The business of Jysk Ireland
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What comparisons are drawn between Jysk and IKEA?
Breakfast Business with Enterprise Ireland on Newstalk. They may be Danish and not Swedish. They may be blue instead of yellow and they may even be a bit cheaper. But the comparisons between Jysk furniture stores and IKEA abound. Jysk is a newer entrant to the Irish market. Business is brisk and now it has opened its 30th store in Mahan Point in Cork. with six more slated for next year. It's also making some money.
How is Jysk performing in the Irish market?
Pre-tax profits came in at €10 million last year. And Ronny Tuomanyan is the head of EUSC Ireland and hopefully is on the line. Good morning, Ronny. Good morning, John. How are you? Congratulations on the results. You made €10 million on a turnover of €136 million overall. That's a 7% margin. Is that higher or lower than other European markets for EUSC?
We have higher margins in Europe, but also we are a market still where we heavily invest on expansion. And as we also wrote, we opened a new warehouse here last year. So some of the money, of course, goes to investments.
And they include opening up new stores, as we mentioned. You've got 30 stores in Ireland and that will soon be 36. Can you tell us where the six other ones might be?
I can tell you a little bit. Actually, we have the 30th store in line opening next week. Next week, Thursday, in Mahon Point, we will celebrate the 30th store. We have then Blanchardstown coming up. We will... open another store in Dublin, in Sallinoggin, and then we have a line of stores that we're still negotiating, but lots more coming up.
I presume you're opening up in urban centres where there are large populations.
What are the future expansion plans for Jysk in Ireland?
Yes.
Yes, that is a plan. But of course, our brand and our concept fits very well also in the smaller towns, as we've been showing in Ireland as well.
And can the Irish market sustain that many furniture stores? Not just Jysk, but there's obviously lots of other furniture stores around.
Well, that's a good question. Of course, I think part of our success at least last year comes from the fact that the global uncertainties and consumer confidence has been a little bit lower. And I mean, I think from our side, at least it looks that people still want to invest into their home and also into their sleeping. So I'm sure there's room for other furniture retailers to grow besides us.
But you are noticing a tightening of wallets and purses amongst Irish consumers?
Yes, amongst Irish consumers, but I think that's also a little bit of the tendency all over Europe.
Where is your stuff mostly made, and do you have any Irish-made stuff?
Most of our stuff comes from Asia. We have some mattresses and duvets and pillows that are also bought locally from the local markets.
And do you have any Irish-made products?
Yes, mattresses.
They're made locally, right? Yes. Okay. And when did you order, out of curiosity, your Christmas stock, which is currently on sale?
How does Jysk's profit margin compare to other European markets?
Would you have ordered that like in March or something?
I think that's probably been ordered as we speak right now. Our purchase team is always way, way ahead of So I'm pretty sure that the next season's Christmas stuff is being purchased as we speak. All right.
And will you be having a winter sale after Christmas like a Stephen's Day? You will. All right. OK, so some of the stuff will be cheaper, perhaps after Christmas. Any trends in furniture that you've noticed this year, Ronny?
Well, in general, if I look at our assortment and speaking of especially furniture, furniture is not the whole assortment that we sell, but that is particularly performing well. Home office continues to be a positive trend. People still seem to be working actively from home. But as I said, we are also really happy that people are investing more money on sleeping, meaning buying better mattresses and duvets and pillows.
All right. OK, well, listen, best of luck with your Christmas sales and with all that hybrid working, of course, which is good for business. That is Roni Tuomanen, the head of JUSC here in Ireland.
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