Stockmann - Company Announcement

Stockmann launches an efficiency programme aiming at annual cost savings of EUR 50 million

Helsinki, Finland, 2015-02-13 07:05 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Company Announcement 13.2.2015 at 8:05 EET 

Stockmann is to streamline its operations in order to turn its earnings
performance around. To this end, it is launching an efficiency programme with
an annual cost savings target of EUR 50 million. The programme includes planned
store closures and various measures to decrease costs and inventories. The goal
is to simplify and speed up processes in the support functions, improve
cooperation models with suppliers and develop the organisation's operating
practices, thereby better serving the store operations and improving customer
service in line with the new strategy. 

Evaluating the size of the store network is an integral part of the efficiency
programme. Stockmann is planning to close down four loss-making department
stores. Three of these department stores are located in Mega shopping centres
in the Moscow region in Russia. The aim is to close down the stores by the end
of 2016, after which Stockmann would focus in Russia on its two remaining
Moscow department stores located closer to the city centre and on the stores in
St Petersburg and Ekaterinburg. 

Stockmann is also considering closing down its department store in Oulu, as the
current lease agreement will expire in 2017. As a consequence, co-determination
negotiations affecting all employees at the store will be started. The Oulu
store currently employs around 230 people, of whom around 90 are full-time
employees. 

Due to the insecure outlook for the retail market in Russia, Lindex is also
planning to close down its stores in Russia. The fashion chain currently has 19
stores in Russia. Lindex will focus on strengthening its operations in its main
markets and expanding in other markets. The first Lindex store in the UK will
be opened in London in March. 

As part of the programme, Stockmann is reviewing its support functions, and the
savings measures in these functions will be specified during the spring.
Centralising warehouse operations at a single new distribution centre in 2016
will also reduce costs, as announced earlier. 

The efficiency programme does not include any sales staff reductions in the
continuing department stores. The new operating model for the department stores
in Finland was introduced in September along with a centralised customer
service centre. 

The effects of the programme will be reflected in Stockmann's earning mostly
beginning in 2016. The total targeted cost savings impact is expected by the
end of 2016. 

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