COPENHAGEN: Danish toy maker Lego has announced a management shake-up to develop the brand beyond its iconic plastic bricks under the leadership of its veteran chief who brought the company back from the brink of bankruptcy.
CEO Jorgen Vig Knudstorp took over Lego when it was on the verge of collapse in 2004 and transformed it into one of the industry’s biggest success stories, but he will step down by the end of the year to head a new unit focusing on the Lego brand, called Lego Brand Group, the company said.
“With our recent growth and globalization come new and exciting opportunities for the brand,” deputy chairman and fourth generation owner Thomas Kirk Kristiansen said in a statement.
“We establish the Lego Brand Group to look into these new opportunities,” he said.
Lego’s colorful toy blocks have proved resilient to the rise of digital devices which is battering the traditional toy industry, but the company has also been adept at using different channels to engage with children.
The group has allowed partners to develop branded video games, a Hollywood blockbuster, television shows and theme parks.
The company has grown over the years, but has always remained owned by the family of creator Ole Kirk Kristiansen since its founding in 1932.
Its sales have increased five-fold in the past 10 years, to 35.8 billion kroner (4.8 billion euros, $5.1 billion).
The company shake-up should be seen in the light of its loss-making expansion into non-core businesses before Knudstorp took over, said Niels Lunde, editor of Danish business daily Borsen and the author of a book about Lego.
“Lego uses its brand in more channels now than it used to, and that is what Jorgen Vig Knudstorp will oversee in the new role,” he said.
Knudstorp was the first non-family member to take the helm of the group.
He will be replaced at the Lego Group by 14-year Lego veteran Bali Padda, currently the company’s chief operating officer.
Padda, a Briton, will be the first non-Dane to head Lego Group, which will manufacture the plastic bricks.
“Lego has become so big that it’s hard for one chief executive to carry out all of the tasks,” Lunde said.
“The CEO’s role (of Lego Group) will become smaller now than it has been,” he added.
The new unit, Lego Brand Group, would work with the Lego Group as well as other units, including Lego Education and attractions at the Merlin Entertainments-controlled Legoland theme parks.
Knudstorp will also become chairman of Lego Group.
Lego builds new company structure to grow brand
Lego builds new company structure to grow brand
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
