Withdrawal from Austria

Discount giant Pepco closes in Austria

Polish discount retailer Pepco sends its Austrian subsidiary into insolvency.

(Bild: Ioan Panaite - stock.adobe.com)

The Polish discount giant Pepco will soon be closing its doors in Austria. The company is discontinuing its entire business operations in Austria and will file for insolvency next week.

This will affect 680 employees in 73 branches. According to the "Standard", the company justifies the move by stating that "the expected level of returns" is not being achieved in Austria.

Pepco

(Bild: Ioan Panaite - stock.adobe.com)

Pepco only entered Austria two and a half years ago, when it took over most of the stores of the shoe retail chain CCC. Among other things, the company offers clothing, toys, household goods and furniture at low prices.

Pepco's existence in Austria did not last long.

(Bild: Tupungato - stock.adobe.com)

Despite efforts, success failed to materialize
Despite "various initiatives and structural changes" to "address inadequate operating performance", Pepco continued to generate losses, the company wrote. For this reason, the company will withdraw from Austria and focus on markets where there are better opportunities for returns.

Insolvency will be filed "in the next few days", the company added. However, the stores will remain open for the time being. According to the "Standard", staff in Austria have already been informed of the planned insolvency.

Pepco set international sales records
The company, headquartered in the city of Poznan, currently employs over 31,000 people in 19 European countries and has a network of more than 3,600 stores. Internationally, the Pepco Group set sales records in the 2022/2023 financial year. Sales increased by more than 17 percent to 5.65 billion euros as a result of numerous new openings. Net profit, on the other hand, fell by 41 percent to 102 million euros.