Support The Moscow Times!

Finland's Stockmann Sells Department Stores After 26 Years in Russia

Stockmann said its department store business in Russia recorded a 26 million euro operating loss last year on revenues of 240 million euros.

Finnish department store Stockmann, one of the first European retailers to open in the perestroika-era Soviet Union in 1989, said Friday that it had sold its seven Russian shops.

“Our Russian department store business has been unprofitable for the past several years and the significant devaluation of the ruble has deepened our losses,” the company said in a statement.

Russia's economy has deteriorated since 2013, and last year declining oil prices and sanctions over the Ukraine crisis pushed the country into a full-fledged slump. Retail spending has fallen sharply, and Stockmann announced plans to scale back its Russian business earlier this year.

Stockmann's seven stores — five in Moscow, one in St. Petersburg and one in the Urals city of Yekaterinburg — were bought for 5 million euros ($5.3 million) by Reviva Holdings Limited, which owns the Russian franchisee of the international department store chain Debenhams.

The stores will transition to become Debenhams outlets within two years, Stockmann's statement said.

Stockmann has weathered several crises during its 26 years in Russia. "We have seen the Soviet Union dissolve, a couple of coup attempts, tanks on the streets, and still our stores have remained open and business has been running," former CEO Hannu Penttila told news agency Reuters last year.

In 2008, the landlord of Stockmann's flagship store cut the electricity supply during a rental dispute, forcing it to close.

Stockmann said its department store business in Russia recorded a 26 million euro operating loss last year on revenues of 240 million euros. The company will retain its property business in Russia, which includes the Nevsky shopping center in St. Petersburg.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more