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Tchibo to try bigger stores

German coffee maker and retailer, Tchibo, is testing a new format involving larger stores with a wider selection of retail goods that are stocked for longer periods.

Tchibo to try bigger stores
Photo: DPA

The new markets, called “Tchibo World,” will be up to five times larger than the typical Tchibo shop, marketing executive Stefan Pfander told business weekly WirtschaftsWoche.

The first test market has been opened next to big box supermarkets and home improvement stores in the town of Henstedt-Ulzburg in the northern German state of Schleswig-Holstein. If it’s successful, Tchibo plans to take the concept nationwide.

Tchibo is currently undergoing a restructuring which saw profit and turnover fall in the past year. The retailer was under pressure after more and more competitors copied its strategy of stocking low-priced products on a weekly-rotating basis.

As part of the restructuring, Tchibo plans to close around 100 shops and 1,000 of its small store-in-store outlets.

BUSINESS

Swedish retailer H&M sees profits slump after Russia exit

Swedish fashion retailer H&M reported a sizeable drop in third-quarter profit on Thursday following its decision to leave the Russian market.

Swedish retailer H&M sees profits slump after Russia exit

The world’s number two clothing group is among a slew of Western companies that have exited Russia following Moscow’s invasion of Ukraine.

H&M paused all sales in the country in March and announced in July that it would wind down operations, although it would reopen stores for “a limited period of time” to offload its remaining inventory.

The company said Thursday its net profit fell to 531 million kronor ($47 million) in the third quarter, down 89 percent from the same period last year. “The third quarter has largely been impacted by our decision to pause sales and then wind down the business in Russia,” chief executive Helena Helmersson said in a statement.

The group said in its earnings statement that it would launch cost-cutting measures that would result in savings totalling two billion kronor.

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