The Stockmann Group’s adjusted operating result in 2016 was up EUR 48.7 million, to EUR 20.2 million (EUR -28.5 million). Operating costs decreased by more than EUR 65 million and helped improve the result despite lower revenue. The Group achieved a positive operating result after two years of heavy losses.
In 2016 we continued our determined progress in implementing our strategy and focused on improving Stockmann’s profitability with several reforms and changes. At the beginning of the year we sold our entire department store operations in Russia and in April we signed an agreement to sell Hobby Hall. This deal was completed on 31 December 2016. Stockmann’s cost base has been significantly decreased, and we are now focusing all our efforts on developing the Stockmann and Lindex brands and on the Real Estate business.
During the year we reinforced our department stores’ product and service offerings with over 50 new brands and numerous partners. We have also renewed our shopping environments from floor to ceiling, especially in Helsinki, the Delicatessen in Turku and in our stores in the Baltic countries. We had fewer price-driven campaigns and continued the efficiency programme launched in 2015, the goal of which is to streamline operations and speed up decision making, in addition to a significant reduction in costs. We have also invested in our online store and digital solutions.Read more
LAURI VEIJALAINEN, CEO
”OUR IMPROVED RESULTS HAVE REINFORCED OUR CONFIDENCE THAT WE ARE ON THE RIGHT PATH.”
The entirely new department store is part of the second stage of the AINOA shopping centre project and will be completed in March 2017.
The concept of the Tapiola department store is unique in that it will offer a seamless multichannel shopping experience and make shopping at Stockmann more convenient. In line with the strategy, the selection of the new department store will focus on fashion, cosmetics, home products and the Delicatessen.
A key success factor for the Stockmann department stores is their high-quality offering that is renewed on a continuous basis.
The selection was expanded during the year by introducing more than 50 new, attractive brands and the selections were extended with watches and jewellery, outdoor textiles and equipment, toys, furniture and café and restaurant services amongst others.
Lindex’s new, more sustainable denim collection, Better Denim was introduced in 2016. Today 100% of Lindex denim assortment is Better Denim, made from more sustainable cotton and in processes using less water, energy and chemicals.
In autumn, a collection of Even Better Denim was launched, that contains post-consumer recycled cotton.
Food is one of Stockmann Retail’s four focus areas in addition to fashion, beauty and home products. As a part of the organisational restructuring carried out in 2016, Delicatessen was made into a separate function responsible for the chain’s food purchasing, store operations, marketing, services, supply chain development and the Stockmann Delicatessen kitchen.
The Delicatessen’s goal is to continue to offer a wide and unique selection, quality, freshness, ease and inspiration.