Lindex Group Plc Class B · OMXHEX:LINDEX
Lindex Group Plc Class B — Stockmann — Investor Day (2012)
53 slides from Lindex Group Plc Class B's investor day presentation, 2012
Slide 1: Success factors of the department store concept
Success factors of the department store concept Stockmann Capital Markets Day 2012 Maisa Romanainen Director, Department Store Division
Slide 2: Stockmann Brand: More than I expected
Stockmann Brand More than I expected Wide and unique assortment of high quality Excellent and professional customer service Competitive price-quality ratio Inspiring shopping milieu Modern and international atmosphere ! 2
Slide 3: Stockmann - 150 years in department store business
Stockmann - 150 years in department store business 3
Slide 4: Facts – recent years
1.! Stockmann - 150 years in department store business 2.!Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international a
Slide 5: Facts – recent years: Revenue 2000-2011
Facts – recent years Revenue 2000-2011 EUR mill. Revenue (DSD w/ Hobby Hall) 1300.0 1200.0 1100.0 1000.0 900.0 800.0 700.0 600.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 5
Slide 6: Facts – recent years: EBIT 2000-2011
Facts – recent years EBIT 2000-2011 EUR mill. EBIT (DSD w/ Hobby Hall) 120.0 100.0 80.0 60.0 40.0 20.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 6
Slide 7: Facts – recent years: Investments 2000-2011
Facts – recent years Investments 2000-2011 EUR mill. Investments (DSD w/ Hobby Hall) 160 140 120 100 80 60 40 20 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 7
Slide 8: Facts – recent years: Total Gross Margin 2000-2011
Facts – recent years Total Gross Margin 2000-2011 Total GM % (DSD w/ Hobby Hall) 43.0 % 42.0 % 41.0 % 40.0 % 39.0 % 38.0 % 37.0 % 36.0 % 35.0 % 34.0 % 33.0 % 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 8
Slide 9: 16 department stores in 4 countries
FINLAND Helsinki 16 department stores in 4 countries Tampere Tapiola Turku FINLAND / ONLINE STORES Itäkeskus Stockmann.com Oulu Hobbyhall.fi Akateeminen.com Jumbo ESTONIA RUSSIA Tallinn Mega South, Moscow Mega North, Moscow Mega East, Moscow Metropolis, Moscow LATVIA Rostokino, Moscow Riga St Peters
Slide 10: Timeline 2004-2012
Timeline 2004-2012 2004 2005 2006 2007 2008 2009 2010 2011 2012 •! Mega South •! Bestseller •! Selling of Zara •! Mega East •! Smolenskaya •! Nike •! Hobby Hall •! BPO started •! BPO ready opened franchising franchising in open closed franchising integration •! TOP started •! Stockmann 150 •! Mega N
Slide 11: Revenue by Market
Revenue by Market 2011 Baltics 7% Russia Facts – recent years 23% Selected KPIs 2011 Revenue EUR 1 240 mill. Finland Operating profi fitt EUR 35.2 mill. 70% Personnel 9 700 Total sales area 238 500 m² 70 million served customers 11
Slide 12: Quarterly operating profit 2009-2012
Facts – recent years Quarterly operating profi fitt 2009-2012 EUR mill. Crazy Days October 40 35 30 25 20 !" " # 15 !" $" Crazy Days April 10 !" $$ 5 Sale Sale June-July !" $! 0 1-3 4-6 7-9 10-12 -5 -10 -15 12
Slide 13: Vision, concept and brand
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.!Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international a
Slide 14: Vision
Vision Best European department store chain – in selection, customer service, store milieu and profitability. 14
Slide 15: Business Concept
Business Concept Department store chain operating in Finland, Russia and Baltic including distance retailing in Finland. Stockmann department stores offer one stop shopping experience with excellent quality and competitive prices for a wide customer group. Product selection includes fashion, cosmeti
Slide 16: Among the largest European department store chains
Among the 10 largest European department store chains El Corte Ingles Selfridges 16 DeBijenkorf Breuninger Galeries Lafayette Kaufhof
Slide 17: Wide assortment - Revenue by merchandise area
Wide assortment - Revenue by merchandise area IADS Average Stockmann 0% 5% 11% 12% 11% 48% 12% 53% 13% 13% 22% Fashion Fashion Food and restaurants Food Leisure Leisure Home and House Home Cosmetics Books, stationery and paper 17
Slide 18: Different business models: Own bought vs concession
Different business models: Own bought vs concession !"# IADS Average %&'()*+,, 19% Concession 18% Consignment Own bought brands 63% $$"# 18
Slide 19: Selected KPIs – IADS vs Stockmann
Selected KPIs – IADS vs Stockmann 2010 (including food) Stockmann Finland IADS Average Gross margin 39.95% 38.81% Stock turn 4.55 4.09 Sales/M M² EUR 5 597 EUR 4 842 Sales/sales person EUR 249 978 EUR 227 842 Helsinki Flagship – among the 4 largest department stores in Europe – by sales and square m
Slide 20: Stockmann Brand: More than I expected
Stockmann Brand More than I expected Wide and unique assortment of high quality Excellent and professional customer service Competitive price-quality ratio Inspiring shopping milieu Modern and international atmosphere ! 20
Slide 21: Wide and unique assortment of high quality
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.!Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international a
Slide 22: Fashion, gourmet and design shopping guides
FASHION SHOPPING GUIDE GOURMET SHOPPING GUIDE DESIGN CrP NS DESIGNING Se GUIDE
Slide 23: Leading Fashion Retailer in Finland
Leading Fashion Retailer in Finland Revenue by merchandise area 5% Fashion More than 1.5 million SKUs 12% Food 48% – thousands of brands! 13% Leisure Home 22% Books, stationery and paper FASHION TRADE Finland 2011-2012 30.0 25.0 Percentage change 20.0 15.0 10.0 5.0 0.0 -5.0 JAN FEB MAR APR MAY JUN J
Slide 24: Leading Fashion Retailer in Finland: brands
4 . . . . . MAX«&Co. Leading Fashion Retailerin Finland DeG — va LONGCHAMP ré pagis ere BOSS. USS MARELLA 805s onance voo poss MICHAEL ROBERTAGANDOLF MICHAEL KORS RBRURBERRY LANCE Next GENERATION Panis —— BAS SEE BY CHLOE scutosssers JQQPI marimekko' ).EXINCTON@E Kartell © ESCADA SONIARYKIEL ven Del
Slide 25: Strong Stockmann Brand program
Wide and unique assortment of high quality Strong Stockmann Brand program •! 16 Fashion Brands, 3 Home Brands, 6 Food Brands – completes the wide selection of international brands! •! Designed and sourced by Stockmann – 15 designers •! 7 Stockmann buying offices located in 5 countries •! Gross Margi
Slide 26: 26
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Slide 27: Professional Buying Planning Organisation
Wide and unique assortment of high quality Professional Buying Planning Organisation •! Stockmann introduced in 2011 a completely new buying organisation model where central Buying Office is selecting the buying for the whole chain in all countries. •! The organisation will develop deep expertise in
Slide 28: Buying for Fashion – Annual plan 2012
Wide and unique assortment of high quality Buying for Fashion – Annual plan 2012 Spring-Summer 2013 starts to arrive from November 2012 Dec Jan Jan Nov Buying for Feb STYLE SIGHT Spring-Summer 2013 Buying for Oct TRENDS SS 2013-14 March starts from March 2012 Autumn-Winter 2013 Feb starts from Septe
Slide 29: Excellent and professional customer service
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international
Slide 30: Excellent and professional customer service: loyal customers
Excellent and professional customer service Real benefit fits for loyal customers •! Extensive and successful Loyal Customer Program covering all markets •! Over 2.8 million loyal customers •! From the beginning of 2012 already more than 200 000 new loyal customers! •! Monthly loyal customer communi
Slide 31: Constant development of customer service and services offering
Constant development of customer service and services offering Women’s Electronics Fashion Delicatess Service After Sales Fashion Gift Service Home Concept Marketing Services Packaging Concept Delivery •! Pilot 2012 •! 2012 •! 2013 •! 2012 •! Pilot 2012 •! 2012-2013 Tapiola Turku 31
Slide 32: Measured constantly with Mystery Shopping
Excellent and professional customer service Measured constantly with Mystery Shopping 32
Slide 33: Competitive price-quality ratio
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.!Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international a
Slide 34: Competitive price-quality ratio
Competitive price-quality ratio The total market Luxury Premium Stockmann Medium high operating range Medium Low Price-quality ratio of all items in each price category shall be competitive and reliable in all markets we operate. 34
Slide 35: Inspiring shopping milieu
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international
Slide 36: Inspiring shopping milieu
*Total commercial square metres Inspiring shopping milieu Helsinki 54 000 m² St Petersburg 17 500m² Tallinn 16 500 m² Oulu 14 000m² Tapiola 13 500 m² Tampere 13 500 m² Turku 13 500 m² Itäkeskus 12 500m² Riga 12 500m² Mega East 12 000m² Mega North 11 500m² Jumbo 11 000m² 36 Mega South 11 000m² Rostok
Slide 37: Constant upgrading of department stores
Inspiring shopping milieu Constant upgrading of department stores 2012 2013 2014 2016 Mega South upgrades Mega South upgrades Tampere enlargement Tapiola new premises Academic Bookstore Mega North upgrades Mega North upgrades Helsinki Itis new premises Academic Bookstore Helsinki Helsinki upgrading
Slide 38: Inspiring shopping milieu – Projects
Inspiring shopping milieu – Projects •! Tampere ! Detail planning approved and department store building works started in June ! Construction of Hämpin parkki ongoing since 2009 – target to open 30 Nov 2012 ! Investment estimate EUR 6.5 million ! Grand opening 11/2014 – Enlargement part of Delicates
Slide 39: Modern and international atmosphere
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international
Slide 40: Modern and international atmosphere
Modern and international athmosphere 40
Slide 41: Crazy Days net sales
Crazy Days net sales growth% 1986-2011 19 % 22 % 11 % 3 % -6 % 26 % 20% 28 % 8% 7% 22% 0% 13% 26% 10% 9% 4% 14% 23% 8% 25% 15% 18% 9% 203% 1997 Tallinn 2005 Spring Riga Spring 2012 the growth was 13%. 2006 Spring Russia 41
Slide 42: Focus for future
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international
Slide 43: Focus for future – Improving profitability in Russia
Focus for future – Improving profitability in Russia •! Department store business comparable first time after 2007. •! Very strong growth in newest units St Petersburg, Ekaterinburg, Moscow-Metropolis and Rostokino. All stores growing and Stockmann taking market share. •! Costs under strong control
Slide 44: Benchmark – John Lewis is an Omnichannel Retailer
Benchmark – John Lewis is an Omnichannel Retailer, not just a Multichannel Retailer To accomplish this they are currently using the following sales and marketing channels: !! Departments stores !! Online store !! Mobile store !! Mobile apps, also scanning applications for barcodes !! Online shopping
Slide 45: Benchmark – de Bijenkorf web store development
Benchmark – de Bijenkorf web store development 45
Slide 46: Focus for future – Multichannel business
Focus for future – Multichannel business 2009 2010 2011 2012 •!Preparing for HH •!Hobby Hall Integrated; •!Further development of •!Akateeminen.com integration strong emphasis on Stockmann.com re-launched •!Planning increasing web •!Integration of all •!Amount of SKUs on Stockmann.com commerce for H
Slide 47: Focus for future – Strong presence in e-commerce
Focus for future – Strong presence in e-commerce Stockmann.com Hobbyhall.fi 47 Stockmann.com Crazy Days Akateeminen.com
Slide 48: Focus for future: Omnichannel – digital technology in retail
Focus for future Omnichannel – digital technology in retail 48
Slide 49: Focus for future – Process efficiency with TOP
Focus for future – Process efficiency with TOP •! Modern IT tools designed for retail. •! Replacing existing ERP systems (Move, MASI, Eidos, Heavy, ASW) •! Integrated to new group finance system FAST. •! Enables modern, efficient chain wide processes in buying, logistics, store operations, distance
Slide 50: Focus for future – Tourists
Focus for future – Tourists 50
Slide 51: Right now
1.! Stockmann - 150 years in department store business 2.! Facts – recent years 3.! Vision, concept and brand 4.! Wide and unique assortment of high quality 5.! Excellent and professional customer service 6.! Competitive price-quality ratio 7.! Inspiring shopping milieu 8.! Modern and international
Slide 52: 2012 H1
2012 H1 •! Revenue up 7.8% to EUR 606.5 million ! Finland up 3.4% to EUR 409.5 million and international operations up 18.4% to EUR 197.0 million •! Gross margin continued positive development and was 41.0% (40.6%) ! Well planned buying resulted to an improved gross margin and healthy stock levels f
Slide 53: Outlook for the rest of 2012
Outlook for the rest of 2012 •! Market situation in Finland is challenging. Important fashion market has been in slight decline during summer season – Stockmann department stores have gained market share. •! During the important Autumn/Winter season 2012 focus will remain on achieving volume targets