What: Stockmann's Itis location set to close by August 2025 after 33 years of operation, as Lindex Group continues strategic assessment of department store division.

Why it is important: This closure reflects the broader challenges facing department stores in balancing location profitability with rental costs while maintaining market presence.

Lindex Group has announced plans to close its Stockmann department store in Helsinki's Itis shopping centre when the rental agreement expires on August 1, 2025. The decision comes after unsuccessful negotiations with the landlord to find a sustainable solution that would meet both customer expectations and profitability targets.

The closure will affect approximately 35 employees, with the company initiating change negotiations and exploring employment opportunities at other Stockmann locations. Despite the closure, the company emphasizes continued service at its other locations, including stores in Helsinki city centre, Jumbo, Tapiola, Turku, Tampere, Riga, Tallinn, and through Stockmann.com. The company states that the closure, if materialized, would not have a material impact on the profitability or financial position of either the Stockmann division or Lindex Group.

IADS Notes: The planned closure of Stockmann's Itis department store represents a significant step in the company's broader strategic transformation. This decision aligns with Lindex Group's extended strategic review of its department store business announced in December 2024, which focuses on resolving property-related challenges and financial obligations. The timing is particularly notable given the contrasting divisional performances reported in April 2024, where Stockmann department stores showed declining revenue while Lindex demonstrated growth.

The closure decision also comes amid industry speculation about potential ownership changes, with experts identifying Nordic Retail Partners as a likely acquirer in September 2024, suggesting this store network optimization is part of a larger strategic repositioning of the business.

Lindex Group plans to close Stockmann Itis department store in Helsinki