Sports shops have had a good winter, but they still face a number of challenges. Giselle Daphnis says so today’s work.
He’s the boss of the retailer-owned Stadion chain, which is behind Torshov Sport among others, and says he’s “not necessarily very optimistic for the period ahead”:
– You have inflation and interest rate increases, not least the krone exchange rate. Most of what we sell is imported items, so we don’t think summer and fall are going to be so hallelujah, Duffness tells DN.
– Pumping a lot of goods offered to the market
When the krone weakens, imported goods become more expensive, the CEO explains.
– The krone effect comes with a lag, as we buy within nine months in advance. Part of what’s selling is based on old accounts and buying prices, but this comes in full force. There’s already a very large amount out there, Daviknes says, but we expect significant price increases in the future.
Also read: Storbank warns: – We believe in the permanently weak krone
He told DN that large parts of the industry expected the krone weakness to be a temporary period. So currency hedging has been avoided, and price adjustments have been delayed so far. On the contrary, for example, XXL has run a lot of aggressive sales campaigns recently. Duffness refers to the competitor as a “heavy player” who “has pumped a lot of commodities into the market”.
Now low prices may soon be a thing of the past, the Stadion manager believes:
– Now we see that there may be a more permanent case, and you cannot sell at a loss. There is pressure here, but at the same time there are some pain limits to what things can cost, says Daviekens.
Gunnar Stavrem: Weaker krona, higher interest rates, more expensive vacations for ordinary people
weaken more
The Norwegian krone has not been this weak since March 2020. On Friday evening, one euro equals 11.66 NOK.
This is due to a number of factors, chief strategist Dane Cekov told Nettavisen earlier this week:
First, the interest rate advantage of the Norwegian krone has disappeared since the European Central Bank (ESB) raised the interest rate to 3 percent.
Read also: Danish rejoicing over the weak krone: – absolutely crazy!
For the first time since the financial crisis, interest rates are the same. Lower energy and gas prices also play a role.
Many of us are wondering when will the krone hit bottom?
– It’s hard to say, but we think it will happen during the summer.
– So this is bad news for everyone planning a vacation abroad this summer?
– Yes, unfortunately it is. People should be betting on a euro exchange rate this summer of 12.5, says chief strategist Dane Cekov of Nordea Markets to Nettavisen.
Read more from Cekov here: Weakest krone in more than three years: – Bad news for the summer holidays
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