Denmark: Normal is doing good business from the start

Discount Drugstore Retail Chain Normal entered the Netherlands 7 years ago in the shopping mall of the main railway station in the Netherlands. Hoog Catharijne in Utrecht had the scoop. It was the first Normal store outside Scandinavia, where the counter stood at about 100 stores at that time.

Co-founder Torben Mouritsen mentioned that the competition in the Netherlands is fierce. "In the Netherlands, almost all cosmetics and personal care products are sold in drugstores, much more than in Denmark," he observed.

But nevertheless, Mouritsen had full confidence. "With our range, we distinguish ourselves from what is already available in the Netherlands. There is partial overlap with the competition, but we also have many products that are not on their shelves." He did not want to say who he saw as his biggest opponent.

In the meanwhile Normal has continued to grow see below their present performance:

▪️Drugstore discounter Normal currently has 903 stores in the EU (including 600 in the Nordics, but rapidly expanding in France, Spain, Portugal and Italy);

▪️Net revenue increased from €500 million to €1.6 billion between 2021 and 2024 (financial year ends 31 July);

▪️The number of stores grew from 306 to 773 between 2021 and 2024 (average from 270 to 663 outlets);

▪️The gross turnover per store therefore increased from € 2.25 to € 2.9 million between 2021 and 2024;

▪️At a sales floor of avg. 400-450 m2, the floor productivity is around € 6,800 p/m2;

▪️The P&L consists of a margin of more than 42%, 18% personnel costs, 14% transport costs (rent, logistics, etc.) and an EBITDA of 10.4% on net sales;

▪️The payback time per store is then less than two years!

▪️After the opening of the first NL store in Utrecht in 2018, the counter for Normal was only at 17 stores at the end of July '24. In the past year, however, the expansion quickly continues to 31 stores at the moment;

▪️Normal's level of ambition is sky high: 3,000 stores in 10 years; in other words, more than 200 openings per year;

▪️Normal is more than 70% owned by Heartland A/S, the investment company of the owner of Bestseller (including VeroModa, Jack&Jones, Only).

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