In 2017, Gorm Håland and Kaia Rugseth took a plunge into the world of e-commerce, focusing on pet food and supplies. Fast-forward five years, they co-own a business empire with a staggering turnover of over NOK 200 million last year alone.
The duo initially intended to launch their own online store selling pet equipment and food. However, an opportunity presented itself to acquire Petworld.no,—a well-established but small online store with an annual turnover of NOK 12 million. Since then, they have not looked back.
The business expanded through mergers and acquisitions, including joining forces with the PetXL chain and welcoming Karbon Invest as their majority shareholder. Last year, the company scaled its operations by opening three new physical stores and incorporating automated warehousing solutions from Autostore.
“Last year was an exhilarating ride with remarkable growth in both our online and offline channels,” says Kaia Rugseth, CEO of PetXL.
While the majority of the company’s revenue originates from PetXL’s seven physical stores, Petworld.no also plays a pivotal role in their multi-channel strategy.
“Petworld.no serves as our primary online retail channel. On the other hand, PetXL.no functions mainly as a digital showroom for our brick-and-mortar stores, although we have plans to accelerate its online sales as well,” Rugseth explains.
The approach of operating Petworld.no solely as an e-commerce platform and PetXL as an omnichannel brand has furnished the company with significant competitive edges.
“We’re well-positioned in a pet supply market that’s estimated to be around NOK 11-12 billion. While in-store shopping remains prevalent, the surge in online shopping in recent years ensures our relevance across a broad spectrum of pet owners,” says Rugseth.
According to Rugseth, the competition in this niche is multifaceted. While grocery stores have been historical competitors offering different quality levels, emerging international online businesses also pose a threat.
“Our unique selling proposition is our proximity to customers and the in-depth product knowledge our staff offers,” she adds.
The company invests significantly in content creation and product information across both their online platforms. They also emphasize collecting customer reviews through Lipscore to improve their product line-up continuously.
“Positive reviews are always encouraging, but it’s the negative ones that are often more enlightening. We take all customer experiences seriously, whether they are with our own branded products or those sourced from suppliers,” Rugseth notes.
After laying a robust foundation, the business is geared up to extend its footprint to Sweden.
“We have ambitious plans to launch in Sweden this fall, starting with an online store and likely adding a couple of physical outlets. We’re leading with the PetXL concept, which has proven to be a winning strategy for us,” Rugseth concludes.
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