and fashion category. The Market Awards are
presented by Market magazine to the top companies in the ten largest
retail sectors.
“We want to offer responsible and affordable fashion that suits our
customers’ everyday lives, whatever they’re like,” says Elisabeth Peregi.
“Receiving the award for Fashion Company of the Year makes us very
proud!”
Elisabeth Peregi, CEO