Stockmann's basic corporate restructuring report showed that the downturn in the retail chain was significantly facilitated by the sale of Food Market Herkku food stores to the S Group in 2018. According to the basic study, the sale led to a decrease in customers elsewhere at Stockmann.
Read more: A study of Stockmann's downturn reveals: Selling the delicacy was a big mistake
Following the transaction, Herku's products have also been sold in other S Group stores. During the spring spring, sales were intensified by launching a separate Herku online store.
Last week, the fruit and vegetable department of Herku in Tapiola, Espoo, was expanded, and a new Sushi Daily concept appeared in the store. In addition, the store expanded the range of industrial foods.
Sampo Päällysaho, Director of SOK's grocery trade, who leads the S Group, says that customers have had a positive attitude towards Herkku products that have landed in other stores.
- In general, it can be said that Herku's goal is to be a food oasis where good food and clean ingredients are loved. The delicacy was inspired by the shopping halls, street food and the latest food trends in big cities, Päällysaho tells Taloussanomat.
In any case, according to Päällysaho, the success of the delicacy is affected by the challenges facing Stockmann. Despite the change of owner, the stores are located in Stockmann, which is suffering from a loss of customers.
SOK's President and CEO Taavi Heikkilä stated in the company's weekly interim report that the S Group has not made a profit with Herku so far.
- S-Food Market Herkku has undergone a complete overhaul and the journey to profitability is long. We are not yet profitable, but the customer feedback has been excellent. We are going in a better direction all the time, Heikkilä said.