Stockmann Division to renew its operating model with the aim of improving customer satisfaction and profitability

STOCKMANN plc, Press release 11.10.2021 at 9.30 EET

The Stockmann department store business will proceed to the next stage of its customer-focused strategy and organise its operations so that they provide even better support to customer service and commercial processes. The goal is to improve customer satisfaction and business profitability with smoother processes and a more effective unified operating model in all three countries of operation.

“We will continue to systematically implement our customer centric strategy and improve our profitability. The renewal of the operating model that is now at the planning stage is based on the need to provide better support to commercial processes. The goal is to streamline the processes by removing overlaps between functions and countries and by reducing hierarchies, which will speed up and improve our service and also cut fixed costs,” says Mikko Huttunen, Chief Transformation Officer at Stockmann.

The planned renewal of the operating model will involve the entire personnel of the Stockmann Division in all three operating countries and when implemented the impacts will extend to all operating countries. The codetermination negotiations will cover 210 positions in Finland and the personnel reduction required is estimated to be 60 positions at the most. Of the organisation’s current positions, approx. 105 will be ended, while about 45 new positions are planned. The locations of the new positions will be assigned optimally, based on operations and cost-effectiveness, to support business operations and growth in the best possible way in the operating countries.

The planned measures will bring estimated annual savings of nearly EUR 4 million gradually as of the second half of 2022. The personnel reductions will not affect the department store, customer service or online store operations. The codetermination negotiations will start on 15 October 2021, and the implementation of the measures will start gradually during the first quarter of 2022.

The Stockmann Division currently employs a total of 1 735 people, of whom 1 120 work in Finland, 366 in Estonia and 249 in Latvia. The Stockmann Group as a whole, employs 5 927 people in 19 countries.

Further information:
Mikko Huttunen, Chief Transformation Officer, tel. +358 40 6308418

www.stockmanngroup.com

STOCKMANN plc

Jari Latvanen
Chief Executive Officer

Distribution:
Nasdaq Helsinki
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