Stockmann Capital Markets Day 2012: Profitable growth remains at heart of Group’s strategy
Helsinki, Finland, 2012-09-12 11:00 CEST (GLOBE NEWSWIRE) --
STOCKMANN plc, Company Announcement 12.9.2012 at 12:00 EET
Today, 12 September 2012, Stockmann is holding its Capital Markets Day in Helsinki for analysts, finance providers and investors. The day’s programme consists of presentations by management on the Group’s strategy and, in detail, on Stockmann’s two key strong business areas: department stores and fashion chains. The day will close with a tour of Stockmann’s enlarged and renovated flagship department store in Helsinki city centre.
The Stockmann Group has recently completed a period of major capital expenditure. In the strategy period 2013-2017 the Group will continue to benefit from the major capital expenditure projects of previous years and will seek profitable growth from existing and new markets. The estimated level of capital expenditure in 2013-2015 will be about EUR 60 million annually. Most of this will be in department store renovations and in expansion of the store network. Expenditure will also be allocated to IT projects for improving efficiency.
In June 2012, the Stockmann Group renewed its organisational structure with the aim of accelerating growth in the Lindex and Seppälä fashion chains. The new Fashion Chain Division supports the fashion chains’ strategic goal of expanding successfully in international markets. The Lindex and Seppälä brands will continue to be developed in line with their unique identities. The renewal of the Seppälä brand will be a key success factor in the coming strategy period. Lindex will open about 20 new stores each year and will continue with its successful franchising cooperation. During September 2012 the fashion chain will expand into two new franchising countries, Serbia and Croatia. Seppälä will close its unprofitable Ukraine stores during 2012. Both fashion chains will also carefully evaluate the profitability of their existing stores. At the end of 2012 the Stockmann Group will have stores in a total of 16 countries.
The Department Store Division will focus on improving the competitiveness of its department store network in Finland during the strategy period by renovating the Tampere and Tapiola department stores and opening the Itäkeskus department store in completely new premises. The aim is to improve profitability especially in Stockmann’s Russian operations. As part of the profitability measures, Stockmann will discontinue its Bestseller franchising cooperation in Russia by the end of this year. Another key focus area for the Department Store Division is the strengthening of its multichannel operation by investing considerable resources in online shopping, which operates in parallel with the traditional department store business. As an example, the division’s renewed Akateeminen.com online store opened in summer 2012. In October 2012 the Stockmann department stores’ successful Crazy Days sales campaign will also go online.
The material presented at the Capital Markets Day will be available on the company’s website at http://www.stockmanngroup.fi/fi/cmd after the start of the day’s programme at about 12.45 pm EET.