Tag Archives: S Group

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S Group H1 2017 results: retail sales increased by 2.4% and stood at EUR 5.5 billion

S Group H1 2017 results: retail sales increased by 2.4% and stood at EUR 5.5 billion

 

Helsinki, Finland, 2017-Aug-08 — /EPR Retail News/ — During the first half of the year, S Group’s result improved across the board. In particular, the travel industry and hospitality business as well as the consumer goods trade showed positive figures.

S Group’s operating result for January–June 2017 was EUR 128 million, compared to EUR 87 million in January–June 2016. SOK Corporation’s operating result remained at last year’s level and amounted to EUR 11 million. S Group’s retail sales excluding taxes increased by 2.4% and stood at EUR 5.5 billion.

The improved result is attributable to streamlining of S Group’s operations and increased sales in various business sectors. Other contributing factors are a wider product range, extended store hours and lower prices. In Finland, S Group’s grocery sales continued to outperform the general market development in the field.

The price of food has been cut by a total of more than EUR 150 million throughout the S Group. To date, the sales margins have been reduced for approximately 3,000 products.

“The improved result allows us to continue lowering prices in future. We will also improve the selection of products and services. A recent example from the consumer goods trade, is the Boy Meets Girl clothing line launched in the Prisma stores in August,” says Taavi Heikkilä, CEO of SOK.

Good service regardless of contact channel

S Group’s digital services have become increasingly popular. The online food trade increased by close to 50% from the corresponding period last year. The ABC mobile refuelling service is available at all ABC stations across the country, and approximately 200,000 co-op members already use S Group’s electronic receipt archive. New services are also underway.

“We want to provide unparalleled convenience and benefits from services. Our ambition is to provide customers with the same quality of service, regardless of the service channel,” says Heikkilä.

Customers have welcomed the extended store hours, including 45 S Group outlets that are open around the clock.

S Group’s investments remained at last year’s level and amounted to EUR 246 million. The main investment object was the new logistics centre for grocery products being built in Sipoo, which is already partly operational.

Co-op members were paid EUR 162 million in Bonus rewards, which was approximately EUR 10 million less than in 2016. Most of the decrease is attributable to a change in legislation prohibiting Bonus rewards for cigarettes and tobacco products. Co-op members received close to EUR 4 million in payment method discount for paying with S-Etukortti card.

S Group’s and SOK Corporation’s key figures for January–June 2017

S Group as a whole (cooperatives + SOK Corporation), January–June 2017:

  • Retail sales excluding taxes totalled EUR 5,464 million (EUR 5,336 million).
  • Retail sales increased by 2.4 percent.
  • Profit before appropriations and taxes was EUR 119 million (EUR 105 million).
  • Operating profit was EUR 128 million (EUR 87 million).
  • Investments totalled EUR 246 million (EUR 246 million).
  • At the end of June, there were 2,295,749 co-op members (2,246,459).
  • At the end of June, the number of personnel was 41,381 (41,337). This year, S Group is employing a total of around 13,000 summer employees and summer trainees through the Learn and Earn programme.
  • The total number of outlets at the end of June was 1,630 (1,647).

SOK Corporation (SOK + subsidiaries), January–June 2017:

  • Net sales (IFRS) were EUR 3,449 million (EUR 3,466 million).
  • Profit before taxes (IFRS) was EUR -4 million (EUR 11 million). The result was affected by non-recurring costs for closing the stores in Latvia and Lithuania.
  • Operating profit (FAS) was EUR 11 million (EUR 10 million).
  • Investments totalled EUR 25 million (EUR 50 million).
  • At the end of June, the number of personnel was 6,708 (6,604).

SOK Corporation’s full interim report will be available in the S-kanava online service on 17 August 2017.

Source: S Group

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S Group’s regional cooperatives to acquire Stockmann Delicatessen business operations in Finland

S Group’s regional cooperatives to acquire Stockmann Delicatessen business operations in Finland

 

Helsinki, Finland, 2017-Jul-03 — /EPR Retail News/ — Stockmann and S Group have signed an agreement on the transfer of the Stockmann Delicatessen business operations in Finland to S Group’s regional cooperatives. The purpose of the transaction is to develop the Delicatessen stores into European top-level flagship stores.

The transaction is pending approval from the Finnish Competition and Consumer Authority. The goal is to get the approval granted latest by the end of 2017. If approval is granted by that time, the transaction can be executed on 31 December 2017. If the transaction is implemented, all Stockmann Delicatessen employees in Finland will transfer to S Group as existing employees, and the Delicatessen stores will remain in all the Stockmann department stores.

“This is a historic moment for S Group and three of our cooperatives: HOK-Elanto, the Tampere Regional Cooperative and the Turku Regional Cooperative. Everyone in Finland is familiar with the strong Stockmann Delicatessen brand, and we hold it in extremely high regard as well,” says Arttu Laine, Executive Vice President at SOK.

“Stockmann Delicatessen is an institution and a key part of our department stores, now and in the future. We have found an excellent partner that has the willingness and resources to further develop Delicatessen in a competitive manner and to ensure that our customers will continue to have access to excellent service and selections,” says Lauri Veijalainen, CEO of Stockmann.

“A learning opportunity for S Group”

According to Laine, the integration of the Delicatessen stores into S Group would be in line with the Group’s current strategy, which was announced in 2015. S Group aims to improve its range of products and quality of service.

“Our goal is to develop the Delicatessen stores into S Group’s flagship stores. We are aiming for the top level in Europe, and the Delicatessen stores’ highly competent employees will play a crucial role in this respect. We have a great deal to learn from them,” says Laine.

“And the prices will decrease,” he adds.

In accordance with its strategy, Stockmann has been looking for partners that complement the product mix at its department stores and offer new services and experiences for its customers.

“Changes in procurement and logistics operations in particular have affected Stockmann Delicatessen’s competitiveness and accelerated our search for a partner. We are confident that our customers will continue to have access to the best grocery store services in Finland,” says Veijalainen.

What will Delicatessen be like in the future?

S Group is not allowed to participate in Delicatessen’s business operations or their development while approval from the Finnish Competition and Consumer Authority is pending. Furthermore, Stockmann cannot comment on future plans and wishes directed to S Group concerning Delicatessen.

“We want to understand Delicatessen’s customers and their hopes and thoughts. We invite them to discuss the Delicatessen of the future with us. First, we will listen very carefully, and we will engage in active dialogue once the transaction has been approved by the Competition and Consumer Authority,” says Laine.

In the planned transaction, the Delicatessen stores in the centre of Helsinki, Tapiola and in the Itis and Jumbo shopping centres will be transferred to HOK-Elanto. The Delicatessen store in Turku will be transferred to the Turku Regional Cooperative, and the store in Tampere to the Tampere Regional Cooperative.  The Stockmann Delicatessen chain operations will be transferred to SOK. The Stockmann Delicatessen kitchen, which prepares Stockmann Meals foods, will be transferred to Meira Nova, a subsidiary of SOK. The Delicatessen business operations in the Stockmann department stores in the Baltic countries will remain with Stockmann.

More information:

Arttu Laine
Executive Vice President
SOK
tel. +358 10 76 81011

Lauri Veijalainen
CEO, Stockmann
tel. +358 9 121 5062

Source: S Group

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S Group and Tesco announce product partnership

S Group and Tesco announce product partnership

 

Helsinki, Finland, 2017-May-31 — /EPR Retail News/ — The focus on food in Finland is currently geared towards local sourcing, vegetables and seasonal products, price-consciousness, and a desire to find enjoyment and luxury in everyday life. The product partnership between S Group and Tesco makes available some 200 products that will add a little extra flavour to Finnish meals.

– As part of our endeavour to match customer expectations, we are now addressing the increasing desire for pampering and luxury in everyday life, says Ilkka Alarotu, SVP, SOK Retail Business, about the cooperation involving Tesco products.

Starting today, Prisma and S-market outlets, and Alepa stores in the Helsinki region, will provide a broad selection of Tesco’s products including Finest and Free From ranges. In total, the selection consists of some 200 products.

– We are delighted to be working with S Group in Finland to provide a range of great quality Tesco products, and we’re looking forward to offering their customers the opportunity to try them for themselves, says Richard Stratton, Head of Wholesale & Export, Tesco PLC.

More “Free From”

Persons following a special diet will find many interesting food choices in Tesco’s Free From range.

– The introduction of Free From expands especially the selection of gluten-free products in S Group’s grocery stores. And best of all: these products are anything but free from flavour, says Katja Tapio, VP at SOK Retail Business.

Finest dining

The new product range is all about taste, in eye-catching and elegant packaging.

– Tesco’s Finest range is a triumph of contemporary design and elegance. The products will make you think of enjoying breakfast or five o’clock tea with the royals, says Katja Tapio.

S Group is a cooperative group of companies composed of 20 regional cooperatives, SOK Corporation and their subsidiaries. The co-op members own the cooperatives, which in turn own SOK Corporation. S Group’s key business areas consist of supermarket trade, department stores and speciality stores, service station store and fuel sales, the travel industry and hospitality business, hardware trade and financial services.  In 2016, S Group’s retail sales amounted to approximately EUR 11 billion and it has a total of more than 37,000 employees.

Tesco is a leading retailer with 460,000 colleagues serving millions of customers every week in stores across the UK, Republic of Ireland, Central Europe and Asia.S Group is Tesco’s latest retail partner, joining other retailers across Asia, the Americas, the Middle East and Europe in offering a range of Tesco products to their customers.

Source: S Group

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Finland: S Group plans to close Marks & Spencer stores in Hämeenlinna and Lappeenranta

Finland: S Group plans to close Marks & Spencer stores in Hämeenlinna and Lappeenranta
Finland: S Group plans to close Marks & Spencer stores in Hämeenlinna and Lappeenranta

 

Finland, 2016-Nov-21 — /EPR Retail News/ — S Group is planning to streamline its franchise operations of the Marks & Spencer chain in Finland. The plans may lead to the closing of the Marks & Spencer stores in Hämeenlinna and Lappeenranta and the reduction of space at other stores in Finland.

S Group opened the first franchise Finnish store of the British Marks & Spencer chain two years ago in Helsinki, and currently there are six Marks & Spencer stores in Finland in total. S Group’s Marks & Spencer stores operate on a franchising agreement in Finland, and S Group’s regional co-operatives are mainly responsible for the operations.

“Our objective is that S Group’s department store and speciality store business is competitive, attractive to customers and profitable. Customers have been satisfied with the selections of Marks & Spencer, as well as the price-quality ratio of the products, but we need to make our operating model more efficient to also reach our financial objectives,” says Arttu Laine, executive vice president, SOK.

“The clothing market has been slow in Finland for a long time, and as a result our franchise business with Marks & Spencer has not developed quite according to our targets, and we need measures to increase synergy, among other things, at S Group to improve the profitability of the chain”, Laine continues.

James Harvey, Head of International Franchise at Marks & Spencer, said: “We are committed to our franchise business in Finland and continuing to offer our customers quality, stylish clothing. The proposals our franchise partner S Group has set out today will enable them to focus on improving customers’ shopping experience and driving profitability at our Finnish stores.”

S Group’s objective is, among other things, to make the use of space at Marks & Spencer stores more efficient. The plans may lead to the closing of the Marks & Spencer stores in Hämeenlinna and Lappeenranta during 2017.

Because of the plans to improve the profitability of the Marks & Spencer chain, statutory labour negotiations concerning all staff members will be started at SOK’s Marks & Spencer chain management and the Marks & Spencer stores of the Hämeenmaa Cooperative Society in Hämeenlinna, the Southern Karelia Cooperative Society in Lappeenranta, the Keskimaa Cooperative Society in Jyväskylä and the Cooperative Society Varuboden-Osla Handelslag in Porvoo.

At the most, the plans may lead to the termination of the employment of approximately 15 people at S Group’s Marks & Spencer chain management and Marks & Spencer stores. Every effort will be made to minimize the impact on staff and, for instance, employees of the cooperatives in which labour negotiations take place will be offered jobs at other outlets of each cooperative where possible.

The statutory labour negotiations do not concern the staff of S Group’s Marks & Spencer stores in Helsinki and Tampere or other S Group outlets. The objective is that the plans related to streamlining the Marks & Spencer chain are fully completed by the spring 2017.

Marks & Spencer

S Group

  • S Group is a renowned Finnish cooperative group of companies operating in the retail sector. Its key business areas are supermarket trade, department stores and speciality stores, hardware trade, service station store and fuel sales, as well as the travel industry and hospitality business.
  • S Group consists of SOK Corporation, 20 independent regional cooperatives and eight local cooperatives.
  • S Group has collaborated with Marks & Spencer since 2014, and it currently has six M&S stores in Finland.

Contact:

Arttu Laine
Executive Vice President
SOK
tel. +358 10 76 81011

Marks & Spencer
Corporate PR
corporate.press@marks-and-spencer.com
tel. +44 20 8718 1919

Source: S Group

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NACS recognizes S-Group with 2016 NACS Insight European Technology Implementation Award at the NACS Insight Convenience Summit – Europe

LONDON, 2016-Jun-13 — /EPR Retail News/ — S-Group has won the 2016 NACS Insight European Technology Implementation Award, sponsored by Verifone, a world leader in payments and commerce solutions. The award was presented during the NACS Insight Convenience Summit – Europe in London on June 9 at this year’s International Convenience Retailer Awards gala.

The award recognizes S-Group for the implementation of a new mobile fueling feature to its award-winning S-Mobile iPhone app, an innovative service that combines retail, banking and fueling to transform the entire retail customer experience. S-Group is a renowned Finnish cooperative group of companies operating in the retail sector. The mobile fueling app was launched by two of S-Group’s subsidiaries: S-Bank, which provides all co-op members with comprehensive banking services and ABC, a service station chain and fuel trade company. The app is available for iPhone, Android and Windows phones.

S-Mobile automatically recognizes the customer’s location, and fueling is initiated by simply choosing the correct fuel pump from the app. After fueling, the payment is handled automatically through the S-Bank Visa card, linking the payment with customer loyalty benefits. S Group’s mobile app has more than 600,000 downloads in Finland, a country with a population of 5.4 million.

“We want to create simple services with a superb digital banking and retail experience for our 2.8 million customers. With our service, customers no longer need to use traditional card readers and PIN codes at the petrol station. In the Finnish winter, where temperatures can dip below -30 degrees Celsius, traditional pump activation is a hassle. We believe that the app can overcome such inconveniences and ensure a seamless customer experience with automatic payments for the user. This new service is only one way in which we aim to make everyday life easier for our customers,” said Pekka Ylihurula, managing director of S-Bank.

“S-Group shares Verifone’s commitment to helping gas stations and convenience stores enhance the consumer experience, and we are honored to recognize S-Group for its forward-thinking and innovative S-Mobile app solution, as well as the company’s leadership to inspire other businesses to identify and implement technology initiatives of their own,” said Brad McGuinness, Global Head of Petroleum Systems for Verifone.

“Consumers are looking for more speed in everything they do and in order to capitalize on the opportunity this creates for our industry, convenience retailers need to be at the forefront of technology implementation,” said Dan Munford, managing director of Insight. “S-Group’s innovation makes customer’s lives easier and the feature that allows tracking of petrol consumption is compelling.”

NACS President and CEO Henry Armour congratulated S-Group for its commitment to advancing technology best practices. “S-Group’s mobile fueling and payments app is an innovative technology platform retailers around the world can learn from, particularly markets where data security and new payment options are top of mind.”

Now in its third year, the NACS Insight Convenience Summit – Europe (conveniencesummit.com) brings together convenience and fuel retailing industry professionals from around the world to discuss new ideas and gain new commercial connections. This year’s event kicked off in Stockholm on June 5 and ends on June 11 in Dublin.

Note to editors: Images available upon request.

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Founded in 1961 as the National Association of Convenience Stores, NACS (nacsonline.com) is the international association for convenience and fuel retailing. The U.S. convenience store industry, with more than 154,000 stores across the country, conducts 160 million transactions a day, sells 80% of the fuel purchased in the country and had total sales of $575 billion in 2015. NACS has 2,100 retail and 1,700 supplier member companies, which do business in nearly 50 countries.

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SOK to join S Group’s hardware functions to SOK Food and Consumer Goods

HELSINKI, 2015-11-24 — /EPR Retail News/ — SOK will join S Group’s hardware functions to SOK Food and Consumer Goods. The statutory labour negotiations related to the upgrade have been concluded, resulting in fewer than 30 people’s contracts being terminated.

The goal of S Group is to more effectively utilise the strengths of the food and consumer goods trade in the hardware trade. SOK will discontinue SOK Hardware functions and join S Group’s hardware functions to SOK Food and Consumer Goods. This will bring more synergy benefits and cost-efficiency to S Group’s hardware functions.

“We are seeking new growth opportunities and making our operations more effective. For example, volumes will grow when we connect SOK Hardware’s procurement to that of SOK Food and Consumer Goods. This is of significance in the increasingly international operating environment of the hardware trade. Unfortunately, the steps taken will also have an impact on SOK’s staff”, says Arttu Laine, Executive Vice President of SOK, S-Group Chain Operations, Procurement and Logistics.

In hardware sales, S Group will also more extensively focus on a multichannel approach that covers online and physical stores, in hardware’s chains (Kodin Terra and S-Rauta) as well as in the chains of food and consumer goods’ (Prisma and S-market).

One reason behind the change is that a transition is underway in traditional hardware store sales. In addition to hardware store chains and specialised stores, interior design, yard and gardening, and construction products are being sold to an increasing extent at supermarkets, in discount stores and online. Many Prisma stores already provide building and renovation products.

The negotiations covered all staff members of SOK Hardware, and some staff members of SOK Food and Consumer Goods.  The original estimate was that a maximum of 30 people would be let go.

The negotiations did not cover the other operations of SOK and SOK Corporation, such as S-Verkkopalvelut Ltd or Inex Partners Ltd.

The negotiations will not affect the employees of the regional cooperatives, S Group hardware outlets, or the services provided for co-op members.

SOK Media Service 

Enquiries tel. 010 76 86169 (EUR 0.0835 per call + EUR 0.1209 per minute) or viestinta@sok.fi

SOURCE: SOK

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SOK to join S Group's hardware functions to SOK Food and Consumer Goods

SOK to join S Group’s hardware functions to SOK Food and Consumer Goods

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S Group’s grocery trade volumes increased due to lower price policy introduced at the beginning of the year

HELSINKI, FINLAND, 2015-10-23 — /EPR Retail News/ — Finland’s poor financial situation and the general development of the trade sector caused a decline in S Group’s sales for January–September in comparison to the previous year. Sales decreased by 3.9 per cent, totalling €8,009 million.

The sales of S Group’s largest sector – grocery trade – stood at €4,857 million in Finland in January–September; a decline of only 0.7 per cent compared to the previous year. The lower price policy has resulted in a positive flow in market trade, while increasing the proportion of domestic food sold by S Group.

“The lower price policy, which was introduced at the beginning of the year, has considerably increased the grocery trade’s customer and sales volumes. We have done really well in the grocery trade because euro-denominated sales have also improved better than the entire industry has”, says Taavi Heikkilä, CEO of SOK.

The sales volumes of the hospitality business and automotive trade and accessories have increased by about 1 per cent in comparison to the previous year. Hotel and restaurant sales stood at €594 million, and sales in the automotive trade were €234 million. Automotive sales are carried out by some S Group co-op stores.

In the ABC sector, restaurant sales have been at a good level, and sales increased by 2.0 per cent compared to the previous year. The entire sector’s sales in January–September stood at €1,229 million: a 10.0 per cent decline in comparison to the previous year. The decline is explained by the fact that fuel prices were lower than in the previous year.

The consumer goods trade decreased, which was in line with the general progress in the sector. Overall, S Group’s consumer goods sales decreased by 7.3 per cent to €888 million.

More information:

Taavi Heikkilä, CEO, SOK, tel.: 010 7680200
Arttu Laine, Executive Vice President, SOK, tel. 010 7681011
Jari Annala, Senior Vice President, CFO, SOK Finance and Administration, tel. 010 7682040

SOURCE: SOK

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S Group's grocery trade volumes increased due to lower price policy introduced at the beginning of the year

S Group’s grocery trade volumes increased due to lower price policy introduced at the beginning of the year

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S Group invites ideas on renewing the Kera district in Espoo, Finland

HELSINKI, FINLAND, 2015-10-8 — /EPR Retail News/ — S Group is inviting ideas people, start-ups, students and researchers to brainstorm and create visions for renewing the Kera district in Espoo. S Group’s logistics centre will be relocated from Kera to another location in the next few years, which means that the industrial area can be reclassified as a residential area.

The vision is to make Kera a “20-minute district”. The goal is that Kera residents would be able to reach anywhere in Espoo, as well as the centre of Helsinki, in 20 minutes without having to use their own cars.

Brainstorming based on circular economy

A particular challenge in the contest is to redefine the old industrial area as a lively, inspiring residential area. The goal is to find sustainable, practical, innovative and smart solutions that will make Kera a pleasant, lively district. The purpose is to brainstorm ideas for the district’s different developmental stages and specify how to make the changes in an interesting way, as well as the kinds of services that could be implemented in the district, starting from the initial scenario all the way to executing the vision for the Kera district.

According to the principles of the circular economy, it is possible to reuse and recycle the S Group logistics centre’s existing structures, the district’s industrial buildings and related demolition and waste material in future urban development.

The only Finnish-based location in the challenge

The Kera district is the only project in Finland selected by Nordic Innovation (working under the auspices of the Nordic Council of Ministers) in the Nordic Built Cities Challenge.  The competition includes five other Nordic projects. Nordic Built Cities is one of the Council’s flagship projects.

The challenge is about sustainability, being smart, lively, engaging in Nordic cooperation, and having export potential. The best four ideas related to the Kera district will each receive around €30,000 in further development funding. The best four teams will also get to compete at the Nordic level in the Nordic Built Cities Challenge Awards, with other top teams.

The first stage of the challenge is from 7 October to 17 December 2015.

Read more and join in: www.nordicbuiltcities.org/thechallenge

More information:

Raija Rinta-Erkkilä, Project Manager, SOK Real Estate, +358 10 76 82 210

SOURCE: SOK

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S Group invites ideas on renewing the Kera district in Espoo, Finland

S Group invites ideas on renewing the Kera district in Espoo, Finland

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S Group: SOK begin statutory labour negotiations to enhance the efficiency of its Department Store and Speciality Store Chain Management organisation

HELSINKI, 2015-9-8 — /EPR Retail News/ — SOK is beginning statutory labour negotiations to enhance the efficiency of its Department Store and Speciality Store Chain Management organisation. The negotiations may lead to a maximum of 25 employees being made redundant.

In accordance with the competition strategy determined for S Group’s consumer goods trade in 2014, department store and speciality store trade within S Group is focusing on fashion, beauty and interior design.

“S Group is strongly committed to the department store and speciality store trade, now and in the future. The goal is for our department store and speciality store trade to be profitable, competitive and attractive to customers,” says Arttu Laine, Executive Vice President at SOK.

Over the past two years, S Group and SOK have worked to develop their department store and speciality store trade in line with their competition strategy, and they have resumed an upward trend despite the difficult overall economic situation.

“However, we need to implement further measures at SOK to achieve our targets. We need to improve our cost-efficiency and synergies between operations, for example. We are seeking to minimise the effects of these measures on our employees. Unfortunately, such effects cannot be entirely avoided,” says Laine.

The statutory labour negotiations concern all employees in SOK Department Store and Speciality Store Chain Management.  The negotiations do not concern other operations of SOK or SOK Corporation, such as SOK Marks & Spencer Chain Management or SOK Food and Consumer Goods Chain Management.

The statutory labour negotiations will not affect the employees of the regional cooperatives or the services provided for co-op members.

The goal is to finalise the plans for enhancing the efficiency of the SOK Department Store and Speciality Store Chain Management organisation by the beginning of November.

Additional information: Executive Vice President Arttu Laine, S-Group Chain Management, Procurement and Logistics, tel. +358 10 76 81011.

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S Group: SOK begin statutory labour negotiations to enhance the efficiency of its Department Store and Speciality Store Chain Management organisation

S Group: SOK begin statutory labour negotiations to enhance the efficiency of its Department Store and Speciality Store Chain Management organisation