Finland Times

Stockmann's revenue declined by 9.1 percent, while its operating profit was down by 13.9 percent between January and September in 2014, compared to the same period last year.

The company said the previous cost-saving measures for its fashion chain Seppala suffered a setback, as it lost some 25 million euros (about 32 million U.S. dollars) in 2014.

To improve its profitability, Stockmann planned to let go nearly half of Seppala's 800-person Finnish staff.

Currently, Seppala has 130 stores in Finland, 36 in the Baltic countries and 16 in Russia.

Stockmann declared in the beginning of this month that all of its Seppala stores in Russia would close by the end of 2015.

In addition, Seppala's operations in Finland and Estonia will be significantly downsized, and the retail chain also plans to withdraw from the other Baltic countries next year, Stockmann has revealed in its latest interim report.

Stockmann also announced the appointment of its new CEO on Wednesday. Per Thelin, a Swedish consultant, will replace the former CEO who retired in August this year.

Founded in 1862, Stockmann is a Finnish-listed company engaged in retail trade. Due to the stagnation of the Finnish economy and the recession in Russia, Stockmann's profits have declined in recent years. (1 euro = 1.27 U.S. dollars) .