Family ownership, international backing

It was fifty years ago, in 1962, when two men opened a small hardware store in Kópavogur, within the metropolitan area of Iceland’s capital, Reykjavík. Originally the store mainly sold building materials, but soon also offered tools and other products for both construction and renovation. By its tenth birthday Byko had become a leading retailer in hardware products and building materials. What once was but a single hardware store of 135 m² has now become a network of seven stores around Iceland, ranging from outlets of 2 000 m² to the 23 000 m² main store area. What they all have in common is that they offer a variety of solutions for trade professionals and homeowners alike. The Icelandic building materials and DIY market has gone through some changes recently. Byko’s main competitor for the last few decades, Húsasmidjan, was seized by a bank following the economic crash in 2008. Last year it became a subsidiary of Bygma, a Danish commercial house. Last May Bauhaus opened a 23 000 m² store in Iceland. Despite these changes in the landscape, Byko maintains a strong position on the market. This is in no small part due to the company’s commitment to offer all of its customers, large and small alike, a wide range of products at competitive prices, the company says. It can do so because of its position as a company that is part of the Norvik Group, which means it can therefore rely on strong international backing, in particular from the companies that make up Norvik Timber Industries. Byko’s strength in logistics, both in running its own warehouses and chartering vessels, further contributes to this. When that is combined with excellent service from its experienced employees, there’s no wonder Byko remains in a strong position on the Icelandic building materials and DIY market. This was confirmed when the Icelandic Customer Satisfaction Index for 2011 was presented last February and Byko once again received the highest score in its category. Norvik consists of a number of companies. Among them are grocery store chains, the electrical goods superstore Elko and the sporting goods retailer Intersport in Iceland. Five companies make up Norvik Timber Industries (NTI), namely Byko-Lat, CED and Vika Wood in Latvia, Jarl Timber in Sweden, Norwood in Russia and Continental Wood in the U.K. These companies, which operate in forest harvesting, sawmilling and planing, manufacturing doors & windows and prefabricated houses, importing and distributing forest products…