Mercator to Close All Physical Stores by End of Year
Mercator, owned by Croatian company Fortenova, has announced the closure of all remaining physical stores of Mercator Tehnika by the end of this year. This decision aligns with the strategic focus of Mercator to concentrate on its core activities in the future, according to the company’s statement. They assure that none of the 439 employees will be left without work.
Reasons Behind the Decision
The decision was based on market trends, with an increasing number of purchases being made through online platforms, even from abroad. The existing formats no longer cater to the needs of different customer segments, requiring investments in business premises and considering market conditions. These trends have previously impacted the business results of Mercator Tehnika.
Impact on Employees
Currently, there are 439 employees in Mercator Tehnika stores, with 412 in retail and 27 in operations. Mercator assures that all employees will be offered new positions within the company to prevent job losses. The company is coordinating all activities with social partners as well.
Future of Business Premises
Going forward, the business premises will be available for purchase or lease to interested buyers or tenants.
Expert Insights
Industry experts believe that the shift towards online shopping and changing consumer behavior have influenced Mercator’s decision to close its physical stores. This move reflects a broader trend in the retail sector where companies are reevaluating their brick-and-mortar presence in response to evolving market dynamics.
FAQs
Will Mercator Tehnika’s closure affect the availability of key programs?
No, despite the closure of physical stores, key programs that have been the majority of Mercator Tehnika’s business will still be available in larger Mercator stores.
What will happen to the employees of Mercator Tehnika?
All employees will be offered new positions within Mercator to ensure that no one loses their job as a result of the store closures.
Conclusion
Mercator’s decision to close all physical stores of Mercator Tehnika by the end of the year is a strategic move to realign the company’s focus on core activities in response to market trends. The assurance that all employees will be retained through new job placements demonstrates Mercator’s commitment to its workforce amidst these changes.