Stockmann - Company Announcement

Codetermination negotiations concluded in Stockmann’s support functions: new service functions introduced

Helsinki, Finland, 2015-06-02 08:00 CEST (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 2.6.2015 at 9:00 EET 

Stockmann is renewing the support functions of its Retail and Real Estate
businesses and its Group Administration in Finland. The codetermination
negotiations associated with these changes have now been concluded. As the
outcome of the negotiations, 100 jobs will be reduced in support functions. 56
of this figure will be achieved through dismissals and the remaining part will
mainly include endings of fixed-term contracts. The codetermination
negotiations concerned approximately 1 100 persons working in support
functions. The negotiations did not concern sales personnel in the department
stores. 

The changes are based on Stockmann's new strategy, under which the company will
focus on its key businesses and explore new and even better ways to fulfil its
customers' wishes. 

“By streamlining our support function processes we can increase the agility of
our operations and improve our competitiveness. Our goal is to boost our
operating efficiency in the current market environment and return Stockmann to
profitability. The primary purpose of the new service functions is to ensure
that our sales staff can focus on sales and the customers at our department
stores,” says CEO Per Thelin. 

The negotiations now concluded are part of our efficiency programme, with which
Stockmann will seek EUR 50 million in annual cost-savings mainly from the
beginning of 2016. Stockmann expects to attain the full saving target by the
end of 2016. A significant part of the cost savings will be reached through
personnel reductions which may affect up to 420 people in support functions in
Finland and Russia during 2015 and 2016. The estimated reduction need in
Finland is a maximum of 260 persons. 

Further information:
Per Thelin, CEO, tel. +358 9 121 5801
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com


STOCKMANN plc

Per Thelin
CEO


Distribution:
Nasdaq Helsinki
Principal media