KIK network to close 300 stores, ending aggressive expansion

The popular German textile discounter KIK is set to close around 300 stores across Europe, marking an end to its aggressive expansion strategy. The company announced that 150 of these closures will occur in Germany, its home market, as it grapples with declining profitability.

KIK's management acknowledged that its long-standing strategy of rapid expansion, aiming to open numerous new outlets and significantly increase customer numbers, has not delivered the desired outcomes. "We are optimizing our portfolio to focus on higher profitability. The strategy of 'opening five new stores and acquiring five times more customers' has not fully paid off," stated Christian Kümmel, CEO and CFO, as reported by Business Insider.

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We are optimizing our portfolio to focus on higher profitability. The strategy of 'opening five new stores and acquiring five times more customers' has not fully paid off.

The company now intends to concentrate on restructuring its operations and optimizing its store network to adapt to changing market conditions. While 150 stores will close in Germany, KIK plans to open 15 new ones in prime locations. This move aims to maintain a strong market position and ensure customer access to its products, despite the significant number of closures.

Across Europe, KIK plans to shut down about 300 stores, particularly those with lower foot traffic. Simultaneously, the company intends to open 75 new stores in customer-friendly locations such as city centers and shopping parks. KIK, established in 1994, currently operates in 14 European countries, including Poland, where it has approximately 450 stores.

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We will close around 150 outlets in Germany, but at the same time, we will open 15 new points. With over 2,200 stores in Germany, we will maintain a strong market position and ensure our customers have easy access to our offerings.