As of: February 21, 2024, 5:41 a.m
By: Julia Hanigk
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The discounter Kodi is facing major challenges.
The company wants to overcome the crisis by closing branches and reorienting itself.
Bremen – The current economic situation and rising inflation are affecting retail.
Although many German discounters are celebrating success around the world, more and more companies are being forced to close their doors.
Now it concerns the German non-food discounter Kodi.
He has to close several branches while restructuring himself at the same time.
The “Kodi” chain has to close many branches.
© Michael Gstettenbauer/Imago
Discounter Kodi is closing several branches - customers in the Frankfurt area are particularly affected
Kodi, known for its wide range of everyday products, has to
close some of its stores, according to
Grocery Newspaper .
The Frankfurt area is particularly affected by the closures, where some branches were opened during the corona pandemic that are no longer profitable due to high rents.
Despite the closures, the company is not planning to completely withdraw from the Rhine-Main area, it is said.
The majority of the branches are currently located in North Rhine-Westphalia.
The “Kodi” chain has to close many branches.
© Michael Gstettenbauer/IMAGO
The family business offers a variety of products from the household, drugstore, decoration, DIY, electrical, textile and even some food sectors.
Personnel changes and reduction in the range at Kodi – discounter problems predicted as early as the end of 2023
To address financial challenges, the company has hired a sales manager, according to the report.
This role is now being taken on by Cathleen Clasen, formerly a manager at the competing discounter Tedi.
Christian Müller will also work as a consultant.
The changes at Kodi not only affect personnel changes internally, but also the product range.
The current number of fixed 3,500 items is to be reduced.
In addition, more imported items will be offered.
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A renovation of Kodi was announced as early as December 2023.
As the dpa reports, non-food discounters face numerous challenges.
These include inflation, minimum wage increases and rising personnel costs.
At the end of the year, Kodi said that branch closures were possible.
A major workforce reduction was ruled out at the time.
Rising energy costs and rental prices are increasing the pressure on discounters.
You pay so-called index rents, which are linked to sales development.
These have developed positively in recent years.
Frank Liebold, Country Manager Germany at the international credit insurer Atradius, explained: “Since companies cannot pass on the cost increases to their customers one-to-one, this is at the expense of profitability.”
Kodi also competes with international discounters
According to
Grocery Newspaper
, Kodi is currently in talks with the northern German special items retailer Jawoll.
However, both companies have not yet officially commented on possible plans.
A request from IPPEN.MEDIA to Kodi regarding the changes remained unanswered for the time
being (as of February 20th)
.
The margins of non-food discounters fell from six to ten to just two to four percent in December 2023.
In addition, there are falling visitor numbers in the city centers, where the majority of the shops are located.
“The discounters that don’t sell food are coming under increasing pressure.
And only the large market participants with the corresponding purchasing power will be able to survive in the market,” emphasized Liebold.
The situation is made even worse by the entry of more and more international competitors such as Action and Pepco onto the market.
(jh)
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