Expert Retail Denmark, the company behind the electronics chain Expert, will open up a new warehouse-type store in Glostrup called Power on Thursday, and plans are in the works for 24 more.
The entry of Expert into the market should benefit consumers in terms of lower prices and better service, according to retail watchers.
“According to the plans we’ve seen, lower prices are not the only competitive arena they plan to compete in,” Mette Skovgaard Frich, a spokesperson for Retail Institute Scandinavia, told TV2 News.
“It appears to be a completely new concept in which customers can handle and experience the electronics.”
Electronic wars
Frich said that Power has promised customers much better customer service and lower prices.
“The marketing efforts will be in full force,” said Frich. “They are letting people know what they are doing in advance as a charm offensive to come out on top.”
Jesper Boysen – the head of Expert Retail Denmark, who left Elgiganten for Expert Retail – knows he has an uphill battle ahead and that it will cost money to break into the Danish market. But he is confident Expert’s owners have deep enough pockets to handle a retail street fight.
Consumer council Forbrugerrådet said the competition will be good thing for Danish consumers.
“It is positive when someone enters the marketplace and can stand up to the other big stores,” said Martin Salamon, Forbrugerrådet chief economist.
“There will be a larger and wider selection, and the prices are already starting to go down.”
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Historically, the price for electronics in Denmark has been higher than in other European countries, even though there are already a number of chains located in the country.
