In recent news, Stockmann, a leading Finnish department store operator and owner of the globally renowned Lindex fashion brand, has initiated a strategic assessment. This strategic move includes considering a potential name change to «Lindex» and exploring various strategic alternatives for its Department Stores business.
This strategic shift is aimed at maximizing shareholder value by refocusing the company’s efforts on the flourishing Lindex brand.
This contemplated name change underscores a significant shift in the retail landscape. It reflects the growing prominence of individual brands like Lindex, which have outshone traditional department stores, becoming the stars of retailers’ portfolios.
Stockmann envisions that a potential name change will more accurately represent Lindex’s pivotal role within the group. In 2022, Lindex accounted for over two-thirds of Stockmann Group’s revenues, with an impressive operating profit of €90 million, firmly establishing itself as the primary profit driver.
The department stores will continue to operate under the iconic Stockmann brand. Stockmann will explore various options for the future development of this business segment, including enhancing its independence within the group, exploring ownership changes, strategic partnerships, or maintaining the existing operational structure.
Sari Pohjonen, Group Chair, highlighted the importance of this transformation, stating, «Lindex has played a crucial role in elevating the group’s performance over the years. The strategic assessment, which includes a potential name change and exploration of strategic alternatives for the Department Stores business, aligns seamlessly with our overarching strategy. Importantly, this strategic evolution will not impact the cherished Stockmann Department Stores brand or its daily operations.»
It’s essential to note that any decision regarding the name change will ultimately require approval at Stockmann plc’s general meeting and is expected to be finalized in 2024 as part of the comprehensive strategic assessment. This marks a significant milestone in Stockmann’s journey toward aligning its brand portfolio with the thriving Lindex division.