Yves Rocher becomes online only in DACH region
French cosmetics company Yves Rocher is closing all of its branches in Germany, Austria and Switzerland. With the company’s current business model, it is no longer possible to operate sustainably and successfully. It will continue operating in those markets, but online only.
Yves Rocher is French cosmetics company with brick-and-mortar stores in Europe, as well as localized online stores. In 2021, the company closed its seven stores in the Netherlands. In the coming months, all stores in the DACH region will also close.
350 jobs affected
At least 140 branches and 350 jobs will be affected by the decision. Employees were already informed about the closures in March this year. Since the corona pandemic, Yves Rocher has dealt with economic problems.
‘Our customers can still find our products in our online shop.’
“The past two years have presented us with enormous economic challenges”, said a spokeswoman. Though the stores are closing, the company is not ending its activities in these markets. “Our customers can still find our products and order them directly in our online shop.”
Chains closing stores in Germany
Yves Rocher is not the first well-known chain to withdraw from German shopping streets. Galeria-Karstadt-Kaufhof department stores closed, as well as shoe retailers Görtz and Reno. Fashion manufacturer Gerry Weber is also closing a large part of its branches in Germany. These companies were also declared insolvent, which is not the case with Yves Rocher.
‘Yves Rocher is not the first well-known chain to withdraw from German shopping streets.’
The German Retail Association (HDE) suspects that the high level of inflation is a cause for this development. “Many retail companies are experiencing difficult times. First the pandemic with its lockdowns, store closures and measures that limited the number of customers, and now the consequences of the Russian war in Ukraine with high inflation and poor consumer sentiment”, said HDE CEO Stefan Genth.
9,000 shops expected to close
According to the association, it is expected that around 9,000 shops in Germany will close this year. Before the pandemic, around 5,000 shops closed each year. If the forecast is correct, that will leave 311,000 stores nationwide. In 2015, there were still almost 373,000 stores.