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KAPPAHL GROUP
Kappahl Group building
for the future
After several years of substantial investments, Kappahl Group is now able
to look to the future. Two strong and popular brands combined with new
business systems and automated warehouse management lay the foundations
for profitable and sustainable growth in new markets and channels.
With its two strong brands, Kappahl Group is continuing
to grow, primarily internationally. The children’s and
women’s clothing brand Newbie in particular is driving
growth in new markets such as Germany, where it has its own
e-commerce sales, and the UK, with Newbie doubling the number of
stores in 2025.
“We can clearly see that Newbie’s inspirational stores are driving our garments are made with due care, both for the people working in
online business, while our customers can now shop at both Newbie
and Kappahl on the Zalando e-commerce platform,” says Elisabeth
Peregi, CEO of Kappahl Group.
As far as the Kappahl brand is concerned, Kappahl Group is
experiencing greater interest in the fashion chain from all age groups.
The brand has made a significant shift, with the range now perceived
as being more inspiring, with a higher degree of fashion, to a more
distinct target audience.
A RESPONSIBLE WORLD OF FASHION
Ever since Kappahl was founded in the 1950s, it has been important
to the company to create a responsible world of fashion. The
company is now focusing on a more circular business. Customers can
drop off clothes to be sold second-hand at almost 100 stores. The
concept has become so popular that Kappahl Group needs more
items, as they often sell out. With the new reCRQL service, customers
can also circulate Kappahl and Newbie garments directly with each­
other online.
“The biggest contribution you can make to the sustainability of your
garments is to wear them for longer and make sure they’re reused,
either by selling them on or giving them away,” says Elisabeth Peregi.
In 2025, Kappahl Group also decided to stop manufacturing ripped
or distressed jeans, a fashion that involves making new garments and
then deliberately destroying them. Elisabeth Peregi explains:
“Ripping up new jeans is not aligned with our respect for the value
of the garments!”
The investments we’re making
are building the future of
Kappahl Group. It’s like a heart-
lung transplant
Kappahl Group sells a lot of denim. It consists of certified or
licensed organic cotton, or certified recycled raw material, which is
fully traceable throughout the supply chain.
“Traceability is at the heart of working sustainably,” says Elisabeth
Peregi. “How else are you supposed to know where your garments
come from? Transparency in the value chain ensures that our
manufacturing and for the climate.”
Transparency in the value chain
ensures our garments are made
with due care
GROWING NATURALLY BY INVESTING IN THE FUTURE
In recent years, Kappahl Group has invested heavily in building an
infrastructure for the future. New POS and CRM systems and e-com-
merce platforms have been put in place, and a new business system
was recently introduced to make up-scaling more efficient.
“The investments we’re making are building the future of Kappahl
Group,” explains Elisabeth Peregi. “The business system and
e-commerce platform will enable us to include more countries and
partners, and eventually more brands.
It’s like a heart-lung transplant.”
The construction of a new automated global distribution centre has
been completed at the Port of Gothenburg. Testing and adjustments
of the technical and mechanical solutions are now underway ahead of
the grand opening in mid-2026.
“The new warehouse is the single biggest investment in the
company’s history,” says Elisabeth Peregi. “With new, efficient
systems and the warehouse up and running next year, we expect
greater flexibility and higher volumes – as well as increased sales.”
Elisabeth Peregi,
CEO
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