With a growth of 11 percent, the total turnover for the financial year 2021/22 sets a new record in JYSK, even though a long list of global factors have challenged the business.
Like many other companies, global factors have also challenged JYSK in the financial year 2021/22, which was just closed by the end of August.
In spite of the challenges, customers continue to choose shopping in one of JYSK’s more than 3,200 stores covering 48 countries across the world. JYSK’s webshops have also received many visits.
In total, the turnover in JYSK has grown by 11 percent and ended at DKK 36.2 billion. An increase that Jan Bøgh, President & CEO in JYSK, is happy with.
”With a very special year behind us, we have delivered a good result on turnover. Our dedicated employees are especially the cause of this, and we are also happy that our customers still think that JYSK has a great offer for them. That has not become less relevant in a world where people really need to prioritise what to spend their money on,” he says.
More customers in stores
Especially during the summer, JYSK’s business has come under pressure, as smaller purchases and fewer customers have an impact due to the rising inflation. All in all, the number of customers has nonetheless grown by 7.7 million.
”We are clearly experiencing that consumers have started to hold back a little. The growth in both turnover and number of customers was larger before summer. A part of the extra customers are also returning customers from before the coronavirus crisis with many temporarily closed stores, so they are not all new customers. On top of that, our costs are rising, so it is safe to say that the global situation is affecting us,” says Jan Bøgh.
During the financial year, JYSK extraordinarily had to permanently close a total of 30 stores in Russia, Belarus and Ukraine.
Continued investments in the future
Despite the many challenges, JYSK is not planning to decrease investments.
”We will continue our investments in the business at an unchanged level, because growth is a part of our DNA. We are about halfway done with the rearrangements of our existing stores to the newest and successful store concept, and we have opened 135 new stores in the past year. Both things are positively received by customers, and that increases our sales,” explains Jan Bøgh.
Belief in strong business model
Jan Bøgh is nonetheless optimistic about the future, even though the big crystal ball to predict the future has by now been placed on the shelf.
“We are living in an uncertain world, so after the lockdowns and a new war in Europe, I have stopped predicting too much about what is going to happen. However, we believe that we have a strong business model, and we have previously done well during financial crisis and cautious consumers. I am convinced we can do so again,” he says.
On Thursday 24 November, JYSK will publish their annual report, in which the development in earnings will also appear.