Department stores, retail stores, specialized businesses and mail order sales in Russia, Estonia, Latvia and Lithuania… The Stockmann Group, which was established in 1862, has been expanding rapidly in Finland's neighbouring areas. And the pace will only accelerate in the next few years.

"Besides Moscow and St Petersburg, there are 11 other cities with more than one million inhabitants in Russia and 30 with more than half a million. The potential is enormous," says Jussi Kuutsa, Director of International Operations, listing the reasons for Stockmann's expansion.

"Our target is for a third of the Group's sales and profit to come from abroad by 2008."

Finnish and well-known

Kuutsa says that Stockmann is now the leading department store operator in Moscow, Tallinn and Riga. Two-thirds of Muscovites recognize the brand. In Tallinn awareness among the adult population is almost one hundred per cent and Riga between 80 and 90 per cent.

In addition to awareness of the department stores, Hobby Hall is the largest mail-order company in Estonia and Latvia, while Seppälä is the most extensive chain of fashion stores in Estonia. New openings are promised in almost all the areas of operation.

Department store and shopping centre in St Petersburg

Stockmann's new major challenges include the construction of a department store and shopping centre in the heart of St Petersburg. Besides a full-scale department store, the building will include other retail shops and a modern car park. "We are aiming for the department store and shopping centre to open their doors to the general public in 2008," Kuutsa says.

"St Petersburg is the fourth-biggest city in Europe, so the size of the market is, at the least, adequate. Purchasing power is also expected to improve during the next three years. People have been waiting for this building for a long time, so interest is great," Kuutsa says.

Flagship in Moscow

Stockmann opened the flagship of the Zara stores in Russia in Moscow in June 2005. "The conspicuousness of the site and the volume of customer flow mean that a world-class store is in existence." Kuutsa says.

The Zara chain of stores is growing quickly in Russia. In addition to the June opening, two stores were opened in August and one in November. The long-term objective is to open from three to five stores a year in each chain i.e. Zara, Bestseller and Seppälä.

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Two-thirds of Muscovites recognize the Stockmann brand.