Home / Knowledge / News / Apparel/Garments / Stockmann sets up new operating model focusing on sales
Stockmann sets up new operating model focusing on sales
03
Jun '14
The codetermination negotiations in Stockmann’s department stores that were launched on 22 April 2014 have been concluded. On the basis of the negotiations, a new operating model focusing on sales has been established for the department stores in Finland.
 
In the new model, administration and support services will be centralised, the number of supervisors will be reduced and work hours will be focused around the busiest hours of trading. 
 
A centralised customer service centre will be set up to take care of customer services provided over the telephone and through online channels. The comparable annual savings target of these changes is around EUR 10 million that will be fully achieved beginning from 2015.
 
The number of personnel reductions will be lower than earlier estimated. It will be possible to implement a significant share of reductions by converting full-time contracts into part-time contracts and by reducing the contracted hours of part-time employees. These correspond to a reduction of 110 man-years.
 
In addition, the number of jobs at the department stores will be reduced by 180 (or 130 man-years), and around 110 of these will take place through redundancies and the rest through voluntary resignations and retirements. The number of customer service personnel in the online stores will not be reduced. The negotiations covered around 3,200 persons, and at the start of the negotiations the reduction was estimated to be a maximum of 330 man-years.
 
The impact on each employee’s employment relationship will become clear by autumn 2014 when the final number of personnel reductions and redundancies will also be known.
 
Codetermination negotiations will be launched in support functions
Stockmann’s cost savings programme to improve profitability will continue. In addition to the measures announced earlier, the target is to achieve additional annual savings of EUR 7 million that will be fully achieved beginning from 2015. The efficiency of the support functions and personnel resources, in particular, will be assessed in order to bring the company’s cost structure in line with the prevailing weak market conditions.
 
To achieve the additional savings, Stockmann will launch codetermination negotiations in most parts of the Department Store Division’s support functions and Corporate Administration in Finland. The negotiations will affect approximately 1 200 persons. The maximum personnel reduction is estimated at 180 persons.
 
The negotiations are expected to be concluded at the earliest at the end of August 2014. The progress of measures will be reported in the interim reports and separately if necessary.
 

Stockmann


Must ReadView All

Apparel/Garments | On 30th Apr 2016

Britain keen on new ventures in textiles and garment

British High Commissioner to India Sir Dominic Asquith, has said that ...

Apparel/Garments | On 30th Apr 2016

‘India’s apparel sector needs to revisit policies’

Apparel Export Promotion Council (AEPC)’s Additional Secretary...

Textiles | On 30th Apr 2016

Bangladesh spinners wary of another gas price hike

Bangladeshi cotton spinners have expressed concern that they may lose ...

Interviews View All

Stuart Harker
Business Environmental Performance Initiative (BEPI)

How do you rate consumer awareness with regards to environmental...

Rajesh Goradia
Vitruvien

How is the market for bespoke collection in India as compared to other...

Anurag Rajpal
American Swan Brand

How will the Union Budget 2014-15 do good to the Indian textile sector? Is ...

Michael Kamm
Sympatex Technologies GmbH

Sympatex Technologies has been one of the leading global suppliers of high ...

Rory Holmes
INDA - The Association of the Nonwoven Fabrics Industry

Rory Holmes is President of INDA, the Association of the Nonwoven Fabrics...

Mr. Yogesh Agrawal
Shri Ambica Polymer Pvt. Ltd.

Mr. Yogesh Agrawal started Shri Ambica Polymer Pvt. Ltd. in the year 2005. ...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
April 2016

F2F Magazine

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


<%@ language="VBScript" %>
feedback
We would love to hear from you about your experience using the new interface. A quick review of yours would help us give you a better experience.
Advanced Search