As expected, the 2020 Annual Result is affected by COVID-19
Flying Tiger Copenhagen was hit hard by the COVID-19 pandemic: Ecommerce, new franchise partnerships and inspiring and sustainable products will ensure future growth.
Today, Flying Tiger Copenhagen releases its 2020 Annual Report, which - as expected - is highly affected by COVID-19. The pandemic hit just as Flying Tiger Copenhagen was coming out strong of a transformation and consolidation process. Now, 2020 is in the past and the company has its eyes on the future and the roll-out of a strategy that will build the business. Focus is currently on three elements: Pan-European ecommerce and digital development, inspiring products with a strong sustainability profile and growth in new markets.
Flying Tiger Copenhagen was hit hard by the pandemic as the chain is highly dependent on the 856 brick and mortar stores across 26 countries and COVID-19 led to most stores being closed for longer periods during 2020. The company therefore experienced a reduction in revenue of approximately 33% from DKKm 5,226 in 2019 to DKKm 3,406 in 2020.
The store closures and derived loss in sales could not be recovered by cost reductions, the result being a loss of DKKm 1,542 in 2020.
”We depend on traffic in the streets and customers in our stores, and given the pandemic and the restrictions across markets, we expected the 2020 result to be negatively impacted” by says Martin Jermiin, CEO of Flying Tiger Copenhagen.
The costs in the business such as rent, and salary could not be reduced to a level where it could make up for lost sales. However, Flying Tiger Copenhagen has throughout the pandemic had constructive discussions with landlords around store rent and both sides have contributed to solutions.
The more than 4,000 employees in Flying Tiger Copenhagen have a huge share in getting the business through a tough year. Despite the many lock-downs, the company has been able to retain the vast majority of their staff, which is very positive and promising for the future, says Martin Jermiin.
”With the recent reopenings across all markets, our sales is going very well and it’s fantastic to experience that the customers are coming back. They have missed us and the shopping experience in Flying Tiger Copenhagen”.
Flying Tiger Copenhagen has just presented parts of how their strategy and plans for growth is coming to life in the very near future – three elements in this include: Digital development incl. ecommerce in all current European markets, inspiring products with a clear sustainable profile as well as a bold global expansion plan through franchise partnerships.
”This means that we will open more than 200 new stores in the coming two years. After a tough 2020 in the shadow of the pandemic, we are now looking ahead and we are once again ready for growth”, says Martin Jermiin.
Flying Tiger Copenhagen’s ecommerce platform recently launched in the Netherlands and in Italy and before year-end, online shopping will be possible in all its European markets.
”In collaboration with third party providers, we will increase the online sale and digital platform in Europe. We want to meet our customers on the platforms they use while giving them that special Flying Tiger Copenhagen experience”, says Martin Jermiin.
At the same time, Flying Tiger Copenhagen will over the coming 6-12 months accelerate their eco-friendly ambitions and will introduce an inspirational and more sustainable assortment proving that for instance products made of FSC wood and paper doesn’t cost a fortune – at least not in Flying Tiger Copenhagen.
”Sustainability has to be at the core of our assortment and value chain and we clearly see that our customers seek these eco-friendly products and they sell much better than our average product”, says Martin Jermiin.
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