Finland’s iconic retailer, Stockmann, is taking drastic measures to weather the storm created by the current coronavirus pandemic. The company plans to engage in negotiations with all 1,400 of its employees, with the aim of implementing temporary layoffs that could stretch up to three months. This move comes as no surprise given Stockmann’s struggles in recent years, largely driven by the continuous surge in popularity of online shopping, which has affected the performance of its prestigious department stores.

Since 2013, Stockmann has been grappling with declining financial performance, failing to generate any annual net profits. The constant challenges posed by the changing retail landscape have forced the company to undertake cost-cutting initiatives and divestments in order to navigate the tough market conditions. However, the coronavirus outbreak has added an additional layer of complexity to Stockmann’s existing troubles, prompting the need for immediate action.

While specific figures remain undisclosed, Stockmann did acknowledge that the coronavirus situation would undoubtedly have a negative impact on its short-term business. Given the restrictions imposed and the general slowdown in economic activity, the company anticipates a significant decline in sales in the forthcoming period. Hence, the temporary layoffs are deemed necessary to safeguard the sustainability of the business in an uncertain and volatile market.

It is undoubtedly a challenging time for Stockmann, as it now confronts the effects of both long-standing difficulties and the unprecedented global health crisis. By initiating the necessary negotiations, the company aims to mitigate potential losses and ensure the company’s survival in these turbulent times.

Useful links:
1. Stockmann Official Website
2. Finnish Statistics: Retail Trade Performance