Clear-cutting at KiK: Discounter closes around 300 branches

In February it was said that 50 locations would be closed, 25 of which were in Germany. At that time there was talk of nine closures and one new opening in Austria. It is unclear whether more shops will now be closed in this country. According to the company, KiK has more than 1,000 in Austria 220 branches and around 1,500 employees.

“Expanded too closely”

“We are trimming our portfolio for profitability,” said managing director and chief financial officer Christian Kümmel. “The formula of ‘We’ll open five new branches and have five times as many customers’ didn’t work 100 percent.” In some cases, branches are less than a kilometer apart. “We have expanded too closely. We are reducing that.” All remaining locations are profitable.

KiK did not provide a list of the stores that were to close. It was said that numerous employees had not yet been informed. “We will continue to employ the employees of the affected branches in other branches or find another solution,” said Kümmel. There are no plans for layoffs. KiK employs a total of around 32,000 people, 19,000 of them in Germany. Kümmel can imagine that the branch network will be further streamlined in the coming years.

KiK boss: “Our loyal customers are growing”

The company announced in September 2025 that it would close unprofitable branches in order to increase its competitiveness. Some businesses had already closed at the end of the year. According to Kümmel, around 100 branches closed per yearbut the number of new openings has always been higher.

According to Kümmel, KiK’s business model continues to work well. “Our loyal customer base is growing.” Nevertheless, the company feels it Purchase reluctance of consumers. “Although the discount is gaining popularity overall, we see that one or two purchases are being left out.” According to Kümmel, consumer behavior has changed. “There is a high willingness to change and price sensitivity among customers.”

The manager sees you increasing competitive pressure – through stationary retailers such as Woolworth, NKD and Action as well as Asian online portals such as Shein and Temu. However, KiK basically wants to stick to its concept and be primarily a textile discounter. The core target group should continue to be women between the ages of 30 and 60 with their families. Around 60 percent of the range consists of textiles, the rest of non-food products such as household goods and decoration.

Stationary retail is thinning out

KiK is the abbreviation for “Customer is King” and was founded in 1994. The chain is now in 14 European countries represent. In 2024, the company recorded sales of 2.4 billion euros. In Germany, KiK is one of the retailers with the most sales outlets.

Stationary retail is under great pressure due to growing competition from online retail and poor consumer sentiment. According to a forecast by the trade association, the number of shops in Germany is likely to fall to under 300,000 this year. At the end of 2015 there were still around 372,000.