Stockmann’s new strategic direction
Helsinki, Finland, 2014-12-18 07:30 CET (GLOBE NEWSWIRE) —
STOCKMANN plc, Company Announcement 18.12.2014 at 8:30 EET
Stockmann started to revise its strategy earlier this year in order to improve the Group’s long-term competitiveness. The strategic direction has now been set and the first actions have been taken. The strategy will be further elaborated during the first half of 2015, and actions to implement the strategy will be scaled up.
The Stockmann Group will continue to be engaged in the retail business through operating its own retail brands – Stockmann and Lindex – and by offering retail space to other businesses. Stockmann’s strategic goal is to turn these stores, both online and offline, into a destination for convenient and inspirational shopping. At the same time, the company will gradually downsize or withdraw from its other businesses, namely Hobby Hall, Stockmann Beauty and Seppälä.
”Stockmann’s Board of Directors has made a strategic decision to focus on the Group’s key businesses, Stockmann Retail, Real Estate and Lindex. We have also listened extensively to our customers to build on the strengths of these businesses. Now the responsibility shifts to the management to make the turnaround and to place the customer back at the core of operations. As the new CEO, I am currently working with our personnel to turn the strategy into actions and make it visible to our customers during 2015,” says Per Thelin, CEO of Stockmann.
Stockmann Retail and Real Estate
Stockmann Retail and Real Estate will complement each other in their operations. Stockmann Retail will focus on combining its department stores and the online store into a premium omnichannel shopping experience. The Real Estate division’s aim is to enhance the customer experience, by complementing Stockmann Retail’s offering with goods and services from attractive new retail tenants. The current real estate properties in Helsinki, St Petersburg, Tallinn and Riga will be kept in the Group’s ownership. Stockmann’s own department store operations will remain a key business with an optimised store network and sales space in order to improve the efficiency of premises.
Stockmann Retail’s goal is to offer a top-notch shopping experience both online and in the department stores by providing best-in-class service and an up-to-date mix of brands and choices, and by rewarding customer loyalty. The offering will be aimed more closely at customers who value convenience, quality and inspiration. Resources during the busiest trading hours and training will be increased to ensure premium service at the stores. Stockmann’s future selection will have a stronger focus on fashion, cosmetics, food in Stockmann Delicatessen and home products. To achieve these goals, investment will be made in store concepts, the new distribution centre and IT solutions, thus ensuring a convenient omnichannel customer experience.
The strategic goal of Lindex is to achieve stable growth by opening new stores both in existing and new markets. Lindex currently operates in 16 countries, and a new opening is scheduled for London, UK, in spring 2015. Plans to enter the Chinese market will be studied further. Lindex will be developed independently, under the governance of an external Board of Directors, but as part of the Stockmann Group.
Seppälä’s operations will be downsized with only the best performing stores in Finland and Estonia remaining. Codetermination negotiations with staff have been completed. The reductions in personnel in the Seppälä head office and warehouse will affect up to 70 people. Decisions on store closures in Finland and their impact on personnel will be made by the end of January. In Estonia the current stores will continue, but in Latvia and Lithuania all stores will be closed during 2015.
The Stockmann Group’s strategy work will continue in 2015 on the basis of the agreed strategic direction. Additional strategic decisions and the progress of the actions made will be communicated in the company’s interim reports and separately, when necessary.
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558