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Byggmax Group consists of Byggmax, Buildor and Skånska Byggvaror. In 2018 Byggmax Groups turnover was 5.1 billion crowns and the expansion continues. The first Byggmax store opened its doors in 1993. Just 17 years later, in 2010, Byggmax Group was listed on the Stockholm Stock Exchange. Buildor was acquired in November 2015, which was followed shortly thereafter by the acquisition of Skånska Byggvaror in January 2016.
Byggmax Group has established a strong market position in the Nordic DIY market, and the goal is to continue growing with high profitability. This goal will be realised through a simple and effective operational model and by focusing growth in the areas of retail expansion, e-commerce and product development.
About Byggmax
Byggmax was established in Sweden in 1993 and has since expanded to both Norway and Finland. There are now more than 150
Byggmax stores distributed over these three countries and the number is growing each year. Right from the start the Byggmax business concept has been to be the best and least expensive option when consumers wish to buy high-quality building materials. With a drive-in system where customers can load their items into their car themselves, a visit to Byggmax is always simple and efficient.
Byggmax positioned itself at an early stage as a clear low-price option - by consistently offering quality products at a low price, regardless of whether the customer does carpentry as a hobby or is a professional. Previously Byggmax has focused on a limited product range to always be able to provide the items that are most in demand for the most common DIY projects. With rapidly expanding e-commerce, a supplementary range is now available, allowing the customer to find everything imaginable for projects in the home.
Buildor.se has been a part of the Byggmax family since October 2015. Buildor.se was launched in 2013 with the goal of making it easier and more pleasant to shop for building supplies. Buildor offers a broad range of varied product categories at the market’s most competitive prices for building supplies and interior fittings online. It is just as important for us to provide fast and personal customer service as it is to ensure our employees have the requisite expertise regarding the products’ function and accessories to be able to help customers in the most effective way. Another equally important aspect is offering lightning-fast deliveries, which is something Buildor is known for. During the end of 2016, Buildor was launched in the Norwegian market, Buildor.no.
Read more on buildor.se
About Skånska Byggvaror
Skånska Byggvaror has been a part of the Byggmax family since January 2016. Skånska Byggvaror was founded in 1965 and is an online Nordic distance retailer of value-added building products for the DIY market.
With internal product development and carefully selected suppliers, Skånska Byggvaror creates attractive products sold under its own brands. The path from idea to launch is and has always been short. This gives Skånska Byggvaror unique control over the assortment, in areas including quality, design and value. Since 2012, Skånska Byggvaror has successfully sold its products in Norway through the Grønt Fokus brand.
Read more on skanskabyggvaror.se
Byggmax
Vision
The Byggmax vision is to be number one in the market for DIY enthusiasts.
Business concept
The business concept is to retail building supplies and other products to DIY
enthusiasts at the lowest price. Shopping at Byggmax should be quick, cheap, easy and friendly.
The Byggmax concept and business model
Business model
Business model Affordable high-quality products for the most common maintenance and DIY projects – this is what you can find in Byggmax stores, regardless of if you are in Sweden, Norway or Finland. We focus on consumers and in the product range you can find standard building materials, such as lumber, insulation, sheets and boards as well as paint — all at the same low price, regardless of who you are. With its focused range and the best prices on the market, we handle large volumes and can obtain economies of scale in purchasing and logistics.
Today, Byggmax has a strong market position, an extensive store network (with over 150 stores in the Nordic region) and a recognized brand. We intend to strengthen our market position over the long term by working systematically with sustainability issues.
Byggmax does not own any factories, instead purchasing goods from independent suppliers primarily in the Nordic region, though also from other European countries and Asia. Byggmax does not own the store premises either; it leases store premises from international and local landlords.
The service office is in Solna, Sweden. The business model serves as a platform to generate continued organic growth through both the expansion of the store network and increased comparable sales per store. Byggmax affects society where we operate through growth and job opportunities. We have over 1,000 employees and make many of our customers’ building dreams a reality
The picture above refers only to Byggmax business model.
Byggmax’s solid business model and the healthy conditions in the Nordic DIY market mean that Byggmax is well placed for continued growth, both organically through the establishment of new stores, and through continued growth in sales in comparable stores.
Byggmax’s financial targets
Byggmax has established the following long-term goals for the Group:
Follow-up of targets
Sales for the Group decreased by 4 percent, and profitability measured as EBITDA excluding non-recurring items was reduced to 6.8 percent (8.9). Sales have been affected by a weak consumer market and the choice to reduce unprofitable sales at Skånska Byggvaror.
Byggmax posted average annual net sales growth of 9.8 percent during the 2010–2018 period.
Byggmax posted average annual EBIT growth of -4.1 percent during the 2010–2018 period.
Buildor was acquired in late 2015, and Skånska Byggvaror Group AB was acquired in early 2016. The two acquired business activities have shown lower EBIT margins than the Byggmax segment. The numbers above do not include extraordinary items. The outcome for 2018 was affected by disadvantageous weather conditions and a dramatic increase in the price of lumber.
Strategies for achieving the targets
The Byggmax Group launched an updated strategy in June 2017. The updated strategy is based on the attractive position the company currently holds in a good market, and on a number of unique strengths:
The future strategic orientation is based on two cornerstones: a simple, efficient operating model, and focused growth based on our strengths in store expansion, online shopping and product range development.
Simple and efficient operating model
The Byggmax Group works on continual improvement. This entails, for example, improving operations by further expanding its use of economies of scale at its purchasing function by handling larger product volumes and through procurement from low-cost countries. The organization will enhance its resource-efficiency by implementing continuous business process improvements and reducing overheads. Furthermore, Byggmax will capitalize on newly opened stores becoming more profitable once they reach maturity and on increasing sales in already well-established stores.
For the Byggmax segment, the focus for 2018 was on building for growth. We opened 18 new stores and 12 garden sections. The new format for smaller communities and the garden sections have performed well and are part of the future offering at Byggmax. In autumn 2018, we also tested a somewhat upgraded store concept at two stores. This initiative, known as Store 3.0, mainly entails our addition of certain selected product ranges and organizing the stores into clearer sections.
For Skånska Byggvaror, 2018 was a conversion year to a modern leader in “Garden Living,” i.e. primarily such items as sun rooms, greenhouses and associated products.
Focused organic growth
The Byggmax Group will deliver focused growth in three main areas
Number of stores
The diagram illustrates the development of the number of stores since the beginning in 1993. During the past four years, Byggmax has opened an average of eight new stores every year.
Byggmax has a resource-efficient organization with the majority of business activities centrally managed. Aside from the sales force, which is based in Byggmax stores, most business processes are managed from the service office in Solna, Sweden, function-wide across all brands and stores, which promotes efficiency and the economies of scale that characterize the Byggmax business model.
Byggmax’s organizational structure is presented below:
Value drivers are factors that affect the development of Byggmax in the short and long term. The following are the most relevant according to management assessments. Many factors impact operations in both the short and long term and, as such, are listed under the category where they are considered to have the greatest impact.
Byggmax’s competitors are other retail chains, online stores and purchasing organizations, as well as independent stores.
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