I consider Tokmanni in Finland to be a kind of B-class Prisma for small towns, with the caveat that Tokmanni obviously cannot offer the grocery department of a hypermarket. Kärkkäinen might actually be an even closer comparison. However, the concept seems to work quite well in small towns. Regarding Sweden, the Tokmanni CEO states the following: “A broader product assortment is a key part of the reform, as it offers customers more choices, increases the average transaction value, and distinguishes Dollarstore even more clearly from its competitors. At the same time, it strengthens Dollarstore’s position as the discount retail chain offering the widest product range in its market segment in Sweden.” Since retailers like Rusta, Normal, and others in Finland seem to be targeting at least medium-sized town centers, unlike Tokmanni, what is the competitive situation like in Sweden regarding a broad product offering? Who is the new, broad-assortment Dollarstore competing with in Sweden? For example, ÖoB appears to be significantly smaller in size, and its stores are apparently concentrated in medium-sized or large centers. Does Dollarstore therefore potentially have room to grow in Sweden’s small towns, or what is the revenue growth forecast based on? Others besides the Inderes analyst are welcome to comment as well.
4 Likes