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Given the global economic turbulence and the unstable geopolitical situation, how do you plan to adjust JYSK's strategy for 2025?
Financial year 2025, which started at JYSK on September 1, marks the completion of our five-year strategy "Seamless and Closer to the Customer." This year, we have developed the existing strategy even further to emphasize our commitment to sustainability and set the foundation for a new strategy that will be presented at the beginning of the next financial year.
During this year, JYSK is focusing on several key areas on a global level: effective cost management, the presentation of an improved sustainability strategy, an additional emphasis on our premium offers and continuous investment in the development and empowerment of all employees. After the successful opening of a distribution center in Hungary, which supplies Croatia and the region, we recently began the construction of a new distribution center in Lelystad, near Amsterdam, which represents an important step for our distribution team.
Despite the instabilities in the global market during the past year, JYSK has further reduced prices on more than half of its range and expanded a special category of products labeled "Permanently Low Price". This approach led to an 11 percent increase in sales in the number of pieces sold, which further strengthened our position among customers.
As expansion is part of our DNA, we continue with the process of giving our existing stores a “makeover”, which has resulted in an airy, modern and inspiring interior design that has provided our customers with a new shopping experience. Our objective is to maintain profitability while expanding our business outside of Europe, as well as in existing European markets, so as to achieve our long-term goal of 5,000 stores worldwide.
At the local level, we have just celebrated 15 years of successful business in Croatia and we are looking forward to the opening of five more stores by the end of this financial year, which will further strengthen our presence and accessibility to customers throughout Croatia.
How does JYSK use digitalization and retail innovation to improve customer experience and operational efficiency?
In recent years, JYSK has invested heavily in digitalization in order to improve user experience, optimize business processes and increase operational efficiency. This process encompasses all aspects of the business, from logistics chain optimization to digital tools for store employees, as well as online experiences for customers.
I would also single out the digitization of the points of sales themselves. In JYSK stores, there are more and more digital tools for employees, such as tablets, mobile devices and headsets, which enable quick stock checks, product information and real-time availability. This helps employees respond more quickly to customer needs and offer precise information. On the other hand, continuous work is being done to improve the e-commerce platform and webshop, including the integration of better search tools, faster navigation and personalization of recommendations during selection. The platform is frequently upgraded to make the shopping process easier for customers and allow them to find and order products easily from a wide range of products. The most recognized by customers is our Click&Collect service, which allows customers to order products through our website and then pick them up at the selected store, without additional delivery fees, in just 30 minutes. JYSK also uses digital platforms for its training and employee development, facilitating access to educational content, career plans and internal communications.
Sustainability is becoming an increasingly important agenda for retail businesses. What are your key sustainability plans and initiatives for the coming year?
At JYSK, we believe that sustainability should be accessible to everyone. It is a key part of our commitment to customers, employees and the planet. We want to make sustainability accessible and affordable, and we recently unveiled the new Sustainability Strategy – A Great Offer For Generations. Our strategy is focused on the areas that will have the greatest impact on our business.
The strategy consists of five areas in which JYSK sees the greatest impacts, risks and opportunities. The five defined areas are: climate action, responsible value chain, products of verified quality, an attractive and inclusive workplace as well as data transparency.
I’m pleased to confirm that JYSK has received approval for its defined targets to reduce greenhouse gas emissions from the international initiative "Science Based Targets", which brings together more than four thousand companies that have committed to reduce greenhouse gas emissions in accordance with the goals of the Paris Agreement and the latest scientific knowledge about the climate. With approved SBTi targets aimed at reducing emissions in product manufacturing, JYSK has a clear plan to reduce its impact on the climate.
93 percent of JYSK's total greenhouse gas emissions come from products, goods and services purchased from suppliers. As part of the approved SBTi targets, JYSK will require suppliers to calculate their own emissions and have their targets approved by the SBTi before the end of financial year 2028. This will be followed by implementation.
What do you think sets you apart as an employer compared to other players on the market?
JYSK is a Danish company that bases its corporate culture on Scandinavian values, trust, independence, personal responsibility and an obligation to communicate honestly and openly. These values are lived at JYSK every day at all organizational levels, from managerial positions to store employees. For us, it reflects not only our corporate values but also our lifestyle. We openly discuss not only plans, goals and nice things, but also our development areas, challenges and how to become better. When you work in this way, you also develop a very open and honest relationship full of trust with your colleagues.
Talents and personality are valued here, and we are also proud of our CSR projects. Thus, for example, through the "JYSK For My Green City" project, which is aimed at encouraging socializing and developing environmental awareness, employees have the opportunity to bring about 'green' changes to their local communities and receive an extra day off at the same time. We also recently presented JYSK's first public urban orchard in Croatia. The hobbies and talents of our employees are also encouraged, so they have the opportunity to participate as a team in the Wings for Life, Ultra Balaton or Ekotlon races.
We can also boast of having an equal representation of men and women among our employees and in management positions. As many as 59 percent of JYSK store managers are women, while their share in managerial positions is 43 percent.
All this resulted in a high level of employee satisfaction. Namely, 92 percent of employees at JYSK in Croatia greatly appreciate the opportunities for learning and development that are provided within the company, the same proportion of employees appreciates that everyone has equal opportunities for advancement within the company, while even 90 percent of employees would recommend others to work in the company in which they themselves work for.
JYSK has set ambitious targets to reduce carbon emissions by 50 percent. Can you tell us some actual steps that JYSK plans to take to achieve this goal?
Although JYSK's greenhouse gas emissions within its own operations cover less than 2 percent of the company's total emissions, we will work to reduce that part as well. Starting from financial year 2022, JYSK aims to achieve an absolute CO2 reduction of 50.4 percent by the end of financial year 2032.
In the coming years, we will look for solutions to reduce emissions that include powering, heating and cooling our stores, distribution centers and offices, as well as reducing emissions from company-owned vehicles. We know it's a small percentage, but it's still important work that definitely needs to be done.
On a local level, JYSK also presented the first report on corporate social responsibility in Croatia this year, with an emphasis on activities that had a positive impact on the environment and society.
How do you see the long-term impact of a significant increase in wages and bonuses on employee satisfaction and the strengthening of JYSK as an attractive employer in the region? How do you plan to continue improving the working conditions and motivation of employees?
Key achievements include investments in people through income growth, which last year in Croatia was over 20 percent, the payment of incentive bonuses and over 600 hours of training and education. However, as we know, salary is not the main and only driver of business migration, but the high motivation of employees and the feeling that they are contributing to jointly set goals. Being proud of your work, working in a motivating environment and having a healthy balance between private and business life are the main determinants of satisfied employees. Precisely for this reason, this year we put a special focus on reaching their full potential within the Wellbeing project - JYSK life club, through which a series of education and initiatives related to physical and mental health is carried out.
