Stockmann sells shopping malls in Riga and Tallinn for EUR 87 million

As part of its restructuring plans, the Finnish retailer Stockmann has sold its shopping malls in Riga and Tallinn to Estonian Viru Keemia Grupp (VKG) for EUR 87 million, as mentioned in the company’s statement to Nasdaq.
Stockmann will use the acquired funds to reduce the burden of debts. Stockmann will also continue using shopping malls as a tenant.
«We are happy to have found a stable and reliable partner for our real estate in Baltic States. This partners wants to continue developing and promises Stockmann will continue its operations,» says Stockmann CEO Jari Latvanen.
«We are happy to become Stockmann’s partner in Baltic States. Both pieces of real estate are located in exceptionally good locations,» says VKG investment manager Sten Pisang.
Stockmann store in Tallinn opened in 1996 and the one in Riga – in 2003, according to information from Stockmann website.
According to Stockmann representatives, the supermarket is fully prepared to continue operations in 2022. This year Stockmann focused mostly on growth plans and reinforcement of its position on the market. Though entirely expected, next year will not be easy for the retail trade sector. It is planned, however, that the supermarket’s trade volumes may return to their 2019 levels.
The company explains that next year it is planned to continue multi-channel shopping environment development in all categories to improve the online and direct shopping experience. Next year there are also plans to implement different hiring and loyalty promotion activities, «because employees form the foundation for a successful business», explains Stockmann Director Dace Goldmane.
Stockmann parent company invested a great deal into the development of the supermarket’s food segment. It is thanks to these investments it was possible to renovate to Delicacies segment, expand assortment and create Stockmann Cafe there.
The company stresses the coronavirus epidemic in Europe had a major impact on the supermarket’s parent company in Finland.
In spring 2021 Stockmann approved an eight-year restructuring programme based on continued operation of all Stockmann supermarkets, sale of supermarket buildings and rent of buildings.
In 2020 LLC Stockmann operated with turnover of EUR 26.459 million in Latvia, which is 34.9% less than a year prior. The company also suffered losses worth EUR 2.148 million as opposed to profits in 2019, according to information from Stockmann was registered in 1998.
There are a total of eight Stockmann supermarkets in Finland and Baltic States, as well as an online store.