Stockmann in trouble

The iconic Finnish department store chain Stockmann is in trouble. The Stockmann Group's problems are mostly the same as every other Finnish department store chains problems, caused by financial crisis, recession, the dawn of online shopping and the Ukrainian crisis punishing Russian Ruble. According to Helsingin Sanomat, Stockmann does worse than an average department store and is losing market share fast. Not surprisingly, Stockmann is working on a new strategy. The dismissal of many employees in recent times are not enough.

According to Stockmann's Chairman of the Board Kaj-Gustaf Bergh, in the same time as these reforms are made it is essential to hold on to tradition and premium quality for which the chain is famous for. Bergh talks about "omni-channel retailing", which means that consumers make purchases with their smartphones or computers online.

Online shopping has eliminated the need to go to an actual department store, as the same premium brands are available online with competitive prices.

But according to Professor of Marketing Outi Uusitalo of the University of Jyväskylä, actual department stores aren't dead. In her opinion, what's remarkable in Stockmann has been its ability to make itself important to its customers. Although Stockmann has always represented quality and it has always been considered expensive, it has always been accessible to all Finns despite their economical status.

One opportunity for regular, physical department stores is what researchers call "social shopping": It means that customers want shopping to be an experience they can share in social media, for example sharing pictures in Instagram. Screenshots of webstores are rarely as interesting as pictures taken in historical department stores such as Stockmann in Helsinki.

Source:

http://www.hs.fi/talous/a1405134873073