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On of Sweden’s leading electronic dealers, Onoff could not stand the pressure - throw in the towel



  

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Monday, 11 July 2011
We learn today that one of Sweden’s leading electronic retailer chains, Onoff has throws in the towel and bow out of the market on Monday. On it way out it filed for bankruptcy at the Attunda District court in Sweden.

Although analysts had well speculated that the company would not stand given what was described in those past months as inflexibility, poor customer services, today the reason advanced for the fall is stiff competition, pricing pressure and weak profitability.

"Several cost rationalization programs have been implemented while negotiations have been held with a number of different stakeholders to sell or merge the company. The negotiations have been long past, but have unfortunately not led to any final business," writes Onoff in a statement.

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Onoff was founded in 1982 and currently has 67 stores in Sweden, six in Estonia, and one store in Finland.
"It's very sad for all who work at Onoff, but also for suppliers and customers. It is our hope that the negotiations we have held in the spring will lead to at least part of Onoff moves forward," said Sten Schroder, Chairman and partner, in a statement.

Leading competitor, Elgiganten says that Onoff’s bankruptcy is not surprising
Jessica Wallin, press contact at Elgiganten, talking about the extremely tough competition, price pressure and the small margins that prevailed for years in the Swedish consumer electronics market.
“It is not surprising if a player disappears,” she says.

On the other side, Elgiganten is doing quite well and the reason for that is that they are doing the opposite of Onoff.
“We will continue to drive down prices, investing in customer service and our customers to feel safe,” she said.
By Scancomark.se Team


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