Tokmanni Group continuously monitors market developments and the competitive landscape in the Nordics and actively develops its own business to maintain its competitive advantages. Tokmanni Group’s view is that retailers that are able to offer lower prices for products and multichannel service than other operators will be most successful in the current increasingly competitive market environment.

The retail market is in the process of a structural and digital transformation. In terms of the structural transformation, consolidation into larger companies and the internationalisation of local companies continued in 2024.

In terms of the digital transformation, digital business grew on many fronts. Loyalty programmes and mobile solutions gained more active users. Successful retailers collect and analyse customer data to improve their services, personalise their offers and create better customer experiences. There were also signs of a recovery in the growth of e-commerce. The importance of AI-based solutions in business started to increase in 2024 and the trend is expected to continue in the coming years.

The key factors in the market environment that affected Tokmanni Group’s business in 2024 were weak consumer purchasing power, geopolitical uncertainty and cold weather that continued well into the spring. Price continued to be the key driver in customers’ purchasing decisions, which was reflected as fewer products in the shopping basket and a greater emphasis on promotional products and grocery products. In addition, supply chain challenges and disruptions have highlighted the need for operational flexibility and the development of supply chains in recent years.

Competitive landscape

Competition is fierce in the discount retail market and operators seek to differentiate themselves by offering for example the best value for money, a wide assortment and attractive offers. Consumers’ price awareness and the desire to find products with an attractive price-quality ratio are driving the industry to continuously improve business and cost-efficiency.

Tokmanni Group’s main competitors in the variety discount retail market are, above all, hypermarkets and many local variety discount retailers, international variety discount retailers, online stores and specialty discount retailers. Hypermarkets carry a large product assortment, from fresh foods to non-food products. Variety discount retailers, with their low prices and wide assortments in selected product categories, offer an alternative to hypermarkets and speciality stores. Specialty discount retailers with affordable prices and a strong assortment of private label goods offer a comprehensive assortment in individual product categories.

The competitive advantages of the Tokmanni store chain compared to other operators are, in particular, low prices, an interesting and distinctive product range and a remarkably wide assortment of products from different product categories combined with a nationwide network of stores, an online store and customer service. The competitive advantages of the Dollarstore and Big Dollar store chains compared to other operators are, in particular, low prices, products’ low-price points, an interesting and distinctive product range and a wide assortment of products from different product categories combined with a nationwide network of stores.