The board of directors of the Finnish retail group “Stockmann” has decided to start a strategic evaluation in order to place the “Lindex” brand at the center of the group’s activities and possibly change the group’s name to “Lindex Group”, as well as to explore strategic alternatives for the “Stockmann” department store business, according to “Stockmann”. in a statement to the Helsinki Stock Exchange.
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It states that a possible name change would better reflect the role of the clothing trading unit “Lindex” in the group’s business. In 2022, with revenues of 661 million euros, “Lindex” provided more than two-thirds of the revenues of the “Stockmann” group, while with an operating profit of 90 million euros, “Lindex” was the main source of profit in the “Stockmann” group.
The possible name change would not affect “Stockmann” department stores, which would continue to operate under the “Stockmann” brand, the statement said.
By studying strategic alternatives for the “Stockmann” department store business, the company will evaluate what would be the best environment for business development in the future. These options will include increasing the company’s independence within the group, considering possible changes of ownership or strategic partnerships, or continuing to operate within the current structure.
“Over the years, Lindex has played a fundamental role in improving the group’s operational results. The start of a strategic evaluation, considering a name change and evaluating strategic alternatives for the department store business, is a natural next step in our strategy and reflects the growing importance of Lindex in the group,” says the Board of Directors of Stockmann chair Sari Pohjonen.
“The strategic evaluation will not affect the iconic brand of Stockmann department stores or the day-to-day operations,” she adds.
“Stockmann” plans to complete the strategic evaluation in 2024.
The “Stockmann” group manages the “Stockmann” department stores in Finland, Latvia and Estonia, as well as the clothing trade group “Lindex”, whose stores operate in 18 European and Middle Eastern countries, including the Baltic states.
2023-09-25 09:23:44
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