Stockmann, the well-known Finnish department store operator, has announced its consideration of a name change to better reflect the success and importance of its Lindex fashion brand. The company has initiated a “strategic assessment” to explore this possibility and is also evaluating “strategic alternatives” for its Department Stores business. This move highlights the growing trend within the retail industry where individual brands are overshadowing traditional department stores.
In terms of financial performance, Lindex played a significant role in Stockmann Group’s revenues in 2022, contributing over two-thirds of the total amounting to €661 million. Not only did it generate substantial revenue, but Lindex also contributed €90 million in operating profit, making it the main profit driver for the group. Recognizing this importance, Stockmann believes that a name change would better reflect the significance of the Lindex division within the overall company.
While Lindex may be undergoing a name change, the department stores will continue to operate under the Stockmann brand. As part of the strategic assessment, Stockmann will explore various options for its Department Stores business. These options include increasing its independence within the Stockmann Group, exploring ownership changes or strategic partnerships, or maintaining the current structure.
Sari Pohjonen, the Group Chair of Stockmann, emphasized the growth and importance of Lindex within the company and stated that the strategic assessment aligns with their overall strategy. She also reassured stakeholders that the assessment will not have any impact on the iconic brand or the daily operations of Stockmann Department Stores.
It’s important to note that any decision regarding the potential name change will require approval by Stockmann plc’s general meeting and will be made in the future. Stockmann expects to complete the strategic assessment in 2024, providing clarity on the company’s future direction.
Useful links:
– Stockmann Group Investor Relations
– Stockmann Group Media
