Decorative chain Depot: Branch closures also announced in Saarland

Decorative chain Depot: Branch closures also announced in Saarland

The decorative and furnishing branch Depot faces far-reaching changes. In the midst of financial difficulties and a desired protective shield procedure that was requested this summer, the company announced that it would close at least 27 branches in Germany by the end of the year. Christian Gries, Managing Director of Depot, confirmed this to the German Press Agency (dpa). This decision was necessary because 17 locations have already been closed, which reduces the branch network to 285 shops.

The closures also affect the location in Saarland, where Neunkirchen and Wadgassen are particularly closed. It originally seemed as if the branches in Saarland were not affected by the bankruptcy, but the circumstances have changed and now the closure of the two stores in the region has been decided.

background of the closures

depot is part of the Gries Deco Company (GDC) and looks back on a number of problems that were created in the course of the Corona pandemic. According to Gries, the difficulties are primarily due to the fact that the camps were full, while the sales outlets remained closed. This led to significant sales declines. In addition, he cited as a further reason that many customers changed their buying behavior due to the high inflation. "We noticed too late that many customers show a changed buying behavior under the high inflation," said Gries.

The planned closures mean that around 50 of the 3,350 employees: Losing their workplace inside, while most of them are to be transferred to other branches. In addition, the workforce in the company headquarters is reduced from around 650 to 500 employees. This decision is also related to the impending insolvency of the company, which is why the bankruptcy application was made.

Future view

The managing director has set itself the goal of returning to regular business by the middle of next year at the latest. To achieve this, the company has already taken measures to "get better". "We have to stand out with a surprising product and price mix and offer more experience shopping again," said Gries. In addition, the "Rooms" concepts that integrate smaller depot shops into larger areas of other retailers are to be continued. Of around 150 existing "Rooms" concepts in large supermarket chains, some will remain open, even if some cooperations, such as those with Kaufland, have already ended.

Overall, the situation remains tense, but Depot plans to reposition himself and to counteract the challenges of the market. Further developments are eagerly awaited. More information about the closures and the current situation at Depot are in Article by www.sol.de to be found.