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Gerry Weber to close 100 stores

By Don-Alvin Adegeest

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Retail

German fashion house Gerry Weber is to close an initial 103 underperforming stores in addition to cutting 200 HQ jobs following an "unsatisfactory" year. Another 5 percent of the store portfolio remains "on the watch list”, it noted.

Around 460 domestic and international store jobs are expected to be affected by the retail consolidation, the company added.

The group’s 'Fit4Growth' programme aims to improve revenues, efficiency and cut costs, seeking profit growth in 18-24 months. Four elements of the programme will centre on optimising retail operations, adjusting structures and processes, strengthen wholesale operations, and modernising its brands.

Store closures result of unsatisfactory year

The programme has been implemented against the background of what the company says is an "unsatisfactory business performance" over the past months, and the "persistently challenging" market environment for the fashion industry.

“We cannot be satisfied with the past financial year 2014/2015,” confirmed CEO Ralf Weber.

“Our results and the continued difficult situation of the German and international textile industry show very clearly that our company is still facing essential challenges. In view of the current and future challenges, the measures initiated since summer 2015 are not sufficient to optimally position our company for the future.

The move comes after Gerry Weber’s net income fell to 52.2 million euro from 71.4 million euro a year ago.

Image:Gerry Weber

Gerry Weber