Finnish department store and retail group Stockmann Oyj
(STCBV.HE) said Tuesday it has chosen its strategic direction and
taken the first steps to implement it.
It said negotiations for a new lease agreement for the Oulu
department store were unsuccessful and consequently Stockmann will
close down the store in early 2017 at the latest. The decision will
affect all employees, currently around 230 people, in the
store.
Stockmann also said it will close down the three loss-making
department stores in the Mega shopping centres in Moscow by the end
of 2016, which currently employ around 700 people in total.
As the next step in its efficiency programme, Stockmann is
planning to restructure its support functions in Finland and in
Russia, with a significant part of the cost savings expected to be
reached through personnel reductions which may affect up to 420
people.
In Finland, Stockmann will start codetermination talks that will
concern around 1,100 employees in the support functions within
Stockmann Retail, Real Estate and Group Administration. The
potential reduction need in Finland is at most 260 people, mainly
through ending of fixed-term contracts and layoffs.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@WSJNordics
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