The discount retailer KiK is facing a major restructuring of its branch network. Around 300 locations are to be closed across Europe, while 75 new openings are planned. Austria is also affected.

According to the company, the number of branches in this country is expected to decrease by about ten locations by the end of 2026.

Fewer branches also in Austria

Currently, KiK operates around 216 branches in Austria with about 1,500 employees. According to company information, negotiations are currently underway with landlords to assess the profitability of individual locations.

A specific list of the affected branches has not yet been published. According to reports, many employees still do not know if their location is affected.

Company speaks of "too dense expansion"

Managing Director and CFO Christian Kümmel explained that the branch network had grown too much in the past. Some stores are less than a kilometer apart.

The aim is to deliberately reduce the network and focus more on profitable locations. According to Kümmel, all remaining branches should operate profitably.

No layoffs planned

For the employees, the company is giving an all-clear for now. According to management, employees from affected branches should be redeployed to other locations as much as possible. Alternatively, other solutions will be sought.

Layoffs are not currently planned.

Competitive Pressure and Changed Buying Behavior

KiK is facing increasing competition. In addition to traditional retailers like Woolworth, NKD, and Action, online platforms like Shein and Temu are particularly exerting pressure.

At the same time, buying behavior has changed. According to Kümmel, customers have become more price-sensitive and are more frequently foregoing individual purchases, even though the discount sector is generally seeing an increase in demand.

Retail Sector Under Pressure Overall

This step is part of a larger trend. Brick-and-mortar retail is struggling with declining demand and increasing online competition across Europe.

In Germany, the number of stores could fall below 300,000 for the first time by 2026, according to industry forecasts. For comparison: in 2015, there were around 372,000.

KiK itself was founded in 1994 and is now active in 14 European countries. In 2024, the revenue was around 2.4 billion euros.

(Ed.)

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