Finland’s Stockmann mulls name change, begins strategic review

Finnish retail giant Stockmann has said its board of directors are to begin a strategic assessment in a bid to bolster value for shareholders, with plans to specifically revolve around a refocusing on the group’s lingerie business, Lindex.

As part of the review, the company said it was mulling a name change to Lindex Group, reflecting the subsidiary’s role after it achieved two thirds of Stockmann’s revenues in 2022 – hitting revenues of 661 million euros.

Stockmann noted that the name change would not impact its Stockmann Department Stores, which would continue under the current brand name, however it did state that it would be investigating “strategic alternatives” for that business.

Through the review, the company said it would evaluate the “best environment for developing the business in the future”, such as increasing its independence within the group and considering possible new ownership changes.

In a release, Stockmann’s chair, Sari Pohjonen, said: “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.”

Decisions relating to the name change are to be made at a later date, while the assessment is expected to be finalised during 2024.