Tokmanni Group Corporation opens four new stores in store space released by Anttila
TOKMANNI GROUP CORPORATION COMPANY ANNOUNCEMENT 30 March 2017 09.00 EET
Tokmanni opens four new stores in store space released by Anttila
Tokmanni has agreed to open four new stores in store space released by Anttila. The stores will be opened in shopping center Sello in Espoo, in Seinäjoki, in Kivikukkaro in Turku and in shopping center Metropol in Joensuu. The selling space of these new stores is approximately 5,200 square meters and all stores will be opened in May, with the exception of the Joensuu store which will be opened in the autumn.
As a consequence of department store chain Anttila's bankruptcy, Tokmanni announced in the autumn of 2016 its interest in 14 stores released by Anttila. To date, Tokmanni has signed in total eight agreements for Anttila's store space. Four stores were opened in December 2016 and negotiations for a few stores continue.
Tokmanni opens at least 12 net new stores and 2 relocated stores in 2017
At the beginning of the year Tokmanni announced that it would open at least 9 new stores and 2 relocated stores and increase its selling space by at least 22,000 square meters in 2017. Tokmanni's store with a selling space of approximately 1,100 square meters, in the shopping center Lippulaiva will be closed at the end of July when the shopping center is closed down. Including the new stores mentioned above and the closure of Tokmanni's store in Lippulaiva, Tokmanni will open at least 12 net new stores and 2 relocated stores during the year and its selling space will increase by at least 26,100 square meters.
Definition of new store and stores opened in 2016
According to Tokmanni's definition a store is considered a new or relocated store in its opening year and in the following calendar year. On average a new store is profitable in approximately 12 months and reaches full capacity in approximately 24 months.
New and relocated stores include: (i) new stores opened; (ii) store relocations where the store size changes by 30 percent or more and the assortment increases or is reduced substantially; (iii) store expansions where the store size changes by 30 percent or more. Tokmanni deducts the closed stores from the new and relocated stores on a net basis.
In 2016, Tokmanni opened 6 new stores and 1 relocated store. The selling space of one store was reduced substantially and as a consequence Tokmanni's selling space increased by 7,800 net square meters. To date, Tokmanni has opened 1 new store and 1 relocated stores in 2017. Tokmanni's target is to increase its selling space by approximately 12,000 square meters per year.
Tokmanni's guidance for 2017 remains unchanged
Tokmanni's guidance for 2017 remains unchanged: Tokmanni's expects good revenue growth for 2017 based on the revenue from new stores opened in 2016 and 2017 and low single digit Like-for Like revenue growth. Group profitability (adjusted EBITDA%) is expected to improve from the previous year.
For further information:
Heikki Väänänen
CEO
tel. +358(20) 728 6044
heikki.vaananen(at)tokmanni.fi
Joséphine Mickwitz
Head of IR and Communications
tel. +358 (20) 728 6535
josephine.mickwitz@tokmanni.fi
Tokmanni in brief
Tokmanni is the largest general discount retailer in Finland measured by number of stores and revenue. In 2016, Tokmanni's revenue was EUR 776 million and on average it had approximately 3,200 employees. Tokmanni is the only nationwide general discount retailer in Finland, with 162 stores across Finland as at 31 December 2016.
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