THE MARKET ACHlEVEMENTS HlSTORY THE
T he m a r k e t »Nordiska Kompaniet is a cultural and commercial theatre«.The description was coined by NK’s founder, Josef Sachs, a hundred years ago, and the phrase remains the stores’ guiding star. NK’s ambition is to offer its customers the most inspiring environment and shopping experience within fashion, accessories, home furnishings, food, trends and luxury. Its vision is to be a world class department store. Today, the NK stores in Stockholm and Gothenburg are visited by a total of 14 million people every year. Its customers are cosmopolitan, irrespective of where they live, and their expectations of NK are as high as for other leading department stores elsewhere in the world. The retail trade has experienced a long period of strong growth and large investments are still being made in shopping centres in Stockholm and Gothenburg. The market has been more difficult since the autumn of 2008 and for many retailers the many years of positive figures have been reversed. NK has weathered this tough period well thanks to its large number of loyal customers who continue to shop at the stores, as well as a recent increase in tourism of more than 20 percent per year. Internationally, NK compares itself with stores such as Selfridges, Colette, Liberty and Harrods. The most important keys to success are a clear profile and a strong position. In this respect, NK is at the forefront with a high-profile department store with regard to shopping
70 s u p e r b r a n d s
environment, service concept, events and unique, selected quality products.
A chie v e me n t s In recent years, the stores in Stockholm and Gothenburg have been refurbished and upgraded with different concepts and departments as well as with strong international brands. These investments have achieved good results. The view of NK as »best department store« has been strengthened considerably and sales are above the industry average. It is important for NK to take good care of its loyal customers and the last five years have been marked by strong customer growth. The number of visitors has doubled and its loyal customers account for half of the company’s sales. NK has currently more than 125 000 loyalty club customers. Advertising and design have always been important to NK. By focusing on high quality as well as constantly trying to surprise, NK has consistently won awards over the years in several advertising and design competitions. Packaging, catalogues, campaigns, loyalty programmes and website development have been recognized with awards such as the Guldägget, 100-wattaren, Gold Box and Cap&Design.
Hi s t ory Nordiska Kompaniet was founded in 1902 and the store opened its doors on Hamngatan, Stockholm in 1915. Its founder, Josef Sachs, was a visionary. He wanted to create a revolutionary department store and took his inspiration from some of the world’s most
famous department stores. His philosophy was both ground breaking and ahead of its time. He demanded excellent service and his employees were drilled in »NK etiquette« and »the NK way«. He also understood the value of nurturing and communicating a brand. The years 1960-90 were characterized by expansion. NK opened a sister store in the newly-built and trendy Stockholm suburb of Farsta followed by another in Malmo. After the company was acquired by Ferdinand Lundquist & Co, an NK store was opened in Gothenburg in 1971 and subsequently in a further six cities. At the beginning of the 1990s, NK ceased to run the department stores and concentrated instead on managing the NK brand and renting out floor space to independent companies. The logotype was adapted to suit the new situation and plays a major role as the common brand. At the end of the 1990s, the properties were acquired by Hufvudstaden AB. The task was to develop an attractive marketplace for the retail trade with high quality products. In 2002 Nordiska Kompaniet celebrated its 100th jubilee. Today, the two stores in Stockholm and Gothenburg employ a total of 1 200 people and have combined sales in the region of 2.4 billion kronor.
T he p roduc t NK has Sweden’s broadest range of internationally recognized brands and high quality products. NK focuses strongly on highlighting new trends and new merchandise and products based on new habits have always been an important part of the NK range. NK aims to establish itself primarily and consolidate its position in the areas of fashion, accessories and beauty. It is also extremely important to be able to offer good service, an area in which NK is investing heavily. The company is launching a new service handbook to be distributed to all personnel at NK stores during the autumn of 2009 as well as a three-year training programme with courses held every six months. The atriums in Stockholm and Gothenburg are used for »visions of the future« where NK provides its customers with new experiences.
R ece n t de v e l op me n t s In recent years, NK has worked hard to create a new, stylish, international look. Considerable renovations have been carried out and a new shop and service concept has been created. A few years ago, a renewed Gothenburg store emerged where almost the entire store had been reconstructed to create a clear store plan.
Three years ago the ground floor at NK Stockholm underwent a major transformation. Now a completely new fourth floor of 1 200 square metres is taking shape at the Stockholm store. Here, NK will gather functional and trendy fashions and toys to make it the obvious destination for both children and parents alike. By the spring of 2010 NK will also regain a place in home furnishings with inspiring display environments coupled with personal service.
M a r k e t ing In 2005 Nordiska Kompaniet introduced a new communications strategy and communications platform. The main message is »NK – a contemporary stage«. There is no place in Sweden where so much happens at the same time under one roof as at NK. The advertising communicates happenings at NK and aims at driving visitors to the stores and securing the right attitude towards the brand. It is important for NK to come up with cutting edge ideas and present them in a unique and surprising way. NK’s own communications channels are considerable, accounting for more than half of the company’s
advertising spend. When it comes to paid-for advertising, the most important media are the daily newspapers, both for campaigns as well as continual product communication. In addition, NK uses outdoor media to extend the NK experience beyond its own walls. Five years ago, NK launched NK Stil, its own magazine which brings the good life to all of its Nyckel customers. The magazine has now become a well established fashion magazine with high credibility. NK Stil has been extremely well received by its customers. NK’s fashion shows are of a world class standard. The aim of the shows is to give the loyal Nyckel customers experiences, attract the most trend-conscious people to the store and establish relations with the press. A revamped website was recently launched, nk.se, where the focus is on inspiration and NK-TV is an important component. NK’s own channels also include the shop windows towards Hamngatan in Stockholm and Östra Hamngatan in Gothenburg, fashion supplements, the tourist guides »Essential guide to Stockholm/Gothenburg«,
the Christmas catalogue and, not least, the famous Christmas window display.
Br a nd va l ue s NK’s core values are to be a trendsetter, inspire and promote style. These words should permeate both the in-store experience as well as the brand. The goal is to ensure that all NK visitors should share a uniform experience. The core values form a common compass by which to steer developments within NK’s four cornerstones of product range, in-store environment, service and communication. In addition, the company’s own surveys show that customers experience NK as being stylish and trendsetting. To inspire is the most active core value. It means that NK has to be innovative and provide its customers with both knowledge as well as happenings.
Things you didn't know about NORDISKA KOMPANIET • NK’s first customer loyalty card was introduced as early as 1902 and in 1959 the company became the first company in Sweden to launch plastic credit cards for customers. • In 1923 Greta Gustafsson (Garbo) attended a fashion show at the department for French Dressmaking at NK with the theme »news from the top fashion houses of Paris«. • NK staged the world’s »longest« fashion show in the Stockholm Underground system in 1997 – »Nio-mila-mode« (Nine Miles of Fashion). • NK Stockholm and NK Gothenburg have a combined total of 150 departments. All of these are managed by independent companies but are united by the NK brand and a strong department store concept.
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70 s u p e r b r a n d s
environment, service concept, events and unique, selected quality products.
A chie v e me n t s In recent years, the stores in Stockholm and Gothenburg have been refurbished and upgraded with different concepts and departments as well as with strong international brands. These investments have achieved good results. The view of NK as »best department store« has been strengthened considerably and sales are above the industry average. It is important for NK to take good care of its loyal customers and the last five years have been marked by strong customer growth. The number of visitors has doubled and its loyal customers account for half of the company’s sales. NK has currently more than 125 000 loyalty club customers. Advertising and design have always been important to NK. By focusing on high quality as well as constantly trying to surprise, NK has consistently won awards over the years in several advertising and design competitions. Packaging, catalogues, campaigns, loyalty programmes and website development have been recognized with awards such as the Guldägget, 100-wattaren, Gold Box and Cap&Design.
Hi s t ory Nordiska Kompaniet was founded in 1902 and the store opened its doors on Hamngatan, Stockholm in 1915. Its founder, Josef Sachs, was a visionary. He wanted to create a revolutionary department store and took his inspiration from some of the world’s most
famous department stores. His philosophy was both ground breaking and ahead of its time. He demanded excellent service and his employees were drilled in »NK etiquette« and »the NK way«. He also understood the value of nurturing and communicating a brand. The years 1960-90 were characterized by expansion. NK opened a sister store in the newly-built and trendy Stockholm suburb of Farsta followed by another in Malmo. After the company was acquired by Ferdinand Lundquist & Co, an NK store was opened in Gothenburg in 1971 and subsequently in a further six cities. At the beginning of the 1990s, NK ceased to run the department stores and concentrated instead on managing the NK brand and renting out floor space to independent companies. The logotype was adapted to suit the new situation and plays a major role as the common brand. At the end of the 1990s, the properties were acquired by Hufvudstaden AB. The task was to develop an attractive marketplace for the retail trade with high quality products. In 2002 Nordiska Kompaniet celebrated its 100th jubilee. Today, the two stores in Stockholm and Gothenburg employ a total of 1 200 people and have combined sales in the region of 2.4 billion kronor.
T he p roduc t NK has Sweden’s broadest range of internationally recognized brands and high quality products. NK focuses strongly on highlighting new trends and new merchandise and products based on new habits have always been an important part of the NK range. NK aims to establish itself primarily and consolidate its position in the areas of fashion, accessories and beauty. It is also extremely important to be able to offer good service, an area in which NK is investing heavily. The company is launching a new service handbook to be distributed to all personnel at NK stores during the autumn of 2009 as well as a three-year training programme with courses held every six months. The atriums in Stockholm and Gothenburg are used for »visions of the future« where NK provides its customers with new experiences.
R ece n t de v e l op me n t s In recent years, NK has worked hard to create a new, stylish, international look. Considerable renovations have been carried out and a new shop and service concept has been created. A few years ago, a renewed Gothenburg store emerged where almost the entire store had been reconstructed to create a clear store plan.
Three years ago the ground floor at NK Stockholm underwent a major transformation. Now a completely new fourth floor of 1 200 square metres is taking shape at the Stockholm store. Here, NK will gather functional and trendy fashions and toys to make it the obvious destination for both children and parents alike. By the spring of 2010 NK will also regain a place in home furnishings with inspiring display environments coupled with personal service.
M a r k e t ing In 2005 Nordiska Kompaniet introduced a new communications strategy and communications platform. The main message is »NK – a contemporary stage«. There is no place in Sweden where so much happens at the same time under one roof as at NK. The advertising communicates happenings at NK and aims at driving visitors to the stores and securing the right attitude towards the brand. It is important for NK to come up with cutting edge ideas and present them in a unique and surprising way. NK’s own communications channels are considerable, accounting for more than half of the company’s
advertising spend. When it comes to paid-for advertising, the most important media are the daily newspapers, both for campaigns as well as continual product communication. In addition, NK uses outdoor media to extend the NK experience beyond its own walls. Five years ago, NK launched NK Stil, its own magazine which brings the good life to all of its Nyckel customers. The magazine has now become a well established fashion magazine with high credibility. NK Stil has been extremely well received by its customers. NK’s fashion shows are of a world class standard. The aim of the shows is to give the loyal Nyckel customers experiences, attract the most trend-conscious people to the store and establish relations with the press. A revamped website was recently launched, nk.se, where the focus is on inspiration and NK-TV is an important component. NK’s own channels also include the shop windows towards Hamngatan in Stockholm and Östra Hamngatan in Gothenburg, fashion supplements, the tourist guides »Essential guide to Stockholm/Gothenburg«,
the Christmas catalogue and, not least, the famous Christmas window display.
Br a nd va l ue s NK’s core values are to be a trendsetter, inspire and promote style. These words should permeate both the in-store experience as well as the brand. The goal is to ensure that all NK visitors should share a uniform experience. The core values form a common compass by which to steer developments within NK’s four cornerstones of product range, in-store environment, service and communication. In addition, the company’s own surveys show that customers experience NK as being stylish and trendsetting. To inspire is the most active core value. It means that NK has to be innovative and provide its customers with both knowledge as well as happenings.
Things you didn't know about NORDISKA KOMPANIET • NK’s first customer loyalty card was introduced as early as 1902 and in 1959 the company became the first company in Sweden to launch plastic credit cards for customers. • In 1923 Greta Gustafsson (Garbo) attended a fashion show at the department for French Dressmaking at NK with the theme »news from the top fashion houses of Paris«. • NK staged the world’s »longest« fashion show in the Stockholm Underground system in 1997 – »Nio-mila-mode« (Nine Miles of Fashion). • NK Stockholm and NK Gothenburg have a combined total of 150 departments. All of these are managed by independent companies but are united by the NK brand and a strong department store concept.
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