Key facts
- Søstrene Grene CEO Mikkel Grene sees opportunities in former Flying Tiger locations.
- Flying Tiger was acquired by private equity firm Modella Capital in May.
- Modella Capital has a history of restructuring businesses, including TG Jones and Claire's Accessories.
- Søstrene Grene emphasizes its family ownership allows for long-term strategic thinking.
- The retailer plans to expand its UK presence to 100 stores.
- Søstrene Grene reported a 31% increase in turnover to £327m for the year ending April 2025.
Mikkel Grene, chief executive of Danish homeware retailer Søstrene Grene, believes his company can compete with rivals like Ikea and Flying Tiger in the UK market. Flying Tiger, considered Søstrene Grene's closest competitor, was acquired by private equity firm Modella Capital in May. Modella Capital has faced criticism for its restructuring of TG Jones and overseeing the collapse of Claire's Accessories.
Grene indicated that Søstrene Grene has already begun occupying former Flying Tiger store locations in other markets and would consider similar sites in Britain. He stated that Søstrene Grene does not view Flying Tiger as a direct competitor due to their differing offerings, emphasizing the unique, whimsical, and non-commercial aspects of his family-owned business.
He contrasted this with Modella Capital, describing them as "unsentimental" owners whose long-term commitment to Flying Tiger remains uncertain. Grene highlighted the benefits of family ownership, allowing Søstrene Grene to "think long term" and accommodate "whimsical and non-commercial things."
Søstrene Grene's strategy includes opening flagship stores in high-traffic locations, such as its Oxford Street store opened in March 2025, despite high rents. The company previously sought lower rents in city outskirts before moving to larger shopping centres like Manchester's Arndale.
Grene also raised concerns about the competitive landscape for UK retailers, citing high business rates and the impact of Chinese e-commerce giants like Shein and Temu. He called for government action to "level the playing field." The Treasury is set to close the 'de-minimis' loophole for low-value imports in October 2028, a move retailers believe could increase focus on the UK market.
Søstrene Grene operates approximately 47 stores in the UK and aims to reach 100 locations next year. The retailer reported a 1% dip in pre-tax profit to 213 million Danish Krone (£24 million) for the year ending April 2025, while turnover increased by a record 31% to 2.9 billion Danish Krone (£327 million). Grene confirmed that external funding or a public listing is not required for expansion, preferring to remain family-owned to facilitate long-term strategic decisions. The company recently completed a significant overhaul of its back-office systems and warehouse automation.