Lindex initiates cost cutting programme
Swedish fashion retailer Lindex is to implement a cost cutting programme as it looks to future-proof its business in light of the coronavirus crisis.
In a statement, the company said it had started the year well with strong sales growth and increased profitability, but has since felt the impact of the pandemic.
Lindex chief executive Susanne Ehnbåge said: “During spring and summer, we have really shown that we can challenge ourselves. We have succeeded in adjusting quickly to meet the customer’s expectations and we have both learned and achieved a lot in a short time. To secure our continued business and a resilient Lindex, also for future challenges, we are now implementing additional actions and reducing our costs.”
The company saw its second quarter sales decrease by 18% in local currencies, although sales in June were on par with the same month in the previous year. Despite the turnaround towards the end of the quarter, sales are not in line with previous expectations so the business is now initiating a cost saving programme with a view to saving 150 MSEK.
Ehnbåge explained: “We need to adapt our organisation to the new current situation where we are more agile, flexible and innovative. For Lindex’s head office we are reviewing a new, adapted organisation which also mean employee reductions with approximately 5%.
“For our sales countries we are working on how we can create more efficient workflows to facilitate the daily work and we are reviewing hours in our stores with the customer in focus. Another important part in our cost reduction programme is our ongoing work on reviewing our rental agreements and optimising our store portfolio. At the same time, strong investments in the digital development, our sales channels, sustainability and innovation continue.”
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