XXL is a true omni-channel sports retailer with large stores, well-functioning online websites, the widest assortment of products, focusing on well-known quality brands at the best prices in the market. The core objective revolves around customer satisfaction and cost consciousness and thereby maximization of the Group’s profitability. XXL pursues a broad customer appeal, both in the stores and online, offering a wide range of products for sports, hunting, skiing, biking and other outdoor activities, as well as sportswear, shoes, health & fitness and sports technology products. XXL is a leading sports retailer in Europe with stores and e-commerce in Norway, Sweden and Finland. It is the largest among the major sports retailers in the Nordics.
XXL has a strong, performance-based culture throughout the organization. The business is based on trained, skilled and enthusiastic employees strengthening the XXL brand every day. Motivated employees are crucial to maximize customer satisfaction. Big data, artificial intelligence and automation processes will strengthen the XXL value chain in the coming years.
Key financials
| (Amounts in NOK million) | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| Revenues | 4,010 | 5,215 | 6,487 | 7,813 | 8,709 | 9,475 | 8,992 | 10,423 |
| % Growth | 29.1% | 30.1% | 24.4% | 20.4% | 11.5% | 8.8% | -5.1% | 15.9% |
| Gross profit | 1,611 | 2,132 | 2,579 | 3,119 | 3,443 | 3,536 | 3,106 | 3,904 |
| % Margin | 40.2% | 40.9% | 39.8% | 39.9% | 39.5% | 37.3% | 34.5% | 37.5% |
| EBITDA ex. IFRS | 460 | 636 | 725 | 824 | 828 | 541 | 490 | 523 |
| % Margin | 11.5% | 12.2% | 11.2% | 10.5% | 9.5% | 5.7% | 5.4% | 5.0% |
| EBIT | 401 | 521 | 634 | 697 | 668 | 352 | -201 | 364 |
| % Margin | 10.0% | 10.0% | 9.8% | 8.9% | 7.7% | 3.7% | n.a | 3.5% |
Business model and value chain
We have a disruptive scalable retail model that drives efficiency and cost leadership. This model is a result of a large unit store format, controlled value chain, efficient logistics, centralized purchasing and a fully integrated IT system resulting in a low cost operating structure, which allows us to offer products at low prices.
XXL operates a fully integrated value chain that facilitates simple and lean operations, which results in low costs. XXL owns all of the stores without joint venture or any franchise arrangements. This means that the Group has control of the product flow with continuous tracking of key performance metrics such as sales data and inventory levels. XXL maintains central purchasing and distribution functions to manage inventory planning, allocate flow of goods to the stores and oversee the replenishment of goods to the central warehouses.
Omni-channel
XXL operates the websites www.xxl.no, www.xxl.se, www.xxl.fi. XXL believes that its strong brand name and customer recognition offline is advantageous to its online offering and vice versa. 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 further build and strengthen the omni-channel 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.
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 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.