Marimekko - Company Announcement

INFORMATION ON MARIMEKKO'S EXPANSION AND ON CHANGES IN THE STORE NETWORK IN 2014

THE AIM IS TO OPEN A TOTAL OF 15-25 NEW MARIMEKKO STORES AND SHOP-IN-SHOPS

Marimekko Corporation, Stock Exchange Release, 5 February 2014 at 8.35 AM

Marimekko is experiencing a dynamic phase of internationalisation. In 2014, the
main thrust in expansion will be on openings of retailer-owned Marimekko stores
and shop-in-shops. The aim is to open a total of 15-25 new Marimekko stores and
shop-in-shops. Of these, 1-3 would be company-owned stores. Also, the company
will concentrate on enhancing the operations of company-owned stores opened in
recent years and improving their profitability. 

Asia-Pacific

The Asia-Pacific region is the company's second-biggest market area, and this
year Marimekko will continue to underpin its position in this region. The
prospects for the economy and retail trade are good in Asia, and the company
sees growing demand in the region for its design. The intention in 2014 is to
open at least six new Marimekko stores, two in Japan, two in Hong Kong, one in
mainland China and one in South Korea. Marimekko's own stores in Australia have
done well, and the company is currently seeking a location for a second store
in Melbourne. 

In the past two years, new markets have been opened up in China, Hong Kong and
Taiwan. In mainland China and Hong Kong, it is intended to open 15 Marimekko
stores by the end of 2016. The openings are proceeding according to plan: four
stores have already been opened and another three will follow this year. In
Taiwan, the intention is to open a total of five stores and shop-in-shops by
the end of 2018. The first of these was opened in Taipei in November 2013. 

With the exception of the Australian stores, all the Marimekko stores in the
Asia-Pacific region are retailer-owned. This model ties up less of Marimekko's
resources and guarantees an in-depth knowledge of the local market. The stores
comply with the same concept as Marimekko's company-owned stores. 

North America

In North America, the focus of expansion this year is on developing
shop-in-shop partnerships. Cooperation with the Canadian modern furniture brand
EQ3 is proceeding as agreed. The intention is to open 10 Marimekko
shop-in-shops by the end of 2014. Eight of these have already been opened -
seven in Canada and one in the United States - and the remaining two will open
this year in Vancouver and Burlington. The partnership with the leading Mexican
department store chain El Palacio de Hierro continues: in autumn 2014, two new
shop-in-shops will open in Mexico City, after which Mexico will have a total of
six Marimekko shops. 

The shop-in-shop partnership with the American home furnishings retailer Crate
and Barrel will end in summer 2014. The reason behind this is changes in Crate
and Barrel's strategic policies. Crate and Barrel's exclusive rights to retail
Marimekko's interior decoration products in the United States and Canada in the
home specialty and department store chain category were ended in 2012, since
which time Marimekko has been able to sign partnership contracts with other
high-quality department stores. The termination of the shop-in-shop partnership
is of little financial importance to Marimekko. Crate and Barrel will continue
to retail Marimekko products. 

The United States has better economic forecasts than Europe, but its retail
market is one of the world's most heavily competed. Marimekko has six
company-owned stores in the United States which are still partly in the launch
phase. These stores play a central role not only as a distribution channel but
also in building the brand. Effort was put into developing the operations of
the stores in 2013 and this work continues this year as well. For some stores,
making improvements in profitability has proven more challenging than had been
forecast, and sales have been weaker than expected. The company is currently
negotiating the termination of the lease on the store in Beverly Hills and
investigating possibilities for moving the store to a new location. 

Northern Europe

The economic prospects for the whole of Europe are unimpressive and growth is
sluggish in the region. In Finland, the state of the retail market is currently
extremely weak. Marimekko will concentrate in Northern Europe this year on
developing the operations of its own stores, e-tailing and department store
partnerships. Four openings are being planned, three of which are
shop-in-shops. 

MARIMEKKO CORPORATION
Corporate Communications

Piia Kumpulainen
Tel. +358 9 758 7293
piia.kumpulainen@marimekko.fi

DISTRIBUTION:
NASDAQ OMX Helsinki Ltd
Key media

Marimekko is a Finnish textile and clothing design company renowned for its
original prints and colours. The company designs and manufactures high-quality
interior decoration items ranging from furnishing fabrics to tableware as well
as clothing, bags and other accessories. When Marimekko was founded in 1951,
its unparalleled printed fabrics gave it a strong and unique identity.
Marimekko products are sold in approximately 40 countries. In 2013, brand sales
of Marimekko products worldwide amounted to approximately EUR 191 million and
the company's net sales were EUR 94 million. The number of Marimekko stores
totalled 133 at the year end. The key markets are North America, Northern
Europe and the Asia-Pacific region. The Group employs around 500 people. The
company's share is quoted on NASDAQ OMX Helsinki Ltd. www.marimekko.com