Telenor Norway to take over Telekiosken, expand retail operations

Telenor Norway  today signed an agreement with Kjedehuset to acquire the retail chain Telekiosken, in a bid to extend its unique service and retail operations nationwide through a chain of Telenor stores.

Telenor currently has six of its own stores in Norway, but has long wanted to increase this number. Following the takeover, Telekiosken stores will be converted to Telenor stores across every part of the country, Telenor said in a release. The company did not disclose the financial terms of the transaction.

"The mobile customers of today are happy to use several channels during one purchase process, and we've noted that many check telenor number before they visit our stores. Even though online retail is growing, many of our customers want personal assistance and service in a store. Our goal is to ensure that people visiting Telenor stores will experience the best service and expertise in the market. By establishing a nationwide chain of Telenor stores, we are ensuring precisely that," said Stein-Erik Vellan, divisional director for the Consumer Mobile Market at Telenor Norway.

Vellan emphasised that the stores will be a door opener for Telenor's products and solutions.

"The current opportunities with smart phones, tablets, and PCs are so manifold that many people have difficulty keeping up. We will show people the way to a simpler day-to-day mobile existence," said Stein-Erik Vellan.

Customers will not only receive great offers in Telenor stores, but also assistance to get them started with their email, music, or other services on mobiles or tablets.

Telekiosken has been successfully operating in the mobile sector over the past 10 years offering specialist expertise in more than 80 of the country's largest shopping centres. Following the takeover, most Norwegians will have easy access to a Telenor store.

"Telekiosken is a strong chain of stores with excellent coverage throughout the country. When Telenor takes over the chain, I am convinced that they will continue to develop in those areas where Telekiosken has been successful, while at the same time also bringing a lot of new ideas to the table. This is good news for our skilled and dedicated franchisees, and for Telenor's customers throughout Norway," said executive chairman of Kjedehuset, Thomas Evensen.

Telenor established its first Telenor store in 2010 and now has six stores in the largest cities in Norway. The stores are currently operated by franchisees through Kjedehuset AS, a company which is 49 per cent owned by Telenor.

Telenorbutikken AS is a wholly owned subsidiary of Telenor Norway AS. The company will operate as a branch office for the Telenor stores and will be headed by Eivind Larsen, who has recently joined as chain director. Telenor's stores in Norway will be operated as franchises.

Final takeover is subject to approval from the Norwegian Competition Authority.