Hellweg tree markets close branches in NRW: clearance sale is running!

Hellweg tree markets close branches in NRW: clearance sale is running!

A heavy blow to the hardware store landscape: Hellweg, one of the most famous chains in Germany, has announced that it would close a total of ten branches. The closures concern locations in Hesse, North Rhine-Westphalia and Saxony-Anhalt. Seven markets in North Rhine-Westphalia, including Duisburg, Oberhausen and Bonn-Duisdorf, are particularly affected. In addition, customers in Hanau and Berlin-Weißensee have to say goodbye to their Hellweg market. The branch is also closed in Halle/Saale. What is the reason for this drastic step? [freiten] (https://www.fr.de/wirtschaft/baumarkt-riese-schliesst-reiheenheit- Filials-Raeirungs-kreis-seuf-93775106.html) explains that the closures are primarily due to the necessary adaptation of the location portfolio to the changed market conditions.

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

strategy change and economic challenges

The decision to close is not an isolated event, but part of a comprehensive change of strategy that is carried out in the course of falling sales and a general economic crisis in the hardware store industry. Inflation and the increased energy prices since pandemic have put many companies under pressure. According to ruHR24.de, it is even planned internally, since Hellweg is planning to concentrate on more profitable locations and thus focus on profitable locations To create portfolio.

The closings do not go past the employees without a trace. Hellweg has promised to continue to employ the majority of employees at surrounding locations and to take over the trainees completely, but it remains unclear how many employees are actually affected by the closings. The company currently employs around 4,000 employees and operates 95 markets in Germany and Austria.

A look at the industry

The challenges are clearly noticeable in the entire hardware store industry. [merkur.de] (https://www.merkur.de/wirtschaft/baumarkt-kette-schlieschschliesstschliesstschliesstweiter- and-speech-von-exemption-93732817.html) reports that Hellweg is not the only chain that has taken measures to improve the economic situation for about a year. Other companies are also fighting with declining sales and trying to keep afloat through discount campaigns and similar incentives.