Hellweg hardware stores are closing branches in North Rhine-Westphalia: Clearance sales are underway!

Hellweg hardware stores are closing branches in North Rhine-Westphalia: Clearance sales are underway!

A serious blow to the hardware store landscape: Hellweg, one of the best-known chains in Germany, has announced that it will close a total of ten branches. The closures affect locations in Hesse, North Rhine-Westphalia and Saxony-Anhalt. Seven markets in North Rhine-Westphalia are particularly affected, including Duisburg, Oberhausen and Bonn-Duisdorf. In addition, customers in Hanau and Berlin-Weißensee have to say goodbye to their Hellweg market. The branch in Halle/Saale will also be closed. What is the reason for this drastic step? [fr.de].

A clearance sale is already underway in the affected branches, which is intended to attract customers with discounts of between 10 and 50 percent in order to reduce inventory. Many customers report greatly increased crowds, while employees in Duisburg complain about the company's poor communication. The closure seems to be a big shock, especially in Werl, as people there have long relied on the local color of the hardware store.

Change of strategy and economic challenges

The decision to close is not an isolated event, but rather part of a broader strategy change that comes amid declining sales and a general economic crisis in the home improvement industry. Inflation and increased energy prices since the pandemic have put many companies under pressure. According to ruhr24.de there is even talk of a “liberation strike” internally, as Hellweg plans to concentrate on more profitable locations and thus create a profitable portfolio.

The closures do not go unnoticed by the employees. Although Hellweg has promised to continue to employ the majority of employees at surrounding locations and to fully take on trainees, it remains unclear how many employees are actually affected by the closures. The company currently employs around 4,000 people and operates 95 stores in Germany and Austria.

A look into the industry

The challenges are clearly noticeable throughout the hardware store industry. merkur.de reports that Hellweg is not the only chain that has been taking measures to improve the economic situation for about a year. Other companies are also struggling with declining sales and trying to stay afloat through discount campaigns and similar incentives.

Against this background, it remains to be seen how developments at Hellweg will develop. The coming months could be crucial for the company's future as the construction market landscape in Germany continues to change. Customers in Hesse and the affected cities now have to adapt to changes and perhaps explore new shopping options.