Verkkokauppa.com announces its updated strategy for 2021–2025

E-commerce pioneer Verkkokauppa.com Oyj is publishing its updated strategy for the 2021–2025 period. According to the refined strategy, Verkkokauppa.com aims for a revenue of one billion euros and an operating profit margin of 5 percent by the end of 2025. At the same time, Verkkokauppa.com continues its dividend policy, under which the company pays its shareholders a growing quarterly dividend.

Verkkokauppa.com's vision is to remain an e-commerce pioneer for decades to come through continuous innovation and development. The company's future growth is built on five pillars:

1. Excellent customer experience and a strong brand. Verkkokauppa.com has over 1.7 million registered customers and more than 400,000 published customer reviews. The company's over 115,000 monthly active customers, a high NPS of 70, and a low product return rate of 1.0% are the result of Verkkokauppa.com's continuous investment in providing the best possible customer experience.
2. Efficient order-delivery process. Verkkokauppa.com's delivery network already covers approximately 75 percent of Finns with next-day delivery. The company is constantly improving its delivery options by utilizing its megastores as logistics hubs.
3. Superior technological backend. Thanks to its in-house IT professionals and strong technological expertise, Verkkokauppa.com has an advanced technology platform for building new services and features to provide the best possible customer experience.
4. Wide product selection. Verkkokauppa.com offers the widest selection of products in selected categories in Finland. Highly transparent product information and competitive prices are key factors in the company's customer promise, “Probably always cheaper”.
5. Competitive costs. The company aims to push fixed costs below 10 percent of revenue by 2025. To achieve this, the company is making targeted investments in logistics, processes and automation, the supply chain, product management, and marketing.

The road to one billion euros

Verkkokauppa.com seeks growth in its core categories and by expanding into new categories with attractive margins, especially online. Additionally, the company sees attractive growth opportunities in the B2B segment, its own private label brands, and value-added services. The company aims to double its B2B and private label business by 2025. Furthermore, the company is evaluating new business opportunities and acquisitions, particularly regarding local complementary e-commerce companies.

Verkkokauppa.com's updated strategy outlines a path for future growth, which is primarily organic and accelerated by the shift from brick-and-mortar to online retail. “We help our customers fulfill their passions,” says Verkkokauppa.com CEO Panu Porkka. “We are proud that Verkkokauppa.com is an e-commerce pioneer and the most well-known and visited online store in Finland. Verkkokauppa.com is in an excellent position to benefit from the ongoing retail transformation. Together with our dedicated and enterprising employees, we are ready to execute our updated strategy and reach one billion euros in revenue by 2025 while honoring our customer promise, probably always cheaper.”

Jätkäsaari logistics automation investment program

One strategic project enabling growth is the Jätkäsaari logistics automation investment program. The investment involves modernizing Jätkäsaari's warehouse operations and introducing a new warehouse automation system, a packaging automation system, and a vertical conveyor system. The investment enables future growth and provides cost savings as well as a better customer experience through improved product availability and faster deliveries. The cost of the investment is approximately 4 million euros, and the project is expected to be completed by the end of 2022. With this investment, the Jätkäsaari warehouse will become a world-class automated logistics center in the heart of Helsinki.

More information

Panu Porkka
CEO
panu.porkka@verkkokauppa.com (Ulkoinen palvelu)
Tel. +358 10 309 5555

Distribution:

Nasdaq Helsinki
Main media
www.verkkokauppa.com

Verkkokauppa.com
Verkkokauppa.com is Finland’s leading online retailer, offering a wide selection of products ranging from home technology and leisure to business solutions. Established in 1992, it is one of the world’s oldest e-commerce companies, providing a seamless omnichannel experience through its online store and physical locations. Verkkokauppa.com operates four megastores in Oulu, Pirkkala, Raisio, and Jätkäsaari, Helsinki. To ensure a superior customer experience, the company leverages automation and robotics to deliver products to your door in as little as one hour, 24/7. Verkkokauppa.com employs around 600 people and is listed on the Nasdaq Helsinki stock exchange.