Stockmann seeks profitability by closing its Russian Seppala stores

Finnish retail group Stockmann announced on Thursday its restructuration plans,

advancing the closedown of a great number of fashion retail stores in Russia and the sale of its mail-order business.

In a note issued Thursday, Stockmann said that it is carrying out a process of strategy adjustment whereby the retailer will focus on three divisions: Stockmann department stores, fashion chains and real estate.

Off the back of this plan, Stockmann will gradually shut down 16 Seppala fashion shops in Russia during the rest of 2014 and 2015 to boost profitability. It´s noteworthy that Stockmann had 34 Seppala fashion shops in Russia at the beginning of 2014 but given the economic downturn in the country, 18 Seppala stores have been closed so far this year.

Therefore, by the end of 2015, all Seppala stores will be closed in Russia.

In addition, Stochmann will look for a new owner for its Hobby Hall mail order subsidiary, which has an estimated turnover of 100 million euros.

The listed company was founded in Finland in 1862.