Investors

Business model

Puuilo is a Finnish discount store chain established in 1982 and known for its wide product range, low prices, good store locations and convenient shopping experience. We focus especially on handcraft and household accessory, and pet products. We have nearly 50 stores across Finland and an online store that is an important part of Puuilo’s multichannel business model. The number of stores has more than doubled over the past five years.

Consumers by far the largest customer group

We serve both consumer and corporate customers, and the clearly largest customer group is consumers. Puuilo’s concept that is based on a product range that meets the customer's needs and on low prices, has proven successful especially among customers that are interested in creating and repairing things. Our functional customer experience relies on low prices, easy shopping and a wide range of products. In addition, the role of our skilled personnel is crucial, as our customers often need help to solve their problems. Our NPS score that measures the customer experience has been better than the average in trade.

Selection includes both private label and third-party brands

All our stores have the same product range. It consists of ten product groups: building materials, HVAC and electric supplies, car accessories, household products, garden supplies, pet food and accessories, tools, free-time products, groceries, and services. Only a small share of our sales consists of seasonal products and seasonal dependency in our demand is low compared to the retail sector in general.

Our product groups cover a product range of about 30,000 titles. We offer both third-party products and private label products. Third-party products account for most of our sales, but we are constantly developing the range sold under our private labels. Part of our growth strategy is to increase the sales of private label products, and in recent years their share of our total sales has grown steadily.

The role of multichannel sales in growing

A key part of our growth strategy is continuous expansion of our store network, which has steadily expanded into a nationwide network of nearly 50 stores. We have developed a standardised and efficient process for our store openings, whose effectiveness is indicated by the fact that it only takes about six weeks after the lease agreement has begun to open the store. In addition, measured by EBITDA our new stores have been profitable in the first full month after opening.

Although most of our sales comes from physical stores, the role of our ever-evolving online platform is an important part of our multichannel business model. Our online sales have grown strongly, although their share of total net sales is still relatively low.