Stockmann, Finland's leading department store group with operations in more than a dozen countries, released its second quarter results today. While operating profit improved in Sweden, Norway and Russia, it decreased in its domestic market, Finland.
“Consumers have clearly responded to the dire economy," said Stockmann CEO Hannu Penttilä.
For example, during the late spring and early summer, some 50,000 Finns have lost their jobs.
“We've had a lot of bad economic news. Taxation has been tightened, and the outlook is uncertain,” says Penttilä. “Consumers, of course, react to these things.”
The Lindex index
Stockmann said Friday that it turned a profit in the second quarter of 2013 after posting a loss in the first quarter. One of the bright spots for the Stockmann group was its Lindex budget fashion chain, which Penttilä believes is one of the best indicators of the Finnish consumer, who is shopping less at Stockmann (considered high-end) and more at Lindex.
"A degree of price awareness among Finnish consumers has increased," says Penttilä.
“Lindex operates in 16 markets. They have achieved very good progress in all markets, but Finland's development is clearly the most modest,” he added.
Penttilä forecast that the Finnish market will experience low or zero growth for some time.
