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

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