BHG continues to consolidate and simplify the structure to improve profitability and competitiveness
December 21, 2023 at 11:31 am EST
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During 2023 BHG Group has implemented a number of structural changes to build a more scalable, efficient, and flexible business. The goal is to have fewer platforms, an increased customer focus and have better opportunities to grow internationally with the Nordics as a base.
Consolidation is ongoing in all three of BHG's segments and we now implement three clear efficiency improvements that are a result of that work.
Our Danish operation Frishop.dk (Frishop) which is run by Camola ApS is consolidated into our existing platform HYMA Skog & Trädgård AB with the sites hylte-lantman.com, duab.se, maskinklippet.se and dogger.se (HYMA). Frishop is integrated into HYMA's existing infrastructure for, among other things, warehouse management in Falkenberg and IT systems. Frishop remains an important sales channel to the Danish market, but will benefit from a strong infrastructure in HYMA.
Lindström & Sondén AB operating for example the sites vinkylen.se and myoutdoorkitchen.se (L&S) consolidates its warehouse structure and integrates its warehouse with Hafa Brand Group AB in Halmstad. As a consequence we leave the warehouse in Klippan and get a more cost-effective logistics.
The inventory in ARC E-commerce AB, with the site outl1.se, has during the year been reduced to the point where its two warehouses in the south of Stockholm can be consolidated into one.
With the actions taken BHG will strengthen its long-term offering, and also reduce costs for rents and personnel. In total, these actions will reduce cost by approximately SEK 30 million on an annual basis in 2024, mainly attributable to depreciation of leased assets and personnel costs. The total cost of the above measures amounts to SEK 69 million. All costs will be attributed to the fourth quarter.
"We work with a combination of structural measures and ongoing consolidations to reduce the number of platforms to make BHG more competitive and profitable. With fewer and scalable platforms, we gain greater flexibility and become better at meeting customer needs. This work continues, and the actions we now take in Frishop, L&S and ARC E-commerce are in line with our strategy and important steps towards the structure we want at BHG" says BHG Group CEO Gustaf Öhrn.
BHG Group AB, formerly Bygghemma Group First AB, is a Sweden-based online provider of home improvement products. The Companyâs operations comprise two segments: DIY and Home furnishing. The DIY segment includes do it yourself products for home and garden improvement. It comprises such online stores as bygghemma.se, netrauta.fi, taloon.com, frishop.dk, badshop.se, talotarvike.com, stonefactory.se, golvpoolen.se, lindstromsbad.se, vitvaruexperten.se, tvexperten.se, among others, as well as showrooms. The Home furnishing segment sells furniture and decor. It includes such online stores as trademax.se, chilli.se, kodin.fi, furniturebox.se, myhomemobler.dk and wegot.se, among others, as well as showrooms. The Company operates in Sweden, Finland, Norway and Denmark.
BHG GROUP AB 
