The Germany-based textile discount chain Kik has announced that, in order to strengthen its competitiveness, it may close unprofitable stores in the future. At the same time, the company promises that affected employees will be offered other job opportunities within its network – reported by the Frankfurter Allgemeine Zeitung, as cited by Pénzcentrum.
Challenging market environment
Kik currently operates around 4,200 stores in 14 European countries, of which 2,400 are located in Germany. The company employs more than 32,000 people, including 19,000 in Germany.
According to the company’s statement, the retail environment has become increasingly difficult in recent years: inflation remains high, consumer demand is weaker, competition is intensifying, and supply chains are occasionally disrupted.
Profitable stores, new openings
Kik emphasized that the majority of its stores continue to operate profitably, and in the future it not only plans rationalization measures but also intends to expand. The company’s plans include opening new stores, which could further strengthen its market position.
The announcement shows that Kik aims to selectively close unprofitable units while simultaneously taking advantage of new markets and growth opportunities.
