German discounter Kodi's financial problems could mean profound changes for the company. Some branches are reportedly about to close and the offer is being reviewed. According to the newspaper Lebensmittel Zeitung, the company is currently undergoing an extensive transformation process.
Amid growing competitive pressure, including from up-and-coming competitor Action, Kodi is in trouble. Now it is intended to save the family business through a collaboration with restructuring consultant Christian Müller and the former director of Tedi, Cathleen Clasen, who takes on a newly created position as sales director.
A key part of this change process is the review of the product range. Kodi apparently plans to reduce its previously set range of around 3,500 items and import more products.
Financial pressure on Kodi causes some branches to close
However, this process also has dark sides. Some branches, especially in the Frankfurt region, are facing closure. These branches, which opened during the coronavirus pandemic, are not profitable due to high rents. However, according to insiders, Kodi does not want to completely withdraw from the Rhine-Main area.
While the company is reportedly in talks with the northern German specialty goods distributor Jawoll, according to insiders, there will probably be no cooperation with the Austrian group MTH and its German holding companies MäcGeiz and Pfennigpfeiffer. There are still no official statements about the new plans.
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