Kik, the discount textile retailer, is shutting down its loss-making outlets.
In an effort to remain competitive, discount retailer Kik is examining its store network to identify cost and efficiency potential. This move comes amid challenging market conditions, including intense competition, persistent inflation, consumer restraint, and temporarily disrupted supply chains.
Founded in 1994, Kik has grown to operate around 4,200 stores in 14 European countries, selling clothing, household items, home textiles, party and gift articles, toys, and decorative items, in addition to textiles. The company's goal is to develop its business in such a way that it remains competitive, even under challenging market conditions.
Kik's current workforce is comprised of approximately 32,000 employees, with over 19,000 based in Germany, where around 2,400 of the stores are located. The majority of these stores are profitable.
In a recent development, long-serving CEO Patrick Zahn unexpectedly left the company. Despite this change, Kik remains committed to its expansion plans and intends to continue opening new stores.
If store closures occur, Kik aims to provide affected employees with alternative employment opportunities. The locations, number, and timing of any potential store closures remain uncertain at this time.
Kik emphasizes that employees at affected locations should not worry about their jobs. The company's dense store network and strong presence on the ground offer opportunities for continued employment.
It's worth noting that the Tengelmann Group, which includes KiK Textilien und Non-Food GmbH, operates in all 14 countries where Kik has stores. Other textile companies are not specifically mentioned as part of Tengelmann, but the group also includes companies like the OBI home improvement store. Kik operates in multiple European countries and produces textiles in various countries including China, Bangladesh, Pakistan, Turkey, India, and Germany.
The optimization process for Kik's store network will span several years, with the company aiming to remain future-proof and competitive under challenging market conditions. Kik's commitment to its employees and its business remains steadfast, as it navigates the current market landscape.
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