Ladies and gentlemen, good afternoon. Thank you for joining TOKMANI Capital Markets Day. I hope our presentations regarding TOKMANI and variety discount retailing, You will find them useful and informative. Our target is that after today's session, You will have a clear understanding on 3 points. 1st, the key success factors for TOKMANI and other variety discount retailers in general.
2nd, the TOKMANI new strategic targets. And the third, how do we plan to reach these targets? I will start with key success factors. First, I'll give you a short recap on the strategy period, which just ended. We called it focus on customer confidence.
It was launched 2018. At that time, TOKMANI didn't have any other choice but to concentrate on customer confidence. We had to prove our customers that TOKMANI is a real variety discount retailer and not, for example, a local department store. The most important part of this was the price level. We just had to convince our customers to take and trust in the Tochmani low prices.
In the beginning, we had to invest in this ourselves quite a lot. But today, according to the customer surveys, TOKMANI's price image is one of the best in the market. The customer confidence is definitely about the unbeatable Prices, but it's not about it's not only about the prices, it's also about the assortment. Limited assortment is obviously the most efficient way to run retail business. Our customers gave us the feedback that they want to have better service from TOKMANI In form of wider assortments.
And during The last 3 years, we've been adding more than 10,000 SKUs in our assortment, Most of them in obviously in our destination categories to make them better. And also The majority of the added SKUs are in online. It wasn't probably the most efficient way to improve well, the company efficiency, but it definitely improved customer satisfaction and customer confidence. The third part of improving customer confidence was and still is the constant approval of our store concept and stores. During the last three years, We've been renewing more than 1 third of our stores.
We have been closing the smaller ones, The smaller stores, the older stores and at the same time, we increased the store network with altogether 17 stores during the 3 years' time. With our marketing, we decided that we didn't want to be shy. We started proudly to tell our customers about the wider assortment and the low prices, not forgetting The positive attitude and down to earth touch that TOKMANI has. Today, the brand image of TOKMANI that we've been creating for the last 3 years really make us proud and happy. We made 100 of remarkable and meaningful actions to improve our customer confidence.
But I have to say that the most impressive action was to involve All TOKMANI employees to join the work and get their fair share in TOKMANI success. This has made TOKMANI company culture and values very strong. And it all started to show also in the results. Here's the like for like customer visits During starting from 2014 till 2020, a clear turnaround starting from 2018 with the like for like customer visits. Personally, I'm very happy about the results from the customer NPS survey, which was actually conducted 2 weeks ago.
Pretty bad timing with this pandemic, but still Toghmane received the result of 55 as customer NPS. That is very good result from our point of view. With a wider assortment, the average basket size started to grow as well starting from 2018. Obviously, last year with more than 10% growth with average basket It's due to the pandemic. And obviously, the customer behavior has changed Actually quite a lot during the last 12 months.
It's less visits from customers, but bigger basket. Last year showed also that TOKMANI became a variety discount retailer for everybody in Finland. 20% of our customers last year We're new customers. That's fantastic. It's also a great support for reaching the new targets for this coming strategy period.
And of course, it all showed also with the company results. Strong revenue growth as we can see from here and well, even stronger EBIT growth. I think it's awesome. Obviously, decisions made and actions taken were right. It's my pleasure to introduce you the team who also made these decisions and who the team who was leading the change.
Here's the TOKMANI executive team. Together with this team, we feel very confident To start with a new strategy period and the new targets, we're very confident at the moment with the new strategy. And actually, let's move to the strategy targets. The period is 2021 to 2025 and here are the new targets. First of all, Our target is to continue the strong growth.
Revenue target of 1.5 €1,000,000,000 at the end of 2025. Our target is to continue also with the strong EBIT growth. The EBIT target is €150,000,000 in the end of 2025. The target for store network over 220 stores in Finland. And in the end of last year and actually Today, the store network is 192 stores.
The efficient capital structure stays the same basically. Net debt divided by EBITDA below 3.2 And at the end of last year, it was 2.0. Also the dividend policy stays the same, Approximately 70% of net result and the Board of Directors Dividend proposal for 2020 for the Annual General Meeting is €0.85 And that's 70.2% of the net result for the financial year. And by the way, the Annual General Meeting for TOKMANI is tomorrow. So if we compare these new targets with the previous targets, the change is basically with the revenue target, With the EBIT target and with the store network and net debt divided by EBITDA as well as dividend policy stays the same.
In addition to this, we will also start an active evaluating evaluation of international cooperation and expansion as soon as the COVID-nineteen is in better control in Europe. Here was a quick recap on TOKMANI key success drivers and the new strategic targets. Next part is with Janne Pichtala, our Strategy and Development Director. Janne will give you a bit wider perspective on the variety discount retail market. Janne, please go ahead.
Thanks, Mikka, and happy to be here. And yes, as Mikka mentioned, I'm here to tell you about variety discount Market and our views regarding the market development. And this section is actually based on our continuous research on the market. So we actively look at our markets and our competitors or their companies in the markets. And We basically feel that based on this section, we want to give you an understanding on our New financial targets and actions that Mikael will later present For you.
And if you look at the content, we are going to have a short recap on what is variety discount retailing. Then we move on future trends in our segment, And these are global trends that we are going to talk about. Then we are going to look at the key business drivers for our segment. And finally, Look how the segment of our us and our peer companies have performed in their markets. The list of pair companies here is not all inclusive, but it does include some of the most relevant pair companies we have.
Okay. If we move forward to variety discount retailing. So What is variety discount retailing? It's a good question. By default, the definition of The market for variety discount retailing is a tricky one.
You could take all variety discount retailers and sum their revenues up to end up to some market. But then again, it wouldn't be realistic in a sense that you could also look at the categories that All these variety discount retailers are selling and look at the market for those categories. So we end up from In Finnish market, around €2,000,000,000 to more than €20,000,000,000 market with this setup. And If you think about it, it's actually a combination of these both. In a sense that if a person who wouldn't Have money to afford a new krill, now has a chance to buy the krill from variety discounting or Variety Discounters, meaning that the market would grow this way.
Or if you think about it, there could be a person who would Already decided to buy a krill, but now buys it from variety discounter as he or she gets it with lower price. So we would take market from other competitors. So as a sum, we end up that The market is probably growing for us and it's probably huge. And if we look at our research And how we see things, we can conclude that there is a strong evidence that Our segment is one of the fastest growing ones. According to our analysis, only online segment can rival ours in growth rates.
You can later see the growth rates in the final section of my presentation here. And then one can ask that what makes variety discounting fast growing? Basically, if you are not into the market, you could Argue that what's the difference between a department store and variety discounter, both sell a lot of different categories and products. And this first section is basically stating those differences, how we see that what differs us from department store. And the first one of those differentiating factors is this Top of mind place to shop different categories, meaning that variety discounters tend to Again, this top of mind perception for selected categories where they are very strong.
And typically, if you look at the global market, There are typically seasonal categories and categories for celebrations. Then again, many variety discount retailers have selected a set of categories where they want to be the 1st place to Shop those products. And finally, we see that a lot of variety discounters are pushing their own private labels and exclusive products To market making situations such that if a consumer wants those products, he or she have to Visit this variety discount retailer. Then the next one is obvious, low prices. So variety discount retailing is all about variety, meaning assortment and value, meaning low prices.
And there are multiple different ways to make prices lowest. And here is some list that what typical actions we see on the market, What our pair companies are executing and we as well. So we have price cuts, promotions, price tailings, fixed price points, Bigger packages and price comparisons to mention few. And then finally, We have this shopping experience that should differ from department store, meaning that in variety discount retailing, It should be exciting to visit online or store, meaning that you can make Treasure hunting there, meaning that you find bargains and limited items during your visits. And then It's all about making the visit fun and surprising.
So that each time you come to the store or online, It's unique that there is something different, something new to find when you visit online or store. And this concludes the differentiating factors that we see defers us from department stores. And finally, in this section to mention, basically all variety of these country tellers execute these elements in different ways. So there are a lot of variations, but these top elements stay the same. Okay.
This was a short introduction to variety discount retailing. And now we are going to look a bit about future trends. And keep in mind that this is going to be a global perspective. So some of these might Sound a little outdated from Nordic's perspective as we have a very high standards, for example, in sustainability and so forth. So but yes, let's look at the future trends and what our peer companies are planning to do in next 5 years.
Okay. And I'm going to just go this through quite quickly because of the time limitation we have here. To start with, we see that our segment's growth accelerates. And this is due to the more and more So this is due to the fact that low prices are becoming more and more important for consumers. And this reflects our segment's growth, so that we see that the growth rates are accelerating and our segment is actually Gaining quite nice growth figures that you can see later in my presentation.
The next one is About unbeatable prices, we see that variety discounters that have had low price level Now try to have lowest price level, at least in some products. This is new in a sense that typically You don't take a stand where everything is at the lowest price. But in our segment, we haven't really seen that This at this extent that we now see that there are multiple products that you can actually find at the lowest price in the market from our pair companies. Then regarding assortment. We see that Our pair companies are pushing new categories, new products to their assortments and especially food categories have been Very popular.
And this all aims to the fact that our pair companies try to fulfill more and more missions For consumers, so that one stop shopping experience would be strengthened. So this all aims to the fact that you could buy everything with one visit. And I think the pandemic situation Has strengthened even this phenomenon. Okay. And then if we move forward, we have private labels.
And yes, Variety discount retailing is partly about private labels in a sense that it's a very Important and significant part of the business. And we see that our pair companies are pushing more and more Their own product ranges in different categories, even to the ones that are typically dominated by strong brands Like in cosmetics category, for example. And then if we Look at the next one, it's e commerce. I think it's good to note that traditionally, Online hasn't been very strong in our segment that there are many variety discounters who doesn't even have online sites and are still growing very strong. But latest developments show that variety discount retailers are taking online seriously.
And If one thing to mention about online and variety discount retailing is that variety discounters are used to making profit. And they don't accept models which don't yield high profits or are very low or even negative on their profits. So meaning that variety discounters are experimenting ways to make online profitable. And we see that some have succeeded in that. And yes, this means heavy investments to online in the upcoming years.
And followed by online, we see digital solutions. And yes, in variety discount retailing, all the digital solutions aim to increase efficiency or Some other key performance indicator that meaning that Variety discount retailers don't just do digital solutions by fun. They want to get results from those. And We typically see when we look at the market globally, we see that these type of solutions are implemented in stores or in supply chain. And we also see that customer data takes a stronger stand in various discount retailers, meaning that there we are likely to see teams focused on utilization of shopper data and insights.
And then We see that our peer companies across the globe start to take Stronger stand in their local communities, meaning that They try to support the communities and give back to communities. They already provide low prices to communities, but they are taking actions to to support the well-being of citizens in their communities. And we see that With this, they want to be part of the community and create loyalty towards their brands. And Then finally, we have sustainability. And yes, many of our peer companies, especially the leading ones, Are taking sustainability in their strategic agenda.
And we expect that variety discount retailers Actually, I'll start starting to catch up the leading retailers in Europe with this topic, Meaning that there will be investments done to the sustainability. And this concludes the future trend section of Variety Discounts Retailing. And if we move forward, the next section is about the Key drivers in our segment. And just to remind you that we presented Key drivers during our last CMD 2018. And this is basically an update Based on our understanding on the key drivers.
And let's start with key revenue drivers, where we basically see that there are 3 key drivers for growth, Where the first one is store network expansion, then we have e commerce and then we have this variety discount concept, which we went through earlier. And to start with new store openings. We see that this is still the Most significant driver for growth for most companies in our segment, roughly 75% of growth is based on New store openings, if you look at the growth figures. So very important factor for building growth in our segment. Then online.
Based on our analysis, when it comes to e commerce, we have seen that retailers who have omni channel or whatever you want to call it, unified retailing, bricks and clicks, tend to be the most successful ones in the long run. And we see that this model becomes increasingly important Once variety discount retailer starts to have a large store network that can be utilized to support e commerce And this kind of brings the brings it back to the omni channel retailing. And we strongly believe that this is the future of our segment in the long run. And finally, We have the concept. And it would seem that low prices are never out of fashion in a sense that We have pair companies who have done let I think Dollar General has like 29 or 30 years consequent Years of like for like growth behind them.
And we typically see that this type of business model yields 3% to 5% yearly like for like sales growth in other markets. Okay. And these were the revenue drivers. And Then we have also the profitability drivers that we have seen in our segment. And if you look at those, we have category sales mix, Direct sourcing and private labels, stock lots and parallel imports and everyday low cost as the last one.
And from here, The category sales mix is probably the most significant factor determining the gross margin levels of Different variety discount retailers. If you are a variety discount retailer who has a strong emphasis on grocery Categories. You typically have 5% to 10% lower gross margin levels than a company who doesn't have that type of focus. So that's good to keep in mind. Then, of course, we have direct sourcing and private labels that go hand to hand in a sense that When you do direct sourcing, you typically do it with your own label.
And this is, of course, something that will boost your gross margin Higher. And then we have stock lots and parallel imports, which are also boosting your gross margin to hire. And these are basically the key drivers for gross margin. And then we have operating expense where everyday low cost is a key theme, meaning that keeping the operating expenses as low as possible Yes, the best results in our segment. Okay.
And here was the short presentation of our Segment's key drivers. And now next, we are going to look at the actual figures, which might be quite interesting. So to start with, and as I mentioned, the list of companies here is not all inclusive, but it should include all some of the most interesting companies. And if you look at the growth figures here, we can see that during the last years, the growth has been on average 16.2 percentages, which is quite high in retail market, so to speak. And please note that as we are in the middle of the season where Companies published their figures.
Not all the figures are from the last year, but we thought that this would still give you a good overall impression On numbers. Okay. So Very strong growth for our peer companies during last years. Then if we drill down where the growth has come, we see that new store openings and the share of new stores is very high with most of the companies, meaning that it has been a key or most significant driver for Revenue growth for these companies. And in the next slide, We have a like for like growth, which has been also very high In our segment, and you can see us and Europrize to stand out in this crowd.
And it's good to know that the current pandemic situation, of course, has helped us in these figures. But you can see also that for the rest players or pair companies there, the like for like is Around there where it should be, even though they might have had to close some stores during the pandemic. Okay. And then if you look at the growth figures in a longer run, we see that it's even higher If we take the average, 17.5 percent and very consistent Performance from our peer companies there. So these figures basically Demonstrate that our segment is growing if you belong to variety discount retailing.
And then one can ask that, okay, so this growth figures are quite good. How is the profitability? Well, 9.1%, meaning that the segment is actually making Very strong growth with very high profitability, an average of 9.1% profitability. And by the way, here you can see quite well the difference between companies that have a stronger focus in grocery Categories and who's not. So there are there is companies like Home Bargains, BTM, Dollar General, Who have strong grocery offering and their gross margin is then closer to 30% and then you have companies who don't have that strong focus like Europrize, Ollie's Bargain Outlet and Rosta, whose gross margin is way above 30, closer to 40 or even over 40.
And it's good to know that if you sell groceries and you have strong focus, you Probably generate more sales and more gross margin euros even though your profitability margin is not that high. That's good to note here. But yes, let's move forward. So we have here a segment, which is on a long run growing 17.5% And making 9.1% profit. So in next slide, We strongly believe that these type of figures interest investors, and we believe that Some might be interested to be part of this type of segment.
And we have Closely monitored what's happening in the market and we see that the pandemic has affected the market in a way that now is probably not a good time to Consolidate or move to new markets. And but saying those figures, we anticipate that the market consolidation We'll accelerate after COVID-nineteen pandemic is over. So here is just a few latest transactions That has happened in the market during the last years. And finally, To see to the future, we have included the slide where we have compared our pair companies' growth after they have Reached €1,000,000,000 And you can actually see from the slide that Where our pair companies have been able to grow in the next 10 years by being variety discounters. And Yeah.
We are now at year 0. And I think it's quite interesting to see where we end up after 10 years. And here was the variety discount review For you. Thank you. And let's have a short break here, 5 minute break.
I think 13. We will continue at 13:45.
Thank you. Welcome back to TOKMANI Capital Markets Day. In the second part of The Capital Markets Day, we will Well, basically, we will tell you how the TOKMANI story will continue and how are we going to reach the ambitious targets for the new strategy period. We call it actually in Finnish, We call it Tuleweissoden Hallapakauppa. In English, it's we're basically building a next generation variety discount retailer.
We believe we'll reach the ambitious revenue target with strong focus on customer confidence and customer engagement. To improve the customer confidence and engagement, there are 6 elements to drive customer confidence and customer engagement. We know that these are the elements, The most important elements for our customers as well, when they evaluate TOKMANI every day when they are visiting TOKMANI. Our customers, They evaluate whether TOKMANI is having an interesting and wide enough assortment. The evaluating whether TOKMANI has the lowest possible price level, whether the shopping experience or whether it is fast and easy to shop and the shopping experience is personalized and exciting.
And of course, when visiting the stores, our customers evaluate whether the store personnel are friendly and helpful. And last but not least, our Customers today, more than ever before, they evaluate whether TOKMANI offers a sustainable choice for shopping. Next, we'll present you What kind of action points are we taking with each one of these elements to improve the customer confidence and customer engagement? Let's start with the widest possible assortment. Now our plan during the First part of the strategy period is to double TOKMANI's assortment.
During the last strategy period, we already had excellent experiences from our customers when we're offering a little bit wider assortment. Now this time, we're going to do it big. We're going to be expanding our current destination categories. And the current destination categories, by the way, they are garden, DIY, home decoration, washing and cleaning, health and beauty care and apparel. We will also be introducing new destination categories.
We will be introducing new private label ranges and A brands. Right now before the start of the spring season over here in Finland, we have approximately active In our active assortment approximately 25,000 SKUs. So this means As said, during the first part of our strategy period, it will be it will mean that we will have more than 50,000 SKUs in our assortment. Obviously, most of them will be in the online store. The next one is the lowest possible prices.
This part is extremely crucial for TOKMANI, obviously, since we are a variety discounter. First of all, it's in our mission to provide lowest possible prices to our customers. And it's a crucial part of our competitive advantage as well. The lowest possible prices mean to TOKMANI, it means Best price with entry level products, best value with private labels, best deals with a brands and BEST campaigns. To make sure that we succeed with this, we have an algorithm, which is basically comparing more than 10,000 SKUs every week with In 6 more than 600 competitor stores, this is making sure that we Stay and we are in the lowest possible price level in Finland and we can compete with the prices.
The next one is fast and easy to shop. This element It's probably our biggest effort during the strategy period. Building a winning concept for Omnichannel Retailing. We all know That customers it's a new normal to our customers to use Online and store visit combined. It's very easy to basically to Check the new products, product availability and the prices on your mobile and then go to a store to pick up the goods or the other way around.
Maybe you're visiting the TOKMANI store, you see something nice and after the store visit At home, you will do an online order for the products. Now this is the new normal and it's Getting very smooth and effortless all the time. Our aim is to win to basically to build a winning concept on this one. It doesn't matter if you call it omnichannel retailing or unified commerce or bricks and clicks retailing, It's all the same, the combination of online and stores. We think that we have a very good position to this because we have a nationwide store network and it definitely helps, especially if you think about fast deliveries.
As a part of this, we will be also launching a new large store concept. Obviously, it's for the wider assortment, but the large store concept will also be working as hubs for the fast deliveries through online store. We are planning at the moment to have these larger stores obviously, in the bigger cities or larger cities in Finland. And In the end of 2025, we'll have over 2 20 stores to serve TOKMANI customers Only in 5 minutes reach. The next one is personal and exciting shopping experience.
We will launch TOKMANI Club by the end of 2021. TOKMANI Club will offer its members personalized offers, personalized benefits and exclusive deals. Obviously, the customer data is extremely important for TOKMANI, so we will Obviously, use this information for becoming more efficiency and so on. But anyway, this will be, as said, by the end of this year. We do also have corporate clients.
Actually, TOKMANI has more than 30,000 corporate clients at the moment. We will for these Customers, we will also develop the online services and we will strengthen the offer, Make it more easier and effortless for our corporate clients to buy from TOKMANI and especially from TOKMANI Online. We see here a huge potential. And obviously, for all our customers, we will have new products and bargains during every store visit. We also will bring in products that cannot be found anywhere else in Finland with the help of our direct sourcing channels.
The next one is friendly and knowledgeable personnel. 1 of our key drivers business drivers has been this best place to work in retail. It's been a very good business driver. And here actually, I would like to give a chance for our HR Director, Sirpa who is going to tell a little bit more about this. So Sirpa, please go ahead.
Thank you, Micha. Our personnel has been our number one priority since 2018. We have altogether 4,065 employees in TOKMANI, and it is our goal to make TOKMANI the best place to work in retail in Finland. We believe that if our employees are happy, they will serve our customers better, which will eventually make our investors happy also. So we look at our sales success through our employees' friendly and knowledgeable service.
We have 4 key drivers that lead on our journey in becoming the preferred place to work in retail. To begin with, we take pride in good leadership. It is essential that all of our team leaders lead our people according to our values and leadership principles. We have more than 400 team leaders in Docmoney, all of them both through our leadership trainings and yearly evaluations. We believe that all of our employees have the right to good leadership.
Next, we train and develop our people while TOKMANI is growing. Last year, over 3,200 of our employees participated in our trainings, and this number does not include onboarding Last year, we also had 200 employees participating in 1.5 or 2 year long apprenticeships. We also invest in developing our middle management and creating carrier paths to our employees. Also, The success of TOKMANI is shared success for the whole personnel. All of our employees are part of our rewarding program.
If we reach our quarterly targets, all of our employees get their fair share of our success. Last year, we used almost €4,000,000 to reward our employees. We also do our very best To have a fair wage policy in TOKMANI, salaries are based on collective agreements or requirement assessments of positions. And our company benefits belong to all of our employees equally. Furthermore, we have long careers Because we take care of our employees, it is very important for us that our employees have safe and healthy environment at work.
Our personnel representatives are part of HR team, and we work together to solve our daily challenges. We also take pride in the fact that Many of our store employees are able to work with us under their old age pension. We have about 160 employees who worked We have worked with us over 25 or 30 years, while the average length of a carrier in TOKMANI is about 8.5 years. Our latest employees' Net Promoter Score was 36, while that of all of our store employees was 38. And the Net Promoter Score of our Headquarter Specialists was as high as 46.
Finally, during Past 3 years, we have created and strengthened our company culture, which we are very proud of. Our culture is strong because it's We dare to renew, and we are not afraid of making mistakes. When we succeed, we celebrate our success together. And we believe that we reach our targets together because we are all in the same TOKMANI track.
Thank you, Serpa. It definitely sounds impressive. Then as mentioned, last but not least comes sustainability. As mentioned, it's today, it's more than before ever before. It's more important for our customers that we can also offer our customers a sustainable choice.
Let's give our Emilia Koski, Head of Sustainability, a chance to tell a little bit more about the Sustainable Issues. Please, Emilia, go ahead.
Thanks, Mika. We have indeed raised the bar high in our sustainability work. We have set ambitious sustainability targets to develop even more sustainable discount retailing. TOKMANI will be a sustainable choice, both as a company and through offering our customers sustainable choices. As next generation discount retailer, we will work hard on the following five points.
First of all, TOKMANI will increase offering sustainable and traceable products and services. We increased the share of products with sustainability labels in all product categories It's an increased certification rate for all of our 4 high risk raw materials. Cotton is the most important of them, and we will only source Sustainably produced cotton in private labels by the end of 2024. Secondly, we will be neutral regarding our own operations in 2025. We'll continue to reduce CO2 emissions and waste and increase the of renewable energy.
All of our electricity is already now renewable. In the summer of 2020, we became a global pioneer By adopting climate targets that are officially approved by the Science Based Targets initiative and in line with the Paris Agreement. We were the 3rd retailer in the Nordics to set approved climate targets to limit the temperature rise to 1.5 degrees. We work hard to reach these targets both in our own operations and through engaging with our suppliers. Thirdly, we Human rights in all of our activities and we know where our products come from.
We closely monitor our supply chain And all of our factories are audited by 3rd parties. In addition, we increased the number of our own factory inspections, especially in China. And simultaneously, we improved transparency regarding products and supply chain also towards our customers. Fourthly, we foster diversity, equality and inclusion. TOKMANI is for everybody.
We hire diverse people to better serve Our increasingly diverse clientele. We will coach all of our employees in Montreal position on diversity and inclusion. And our ambition is that we manage to keep our long term employees at work until retirement age through modifying their work tasks And simultaneously continue to attract younger employees. And finally, we strive to be a sustainable discount retail also in the future. We are doing everything we can to ensure integrity and responsibility of our operations now and in the future.
We continue to make ambitious sustainability openings in discount retail, and we work hard to ensure that our customers and other stakeholders can trust That TOKMANI's sustainability actions are enduring, consistent and impactful.
Thank you, Emilie. The bar really is set high and that's good. I like the fact that TOKMANI is for everybody. So anyway, these are the 6 elements to improve customer confidence and customer engagement and drive the revenue growth. Obviously, we have actions To each one of these elements and we will be presenting these during the strategy period also how we succeed with these elements.
But it's not only about the customer confidence and engagement. It's also about the Strong growth and focus on everyday low cost. These are the elements. We feel that with this, we're going to achieve also the EBIT target, ambitious EBIT target. I will tell you a little bit more about this.
We have here now the 6 Elements for strong growth and then the 3 elements to drive efficiency and low cost. Obviously, the cost consciousness is a crucial part of TOK Monday. It's about everyday low cost in everything we do. As we call it, Keep your eyes on the price. So let's start Actually, where our business really starts from, and it starts from sourcing and buying.
And here, we give the chance to tell a little bit more about TOKMANI's Sourcing and buying during the coming years to our Sourcing Director, Juha Waldonen. Juha, please go ahead.
Thanks, Mika. Smart sourcing and buying ensures of the whole company. We are evaluating each and every of our existing categories, finding the new interesting products every day And improving the assortments continuously. When we keep the supply chain as short as possible, we are able to eliminate unnecessary costs. We will also have a better control for social compliance, raw materials, supply chain And we will make sure that the level of quality is what we want.
We are working really closely together with TOKMANI Europrize sourcing office in Shanghai And it creates a lot of value to TOKMANI. We are continuously developing our processes and our way of working with our sourcing office. We will open the sourcing office in Vietnam together with Europrix by end of this year depending on the COVID-nineteen situation for sure. Our plan is to open the sourcing office to Bangladesh during 2022. This will support especially TOKMANI's apparel business where we want to be the number one retailer in Finland.
With short delivery times, Europe has an important role as well, especially Eastern Europe has multiple countries with high quality manufacturing Capabilities for products in many different categories. Stock loss and parallel importing are playing very important We will actively manage our private label portfolio. Our multi brand strategy is working very well. Just mentioning a few examples of our private labels. Our private label in home categories is Kotikulta And it is already approximately 5% of our total sales.
In 2018, we launched Proukke For power tools and DIY. And it's already now one of the most successful private label at TOKMANI. In the past 2 years, we have launched 4 new private labels Nature Premium Pet, NOIX, Perfect Plus and Isara. In 2021, 'twenty two, there will be at least 3 new private label brands Into our portfolio, we have already made a plan of our private labels until 2025. TOKMANI's private labels have a significant role in building our growth for the coming years.
Thank you, Juha. I'm sure everybody is looking forward to see the new TOKMANY private label ranges. But let's move from sourcing and buying to the next corner, which in a logical way, it's supply chain management. And Here we can listen to what Toghmani IT and Supply Chain Director, Timo Heimo, Can you tell us a little bit more about the TOKMANI plans for supply chain? Timo, please go ahead.
TOKMANI's main target in supply chain management is to ensure high product availability for our customers with lowest possible costs. Year 2020 was very challenging from logistics point of view. But at the same time, it helped us to clarify Our main development priorities and now we are more ready for fuels: high product availability for our customers' demands Constant improvement of forecasting to ensure steady flow of goods. It demands Also strong cooperation with partners to provide flexibility in shipments and warehouse workforce. And we will launch Click and Collect concept to improve online services and delivery times, improving supply chain cost efficiency means Inbound warehouse logistics and store deliveries optimization.
It means also streamlining of processes with digital development. TOKMANI will create future warehouse solution in Mansella or other location, and we take advantage of automation in warehouse. Automation is probably for e com solutions. My target is to decrease share of logistics costs from 5 to 10,000
Thank you, Timo. Timo, for your information, the decrease Can be even more than 10%. It's acceptable. Thank you. Okay.
And then the last Corner, it's about digitalization. It will sure help TOKMANI during the strategy period with efficiency and customer engagement. Janne will come over here to tell you a little bit more about this. Janne, please go ahead.
Thanks, We are going to evaluate and trial the following topics during the strategic period. In case we see a business case in any of them after the trial, We are going to roll them out in large. So to start with, in order to drive customer engagement, we are looking to explore Utilization of advanced analytics in assortment decisions, optimized and store specific assortment, Price optimization to ensure lowest prices for our customers, personalized customer offering and experience And of course, digital in store solutions to support fast and effortless customer journey. Then if we look at the digital solutions to improve efficiency and lower costs, We are looking to advanced analytics or even artificial intelligence stream forecasting and replenishment, Improved supply chain visibility and predictability, automation and robotic process automation solutions for warehouse and headquarter operations, Warehouse optimization, workforce optimization and digital solutions to improve store efficiency. And that's basically the toolkit we are looking at at least during this strategy period regarding digitalization.
Back to you, Mikka.
Thank you, Janne. So as a conclusion, here we have the elements for building the next generation variety discount retailer. And basically, we have action points to drive business through each one of these Elements over here. But as a next part, let's get a little bit deeper dive and how it looks from the financial point of view. And here we get the company CFO, Mr.
Marco Pirskanen over here to tell you a little bit more about the financial path to our targets. Please, Marco.
Thank you, Mikael. And good afternoon from my side also To everybody. So now we have heard about the new targets. We have heard about Actions what we are doing and let's look at the also a little bit the financial aspect to these Actions and targets. And basically, what I'm doing is mostly look the EBIT side, How we are going to make these steps from last year's €100,000,000 to €100,000,000 EBIT level.
So let's look first the profitability drivers for TOKMANI. Basically, we have Three clear drivers. We can speak about sales growth, number 1 Number 2, gross margin percentage and number 3, operating expenses percentage. And basically, this operating expenses percentage is operating expenses against the revenue. So I have Many times, talked about how it is always the balancing between the sales and the gross margin.
It's Quite easy to make the sales if you sell with, okay, low prices, but too low prices. So that, of course, hurts the gross margin percentage. Gross margin percentage is affected also by category sales mix, Meaning, what kind of products we are selling. And also, it is depending if we are selling the online. The online has a bit different Product mix of today and of course, if it's different, it start to affect our gross margin percentage.
But On the other hand, it is good to remember that online sales has a bit different cost structure also, Which, of course, means that it has an effect to the operating expenses also. But next, let's go through all of these 3 different elements and let's start from revenue. As Ory said many times, we have a target to make the strong growth. So revenue, €1,500,000,000 at the year 2025, which, of course, means that we have to make Over €400,000,000 more what we made last year and how we are going to do it. Mikael already mentioned the business to business sales.
We haven't spoke about that too much earlier. It's still Small portion from our revenue, but we clearly see big potential on that side also. And if you think about our assortment, it's clear that we need to have a wider assortment And we need to have a new product areas. And we need to have a new stores to sell more. And If we put all these together to sell more products, new products, new product areas, it means But we have to make the successful combination between online and our stores.
And that's what we are targeting. So basically, over €400,000,000 more revenue During the next 5 years' time and if we start to calculate and we take The profitability level of what we have last year 2020, 9.3% EBIT And calculated with a little bit over €400,000,000 this means roughly €40,000,000 More EBIT. That's number one item here, sales growth. And next, we are going to move to gross margin and gross margin percentage. On left side, you see the bars, which are telling how we have development developed From year 2018 to 2020, we started from the level of 33.9% And ended last year to a 34.6%.
The development last year was not so good Here. And we all remember that apparel sales was not so good last year due to the corona pandemic. And that's, of course, effective to our gross margin percentage because we all know that we have a good private label Sharing in apparel, which, of course, means a higher gross margin percentage. So On the right hand side, you see the box, and I'd like to remind you what we discussed in CMB 2018. At that time, we estimated that we have a potential for gross margin percentage, something like 1% to 2%.
And now if we calculate it for difference between year 'eighteen to 'twenty, we see that we have achieved 0.7% out of that 1% to 2%. And now we have make the new Estimation and thinking what is the potential in gross margin percentage and ended up to the Final potential, which is saying that in the future, we can make 0.5% to 1% Higher gross margin percentage. And next, we are going to follow how we are going to make it. Of course, these actions basically are the same what we have communicated earlier And also, we have already done different kind of actions there, but we are going to continue. And As you heard from Juha, for example, if you look at private labels, we have a different kind of actions.
But let's first look how we have performed when we look with private labels. The target is to increase private label and looking 2018, 31.7 percent and now last year, 31.8%. We have to say that development has not been too successful because we have had a target to increase private label share. But Of course, when we are looking at the 2020 year and this corona pandemic, it has been difficult because as I already mentioned, the Aperol Share was lower last year due to the reason that the upper market was very difficult. But we are going to continue work to increase the private label share.
And as Juha said, We are going to bring the new private label brands in the coming years, and I'm convinced that we are able to increase this share Certainly. Next action, indirect increase with direct sourcing. Basically here, if you look what has been the development during the last 3 years' time, basically, we have succeed quite well From 24.4 percent to 26.6 percent. And if we look from where We have got this improvement. It has come from our Shanghai Office work.
So basically, we have been able to utilize better our office in Shanghai. So bear share has increased from 14.7% up to 16.5%. And if we think the direct sourcing as a total, as Juha already mentioned, we are going to open the new Sourcing offices, and that should help us to still increase the direct sourcing share in the future. These two elements, increase the private labels And increase the direct sourcing were our main actions. But still, we have something more to come.
So basically, what we can do to achieve our target? First of all, We can increase gross margin of our branded label products through increased Volumes meaning that when we are growing as a company, we are able to negotiate better prices for branded products, and we really believe that this is possible. The second thing, increase the stock lots. We have made good work to be more prepared better to have better processes To increase the stock lots and stock lots gives us also the possibility to sell with cheaper prices To have a good picture from price point of view to our customers. And the third one here, I refer to Timo Amos' speak.
We are going to increase our supply chain efficiency and that will also have effect to our gross margin. But after all, saying all these 5 different aspects, I still like to remind you that there are effects Other things which affects gross margin. And it's still the category sales mix meaning what kind of products we are selling. It really affects your gross margin. It can effect upwards or downwards, but still it effects.
And online sales, As I already said, it's also affecting to gross margin percentage because of Different type of product mix inside the online sales. But also, it has an effect to the next Item what I'm going to show to you. So basically, as stated in the beginning of the Presentation online sales has a different kind of cost structure. So Operating expenses. This is interesting, really interesting.
Here is the same kind of picture. Left side bars telling to you how it has been developed From 2018 to 2020, from year 2018, we were level 21 point 8% and 2020, we were at the level of 16 sorry, 19.6%. And again, if we look the box on right hand side, what we said on CMB 2018, We were very cautious. We estimated the potential of 0.5% to 1.5%. And now we have already achieved 2.2%.
So we are over what we thought At that time. But now how it is the future? I'd like to remind you the context of operating expenses and remind that the salaries Over half of this roughly 20% expenses and mostly the Salaries are variable expenses, meaning that when the revenue is going upwards, salaries are following. Of course, if we are able to improve our processes, it means that the share of salaries will be lower. But it's not so easy if you look this kind of development there.
But still, we think that certain processes we are able to improve. Some expenses here are still almost fixed. And if you are able to Improve your revenue or increase your revenue, you will improve your operating expenses percentage Ratio. And what we are thinking? We are thinking that 0.2% up to 0.5% Here's the potential.
So now looking the sales growth, Looking at the gross margin percentage, looking at the operating expenses percentage, Just putting these together and looking how it is our EBIT. €150,000,000 It's tough target. That's clear. But if you look at the elements there, starting from left side, EBIT 2020, €100,000,000 looking the effect of sales growth of Over €400,000,000 will mean roughly €40,000,000 to our EBIT. Looking to element of improving gross margin percentage from 0.5% to 1% means In euro wise, roughly €7,500,000 to €15,000,000 And taking the 3rd element, Operating expenses improvement 0.2% to 0.5%, meaning in year Roughly 2.5% to 7.5%.
So summing up these 3 different elements, We are on target €150,000,000 at the end of 2025. So that's about the financial bridge. And I like to give a speech to Mika To summarize a little bit and perhaps say some key takeaways. Go ahead, Miguel. Thank you all.
Thank you, Marco, for presenting the financial bridge. It's a very important part of the whole story. Now we are at the moment, we are basically in the end of the presentations. As The key takeaways from TOKMANI Capital Markets Day, I would like you To remember that we are building a next generation variety discount retailer. We have ambitious targets, tough targets as Marco mentioned, €1,500,000,000 revenue, €150,000,000 EBIT target.
And here is also the framework, how we're going to Look at the growth targets, whether it's revenue or EBIT. And obviously, we will be telling you A lot more about the actions while proceeding with the strategy period, but Already now I can say that they are very remarkable actions that we are doing because that's the Only way to proceed due to the ambitious targets. Thank you very much. I believe now it's time for questions.
Let's start with the questions we got through the chat.
Sure.
The first question is, Are there any certain product segments you are looking to enter or to focus more?
Yes. As mentioned in the presentation, we will introduce new destination categories. But at this moment, we will surprise our customers and hopefully also our competitors. So we're not telling exact categories which we are entering.
Okay. The next one. You have previously communicated that there would be room for roughly 200 TOKMANI stores in Finland. As you are approaching this number, do you have any updated view of this number and
As already mentioned in the presentation, so we are looking for 220 stores quickly calculated its almost 30 new stores. As mentioned several times before, the white spots for TOKMANI are in the capital region area, especially Helsinki and Espoo. But of course, there are still a lot Several towns for future locations.
You have told us that we are going that TOKMANI is going abroad. Do you have any plans which countries and cities you are going?
I said, we are actively evaluating the situation. Obviously, the pandemic due to the pandemic, it's a little bit different. It's Not as easy, but there are several different alternatives with this one.
The next one is, do you see any Ratteonal emerging with Eoropris since you already cooperate with them, Especially in respect to sourcing to create an undisputed Nordic champion.
I have no other comments over here, but let's put it this way. Europe is in Norway is a fantastic company.
Okay. How large of share of total revenue do you think business to business could become?
How large share? I believe at the moment, it's Maybe a bit over 3% or something like this. We don't have an exact share Target for that, but we have a strong growth target for it.
How would you explain this small online sales And of TOKMANI revenue, do you have any plans to increase it?
That is a good question. Janne over here is actually responsible for the online business. The way we see it at the moment, we don't look at the let's say, we don't think that any of the TOKMANI customers will Shop only online. It's a combination, online and stores. And therefore, it's a little bit it's We'd like to talk about the growth in both in online and in our stores.
And We don't want to move any of the business from our stores to online or vice versa. So it's more like the combination. For example, last year and Janne, please correct me if I'm wrong, but last year, I think that the Visitors on our website, it was 5 to 10 times more than previous year. So it's a combination. People are looking from the online tools.
They are looking the products and prices and visiting the store and so on. Would you like to
Yes, yes. Mika, you are absolutely correct here. So the visitors on our site, The numbers are huge. So our site is actually one of the most popular in Finland. But as we have the store network, one of the largest, A lot of people tend to choose to shop from our stores instead of online.
Without the store network, Our online sales would be totally different, but we don't look at the channel per channel. We look at the combination here. So that's the key here.
Okay. The next question is related to sustainability and climate. Like we are saying that we are bringing and sourcing products from China. The question is that are we going to increase Finnish products too, So in Finnish Products.
Marco, would you like to answer this one?
Yes. I can take it. Certainly, we are bringing from China, but We still have to remember that most of or a big part of our products are coming from Finland already today. So Finnish producers has and the Finnish sellers has still has a big meaning Already today, so that's how it is now.
Okay. The question here is that, hi, could you please elaborate more on the international expansion? You talk about the new sourcing markets, but are you also looking for opening stores outside Finland?
As already mentioned, we will start active evaluation of international cooperation and expansion. But it's as soon as the COVID-nineteen is In better control, obviously, this has something to do with the pandemic also in Europe. In Finland, we've been lucky with the situation. TOKMANI has been developing well and so on. It's not the same story in all European countries.
So that's why it's also important to see like what's going to happen after What is the situation with different alternatives after pandemic.
Okay. Thanks, Mikael. The next question is about our warehouse and logistics. Is it more or less a done deal that you will invest in the new warehouse, Los Logistics? If yes, how large will the CapEx be?
Yes.
As we announced or make a release that are making the clarification about the enlargement of our warehouse. And it's still on That stayed and it's not a done deal. That's clear. It's not a done deal. It's done deal when we have signed agreements.
But as I said, it's under clarifications and let's see how it goes. But certainly, it will be if That will happen. It is Remagruppu investment and it's Couple of tens of 1,000,000, but that's the size of investment if that happens.
Okay. Do you expect the sales growth to line in 2021 to 25% or more back ended loaded to about 23% and 25%.
So could you repeat now?
Do you expect the sales growth to linear in 2021?
Okay. Sorry. Yes. In the
beginning of the period or End of
Of course, as we have sorry. No, go ahead. I'll take a question. I'm very
keen on that. No problem.
Please go ahead.
As we have Set the guidance for year 'twenty one. We have said that for this year, we will have a slight revenue growth. And that, of course, mean that 'twenty one is slight revenue growth. And of course, after that, we have to have a good or Strong revenue growth during the next 4 years after year 'twenty one.
Yes, let's if Marco, if you don't mind if I add on here. Obviously, we have a lot of action points As just presented regarding the growth, but obviously, The pandemic, I believe that the Finnish government is during this moment making Decision on restrictions. I hope there won't be any restrictions regarding retailers. But Still the pandemic is affecting the business also in Finland, even if the restrictions are not for the stores, But still people are a little bit afraid of going to stores and so on. And there are like different ways of doing shopping.
So that's why it's a little bit difficult to say more than we've actually said already with the outlook for this year. But as soon as we are able to Due to the actions that we're planning, we will be doing that.
Okay. Thanks. And we have a couple of questions about the food category. I combine those 2. How big share of sales come from food products?
And are there any Is that an important segment for TOKMANI also in the future? And also that how the food category has performed during 2018 2020. So how important it is and how it has developed?
Yes. Well, for it's for sure, groceries is it's service for our customers. And during the last 3 years, it has been performing very well as well. Basically, according to TOKMANI strategy, we are especially Investing on the destination categories. In the destination categories, we want to be number 1 in Finland.
There will be we will introduce also new destination categories. But With food, with groceries, we don't believe that we will be number 1 in Finland By the end of 2025, so that's probably not going to be one of our destination categories.
Okay. Then one question about the corona crisis. Are you at risk of closing stores In parts of Finland, due to the corona restrictions?
No, we don't think that we have a risk of closing any stores. However, there might be some shopping mall locations, which maybe might be closed or something like that. But this is Typically, a little bit smaller stores for TOKMANI and there are less than 10% of our store network are located in the shopping malls. But that's the only part which could cause some problems. But so we don't think that there is a risk of closing the stores.
Okay.
Then I see it's a last question from a chat service, but the last question is connected To the online sales, do you have any idea to initiate home delivery to your online sales?
Danne, would you like to take this one?
Actually, we have already on home delivery. You can order items directly to your home from our website, if I got the question right. Yes.
Okay. That's the last question from the chart service. Then operator, Do we have any questions online on online telephone lines? Thank
We have a question from the line of Maria Rikschamp from Benske Bank. Please go ahead.
Thank you very much. Can you hear me?
Yes, we can. Maria?
Yes, perfect. I think some of my Questions were already answered, but I still have some. And touching a bit about the you mentioned Possibilities for further cooperation internationally. And then thinking a little bit aloud here that What are the product categories you guys source together with Europrix? And is it possible to increase that cooperation?
Thinking a bit that you kind of have chosen at least one of the partners internationally. So How do you see the possibility to increase that cooperation in the future?
Well, we see a lot of potential with that as well. Our cooperation with Europrix is, as Juha mentioned Earlier, it's really great. The Nordic countries, Finland and Norway, we have a lot of similarities with the product. Obviously, the store concepts are a little bit different, but the products in several cases are similar, Either exactly the similar products or almost the same. And we can see that there are a lot of Potential still to grow with this one.
It's we do have like it's not only China where we are Basically buying together, it's for example, Vietnam at the moment, a very important part of Also our direct sourcing, that's why we're planning a new office over there as well as Bangladesh.
Okay. Good. Then just a bit of an interest as you mentioned During the COVID times, you saw 20% of the customers were new. I'm just a little bit wondering that given you haven't had this Customer program or customer data which would identify myself if I go to the store. So How do you get to the number that 20 percent of the customers were new during the COVID time?
Janne, our strategy and development Guy will answer you, Maria, on this one. Janne, please
go ahead.
Thanks, Mika. So it's an approximation and based on Credit card numbers. So what's the number of new credit cards or share of new credit cards we see have seen during last year? So based on that data.
Okay. Very interesting. And then my final question, I mean, would be about these, I mean, recent Trends, I mean, you've been I mean, you'll be seeing that obviously, like the COVID situation in Finland, I mean, I mean currently, I mean basically getting worse. But still if I think the similar trends, I mean if we talk about DIY have Continued, I mean, quite on a high level. So do you see that the trading environment is currently pretty similar than it was Like the second half of last year and how you would describe that?
And then little bit like when to model the sales development further, When should we expect to see the 1st new destination category launch? So how far you are in the development phase?
Okay. Maybe the first part, yes, it's I don't think that we'll see everybody in Finland going to Summer holiday abroad in the coming months. So obviously, there are a lot of trends At the moment, which support TOKMANI, for example, I'm sure, Maria, you know also that there is a Boom with summer houses in Finland at the moment and we have a perfect assortment to give service in this boom. So obviously, we think that this will continue. But it's still quite clear that we see a change with Customer behavior and obviously, we also expect this COVID-nineteen to be in a better control because we feel that our customers dare to come to stores more often when the pandemic is in control.
Regarding the destination categories, We are working at the moment with them all the time, but we won't give any Further details on launching the new destination categories.
Okay. Thank you. And if I mean at the later stage, you don't need If there is more questions on the line, but if you could a little bit describe the competition situation at the moment, that will be very helpful. Now I'll just give a turn to somebody else. Thank you very much.
Thank you.
And the next Question comes from the line of Svein Tvoxelos from Nordea. Please go ahead.
Yes. Hi. Svein Tvoxelos from Nordea here. Hope you can hear me.
Yes, we can, Swante.
Great. Many of the questions have already been answered, but Perhaps could you a bit you didn't give any guidance on CapEx needs, if we can exclude the warehouse, of course. And then perhaps also A question regarding the large store concept and the fact that you will double your number of SKUs from 25,000 to 50000. Will these Large stores also partly take over that warehousing question or?
Now we see that as a little bit separate issue, this large Store format and the warehouse. We have Marco, would you like to Tell a little bit more about the warehouse and large store concept part, but I think that it's a little bit separate issue. We are anyway developing the warehouse solutions at the moment. And the large store concept will be more for the wider assortment and then acting also as hubs for the fast online deliveries.
And about the CapEx level, just a couple of words out of that. So we have announced for this year over the level of SEK 16,000,000 to SEK 18,000,000, Which are basically the normal investments. And I would say that if we look coming years, Basically, when we speak about the larger stores, way up a bit more expensive compared to the ones which we have Opened or we still are opening, but we have opened earlier, such stores coastal a little bit more, Which, of course, means that the investments might be a bit higher level, but I would say in a big scale that we are Still on the level of something like NOK 15,000,000 to NOK 18,000,000 per year, which is about or roughly the same level where we have been During the last couple of years.
Okay. Thank you. And then a question on In your growth bridge business to business clients was a key factor. Could you elaborate a bit more on what kind of B2B clients you are targeting and what kind of product categories does it involve and does it also have a Perhaps negative impact on the gross margin?
Well, To answer this last one, the last question regarding gross margin, no, it doesn't have a negative effect on gross margin. And we're talking about so we do have more than 30,000 corporate clients at the moment. It's a lot of different kind of Companies all around Finland from, let's say, From construction companies to daycare and Smaller companies, a little bit bigger companies, it varies a lot over there. And Yes, we've noticed we basically we have got a lot of feedback from our corporate clients that they would like to Buy more from TOKMANI due to the low price level. And now we are basically developing this service as well with developments with online part because Most of the entrepreneurs using this kind of company card, TOKMANI company card that they have, They would like to have as smooth and as effortless service as possible.
That's our Target to renew basically right already during this year and then improve the service to our corporate clients.
Okay. Thank you. And also I would also repeat Maria's question regarding the competitive landscape, if you have any seen any Development there. Thank you. That's all from me.
Perhaps you comment this comment?
Yes. Yes. Obviously, the competition is getting harder all the time for sure. There are a lot of good companies, a lot of good Stores in Finland, which are basically offering partly the same kind of assortment as we do. I believe that we've been succeeding pretty well.
As mentioned before, We do follow the price levels in Finland extremely carefully. That's why we try to do we try to will be the absolute number ones in our destination categories, which means that we will have the highest volumes in Finland. When you have the highest volumes, you usually have the lowest prices, buying prices. So this obviously is something that we are Looking very carefully also and asking our customers and doing customer surveys like how are we doing compared to our competitors. But yes, every retailer needs to Do a lot of things to compete with the competitors and so are we.
Hopefully, we the action points we just presented, hopefully, we will be also a stronger competitor for the other companies in future. I don't know, Marco, Janne, would you like to add anything to the competitive landscape.
Yes. I think so that you described it quite well. It's clear that the competition is increasing. We are seeing these smaller discounters, founding new stores. And of course, In certain area or certain town, it increases the competition.
But when we have the hand, it, of course, keeps us awake. Also in sometimes, there are more people to come when we have a combination of different kind of companies. So it's Plus and minuses in some places. But as a whole, it's tough competition. Yes, that's clear.
Yes. Sorry, regarding the competitive landscape, Janne, you could actually tell a little bit more about TOKMANI setup and then, for example, the Online giants, which are already in, for example, in Sweden.
Yes. To start with the Competition, the way we see it is that, of course, new entrants are coming to the market, but the Phase they are entering is not that fast. And then secondly, there aren't actually Identical company in the market that would compete directly with TOKMANI, meaning that it would have exactly same categories with same focuses, meaning that there actually are there is not a direct competitor for TOKMANI in that sense in the market. So of course, when we have, for example, NORMAL entered just Finland with few stores, But it considers only one segment in certain locations. And it means that it doesn't affect It doesn't have significant effect on our business, so to say.
And then regarding online players, Probably, we have had these discussions over, I think, over 2 years now that how is, for example, Amazon affecting us. We have searched researched a lot of different markets where Amazon has existed along and where they have discounters. To start with U. S. And U.
K. And we see that discounters are very strong in those markets. So we believe our business model Can coexist with these kind of online giants. Thank you, Mikael.
Thanks. Any other Questions?
We have one more question from the line of Mikael Skokman from Hennessbanken. Please go ahead.
Good morning, everyone. Thank you for interesting presentations. I still have a couple of questions. So if we start on the top line target, the SEK 1,500,000,000 Turn our target by 2025, that implies just under 7% growth on average per year. Given the store guidance, it looks like stores may contribute around 2.5%.
The remainder, is that Mainly going to be store like for like? Or do you expect a pretty big part of that coming from online as well?
Marco, would you like to answer to Niklas? Good afternoon, by the way.
Yes. Good afternoon, Niklas. Yes. Certainly, if we start with online part, as Mikael already explained, It's somewhat combination of online and stores. It's not just following how much online is increasing.
Clearly, of course, if we Add certain product groups to online that effects directly to online sales. Of course, we are expecting to get something out of that. And when you calculated how much are these new stores bringing, Mika mentioned that we are going to Bring to a market some larger stores. That's, of course, means that these units should bring more revenue than Or compared to our present stores, if we calculate as average today, but if we made the new ones, which are bigger, Clearly, the sales of both stores are higher level.
Yes. That's a good point. Thank you. And then secondly, On international expansion, you're talking about you're currently evaluating international Co operation and expansion. Kind of interested in what you mean by international cooperation.
Well, there are a lot of different kinds of alternatives. And at this point of time, it would be very, very difficult to start open up a little bit any more these Questions? There are Clearly, cooperation alternatives and expansion alternatives. And there are also alternatives where it's combined. But As already mentioned several times, we will actively start evaluating as soon as the pandemic is in better control.
Okay. Could you give some examples of sort of other retailers doing this Cooperation, I mean, what could they look like? Or what have they looked like historically?
No, I cannot compare to any other retailers' Actions with this one and it's not that we are kind of copying any other retailers' Action points regarding expansion or something like that. It depends on the a little bit on the business area and so on. So unfortunately, no references from other retailers. Okay.
And if you choose to expand abroad with the TOKMONEY stores, Do you foresee sort of a cautious expansion where you try a few stores in a new country? Or would you Expect to do some M and A or would you go out with a big sort of store rollout plan? What's your What will be your approach, do you think?
Niklas, we will evaluate this a little bit later, But there are a lot of different alternatives. Okay. Interestingly enough, there are a lot of different alternatives. You don't need to look at it from the traditional point of view that The TOKMANI store will be next to where you live.
That would be fantastic. Okay.
That's her, by the way.
The last question, and I probably missed Your answer there, it was on corporate customers. How big that business is today? I heard you said, I think, 30,000 customers. But in terms of sales, How big is it? And where do these guys buy from today, those who might Switch to you in the future.
Well, first of all, yes, as mentioned, it's approximately A little bit over 3% or roughly 3% of total sales. And I'm sure These customers, they actually they do buy from all over. They usually a little bit maybe A bit smaller entrepreneurs. So there are like, as mentioned, construction companies Buying starting buying coffee and coffee machines and things like this. But I guess it's the point is that this kind of corporate clients, they don't have Strong enough service at the moment, and that's exactly where TOKMANI is going to We developing this business.
We will start offering this kind of clients much better service with, of course, with our low price.
So are we talking mainly delivered wholesale here? Or do you expect Then to actually come to the stores and pick up what they bought or will you deliver to them mostly?
For sure. We do believe that, example, this kind of click and collect service would be very good for several one of them.
Okay. Perfect. Thank you very much for that.
Thank you.
And as there are no further questions, I'll hand it back to the speakers.
Okay. And do we have any more questions Okay. And we exceeded our time already with 8 minutes. So thank you very much for joining TOKMANI Capital Markets Day, and I definitely hope that it was useful and informative for you. Thank you.
Okay. Thank you. Thank you.