C&A closes branches and cuts jobs – and wants to save itself that way

This time the Corona crisis is not to blame, the problems of the department store chain C&A are much older. Customers prefer to shop online instead of driving downtown. And the cheap competition from Aldi to Primark is pulling customers away. A number of managers wanted to save the ailing company. The most prominent name was the ex-Rewe boss Alain Caparros, who is said to have only caused personnel costs in the double-digit million range, reports the “”. Little changed in the company’s problems.

The company has been with Giny Boer for a year and is now taking action. According to information from “Manager Magazin”, the former Ikea manager plans to vigorously boost the neglected online business and to push ahead with centralization. Behind this is: downsizing. How many jobs will be lost is still unclear, according to the magazine, and depends on the negotiations that are now beginning. The information was confirmed to the magazine.

This is how C&A should be saved

C&A has two head offices, one in Brussels and one in Düsseldorf. That costs – and should now be streamlined. Insiders expect that the headquarters in Belgium could be eliminated and that the location in Düsseldorf would be strengthened.

The department store chain C&A operates 1,400 branches in 18 European countries with around 23,000 employees. In the 2019/2020 financial year, which ended at the end of February 2020 and therefore before Corona, the company’s sales fell by 2.26 billion euros to just 2.16 billion euros. In the core market of Germany, a deficit of 93.6 million euros had to be booked.

In February 2020 it was announced that C&A would close a number of branches. Affected are branches in Saxony-Anhalt, Baden-Württemberg, Rhineland-Palatinate, Lower Saxony, Bavaria, Berlin and Brandenburg. Around 100 branches (out of a total of 450 stores) are to be closed at 13 locations across Germany.

Zara, Pimkie, Esprit: other chains are also closing branches

C&A is not alone in closing its brick-and-mortar store. Competitors like H&M are also reducing their presence in the city centers and expanding various sales channels on the internet. The insolvent Pimkie brand is planning to withdraw, only 35 branches are to remain in Germany. The fashion chain Esprit also had to initiate protective shield proceedings in 2020. Almost every second of the 94 shops in Germany is closed. The corporate headquarters in Ratingen will also be closed.

And the fashion chain Zara is also planning a radical downsizing, according to the Spanish media. Although the company is investing around 900 million euros in restructuring the group in 2022, this sum will mainly go into online trading. it is planned to close around 1200 branches in 150 countries. It is not yet known which stores in Germany are affected.