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KAPPAHL

  Investments in growth

      delivering results

   Kappahl Group has a clear growth strategy, and the investments the
company has made in branding and transformation are delivering good
results. Kappahl managed to increase sales and boost their margin while

             launching a brand-new e-commerce platform in 2024.

In 2024 the Kappahl brand continued to strengthen its position                     Traceability allows us to help
      in the market. Kappahl increased its attractiveness and with a                 achieve a more socially and
      range offering a higher degree of fashion, the company is deliver-            environmentally sustainable
ing on its customer promise: “Fashion fit for life”.                                        world of fashion

  “We’re a well-known and well-established fashion company with an         DRIVING THE INDUSTRY FORWARD
offering that attracts a lot of customers,” says Elisabeth Peregi, CEO     Kappahl was among the first companies in the fashion industry
of Kappahl Group. “The way we’ve developed our range and tone has          to switch to a more sustainable business model that aims to take
been well received by our customers.”                                      responsibility for the entire value chain. Part of this work is to
                                                                           ensure transparency and traceability through all supply chains. The
INVESTING IN MORE STORES AND CHANNELS                                      TrusTrace tool allows Kappahl to trace each individual garment, all
In 2024 Kappahl Group opened several new stores for the first time         the way from the cotton field to the customer.
in years. The company doubled its presence in the UK, and there
are now seven stores there with the Newbie brand. In addition to             “In the long run, all textile producers operating in Europe will need
this, Kappahl gave most of its store network a makeover, with new          to offer this, and we consider being the first to do so to be a major
inspiring interiors, fitting rooms and checkouts in line with Kappahl’s    advantage,” says Elisabeth Peregi. “We integrated all our suppliers
new service pledges that were launched during the year.                    into the TrusTrace system in 2024.”

  “Our new service pledge delivered fantastic results in our customer         Digital Product Passports (DPPs) will also be mandatory for
interactions,” says Elisabeth Peregi. “Today, all our stores are profita-  textiles in the EU by 2030. Kappahl initiated a pilot project during
ble. We now also offer customers the chance to hand in used clothing       the year with Trace4Value, with practical tests of the passports
to be sold second-hand in over 50 stores.”                                 now underway. They will contain sustainability data on materials,
                                                                           manufacturing and how the garment can be reused to enable a
   In parallel with the store initiatives, the Kappahl Group invested in   circular economy. By scanning a code, Kappahl customers will not
a new scalable e-commerce platform to enable it to gradually grow in       only know where their garments come from, but also what impact
new markets.                                                               they have on the climate and how they can be reused and recycled.

      Our new service pledge delivered                                       “Traceability allows us to help achieve a more socially and environ-
      fantastic results in our customer                                    mentally sustainable world of fashion,” says Elisabeth Peregi. “And it
      interactions. Today, all our stores                                  also has a positive impact on business.”

                    are profitable                                         FUTURE-PROOFING GROWTH
                                                                           Kappahl Group decided in 2024 to invest in a new global distribution
                                                                           center near Gothenburg’s container port, the aim being to future-
                                                                           proof delivery and logistics to ensure continued growth.

                                                                             “We’ll scale up what we’re doing today and do it more efficiently,”
                                                                           says Elisabeth Peregi. “We’ll be handling larger volumes with a higher
                                                                           degree of automation and flexibility.”

                                                                              Work is currently underway to adapt the premises of the new
                                                                           center, which is expected to be completed in 2026.

                                                                           Elisabeth Peregi,
                                                                                            CEO

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