In an interview with LDaily, Yevhen Ivanytsia, the Country Director of the Danish company JYSK in Ukraine, shares insights on conducting business during wartime and discusses changes in customer behavior caused by the challenging situation in the country, as well as their impact on sales figures.
LDaily: What are the peculiarities of doing business in Ukraine under wartime conditions, especially in regards to JYSK’s operations?
Y. Ivanytsia: The priority is the safety of employees and consumers.
There’s a greater focus on supporting colleagues, looking for flexible solutions rather than achieving results and strict control.
LDaily: How has customer behavior changed due to the complex situation in the country? How has this affected sales figures and consumer habits?
Y. Ivanytsia: Emigration and internal displacement have created a need for millions to satisfy basic needs for setting up in new places.
Over time, the partial return of residents of eastern cities and adaptation to disruptions in electricity and energy supply significantly increased the need for autonomous lighting sources, ways to keep warm – like blankets.
The need for positive emotions, seeking relief from constant stress, the desire to protect and make one’s home more cozy during the war become even more critical, resulting in increased demand for interior solutions for the home, Christmas decorations, and gifts.
The desire to be useful and involved, to be part of socially significant activities aimed at protecting and supporting the country, has increased the level of engagement of loyal customers in various humanitarian programs initiated by JYSK.
Frequent alarms lead to consumers becoming quicker in making decisions and when they enter a store, they try to make their purchase more quickly because there’s a chance that an alarm might start again and the store could be closed.
LDaily: What is the share of online sales versus offline sales for JYSK in Ukraine?
Y. Ivanytsia: Approximately every sixth JYSK customer places orders online. Most of these consumers use the Order and Pick Up service, or Click and Collect as we call it. In this scenario, products are reserved by consumers online on the JYSK website, which is very convenient because information about the stock in each store is available to consumers, the product is ready for pickup in less than half an hour, and the reservation is free for the consumer. Furthermore, the product can be picked up from the nearest store at a time convenient for the consumer without any delivery charges.
Of course, some consumers who order online choose to have their items delivered to a Ukrposhta or Nova Poshta branch if it’s more convenient for them or if the branch is closer to their home than the JYSK store, some consumers opt for home delivery with payment upon receipt, … – everyone finds the option that is most convenient for them.
LDaily: What trends do you observe in this direction?
Y. Ivanytsia: Delays at the border, border closures significantly impact online sales, as delivery times increase and delays are possible. There are no such issues with goods already present in stores. The company is looking for alternative logistics options, delivering goods by rail, paying several times more for transportation to meet demand and maintain customer trust. Social networks have a significant impact on online sales. Take the example of a Christmas garland or a recent example with a garden swing, where a consumer, who we usually don’t know, records and posts a video and the next day we track an explosive increase in demand for this item.
LDaily: How do you assess the competitive environment in the furniture and home goods market in Ukraine?
Y. Ivanytsia: The level of competition is balanced by the level of consumer demand. Of course, if we compare the level of JYSK’s competitors in Ukraine to most of the 50 countries where the company is present, we’ll notice that the list of competitors is significantly shorter. However, looking at the income level per capita, we see that Ukraine ranks last among the countries where JYSK operates. The same trend is observed if we compare the average check size or the number of items per consumer – unfortunately, for objective reasons, Ukraine is lagging behind. As for naming systemic national competitors specifically in Ukraine, IKEA, unfortunately, does not operate here, we hope temporarily. Epicenter occupies a fairly large market share, effectively outclassing international players such as Praktiker, OBI, Leroy Merlin. Thus, we consider JYSK’s share in Ukraine so small and insignificant that we don’t even spend time measuring it.
LDaily: How does JYSK handle the export of goods from Ukraine? Which markets are a priority for the company?
Y. Ivanytsia: For JYSK, the priority markets are those where the company operates. Speaking of Europe, JYSK is present in most countries. The logistics of supplying European stores are organized through 10 large distribution centers. Products purchased in Ukraine are supplied to all operating distribution centers.
LDaily: Does JYSK plan to increase its investments in Ukraine in the near future? What areas of development do they envisage?
Y. Ivanytsia: Yes, it does plan to. JYSK did not stop investing in Ukraine either after the beginning of the occupation of Crimea and parts of Donetsk and Luhansk regions in 2014 (despite the loss of stores in Yalta, Sevastopol, Simferopol, Donetsk, Makiivka, …), or after the full-scale invasion in 2022 (despite the looted and destroyed stores in Kherson, Bucha, Hostomel, Nova Kakhovka, Melitopol, and many other damaged facilities). By the end of this year, the company plans to expand its network in Ukraine to 100 stores. But the investments are not only related to opening new stores but also to rebuilding, updating, expanding existing ones. Thus, for this year, the plan was to open 12 new stores and rebuild 10 existing ones. We are working hard to make these plans a reality.
LDaily: What are JYSK’s plans for the Ukrainian market in the medium and long term? Are there any plans to open their own production in Ukraine?
Y. Ivanytsia: JYSK is exclusively a retail organization that does not engage in manufacturing on its own. At the same time, it should be noted that JYSK is part of the larger Lars Larsen Group holding, which includes other retail chains as well as manufacturing companies. Some manufacturing companies are present in Ukraine as well.
LDaily: Please share JYSK’s achievements in Ukraine during 2023 and plans for 2024.
Y. Ivanytsia: The capital investments in 2023 amounted to 184 million UAH:
– The activity of the previously completely destroyed store in Hostomel (FORA shopping center, Hostomel) was restored, and the damaged store in the Riviera shopping center, Odesa, was repaired.
– Six new stores were opened in Kamianske (Terra shopping center), Kyiv (Karavan shopping center), Lviv (Arsen shopping center), Kolomyia (Prut shopping center), Drohobych (Park shopping center), and Sofiivska Borshchahivka (Sofia Mall).
– Five stores were rebuilt in Kyiv (Arcadia shopping center), Dnipro (Pravda shopping center), Odesa (Platan Plaza shopping center), Brovary (Terminal shopping center), and Bila Tserkva. In four out of five stores, the area of the existing operating stores was increased, and all stores received the new JYSK 3.0 format.
The investment plans for 2024 can be estimated at 240 million UAH.
LDaily: Were you able to retain your entire team? What was the most challenging aspect? What safety measures are in place to protect employees? How do you support the morale of your staff?
Y. Ivanytsia: JYSK’s values are clear guidelines followed by the company’s employees, especially the management at all levels. These values primarily cover areas such as interpersonal relationships among colleagues, teamwork, prioritizing consumer needs, and professionalism in retail, among others.
During the war, adhering to these values became even more important. JYSK employees, like all Ukrainians, need support in stressful situations. They also suffer from sleep deprivation at night, their colleagues and relatives are also called to the Armed Forces of Ukraine, and stress and tension can be alleviated by a colleague or a manager if they show empathy, flexibility, and respect for individual differences. Thus, openness, a focus on motivation, and asking for feedback are more helpful than ever in maintaining trust between a manager and an employee.
The company continues to conduct training sessions, engages psychologists to support the staff, maintains contact with colleagues abroad and in the Armed Forces of Ukraine, initiates and conducts charity campaigns, continues to grow and create new jobs, and provides opportunities for career advancement.
LDaily: What charitable projects do you support? And why did you choose this direction?
Y. Ivanytsia: Since the beginning of the war, charity has become an integral part of JYSK’s strategy and activities in Ukraine. We initiate projects with various charitable organizations, which have become our trusted partners over time. Together, we focus on areas such as humanitarian demining, psychological rehabilitation, prosthetics, and more. We involve loyal and caring customers of the network in charitable actions. In addition, JYSK employees regularly participate in charitable and volunteer projects, helping children, the military, and medical institutions. The company has established a tradition of Donor Day and has also conducted two campaigns to promote blood donation. We also see our role in informing customers, encouraging them to participate in such good deeds, and emphasizing their relevance.
