Wittchen renegotiating rents, withdrawing from unprofitable locations
18:39
Wittchen is renegotiating rents in shopping centers and restructuring its retail network, aiming to exit only the most unprofitable locations. According to CFO Marcin Szyguła, early negotiations look promising, with one mall offering a 40 percent rent reduction to keep the brand. Some talks remain difficult, but closures will be limited to single stores where leases are expiring, rents cannot be renegotiated, or profitability cannot improve. Overall retail space is expected to change only 3–5 percent, with slightly fewer but larger and more efficient boutiques.
The company plans relocations and operational improvements to boost conversion and basket value. Stationary retail still accounts for 35.6 percent of revenue, remaining stable year over year.
