Norwegian-based online retailer Komplett has shut its online store in the UK, as well as in Germany, Austria and France citing tough trading conditions because of its small size in those markets as the main reason behind the decision.
Speaking to HEXUS.channel‘s Scott Bicheno, European general manager Vincent Hoogdujin played down the move, explaining: "This is a minor consolidation, as those markets were actually quite small for us. It’s very difficult to get a large footprint in countries like the UK and Germany."
"It hasn’t been the best year on the IT side for the UK," he added. "Our marketing spend was not very effective as there are so many other players and the small ones are always hit first."
Hoogdujin said that the timing for the change was a shift in the company’s strategy. "Two years ago, our strategy was one of geographical expansion; now we want to focus on sales growth in our strongest territories."
Those markets – Ireland, Holland, Norway, Sweden and Demark – are all set to see further investment over the coming months, with Ireland set to see the first fruits later this year with the opening of a new office in Dublin.
Hoogdujin was quick to assure those customers that currently have orders with the firm that their purchases were safe and that they would receive them shortly. "We are closed for new business [in the affected territories], but the customer service team is still going."