Stockmann to revise its department stores' operating model in Finland: restructuring will create an organisation focused on sales and customer service

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| Source: Stockmann Oyj Abp
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Helsinki, Finland, 2014-04-15 07:30 CEST (GLOBE NEWSWIRE) -- STOCKMANN plc, Company Announcement 15.4.2014 at 8:30 EET

Stockmann's Department Store Division will continue its restructuring measures. In the weak market situation in the retail sector, the goal is to create an efficient sales-focused organisation that serves customers both at stores and online. The comparable annual savings target for the structural changes is around EUR 10 million. The savings would be fully achieved beginning from 2015.

”We already made several permanent and temporary cost reductions in 2013, with which we achieved savings of about EUR 30 million. We cannot achieve any more savings with temporary measures, such as layoffs and reductions in the number of seasonal employees, without compromising our customer service. We have to press on with our restructuring measures to ensure that the sales professionals at our stores can focus solely on selling,” says Maisa Romanainen, Director of the Department Store Division.

”Stockmann’s earnings in Finland fell clearly in 2013, despite the cost savings achieved. There is no improvement in sight, as consumers' purchasing power is being reduced and confidence in the economy is low. If we are to succeed in keeping our department stores competitive, we must renew our structures,” Maisa Romanainen explains.

Due to the planned new organisational model, Stockmann will initiate codetermination negotiations that will cover the personnel at Stockmann's department stores in Finland, the customer service employees of Stockmann.com and Akateeminen.com and after-marketing personnel – all in all, a total of around 3,200 employees. The negotiation proposal states that the restructuring could lead to a personnel reduction of up to 330 man-years (FTE). The negotiations will also concern changes to job descriptions, among other things.

The planned changes form part of Stockmann's cost savings programme initiated in spring 2013. The restructuring of the Department Store Division's marketing and logistics has been announced earlier. Structural changes are still being mapped out in other parts of the organisation.

Further information:
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558
Maisa Romanainen, Executive Vice President, Director of the Department Store Division,
tel.
+358 9 121 5230

www.stockmanngroup.com


STOCKMANN plc

Hannu Penttilä
CEO


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