Stockmann has announced its plan to shutter several stores in its loss-making fashion chain, Lindex.
Lauri Veijalainen, the CEO of Stockmann, on Friday revealed in the department store retailer’s first-quarter interim report that over 20 Lindex stores will be closed by the end of the year. The number of stores facing closure is higher than anticipated at the start of the year by Stockmann.
“As the affordable fashion market is changing rapidly, Lindex will look more closely at its store network. Loss-making stores will be closed,” he said.
The closures are especially a consequence of weaker-than-expected market development in Sweden, according to the interim report.
Helsingin Sanomat pointed out that the department store retailer shut down a total of six Lindex stores in Finland, Norway, Saudi Arabia and Sweden between January and March. The upcoming closures are to be made in the Nordics, mostly outside Finland.
Lindex had a network of 486 stores in 18 countries in March.
Stockmann on Friday reported that its first-quarter revenue fell by almost 15 million euros year-on-year to 202 million euros. Its adjusted operating result, on the other hand, improved moderately from the previous year to -25 million euros between January and March.
“Our first-quarter performance was at last year's level, as we had estimated. Our revenue declined, but gross margin improved. Our inventories are on a healthy level, and thus there were considerably smaller markdowns in the first quarter than in 2017,” commented Veijalainen.
“We expect a similar margin development to continue throughout the rest of the year,” he added.
Stockmann also said its real estate business recorded increases in rental income across all markets and that the sales its biannual sales campaign, Crazy Days, rose by 4 per cent due to strong sales in Finland and the Baltics. The campaign sales picked up by as much as 19 per cent on the online store of Stockmann.
“Crazy Days is now a truly omni-channel campaign. The successful campaign gives us a solid start to the spring sales,” rejoiced Veijalainen.
The Crazy Days campaign was held this spring between 11 and 15 April.
Aleksi Teivainen – HT
Photo: Jussi Nukari – Lehtikuva