Stockmann: Further actions expected

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Stockmann’s General Meeting elected two new members to the board – and Kaj-Gustaf Bergh as the Chairman.

CEO Per Thelin gave an overview of the challenges and the implementing of the new strategy – and announced that further decisions and actions under the new strategy will be made during the coming months.

The Annual General Meeting of Stockmann was held in Helsinki on 19 March 2015.

In accordance with the Committee’s proposal, CEO Kaj-Gustaf Bergh, Managing Director Kari Niemistö, Charlotta Tallqvist-Cederberg, M.Sc. (Econ.), Per Sjödell, M.Sc. (Econ.), Carola Teir-Lehtinen, M.Sc., and Managing Director Dag Wallgren were re-elected as members of the Board of Directors.

Torborg Chetkovich, Managing Director of Swedavia AB, and Jukka Hienonen, M.Sc. (Econ.), were elected as new members, replacing Kjell Sundström and Eva Liljeblom.

The Board of Directors, re-elected CEO Kaj-Gustaf Bergh as its Chairman, and Managing Director Kari Niemistö as its Vice Chairman.

Stockmann’s CEO Per Thelin said the outlook remains challenging, particularly for the loss-making Stockmann Retail business. The other divisions, Real Estate and Fashion Chain are profitable.

To achieve a turnaround in its Retail business, Stockmann must adapt more quickly to the changing environment and be more competitive.

The actions required under the new strategy have begun. Stockmann’s new strategy is enhanced customer focus and a rationalised operating model to bring efficiency and agility. An efficiency programme with an annual cost savings target of  50 million EUR was launched in February 2015.

The programme includes measures to improve the use of store space and decisions on the optimal network of department stores.  The Real Estate division is increasingly leasing out retail space to tenants, which will increase the value of properties and bring added value to the customer.

In Russia the plan is to close down three department stores in Moscow by the end of 2016 and all Lindex stores in Russia during 2015 and 2016.

A key part of the programme is a review of the support functions in Finland and in Russia, in order to increase efficiency at a significantly lower cost level.