Stockmann continues its efficiency measures in support functions
Sales staff in department stores not to be reduced to ensure excellent customer service.
STOCKMANN plc, Press release 23.1.2018 at 10:00 EET
Stockmann Retail’s operating result in 2017 improved from the previous year. However, the operations were still loss-making and costs for the fourth quarter were higher than the target level. According to the target published in June 2016, the goal is for Stockmann Retail’s adjusted operating result (EBIT) to be positive in 2018.
Stockmann is continuing its efficiency measures with a target of annual cost savings of EUR 8 million at a minimum, to be implemented mainly by the end of 2018. The goal is to adjust the cost structure to correspond with the scope of operations, enhance the release of working capital and develop more effective ways of responding to the accelerating digitalisation.
In order to achieve the savings target, Stockmann will initiate cooperation negotiations in part of its Finnish support functions affecting approximately 350 employees in supply chain, finance and HR. The number of department store sales assistants will not be reduced, as Stockmann wants to ensure excellent customer service. The planned measures may lead to a reduction of approximately 95 positions. A provision of approximately EUR 2 million is booked due to restructuring in the first quarter of 2018.
At the same time Stockmann is investing in digitalisation and is looking for approximately 30 to 40 digital experts for new positions. The digital acceleration project will significantly increase the investments in the development of e-commerce and omnichannel operations. The online store is Stockmann’s fastest-growing sales channel.
Lauri Veijalainen, CEO, tel. +358 9 121 5062
Kai Laitinen, CFO, tel. +358 9 121 5800