GINA TRICOT ADAPTS ITS ORGANIZATION
The fashion company Gina Tricot adapts the organization to new market conditions that are changing at an ever-faster pace. The company continues to drive its European digital business and will withdraw from the German local retail market in order to strengthen the Groups future competitiveness.
The strategy is to maintain Gina Tricot's position as a leading fashion company with stores in the company's core markets Sweden, Norway, Finland and Denmark and, at the same time, increase the pace of the digital e-commerce business.
Gina Tricot has supported the distribution via the group’s German store network for an extensive period and helped the German subsidiary to take a number of different measures, such as savings programs, negotiations with landlords, and locally adapted assortment and marketing. However, the negative effects of the Covid-19 pandemic further affected the German business substantially. Against this background, the board of Gina Tricot decided to stop distributing products via the German stores. Gina Tricot took this step also in order to protect the operations in Gina Tricot's largest markets.
Instead of distribution via German retail stores, the fashion chain's long term goal is to reach German consumers via e-commerce platforms and retailers in Germany - a strategy that has proved successful in other markets in recent years. In the past year, the company has increased digital commerce, both through its own channels and through partners. Customers' changing purchasing behaviour indicates continued digital growth. Gina Tricot will invest in meeting that demand.
"For a long period, Germany has shown a downward trend. On top of this, the rapid spread of the corona virus has had consequences for the retail world, and unfortunately, this has made the situation in the German company unsustainable. Despite a large number of measures, the trend has not reversed. Now, in light of the further negative impact of the Covid19 pandemic, the Board of Gina Tricot decided to stop the distribution of products via our own German network of stores. The management of the German subsidiary has been informed accordingly and we expect that they will now take the necessary steps for an insolvent liquidation. Simultaneously, we are also taking steps to adapt the rest of the organization to the current situation. These actions will help safeguarding a continued position as a leading fashion company with stores in the core markets and, at the same time, increasing the pace of digital commerce in Europe" says Ted Boman, CEO at Gina Tricot.
The decision to withdraw from the German market and the consequential liquidation means that 9 stores will be closed, and 35 permanent employees will be laid off in Germany. Gina Tricot has filed a notice and union negotiations are now underway. No personnel in other markets will be affected . With these measures, Gina Tricot aims to maintain its position as a leading fashion company while increasing the growth of digital e-commerce.
For more information contact:
Sanna Franklin, Head of PR & Communication,
Gina Tricot is a Swedish fashion chain offering exciting, feminine fashion to women in over 30 countries. The company has 162 retail stores and 1680 employees, We don’t complicate things. Our strength has always been keeping things simple, which applies to our designs and working methods alike. We have a passion for fashion, with the goal of offering customers a new and exciting shopping experience.