Few retail chains have expanded at such a pace as Pepco. Today, people in many European countries know this, and customers in the Czech Republic literally love this store. It’s always busy, especially when a new batch of goods arrives, which always promises a lot of new things.
They were celebrating success and now it’s over
This concept was actually destined for success in Eastern European countries. Unlike other stores and brands that usually don’t know how much to charge for their goods, Pepco has a clear strategy and offers relatively high quality products at very reasonable prices.
The chain believed that something like this had to work everywhere, including in Western Europe, especially after the stage of very high inflation. But as it turns out, the markets there are different, and instead of a spectacular expansion, Pepco now has to take a serious step back.
In Austria, for example, things did not go well at all. Pepco ends there suddenly after it simply did not charm the market there. Moreover, it does not end well there at all, but goes straight into insolvency. There is absolutely no question of an orderly exit and suppression of activities.
Foto: Shutterstock
Will he stay in the Czech Republic?
As reported by the diary The standard, Pepco immediately closes 73 stores in the neighborhood and sends all 680 employees straight to the pavement. The reason is primarily the fact that the company failed to reach the critical threshold of turnover on the local market, which is very important for this type of business. Otherwise, they are unprofitable.
The headquarters in Poland is trying to sell this as positive news to shareholders. After withdrawing from the unpromising market, the financial flows of the entire group will improve. In addition, it will be able to focus on countries where it is really doing well.
Read also: That’s how it went. The saleswoman revealed how retail chains are robbing the Czech Republic. She couldn’t take it anymore, it’s a force
The Czech Republic is also counted there, where Pepco keeps opening one store after another. But who knows, maybe even here it will soon hit the limits of its growth, especially when the competition in the form of other similar chains such as Action, Kik or Tedi is getting stronger.
Foto: Shutterstock
2024-03-02 17:00:00
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