Finland's Stockmann eyes name change & Lindex focus in assessment

The proposed name change will not affect the operations of the Stockmann Department Stores, which will continue to operate under their existing brand name. As part of the strategic assessment, the company is also exploring several options for the future of the Stockmann Department Stores. These include increasing the department stores' independence within the group, contemplating potential ownership changes or strategic partnerships, or maintaining the current organisational structure, the company said in a press release.

Decisions regarding the potential name change are subject to approval by Stockmann's general meeting and are expected to be finalised during 2024. The company has pledged to update stakeholders on the strategic assessment as and when appropriate.

The proposed name change aims to reflect the significant role Lindex plays within the group; in 2022, the division generated revenues of €661 million, accounting for over two-thirds of Stockmann Group's total revenues. Furthermore, with an operating profit of €90 million, Lindex emerged as the primary profit driver for the group.

“Lindex has had a fundamental role in improving the performance of the group over the years. The launch of the strategic assessment of considering a name change and evaluating strategic alternatives for the department stores business is a natural next step in our strategy and reflects Lindex’s growing importance within the group,” said Sari Pohjonen, chair of Stockmann’s board of directors. “The strategic assessment will not impact the Stockmann Department Stores iconic brand or daily business.”

Fibre2Fashion News Desk (DP)