story continues: next generation variety discount retailer
TRANSCRIPT
Story continues: NEXT GENERATION VARIETY DISCOUNT
RETAILERMika Rautiainen, CEO, Tokmanni
Target of 1,500 MEUR revenuewill be achieved with
strong customer confidence and engagement
Target of 150 MEUR EBITwill be achieved with
strong growth and focus on every day low cost
Next generation variety discount retailer
22.3.20212
NEXT GENERATION VARIETY DISCOUNT RETAILER
Customer confidence
and engagement
Widest possible
assortment
Lowest possible prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledge-
able personnel
Sustainable choice
22.3.20213
NEXT GENERATION VARIETY DISCOUNT RETAILER
4
Widest possible assortment
We will double Tokmanni’s assortment
• Expanding current destination categories
• Introducing new destination categories
• Introducing new private label ranges and A-brands
NEXT GENERATION VARIETY DISCOUNT RETAILER
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledgeable
personnel
22.3.2021
Sustainablechoice
5
LOWEST POSSIBLE PRICEs
Our mission is to provide lowest possible prices to our customers
This means:
• Best price with entry-level products
• Best value with private labels
• Best deals with A-brands
• Best campaigns
NEXT GENERATION VARIETY DISCOUNT RETAILER
22.3.2021
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledgeable
personnel
Sustainablechoice
6
Fast and EASY to shop
Building a winning concept for omnichannel retailing
• Tokmanni will continue developing fast and easy shopping as a combination of online and stores
• A new large store concept will be launched to enable large assortment and fast delivery
• Over 220 stores nationwide to serve Tokmanni customers only in 5 minutes reach
NEXT GENERATION VARIETY DISCOUNT RETAILER
22.3.2021
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledgeable
personnel
Sustainablechoice
7
personal and excitingshopping experience
Launch of Tokmanni Club in 2021
• Personalized offers and benefits
• Exclusive deals
Strengthening B-to-B offer, service and sales
New products and bargains during every visit
Products that cannot be found anywhere else
NEXT GENERATION VARIETY DISCOUNT RETAILER
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledgeable
personnel
Sustainablechoice
22.3.2021
8
Friendly and knowledgeablepersonnel
Best place to work in retail
• Leadership
• Personal development
• Compensation
• Well-being
• Company culture
NEXT GENERATION VARIETY DISCOUNT RETAILER
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledgeable
personnel
Sustainablechoice
22.3.2021
22.3.20219
It is our goal to make Tokmanni the best place to work in retail in Finland.
Our personnel is ournumber one priority
FRIENDLY AND KNOWLEDGEABLE PERSONNEL
22.3.202110
It is essential that all our team leaders lead our people according to our values and leadership principles.
We take pride in goodleadership
FRIENDLY AND KNOWLEDGEABLE PERSONNEL
22.3.202111
Last year over 3,200 of our employees participated in our trainings.
We train and developour people whileTokmanni is growing
FRIENDLY AND KNOWLEDGEABLE PERSONNEL
22.3.202112
All of our employees are part of our rewarding programme.
The success of Tokmanni is a shared success for the whole personnel
FRIENDLY AND KNOWLEDGEABLE PERSONNEL
22.3.202113
Many of our store employees are able to work with us until their old age pension.
Our store employees eNPS is 38.
We have long careersbecause we take care of our employees
FRIENDLY AND KNOWLEDGEABLE PERSONNEL
22.3.202114
Our culture is based on mutual respect and our values.
Tokmanni values are – we feel pride in low prices, – we dare to renew and – we do it together
We are all in the same Tokmanni truck!
We have a strongcompany culture
FRIENDLY AND KNOWLEDGEABLE PERSONNEL
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SUSTAINABLE CHOICE
NEXT GENERATION VARIETY DISCOUNT RETAILER
Tokmanni – next generation sustainable variety discount retailer
Key focus areas:
• Sustainable products
• Taking care of climate
• Respect of human rights
• Tokmanni is for everybody
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledgeable
personnel
Sustainablechoice
22.3.2021
We will increase offering sustainable and traceable products and servicesIncreasing the share of products with sustainability labels in all product categories
Increasing certification rates for all of our four high-risk raw materials
We will only source sustainably produced cottonin our private labels by the end of 2024
22.3.202116
SUSTAINABLE CHOICE
We will be carbon neutral regarding own operations in 2025 Continuing to reduce Co2 emissions and waste, and
increase the share of renewable energy
In 2020, becaming a global pioneer by adopting climate targets that are officially approved by the Science Based Targets initiative and
in line with the Paris Agreement
22.3.202117
SUSTAINABLE CHOICE
We respect human rights in all our activities, and we know where our
products come from All factories are audited by third parties
Increasing the number of our own factory inspections, especially in China
Improving transparency regarding products and supply chain also towards our customers
22.3.202118
SUSTAINABLE CHOICE
We foster diversity, equality and inclusion: Tokmanni is for everybody
Hiring diverse people to better serve our diverse clientele
Coaching all of our employees in managerial position on diversity and inclusion
Keeping our long-term employees at work until retirement age through modifying their work tasks and simultaneously continue to attract younger employees
22.3.202119
SUSTAINABLE CHOICE
We strive to be a sustainable discount retailer also in the future
Ensuring the integrity and responsibility of our operations now and in the future
Continuing to make ambitious sustainability openings in discount retail
Ensuring that our customers and other stakeholders can trust that Tokmanni’s sustainability actions are enduring, consistent and impactful
22.3.202120
SUSTAINABLE CHOICE
Customer confidence
and engagement
Widest possible
assortment
Lowest possible prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledge-
able personnel
Sustainable choice
22.3.202121
NEXT GENERATION VARIETY DISCOUNT RETAILER
Target of 1,500 MEUR revenuewill be achieved with
strong customer confidence and engagement
Target of 150 MEUR EBITwill be achieved with
strong growth and focus on every day low cost
Next generation variety discount retailer
22.3.202122
NEXT GENERATION VARIETY DISCOUNT RETAILER
Widest possible
assortment
Lowest possible prices
Fast and easyto shop
Personal and exciting
shopping experience
Friendly and knowledge-
able personnel
Sustainable choice
22.3.202123
SupplyChainDigitalization
Sourcing and buying
EVERYDAY
LOW COST
NEXT GENERATION VARIETY DISCOUNT RETAILER
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NEXT GENERATION VARIETY DISCOUNT RETAILER
Every day Low CostIN EVERYTHING WE DO
Cost consciousness is a crucial part of Tokmanni
22.3.2021
22.3.202125
Supply chainDigitalization
Sourcingand buying
EVERYDAY
LOW COST
NEXT GENERATION VARIETY DISCOUNT RETAILER
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EFFICIENT SOURCING AND BUYING
Smart sourcing and buying ensures the success of the whole company
22.3.2021
Evaluating each and every one of our existing categories
Finding new interesting products every day
Improving the assortments continuously
Keeping the supply chain as short as possible
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We target to increasedirect sourcing
Working closely together with Tokmanni Europris sourcing office in Shanghai
Opening a sourcing office in Vietnam together with Europris by end of 2021
Opening a sourcing office to Bangladesh during 2022
Increasing the role of imports from Europe
Stock lots and parallel importing are playing very important role
EFFICIENT SOURCING AND BUYING
22.3.2021
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We target to significantly extend ourprivate label ranges and offering
during the next five years
EFFICIENT SOURCING AND BUYING
22.3.2021
Tokmanni operates with multibrand strategy
Three new private label ranges in 2021–2022
22.3.202129 EDLC, every day low cost
SupplyChainDigitalization
Sourcing andbuying
NEXT GENERATION VARIETY DISCOUNT RETAILER
EVERYDAY
LOW COST
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NEXT GENERATION SUPPLY CHAIN MANAGEMENT
Our main target in supplychain management
Ensuring high product availability for our customers with lowest possible costs
22.3.2021
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NEXT GENERATION SUPPLY CHAIN MANAGEMENT
High product availabilityfor our customers
Constantly improving the forecasting to ensure steady flow of goods
Co-operating strongly with partners to provide flexibility in shipments and warehouse workforce
Launching Click & Collect concept to improve online services and delivery times
22.3.2021
32
NEXT GENERATION SUPPLY CHAIN MANAGEMENT
Improving supply chain costefficiency
Optimizing inbound, warehouse logistics and store deliveries
Streamlining processes with digital development
Creating future warehouse solution
Taking advantage of automation in warehouse
22.3.2021
22.3.202133
Supply chainDigitalization
NEXT GENERATION VARIETY DISCOUNT RETAILER
EVERYDAY
LOW COST
Sourcing andbuying
34
NEXT GENERATION VARIETY DISCOUNT RETAILER
DIGITALIZATIONTO DRIVE
customer engagement and EFFICIENCY
22.3.2021
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NEXT GENERATION VARIETY DISCOUNT RETAILER
DIGITALIZATION to drivecustomer engagement
Utilization of advanced analytics in assortment decisions
Optimized and store specific assortment
Price optimization to ensure lowest prices for our customers
Personalized customer offering and experience
Digital in-store solutions to support fast and effortless customer journey
22.3.2021
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NEXT GENERATION VARIETY DISCOUNT RETAILER
DIGITALIZATION to driveefficiency
AI driven forecast and replenishment
Improved supply chain visibility and predictability
Automation and robotic process automation solutions for warehouse and headquarter operations
Warehouse optimization
Workforce optimization
Digital solutions to improve store efficiency
22.3.2021
Next generation variety discount retailer
22.3.202137
KEY TAKEAWAYS
Customer confidence
and engagement
Widest possible
assortment
Lowest possible prices
Fast and easy to shop
Personal and exciting
shopping experience
Friendly and knowledge-
able personnel
Sustainable choice
SupplyChain
Digitali-zation
Sourcingand buying
EVERYDAYLOW COST
KEY TAKEAWAYS
Next generation variety discount retailer
Improving Customer confidence and engagement targets to 1,500 Meurof revenue
Strong growth and Every day low cost targets to 150 MEUR of EBIT
22.3.202139
KEY TAKEAWAYS
Customer confidence
and engagement
Widest possible
assortment
Lowest possible
prices
Fast and easy to shop
Personal and
exciting shopping
experience
Friendly and
knowledge-able
personnel
Sustainable choice
SupplyChain
Digitali-zation
Sourcing and buying
EVERYDAYLOW COST
