Mass closure of a popular store: About 300 branches will be closed

A major retail chain has announced plans to close approximately 300 stores across Europe by the end of 2026. The company, known as Kik, has acknowledged that its rapid expansion led to an overextended network of stores, many of which were unprofitable. This decision comes after internal assessments revealed that the strategy of opening new locations too quickly did not yield the expected results. The closures have already begun in several European countries, including Slovenia, where two stores in Maribor and Velenje have been shut down. In Germany, the largest market for Kik, around 150 stores are expected to be closed, according to reports from local media. The company's strategy shift aims to streamline operations and improve competitiveness through a more optimized store layout. Kik had initially planned to close 50 stores, but this number was expanded to nearly 300 across the continent. At the same time, the company intends to open 75 new stores in 2025. This approach reflects a broader effort to balance growth with profitability, ensuring that each location contributes positively to the overall business model. In March, Christian Kümmel, financial director of Kik, explained that the company had expanded too rapidly in the past. Some stores were located within less than one kilometre of each other, leading to inefficiencies. He noted that the assumption that five new stores would bring five times as many customers did not hold true. “We expanded too densely,” he stated. “That will change.” As part of this restructuring, the total number of Kik stores is expected to drop below 4,000 globally. Currently, the company operates in 14 European countries, maintaining around 4,200 stores and employing approximately 32,000 people. In Germany alone, there are more than 2,400 Kik stores, with over 19,000 employees. In Slovenia, Kik has been present since 2007. As of last year, the company operated 59 stores, marking the lowest number since 2021. It employed 289 workers, according to the latest annual report. Four stores were closed in Slovenia last year, while one new store opened. Recent closures include locations in Maribor and Velenje, as reported by local media. Despite these challenges, Kik generated revenue of over 30.5 million euros in Slovenia last year. The net profit amounted to just over 13,200 euros, indicating that while the company remained profitable, it faced pressures related to operational efficiency. This strategic overhaul represents a significant step for Kik as it seeks to adapt to changing consumer habits and economic conditions. The company’s focus on optimizing its store network suggests a long-term vision aimed at sustainability and resilience in the competitive retail sector. The impact of these changes will likely be felt across both the company’s workforce and the communities where its stores operate.