RNB Retail focuses on reducing costs as sales drop

RNB Retail and Brands AB has announced that its subsidiaries Department & Stores Europe, Polarn O. Pyret and Brothers have all been severely impacted by the ongoing Covid-19 pandemic. As a result, the company said in a statement, retail sales halved during the months of March and April, while e-commerce increased. The company added that during the initial phase of the corporate reorganization, the companies focused on reducing costs and streamlining their business.

“We have followed our plan and taken drastic measures both financially and, in the operations, to improve the companies’ financial situation and create sustainability. As a result, the companies have unfortunately reduced the number of employees and their costs, such as purchases,” said Kristian Lustin, CEO of RNB Retail and Brands.

RNB Group companies initiates measures to cut costs amid pandemic The company further said that Department & Stores’ turnover is forecasted to amount to approximately 760 million Swedish krona. Department & Stores has therefore reduced personnel costs at the NK department stores and reduced product purchasing. The company has an ongoing constructive dialogue with its landlord, Hufvudstaden, which owns the NK department stores in Stockholm and Gothenburg.

Brothers has been heavily affected by decreasing suit sales following cancellation of many spring and summer events, especially graduation ceremonies and other holidays. To decrease costs, Brothers has closed five shops in Sweden and all twelve shops in Finland and decreased product purchases, while initiating negotiations with its landlords.

RNB said, analysis of long-term profitability conducted by Polarn O. Pyret has so far led to the closing of twelve shops and a review of the operations abroad, while e-commerce has increased its sales multi-fold in recent weeks as the pandemic hinders shopping in retail stores.

Picture:Facebook/Polarn O. Pyret UK & Ireland