After 104 years of independent operation, Danish timber chain Johannes Fog A/S has joined the XL-Byg cooperative to remain competitive in a rapidly consolidating market. CEO Karsten Østergaard Larsen stated that 'the market has changed significantly,' with large capital-backed chains increasing their dominance.
Karsten Østergaard Larsen, CEO of Johannes Fog A/S. Photo: Johannes Fog.
By joining XL-Byg, Fog gains access to joint purchasing agreements and shared services, allowing it to maintain its identity while benefiting from economies of scale. Østergaard Larsen described the decision as a balance between independence and strategic advantages.
The move has resulted in job losses at Fog's headquarters in Lyngby. Østergaard Larsen acknowledged the difficulty of these layoffs, saying that Fog is committed to supporting affected employees.
Market conditions have become more unpredictable, with external factors like political decisions and economic shifts playing a larger role. The CEO noted that traditional industry cycles of 'seven good years followed by seven bad years' no longer apply.
The addition of Fog's nine stores brings XL-Byg's network to 79 nationwide, despite recent consolidations. Østergaard Larsen remains optimistic about the future, citing positive growth in early 2025 and renewed investment interest from both private and commercial sectors.
Source: www.wood-supply.dk