Eurocash, the owner of trade chains specified as Leviathan, ABC, Peaszek, Euro Shop, large Ben, Delicatesy Centrum, and news&gifts Inmedio stores, announced plans to reduce employment and close 165 stores and 5 wholesalers.
The intended simplification in employment in the group is intended to cover a full of more than 1 100 employees. According to Eurocash's President, Paweł Srawka, this is simply a essential measurement to preserve the company's competitiveness and profitability in the future.
– This was possible thanks to the integration of wholesale businessbut besides mentioned reduction of employment, which will amount to around 6-7% of all Eurocash companies.
Although the Eurocash Group ended the first 4th of 2024 with EBITDA of PLN 139 million and sales of PLN 7.6 billion, the net failure reached PLN 87 million, as stated in the press release. Despite this, the company is willing to increase marketplace shares and margins.3
– The first 4th of the year is usually the weakest for retail. The results were negatively affected by the increase in minimum wagewhich reflects not only on the Group, but besides on the condition of our customers. The results of this 4th are besides borne by the cost of implementing the savings programme, which is already delivering tangible results. Throughout the year planning further improvements in efficiency, which will be reflected in our marketplace shares – we read.
– Macroeconomic data propose that next quarters for retail will be improving. We have utilized the last quarters to improve the Group's activities, increase efficiency, usage synergies, and implement consistent implementation business strategy assumptions. The prospects are improving and we are well prepared to strengthen our marketplace position and improve the competitiveness of our customers," added the Group president.
Reducing employment will save money
According to Eurocash, the Group has implemented an efficiency improvement programme that has balance the effect of rising minimum wage.
– full savings resulting from the implementation of the cost-efficiency plan throughout the year should be PLN 211 million, which will full offset the increase in costs resulting from the increase in minimum wage. The restructuring of employment involves both reducing employment and expanding productivity. full employment restructuring programme will bring about this year savings of PLN 108 million. Another PLN 103 million is the assumed effect of the another initiatives – says Paweł Surówka.
Daniel Głogowski
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Eurocash owner, among others, marker Leviathan, Delicatesy Centrum plans to reduce 1 100 jobs
