M.Sc. (Econ.) Annu von Weymarn has been appointed as Puuilo’s Chief Financial Officer (CFO) and a member of the Management Team. The appointment takes effect immediately.
Von Weymarn has been with the company since 2019. She has served as the company’s interim CFO since 1 January 2026, and prior to that, as Head of Financial Controlling. Before joining Puuilo, von Weymarn worked as an IFRS specialist and an auditor.
The store will be located at the same intersection area as Tokmanni and St1, making it easily accessible for customers. The store to be opened is approximately 3,000 square meters in size, and construction work has already begun.
A month ago, I wrote that Puuilo’s expansion has 3 strategic directions (domestically): opening in current locations, opening in new and small locations, or seeking growth inside Ring III/I. This past week’s news are typical examples and, in my opinion, validate my logic:
Turku, where it’s 5 km to the nearest old store. The stores’ catchment areas overlap with 100% probability. It remains to be seen whether the Raisio store’s sales will drop by 15%, 20%, or 30%, and by what % the Raisio store needs to cut costs to maintain profitability? In summary - in the Turku region, Puuilo’s sales will grow by ~20% and costs by ~25%.
Jämsä, which has 12,000 inhabitants in the urban area. New euros for Puuilo, yes, but volume and profitability are lower than average. Yes, the rent is slightly cheaper. But 3/4 of a store’s expenses are not flexible in Puuilo’s primarily self-service-based concept, and therefore a store with lower-than-average volume lowers profitability. Personnel costs in a discount-retail-self-service concept are not as volume-flexible as people think. Most customers serve themselves, and for 90% of opening hours, the staff (= cashier) is not the “bottleneck” - and during those rush hours, the self-service checkout pays for itself. For 260 days a year, every Puuilo in Finland has minimum manning during morning and day shifts. Additionally, in small towns, some investments and costs are more expensive than in Helsinki, Turku, and Tampere: property maintenance, security, cash transport, marketing, logistics… Of course, as a Tokmanni owner, I would be even more worried, as Puuilo moving in next door in Jämsä will surely take 20-30% of their revenue. And due to Tokmanni’s market saturation, they have the highest probability of competitor-cannibalization.
Regarding competitors, @Rahastosijoittaja, I think you are right. It is hard to see the discount retail market growth giving everyone “new apples in equal shares.” Growth is taken from competitors.
Biltema has stated they will open 12 new department stores (in addition to renovating old ones)
Rusta has opened/is opening about 10 stores within a year
Jula has opened/is opening in Lappeenranta, Porvoo, Oulu, Konala, Tammisto, Pirkkala, Ylöjärvi, Joensuu…
In fact, one could reasonably argue that the easy years of discount retail in Finland 2020-2026 will soon be over and the real competition is only just beginning. Not forgetting that many “new” tough international discount retail competitors have just opened / are considering the Nordic countries…
I stand by my position and forecast: 2026 LfL growth will be increasingly challenging, 2027 will show the first signs in the results, and by 2028 at the latest, the P/E will find a fairer level around 17. Which, mind you, is not bad either.
Jämsä has long traditions in discount retail, as “Hills Have Eyes” style retail brands like Löytötex and Tarvikekeskus have survived through various cycles. Now that modern times have finally reached north of Kuhmoinen, why leave everything to Tokmanni. Rusta or Jula will hardly be opening at the same intersection anytime soon.
Here are Pauli’s pre-match comments as Puuilo reports its Q1 results on Thursday, June 11th
We expect the company to have continued on its growth track, driven by new stores and comparable growth remaining at a good level. However, we estimate that cost pressures and a stable gross margin percentage weighed on relative profitability compared to the comparison period. We expect Puuilo to reiterate its guidance for the current year, and alongside the figures, our attention will be particularly focused on the progress of the expansion into Sweden. Puuilo’s Q1 info session in Finnish can be followed on inderesTV starting at 11:30 AM on the results day.
