Anttila's profitability programme progresses

KESKO CORPORATION STOCK EXCHANGE RELEASE 31.03.2014 AT 09.00 1(1)

Anttila's profitability programme progresses

In the home and speciality goods trade, the increase of online shopping, the decrease of consumer demand and the tightening competition have considerably weakened Anttila's profitability. As a result of the employee co-operation negotiations to improve profitability, the decision was made today to close eight Anttila department stores operating in rented premises. The department stores to be closed are Anttila Espoonlahti, Espoo Sello, Hämeenlinna Tiiriö Koti store, Kerava, Kouvola centre, Turku Kivikukkaro, Turku Skanssi and Vantaa Myyrmanni. The department stores to be closed have a total of some 210 employees. In addition, 25 full time employees will be reduced in other Anttila department stores. Some of the reduction will be realised as lay-offs, some as shifting to part-time work and some as temporary lay-offs.

In order to improve the profitability of Anttila Oy, employee co-operation negotiations will be started in the Kodin1 chain. In the Kodin1 department store chain, four Kodin1 department stores are planned to be closed within the next two years: Helsinki Ruoholahti, Kuopio Kolmisoppi, Tampere Lielahti and Lappeenranta. Employee co-operation negotiations will also be started in the centralised operations of Anttila Oy and K-citymarket Oy. The negotiations will concern a total of 1,350 persons, and the estimated need for reduction is at most 220 full time employees.

As communicated earlier, the selections of NetAnttila will be expanded considerably, and the Anttila and Kodin1 department stores as well as the K-citymarket home and speciality goods departments will be renewed.

The measures to improve Anttila's profitability are estimated to cause non-recurring expenses amounting to approximately €32 million during the first quarter.

In addition to the profitability-driven renewal of Anttila's business, also the option of selling Anttila Oy is being investigated.

Kesko announced the plans to improve Anttila's profitability in the financial statements release for 2013 (stock exchange release on 4 February 2014).

Further information:
President Antti Ollila, Anttila Oy, tel. +358 10 53 50200
Senior Vice President Minna Kurunsaari, home and speciality goods trade, Kesko Corporation, tel. +358 10 53 22523

Kesko Corporation

Merja Haverinen
Vice President, Group Communications

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