Home / Knowledge / News / Apparel/Garments / Bjorn Borg to restructure Dutch retail operations
Bjorn Borg to restructure Dutch retail operations
07
Oct '13
Björn Borg’s distributor in the Netherlands has applied for a corporate reconstruction of its retail operations in the country.

The plan is to implement a substantial reduction of the retail network, currently comprising 24 Björn Borg stores, against the backdrop of long-term weakness in the Dutch market, because of which several stores have underperformed expectations.

The distributor’s wholesale operations, which generate the large part of brand sales in the country, are managed by a separate company that is not included in the reconstruction.

“We can see that this is a result of a tough macroeconomic situation in the Netherlands, where the performance of retail possessed one of the lows among EU countries in early 2013, according to Statistics Netherlands.

"This has strongly affected local demand and hurt opportunities for our distributor’s retail operations. The wholesale operations are profitable, however, and the brand maintains a strong position in the country, even if the Dutch economy is struggling with major problems,” says Arthur Engel, CEO of Björn Borg.

Björn Borg estimates that a reconstruction of the retail network in the Netherlands, according to the current plan, will reduce annual consolidated sales by approximately 3-4 percent based on 2012 sales. Lower purchases from the Dutch distributor for its retail network affected Björn Borg’s sales as early as the second quarter of 2013. A portion of sales from closed stores could eventually be shifted to other channels, including e-commerce.

The reconstruction is expected to be completed by December 31, 2013.

About Björn Borg

The Group owns the Björn Borg trademark and its core business is underwear. It also offers sportswear and fragrances as well as footwear, luggage & bags and eyewear through licensees.

Björn Borg products are sold in around thirty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has operations at every level from branding to consumer sales in its own Björn Borg stores. In total, there are 57 Björn Borg stores, of which 17 are operated in the Group.

Bjorn Borg

Must ReadView All

Courtesy: UN Department of Public Information

Textiles | On 18th Jan 2017

World economy expanded by just 2.2% in 2016: UN

The world economy expanded by just 2.2 per cent in 2016, the slowest...

Textiles | On 18th Jan 2017

Schoeller unveils water-repelling fabric ‘bling’

Schoeller textiles, Swiss textile company, has released its new...

Textiles | On 18th Jan 2017

China lays out plan to boost foreign investment

The Government of China has outlined measures to boost foreign...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search