Eurocash Group has announced the planned closure of 59 out of the 414 own stores operated within the Delikatesy Centrum chain in Poland. “The stores in question generated losses, and the repair program implemented in them at the beginning of the year did not bring sufficient improvement”. the announcement reads.
Eurocash Group board member Jacek Owczarek noted that in recent months the repair program was implemented in selected outlets of Delikatesy Centrum chain. In total 180 own stores participated in the program, which - as he pointed out - “performed the worst on the market and clearly departed in terms of effectiveness from Delikatesy Centrum operated by our franchisees”.
“In the case of 59 of those stores the actions taken did not bring sufficient improvement, hence the decision to close them by the end of this year. It will mean a write-down of ca. 80 million PLN, which will burden our financial results this year” - said Owczarek.
“We decided together with the supervisory board that such a move is necessary to permanently increase the efficiency of the retail segment. We want to build the largest chain of small supermarkets in Poland based on profitable and thriving retail outlets,” explained the Eurocash Group board member.
Eurocash Group informed that the final amount of write-down related to closing part of own stores will be known after the review of half-year financial statements by the certified auditor. The write-down will be made in the report with results for the second quarter of this year.