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Innovation and Efficiency in Norway’s Toychains
Author: BY BRIAN PEERSON  Post Date: 2008-02-26

The year of 2006 in Norway has been described as the Year of Modernization of the toy shops, those who are willing to accept the future and the rough competition.

 

Shops in the land of the Vikings, have after the Second World War mostly been mentioned as independent professional “corner” shops. The Norwegian retailers of many trades and industries have for the last hundred years followed the German and Scandinavian tradition of operating specialized shops and outlets for all kinds of goods.

 

Only a few big “magazines” or department stores, like Steen & Ström and GlasMagasinet-both in Oslo, and Sundt in Bergen have been established during the period of the last 100 years. Today many of the earlier, famous department stores do not exist any more, or they have been transformed into a modern version of cooperation between property owners and mostly textile and fashion chains-often because of their downtown locations.

 

The last 25 years very eager bankers, some strange investors, builders, contracters and property owners have established big shopping malls and parking lots outside the Norwegian cities. Here the centre owners and their local bosses have been collecting all the most active chains and affiliates of well known international and Scandinavian retailers and brand names.

 

Most of the toyshops have belonged to and have been governed by the so called voluntarily chains such as Brio Partner, Edwis, Ringo, ToyClub, Buddy, Extra Leker, LekePlaneten and Yes!vi leker. The last tow to three years this very Norwegian marketplace has been partly invaded by the Danish TopToy conglomerate, consisting of its centrally operated Toys R Us and BR shops.

 

The latter is currently reorganizing and consolidating before moving further along the Norwegian coastline. But on the other hand the same Danes have found it better to consider new Toy R Us markets in Northern Germany, which probably are much more rewarding than some small shops in Norway.

 

Outside the Norwegian shopping malls, often situated in old factories out in the countryside, one can also find very active new Norwegian chains and affiliates that focus mostly on price and therefore on their won or unbranded products. This kind of market is often built in old warehouses and workshop buildings. The interior is a bit primitive compared to the more traditional High Street retailers-and the merchandise is often displayed directly on the transport medium: the EuroPall. Important actors in this field are Extra Leker, LekePlaneten, some hypermarkets belonging to the Cooperative Society and SmartClub.

 

And this is the reason why all the other toy shops now are watching carefully and thinking about the future here in Norway. In fact most of the toy shops have moved from the corner premises to the shopping malls outside the city centres. Most have been busy writing and painting big yellow posters advertising cheap prices.

 

As a result some have gone into the red and in trouble with their bank managers. That is why the brightest shop owners or franchisers now are looking in another direction. Focus and heavy work is now placed on the efficiency of getting the truckloads of toys from the wholesalers (most often situated around the Oslo fiord or in the Gothenburg area). Some of the biggest, international brands are even distributed directly to Norwegian retailers from Denmark, Sweden, Germany, The Netherlands and Eastern Europe (including Hasbro, Mattel, Micki and LEGO)

 

Together with the representatives of the wholesalers and chain operators, the local retailers are now going through their shops with new, efficient eyes and seeking for all possibilities of making the flow of articles more refined and thus more profitable.

 

After focusing on price competition since the depression of the markets during the end of the 1980s and the start of the 90s, the new operating philosophy is now directed towards a more streamlined operation of goods. On the other hand modern retailers have observed that it pays great dividends to modernize the shops and make them more a kind of adventure centre.

 

This is done perfectly by the Edwis chain operating out of the medieval town of Trondheim about 500 kilometres north of both Oslo and Bergen. The Edwis people are experts in rejuvenating old shops into exciting halls showcasing recent movies, heroes and characters. The result among some of the first Norwegian retailers to accept this professional way of thinking is better bottom line, more customers and of course higher ranking products.

 

Norwegian children told interviewers before last Christmas that they will only accept gifts which are brand toys. Everything else in no good!
 
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