5/18/2010 1:00 AM EST
The two Swedish furniture chains Svenska Hem and Möbelmästarna has together entered into a partnership with the Danish furniture chains Dan-Bo and Smag & Behag. Together they will reach a total turnover of around 300 million Euros and over 120 member stores. This will strengthen the independent chains’ position on the market with the objective of giving the individual stores benefits, mainly within purchases and logistics.
Svenska Hem and Möbelmästarna started their cooperation at the end of 2008. The cooperation includes joint purchases to a warehouse in Jönköping/Sweden and solutions within administration and ERP system. At around the same time Dan-Bo and Smag & Behag started their cooperation by forming a jointly owned company, In2house, handling all chain activities.
All four parties have seen clear benefits of its partnerships in each market. Expanding a strategic cooperation, now across boarders, will contribute to even more benefits for all chains.
Cooperation creates competitive advantages
Many players in the home furnishings industry means a tough competition in the market. Cooperation provides the opportunity to improve margins for individual stores, while attractive prices can be held towards consumers.
The partnership that has started between the four chains is mainly focused on joint purchases and contracts, along with efficiency improvements in...