“Integration primarily refers to products, but to logistics as well,” said Lars Lund.
The company announced it launched new collections, which, doubled by the price cuts operated since November 2013, together with changes to the promotion campaign, should drive sales up by 15% this year.
According to the latest data available, in 2012 kika generated revenue of above EUR10 million. For 2013, kika head announced flat sales.
kika boss explained the integration process will not unfold along the same pattern in all the countries, but will be adapted to each market.
Lars Lund announced some changes were operated inside the store, with the space being adapted to the new collections. Changes were also embraced in terms of company promotion.
The first step was to give up flier distribution. Now, fliers are sent electronically to potential clients. Sums spent on flier distribution were redirected to TV promotion campaigns. He chose not to specify the value of the total budget kika earmarks for promotion, only saying it is similar with last year’s.
Changes embraced by the company since November brought a 20% increase in the number of visitors. At the level of kika store, the value of the average cash receipt stands at EUR114. Overall, kika sells 21,000 items annually and integration in Steinhoff group brought 1,200 new items, while another 600 were given up.
Steinhoff group will not change the kika brand and for the moment expansion in Romania is put on hold.
(English version by Catalina Apostoiu)