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RNB streamlines JC Concept

01
Dec '08
Purchasing patterns among our customers in the JC stores have changed as fashion has become increasingly ageless. Within the JC concept, we are also experiencing higher demand for products in smaller sizes, while demand for products in the J-Store concept has declined.

As a step in addressing the changed purchasing patterns and, at the same time, focusing on the area in which JC is strongest, a decision has been made to offer an extended range that includes smaller sizes and thus replace the current J-Store range, which will be withdrawn from the stores.

The streamlining toward a single range within JC, combined with savings programs announced earlier, means that costs will be reduced by SEK 104 M on an annual basis for JC, with full effect from the 2009/2010 financial year.

The effect for the current financial year is expected to be SEK 55 M in reduced costs as a result of cost-savings and streamlining toward a single range. The amount of SEK 55 M is included in the RNB savings program of SEK 110 M that was announced earlier. The assessment is that the effect of the streamlining process on sales will only be marginally negative in the short term.

In total, approximately 24 positions at head office will be affected and these persons will be served notice of termination of employment as a result of the changes at JC.

RNB RETAIL AND BRANDS AB is organized on the basis of two business areas – Polarn O. Pyret and a distribution platform for national and international brands. Polarn O. Pyret is a brand focused on baby and children's wear.

The distribution platform consists of two main areas, Department Stores and Store Concepts. Department store operations are conducted via stores in the NK, Steen & Ström, Illum and Kosta oulet department stores. The store concepts comprise JC, J-Store, Brothers and Sisters.

RNB RETAIL AND BRANDS


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