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60 YEARS OF FASHION

1950S

KappAhl's history starts in 1953, when Per-Olof Ahl opens his first store, Kappaffären – a coat shop - on Omvägen in Gothenburg. Per-Olof Ahl was born in 1919 in Mjölby and died in 1996. The business concept is "Good quality at low prices". Thanks to unusually low prices and high volumes, the business attracts great attention from the public and it is threatened with a boycott by others in the trade. Every day, over 400 coats were sold. Already in 1954, the turnover reached 4.5 million SEK. The successful recipe is cash purchases, low profit margin, large volumes, few middlemen and skilled employees. 1956, the first store opens in Stockholm, on Hornsgatan. 1957, the book "Coats at any price" is published. It is published in several editions during the 1950s and the 60s. 1959, the first dedicated men's store, Herrman, opens on Korsvägen in Gothenburg. At the end of the 1950s, KappAhl has 14 stores in Sweden. Per-Olof has become a well-known figure in Gothenburg, with the nickname Pelle Ahl.

 

1960S

Pelle Ahl continues to attract attention and countless newspaper articles chart the story of his success. To generate interest among the general public KappAhl organises large local fashion shows.

By 1963, ten years after the company was founded, KappAhl has 25 stores and an annual turnover of SEK 50 million. Most of the range is still manufactured in Sweden. Coats remain the most important product group, with the green loden coat proving a tremendously popular success in the autumn of 1967. By the end of the decade there are 50 KappAhl stores.

 

1970S

Tough times for the Swedish clothing industry. KappAhl sales plummet 30 percent compared with figures for 1969 - but even so, one in every four Swedish women still wears a KappAhl coat.
Following a poor financial result in 1974 managers are encouraged to work 25 percent longer hours - for no extra pay! KappAhl moves into childrenswear.

Thanks to all the hard work, KappAhl weathers the storm and by the mid 1970s fifteen to twenty fully laden trucks a day leave the central warehouse transporting 20,000 new garments to 55 KappAhl stores. The decade ends with a major devaluation of the Swedish krona that leads to a reduction in domestic consumption. For KappAhl, however, earnings for 1979 are the best yet, with a profit of SEK 12 million.

 

1980S

The Swedish economy embarks on a roller-coaster ride. Strikes and lockouts paralyse the country and fashions change faster than ever before. The industry is in crisis.

In 1981, however, the new KappAhl central warehouse, the most modern in Europe, stands ready in Mölndal just outside Gothenburg. The decision to start selling clothes for the fuller figure (with the popular Swedish jazz singer Sonya Hedenbratt as the ´"face" of the campaign) attracts a huge amount of attention.

The number of stores grows - and so do sales. In 1985 they break through the billion Swedish kronor barrier. The same year KappAhl opens its first store outside Sweden, in Switzerland. A few years later it is Norway´s turn and then Finland´s.

In 1988 Per-Olof Ahl is taken critically ill and hands over responsibility for the company to his son, Pieter.

 

1990S

Pieter Ahl hands over the rudder of the company when KappAhl is sold to the Swedish Cooperative Union (KF). By the time KappAhl celebrates its 40th jubilee in 1993 sales have risen to SEK 2 billion and the company now has 131 stores in Sweden, Norway and Finland. (Operations in Switzerland have been wound up.)

However, specialist retailers muscle in on the fashion chains´ market and KappAhl´s result for 1995 is the worst ever. Only a few years later, however, earnings bounce back and, as a result of major internal changes and successful marketing of the "KappAhl Family" concept, the company reports a profit of SEK 150 million.

In 1997 KappAhl acquires all the stores in the Danish MacCoy chain. Two years later KappAhl opens two stores in Poland and becomes a big name on the Norwegian market after KF takes over the Adelsten Group.

 

2000S

During the first two years of the new millennium KappAhl opens eight stores in Poland and one in the Czech Republic, but in 2002 a new executive management team decides to put any further international expansion on ice. Now the focus is firmly on Scandinavia instead, with Sweden as the hub. Operations in the Czech Republic and Denmark are wound up.

In 2003 KappAhl celebrates its 50th jubilee. In 2004 KappAhl gets new owners, Nordic Capital and Accent Equity Partners. On the 23rd of February 2006 KappAhl was listed on the Stockholm Stock Exchange, OMX.

During the decade’s beginning KappAhl continues its international expansion in Poland and the Czech Republic. The expansion is abandoned in 2002 when KappAhl gets new management. Now the focus is on the Scandinavian market with Sweden at the center. Operations in the Czech Republic are wound up, as is the Danish MacCoy. In 2003 KappAhl celebrates its 50th jubilee. In 2004 KappAhl is sold by KF to Nordic Capital and Accent Equity Partners. In 2006 KappAhl is listed on Nasdaq OMX Stockholm.

In 2008-09 profitable growth continues, despite the extensive weakening of the market. The Czech Republic is the fifth market - the first store is opened in Brno October 16, 2009.

 

2010s

During 2010 the expansion continues. KappAhl opens 26 new stores and counts over 300,000 visitors per day in the stores. KappAhl is awarded "Sweden's best place of work" for the second time and the annual turnover exceeds SEK 5 billion for the first time. By the end of the financial year KappAhl has 345 stores and a further 55 stores under contract.

KappAhl successfully combines fashion, ethics and the environment and in 2011 20 per cent of the range consists of ecolabelled fashion. KappAhl launches the new fashion club – Life & Style by KappAhl and introduces Shop Online in Sweden which offers the customers shopping all year round, day and night.

The mission statement that Pelle Ahl formulated at the start - "We will give many people the possibility to be well-dressed" - remains as strong today as in 1953.