Finnish fashion and department store retailer Stockmann is to open a new distribution centre to support its online growth and expansion into the Baltic region.

The facility in Jussla, which will serve Stockmann's nine Finnish and Baltic department stores and its growing online business, is expected to be completed in 2016.

The highly-automated distribution centre will eventually replace current warehouse operations in Pitäjänmäki, Tammisto, Vantaanrasti, Pakkala, Viinikkala and Riga, and is expected to save the company about EUR6.5m (US$8.8m) a year.

It will also result in up to 250 job losses, many of which are likely to occur through retirements and through employee turnover that is typical for the sector. Potential redundancies will not take place before the second half of 2015.