Gone Finnish
On the sale of the company's department stores Reviva Holdings reported on the Stockmann website. The press release says that in Russia Stockmann will continue to own only the "Nevsky Centre" in St. Petersburg. Reviva Holdings will pay € 5 million in cash for 100% of shares of "Stockmann". The transaction is expected to close by 31 January 2016, but must first obtain the consent of the Federal Antimonopoly Service.
Today in Russia there are seven department stores under the brand Stockmann - five in Moscow and one in St. Petersburg and Yekaterinburg. But only one room is owned, leased the rest of the company - will be sold the right to lease.
According to general director of Stockmann Per Thelin, business in Russia "has been unprofitable for the past several years, and significant devaluation aggravated damages."
Reviva Holdings already owns "Debruss", which is a network of exclusive franchisee of British department store Debenhams in Russia. The company operates two department stores in Moscow - in shopping malls "fleet" and "Mega Belaya Dacha".
Within two years after closingthe buyer will retain the right to use Stockmann brand, but then the buyer plans to convert stores under the sign Debenhams. "We clearly understand the potential opportunities and challenges that we will face in dynamically changing conditions of the Russian market," - are reported words predpravleniya Reviva Jacob Panchenko.
The representative of "Debruss" did not respond to additional questions by RBC. A letter sent by e-mail Stockmann's, remained unanswered.
The sum of the deal looks more symbolic, according to general director of consulting company "Shop stores" Dmitry Burlov and head of Fashion Consulting Group Anna Lebsak-Kleimans: it will help to hold work of the transitional period.
Area Stockmann department store Debenhams is slightly higher than the standard request for the search for new areas - about 5 thousand sq. M. m, draws attention to head of the company's services to retailers JLL Elena Zadorozhna. "Debruss" within the framework of this transaction gets an excellent opportunity for growth Debenhams business in Russia, occupying several areas in key shopping sites, consideringIt is: "However, if the shopping center" Mega "brand Debenhams is perfect in terms of positioning, the big question, in our opinion, will be the match of the premium department store facilities available in Stockmann's portfolio".
Shopping from the 80s
Finnish concern Stockmann was founded in 1862. In 1989, the first Russian store retailer opened in GUM Moscow as a joint Soviet-Finnish company "Kalinka-Stockmann", becoming the first foreign store retailer in the Soviet Union. In 1998, already a regular store Stockmann opened in torgtsentre "Smolensky Passage", where he worked until 2009.
According to the research company Synovate Comcon, conducted in the third quarter of 2015, "Stockmann" know 42% of Russians aged 10 years, living in the cities where the retailer stores opened - in Moscow, St. Petersburg and Yekaterinburg.
In reporting Stockmann Russian market is considered one of the main: in the structure of the group revenue Russia accounts for 15.6%, more than the share of only Finland - 47.9%, as well as collectively in Sweden and Norway - 27.9%. In total the company operatesin 16 countries. According to the data, which publishes the company's revenue in 2014 Stockmann department stores in Russia amounted to € 240 million, an operating loss of - € 26 million (in 2013, the loss amounted to € 6,4 m).
Also, an international group consists of 189 stores under the brand Seppälä and 491 - Lindex. In Russia continues to operate only one store under the brand Seppälä and Lindex 11.
In February 2014 Stockmann announced its plans to close the Seppälä stores in Russia, as of June 1 of that year, there were still 27 - in St. Petersburg, Moscow, Volgograd, Yekaterinburg, Kazan, Omsk, etc. In addition, in February 2015, of the company. announced the closure of Russian Lindex and half of Moscow Stockmann.
Stockmann Sales in Russia for some time now falling, says CEO of Clever Fashion Maria Gerasimenko. "Because of the devaluation of the ruble Stockmann formally shifted to a higher segment -" medium plus "-" premium ", while Debenhams operates more in the segment of" medium "-" average plus ", - she said. - Now, in the crisis, all the clothes retailers are faced with a fall in demand when buyers decide not toSimply choose one brand to another and refuse in principle the purchase. " But the segment in which Stockmann's work, more than any other has suffered during the crisis, said Gerasimenko, if in the luxury segment, demand has fallen by about a third in real terms, the segment, which runs Stockmann - twice.
«Stockmann - it stores aimed at a good middle class, in which the most hit by the crisis: buyers are starting to go in the discounters," - notes the analyst Artem Kisluk RMG. Targeting medium and premium price segment - is not the best strategy in a crisis, agrees CEO of Y Consulting Daria Nuclear. "If the whole of Russia, real disposable income fell by 7.4% in the group of the population with an income of 80-200 thousand. Rub. monthly drop exceeds 40%, "- she explains.
"Some of the networks have gone, because they could not afford to incur losses due to Russia and decided to leave the country in order to preserve financial stability", - explains Gerasimenko. However, some companies working example, in segment ekonomsegmente or children's products, on the contrary, contayut grow in crisis.
Traditionally, the reasons why foreign retailers are leaving Russia, only two, says Burlov: a company decides to leave for political reasons, decided to change the priorities of development, or the story of the prices - falling revenues, which occurred due to the devaluation of the ruble and reduce the purchasing power of the population .
. If in 2014 the volume of clothing and footwear market in Russia, according to the Fashion Consulting Group, fell by 8% to 2.2 trillion rubles, by the end of this is projected to fall even more - by 20%, while in the mainstream segment - just 35-40%.
Most retailers are suffering, working in a segment of "medium plus". Their customers - a highly paid professionals and small businesses, which crisis has hit hardest, said Lebsak-Kleimans. "Most of these customers reduce waste - reducing the number of purchases, waiting for sales or refuses the usual brands," flows "in the cheaper segment," - she adds.
Stockmann - not the first retailer, stretching from Russiaon the market against the backdrop of the economic crisis. Its stores have already closed network Desigual, New Look, River Island, Esprit. One of the leading apparel reteyla - Adidas Network - announced its intention to hold the rotation of Russian stores closed during 2015 to 200 points.
On the sale of the company's department stores Reviva Holdings reported on the Stockmann website. The press release says that in Russia Stockmann will continue to own only the "Nevsky Centre" in St. Petersburg. Reviva Holdings will pay € 5 million in cash for 100% of shares of "Stockmann". The transaction is expected to close by 31 January 2016, but must first obtain the consent of the Federal Antimonopoly Service.
Today in Russia there are seven department stores under the brand Stockmann - five in Moscow and one in St. Petersburg and Yekaterinburg. But only one room is owned, leased the rest of the company - will be sold the right to lease.
According to general director of Stockmann Per Thelin, business in Russia "has been unprofitable for the past several years, and significant devaluation aggravated damages."
Reviva Holdings already owns "Debruss", which is a network of exclusive franchisee of British department store Debenhams in Russia. The company operates two department stores in Moscow - in shopping malls "fleet" and "Mega Belaya Dacha".
Within two years after closingthe buyer will retain the right to use Stockmann brand, but then the buyer plans to convert stores under the sign Debenhams. "We clearly understand the potential opportunities and challenges that we will face in dynamically changing conditions of the Russian market," - are reported words predpravleniya Reviva Jacob Panchenko.
The representative of "Debruss" did not respond to additional questions by RBC. A letter sent by e-mail Stockmann's, remained unanswered.
The sum of the deal looks more symbolic, according to general director of consulting company "Shop stores" Dmitry Burlov and head of Fashion Consulting Group Anna Lebsak-Kleimans: it will help to hold work of the transitional period.
Area Stockmann department store Debenhams is slightly higher than the standard request for the search for new areas - about 5 thousand sq. M. m, draws attention to head of the company's services to retailers JLL Elena Zadorozhna. "Debruss" within the framework of this transaction gets an excellent opportunity for growth Debenhams business in Russia, occupying several areas in key shopping sites, consideringIt is: "However, if the shopping center" Mega "brand Debenhams is perfect in terms of positioning, the big question, in our opinion, will be the match of the premium department store facilities available in Stockmann's portfolio".
Shopping from the 80s
Finnish concern Stockmann was founded in 1862. In 1989, the first Russian store retailer opened in GUM Moscow as a joint Soviet-Finnish company "Kalinka-Stockmann", becoming the first foreign store retailer in the Soviet Union. In 1998, already a regular store Stockmann opened in torgtsentre "Smolensky Passage", where he worked until 2009.
According to the research company Synovate Comcon, conducted in the third quarter of 2015, "Stockmann" know 42% of Russians aged 10 years, living in the cities where the retailer stores opened - in Moscow, St. Petersburg and Yekaterinburg.
In reporting Stockmann Russian market is considered one of the main: in the structure of the group revenue Russia accounts for 15.6%, more than the share of only Finland - 47.9%, as well as collectively in Sweden and Norway - 27.9%. In total the company operatesin 16 countries. According to the data, which publishes the company's revenue in 2014 Stockmann department stores in Russia amounted to € 240 million, an operating loss of - € 26 million (in 2013, the loss amounted to € 6,4 m).
Also, an international group consists of 189 stores under the brand Seppälä and 491 - Lindex. In Russia continues to operate only one store under the brand Seppälä and Lindex 11.
In February 2014 Stockmann announced its plans to close the Seppälä stores in Russia, as of June 1 of that year, there were still 27 - in St. Petersburg, Moscow, Volgograd, Yekaterinburg, Kazan, Omsk, etc. In addition, in February 2015, of the company. announced the closure of Russian Lindex and half of Moscow Stockmann.
Stockmann Sales in Russia for some time now falling, says CEO of Clever Fashion Maria Gerasimenko. "Because of the devaluation of the ruble Stockmann formally shifted to a higher segment -" medium plus "-" premium ", while Debenhams operates more in the segment of" medium "-" average plus ", - she said. - Now, in the crisis, all the clothes retailers are faced with a fall in demand when buyers decide not toSimply choose one brand to another and refuse in principle the purchase. " But the segment in which Stockmann's work, more than any other has suffered during the crisis, said Gerasimenko, if in the luxury segment, demand has fallen by about a third in real terms, the segment, which runs Stockmann - twice.
«Stockmann - it stores aimed at a good middle class, in which the most hit by the crisis: buyers are starting to go in the discounters," - notes the analyst Artem Kisluk RMG. Targeting medium and premium price segment - is not the best strategy in a crisis, agrees CEO of Y Consulting Daria Nuclear. "If the whole of Russia, real disposable income fell by 7.4% in the group of the population with an income of 80-200 thousand. Rub. monthly drop exceeds 40%, "- she explains.
"Some of the networks have gone, because they could not afford to incur losses due to Russia and decided to leave the country in order to preserve financial stability", - explains Gerasimenko. However, some companies working example, in segment ekonomsegmente or children's products, on the contrary, contayut grow in crisis.
Traditionally, the reasons why foreign retailers are leaving Russia, only two, says Burlov: a company decides to leave for political reasons, decided to change the priorities of development, or the story of the prices - falling revenues, which occurred due to the devaluation of the ruble and reduce the purchasing power of the population .
. If in 2014 the volume of clothing and footwear market in Russia, according to the Fashion Consulting Group, fell by 8% to 2.2 trillion rubles, by the end of this is projected to fall even more - by 20%, while in the mainstream segment - just 35-40%.
Most retailers are suffering, working in a segment of "medium plus". Their customers - a highly paid professionals and small businesses, which crisis has hit hardest, said Lebsak-Kleimans. "Most of these customers reduce waste - reducing the number of purchases, waiting for sales or refuses the usual brands," flows "in the cheaper segment," - she adds.
Stockmann - not the first retailer, stretching from Russiaon the market against the backdrop of the economic crisis. Its stores have already closed network Desigual, New Look, River Island, Esprit. One of the leading apparel reteyla - Adidas Network - announced its intention to hold the rotation of Russian stores closed during 2015 to 200 points.
Business
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