Magasin du Nord publishes its 2019-2020 annual report
What: the retailer details the impact of Covid-19 on the results
Why is it important: ecommerce reached double-digit profitable growth
Revenue in Magasin decreased from DKK 2.865 million (USD 459 million) to DKK 2.577 million (USD 413 million) primarily due to the COVID-19 pandemic and the lockdown period that significantly affected Magasin’s brick-and-mortar department stores. (Fiscal year is from September 1, 2019 - August 31, 2020.)
Magasin delivered an acceptable performance in 2019/20, in the context of an unprecedented challenging trading environment, with only food spaces and online available for trade for nearly two months. All seven of Magasin’s brick-and-mortar stores remained temporarily closed between 18 March and 10 May 2020, although with better than expected results post re-openings and trade levels very close to the same period last year. Without lockdown, management estimates that the year’s financial result would have been in line with the previous year.
Magasin.dk reached double-digit profitable growth in 2019/20, reflecting the success of Magasin’s continued investments in this area. Magasin.dk is our most visited store.
During 2019/20 Magasin launched a new Goodie rewards loyalty programme in an effort to remain relevant in the modern retail environment.
Magasin was closed down by the Danish government once again from the 17 December 2020 due to COVID-19 restrictions. As the global COVID-19 pandemic continues to have a negative effect on physical retailing, Magasin expects revenue and net profit for the financial year 2020/2021 (September 1, 2020 - August 31, 2021) to be in line with the same period in 2019/2020. The company is currently exploring the government’s relief packages, and it is estimated by the management that there is no uncertainty related to the company’s ability to continue as a going concern.