Kappahl investing big in digital transformations

As part of its ongoing transformational journey, Kappahl is making a major investment of SEK 200 million into a comprehensive digital transformation. With Microsoft Dynamics 365 and Azure as a strategic platform, the chain is laying the groundwork for new business and a forward-facing customer experience in both physical and digital sales channels.

“In a couple of years, Kappahl’s business support will be at the very cutting edge for our industry, helping to create inspiring customer experiences every day,” says Kappahl’s CEO Elisabeth Peregi.

One aspect of Kappahl’s all-new brand strategy is the ambition to transition towards an even more values-based brand. As an important aspect of this work, over the coming years Kappahl is to invest substantially into its IT structure and business support, while also implementing a comprehensive digital upgrade. The aim is to improve customer experience and streamline operations through more customer-centric business support and more agile business development.     

“The investments we are making are directly linked to our business plan and will play an important role in the Kappahl experience as a whole,” says Peregi. “We will be well equipped to meet our customers’ new purchasing behaviours across all of our channels, and for growth outside of our existing business.”

As part of this investment, Kappahl is extending its partnership with Microsoft, redrawing its system landscape from the ground up with Microsoft Dynamics 365 and Azure as a base. Kappahl will gain a modern, cloud-based business system with an integrated checkout and payment solution for both physical and digital stores. The upgrade also includes other system solutions, helping the fashion chain move towards a modern, agile business model. 

“Modern tools and processes lay the groundwork for Kappahl’s business development. We are bolstering our IT organisation and are currently recruiting for around 20 positions, everything from developers and solutions architects to project managers with a focus on linking up IT and business operations. It’s going to be a fantastic journey to be a part of,” says Kappahl’s CIO Johanna Nordholm.

Kappahl exists to celebrate diversity in everyday life. We want to broaden the definition of diversity to include many different ways of living – empowering people to always stay true to themselves.

Founded in 1953 in Gothenburg, Sweden, the Kappahl Group is a leading fashion chain in the Nordics, with around 370 Kappahl and Newbie stores, and Shop Online in Sweden, Norway, Finland, Denmark, Poland and the UK.

The Kappahl team consists of some 4000 colleagues at 400 workplaces in 10 countries, all with different backgrounds, ages, skills and styles. Our common motivation is to offer fashion fit for life to a wide variety of people and lifestyles – a Responsible Fashion that feels right, for the bearer and for the world we live in. Today, 70 % of our products are labelled as more sustainable. Our goal is for 100 % to be made of more sustainable materials by 2025.