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Retail Lighting
This business area comprises the sales of lighting systems, light sources and services to retail stores. Chains stores are the target group and especially large chain stores with a national or international presence and strong brands.
 Lighting solutions which affect people
The right lighting increases the attractiveness of both the retail space and the products sold there. In Bollebygd, between Borås and Gothenburg, Fagerhult Retail has built a facility in which customers may be provided a demonstration of the effect of the lighting as regards shop premises. In an “experience room”, knowledge concerning the importance that light has on our perception of our surroundings is demonstrated to the customers. The manner in which we perceive colour, shape and size varies with the reflection of light.
In the facility, environments from different types of stores have been created – ranging from stores offering everyday commodities, to stores selling clothes and sports items. Customers may experience the different environments and experience the effect the lighting has on the attractiveness of the products. Many types of retail spaces have been created. This provides an environment in which to try different types of lighting, from general lighting, to spot lighting aimed at specific products and lighting in changing rooms.
Chain stores usually remodel their shops once every four years and the understanding of the importance of good lighting is steadily increasing. Fagerhult Retail works with many of the biggest chain stores in Sweden and Europe.
 The market
In the year 2006, this Business Area reported sales worth MSEK 313, an increase of 2 percent. Operating profit/loss was MSEK -2.9. Considerable changes, such as the development of a brand new line of products, the move of production to China, the creation of a new stronger organisation and an international launch have brought about great expenses.
Following a slow start to the year, the Business Area has been turned around as a consequense of the actions described above, yielding positive operating profit for the second half of the year. In the choice between cutting down on expenses and increasing growth, the latter was chosen.
Today, the biggest markets for Fagerhult Retail are Sweden, Great Britain and France. Through the acquisition of ECL, which has established channels with a number of international chain stores, the possibility of reaching more of the European market has been created. |
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| Trademarks in Retail Lighting |
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| Important events during the year |
During the year, David Francis was appointed director of the Business Area. He comes to this position after serving as MD of Fagerhult UK for nine years.
The French lighting company ECL, with subsidiary Reflexions, was acquired at the end of 2006. This company’s strength is in design and it has a workforce of 15 employees working with light planning. A new website has been launched, www.fagerhultretail.com, in order to further market services within retail lighting.
The greatest and most prioritised challenge in 2007 is to improve profitability through continued growth in Sweden and Europe alike. This can be done by utilising the collected know-how that exists within this Business Area in the Company to increase customer knowledge of how lighting affects the attractiveness of both the store and of its products.
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