How can it be that every year almost 5 million people travel to a small village in inland Halland to go shopping? What’s the secret behind Gekås’ low prices?
There are some rules which always apply to Gekås: small margins and honest pricing, every day of the year.
“Our prices are always competitive and you’ll find most things you’re looking for,” says Boris Lennerhov, group CEO of Gekås. “Many people like to be able to buy all their Christmas presents in one place for example, so we always try and offer a really wide range of good products. We say that we sell everything for the home that fits in a car, and I think that sums it up pretty well.”
Gekås’ low prices
“Our philosophy is always to have honest pricing. We don’t put prices slightly up to earn more, we always have the same low markup on all our products. If our buyers do a good deal and buy in a batch of shampoo really cheaply, our customers will benefit from this through a really low price. Our low prices are the reason for our success and they are something we never tamper with,” says Boris.
“There are no loss leaders, campaigns, sales or Black Fridays at Gekås. We never put our prices up slightly to finance the expansion of the store, for example. Gekås always uses the money it has saved to reinvest in the business.”
Fluctuations in the exchange rate affect trade and prices
“The dollar has rallied somewhat recently, and clearly this affects prices because a lot of products will be more expensive for us to buy as a result,” he explains. “But clearly this applies to everyone involved in retail, so the difference between us and other stores will remain the same.”
Ullared is a good location
“In addition to our low margins, we don’t pay a high rent like stores in attractive city-centre locations! We are extremely cost-effective and we have a smart logistics system which manages and transports our products in a highly efficient way. It goes without saying however that we comply with the same legislation and regulations as other companies when purchasing products from all over the world because our customers demand ethical products.”
Price awareness and comparisons
“You may find an individual product being sold more cheaply in a sale elsewhere. But when you’ve filled a basket full of our products you can be certain that you’ve got a good deal. I guarantee it! It will always be worth the journey.”
The average customer travels approximately 210 kilometres each way to shop with us. In total, customers purchase around SEK 5 billion worth of products a year. There is accommodation and activities of various kinds in the vicinity of the superstore, but the shopping is what people come for.