Page 4 - #181 May 2023

WHO’S RLI MEETS

WHO
IN RETAIL

Mikkel Grene

CEO - SØSTRENE GRENE

What are the company’s key objectives for the next 12-18 the recent years, we have developed a new store concept ‘Retail for the
months? Senses’ which will be a solution to some of these challenges and may also
After a period of fairly low growth during Covid-19, we are now getting increase the time spent in the store as we invite the customers for an even
back on the growth track. We have gotten off to a great start in the UK more wonderful shopping experience that touches all senses.
and our plan is to expand Anna and Clara’s wonderful world in this market
with more physical stores in the years to come. In the coming months we What do you make of social media and its importance in the
will also honour our obligation to help our customers in these difficult world of retail and how prominent is e-commerce and online
times with inflation and financial instability. We do not wish to let the activities within the business?
prices increase as much for the end-customer as the prices do for us It would be a big mistake to count social media out as it continues to
and our suppliers. That is why we will absorb most of the price increases play a predominant role in our dialogue with customers. We see new
from our suppliers instead of sending them forward to our customers. social media emerging which are becoming very strong so we might need
Naturally, it will affect our margin negatively, but we want to lend them a to consider additional platforms. That being said, we want to own our
helping hand in a difficult time. customer data ourselves where we previously delegated this task to tech
giants because we did not have the tools to handle it ourselves. Even
Would you say events around the world in the last few years though e-commerce represents a fairly small part of the total turnover,
have affected the business at all and has it had any effects on one should not underestimate the importance of showcasing your
future plans? products online. We see many customers starting the customer journey
Yes - our customers are affected by the ongoing crisis and we see online and finishing it in the physical stores. Without our e-commerce
that they buy less products. On the other hand, we see an increase in business we would not have digitalised our products to the same extent.
footfall and we believe that we have a place in the market to attract more
customers who are looking for products with lower price points. The past Taking a step back from right now, what would you consider
months we have also seen an increase in our like-for-like turnover. your career highlights to date to be?
Without any doubt it’s been to see talents bloom and employees
What key leadership skills do you feel are the most important develop in Søstrene Grene. We have a fantastic organisation and I’m very
in the current retail climate? proud of all our Sisters. The culture of the Sister Spirit is thriving across
In a dramatically changing world, we must be agile and able to adapt markets, stores and offices. It’s amazing to travel to a city where you have
to new market conditions very quickly. Changes have always been a never been to visit a store there which just has that special Søstrene Grene
condition for leaders to deal with – but they are happening at a much atmosphere. It makes me proud to see that the Wonderful world of Anna
faster pace. We should prepare our organisation to be open for and and Clara has proven to be so international and strong that it actually
curious about changes – and be able to communicate what opportunities works out in 16 different countries without any changes.
they may provide us with. So that we embrace changes instead of being
afraid of them. With everything that has happened in recent times, how are
you feeling about the 12-18 months that lie ahead?
As a leader who makes key strategic decisions, do you Although everything seems to be positive now, I think it is too early to
prefer to rely on facts and figures, your natural instinct, or a say that we are past the crisis. It’s very important as a retailer to move
combination of the two? closer to the customers and to understand the reality they are facing – and
I would say its’s a combination of the two for me. I follow the figures to adapt your communication and assortment to their new reality.
every day – but I also highly depend on my gut feeling, when the data
does not show me where to go or what to do looking forward. But more If we look at the retail industry as a whole, do you have any
importantly: as we all need the facts and figures I think it is important to words of warning for the industry or advice from your own
understand that they do not motivate people when they stand alone. So experiences?
we also need to be able to bring them into a narrative of where we are We should not expect everything to be back to normal once the crisis is
heading and sometimes it is even more important to communicate your over. There are always winners and losers of a crisis and there is always a
feelings of passion and dedication because let´s be honest – sometimes new reality after a crisis. Instead of just seeking cover waiting for things to
you do not know how the business case looks like in figures – your instinct “go back to normal”, we as retailers should try to understand the changes
just tells you that it is an area where you need to invest more and have we are facing and how we can adapt our business accordingly. In that way
more focus to follow the market and the customers. we will be stronger once the crisis is over.
Do you feel that CEOs and company leaders can continue to Lastly, any final thoughts or anything else you would like to add
be transformational in the new retail landscape and will this for our readers?
actually be more important than ever now? I believe in a bright future for the retail business - if you have the
Yes, I believe they can and they must because even though the physical courage to embrace the future changes while at the same time holding
stores came back strong after Covid-19, we must be careful to conclude on to yourself and your values – and if you manage to transform your
that the challenges related to the traditional retail business have been business according to a new reality. You should not be afraid to change
solved. We are still facing fundamental challenges in creating an attractive what is but at the same time you should hold on to what you stand for as
alternative to online shopping by providing the customers with meaningful a company and never compromise on your beliefs and your values. Even
and attractive experiences in the physical stores. In Søstrene Grene, though we talk a lot about crises and digital transformation now, we must
we have gone through a very successful digital transformation the past also remember that the biggest transformation we will face in the years to
years, but this transformation will continue in the years to come. Over come may very well be the entire ESG agenda.

04 RETAIL & LEISURE INTERNATIONAL MAY 2023