Eurocash’s Group Delikatesy Centrum chain will axe 60 out of 414 stores currently operating.
These are the establishments that were loss-making, and the recovery program implemented in them at the beginning of the year did not bring about a sufficient improvement. The closing of unprofitable stores will mean the need to make a write-off estimated at approx. PLN 80 million, which will affect the financial results of the Eurocash Group for 2021. In the longer term, this decision will translate into improved profitability of the retail segment, which should be visible from next year, enabling further effective development of the Delikatesy Centrum chain.
“As announced, in recent months we have implemented a repair program in selected Delikatesy Centrum chain outlets, to which we selected a total of 180 own stores, which were the worst on the market and those that clearly outperformed Delikatesy Centrum operated by our franchisees. In the case of 59 of these stores, the measures taken did not bring sufficient improvement, so a decision was made to close them by the end of this year”, – explains Jacek Owczarek, member of the management board of Eurocash Group.