Two seasoned online retailers announce merger
Finland’s Hobby Hall and Estonia’s Hansapost are merging in a bid to boost sales and create tangible benefits for customers.
The merger of the two privately owned online retailers will create a large multinational retailer with an annual revenue of over 80 million euros, a staff of roughly 200 and a product portfolio of more than 330 000 products.
The mutually complementary portfolios are expected to create benefits for all customers of Hobby Hall and Hansapost in Finland, Estonia and Latvia.
Pekka Pättiniemi, the managing director of Hobby Hall, believes the merger to be an important step in the ongoing renewal process of the retailer that launched its mail-order business in Finland as early as 1962.
“Hobby Hall wants to provide experiences to its customers,” he tells. “The substantially larger product portfolio will be beneficial in, for example, the important area of gardening in Finland. Our customers will additionally benefit from our collaboration in developing the e-commerce technology.”
Taavi Rajur, a board member at Hansapost, says the merger will help the online retailer to branch out into exclusive brands.
“Our goal is to achieve growth in both quantity and quality. Hobby Hall being known for its high-quality products, we can expand our product portfolio to exclusive brands. This is also an opportunity for Estonian brands to enter global markets,” he comments.
The two retailers also draw attention to the growth potential of e-commerce in Finland and, especially, Estonia. Online retailers have seen their sales grow at an annual rate of 20 per cent in Finland and 40 per cent in Estonia but, in spite of the solid growth, account for 10 per cent of all retail sales in Finland and only three per cent of all retail sales in Estonia.