Stockmann - Company Announcement

Stockmann's new strategic direction

Placing the inspirational customer experience at the core

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. 

Fashion Chains

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. 

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

www.stockmanngroup.com


STOCKMANN plc

Per Thelin
CEO


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