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Platekompaniet to shut down almost all stores

Platekompaniet

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Platekompaniet lost NOK 55 million over the past five years. Now almost all stores are to be shut down. Only three store to remain.

New accounting reports show for 2018 that the retail chain Sold for NOK 22 million last year, according to Dagens Næringsliv.

Over the past nine years, revenue has fallen every year. In the peak year 2009, music and games were sold for NOK 657 million. Last year, sales were NOK 345 million.

It has have been eleven years since owners have received dividends.

“We must adapt our concept to something that is sustainable in the future. And it looks like by removing the physical stores is the way to go,” says founder and owner Rolf Kristian Presthus of Platekompaniet.

In 2014, Platekompaniet had a total of 27 stores. There are currently eight stores, but five of them will have to close their doors.

Instead, we are betting on an online store.

“The challenge is that we move the turnover from the physical store to the net, so we are in a phase where we have to handle some of the change costs,” says Presthus.

He is absolutely certain that the Platecompany will succeed.

“Our budgets show that if we have a clean web venture without keeping physical stores going, then we can expect good results. We expect to be in plus again in 2020,” he says.

© NTB Scanpix / #Norway Today

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