Gigasport closes branches: 100 jobs fall victim to cost reduction

Gigasport closes branches: 100 jobs fall victim to cost reduction

A worrying trend is emerging in the Austrian sports trade. One of the leading retailers, Gigasport, is forced to take measures that have far -reaching consequences for his employees and branches. The decision to close four branches and reduce a total of around 100 jobs is an explanation for the tense situation in the company.

locations and personnel reduction

The affected branch network includes locations in Innsbruck, Leoben, Wolfsberg and Spittal an der Drau. These drastic steps are a result of the declining sales in the entire sports retail trade, in which Gigasport operates. In 2023, the industry recorded a drop in sales of 4.4 percent. Gigasport itself was faced with a loss of over 100 million euros. The number of employees had to be reduced by 1.7 percent to counter the financial challenges.

The owner of Gigasport, the traditional Graz department store group Kastner & Öhler, has already closed international branches in Slovenia, Slovakia and the Czech Republic. In addition, four further closures have been held in Austria since 2021. Instead, the management focuses on optimizing the fashion area and tries to secure the remaining profits.

Although the circumstances are challenging, Gigasport's management is obviously not ready to talk the situation. The financial situation is honestly addressed in a current statement, with the declining figures in the sporting goods industry being particularly emphasized. The focus is now on making the company slimmer and securing a more profitable future.

For more information on this topic and on the background of the closure measures, See the report on newspaper thesis.at .