STOCKHOLM, Sweden, April 23, 2003 (PRIMEZONE) -- Lindex is planning to extend the scope of initiated efficiency measures. Lindex anticipates that it will make cost savings amounting to an estimated SEK 90-110M per annum and that these will make a full impact during the 2003/2004 financial year. Structural costs of SEK 5-10M will be charged to the current quarter.
Implemented measures include cost savings both in the short term and in the long term. These will be achieved through changed methods of working and by outsourcing specific functions such as the printing operation.
Lindex is making 57 staff redundant. The redundancies mainly affect the head office in Alingsas and Twilfit.
Cost savings will also be achieved through more efficient procurement of premises, services and consumable supplies.
The implementation of Lindex's new IT platform started during the period September-November 2002. The new systems will result in a more consistent flow of products to the stores which will reduce the requirement for in-store storage space. During the next two-year period, Lindex expects to reduce or redistribute approximately 15,000 square metres of the total area. This will enable better planning of the working hours which will increase resource utilisation in the stores.
As previously announced, Lindex continues to intensify marketing activities which promote sales. The effects, so far, are promising. Initiatives relating to product range development, primarily within Ladies' Wear, continue according to plan.
For further information please contact:
Jorgen Johansson, President and CEO Phone: +46 (0) 322-777 02
Mobile: +46 (0) 705-94 21 22
Peter Andersson, Chief financial officer Phone: +46 (0) 322-778 50
Mobile: +46 (0) 705-84 44 37
Ulrika Danielson, Communications manager Mobile: +46 (0) 709-50 16 13
/manager of Human Resource Phone: +46 (0) 322-744 00
The Lindex Group comprises two retail chains: Lindex with 315 stores in the Nordic market and 33 stores in Germany, and Twilfit with 58 stores in Sweden of which 10 are operated as franchise stores. The Group's business areas are Ladies' Wear, Lingerie and Children's Clothing.
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http://www.waymaker.net/bitonline/2003/04/23/20030423BIT01130/wkr0001.doc
http://www.waymaker.net/bitonline/2003/04/23/20030423BIT01130/wkr0002.pdf