Hellweg hardware store in the terminal: renovation decides on the future!
Hellweg hardware store in the terminal: renovation decides on the future!
The Hellweg hardware store, which was founded in Dortmund in 1971 and is now active throughout Germany, faces a critical phase. The retailer is currently in a deep financial valley and is fighting for his existence. As Derwesten.de , the renovation certificate of the company will be evaluated by the banks in mid-February 2025, and this decision is likely to be the future orientation of the company determine.
in April 2024 Hellweg had to accept a decline in sales and losses. This led to the initiation of a comprehensive restructuring process that is carried out in cooperation with the consulting firm Roland Berger. The measures to stabilize the economic situation are complex and include discount campaigns to reduce the stocks, as well as the deletion of over ten percent of the positions in the Hellweg branches.
branch closures and job cuts
In addition, the renovation plan provides that at least three of the 148 Hellweg and BayWa markets are closed. These drastic measures are part of the company's efforts to improve its economic situation. Despite these challenges, the company has optimistic discussions with its suppliers to receive support in the renovation process.
Hellweg demands price cuts and advertising grants from its suppliers. This is intended to help reduce the stress of restructuring and to regain any lost market shares. Ultimately, the company even tried to be taken over by toom before the start of the renovation process, but the talks failed due to different prices. The end of the joint shopping cooperation with Toom has further increased the pressure on Hellweg.
future collaborations
In view of the current situation, those responsible from Hellweg consider to join the Hagebau hardware store cooperation. Possible cooperation could help the company achieve a larger purchasing volume, which could result in cost advantages. However, Hagebau has not yet confirmed any discussions on request, which further increases the uncertainty for Hellweg.The coming weeks are of crucial importance for the company. The positive development of negotiations with suppliers could be decisive in order not to lose the market share and to regain trust among customers. At a time when the industry is challenged, it remains to be seen whether Hellweg can effectively implement the necessary measures.
In a broader context, a recent study by the Bonn market research institute shows that the overall renovation market is gaining in dynamics. Older homeowners who are increasingly investing in renovation measures could possibly be a target group for Hellweg. Especially in the current time, we are experiencing a trend in which more renovation measures are carried out independently by domestic users, which for hardware stores both opportunities and challenges. Baumarktmanager.de
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