Our Business

XXL is the largest and fastest growing sports retailer by revenue in the Nordic region, with a consistent track record of rolling out new stores in Norway, Sweden and Finland, together with strong growth in revenue, EBITDA and net income. In 2017 XXL established its operations in Austria. XXL operates many large unit stores as well as an established e-commerce platform in all four countries and a pure e-commerce offering in Denmark. XXL sees a significant continued potential of new stores  as well as expanding its online presence offering a true multichannel experience. XXL offers a unique customer proposition, through a wide range of high quality branded products, combined with focus on customer service and a clear pricing strategy.

XXL is the market leader in Norway with a market share of around 30 per cent as of 2018. The Company opened its first store in Sweden in 2010 and achieved a 15 per cent market share in 2018. In April 2014 XXL opened its first store in Finland and now have a market share of around 17 per cent.

Key financials

(Amounts in NOK million) 2011 2012 2013 2014 2015 2016 2017 2018
Revenues 2,471 3,107 4,010 5,215 6,487 7,813 8,709 9,475
% Growth 25.1% 25.7% 29.1% 30.1% 24.4% 20.4% 11.5% 8.8%
Gross profit 1,008 1,224 1,611 2,132 2,579 3,119 3,443 3,536
% Margin 40.8% 39.4% 40.2% 40.9% 39.8% 39.9% 39.5% 37.3%
EBITDA 325 371 460 636 725 824 828 541
% Margin 13.1% 11.9% 11.5% 12.2% 11.2% 10.5% 9.5% 5.7%
EBIT 289 324 401 521 634 697 668 352
% Margin 11.7% 10.4% 10.0% 10.0% 9.8% 8.9% 7.7% 3.7%

Large unit store concept

The XXL store concept includes large units ranging from 3,000 m² to 5,300 m². Average store size is approximately 3,900 m². All stores are owned and operated by XXL without any joint venture or any franchise arrangements. The stores have highly uniform layouts and a high degree of overlap in product range. The products are presented in a convenient manner and an engaging atmosphere where customers get a “one-stop-shop” experience with a wide variety of products, easy accessibility and convenient parking. Each store features a “shop-in-shop” concept, offering products and expertise for sports, health & fitness, shoes, sportswear, outdoor, ski/bike, hunting and sports technology.

Exploit a multichannel strategy

XXL operates the websites www.xxl.no, www.xxl.se, www.xxl.fi, www.xxl.dk and www.xxlsports.at. XXL believes that its strong brand name and customer recognition offline is advantageous to its online offering. Also, with its state-of-the-art logistics and IT-systems, as well as an experienced and efficient purchasing team with strong supplier relationships, the company has a robust backbone structure to support its e-commerce expansion. Consequently, XXL believes it is in a strong position to build a true multichannel platform offering a broad range of branded goods at the lowest price, providing valued customer service across all channels. A multichannel platform provides a high degree of flexibility for the customer and also allows XXL to effectively use customer data to optimize marketing and facilitate cross-selling and up-selling.

Strong brand portfolio

XXL aims to offer a full assortment of branded goods for a wide range of sports and outdoor activities. The product range includes branded goods from more than 400 suppliers, including well-known international brands and strong national brands.

Efficient purchasing and logistics

XXL strives to be best-in-class in operating efficiency through efficient operation of the stores, warehouses, logistics and head office. XXL believes effective sourcing, purchasing and distribution of the products from its suppliers is essential to the success of the business, and a key factor being able to adhere to its price promise: Offering the lowest prices on products.

The large stores allow for economies of scale and high efficiency in terms of store operations, logistics and headquarter resources required to support the stores. Fewer and larger stores, in combination with centralized purchasing and warehouse functions, result in maximized logistical efficiency and minimized corporate support expenses.

The Group has two central warehouses, situated in Gardermoen, Norway and Örebro, Sweden. Both have scalable systems and processes, in addition to an option for storage space expansion, which XXL believes can accommodate its growth strategy.

Powerful marketing and advertising

XXL has adopted a marketing strategy which focuses on smart marketing across channels to build brand awareness and increase customer loyalty. XXL uses direct marketing, digital marketing, newspaper ads, TV-commercials and social media as marketing channels, with direct marketing as the backbone of its marketing strategy.

Enthusiastic and skilled employees

XXL believes it has established a strong, performance-based culture throughout the organization. The culture revolves around customer satisfaction and cost consciousness. Competent and motivated employees are crucial to maximize customer satisfaction. The management is experienced and stable and built with retailing expertise and short lines of command. The business is based on trained, skilled and enthusiastic employees strengthening the XXL brand every day.