Tiimari Business Operations
The strategy is to actively develop the Tiimari retail concept and product selection to match the dynamic customer expectations and to use this process of growth for continued strengthening of Tiimari's currently strong market position. The objective is to increase both the local and the international turnover of Tiimari business with particular focus on the expansion of the international retail store network.
The company aims to increase the value of one-time purchases of Tiimari's customers by a constantly updated product selection and pricing method and through visually more appealing stores, improved product displays and enhanced in-store promotion and sales performance. As a part of the renewal of the pricing method, the Company aims to provide a more extensive range of alternative products from various price and quality groups. The Company uses active and well-targeted marketing to increase the number of customers of existing Tiimari stores. In addition, the Company aims to increase the size of the existing Tiimari stores, to find better business facilities and to set up new stores.
The objective of the Company is to make the Tiimari business operations more effective through better control of material flows, especially through new systems that enable optimised purchase activities, more efficient management of stock, faster and more accurate product deliveries to stores and more effective real-time monitoring of in-store sales. The Company expects that these measures will yield cost savings in purchases and logistics and also results in more effective management of stock. The Tiimari business results are anticipated to reflect the impact of these measures from 2007 onwards.
The Company aims also to enhance in-store sales performance by developing the processes, resources, working methods, and time management and increasing the flexibility of stores through the use of external human resources.
Most of the future growth in the Tiimari turnover is expected from the new Middle and Eastern European markets and possibly also from select Russian areas. Tiimari's move onto the Middle-European market began by opening two stores in Poland at the end of 2005. The aim is to set up new stores in Poland in the following years. The Tiimari business concept is considered suitable for rapidly evolving markets with an expanding middle class. The business concept can be replicated in new markets within the current organisational framework. The objective is to keep the Finnish Tiimari organisation very small and to manage most of the operations from the Company's Finnish headquarters.