Clas Ohlson’s next step in optimising UK store network

As a next step in the optimisation of the UK store network, Clas Ohlson
announces plans for the closure of seven stores. Clas Ohlson will focus on
accelerating the clustering of new smaller format stores in the London region.
As part of the next step in the optimising of the UK store network, Clas Ohlson
is planning to close a total of seven store locations during financial year
2016/17.

“We are in the process of optimising our network of stores in the UK market to
improve long term profitability of our UK business. As part of this development
we are now taking the opportunity to exit a number of stores that have not met
expectations in terms of sales and profitability. However, our commitment to the
UK market remains solid. It is our intention to continue our expansion by adding
new stores in the London area”, says Klas Balkow, President and CEO of Clas
Ohlson.

Closure of five stores are confirmed, being Cardiff and Norwich (June 2016),
Doncaster (September 2016), Watford (no later than March 2017) and the store in
Croydon that is closing as a consequence of the redevelopment of the shopping
centre (closure date to be confirmed). Another two store locations are pending
closure subject to negotiations.

“We will do our best to support affected employees in finding new employment
opportunities, including offering job openings in other Clas Ohlson units where
possible”, says Klas Balkow.

Cost related to the restructuring of the UK store network is estimated to 107
MSEK being booked as a non-recurring item in the fourth quarter 2015/16. Yearly
savings is estimated to 70 MSEK when in full effect as of financial year
2017/18.

Following the opening of the new smaller format stores in St Albans and Ealing
earlier this year, where omni channel between stores and e-commerce makes Clas
Ohlson’s offer more accessible for customers, the plan is to open an additional
one to two stores in the London area during financial year 2016/17.

Press and analyst telephone conference 6 April 08:30 CET

A press and analyst telephone conference will be held this morning at 08:30 CET
where Klas Balkow, President and CEO of Clas Ohlson, will be available for
questions. Please call +46 8 56642664 or +44 20 30089810 to participate.

The information in this press release is such that Clas Ohlson is obligated to
publish according to the Securities Market Act. The information was submitted
for publication on 6 April 2016 at 7:00 a.m. (CET)
For more information, please contact:
Sara Kraft Westrell, Director of Information and Investor Relations, phone
+46 247 649 13
Clas Ohlson was founded in 1918 as a mail order business based in Insjön,
Sweden. Today, the company offers products and services for the small everyday
practical problems, in five countries via its over 200 stores and online. Clas
Ohlson offers a wide range of affordable products in five product areas:
Hardware, Electrical, Home, Multimedia and Leisure. The company is listed on
Nasdaq Stockholm, has sales of over 7.5 billion SEK and more than 4,700
employees. Visit Clas Ohlson at www.clasohlson.com